ABMC Reports First Quarter 2020 Results

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KINDERHOOK, NY / ACCESSWIRE / July 31, 2020 / American Bio Medica Corporation (OTC PINK:ABMC) today announced financial results for the three months ended March 31, 2020.

Chief Executive Officer Melissa A. Waterhouse stated, "Our drug testing business has been negatively impacted by the Covid-19 pandemic. Here in the third quarter 2020, we are starting to see some improvement in drug test sales, however, as the pandemic continues, it is difficult to know when we will start to see a year-over-year increase in drug testing sales."

Waterhouse continued, "We started generating sales of the rapid antibody test in May 2020. Since our last press release update on June 26, 2020, we have continued to sell the rapid Covid-19 antibody tests. Although market demand for antibody testing can fluctuate as infection surges occur (due to the higher demand for diagnostic testing), we are still recording sales. These sales are for now offsetting our drug testing declines. We believe there is an opportunity for Covid-19-related sales to contribute significantly to our 2020 financial results."

Financial Highlights

  • Net sales in the first quarter 2020 were $729,000, compared to net sales of $923,000 in the first quarter 2019, a decrease of $194,000, or 21.0%.
  • Operating loss was $271,000 in the first quarter 2020, compared to an operating loss of $174,000 in the first quarter 2019.
  • Net loss was $325,000 in the first quarter 2020, or $(0.01) per share, compared to a net loss of $240,000, or $(0.01), in the first quarter 2019.

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, 2019, 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
months ended months ended
March 31, 2020 March 31, 2019
Net sales
$729,000 $923,000
Cost of goods sold
539,000 617,000
Gross profit
190,000 306,000
Operating expenses:
Research and development
34,000 19,000
Selling and marketing
88,000 113,000
General and administrative
339,000 348,000
Total operating expenses
461,000 480,000
Operating loss
(271,000) (174,000)
Other expense
(54,000) (66,000)
Net loss before tax
(325,000) (240,000)
Income tax expense
0 0
Net loss
$(325,000) $(240,000)
Basic & diluted (loss) / income per common share
$(0.01) $(0.01)
Weighted average shares outstanding - basic
33,968,523 32,367,963
Weighted average shares outstanding - diluted
33,968,523 32,367,963


(Condensed Balance Sheets follow)

American Bio Medica Corporation
Condensed Balance Sheets

March 31, December 31,
2020
(unaudited)
2019
ASSETS
Current Assets
Cash and cash equivalents
$581,000 $4,000
Accounts receivable, net of allowance for doubtful accounts of $34,000 at March 31, 2020 and December 31, 2019
396,000 370,000
Inventory, net of allowance of $304,000 at March 31, 2020 and $291,000 at December 31, 2019
723,000 810,000
Prepaid expenses and other current assets
262,000 6,000
Right of Use Asset - Operating Leases
37,000 34,000
Total current assets
1,999,000 1,224,000
Property, plant and equipment, net
626,000 644,000
Patents, net
114,000 116,000
Right of Use Asset - Operating Leases
64,000 73,000
Other assets
21,000 21,000
Total assets
$2,824,000 $2,078,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
$695,000 $652,000
Accrued expenses and other current liabilities
1,334,000 543,000
Right of Use Liability - Operating Leases
34,000 34,000
Wages payable
139,000 104,000
Line of credit
322,000 337,000
Current portion of long-term debt
1,124,000 17,000
Total current liabilities
3,648,000 1,687,000
Long-term debt/other liabilities, net of deferred finance costs
0 1,108,000
Right of Use Liability - Operating Leases
64,000 73,000
Total liabilities
3,712,000 2,868,000
COMMITMENTS AND CONTINGENCIES
Stockholders' Deficit:
Common stock
358,000 327,000
Additional paid-in capital
21,632,000 21,437,000
Accumulated deficit
(22,878,000) (22,554,000)
Total stockholders' deficit
(888,000) (790,000)
Total liabilities and stockholders' deficit
$2,824,000 $2,078,000


CONTACT:

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

SOURCE: American Bio Medica Corporation



View source version on accesswire.com:
https://www.accesswire.com/599767/ABMC-Reports-First-Quarter-2020-Results

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