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)
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For the three | For the three | ||||||
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months ended | months ended | ||||||
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March 31, 2020 | March 31, 2019 | ||||||
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Net sales
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$ | 729,000 | $ | 923,000 | ||||
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Cost of goods sold
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539,000 | 617,000 | ||||||
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Gross profit
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190,000 | 306,000 | ||||||
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Operating expenses:
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Research and development
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34,000 | 19,000 | ||||||
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Selling and marketing
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88,000 | 113,000 | ||||||
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General and administrative
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339,000 | 348,000 | ||||||
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Total operating expenses
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461,000 | 480,000 | ||||||
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Operating loss
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(271,000 | ) | (174,000 | ) | ||||
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Other expense
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(54,000 | ) | (66,000 | ) | ||||
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Net loss before tax
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(325,000 | ) | (240,000 | ) | ||||
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Income tax expense
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0 | 0 | ||||||
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Net loss
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$ | (325,000 | ) | $ | (240,000 | ) | ||
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Basic & diluted (loss) / income per common share
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$ | (0.01 | ) | $ | (0.01 | ) | ||
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Weighted average shares outstanding - basic
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33,968,523 | 32,367,963 | ||||||
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Weighted average shares outstanding - diluted
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33,968,523 | 32,367,963 | ||||||
(Condensed Balance Sheets follow)
American Bio Medica Corporation
Condensed Balance Sheets
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March 31, | December 31, | ||||||
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2020
(unaudited)
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2019 | ||||||
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ASSETS
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Current Assets
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Cash and cash equivalents
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$ | 581,000 | $ | 4,000 | ||||
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Accounts receivable, net of allowance for doubtful accounts of $34,000 at March 31, 2020 and December 31, 2019
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396,000 | 370,000 | ||||||
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Inventory, net of allowance of $304,000 at March 31, 2020 and $291,000 at December 31, 2019
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723,000 | 810,000 | ||||||
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Prepaid expenses and other current assets
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262,000 | 6,000 | ||||||
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Right of Use Asset - Operating Leases
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37,000 | 34,000 | ||||||
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Total current assets
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1,999,000 | 1,224,000 | ||||||
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Property, plant and equipment, net
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626,000 | 644,000 | ||||||
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Patents, net
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114,000 | 116,000 | ||||||
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Right of Use Asset - Operating Leases
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64,000 | 73,000 | ||||||
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Other assets
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21,000 | 21,000 | ||||||
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Total assets
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$ | 2,824,000 | $ | 2,078,000 | ||||
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities
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Accounts payable
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$ | 695,000 | $ | 652,000 | ||||
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Accrued expenses and other current liabilities
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1,334,000 | 543,000 | ||||||
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Right of Use Liability - Operating Leases
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34,000 | 34,000 | ||||||
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Wages payable
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139,000 | 104,000 | ||||||
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Line of credit
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322,000 | 337,000 | ||||||
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Current portion of long-term debt
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1,124,000 | 17,000 | ||||||
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Total current liabilities
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3,648,000 | 1,687,000 | ||||||
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Long-term debt/other liabilities, net of deferred finance costs
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0 | 1,108,000 | ||||||
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Right of Use Liability - Operating Leases
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64,000 | 73,000 | ||||||
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Total liabilities
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3,712,000 | 2,868,000 | ||||||
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COMMITMENTS AND CONTINGENCIES
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Stockholders' Deficit:
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Common stock
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358,000 | 327,000 | ||||||
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Additional paid-in capital
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21,632,000 | 21,437,000 | ||||||
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Accumulated deficit
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(22,878,000 | ) | (22,554,000 | ) | ||||
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Total stockholders' deficit
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(888,000 | ) | (790,000 | ) | ||||
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Total liabilities and stockholders' deficit
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$ | 2,824,000 | $ | 2,078,000 | ||||
CONTACT:
Melissa A. Waterhouse
Chief Executive Officer
(800) 227-1243, Ext 107
SOURCE: American Bio Medica Corporation