Kinderhook, N.Y., April 12, 2024 – American Bio Medica Corporation (OTCPK: ABMC) today announced financial results for the fourth quarter and year ended December 31, 2017.
Chief Executive Officer Melissa A. Waterhouse stated, “In the fourth quarter of 2017, we lost a significant account that we have had under contract for more than 10 years. The majority of the sales decline in the fourth quarter was due to the loss of this account; this account is the subject of litigation we initiated against Premier Biotech Screening, Inc. and its President Todd Bailey (and others) related to alleged actions taken in connection with this account. From an operational perspective, ABMC continued to keep a close eye on expenses and apart from an increase in general and administrative expenses (due to the litigation), our operational expense declined.”
Waterhouse continued, “Although sales declined, we are seeing a positive impact on sales of a product line we started offering via a distribution relationship in mid-2017. Furthermore, in January 2018, ABMC retained a Director of Clinical Sales to spearhead our efforts in rehabilitation/drug treatment, pain management and other clinical markets. We also intend to refocus marketing efforts related to our oral fluid product in Fiscal 2018. At the same time, we will continue to maintain a reasonable level of operating expenses.”
Financial Highlights
- Net sales in the fourth quarter of 2017 were $939,000 compared to $1,217,000 in the fourth quarter of 2016, a decrease of 22.8%. Net sales in 2017 were $4,914,000 compared to $5,609,000 in 2016, a decrease of 12.4%.
- Operating loss was $228,000 in the fourth quarter of 2017 compared to an operating loss of $121,000 in the fourth quarter of 2016. Operating loss in 2017 was $311,000 compared to an operating loss of $257,000 in 2016.
- Net loss was $292,000 in the fourth quarter of 2017 compared to a net loss of $215,000 in the fourth quarter of 2016. Net loss was $545,000 in 2017 compared to a net loss of $345,000 in 2016.
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. The Company and its worldwide distribution network target the workplace, government, corrections, clinical and educational markets. ABMC’s Rapid Drug Screen®, Rapid ONE®, RDS® InCup®, Rapid TOX® and Rapid TOX Cup® II test for the presence or absence of drugs of abuse in urine, while OralStat® tests for the presence or absence of drugs of abuse in oral fluids. ABMC’s Rapid Reader® is a compact, portable device that, when connected to any computer, interprets the results of an ABMC drug screen, and sends the results to a data management system, enabling the test administrator to easily manage their drug testing program.
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, 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, 2016, 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 | |||||||||
Statements of Operation | |||||||||
|
| Three Months | Year Ended | ||||||
|
| December 31, | December 31, | ||||||
|
| 2017 |
| 2016 |
| 2017 |
| 2016 | |
|
| (unaudited) |
| (unaudited) |
| (unaudited) |
|
| |
|
|
|
|
|
|
|
|
| |
Net sales | $ | 939,000 | $ | 1,217,000 | $ | 4,914,000 | $ | 5,609,000 | |
Cost of goods sold |
| 638,000 |
| 678,000 |
| 2,917,000 |
| 3,119,000 | |
Gross |
| 301,000 |
| 539,000 |
| 1,997,000 |
| 2,490,000 | |
Operating expenses: |
|
|
|
|
|
|
|
| |
Research and |
| 23,000 |
| 48,000 |
| 117,000 |
| 184,000 | |
Selling and |
| 149,000 |
| 234,000 |
| 680,000 |
| 1,061,000 | |
General and |
| 357,000 |
| 378,000 |
| 1,511,000 |
| 1,502,000 | |
Total |
| 529,000 |
| 660,000 |
| 2,308,000 |
| 2,747,000 | |
|
|
|
|
|
|
|
|
| |
Operating loss |
| (228,000) |
| (121,000) |
| (311,000) |
| (257,000) | |
|
|
|
|
|
|
|
|
| |
Other income/(expense) - net |
| (63,000) |
| (92,000) |
| (234,000) |
| (84,000) | |
|
|
|
|
|
|
|
|
| |
Net loss before tax |
| (291,000) |
| (213,000) |
| (545,000) |
| (341,000) | |
|
|
|
|
|
|
|
|
| |
Income tax expense |
| (1,000) |
| (2,000) |
| 0 |
| (4,000) | |
|
|
|
|
|
|
|
|
| |
Net loss |
| (292,000) |
| (215,000) |
| (545,000) |
| (345,000) | |
|
|
|
|
|
|
|
|
| |
Basic & diluted loss per common share | $ | (0.01) | $ | (0.01) | $ | (0.02) | $ | (0.01) | |
|
|
|
|
|
|
|
|
| |
Basic weighted average shares outstanding |
| 29,211,454 |
| 27,463,265 |
| 29,211,454 |
| 27,463,265 | |
Diluted weighted average shares outstanding |
| 29,211,454 |
| 27,463,265 |
| 29,211,454 |
| 27,463,265 | |
(Balance Sheets
follow)
American Bio Medica Corporation | ||||
Balance Sheets | ||||
|
| December 31, |
| December 31, |
|
| 2017 (unaudited) |
| 2016 |
ASSETS |
|
|
|
|
Current Assets |
|
|
|
|
Cash and cash equivalents | $ | 36,000 | $ | 156,000 |
Accounts receivable, net of allowance |
|
348,000 |
|
556,000 |
Inventory, net of allowance of $500,000 |
|
1,473,000 |
|
1,582,000 |
Prepaid expenses and other current |
| 97,000 |
| 92,000 |
Total current assets |
| 1,954,000 |
| 2,386,000 |
Property, plant and equipment, net |
| 792,000 |
| 824,000 |
Patents, net |
| 109,000 |
| 93,000 |
Other assets |
| 21,000 |
| 21,000 |
Deferred finance costs – line of credit, net |
| 15,000 |
| 47,000 |
Total assets | $ | 2,891,000 | $ | 3,371,000 |
|
|
|
|
|
LIABILITIES AND |
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable | $ | 374,000 | $ | 304,000 |
Accrued expenses and other current |
| 311,000 |
| 276,000 |
Wages payable |
| 259,000 |
| 299,000 |
Line of credit |
| 446,000 |
| 639,000 |
Current portion of long-term debt |
| 87,000 |
| 75,000 |
Total current liabilities |
| 1,477,000 |
| 1,593,000 |
Other liabilities/debt |
| 19,000 |
| 0 |
Long term debt, net of current portion & deferred finance costs |
| 772,000 |
| 753,000 |
Total liabilities |
| 2,268,000 |
| 2,346,000 |
|
|
|
|
|
Stockholders’ Equity: |
|
|
|
|
Common stock |
| 298,000 |
| 288,000 |
Additional paid-in capital |
| 21,170,000 |
| 21,037,000 |
Accumulated deficit |
| (20,845,000) |
| (20,300,000) |
Total stockholders’ equity |
| 623,000 |
| 1,025,000 |
Total liabilities and stockholders’ equity | $ | 2,891,000 | $ | 3,371,000 |