Attached files
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| 8-K - CURRENT REPORT - AMERICAN BIO MEDICA CORP | abmc_8k.htm |
Exhibit
99.1
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Contacts:
Melissa A.
Waterhouse
Chief Executive
Officer
(800) 227-1243, Ext
107
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FOR IMMEDIATE RELEASE:
ABMC REPORTS SECOND QUARTER 2021 RESULTS
Kinderhook, N.Y., August 18, 2021 – American Bio
Medica Corporation (OTCQB: ABMC) today announced financial results
for the three and six months ended June 30, 2021.
Chief
Executive Officer Melissa A. Waterhouse stated, “Our drugs
testing markets continue to return to some sense of normalcy;
however, some markets are still requiring a lower amount of tests
due to reduced workforce, telecommuting and reduced budgets as
customers are still using their financial resources to address
Covid-19 issues. Drug test sales decreased $112,000 in the second
quarter of 2021 when compared to the second quarter of 2020.
However, at June 30, 2021, we had open sales orders for ABMC drug
tests in the amount of $128,000; most of which were orders received
in the second quarter. This increase in backorders is due to
unexpected longer lead times for certain raw materials;
particularly with materials that are also used in Covid-19 lateral
flow tests and plastic components. We have now adjusted our
purchasing schedules to account for these longer lead times. The
vast majority of the decline in the year over year sales in the
second quarter 2021 was due to lower Covid-19 test sales; however,
we are starting to see some positive impact from the new Covid-19
tests we started distributing in late April/early May 2021.
It’s too early to know the level of impact the new offerings
could have on sales; however, we don’t expect to see the same
extraordinary level of sales we recorded in
2020.”
“Contract
manufacturing sales increased for the second consecutive quarter in
2021, when compared to the same quarters in 2020 as we start to see
the need for drug tests and other diagnostic tests rebound from
2020 levels. We shipped products (from the open purchase orders
from 2020) in the second quarter of 2021 and we are shipping more
products against those purchase orders in the third quarter of
2021. The new order, received in April 2021, is also expected to
ship in the third quarter of 2021. In addition, in the third
quarter we are starting to see increased orders of the RSV test
that is private labeled for a large diagnostic company.
Unfortunately, the pilot we started in the second quarter did not
result in a new account as the entity elected to make the
investment to increase their own manufacturing capabilities. We are
still focusing our efforts to obtain more contract manufacturing
accounts. ”
Waterhouse
concluded, “Operating expenses declined 32.9% in the second
quarter of 2021 compared to the second quarter of 2020 as we
continue to manage expenses so they remain in line with sales
levels. We also applied for forgiveness of the $332,000 PPP loan we
received in 2020. To date, the SBA has reviewed our application for
forgiveness and set the amount of forgiveness to the full amount of
the loan. Given this, we expect to receive notification shortly
from the SBA that our loan is forgiven.”
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. ABMC also provides contract manufacturing
services related to certain infectious diseases; such as malaria
and RSV and, distributes rapid test to detect Covid-19 antibodies,
a RT-PCR test to detect Covid-19 and a rapid Covid-19 antigen
test.
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, RT-PCR test and rapid antigen
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, 2020, 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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For the six
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For the six
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months ended
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months ended
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months ended
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months ended
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June 30, 2021
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June 30, 2020
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June 30, 2021
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June 30, 2020
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Net
sales
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$529,000
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$1,758,000
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$1,095,000
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$2,486,000
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Cost
of goods sold
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393,000
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1,176,000
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854,000
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1,714,000
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Gross
profit
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136,000
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582,000
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241,000
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772,000
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Operating
expenses:
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|
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Research
and development
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21,000
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19,000
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41,000
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52,000
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Selling
and marketing
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72,000
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230,000
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155,000
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319,000
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General
and administrative
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287,000
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317,000
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798,000
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656,000
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Total
operating expenses
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380,000
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566,000
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994,000
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1,027,000
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Operating
(loss) / income
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(244,000)
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16,000
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(753,000)
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(255,000)
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Other
income / (expense)
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1,000
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(37,000)
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(46,000)
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(91,000)
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Net
loss before tax
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(243,000)
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(21,000)
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(799,000)
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(346,000)
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Income
tax expense
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(2,000)
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0
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(2,000)
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0
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Net
loss
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$(245,000)
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$(21,000)
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$(801,000)
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$(346,000)
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Basic
& diluted loss per common share
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$(0.01)
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$(0.00)
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$(0.02)
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$(0.01)
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Weighted
average shares outstanding – basic and diluted
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40,950,729
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35,905,948
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39,910,658
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34,937,236
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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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June 30,
2021
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December 31,
2020
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ASSETS
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(unaudited)
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Current
Assets
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Cash
and cash equivalents
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$30,000
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$98,000
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Accounts
receivable, net of allowance for doubtful accounts of $5,000 at
June 30, 2021 and $22,000 December 31, 2020
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387,000
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407,000
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Inventory,
net of allowance of $321,000 at June 30, 2021 and $279,000 at
December 31, 2020
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475,000
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536,000
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Prepaid
expenses and other current assets
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25,000
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104,000
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Right
of Use Asset – Operating Leases
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36,000
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35,000
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Total
current assets
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953,000
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1,180,000
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Property,
plant and equipment, net
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544,000
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576,000
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Patents,
net
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104,000
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108,000
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Right
of Use Asset – Operating Leases
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22,000
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41,000
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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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$1,644,000
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$1,926,000
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LIABILITIES
AND STOCKHOLDERS’ EQUITY
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Current
liabilities
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Accounts
payable
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$593,000
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$577,000
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Accrued
expenses and other current liabilities
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487,000
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620,000
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Right
of Use Liability – Operating Leases
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26,000
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33,000
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Wages
payable
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92,000
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107,000
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Line
of credit
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287,000
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277,000
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PPP
Loan
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332,000
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332,000
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Current portion of long-term debt, net of deferred finance
costs
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1,290,000
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75,000
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Total
current liabilities
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3,107,000
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2,021,000
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Long-term
debt/other liabilities, net of current portion & deferred
finance costs
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0
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1,120,000
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Right
of Use Liability – Operating Leases
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30,000
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41,000
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Total
liabilities
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3,137,000
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3,182,000
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COMMITMENTS
AND CONTINGENCIES
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Stockholders’
Deficit:
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Common
stock
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426,000
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377,000
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Additional
paid-in capital
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22,232,000
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21,717,000
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Accumulated
deficit
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(24,151,000)
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(23,350,000)
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Total
stockholders’ deficit
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(1,493,000)
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(1,256,000)
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Total
liabilities and stockholders’ deficit
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$1,644,000
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$1,926,000
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