ABMC Reports Second Quarter 2015 Results

KINDERHOOK, N.Y.--()--American Bio Medica Corporation (OTCPK:ABMC) today announced financial results for the three and six months ended June 30, 2015.

Chief Executive Officer Melissa A. Waterhouse stated, “Sales in the latter part of the second quarter of 2015 were up from the prior year and that enabled us to report a minimal decrease in sales for the quarter when comparing year over year and increased sales when compared to the first quarter of 2015. Increased contract manufacturing, international and national account sales nearly offset the decline in government sales (due to the loss of state contracts in 2014).”

Waterhouse continued, “From an expense standpoint, as expected we continued to see increased selling and marketing expense in the second quarter as a result of increased efforts to market our products. General and administrative expense in the three and six months ended June 30, 2015 increased as a result of increased debt issuance costs and deferred finance costs. This increase stemmed from accelerated amortization of non-cash costs associated with the Imperium line of credit as well as costs associated with the new line of credit. Since the Imperium line of credit was terminated early, we were required to record all of the remaining debt expense (approximately $69,000) in the three months ended June 30, 2015. The early move from Imperium to Crestmark Bank lowers our interest rate on our revolver and provides us with more access to capital. In other issues, our FDA marketing application is still in process and we are on track to release a new assay in 2015.”

Financial Highlights

  • Net sales in the second quarter of 2015 were $1,768,000 compared to $1,811,000 in the first quarter of 2015, a decrease of 2.4%. Net sales in the six months ended June 30, 2015 were $3,270,000, compared to net sales of $3,854,000 in the six months ended June 30, 2014, a decrease of 15.2%.
  • Operating loss was $31,000 in the second quarter of 2015 compared to an operating profit of $23,000 in the second quarter of 2015. Operating loss was $82,000 in the six months ended June 30, 2015, compared to operating income of $85,000 in the six months ended June 30, 2014.
  • Net loss was $83,000 in the second quarter of 2015 compared to a net loss of $41,000 in the second quarter of 2015. Net loss was $128,00 in the six months ended June 30, 2015, compared to a net loss of $32,000 in the six months ended June 30, 2014.

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 OralStat product, 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, 2014, 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.

 
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, 2015       June 30, 2014       June 30, 2015       June 30, 2014
 
Net sales $ 1,768,000 $ 1,811,000 $ 3,270,000 $ 3,854,000
Cost of goods sold   919,000         1,020,000         1,721,000         2,186,000  
Gross profit   849,000         791,000         1,549,000         1,668,000  
 
Operating expenses:
Research and development 51,000 45,000 80,000 91,000
Selling and marketing 309,000 267,000 608,000 559,000
General and administrative   520,000         456,000         943,000         933,000  
Total operating expenses   880,000         768,000         1,631,000         1,583,000  
 
Operating income / (loss)   (31,000 )       23,000         (82,000 )       85,000  
 
Other expense   (52,000 )       (64,000 )       (46,000 )       (116,000 )
 
Net loss before tax (83,000 ) (41,000 ) (128,000 ) (31,000 )
 
Income tax expense   0         0         0         (1,000 )
 
Net loss $ (83,000 )     $ (41,000 )     $ (128,000 )     $ (32,000 )
 
Basic & diluted loss per common share $ (0.00 )     $ (0.00 )     $ (0.01 )     $ (0.00 )
 

Weighted average shares outstanding –
basic and diluted

 

26,032,930

       

23,168,155

       

26,032,930

       

23,168,155

 
 
 
American Bio Medica Corporation
Condensed Balance Sheets
 
  June 30, December 31,
  2015

(unaudited)

  2014
ASSETS
Current Assets
Cash and cash equivalents $ 433,000 $ 352,000

Accounts receivable, net of allowance for doubtful accounts of
$47,000 at June 30, 2015 and $47,000 at December 31, 2014

859,000

814,000

Inventory, net of allowance of $366,000 at June 30, 2015 and
$324,000 at December 31, 2014

1,824,000

1,722,000

Current portion of deferred financing 0 43,000
Prepaid expenses and other current assets   96,000     85,000  
Total current assets 3,212,000 3,016,000
Property, plant and equipment, net 942,000 983,000
Patents 68,000 65,000
Other assets 14,000 14,000
Deferred finance costs   193,000     0  
Total assets $ 4,429,000   $ 4,078,000  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable 508,000 $ 410,000
Accrued expenses and other current liabilities 190,000 192,000
Wages payable 318,000 264,000
Line of credit, net 1,072,000 979,000
Current portion of long-term debt, net   75,000     858,000  
Total current liabilities 2,163,000 2,703,000
Other liabilities 68,000 68,000
Related party note 124,000 124,000
Long-term debt   923,000     213,000  
Total liabilities 3,278,000 3,108,000
COMMITMENTS AND CONTINGENCIES
Stockholders’ Equity:
Common stock 260,000 236,000
Additional paid-in capital 20,641,000 20,356,000
Accumulated deficit   (19,750,000 )   (19,622,000 )
Total stockholders’ equity   1,151,000     970,000  
Total liabilities and stockholders’ equity $ 4,429,000   $ 4,078,000  

Contacts

American Bio Medica Corporation
Melissa A. Waterhouse
Chief Executive Officer
(800) 227-1243, Ext 107

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