FOR IMMEDIATE RELEASE:
KINDERHOOK, NY -- August 11, 2024 -- American Bio Medica Corp. (NASDAQ: ABMC), which develops, manufactures and markets drugs-of-abuse diagnostic kits, sprays and support services, today reported results for the year ended April 30, 2000.
Net sales of drug test kits were $7,653,000 for fiscal 2000, compared to $6,499,000 for the previous year, an increase of $1,154,000 or %17.8. Within Fiscal 2000, the Company discontinued its book division enabling them to focus their entire efforts on the marketing of the Rapid Drug Screen. Total sales for Fiscal 1999 included 539,000 of revenue from the book division while Fiscal 2000 had no revenue from the book division. Total sales increased from $7,038,000 in the previous year to $7,653,000 in Fiscal 2000, or 8.7%. Net loss from operations increased to $2,136,000 for fiscal 2000, compared to a loss of $1,691,000 for fiscal 1999. The percentage increase in sales was significantly less than the 226% increase achieved last year. The Company believes this to be a direct result of knock-off products in the market that infringe on ABMC patents.
Relative to sales, selling, general, and administrative costs decreased from 71.6% in Fiscal 1999 to 68.2% in Fiscal 2000. SG&A increased 3.6% to $5,223,000 for fiscal 2000 from $5,040,000 the previous year. The Company attributes the increase to legal fees, which increased to $951,000, or 12.4% of net sales, in fiscal 2000 compared to $489,000, or 6.9% of sales, in fiscal 1999.
The increase in legal fees was due primarily to patent-infringement lawsuits filed against a former supplier and certain former distributors for production and sale of a knock-off of ABMC's Rapid Drug Screen on-site test for drugs of abuse. ABMC has won preliminary decisions, but the main issues have not yet been litigated.
Research and development expense increased in Fiscal 2000 to $799,000 compared to $336,00 for the previous year. The increase represents the Company's continued efforts to enhance product performance and improve methods to reduce the cost of manufacturing its drug test kits. The Company also completed the production of the tricyclic antidepressants (TCA) test strip included in the Company's 9 panel Rapid Drug Screen.
"It has been a difficult year for us with the current patent litigation but feel it is imperative that we defend our intellectual property rights," said American Bio Medica Chairman and CEO Stan Cipkowski. "We are confident that the company's successful prosecution of these lawsuits will result in a significant increase in the company's sales revenues and earnings. We also expect to fully recover legal fees and lost earnings upon successful completion of this litigation."
Cipkowski also added, "We are extremely pleased with our R&D efforts over the past year. This enabled us to improve our gross margin to 60% in the fourth quarter. We continue to provide the market with a product of superior quality." He went on to add, "The completion of the development program for the TCA drug testing strip was a major event for ABMC. As one of a very few companies that can offer this option in the clinical market, we expect to see revenue from this product in the new fiscal year."
The company anticipates a boost in sales due to the introduction of its non-invasive Drug Detector wipe-and-spray test for marijuana and cocaine that will be sold by drug stores across the country. Drug Detector was received with excitement when introduced at a chain-drug-store trade show in the spring. ABMC also has filed with the FDA for retail sales of Rapid Drug Screen and has launched a major marketing effort for it in Latin America.
Cipkowski noted, "Our sales growth has resumed in this new year as
we are reclaiming sales lost to the knock-offs in our core markets
with our superior products. Add on the anticipated sales from the new
9 panel for the clinical market and the over the counter sales with
Drug Detector and we are once again on track and increasing
shareholder value."
Condensed Balance Sheet As of April 30, 2024 As of April 30, 2024 -------------------- -------------------- ASSETS Cash & equivalents $ 1,207,000 $ 131,000 Total current assets $ 3,809,000 $ 3,802,000 Total assets $ 5,038,000 $ 4,435,000 LIABILITIES & STOCKHOLDERS' EQUITY Total current liabilities $ 1,793,000 $ 1,415,000 Total liabilities $ 1,827,000 $ 1,462,000 Total stockholders' equity $ 5,038,000 $ 2,973,000 Condensed Statement of Operations For the Year Ended For the Year Ended April 30, 2024 April 30, 2024 -------------- -------------- Net sales $ 7,653,000 $ 7,038,000 Cost of goods sold $ 3,602,000 $ 3,356,000 Gross profit $ 4,051,000 $ 3,682,000 Total operating expenses $ 6,128,000 $ 5,401,000 Net income (loss) $ (2,136,000) $(1,691,000) Basic and diluted net income (loss) per common share $ (0.15) $ (0.15) Weighted average shares outstanding - basic and diluted 15,480,790 14,557,369
American Bio Medica Corporation develops, manufactures and markets inexpensive, accurate on-site drugs-of-abuse diagnostic kits, sprays and support services worldwide. The company's global distributors target the workplace, physicians, corrections, clinical and educational markets. ABMC's Drug Detector identifies minute traces of illegal drugs on surfaces, while the company's Rapid Drug Screen tests individuals and is proven to correlate 100% with the standard laboratory screening test.
Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risk and uncertainties, including without limitation, continued acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, the Company's dependence on third-party suppliers, intellectual property rights, and other risks detailed from time to time in the Company's periodic report filed with the Securities and Exchange Commission
Melissa A. Decker Manager Investor Relations & Corporate Communications Email: melissa@americanbiomedica.com Tel: 800/227-1243 Fax: 518/758-8171 Internet: www.americanbiomedica.com
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