Kinderhook, N.Y., August 14, 2018 – American Bio Medica Corporation (OTCPK: ABMC) today announced financial results for the three and six months ended June 30, 2018.

Chief Executive Officer Melissa A. Waterhouse stated, “In the second quarter 2018, we saw improvement in clinical and international sales, and we also saw increased sales of our lower cost product alternative. Unfortunately, these improvements were not enough to offset $236,000 in lost product sales to a government account, which was essentially the decline in sales quarter over quarter. The loss of this account and the actions taken by a former employee/consultant of ABMC are the subject of ongoing litigation. In the second quarter 2018, we signed an agreement to perform contract manufacturing for another diagnostic company. We expect to ship their first order later in 2018. While it is too soon to quantify the impact of this new relationship, we are hopeful it will have a more dramatic impact on our sales going forward.”

Waterhouse continued, “Costs related to operations decreased 15.7% in the second quarter 2018, when compared to the second quarter 2017, and 11.9% when comparing the six months ended June 30, 2018 with the six months ended June 30, 2018. The reduced costs are as a result of the Company’s efforts to ensure expenses are reasonable and in line with sales. Increased interest costs associated with our line of credit further added to our net loss for the second quarter 2018.”

Financial Highlights

  • Net sales in the second quarter of 2018 were $1,069,000, compared to $1,306,000 in the second quarter 2017, a decrease of 18.1%. Net sales in the six months ended June 30, 2018 were $2,110,000, compared to $2,621,000 in the six months ended June 30, 2017, a decrease of 19.5%.
  • Operating loss was $74,000 in the second quarter of 2018, compared to an operating loss of $21,000 in the second quarter of 2017. Operating loss was $281,000 in the six months ended June 30, 2018, compared to an operating loss of $88,000 in the six months ended June 30, 2017.
  • Net loss was $147,000 in the second quarter of 2018, compared to net loss of $71,000 in the second quarter of 2017. Net loss was $413,000 in the six months ended June 30, 2018, compared to net loss of $203,000 in the six months ended June 30, 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 products 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

Condensed
Statements of Operations

(unaudited)

 

 

For the three

 

For the three

 

For the six

 

For the six

 

 

months ended

 

months ended

 

months ended

 

months ended

 

 

June 30, 2018

 

June 30, 2017

 

June 30, 2018

 

June 30, 2017

 

 

 

 

 

 

 

 

 

Net sales

$

1,069,000

$

1,306,000

$

2,110,000

$

2,621,000

Cost of goods sold

 

632,000

 

741,000

 

1,301,000

 

1,491,000

Gross profit

 

437,000

 

565,000

 

809,000

 

1,130,000

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

19,000

 

22,000

 

44,000

 

68,000

Selling and marketing

 

148,000

 

176,000

 

310,000

 

372,000

General and administrative

 

344,000

 

388,000

 

736,000

 

778,000

Total operating expenses

 

511,00

 

586,000

 

1,090,000

 

1,218,000

 

 

 

 

 

 

 

 

 

Operating (loss) / income

 

(74,000)

 

(21,000)

 

(281,000)

 

(88,000)

 

 

 

 

 

 

 

 

 

Other (expense)/ income

 

(71,000)

 

(49,000)

 

(130,000)

 

(114,000)

 

 

 

 

 

 

 

 

 

Net loss before tax

 

(145,000)

 

(70,000)

 

(411,000)

 

(202,000)

 

 

 

 

 

 

 

 

 

Income tax expense

 

(2,000)

 

(1,000)

 

(2,000)

 

(1,000)

 

 

 

 

 

 

 

 

 

Net loss

$

(147,000)

$

(71,000)

$

(413,000)

$

(203,000)

 

 

 

 

 

 

 

 

 

Basic & diluted loss per common share

$

(0.00)

$

(0.00)

$

(0.01)

$

(0.01)

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – basic and
diluted

 

 

29,936,111

 

 

29,242,388

 

 

29,879,754

 

 

29,043,692

 

 

 

(Condensed
Balance Sheets follow)

 

 

American Bio Medica Corporation

Condensed Balance Sheets

 

 

June 30,

 

December 31,

 

 

2018

(unaudited)

 

2017

 

ASSETS

 

 

 

 

Current Assets

 

 

 

 

Cash and cash equivalents

$

76,000

$

36,000

Accounts receivable, net of
allowance for doubtful accounts of $56,000 at June 30, 2018 and $52,000 at
December 31, 2017

 

512,000

 

 

348,000

Inventory, net of allowance of
$541,000 at June 30, 2018 and $500,000 at December 31, 2017

 

1,261,000

 

 

1,473,000

Prepaid expenses and other current
assets

 

33,000

 

97,000

Total current assets

 

1,882,000

 

1,954,000

Property, plant and equipment, net

 

754,000

 

792,000

Patents, net

 

119,000

 

109,000

Other assets

 

21,000

 

21,000

Deferred finance costs – line of credit, net

 

0

 

15,000

Total assets

$

2,776,000

$

2,891,000

LIABILITIES AND
STOCKHOLDERS’ EQUITY

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable


$

349,000

$

374,000

Accrued expenses and other current
liabilities

 

358,000

 

311,000

Wages payable

 

252,000

 

259,000

Line of credit

 

596,000

 

446,000

Current portion of longterm
debt

 

237,000

         

87,000

Total current liabilities

 

1,792,000

 

1,477,000

Other liabilities/debt

 

13,000

 

19,000

Long-term debt, net of current portion and deferred finance costs

 

733,000

 

772,000

Total liabilities

 

2,538,000

 

2,268,000

COMMITMENTS AND
CONTINGENCIES

 

 

 

 

Stockholders’ Equity:

 

 

 

 

Common stock

 

300,000

 

298,000

Additional paid-in capital

 

21,196,000

 

21,170,000

Accumulated deficit

 

(21,258,000)

 

(20,845,000)

Total stockholders’ equity

 

238,000

 

623,000

Total liabilities and stockholders’ equity

$

2,776,000

$

2,891,000

#####