ABMC Reports Third Quarter 2017 Results

KINDERHOOK, N.Y.--()--American Bio Medica Corporation (OTCPK: ABMC) today announced financial results for the three and nine months ended September 30, 2017.

Chief Executive Officer Melissa A. Waterhouse stated, “Although the third quarter of 2017 represented a decrease in sales when compared to the third quarter of 2016, sales actually increased when compared to the first and second quarter of 2017. As of result of OTC marketing clearance for our Rapid TOX Cup II in mid-August 2017, we are working on a number of sales opportunities that we are hopeful will offset the sales declines due to the loss of government accounts (accounts that are the subject of our ongoing litigation) and contract manufacturing sales. From an operational standpoint, we are continually reviewing our expenses and resources to ensure we are utilizing them for maximum benefit and to ensure expenses stay in line with sales.”

Financial Highlights

  • Net sales in the third quarter of 2017 were $1,354,000, compared to $1,417,000 in the third quarter 2016, a decrease of 4.4%. Net sales in the nine months ended September 30, 2017 were $3,975,000, compared to $4,392,000 in the nine months ended September 30, 2016, a decrease of 9.5%. The loss of a government account in the fourth quarter of 2016 and the anticipated decrease in contract manufacturing sales were the primary cause of the reduced sales in both periods. However, these declines were partially offset by increased international and national account sales in both periods.
  • Operating income was $5,000 in the third quarter of 2017, compared to an operating loss of $60,000 in the third quarter of 2016. Operating expenses decreased 16.4% in the third quarter of 2017 when compared to the third quarter 2016. We saw reductions in R&D expense (7.1%) and selling and marketing expenses (42.2%), while G&A expense increased slightly (2.2%) due to litigation we initiated earlier in 2017.
  • Operating loss was $83,000 in the nine months ended September 30, 2017, compared to an operating loss of $118,000 in the nine months ended September 30, 2016. Operating expenses declined 14.0% in the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016. Reductions in R&D (30.9%) and selling and marketing expense (35.7%) were partially offset by increased G&A costs (4.3%), again due to litigation. In addition, the nine months ended September 30, 2016 included other income of $200,000 primarily related to a tech transfer that did not recur in the nine months ended September 30, 2017.
  • Net loss was $49,000 in the third quarter of 2017, compared to net loss of $88,000 in the third quarter of 2016. Net loss was $252,000 in the nine months ended September 30, 2017, compared to net loss of $130,000 in the nine months ended September 30, 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
Condensed Statements of Operations
(unaudited)
    For the three   For the three   For the nine   For the nine
months ended months ended months ended months ended
 

September 30,
2017

   

September 30,
2016

   

September 30,
2017

   

September 30,
2016

 
Net sales $ 1,354,000 $ 1,417,000 $ 3,975,000 $ 4,392,000
Cost of goods sold   788,000     806,000     2,279,000     2,441,000
Gross profit   566,000     611,000     1,696,000     1,951,000
 
Operating expenses:
Research and development 26,000 28,000 94,000 136,000
Selling and marketing 159,000 275,000 531,000 827,000
General and administrative   376,000     368,000     1,154,000     1,106,000
Total operating expenses   561,000     671,000     1,779,000     2,069,000
 
Operating income / (loss)   5,000     (60,000)     (83,000)     (118,000)
 
Other (expense)/ income   (56,000)     (27,000)     (170,000)     (10,000)
 
Net loss before tax (51,000) (87,000) (253,000) (128,000)
 
Income tax benefit / ( expense)   2,000     (1,000)     1,000     (2,000)
 
Net loss $ (49,000)   $ (88,000)   $ (252,000)   $ (130,000)
 
Basic & diluted loss per common share $ (0.00)   $ (0.00)   $ (0.01)   $ (0.01)
 
Weighted average shares outstanding – basic and diluted  

29,297,333

   

27,284,308

   

29,129,168

   

27,056,216

 

(Condensed Balance Sheets follow)

 
American Bio Medica Corporation
Condensed Balance Sheets
    September 30,   December 31,
2017

(unaudited)

2016
ASSETS
Current Assets
Cash and cash equivalents $ 150,000 $ 156,000
Accounts receivable, net of allowance for doubtful accounts of $51,000 at September 30, 2017 and $49,000 at December 31, 2016

521,000

556,000

Inventory, net of allowance of $453,000 at September 30, 2017 and $449,000 at December 31, 2016

1,462,000

1,582,000

Prepaid expenses and other current assets 49,000 92,000
Total current assets 2,182,000 2,386,000
Property, plant and equipment, net 810,000 824,000
Patents, net 107,000 93,000
Other assets 21,000 21,000
Deferred finance costs – line of credit, net 23,000 47,000
Total assets $ 3,143,000 $ 3,371,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 306,000 $ 304,000
Accrued expenses and other current liabilities 287,000 276,000
Wages payable 257,000 299,000
Line of credit 580,000 639,000
Current portion of long-term debt 87,000 75,000
Total current liabilities 1,517,000 1,593,000
Long-term debt, net of current portion and deferred finance costs 748,000 753,000
Other long-term liabilities 22,000 0
Total liabilities 2,287,000 2,346,000
COMMITMENTS AND CONTINGENCIES
Stockholders’ Equity:
Common stock 293,000 288,000
Additional paid-in capital 21,115,000 21,037,000
Accumulated deficit (20,552000) (20,300,000)
Total stockholders’ equity 856,000 1,025,000
Total liabilities and stockholders’ equity $ 3,143,000 $ 3,371,000
 

Contacts

ABMC
Melissa A. Waterhouse, 800-227-1243, Ext 107
Chief Executive Officer

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