ABMC Reports Fourth Quarter and Year End 2019 Results

KINDERHOOK, NY / ACCESSWIRE / June 26, 2019 / American Bio Medica Corporation (OTC PINK:ABMC) today announced financial results for the fourth quarter and year ended December 31, 2019.

Chief Executive Officer, Melissa A. Waterhouse stated, “While sales did not increase in Q4 2019 (as they did in Q3 2019), they were relatively flat. In 2019, sales in our core markets declined, some of which was due to timing of shipments to customers at the end of the year. These declines were partially offset by increased contract manufacturing sales (due to two new customers in 2019) along with increased international sales. Operational expenses declined due to continued efforts to control costs wherever possible.”

Waterhouse continued, “Our drug testing business has been negatively impacted by the Covid-19 pandemic in the first half of 2020. The core markets for our drug tests are employment, clinical and government; and each of these sectors has been negatively impacted by the pandemic in various ways. On March 23, 2020, we announced we are distributing a rapid antibody test for Covid-19 and on May 29, 2020 this COVID-19 test was authorized by the United States Food and Drug Administration (FDA) under an Emergency Use Authorization (EUA) for use by authorized laboratories. Starting in late March 2020, we conducted pre-sales of the product and began shipping orders to customers in May 2020. Sales of the Rapid Covid-19 test have offset the negative impact to our drug testing business. As of the date of this release, we have recorded revenues of just over $1,000,000 which resulted in approximately $430,000 in profit to ABMC after expenses and commissions.”

Financial Highlights

  • Net sales in the fourth quarter of 2019 were $880,000, compared to $884,000 in the fourth quarter of 2018, or relatively flat. Net sales in 2019 were $3,655,000, compared to net sales of $3,872,000 in 2018, a decrease of 5.6%.
  • Operating loss was $183,000 in the fourth quarter of 2019, compared to an operating loss of $348,000 in the fourth quarter of 2018. Operating loss in 2019 was $593,000 compared to an operating loss of $762,000 in 2018.
  • Net loss was $248,000 in the fourth quarter of 2019, compared to a net loss of $412,000 in the fourth quarter of 2018. Net loss was $681,000 in 2019, compared to a net loss of $1,028,000 in 2018.

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, 2018, 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,  
 
  2019     2018     2019     2018  
 
  (unaudited)     (unaudited)     (unaudited)        
 
                       
Net sales
  880,000     884,000     3,655,000     3,872,000  
Cost of goods sold
    666,000       768,000       2,471,000       2,584,000  
Gross profit
    214,000       116,000       1,184,000       1,288,000  
Operating expenses:
                               
Research and development
    20,000       29,000       82,000       93,000  
Selling and marketing
    109,000       111,000       459,000       545,000  
General and administrative
    268,000       324,000       1,236,000       1,412,000  
Total operating expenses
    397,000       464,000       1,777,000       2,050,000  
 
                               
Operating loss
    (183,000 )     (348,000 )     (593,000 )     (762,000 )
 
                               
Other income/(expense) – net
    (65,000 )     (64,000 )     (93,000 )     (264,000 )
 
                               
Net loss before tax
    (248,000 )     (412,000 )     (686,000 )     (1,026,000 )
 
                               
Income tax expense
    8,000       (1,000 )     5,000       (2,000 )
 
                               
Net loss
    (240,000 )     (413,000 )     (681,000 )     (1,028,000 )
 
                               
Basic & diluted loss per common share
  (0.01 )   (0.01 )   (0.02 )   (0.03 )
 
                               
Basic weighted average shares outstanding
    32,667,757       29,211,454       32,526,669       30,115,063  
Diluted weighted average shares outstanding
    32,667,757       29,211,454       32,526,669       30,115,063  

(Balance Sheets follow)

American Bio Medica Corporation
Balance Sheets

 
  December 31,     December 31,  
 
 
2019
(unaudited)
    2018  
ASSETS
           
Current Assets
           
Cash and cash equivalents
  4,000     113,000  
Accounts receivable, net of allowance for doubtful accounts of $34,000 at December 31, 2019 and $36,000 at December 31, 2018
    370,000       452,000  
Inventory, net of allowance of $291,000 at December 31, 2019 and $268,000 at December 31, 2018
    810,000       1,019,000  
Prepaid expenses and other current assets
    6,000       29,000  
Right of Use Asset – Operating Leases
    37,000       0  
Total current assets
    1,227,000       1,613,000  
Property, plant and equipment, net
    644,000       718,000  
Patents, net
    116,000       123,000  
Right of Use Asset – Operating Leases
    73,000       0  
Other assets
    21,000       21,000  
Total assets
  2,078,000     2,475,000  
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities
               
Accounts payable
  652,000     359,000  
Accrued expenses and other current liabilities
    543,000       449,000  
Right of Use Liability – Operating Leases
    34,000       0  
Wages payable
    104,000       278,000  
Line of credit
    337,000       502,000  
Current portion of long-term debt, net of deferred finance costs
    17,000       237,000  
Total current liabilities
    1,687,000       1,825,000  
Long term debt, net of current portion & deferred finance costs
    1,108,000       796,000  
Right of Use Liability – Operating Leases
    73,000       0  
Total liabilities
    2,868,000       2,621,000  
 
               
Stockholders’ Equity:
               
Common stock
    327,000       323,000  
Additional paid-in capital
    21,437,000       21,404,000  
Accumulated deficit
    (22,554,000 )     (21,873,000 )
Total stockholders’ equity
    (790,000 )     (146,000 )
Total liabilities and stockholders’ equity
  2,078,000     2,475,000  

SOURCE: American Bio Medica Corporation

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