ABMC Reports Second Quarter 2020 Results
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ABMC Reports Second Quarter 2020 Results

Tuesday, September 15, 2020 12:00 PM
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Earnings

KINDERHOOK, NY / ACCESSWIRE / September 15, 2020 / American Bio Medica Corporation (OTC PINK:ABMC) today announced financial results for the three and six months ended June 30, 2020.

Chief Executive Officer Melissa A. Waterhouse stated, "We are pleased to report increased sales when comparing 2020 to 2019 (from both a quarter over quarter and year over year perspective) as a result of our distribution of the Covid-19 antibody test. There are a number of sales opportunities for the Covid-19 test in the pipeline and marketing applications yet to come for the product. In the meantime, it has been well received by customers. From an operational perspective, selling and marketing expense increased (due to commissions paid on sales of the rapid Covid-19 test), however, all other expenses decreased in the second quarter of 2020 even with increased sales. This allowed us to achieve operating income in the second quarter of 2020."

Waterhouse continued, "As the market for Covid-19 testing is developing, we are reviewing alternative products to offer our customers in addition to the antibody tests and looking for avenues to capitalize on our manufacturing operations. As indicated in our last announcement, we are seeing some rebound in the drug testing markets as businesses and treatment programs re-open, but we are still uncertain if or how long this rebound will continue as the pandemic progresses."

Financial Highlights

  • Net sales in the second quarter of 2020 were $1,758,000, compared to net sales of $958,000 in the second quarter of 2019; an increase of $800,000, or 83.5%. Net sales in the six months ended June 30, 2020 were $2,486,000, compared to $1,880,000 in the six months ended June 30, 2019; an increase of $606,000, or 32.2%.
  • Operating income was $16,000 in the second quarter of 2020, compared to an operating loss of $155,000 in the second quarter of 2019. Operating loss was $255,000 in the six months ended June 30, 2020, compared to an operating loss of $329,000 in the six months ended June 30, 2019.
  • Net loss was $21,000, or $(0.00) per share in the second quarter of 2020, compared to net loss of $56,000, or $(0.00) per share, in the second quarter of 2019. Net loss was $346,000, or $(0.01) per share, in the six months ended June 30, 2020, compared to net loss of $296,000, or $(0.01) per share, for the six months ended June 30, 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.

Contacts:

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

(financial tables follow)

AMERICAN BIO MEDICA CORPORATION
Condensed Statements of Operations

(unaudited)

                         
 
  For the three     For the three     For the six     For the six  
 
  months ended     months ended     months ended     months ended  
 
  June 30, 2020     June 30, 2019     June 30, 2020     June 30, 2019  
 
                       
Net sales
  $ 1,758,000     $ 958,000     $ 2,486,000     $ 1,880,000  
Cost of goods sold
    1,176,000       652,000       1,714,000       1,269,000  
Gross profit
    582,000       306,000       772,000       611,000  
 
                               
Operating expenses:
                               
Research and development
    19,000       20,000       52,000       39,000  
Selling and marketing
    230,000       107,000       319,000       219,000  
General and administrative
    317,000       334,000       656,000       682,000  
Total operating expenses
    566,000       461,000       1,027,000       940,000  
 
                               
Operating income / (loss)
    16,000       (155,000 )     (255,000 )     (329,000 )
 
                               
Other (expense) / income
    (37,000 )     101,000       (91,000 )     35,000  
 
                               
Net loss before tax
    (21,000 )     (54,000 )     (346,000 )     (294,000 )
 
                               
Income tax expense
    0       (2,000 )     0       (2,000 )
 
                               
Net loss
  $ (21,000 )   $ (56,000 )   $ (346,000 )   $ (296,000 )
 
                               
Basic & diluted loss per common share
  $ (0.00 )   $ (0.00 )   $ (0.01 )   $ (0.01 )
 
                               
Weighted average shares outstanding - basic and diluted
    35,905,948       32,521,675       34,937,236       32,445,244  
                                 

American Bio Medica Corporation
Condensed Balance Sheets

             
 
  June 30,     December 31,  
    2020     2019  
 
 
(unaudited)
       
ASSETS
           
Current Assets
           
Cash and cash equivalents
  225,000     4,000  
Accounts receivable, net of allowance for doubtful accounts of $34,000 at June 30, 2020 and December 31, 2019
    350,000       370,000  
Inventory, net of allowance of $355,000 at June 30, 2020 and $291,000 at December 31, 2019
    769,000       810,000  
Prepaid expenses and other current assets
    133,000       6,000  
Right of Use Asset - Operating Leases
    34,000       34,000  
Total current assets
    1,511,000       1,224,000  
Property, plant and equipment, net
    608,000       644,000  
Patents, net
    112,000       116,000  
Right of Use Asset - Operating Leases
    58,000       73,000  
Other assets
    21,000       21,000  
Total assets
  2,310,000     2,078,000  
LIABILITIES AND STOCKHOLDERS' EQUITY
               
Current liabilities
               
Accounts payable
  627,000     652,000  
Accrued expenses and other current liabilities
    663,000       543,000  
Right of Use Liability - Operating Leases
    32,000       34,000  
Wages payable
    134,000       104,000  
Line of credit
    226,000       337,000  
PPP Loan
    332,000       0  
Current portion of long-term debt
    1,121,000       17,000  
Total current liabilities
    3,135,000       1,687,000  
Long-term debt/other liabilities, net of deferred finance costs
    0       1,108,000  
Right of Use Liability - Operating Leases
    58,000       73,000  
Total liabilities
    3,193,000       2,868,000  
COMMITMENTS AND CONTINGENCIES
               
Stockholders' Deficit:
               
Common stock
    359,000       327,000  
Additional paid-in capital
    21,658,000       21,437,000  
Accumulated deficit
    (22,900,000 )     (22,554,000 )
Total stockholders' deficit
    (883,000 )     (790,000 )
Total liabilities and stockholders' deficit
  2,310,000     2,078,000  
                 

SOURCE: American Bio Medica Corporation 

American Bio Medica Corporation
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ABMC
$0.21
-8.6957
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