ABMC Reports Second Quarter 2017 Results

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

Chief Executive Officer Melissa A. Waterhouse stated, “Sales in the six months ended June 30, 2017 have been impacted by an anticipated decease in contract manufacturing sales with one customer. In addition, the loss of a government account in late 2016 has impacted 2017 sales. Sales to new accounts and from new products we are offering via distribution relationships have partially offset these losses. ”

Waterhouse continued, “G&A expense did increase in the second quarter of 2017 primarily as a result of increased legal fees associated with litigation filed against Premier Biotech, Inc. and Peckham Vocational Industries, Inc. (among others) in early 2017. However, savings in other areas offset this increase resulting in decreased operational expenses for the second quarter of 2017 when compared to the second quarter of 2016. Going forward, our ability to enter new markets are dependent on regulatory matters and, we are hopeful those matters will be successfully addressed in the near future.”

Financial Highlights

  • Net sales in the second quarter of 2017 were $1,306,000, compared to $1,505,000 in the second quarter 2016, a decrease of 13.2%. Net sales in the six months ended June 30, 2017 were $2,621,000, compared to $2,975,000 in the six months ended June 30, 2016, a decrease of 11.9%.
  • Operating loss $21,000 in the second quarter of 2017, compared to an operating income of $21,000 in the second quarter of 2016. Operating loss was $88,000 in the six months ended June 30, 2017, compared to an operating loss of $59,000 in the six months ended June 30, 2016.
  • Net loss was $71,000 in the second quarter of 2017, compared to net loss of $44,000 in the second quarter of 2016. Net loss was $203,000 in the six months ended June 30, 2017, compared to net loss of $43,000 in the six months ended June 30, 2016. The six months ended June 30, 2016 included other income of $150,000 primarily due to the receipt of a tech transfer payment, which did not reoccur 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 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 six   For the six
months ended months ended months ended months ended
  June 30, 2017     June 30, 2016     June 30, 2017     June 30, 2016
 
Net sales $ 1,306,000 $ 1,505,000 $ 2,621,000 $ 2,975,000
Cost of goods sold   741,000       796,000       1,491,000       1,636,000  
Gross profit   565,000       709,000       1,130,000       1,339,000  
 
Operating expenses:
Research and development 22,000 55,000 68,000 109,000
Selling and marketing 176,000 282,000 372,000 551,000
General and administrative   388,000       351,000       778,000       738,000  
Total operating expenses   586,000       688,000       1,218,000       1,398,000  
 
Operating (loss) / income   (21,000 )     21,000       (88,000 )     (59,000 )
 
Other (expense)/ income   (49,000 )     (65,000 )     (114,000 )     17,000  
 
Net loss before tax (70,000 ) (44,000 ) (202,000 ) (42,000 )
 
Income tax expense   (1,000 )     0       (1,000 )     (1,000 )
 
Net loss $ (71,000 )   $ (44,000 )   $ (203,000 )   $ (43,000 )
 
Basic & diluted loss per common share $ (0.00 )   $ (0.00 )   $ (0.01 )   $ (0.00 )
 
Weighted average shares outstanding – basic and diluted  

29,242,388

     

27,271,408

     

29,043,692

     

26,940,917

 
 

(Condensed Balance Sheets follow)

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

2017
(unaudited)

2016

ASSETS
Current Assets
Cash and cash equivalents $ 138,000 $ 156,000
Accounts receivable, net of allowance for doubtful accounts of $49,000 at June 30, 2017 and December 31, 2016

482,000

556,000

Inventory, net of allowance of $468,000 at June 30, 2017 and $449,000 at December 31, 2016

1,450,000

1,582,000

Prepaid expenses and other current assets 88,000   92,000  
Total current assets 2,158,000 2,386,000
Property, plant and equipment, net 823,000 824,000
Patents, net 102,000 93,000
Other assets 21,000 21,000
Deferred finance costs – line of credit, net 31,000   47,000  
Total assets $ 3,135,000   $ 3,371,000  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 278,000 $ 304,000
Accrued expenses and other current liabilities 263,000 276,000
Wages payable 268,000 299,000
Line of credit 594,000 639,000
Current portion of long-term debt 87,000   75,000  
Total current liabilities 1,490,000 1,593,000
Long-term debt, net of current portion and deferred finance costs 725,000 753,000
Other long-term liabilities 25,000   0  
Total liabilities 2,240,000 2,346,000
COMMITMENTS AND CONTINGENCIES
Stockholders’ Equity:
Common stock 293,000 288,000
Additional paid-in capital 21,105,000 21,037,000
Accumulated deficit (20,503,000 ) (20,300,000 )
Total stockholders’ equity 895,000   1,025,000  
Total liabilities and stockholders’ equity $ 3,135,000   $ 3,371,000  

Contacts

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

Recent Stories

  • ABMC Reports Third Quarter 2017 Results
    November 14, 2017
    KINDERHOOK, N.Y.--(EON: Enhanced Online News)--American Bio Medica Corporation (OTCPK: ABMC) today announced financial results for the three and nine months ended September 30, 2017. Chief Executiv... more »
  • FDA Grants OTC Clearance for ABMC’s Rapid TOX CUP® II
    August 16, 2017
    KINDERHOOK, N.Y.--(EON: Enhanced Online News)--American Bio Medica Corporation (OTCPK:ABMC) announced today that the U.S. Food and Drug Administration (FDA) has granted 510(k) marketing clearance f... more »
  • ABMC Reports First Quarter 2017 Results
    May 15, 2017
    KINDERHOOK, N.Y.--(EON: Enhanced Online News)--American Bio Medica Corporation (OTCPK: ABMC) today announced financial results for the three months ended March 31, 2017. Chief Executive Officer Mel... more »
RSS feed for American Bio Medica Corporation

American Bio Medica Corporation