Kinderhook, N.Y., April 16, 2019 – American Bio Medica Corporation (OTCPK: ABMC) today announced financial results for the fourth quarter and year ended December 31, 2018.

Chief Executive Officer, Melissa A. Waterhouse stated, “Sales in 2018 were significantly impacted by the loss of a large government account in the last quarter of 2017. Going forward into 2019, we are seeing sales from the new contracts we signed in the latter part of 2018. In 2019, we also expect to expand the markets where we sell our oral fluid drug tests and we are already offering additional products via distribution relationships.”

Waterhouse continued, “Financial results in 2018 were also impacted by inventory disposals and further adjustments to our inventory reserve. From an expense perspective, we continued to maintain a reasonable level of expenses relative to sales; this will continue into 2019.”

Financial Highlights

  • Net sales in the fourth quarter of 2018 were $884,000, compared to $939,000 in the fourth quarter of 2017, a decrease of 5.9%. Net sales in 2018 were $3,872,000, compared to net sales of $4,914,000 in 2017, a decrease of 21.2%.
  • Operating loss was $348,000 in the fourth quarter of 2018, compared to an operating loss of $228,000 in the fourth quarter of 2017. Operating loss in 2018 was $762,000 compared to an operating loss of $311,000 in 2017.
  • Net loss was $413,000 in the fourth quarter of 2018, compared to a net loss of $292,000 in the fourth quarter of 2017. Net loss was $1,028,000 in 2018, compared to a net loss of $545,000 in 2017.

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, 2017, 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,

 

 

2018

 

2017

 

2018

 

2017

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

884,000

$

939,000

$

3,872,000

$

4,914,000

Cost of goods sold

 

768,000

 

638,000

 

2,584,000

 

2,917,000

       Gross profit

 

116,000

 

301,000

 

1,288,000

 

1,997,000

Operating expenses:

 

 

 

 

 

 

 

 

  Research and development

 

29,000

 

23,000

 

93,000

 

117,000

  Selling and marketing

 

111,000

 

149,000

 

545,000

 

680,000

  General and administrative

 

324,000

 

357,000

 

1,412,000

 

1,511,000

       Total operating expenses

 

464,000

 

529,000

 

2,050,000

 

2,308,000

 

 

 

 

 

 

 

 

 

Operating loss

 

(348,000)

 

(228,000)

 

(762,000)

 

(311,000)

 

 

 

 

 

 

 

 

 

Other income/(expense) – net

 

(64,000)

 

(63,000)

 

(264,000)

 

(234,000)

 

 

 

 

 

 

 

 

 

Net loss before tax

 

(412,000)

 

(291,000)

 

(1,026,000)

 

(545,000)

 

 

 

 

 

 

 

 

 

Income tax expense

 

(1,000)

 

(1,000)

 

(2,000)

 

0

 

 

 

 

 

 

 

 

 

Net loss

 

(413,000)

 

(292,000)

 

(1,028,000)

 

(545,000)

 

 

 

 

 

 

 

 

 

Basic & diluted loss per common share

$

(0.01)

$

(0.01)

$

(0.03)

$

(0.02)

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

30,451,758

 

29,211,454

 

30,115,063

 

29,211,454

Diluted weighted average shares outstanding

 

30,451,758

 

29,211,454

 

30,115,062

 

29,211,454

 

(Balance Sheets follow)

American Bio Medica Corporation

Balance Sheets

 

 

December 31,

 

December 31,

 

 

2018

(unaudited)

 

2017

ASSETS

 

 

 

 

Current Assets

 

 

 

 

Cash and cash equivalents

$

113,000

$

36,000

Accounts receivable, net of allowance for doubtful accounts of $36,000 at December 31, 2018 and $52,000 at December 31, 2017

 

 

452,000

 

 

348,000

Inventory, net of allowance of $268,000 at December 31, 2018 and $500,000 at December 31, 2017

 

 

1,019,000

 

 

1,473,000

Prepaid expenses and other current assets

 

29,000

 

97,000

Total current assets

 

1,613,000

 

1,954,000

Property, plant and equipment, net

 

718,000

 

792,000

Patents, net

 

123,000

 

109,000

Other assets

 

21,000

 

21,000

Deferred finance costs – line of credit, net

 

0

 

15,000

Total assets

$

2,475,000

$

2,891,000

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable

$

359,000

$

374,000

Accrued expenses and other current liabilities

 

449,000

 

311,000

Wages payable

 

278,000

 

259,000

Line of credit

 

502,000

 

446,000

Current portion of long-term debt

 

237,000

 

87,000

Total current liabilities

 

1,825,000

 

1,477,000

Other liabilities/debt

 

7,000

 

19,000

Long term debt, net of current portion & deferred finance costs

 

789,000

 

772,000

Total liabilities

 

2,621,000

 

2,268,000

 

 

 

 

 

Stockholders’ Equity:

 

 

 

 

Common stock

 

323,000

 

298,000

Additional paid-in capital

 

21,404,000

 

21,170,000

Accumulated deficit

 

(21,873,000)

 

(20,845,000)

Total stockholders’ equity

 

(146,000)

 

623,000

Total liabilities and stockholders’ equity

$

2,475,000

$

2,891,000