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ABMC Reports First Quarter 2018 Results

ACCESSWIRE

By American Bio Medica Corporation

KINDERHOOK, NY / ACCESSWIRE / May 14, 2018 / American Bio Medica Corporation (OTC PINK: ABMC) today announced financial results for the three months ended March 31, 2018.

Chief Executive Officer Melissa A. Waterhouse stated, “We are continuing to see a positive impact on sales as a result of distribution relationships initiated in mid 2017 and our efforts in the clinical market, however, these improvements are offset by decreased sales as a result of the loss of an account in the fourth quarter 2017. Looking ahead, we are re-focusing our efforts related to oral fluid drug testing primarily as a result of changes in our regulatory environment and the distribution options available for alternative oral fluid products. And finally, we are currently discussing a number of potential contract manufacturing opportunities with new customers.”

Waterhouse continued, “We continued to maintain reasonable operational expenses in the first quarter 2018. G&A expense did increase (as a result of litigation related to the previously mentioned lost account), however selling and marketing expense decreased (even with increased efforts in the clinical market), and R&D expense decreased due to less expenses associated with FDA compliance.”

Financial Highlights

  • Net sales in the first quarter 2018 were $1,041,000, compared to net sales of $1,316,000 in the first quarter of 2017, a decrease of $275,000, or 20.9%.
  • Operating loss was $206,000 in the first quarter 2018, compared to an operating loss of $67,000 in the first quarter 2017. Along with decreased sales, gross profit decreased to 35.7% of net sales in the first quarter 2018 from 42.9% of net sales in the first quarter 2017. This was due to increased manufacturing inefficiencies and decreased pricing to customers. An increase in revenue would enable the Company to decrease inefficiencies and achieve higher gross profit margins, even with the decreased pricing to customers.
  • Net loss was $267,000 in the first quarter 2018, compared to a net loss of $132,000 in the first quarter 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, 2017, 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
months ended
months ended
March 31, 2018
March 31, 2017
Net sales
$ 1,041,000 $ 1,316,000
Cost of goods sold
669,000 751,000
Gross profit
372,000 565,000
Operating expenses:
Research and development
25,000 46,000
Selling and marketing
161,000 196,000
General and administrative
392,000 390,000
Total operating expenses
578,000 632,000
Operating loss
(206,000 ) (67,000 )
Other expense
(61,000 ) (65,000 )
Net loss before tax
(267,000 ) (132,000 )
Income tax expense
0 0
Net loss
$ (267,000 ) $ (132,000 )
Basic & diluted (loss) / income per common share
$ (0.01 ) $ (0.00 )
Weighted average shares outstanding – basic
29,882,770 28,842,788
Weighted average shares outstanding – diluted
29,822,770 28,842,788

American Bio Medica Corporation
Condensed Balance Sheets

March 31,
December 31,
2018
(unaudited)
2017
ASSETS
Current Assets
Cash and cash equivalents
$ 92,000 $ 36,000
Accounts receivable, net of allowance for doubtful accounts of $51,000 at March 31, 2018 and $52,000 at December 31, 2017
421,000 348,000
Inventory, net of allowance of $521,000 at March 31, 2018 and $500,000 at December 31, 2017
1,388,000 1,473,000
Prepaid expenses and other current assets
61,000 97,000
Total current assets
1,962,000 1,954,000
Property, plant and equipment, net
774,000 792,000
Patents, net
113,000 109,000
Other assets
21,000 21,000
Deferred finance costs – line of credit, net
7,000 15,000
Total assets
$ 2,877,000 $ 2,891,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable
$ 430,000 $ 374,000
Accrued expenses and other current liabilities
354,000 311,000
Wages payable
266,000 259,000
Line of credit
492,000 446,000
Current portion of long-term debt
237,000 87,000
Total current liabilities
1,779,000 1,477,000
Other liabilities/debt
16,000 19,000
Long-term debt, net of current portion and deferred finance costs
704,000 772,000
Total liabilities
2,499,000 2,268,000
COMMITMENTS AND CONTINGENCIES
Stockholders’ Equity:
Common stock
299,000 298,000
Additional paid-in capital
21,191,000 21,170,000
Accumulated deficit
(21,112,000 ) (20,845,000 )
Total stockholders’ equity
378,000 623,000
Total liabilities and stockholders’ equity
$ 2,877,000 $ 2,891,000

Contacts:

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

SOURCE: American Bio Medica Corporation

ReleaseID: 499741