Kinderhook, N.Y., May 20, 2024 – American Bio Medica Corporation (OTCQB: ABMC) today announced financial results for the three months ended March 31, 2021.
Chief Executive Officer Melissa A. Waterhouse stated, “As I indicated in April 2021, sales of Covid-19 tests have declined significantly from previous levels. In the middle of the first quarter 2021, we were also informed by the manufacturer of the Covid-19 Rapid Antigen test that we could no longer offer the Covid-19 antigen test for sale in the United States. This obviously hampered our sales efforts. In late April 2021, we did secure the ability to offer a Covid-19 antigen/Influenza combination test (from an unrelated third party) along with another rapid Covid-19 antibody test (as an alternative to the Healgen antibody test as it has expanded use under the Emergency Use Authorization (“EUA”) policy set forth by the United States Food and Drug Administration (FDA). As with the other Covid-19 tests we are offering, the tests will be marketed in full compliance with the EUA policy. “
“Unfortunately, although we have seen sporadic improvement in drug testing sales, the uncertainty in our core drug testing markets continued in the first quarter 2021 as government agencies, businesses and clinical customers are still trying to financially recover from the pandemic. We are hopeful our core markets will become more stable as we get further into 2021. In the First Quarter 2021, we began discussions with contract manufacturing customers to resume sales given the introduction of Covid-19 vaccines and the belief that the need for their products will resume. We have open purchase orders (from 2020) with both customers and we expect to ship those orders in the second quarter of 2021. One of the customers also placed an additional (new) order in April 2021. In addition, we are starting a pilot with a potential new contact manufacturer customer later this month. If all goes well, we do expect this account to have a positive impact on sales in 2021 but, it is too soon to know the level of impact.”
Waterhouse continued, “Operating expenses increased $153,000 in the first quarter 2021 compared to the first quarter 2020. This increase was solely in general and administrative and was due to increased fees associated with debt as well as increased accounting fees for the Fiscal 2020 audit. We will continue to make every effort possible to control operating costs and manufacturing costs.”
Financial Highlights
- Net sales in the first quarter 2021 were $566,000, compared to net sales of $729,000 in the first quarter 2020, a decrease of $163,000, or 22.4%.
- Operating loss was $509,000 in the first quarter 2021, compared to an operating loss of $271,000 in the first quarter 2020.
- Net loss was $556,000 in the first quarter 2021, or $(0.01) per shares, compared to a net loss of $325,000, or $(0.01) per share in the first quarter 2020.
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. ABMC also provides contract manufacturing services related to certain infectious diseases; such as malaria and RSV and, distributes a rapid test to detect Covid-19 antibodies, a RT-PCR test to detect Covid-19 and a rapid Covid-19 antigen test.
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, RT-PCR test and rapid antigen 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, 2020, 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, 2024 | March 31, 2024 | |||
| Net sales | $ | 566,000 | $ | 729,000 |
| Cost of goods sold | 461,000 | 539,000 | ||
| Gross profit | 105,000 | 190,000 | ||
| Operating expenses: | ||||
| Research and development | 20,000 | 34,000 | ||
| Selling and marketing | 83,000 | 88,000 | ||
| General and administrative | 511,000 | 339,000 | ||
| Total operating expenses | 614,000 | 461,000 | ||
| Operating loss | (509,000) | (271,000) | ||
| Other expense | (47,000) | (54,000) | ||
| Net loss before tax | (556,000) | (325,000) | ||
| Income tax expense | 0 | 0 | ||
| Net loss | $ | (556,000) | $ | (325,000) |
| Basic & diluted (loss) / income per common share | $ | (0.01) | $ | (0.01) |
| Weighted average shares outstanding – basic | 38,859,032 | 33,968,523 | ||
| Weighted average shares outstanding – diluted | 38,859,032 | 33,968,523 |
(Condensed Balance Sheets follow)
American Bio Medica Corporation | ||||
| Condensed Balance Sheets | ||||
| March 31, | December 31, | |||
| 2021(unaudited) | 2020 | |||
| ASSETS | ||||
| Current Assets | ||||
| Cash and cash equivalents | $ | 63,000 | $ | 98,000 |
| Accounts receivable, net of allowance for doubtful accounts of $5,000 at March 31, 2024 and $22,000 December 31, 2023 | 337,000 | 407,000 | ||
| Inventory, net of allowance of $300,000 at March 31, 2024 and $279,000 at December 31, 2023 | 507,000 | 536,000 | ||
| Prepaid expenses and other current assets | 106,000 | 104,000 | ||
| Right of Use Asset – Operating Leases | 35,000 | 35,000 | ||
| Total current assets | 1,048,000 | 1,180,000 | ||
| Property, plant and equipment, net | 560,000 | 576,000 | ||
| Patents, net | 106,000 | 108,000 | ||
| Right of Use Asset – Operating Leases | 32,000 | 41,000 | ||
| Other assets | 21,000 | 21,000 | ||
| Total assets | $ | 1,767,000 | $ | 1,926,000 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
| Current liabilities | ||||
| Accounts payable | $ | 629,000 | $ | 577,000 |
| Accrued expenses and other current liabilities | 526,000 | 620,000 | ||
| Right of Use Liability – Operating Leases | 34,000 | 33,000 | ||
| Wages payable | 111,000 | 107,000 | ||
| Line of credit | 245,000 | 277,000 | ||
| PPP Loan | 332,000 | 332,000 | ||
| Current portion of long-term debt, net of deferred finance costs | 1,290,000 | 75,000 | ||
| Total current liabilities | 3,167,000 | 2,021,000 | ||
| Long-term debt/other liabilities, net of current portion & deferred finance costs | 0 | 1,120,000 | ||
| Right of Use Liability – Operating Leases | 31,000 | 41,000 | ||
| Total liabilities | 3,198,000 | 3,182,000 | ||
| COMMITMENTS AND CONTINGENCIES | ||||
| Stockholders’ Deficit: | ||||
| Common stock | 398,000 | 377,000 | ||
| Additional paid-in capital | 22,077,000 | 21,717,000 | ||
| Accumulated deficit | (23,906,000) | (23,350,000) | ||
| Total stockholders’ deficit | (1,431,000) | (1,256,000) | ||
| Total liabilities and stockholders’ deficit | $ | 1,767,000 | $ | 1,926,000 |
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