Kinderhook, N.Y., September 15, 2020 – American Bio Medica Corporation (OTCPK: ABMC) today announced financial results for the three and six months ended June 30, 2020. 

Chief Executive Officer Melissa A. Waterhouse stated, “We are pleased to report increased sales when comparing 2020 to 2019 (from both a quarter over quarter and year over year perspective) as a result of our distribution of the Covid-19 antibody test. There are a number of sales opportunities for the Covid-19 test in the pipeline and marketing applications yet to come for the product. In the meantime, it has been well received by customers. From an operational perspective, selling and marketing expense increased (due to commissions paid on sales of the rapid Covid-19 test), however, all other expenses decreased in the second quarter of 2020 even with increased sales. This allowed us to achieve operating income in the second quarter of 2020.” 

Waterhouse continued, “As the market for Covid-19 testing is developing, we are reviewing alternative products to offer our customers in addition to the antibody tests and looking for avenues to capitalize on our manufacturing operations. As indicated in our last announcement, we are seeing some rebound in the drug testing markets as businesses and treatment programs re-open, but we are still uncertain if or how long this rebound will continue as the pandemic progresses.”

Financial Highlights

  • Net sales in the second quarter of 2020 were $1,758,000, compared to net sales of $958,000 in the second quarter of 2019; an increase of $800,000, or 83.5%. Net sales in the six months ended June 30, 2020 were $2,486,000, compared to $1,880,000 in the six months ended June 30, 2019; an increase of $606,000, or 32.2%.
  • Operating income was $16,000 in the second quarter of 2020, compared to an operating loss of $155,000 in the second quarter of 2019. Operating loss was $255,000 in the six months ended June 30, 2020, compared to an operating loss of $329,000 in the six months ended June 30, 2019.
  • Net loss was $21,000, or $(0.00) per share in the second quarter of 2020, compared to net loss of $56,000, or $(0.00) per share, in the second quarter of 2019. Net loss was $346,000, or $(0.01) per share, in the six months ended June 30, 2020, compared to net loss of $296,000, or $(0.01) per share, for the six months ended June 30, 2019.

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, and distributes a rapid test to detect Covid-19 antibodies. The Company and its worldwide distribution network target the workplace, government, corrections, clinical and educational markets.

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 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, 2019, 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 threeFor the threeFor the sixFor the six
months endedmonths endedmonths endedmonths ended
June 30, 2020June 30, 2019June 30, 2020June 30, 2019
Net sales$1,758,000$958,000$2,486,000$1,880,000
Cost of goods sold1,176,000652,0001,714,0001,269,000
Gross profit582,000306,000772,000611,000
Operating expenses:
Research and development19,00020,00052,00039,000
Selling and marketing230,000107,000319,000219,000
General and administrative317,000334,000656,000682,000
Total operating expenses566,000461,0001,027,000940,000
Operating income / (loss) 16,000(155,000)(255,000)(329,000)
Other (expense) / income (37,000)101,000(91,000)35,000
Net loss before tax(21,000)(54,000)(346,000)(294,000)
Income tax expense0(2,000)0(2,000)
Net loss$(21,000)$(56,000)$(346,000)$(296,000)
Basic & diluted loss per common share$(0.00)$(0.00)$(0.01)$(0.01)
Weighted average shares outstanding – basic and diluted
35,905,948

32,521,675

34,937,236

32,445,244

(Condensed Balance Sheets follow)


American Bio Medica Corporation
Condensed Balance Sheets
June 30,December 31, 
2020(unaudited)2019
ASSETS 
Current Assets
Cash and cash equivalents$225,000$4,000
Accounts receivable, net of allowance for doubtful accounts of $34,000 at June 30, 2020 and December 31, 2019
350,000

370,000
Inventory, net of allowance of $355,000 at June 30, 2020 and $291,000 at December 31, 2019
769,000

810,000
Prepaid expenses and other current assets133,0006,000
Right of Use Asset – Operating Leases34,00034,000
Total current assets1,511,0001,224,000
    Property, plant and equipment, net608,000644,000
    Patents, net112,000116,000
    Right of Use Asset – Operating Leases58,00073,000
    Other assets21,00021,000
Total assets$2,310,000$2,078,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable  $627,000$652,000
Accrued expenses and other current liabilities663,000543,000
Right of Use Liability – Operating Leases32,00034,000
Wages payable134,000104,000
Line of credit226,000337,000
PPP Loan332,0000
Current portion of long-term debt1,121,000          17,000
Total current liabilities3,135,0001,687,000
    Long-term debt/other liabilities, net of deferred finance costs01,108,000
    Right of Use Liability – Operating Leases58,00073,000
Total liabilities3,193,0002,868,000
COMMITMENTS AND CONTINGENCIES
Stockholders’ Deficit:
Common stock359,000 327,000
Additional paid-in capital 21,658,00021,437,000
Accumulated deficit (22,900,000)(22,554,000)
Total stockholders’ deficit(883,000)(790,000)
Total liabilities and stockholders’ deficit$2,310,000$2,078,000

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