Attached files
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| 8-K - CURRENT REPORT - AMERICAN BIO MEDICA CORP | abmc_8k.htm |
Exhibit 99.1
Contacts:
Melissa
A. Waterhouse
Chief
Executive Officer
(800)
227-1243, Ext 107
FOR IMMEDIATE RELEASE:
ABMC REPORTS FIRST QUARTER 2020 RESULTS
Kinderhook, N.Y., July 31 2020 – American Bio Medica
Corporation (OTCPK: 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)
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AMERICAN BIO MEDICA CORPORATION
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Condensed Statements of Operations
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(unaudited)
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For the
three
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For the
three
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months
ended
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months
ended
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March 31,
2020
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March 31,
2019
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Net
sales
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$729,000
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$923,000
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Cost
of goods sold
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539,000
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617,000
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Gross
profit
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190,000
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306,000
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Operating
expenses:
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Research
and development
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34,000
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19,000
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Selling
and marketing
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88,000
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113,000
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General
and administrative
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339,000
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348,000
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Total
operating expenses
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461,000
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480,000
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Operating
loss
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(271,000)
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(174,000)
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Other
expense
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(54,000)
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(66,000)
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Net
loss before tax
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(325,000)
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(240,000)
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Income
tax expense
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0
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0
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Net
loss
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$(325,000)
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$(240,000)
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Basic
& diluted (loss) / income per common share
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$(0.01)
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$(0.01)
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Weighted
average shares outstanding – basic
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33,968,523
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32,367,963
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Weighted
average shares outstanding – diluted
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33,968,523
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32,367,963
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(Condensed Balance Sheets follow)
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American Bio Medica Corporation
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Condensed Balance Sheets
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March
31,
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December
31,
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2020
(unaudited)
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2019
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ASSETS
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Current
Assets
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Cash
and cash equivalents
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$581,000
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$4,000
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Accounts
receivable, net of allowance for doubtful accounts of $34,000 at
March 31, 2020 and December 31, 2019
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396,000
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370,000
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Inventory,
net of allowance of $304,000 at March 31, 2020 and $291,000 at
December 31, 2019
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723,000
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810,000
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Prepaid
expenses and other current assets
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262,000
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6,000
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Right
of Use Asset – Operating Leases
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37,000
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34,000
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Total
current assets
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1,999,000
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1,224,000
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Property,
plant and equipment, net
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626,000
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644,000
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Patents,
net
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114,000
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116,000
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Right
of Use Asset – Operating Leases
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64,000
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73,000
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Other
assets
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21,000
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21,000
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Total
assets
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$2,824,000
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$2,078,000
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LIABILITIES
AND STOCKHOLDERS’ EQUITY
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Current
liabilities
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Accounts
payable
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$695,000
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$652,000
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Accrued
expenses and other current liabilities
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1,334,000
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543,000
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Right
of Use Liability – Operating Leases
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34,000
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34,000
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Wages
payable
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139,000
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104,000
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Line
of credit
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322,000
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337,000
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Current portion of long-term debt
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1,124,000
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17,000
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Total
current liabilities
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3,648,000
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1,687,000
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Long-term
debt/other liabilities, net of deferred finance costs
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0
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1,108,000
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Right
of Use Liability – Operating Leases
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64,000
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73,000
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Total
liabilities
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3,712,000
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2,868,000
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COMMITMENTS
AND CONTINGENCIES
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Stockholders’
Deficit:
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Common
stock
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358,000
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327,000
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Additional
paid-in capital
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21,632,000
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21,437,000
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Accumulated
deficit
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(22,878,000)
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(22,554,000)
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Total
stockholders’ deficit
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(888,000)
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(790,000)
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Total
liabilities and stockholders’ deficit
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$2,824,000
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$2,078,000
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