Kinderhook, N.Y., April 12, 2018American 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
Ended

 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
profit

 

301,000

 

539,000

 

1,997,000

 

2,490,000

Operating expenses:

 

 

 

 

 

 

 

 

  Research and
development

 

23,000

 

48,000

 

117,000

 

184,000

  Selling and
marketing

 

149,000

 

234,000

 

680,000

 

1,061,000

  General and
administrative

 

357,000

 

378,000

 

1,511,000

 

1,502,000

       Total
operating expenses

 

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
for doubtful accounts of $52,000 at December 31, 2017 and $49,000 at December
31, 2016

 

 

348,000

 

 

556,000

Inventory, net of allowance of $500,000
at December 31, 2017 and 449,000 at December 31, 2016

 

 

1,473,000

 

 

1,582,000

Prepaid expenses and other current
assets

 

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
STOCKHOLDERS’ EQUITY

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable

$

374,000

$

304,000

Accrued expenses and other current
liabilities

 

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