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| 8-K - CURRENT REPORT - AMERICAN BIO MEDICA CORP | abmc_8k.htm |
EXHIBIT
99.1
FOR IMMEDIATE RELEASE:
ABMC REPORTS FOURTH QUARTER AND YEAR END 2019 RESULTS
Kinderhook, N.Y., June 26, 2019 – American Bio
Medica Corporation (OTCPK: ABMC) today announced financial results
for the fourth quarter and year ended December 31,
2019.
Chief
Executive Officer, Melissa A. Waterhouse stated, “While sales
did not increase in Q4 2019 (as they did in Q3 2019), they were
relatively flat. In 2019, sales in our core markets declined, some
of which was due to timing of shipments to customers at the end of
the year. These declines were partially offset by increased
contract manufacturing sales (due to two new customers in 2019)
along with increased international sales. Operational expenses
declined due to continued efforts to control costs wherever
possible.”
Waterhouse
continued, “Our drug testing business has been negatively
impacted by the Covid-19 pandemic in the first half of 2020. The
core markets for our drug tests are employment, clinical and
government; and each of these sectors has been negatively impacted
by the pandemic in various ways. On March 23, 2020, we announced we
are distributing a rapid antibody test for Covid-19 and on May 29,
2020 this COVID-19
test was authorized by the United States Food and Drug
Administration (FDA) under an Emergency Use Authorization (EUA) for
use by authorized laboratories. Starting in late March 2020, we
conducted pre-sales of the product and began shipping orders to
customers in May 2020. Sales of the Rapid Covid-19 test have offset
the negative impact to our drug testing business. As of the date of
this release, we have recorded revenues of just over $1,000,000
which resulted in approximately $430,000 in profit to ABMC after
expenses and commissions.”
Financial Highlights
●
Net sales in the
fourth quarter of 2019 were $880,000, compared to $884,000 in the
fourth quarter of 2018, or relatively flat. Net sales in 2019 were
$3,655,000, compared to net sales of $3,872,000 in 2018, a decrease
of 5.6%.
●
Operating loss was
$183,000 in the fourth quarter of 2019, compared to an operating
loss of $348,000 in the fourth quarter of 2018. Operating loss in
2019 was $593,000 compared to an operating loss of $762,000 in
2018.
●
Net loss was
$248,000 in the fourth quarter of 2019, compared to a net loss of
$412,000 in the fourth quarter of 2018. Net loss was $681,000 in
2019, compared to a net loss of $1,028,000 in 2018.
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, 2018, 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)
1
American Bio Medica Corporation
Statements of Operation
|
|
Three Months
Ended
|
Year
Ended
|
||
|
|
December
31,
|
December
31,
|
||
|
|
2019
|
2018
|
2019
|
2018
|
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|
|
|
|
|
|
|
|
Net
sales
|
$880,000
|
$884,000
|
$3,655,000
|
$3,872,000
|
|
Cost of goods
sold
|
666,000
|
768,000
|
2,471,000
|
2,584,000
|
|
Gross
profit
|
214,000
|
116,000
|
1,184,000
|
1,288,000
|
|
Operating
expenses:
|
|
|
|
|
|
Research
and development
|
20,000
|
29,000
|
82,000
|
93,000
|
|
Selling
and marketing
|
109,000
|
111,000
|
459,000
|
545,000
|
|
General
and administrative
|
268,000
|
324,000
|
1,236,000
|
1,412,000
|
|
Total
operating expenses
|
397,000
|
464,000
|
1,777,000
|
2,050,000
|
|
|
|
|
|
|
|
Operating
loss
|
(183,000)
|
(348,000)
|
(593,000)
|
(762,000)
|
|
|
|
|
|
|
|
Other
income/(expense) - net
|
(65,000)
|
(64,000)
|
(93,000)
|
(264,000)
|
|
|
|
|
|
|
|
Net loss before
tax
|
(248,000)
|
(412,000)
|
(686,000)
|
(1,026,000)
|
|
|
|
|
|
|
|
Income tax
expense
|
8,000
|
(1,000)
|
5,000
|
(2,000)
|
|
|
|
|
|
|
|
Net
loss
|
(240,000)
|
(413,000)
|
(681,000)
|
(1,028,000)
|
|
|
|
|
|
|
|
Basic & diluted
loss per common share
|
$(0.01)
|
$(0.01)
|
$(0.02)
|
$(0.03)
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
32,667,757
|
29,211,454
|
32,526,669
|
30,115,063
|
|
Diluted weighted
average shares outstanding
|
32,667,757
|
29,211,454
|
32,526,669
|
30,115,063
|
(Balance Sheets follow)
2
American
Bio Medica Corporation
Balance
Sheets
|
|
December
31,
2019
(unaudited)
|
December
31,
2018
|
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$4,000
|
$113,000
|
|
Accounts
receivable, net of allowance for doubtful accounts of $34,000 at
December 31, 2019 and $36,000 at December 31, 2018
|
370,000
|
452,000
|
|
Inventory, net of
allowance of $291,000 at December 31, 2019 and $268,000 at December
31, 2018
|
810,000
|
1,019,000
|
|
Prepaid expenses
and other current assets
|
6,000
|
29,000
|
|
Right of Use Asset
– Operating Leases
|
37,000
|
0
|
|
Total current
assets
|
1,227,000
|
1,613,000
|
|
Property, plant and
equipment, net
|
644,000
|
718,000
|
|
Patents,
net
|
116,000
|
123,000
|
|
Right of Use Asset
– Operating Leases
|
73,000
|
0
|
|
Other
assets
|
21,000
|
21,000
|
|
Total
assets
|
$2,078,000
|
$2,475,000
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$652,000
|
$359,000
|
|
Accrued expenses
and other current liabilities
|
543,000
|
449,000
|
|
Right of Use
Liability – Operating Leases
|
34,000
|
0
|
|
Wages
payable
|
104,000
|
278,000
|
|
Line of
credit
|
337,000
|
502,000
|
|
Current portion of
long-term debt, net of deferred finance costs
|
17,000
|
237,000
|
|
Total current
liabilities
|
1,687,000
|
1,825,000
|
|
Long
term debt, net of current portion & deferred finance
costs
|
1,108,000
|
796,000
|
|
Right
of Use Liability – Operating Leases
|
73,000
|
0
|
|
Total
liabilities
|
2,868,000
|
2,621,000
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
Common
stock
|
327,000
|
323,000
|
|
Additional paid-in
capital
|
21,437,000
|
21,404,000
|
|
Accumulated
deficit
|
(22,554,000)
|
(21,873,000)
|
|
Total
stockholders’ equity
|
(790,000)
|
(146,000)
|
|
Total liabilities
and stockholders' equity
|
$2,078,000
|
$2,475,000
|
#####
3