OTC: ADMT

79,449

Operating lease liability less current portion

129,779

227,928

Total long-term liabilities

209,228

307,377

Total liabilities

1,255,540

1,456,525

Stockholders' equity:

Preferred stock, $.01 par value; 5,000,000 shares authorized, no shares issued and outstanding

-

-

Common stock, $0.0005 par value; 150,000,000 shares authorized, 67,588,492 shares issued and outstanding

33,794

33,794

Additional paid-in capital

33,607,772

33,607,772

Accumulated deficit

(33,070,594
)

(32,970,220
)

Total stockholders' equity

570,972

671,346

Total liabilities and stockholders' equity

$
1,826,512

$
2,127,871

The accompanying notes are an integral part of these

financial statements.

F-3

ADM TRONICS UNLIMITED, INC.

STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED MARCH 31, 2026 AND 2025

2026

2025

Net revenues

$
3,347,082

$
3,197,110

Cost of sales

1,991,658

1,801,450

Gross Profit

1,355,424

1,395,660

Operating expenses:

Research and development

544,971

517,275

Selling, general and administrative

969,550

972,409

Total operating expenses

1,514,521

1,489,684

Loss from operations

(159,097
)

(94,024
)

Other income (expense):

Interest income

7,761

12,928

Interest and finance expenses

(36,788
)

(40,210
)

Unrealized gain (loss) from investment

89,250

(250
)

Total other income (expense)

60,223

(27,532
)

Loss before provision for taxes

(98,874
)

(121,556
)

Provision (benefit) for income taxes:

Current

1,500

1,500

Deferred

-

-

Total benefit (provision) for income taxes

1,500

1,500

Net loss

$
(100,374
)

$
(123,056
)

Basic and diluted loss per common share:

$
(0.00
)

$
(0.00
)

Weighted average shares of common stock outstanding - basic and diluted

67,588,492

67,588,492

The accompanying notes are an integral part of these

financial statements.

F-4

ADM TRONICS UNLIMITED, INC.

STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

FOR THE YEARS ENDED MARCH 31, 2026 AND 2025

Common Stock

Common Stock

Additional Paid-in

Accumulated

Shares

Amount

Capital

Deficit

Total

Balance at March 31, 2024

67,588,492

$
33,794

$
33,603,644

$
(32,945,047
)

$
692,391

Stock based compensation

4,128

4,128

Prior period adjustment

97,883

97,883

Net income (loss)

(123,056
)

(123,056
)

Balance at March 31, 2025

67,588,492

$
33,794

$
33,607,772

$
(32,970,220
)

$
671,346

Net income (loss)

(100,374
)

(100,374
)

Balance at March 31, 2026

67,588,492

$
33,794

$
33,607,772

$
(33,070,594
)

$
570,972

The accompanying notes are an integral part of these

financial statements.

F-5

ADM TRONICS UNLIMITED, INC.

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED MARCH 31, 2026 AND 2025

March 31, 2026

March 31, 2025

Cash flows from operating activities:

Net income

$
(100,374
)

$
(123,056
)

Adjustments to reconcile net loss to net cash used in operating activities:

Amortization

6,817

7,306

Write-off of inventories

17,012

108,744

Bad debt

14,917

-

Unrealized (gain) / loss in investment

(89,250
)

74,750

Non-cash interest expense

-

18,044

Amortization of right-to-use asset

91,932

86,332

Stock based compensation

-

4,128

Changes in operating assets and liabilities balances:

Accounts receivable

12,723

(183,857
)

Inventories

136,237

(125,284
)

Prepaid expenses and other current assets

1,800

17,423

Other assets

-

171,871

Accounts payable

(47,918
)

32,925

Bank overdraft

(13,618
)

35,112

Customer deposits

(71,946
)

1,307

Accrued expenses and other current liabilities

24,481

(8,895
)

Payments of operating lease liability

(106,872
)

(106,872
)

Net cash provided by (used in) operating activities

(124,059
)

9,978

Cash flows from investing activities:

Investments

-

(225,750
)

Net cash provided by (used in) investing activities

-

(225,750
)

Cash flows provided (used) in financing activities:

Proceeds from line of credit

27,420

62,183

Repayments of line of credit

(29,704
)

(74,552
)

Due to employee

-

79,449

Proceeds (payments) from/to PPP loan

(896
)

(5,380
)

Net cash provided by (used in) financing activities

(3,180
)

61,700

Net increase (decrease) in cash and cash equivalents

(127,239
)

(154,072
)

Cash and cash equivalents - beginning of year

382,969

537,041

Cash and cash equivalents - end of year

$
255,730

$
382,969

Cash paid for:

Interest

$
36,788

$
40,210

Taxes

$
1,500

$
1,500

The accompanying notes are an integral part of these

financial statements.

F-6

ADM TRONICS UNLIMITED, INC.

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2026 AND 2025

NOTE 1 – NATURE OF BUSINESS

ADM Tronics Unlimited, Inc. ("we", "us", "the Company" or "ADM"), was incorporated under the laws of the state of Delaware on November 24, 1969. We are a manufacturing and engineering concern whose principal lines of business are the design, manufacture and sale of electronics of our own products or on a contract manufacturing basis; the production and sale of chemical and antistatic products; and, research, development and engineering services.

Electronic equipment is manufactured in accordance with customer specifications on a contract basis. Our electronic device product line consists principally of proprietary devices used in diagnostics and therapeutics of humans and animals and electronic controllers for spas and hot tubs. These products are sold to customers located principally in the United States. We are registered with the FDA as a contract manufacturing facility and we manufacture medical devices for customers in accordance with their designs and specifications. Our chemical product line is principally comprised of water-based chemical products used in the food packaging and converting industries, and anti-static conductive paints, coatings and other products. These products are sold to customers located in the United States, Australia, Asia and Europe. We also provide research, development, regulatory and engineering services to customers.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

PRINCIPLES OF CONSOLIDATION

The financial statements include the accounts of ADM Tronics Unlimited, Inc. (the “Company”). Sonotron Medical Systems, Inc. (“SMI”), a formerly wholly owned subsidiary of ADM, was dissolved during the fiscal year ended March 31, 2026. The balances of SMI were merged into ADM prior to dissolution. As a wholly owned subsidiary, no adjustment to prior period comparative amounts was required.

USE OF ESTIMATES

These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and, accordingly, require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and contingent liabilities. Significant estimates made by management include expected economic life and value of our deferred tax assets and related valuation allowance, write down of inventory, impairment of long-lived assets, allowance for doubtful accounts, and warranty reserves. Actual amounts could differ from those estimates.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The authoritative guidance for fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or the most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact. The guidance describes a fair value hierarchy based on the levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following:

Level 1:

Quoted prices in active markets for identical assets or liabilities.

Level 2:

Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3:

Unobservable inputs that are supported by little or no market activity and that are significant to the value of the assets or liabilities.

F-7

Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable and accrued expenses. All these items were determined to be Level 1 fair value measurements.

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximated fair value because of the short maturity of these instruments.

CASH AND CASH EQUIVALENTS

Cash equivalents are comprised of certain highly liquid investments with original maturities of three months or less when purchased. We maintain our cash in bank deposit accounts, which at times, may exceed federally insured limits. We have not experienced any losses to date as a result of this policy. Cash and cash equivalents held in these accounts are currently insured by the Federal Deposit Insurance Corporation (“FDIC”) up to a maximum of $250,000 per institution. At March 31, 2026, the Company’s cash and cash equivalents of $255,730 did not materially exceed the FDIC limit.

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

Accounts receivable are stated at the amount management expects to collect from outstanding balances. The carrying amounts of accounts receivable is reduced by a valuation allowance that reflects management's best estimate of the amounts that will not be collected. Management individually reviews all accounts receivable balances that exceed the due date and estimates the portion, if any, of the balance that will not be collected. Management provides for probable uncollectible amounts through a charge to expenses and a credit to a valuation allowance, based on its assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. Allowance for credit loss, including allowance of Loan Receivable balances, as of March 31, 2026 and March 31, 2025 was $1,216,562 and $1,216,562, respectively.

REVENUE RECOGNITION

ELECTRONICS:

We recognize revenue from the sale of our electronic products when they are shipped to the purchaser. We offer a limited 90-day warranty on our electronics products and contract manufacturing and a limited 5-year warranty on our electronic controllers for spas and hot tubs. Historically, the amount of warranty included in sales of our electronic products have been de minimis. We have no other post shipment obligations. Based on prior experience, no amounts have been accrued for potential warranty costs and actual costs were less than $2,000, for each of the fiscal years ended March 31, 2026 and 2025. For contract manufacturing, revenues are recognized after shipment of the completed products.

Amounts received from customers in advance of our satisfaction of applicable performance obligations are recorded as customer deposits. Such amounts are recognized as revenues when the related performance obligations are satisfied. Customer deposits of approximately $137,000 as of March 31, 2024 were recognized as revenues during the year ended March 31, 2025. Customer deposits of approximately $159,000 as of March 31, 2025 were recognized as revenues during the year ended March 31, 2026.

CHEMICAL PRODUCTS:

Revenues are recognized when products are shipped to end users. Shipments to distributors are recognized as revenue when no right of return exists.

ENGINEERING SERVICES

We provide certain engineering services, including research, development, quality control and quality assurance services along with regulatory compliance services. We recognize revenue from engineering services on a monthly basis over time as the applicable performance obligations are satisfied.

F-8

All revenue is recognized net of discounts.

Twelve Months Ended March 31,

2026

2025

Net Revenue in the US

Chemical

$
622,378

$
745,730

Electronics

1,838,152

1,526,236

Engineering

349,347

584,167

2,809,877

2,856,133

Net Revenue outside the US

Chemical

537,205

340,977

Electronics

-

-

Engineering

-

-

537,205

340,977

Total Revenues

$
3,347,082

$
3,197,110

WARRANTY LIABILITIES

The Company’s provision for estimated future warranty costs is based upon historical relationship of warranty claims to sales. Based upon historical experience, the Company has concluded that no warranty liability is required as of the balance sheet dates. However, the Company periodically reviews the adequacy of its product warranties and will record an accrued warranty reserve if necessary.

INVENTORIES

Inventories are stated at the lower of cost (first-in, first-out method) and net realizable value. Inventories that are expected to be sold within one operating cycle (1 year) are classified as a current asset. Inventories that are not expected to be sold within 1 year, based on historical trends, are classified as Inventories - long term portion. Obsolete inventory is written off annually based on prior and expected future usage.

PROPERTY AND EQUIPMENT

We record our property and equipment at historical cost. We expense maintenance and repairs as incurred. Depreciation is provided for by the straight-line method over five to seven years, the estimated useful lives of the property and equipment.

INTANGIBLE ASSETS

Intangible assets are reviewed for impairment annually whenever changes in circumstances indicate that the carrying amount may not be recoverable. In reviewing for impairment, the Company compares the carrying value of the relevant asset to the estimated undiscounted future cash flows expected from the use of the assets and their eventual disposition. When the estimated undiscounted future cash flows are less than their carrying amount, an impairment loss is recognized equal to the difference between the assets’ fair value and its carrying value. During the fiscal years ended March 31, 2026 and 2025, there were no impairments.

ADVERTISING COSTS

Advertising costs are expensed as incurred and amounted to $11,949 and $10,609 for the fiscal years ended March 31, 2026 and 2025, respectively.

SHIPPING AND HANDLING COSTS

Shipping and handling costs incurred for the years ended March 31, 2026 and 2025 were $10,013 and $9,400, respectively. Such costs are included in selling, general, and administrative expenses in the accompanying statements of operations.

INCOME TAXES

We report the results of our operations as part of a Federal tax return. Deferred income taxes result primarily from temporary differences between financial and tax reporting. Deferred tax assets and liabilities are determined based on the difference between the financial statement basis and tax basis of assets and liabilities using enacted tax rates. A valuation allowance is recorded to reduce a deferred tax asset to that portion that is expected to more likely than not be realized.

The Company has adopted the authoritative accounting guidance with respect to accounting for uncertainty in income taxes, which clarified the accounting and disclosures for uncertain tax positions related to income taxes recognized in the financial statements and addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority.

F-9

The Company files income tax returns in several jurisdictions. The Company’s tax returns remain subject to examination, by major jurisdiction, for the years ended March 31, as follows:

Jurisdiction

Fiscal Year

Federal

2023 and beyond

New Jersey

2022 and beyond

There are currently no tax years under examination by any major tax jurisdictions.

The Company will recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of March 31, 2026, and 2025, the Company has no accrued interest or penalties related to uncertain tax positions.

NET EARNINGS (LOSS) PER SHARE

We compute basic earnings per share by dividing net income/loss by the weighted average number of common shares outstanding. Diluted earnings per share is computed similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential shares had been issued and if the additional shares were dilutive. Common equivalent shares are excluded from the computation of net earnings per share if their effect is anti-dilutive.

Per share basic and diluted earnings (loss) amounted to ($0.00) and ($0.00) for the fiscal years ended March 31, 2026 and 2025, respectively.

LEASE ACCOUNTING

In February 2016, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which changes financial reporting as it relates to leasing transactions. Under the new guidance, lessees are required to recognize a lease liability, measured on a discounted basis; and a right-of-use asset, for the lease term. The Company adopted this guidance as of April 1, 2019, using the modified retrospective approach which allowed it to initially apply the guidance as of the adoption date. The Company elected the package of practical expedients available under the new standard, which allowed the Company to forgo a reassessment of (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) the initial direct costs for any existing leases.

The Company made a policy election to recognize short-term lease payments as an expense on a straight-line basis over the lease term. The Company defines a short-term lease as a lease that, at the commencement date, has a lease term of twelve months or less and does not contain an option to purchase the underlying asset that the lease is reasonably certain to exercise. Related variable lease payments are recognized in the period in which the obligation is incurred.

The Company's lease agreement contains related non-lease components (e.g. taxes, etc.). The Company separates lease components and non-lease components for all underlying asset classes.

PAYCHECK PROTECTION PROGRAM LOAN

As disclosed in Note 6, the Company has chosen to account for the loans under FASB ASC 470, Debt. Repayment amounts due within one year are recorded as current liabilities, and the remaining amounts due in more than one year, if any, as long-term liabilities. In accordance with ASC 835, Interest, no imputed interest is recorded as the below market interest rate applied to this loan is governmentally prescribed. As the Company was successful in receiving forgiveness for those portions of the loan used for qualifying expenses, those amounts were recorded as a gain upon extinguishment as noted in ASC 405, Liabilities.

During the fiscal year ended March 31, 2022, the Company reported $693,817 of Forgiveness of Paycheck Protection Program under Other Income on the statement of operations.

As of March 31, 2026 and March 31, 2025, the balance due was $-0- and $896, respectively.

F-10

NEW ACCOUNTING STANDARDS

In June 2016, the FASB issued ASU 2016‑13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This guidance affects entities holding financial assets and net investments in leases that are not measured at fair value through net income. The standard replaces the incurred loss model with the current expected credit loss (“CECL”) model, which requires organizations to measure all expected credit losses for financial instruments over their contractual life at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The Company adopted this standard effective April 1, 2024. The adoption of this standard did not have a material impact on the Company’s financial statements.

In December 2023, the FASB issued ASU 2023‑09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This guidance enhances the transparency of income tax disclosures by requiring disaggregated information about a reporting entity’s effective tax rate reconciliation and the jurisdictions in which income taxes are paid. The Company adopted this guidance effective April 1, 2024. The Company has applied the provisions of this ASU prospectively, and the adoption has resulted in expanded disclosures in Note 11 to the financial statements.

In March 2024, the FASB issued ASU 2024‑01, “Compensation—Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards.” This standard clarifies how an entity determines whether a profits interest or similar award is subject to the guidance in Topic 718. The Company adopted this guidance effective April 1, 2024. The adoption did not have a material impact on the Company’s financial statements.

The Company is currently evaluating the impact of other recently issued accounting pronouncements that are not yet effective but does not expect them to have a material impact on its financial statements upon adoption.

GOING CONCERN

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has experienced losses from operations and negative cash flows from operating activities, management has initiated several strategic plans to improve the Company's financial position. As of March 31, 2026, the Company had an accumulated deficit of $33,070,594 and cash used in operating activities of $124,059. Management's plans to address these conditions include leveraging existing resources and focusing on revenue growth and orders in the pipeline, which are expected to push the Company to profitability within the next fiscal year.

There is substantial doubt that the funding plans will be successful and therefore the conditions discussed above have not been alleviated. As a result, there is substantial doubt about the Company’s ability to continue as a going concern for one year from the date the Financial Statements were available to be issued.

Our future capital requirements will depend upon many factors, including progress with developing, manufacturing and marketing our technologies, the time and costs involved in preparing, filing, prosecuting, maintaining and enforcing patent claims and other proprietary rights, our ability to establish collaborative arrangements, marketing activities and competing technological and market developments, including regulatory changes and overall economic conditions in our target markets. Our ability to generate revenue and achieve profitability requires us to successfully market and secure purchase orders for our products from customers currently identified in our sales pipeline as well as new customers. We also will be required to efficiently manufacture and deliver equipment on those purchase orders. These activities, including our planned research and development efforts, will require significant uses of working capital. There can be no assurances that we will generate revenue and cash flow as expected in our current business plan.

NOTE 3 – INVENTORIES

Inventories at March 31, 2026 consisted of the following:

Current

Long Term

Total

Raw materials

$
205,379

$
158,240

$
363,619

Finished goods

45,245

11,570

56,815

Totals

$
250,624

$
169,810

$
420,434

Inventories at March 31, 2025 consisted of the following:

Current

Long Term

Total

Raw materials

$
279,223

$
209,045

$
488,268

Finished goods

57,047

11,356

68,403

Totals

$
336,270

$
220,401

$
556,671

F-11

NOTE 4 - INTANGIBLE ASSETS

Intangible assets are being amortized using the straight-line method over periods ranging from 3-15 years with a weighted average remaining life of approximately 6 years.

March 31, 2026

March 31, 2025

Cost

Weighted Average Amortization Period (Years)

Accumulated Amortization

Net Carrying Amount

Cost

Weighted Average Amortization Period (Years)

Accumulated Amortization

Net Carrying Amount

Patents & Trademarks

$
35,794

10
-
15

$
(29,959
)

$
5,835

$
35,794

10
-
15

$
(27,982
)

$
7,812

Software

$
14,515

3

$
(12,100
)

$
2,415

$
14,515

3

$
(7,260
)

$
7,255

$
50,309

$
(42,059
)

$
8,250

$
50,309

$
(35,242
)

$
15,067

Amortization expense was $6,817 and $7,306 for the years ended March 31, 2026 and 2025, respectively.

Estimated aggregate future amortization expense related to intangible assets is as follows:

For the fiscal years ended March 31,

2027

$
4,140

2028

1,724

2029

1,551

2030

835

$
8,250

NOTE 5 – LINE OF CREDIT

On June 15, 2018, the Company obtained an unsecured revolving line of credit, with a limit per annum of $400,000. The line expires May 15, 2026, renewing automatically every year. The Company is required to make monthly interest payments, at a rate of 7.37 % and 8.87% as of March 31, 2026 and 2025, respectively. Any unpaid principal will be due upon maturity. As of March 31, 2026 and 2025, the outstanding balances were $379,446 and $377,161, respectively.

NOTE 6 - PAYCHECK PROTECTION PROGRAM LOAN

In May 2020, the Company obtained funding through the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) of $381,000. In February 2021, a second PPP loan was obtained in the amount of $332,542, for a total of $713,542. The loans will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities, with at least 60% being used for payroll. The Company did use the funds for these expenses during the year ended March 31, 2021. The Company applied for loan forgiveness of both PPP loans. On September 7, 2021, the Company received from the SBA for $361,275 of PPP loan forgiveness. On December 21, 2021, The Company received approval from the SBA for $332,542 of PPP loan forgiveness on the second loan. A total of $693,817 was recorded as Forgiveness of Paycheck Protection Program loan in the accompanying statements of operations for the year ended March 31, 2022.

The unforgiven portion of the first PPP loan is $19,725, which was converted to a term loan payable in equal installments of principal plus interest at 1% with a maturity date of May 15, 2025. No collateral or personal guarantees are required for the loan. As of March 31, 2026 and 2025, the outstanding balance was $-0- and $896, respectively.

F-12

NOTE 7 – LEASES

The Company leases office and manufacturing facilities under non-cancelable operating leases. Future minimum lease payments as of March 31, 2026 are as follows:

Fiscal Year Ended

Amount

March 31, 2027

$

106,872

March 31, 2028

106,872

March 31, 2029

26,718

Thereafter

Total future minimum lease payments

240,462

Less: Amount attributable to imputed interest

(12,534
)

Present value of future minimum lease payments

$
227,928

As of March 31, 2026, weighted average remaining lease term was 2.3 years. Weighted average discount rate was 5.0%.

Rent and real estate tax expense for all facilities for the years ended March 31, 2026 and 2025 was approximately $153,484 and $128,534 respectively, and are reported as a component of cost of sales and selling, general and administrative expenses in the accompanying statement of operations. The Company paid $106,872 in lease payments during the year.

NOTE 8 – CONCENTRATIONS

During the year ended March 31, 2026 and 2025, two customers accounted for 46% and 48% of our revenue, respectively. As of March 31, 2026 and March 31, 2025, two customers accounted for 51% and 55% of our gross accounts receivable, respectively. The loss of these major customers could have a material impact on our operations and cash flow.

The Company’s customer base is comprised of foreign and domestic entities with diverse demographics. Revenues from foreign customers represented for the year ended March 31, 2026 and 2025 were $537,205 or 16% and $340,977 or 11%, respectively.

NOTE 9 - SEGMENT INFORMATION

Information about segments is as follows:

Chemical

Electronics

Engineering

Total

Twelve months ended March 31, 2026

Revenue from external customers

$
1,159,583

$
1,838,152

$
349,347

$
3,347,082

Segment operating income

$
(177,969
)

$
(10,717
)

$
29,589

$
(159,097
)

Twelve months ended March 31, 2025

Revenue from external customers

$
1,086,707

$
1,526,236

$
584,167

$
3,197,110

Segment operating income

$
(132,305
)

$
(69,029
)

$
107,310

$
(94,024
)

Total assets at March 31, 2026

$
630,004

$
1,005,424

$
191,084

$
1,826,512

Total assets at March 31, 2025

$
700,476

$
1,038,106

$
389,289

$
2,127,871

F-13

NOTE 10 - DISAGGREGATED NET REVENUES

The following tables show the Company's net revenues disaggregated by reportable segment and by product and service type:

Twelve Months Ended March 31,

2026

2025

Net Revenue in the US

Chemical

$
622,378

$
745,730

Electronics

1,838,152

1,526,236

Engineering

349,347

584,167

2,809,877

2,856,133

Net Revenue outside the US

Chemical

537,205

340,977

Electronics

-

-

Engineering

-

-

537,205

340,977

Total Revenues

$
3,347,082

$
3,197,110

NOTE 11 - INCOME TAXES

The Company accounts for income taxes under ASC 740, Income Taxes, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities.

Income tax expense

Income tax expense (benefit) from continuing operations for the years ended March 31,2026, and 2025 consisted of the following:

March 31,

2026

2025

Current:

Federal

$
0

$
0

State

1,500

1,500

Foreign

0

0

Deferred:

Federal

0

0

State

0

0

Foreign

0

0

Total income tax expense

$
1,500

$
1,500

F-14

Deferred income taxes

Deferred tax assets and liabilities at March 31, 2026, and 2025 consisted of the following:

March 31,

2026

2025

Deferred tax assets:

Allowance for doubtful accounts

$
255,478

$
109,491

Federal net operating loss carryforward

318,661

303,674

State net operating loss carryforward

212,640

206,440

Federal tax credit carryforwards

316,772

316,772

State tax credit carryforwards

45,366

45,366

Stock Compensation

42,715

42,715

Depreciation – Federal

0

33,466

Depreciation – State

0

8,739

Total deferred tax assets

1,191,632

1,066,663

Less: valuation allowance

(1,191,632
)

(1,066,663
)

Net deferred tax assets

0

0

Deferred tax liabilities:

Depreciation - Federal

(32,131
)

0

Depreciation – State

(7,424
)

0

Total deferred tax liabilities

(39,555
)

0

Less: valuation allowance

39,555

0

Net deferred tax liability

$
0

$
0

The valuation allowance increased by $85,414 during the year ended March 31, 2026. Management believes it is more likely than not that the remaining deferred tax assets will not be realized through future taxable income.

As of March 31, 2026, the Company has federal net operating loss carryforwards of $1,517,432 and state net operating loss carryforwards of $2,362,670, which may be used to offset future taxable income.

Effective tax rate reconciliation

The Company’s effective tax rate reconciliation for the years ended March 31, 2026, and 2025 was as follows:

% of pretax income

2026

% of pretax income

2025

Tax at U.S. federal statutory rate (21.0%)

(21.0
%)

$
(20,764
)

(21.0
%)

$
(25,527
)

State and local income taxes, net of federal benefit

(4.8
%)

(4,701
)

(9.6
%)

(11,580
)

Foreign tax effects

0.0
%

0

0.0
%

0

Effect of changes in tax laws or rates enacted in the current period

0.0
%

0

0.0
%

0

Effect of cross-border tax laws

0.0
%

0

0.0
%

0

Tax credits

(0.0
%)

0

0.0
%

0

Changes in valuation allowance

21.4
%

21,188

29.1
%

35,328

Nontaxable or nondeductible items

5.9
%

5,777

2.7
%

3,279

Changes in unrecognized tax benefits

0.0
%

0

0.0
%

0

Income tax expense and effective tax rate

1.5
%

$
1,500

1.2
%

$
1,500

The Company pays taxes to only one state – New Jersey.

Income taxes paid

Income taxes paid (net of refunds received) for the years ended March 31, 2026, and 2025 were as follows:

March 31,

2026

2025

Federal

$
0

$
0

State

1,500

1,500

Foreign

0

0

Total

$
1,500

$
1,500

The following jurisdictions individually represented 5% or more of total income taxes paid (net of refunds received) for the year ended March 31, 2026, and 2025:

Jurisdiction

Amount

United States — Federal

$
0

New Jersey

1,500

F-15

Unrecognized tax benefits

A reconciliation of the Company’s unrecognized tax benefits for the years ended March 31, 2026, and 2025 are as follows:

March 31,

2026

2025

Unrecognized tax benefits at April1,

$
0

$
0

Increases for tax positions taken in the current year

0

0

Increases for tax positions taken in prior years

0

0

Decreases for tax positions taken in prior years

0

0

Settlements

0

0

Lapse of statute of limitations

0

0

Unrecognized tax benefits at March 31,

$
0

$
0

At March 31, 2026, and 2025, unrecognized tax benefits that, if recognized, would affect the effective tax rate were $0.

Interest and penalties

The Company recognizes interest and penalties related to uncertain tax positions as a component of selling, general and administrative expenses. There were no interest and penalties for the years ended March 31, 2026, and 2025.

Open tax years

The Company files income tax returns in the United States federal jurisdiction and the State of New Jersey jurisdiction, and in certain foreign jurisdictions. The Company’s federal, state, and foreign income tax returns for tax years after March 31, 2023, for federal and March 31, 2022, for the State of New Jersey remain subject to examination by taxing authorities.

NOTE 12 – FAIR VALUE MEASUREMENTS

Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures, provides the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under FASB ASC 820 are described as follows:

Level 1

Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the plan has the ability to access.

Level 2

Inputs to the valuation methodology include

●Quoted prices for similar assets or liabilities in active markets;

●Quoted prices for identical or similar assets or liabilities in active markets;

●Inputs other than quoted prices that are observable for the asset or liability

●Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

●If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability.

Level 3

Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset's or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

Following is a description of the valuation methodologies used for assets at fair value. There have been no changes in the methodologies used at March 31, 2026.

F-16

Investments in publicly held companies are recorded at fair value.

Investments in privately held companies are valued at cost, net book value or fair value when available. Investments valued at cost or net book value is a departure from accounting principles generally accepted in the United States of America.

The preceding methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The following table sets forth by level, within the fair value hierarchy, the Company’s assets at fair value as of March 31, 2026:

Assets at Fair Value as of March 31, 2026:

Level 1

Level 2

Level 3

Total

Investment

$

240,000

$

-

$

-

$

240,000

TOTAL ASSETS AT FAIR VALUE

$

240,000

$

-

$

-

$

240,000

NOTE 13 – 401(k) RETIREMENT PLAN

The Company sponsors a defined contribution 401(k) Retirement Plan (the “Plan”) for its eligible employees. Employees become eligible to participate in the Plan upon meeting certain age and service requirements. Employees may contribute up to the maximum amount allowed by law on a pre-tax basis.

The Plan’s investments are recorded at fair value. As of March 31, 2026, Plan assets were diversified across various investment options, including equity funds, fixed income funds, and cash equivalents. During the years ended March 31, 2026 and 2025 the Company made matching contributions of $24,768 and $24,084.

There were no significant changes to the Plan’s provisions during the year.

NOTE 14 – LEGAL PROCEEDINGS

We are involved, from time to time, in litigation and proceedings arising out of the ordinary course of business. There are no pending material legal proceedings or environmental investigations to which we are a party or to which our property is subject.

NOTE 15 – SUBSEQUENT EVENTS

We evaluated all subsequent events from the date of the balance sheet through the issuance date of these financial statements and determined that there are no events or transactions occurring during the subsequent event reporting period which require recognition or disclosure in the financial statements.