ABMC Reports First Quarter 2020 Results
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ABMC Reports First Quarter 2020 Results

Friday, July 31, 2020 4:00 PM
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Topic:
Earnings

KINDERHOOK, NY / ACCESSWIRE / July 31, 2020 / American Bio Medica Corporation (OTC PINK:ABMC) today announced financial results for the three months ended March 31, 2020.

Chief Executive Officer Melissa A. Waterhouse stated, "Our drug testing business has been negatively impacted by the Covid-19 pandemic. Here in the third quarter 2020, we are starting to see some improvement in drug test sales, however, as the pandemic continues, it is difficult to know when we will start to see a year-over-year increase in drug testing sales."

Waterhouse continued, "We started generating sales of the rapid antibody test in May 2020. Since our last press release update on June 26, 2020, we have continued to sell the rapid Covid-19 antibody tests. Although market demand for antibody testing can fluctuate as infection surges occur (due to the higher demand for diagnostic testing), we are still recording sales. These sales are for now offsetting our drug testing declines. We believe there is an opportunity for Covid-19-related sales to contribute significantly to our 2020 financial results."

Financial Highlights

  • Net sales in the first quarter 2020 were $729,000, compared to net sales of $923,000 in the first quarter 2019, a decrease of $194,000, or 21.0%.
  • Operating loss was $271,000 in the first quarter 2020, compared to an operating loss of $174,000 in the first quarter 2019.
  • Net loss was $325,000 in the first quarter 2020, or $(0.01) per share, compared to a net loss of $240,000, or $(0.01), in the first quarter 2019.

For more information on ABMC or its drug testing products, please visit www.abmc.com.

About American Bio Medica Corporation

American Bio Medica Corporation manufactures and markets accurate, cost-effective immunoassay test kits, primarily point of collection tests for drugs of abuse, and distributes a rapid test to detect Covid-19 antibodies. The Company and its worldwide distribution network target the workplace, government, corrections, clinical and educational markets.

This release may contain forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ, and such differences could be material. Such risks and uncertainties include, but are not limited to, risks and uncertainties related to the following: continued acceptance of our products, increased levels of competition in our industry, acceptance of new products, future sales and profit levels of the rapid antibody test for Covid-19 that we are distributing, product development, compliance with regulatory requirements, including but not limited to our ability to obtain marketing clearance on our product for our intended markets, intellectual property rights, our dependence on key personnel, third party sales and suppliers, trading in our common shares may be subject to "penny stock" rules, our history of recurring net losses and our ability to continue as a going concern. There can be no assurance that the Company will be successful in addressing such risks and uncertainties and the Company assumes no duty to update any forward-looking statements based upon actual results. Investors are strongly encouraged to review the section entitled "Risk Factors" in the Company's annual report on Form 10-K for the year ended December 31, 2019, quarterly reports on Form 10-Q, and other periodic reports on file with the Securities and Exchange Commission for a discussion of risks and uncertainties that could affect operating results and the market price of the Company's common shares.

(financial tables follow)

AMERICAN BIO MEDICA CORPORATION
Condensed Statements of Operations

(Unaudited)

 
  For the three     For the three  
 
  months ended     months ended  
 
  March 31, 2020     March 31, 2019  
 
           
Net sales
  $ 729,000     $ 923,000  
Cost of goods sold
    539,000       617,000  
Gross profit
    190,000       306,000  
 
               
Operating expenses:
               
Research and development
    34,000       19,000  
Selling and marketing
    88,000       113,000  
General and administrative
    339,000       348,000  
Total operating expenses
    461,000       480,000  
 
               
Operating loss
    (271,000 )     (174,000 )
 
               
Other expense
    (54,000 )     (66,000 )
 
               
Net loss before tax
    (325,000 )     (240,000 )
 
               
Income tax expense
    0       0  
 
               
Net loss
  $ (325,000 )   $ (240,000 )
 
               
Basic & diluted (loss) / income per common share
  $ (0.01 )   $ (0.01 )
 
               
Weighted average shares outstanding - basic
    33,968,523       32,367,963  
Weighted average shares outstanding - diluted
    33,968,523       32,367,963  


(Condensed Balance Sheets follow)

American Bio Medica Corporation
Condensed Balance Sheets

 
  March 31,     December 31,  
 
 
2020
(unaudited)
    2019  
ASSETS
           
Current Assets
           
Cash and cash equivalents
  $ 581,000     $ 4,000  
Accounts receivable, net of allowance for doubtful accounts of $34,000 at March 31, 2020 and December 31, 2019
    396,000       370,000  
Inventory, net of allowance of $304,000 at March 31, 2020 and $291,000 at December 31, 2019
    723,000       810,000  
Prepaid expenses and other current assets
    262,000       6,000  
Right of Use Asset - Operating Leases
    37,000       34,000  
Total current assets
    1,999,000       1,224,000  
Property, plant and equipment, net
    626,000       644,000  
Patents, net
    114,000       116,000  
Right of Use Asset - Operating Leases
    64,000       73,000  
Other assets
    21,000       21,000  
Total assets
  $ 2,824,000     $ 2,078,000  
LIABILITIES AND STOCKHOLDERS' EQUITY
               
Current liabilities
               
Accounts payable
  $ 695,000     $ 652,000  
Accrued expenses and other current liabilities
    1,334,000       543,000  
Right of Use Liability - Operating Leases
    34,000       34,000  
Wages payable
    139,000       104,000  
Line of credit
    322,000       337,000  
Current portion of long-term debt
    1,124,000       17,000  
Total current liabilities
    3,648,000       1,687,000  
Long-term debt/other liabilities, net of deferred finance costs
    0       1,108,000  
Right of Use Liability - Operating Leases
    64,000       73,000  
Total liabilities
    3,712,000       2,868,000  
COMMITMENTS AND CONTINGENCIES
               
Stockholders' Deficit:
               
Common stock
    358,000       327,000  
Additional paid-in capital
    21,632,000       21,437,000  
Accumulated deficit
    (22,878,000 )     (22,554,000 )
Total stockholders' deficit
    (888,000 )     (790,000 )
Total liabilities and stockholders' deficit
  $ 2,824,000     $ 2,078,000  


CONTACT:

Melissa A. Waterhouse
Chief Executive Officer
(800) 227-1243, Ext 107

SOURCE: American Bio Medica Corporation

American Bio Medica Corporation
Exchange:
Ticker:
OTC PINK
ABMC
$0.20
-1.0553
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