8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):  August 8, 2013 (August 8, 2013)

CHEMBIO DIAGNOSTICS, INC.

(Exact name of registrant as specified in its charter)

Nevada	0-30379	88-0425691
(State or other jurisdiction	(Commission File Number)	(IRS Employer
of Incorporation)		Identification Number)
	3661 Horseblock Road
	Medford, NY 11763
	(Address of principal executive offices)
	631-924-1135
	(Registrant's Telephone Number)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 7.01.  REGULATION FD DISCLOSURE.

On August 8, 2013, the Company issued a press release entitled "Chembio Diagnostics Reports Second Quarter 2013 Financial Results".   A copy of the press release is furnished herewith as Exhibit 99.1.

On August 8, 2013, the Company posted a PowerPoint Presentation to their website entitled "Investor Presentation August 2013."  A copy of the presentation is furnished herewith as Exhibit 99.2.

In addition, also on August 8, 2013, the Company posted an Investor Fact Sheet to their website.  A copy of the fact sheet is furnished herewith as Exhibit 99.3

The information in this Item 7.01 of this Form 8-K is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section. The information in this Item 7.01 of this Form 8-K also shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, except to the extent that the Company specifically incorporates it by reference.

ITEM 9.01.FINANCIAL STATEMENTS AND EXHIBITS

Exhibits.

99.1	Press Release entitled "Chembio Diagnostics Reports Second Quarter 2013 Financial Results" dated August 8, 2013
99.2	Presentation entitled "Investor Presentation August 2013" dated August 8, 2013.
99.3	Investor Fact Sheet posted to the company website dated August 8, 2013.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

August 8, 2013Chembio Diagnostics, Inc.

By:    /s/ Lawrence A. Siebert                                      

Lawrence A. Siebert

Chief Executive Officer

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release entitled "Chembio Diagnostics Reports Second Quarter 2013 Financial Results" dated August 8, 2013
99.2	Presentation entitled "Investor Presentation August 2013" dated August 8, 2013.
99.3	Investor Fact Sheet posted to the company website dated August 8, 2013.

EX-99.1

Chembio Diagnostics Reports Second Quarter 2013 Financial Results

Conference Call and Webcast Begins at 10:00 a.m. Eastern Time Today

MEDFORD, N.Y., August 8, 2013 -- Chembio Diagnostics, Inc.(Nasdaq:CEMI), a leader in point-of-care diagnostic tests for infectious diseases, today reported financial results for the three months and six months ended June 30, 2013.

Financial highlights for the 2013 second quarter include the following (all comparisons are with the 2012 second quarter):

• Total revenues of $5.39 million, down 11% compared with $6.08 million

• Product sales of $5.06 million, down 13% compared with $5.81 million

• Operating loss of $(380,000), compared with operating income of $512,000

• Net loss of $(241,000) or $(0.03) per diluted share, compared with net income of $309,000 or $0.04 per diluted share

Financial highlights for the first six months of 2013 include the following (all comparisons are with the first six months of 2012):

• Total revenues of $12.07 million, down 5% compared with $12.74 million

• Product sales of $11.37 million, down 7% compared with $12.17 million

• Operating income of $107,000, compared with $1.23 million

• Net income of $76,000, or $0.01 per diluted share, compared with $742,000, or $0.09 per diluted share

As previously reported in June, we received the single-largest purchase order in our history of $5.3 million for our HIV 1/2 STAT-PAK product, approximately $869,000 was shipped in the second quarter of 2013

Lawrence Siebert, Chembio's Chief Executive Officer, stated, "The operating loss in the second quarter is primarily due to a combination of increased operating expenses, especially an increase in clinical trial expenses related to our DPP® HIV 1/2 Assay CLIA waiver study, and decreased product sales.  We also made the decision to add a significant number of manufacturing personnel in the second quarter in order to meet the larger unit volumes that were anticipated for the balance of this year.  Although this level of cost would not have been justified based on second quarter revenues, it was critical in order to meet current demand based on our backlog and anticipated orders.

"The second quarter was marked by a number of other important milestones both for our lateral flow and our patented Dual Path Platform (DPP^®) products and technologies.   In addition to the $5.3 million order mentioned above, our SURE CHECK® HIV 1/2 product received CE Mark approval from European regulators and is now cleared for commercialization within the European Union (EU).  Chembio is currently working with commercialization partners in Europe for this and our other lateral flow and DPP® assays that are pending CE marking.

"On the DPP HIV 1/2 Assay CLIA waiver study, we are now well on our way to completing the study and submitting our CLIA waiver application to the FDA.  However enrollment is slower than planned, which will delay our FDA CLIA waiver submission from our previous estimate of July to the fourth quarter.  This means that we would not reasonably expect to receive a CLIA waiver decision until early 2014.  Although disappointing, we believe this kind of delay is not unusual in these circumstances.  We are finalizing our launch plan and establishing our direct sales organization and distribution partners in order to be ready to commercialize this and our other products in the U.S. market beginning in 2014.

"Our DPP® tests and technology have received additional validation from leading clinical, government and commercialization groups around the world," continued Siebert.   "During the second quarter, Chembio executed agreements with contractors of the U.S. Centers for Disease Control and another U.S. government agency to work toward the development of multiplex, rapid, point-of-care diagnostic tests for influenza and febrile illnesses.   Also, Mexico's Institute of Epidemiological Diagnosis and Reference (InDRE) evaluated the sensitivity and specificity of the Chembio DPP^® HIV-Syphilis product.  This multiplex test adds the syphilis marker to our recently FDA-approved DPP^® HIV 1/2 test, and should greatly strengthen the prevention of mother-to-child transmission (PMTCT) of syphilis.  In the InDRE's testing, the Chembio DPP^® HIV-Syphilis test performed with 100% sensitivity and 100% specificity on all samples.   We believe this is a powerful validation of the Chembio DPP^® HIV-Syphilis product that will positively influence sales worldwide.   And lastly, during the second quarter Chembio entered into an international assembly and distribution agreement for the company's DPP^® products in Brazil with Labtest Diagnostica SA (Labtest), a leading diagnostics manufacturer and marketing organization.  This agreement with Labtest represents a second distribution arm for Chembio's DPP® products in the sizable Brazilian point-of-care diagnostic market.  We are pleased to be working with them in commercializing our technology in this important region.

"We look forward to an exciting period ahead for Chembio.  As we continue to serve and expand our global customer base, we are moving ever closer to entering the U.S. market with the first FDA-approved, DPP® point-of-care product, helping to save and improve lives."

Second Quarter Results

Total revenues for the second quarter of 2013 of $5.39 million were down 11% compared with total revenues of $6.08 million in the prior-year period.  Product sales in the 2013 second quarter of $5.06 million were down 13% compared with product sales of $5.81 in the prior-year period, primarily due to declines in DPP® product sales in Brazil to FIOCRUZ, partially offset by an increase in HIV lateral flow sales.   Research and development ("R&D"), milestone, grant and royalty revenues for the three months ended June 30, 2013 increased to $332,000 from $273,000 in the prior-year period.

Gross margin for the 2013 second quarter decreased 11% to $2.28 million compared with $2.57 million for the prior-year period, due primarily to the lower DPP® sales and a product mix resulting in a higher cost of products sold.  Product gross margin for the second quarter of 2013 decreased 15% to $1.95 million, from $2.30 million in the prior-year period.

R&D expenses in the second quarter of 2013 were $1.50 million, compared with $.98 million in the prior-year period.  The 2013 second quarter included $422,000 of clinical trial expenses related to our DPP® HIV 1/2 Assay CLIA waiver study, compared with $72,000 in the prior-year period.

Selling, general and administrative expenses in the second quarter of 2013 increased to $1.16 million from $1.08 million in the prior-year period, largely due to changes in the allowance for doubtful accounts in 2012.

Operating loss for the second quarter of 2013 was ($380,000), compared with operating income of $512,000 for the prior-year period.  

Net loss for the second quarter of 2013 was ($241,000), or $0.03 per diluted share, compared with net income of $309,000, or $0.04 per diluted share, for the prior-year period. 

Six-Month Results

Total revenues for the first six months of 2013 of $12.07 million were down 5% compared with total revenues of $12.74 million in the prior-year period.  Product sales in the 2013 first six months of $11.37 million were down 7% compared with product sales of $12.17 in the prior-year period, primarily due to declines in DPP® product sales in Brazil to FIOCRUZ and partially offset by stronger sales of lateral flow technology products in South America and the U.S.   Research and development ("R&D"), milestone, grant and royalty revenues for the six months ended June 30, 2013 increased to $697,000 from $563,000 in the prior-year period.

Gross margin for the 2013 first six months decreased 16% to $4.98 million compared with $5.90 million for the prior-year period, due primarily to the lower DPP® sales and a product mix resulting in a higher cost of products sold.  Product gross margin for the first six months of 2013 decreased 20% to $4.28 million, from $5.34 million in the prior-year period.

R&D expenses in the first six months of 2013 were $2.55 million, compared with $2.36 million in the prior-year period.  The 2013 first six months included $520,000 of clinical trial expenses related to our DPP® HIV 1/2 Assay CLIA waiver study, compared with $556,000 in the prior-year period.

Selling, general and administrative expenses in the first six months of 2013 increased slightly to $2.32 million from $2.31 million in the prior-year period, largely due to wages and related expenses, and other expenses partially offset by lower commissions paid on DPP® product sales to Brazil, and lower consulting fees.

Operating income for the first six months of 2013 was $107,000, compared with operating income of $1,232,000 for the prior-year period.  

Net income for the first six months of 2013 was $76,000 or $0.01 per diluted share, compared with net income of $742,000 or $0.09 per diluted share, for the prior-year period. 

Balance Sheet Highlights

The Company had cash and cash equivalents of $8.65 million as of June 30, 2013, compared with $2.95 million as of December 31, 2012.   The primary driver for this increase was net cash received from the April 2013 common stock funding of $5.40 million.  Additional cash for the six months was provided from decreased accounts receivable of $927,000, , and increased accounts payable and other accrued liabilities of $626,000.  Partially offsetting these provisions was a use of cash for increased inventories of $1.36 million in preparation to meet third quarter sales.   Overall, working capital increased by $5.56 million during the second quarter to $13.19 million.  The April 2013 common stock funding of $5.41 million accounted for most of this increase.

Conference Call

Chembio has scheduled a conference call and webcast for 10:00 a.m. Eastern time today.  To participate in the call, please dial (877) 407-0778 from the U.S. or (201) 689-8565 from outside the U.S.  In addition, following the completion of the call, a telephone replay will be accessible until November 8, 2013 at 11:59 p.m.  Eastern Time by dialing (877) 660-6853 from the U.S. or (201) 612-7415 from outside the U.S. and entering conference ID #: 418478.  The conference call may also be accessed via the Internet at http://www.investorcalendar.com/IC/CEPage.asp?ID=171395.  An archive of the web cast will be available for 90 days on the Company's website at www.chembio.com.

Those interested in listening to the conference call live via the Internet may do so by visiting the Investor Relations section of Chembio's website at www.chembio.com.  To listen to the live call, please go to the website 15 minutes prior to its start to register, download, and install the necessary audio software.  A replay will be available on the website for a limited time.  

About Chembio Diagnostics

Chembio Diagnostics, Inc. develops, manufactures, licenses and markets proprietary rapid diagnostic tests in the growing $10 billion point-of-care testing market.  Chembio's two FDA PMA-approved, CLIA-waived, rapid HIV tests are marketed in the U.S. by Alere, Inc. (formerly, Inverness Medical Innovations, Inc.).  Chembio markets its HIV STAT-PAK® line of rapid HIV tests internationally to government and donor-funded programs directly and through distributors. Chembio has developed a patented point-of-care test platform technology, the Dual Path Platform (DPP®) technology, which has significant advantages over lateral-flow technologies.  This technology is providing Chembio with a significant pipeline of business opportunities for the development and manufacture of new products based on DPP®.  Headquartered in Medford, NY, with approximately 200 employees, Chembio is licensed by the U.S. Food and Drug Administration (FDA) as well as the U.S. Department of Agriculture (USDA), and is certified for the global market under the International Standards Organization (ISO) directive 13.485.  For more information, please visit: www.chembio.com.

Forward-Looking Statements

Statements contained herein that are not historical facts may be forward-looking statements within the meaning of the Securities Act of 1933, as amended. Forward-looking statements include statements regarding the intent, belief or current expectations of the Company and its management. Such statements, which are estimates only, reflect management's current views, are based on certain assumptions, and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to Chembio's ability to obtain additional financing and to obtain regulatory approvals in a timely manner, as well as the demand for Chembio's products. Chembio undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in Chembio's expectations with regard to these forward-looking statements or the occurrence of unanticipated events. Factors that may impact Chembio's success are more fully disclosed in Chembio's most recent public filings with the U.S. Securities and Exchange Commission.

 (Tables to follow)

CONTACTS:

Chembio Diagnostics

Susan Norcott

(631) 924-1135, ext. 125

snorcott@chembio.com

Chembio Diagnostics, Inc. & Subsidiary
Summary of Condensed Consoldidated Results of Operations
UNAUDITED
	For the three months ended						For the six months ended
	June 30, 2013			June 30, 2012			June 30, 2013		June 30, 2012
Net product sales	$	5,061,691		$	5,811,190		$	11,374,881	$	12,174,342
R&D, milestone and grant revenue		331,831			272,701			696,794		562,801
TOTAL REVENUES	$	5,393,522		$	6,083,891		$	12,071,675	$	12,737,143
GROSS MARGIN	$	2,281,175		$	2,570,624		$	4,975,065	$	5,903,487
Research and development expenses	$	1,500,645		$	979,044		$	2,545,904	$	2,358,174
Selling, general and administrative expenses	$	1,160,256		$	1,079,201		$	2,322,336	$	2,313,169
INCOME (LOSS) FROM OPERATIONS	$	(379,726	)	$	512,379		$	106,825	$	1,232,144
OTHER INCOME (EXPENSE):	$	8,397		$	(719	)	$	9,400	$	(1,641	)
Income tax provision (benefit)	$	(130,340	)	$	203,130		$	40,090	$	488,530
NET INCOME (LOSS)	$	(240,989	)	$	308,530		$	76,135	$	741,973
Basic earnings (loss) per share	$	(0.03	)	$	0.04		$	0.01	$	0.09
Diluted earnings (loss) per share	$	(0.03	)	$	0.04		$	0.01	$	0.09
Weighted average number of shares outstanding, basic		9,259,506			7,987,105			8,664,478		7,960,714
Weighted average number of shares outstanding, diluted		9,259,506			8,525,199			9,230,840		8,512,770

Chembio Diagnostics, Inc. & Subsidiary
Summary of Condensed Consolidated Balance Sheets
	June 30, 2013		December 31, 2012
	(UNAUDITED)
CURRENT ASSETS:
Cash and cash equivalents	$	8,645,392	$	2,951,859
Accounts receivable, net of allowance for doubtful accounts of $24,000 and $58,000 at June 30, 2013 and December 31, 2012, respectively		3,894,207		4,821,357
Inventories		3,848,295		2,488,071
Prepaid expenses and other current assets		730,383		747,463
TOTAL CURRENT ASSETS		17,118,277		11,008,750
FIXED ASSETS, net of accumulated depreciation		1,832,570		1,427,646
OTHER ASSETS		4,591,064		4,898,754
TOTAL ASSETS	$	23,541,911	$	17,335,150
CURRENT LIABILITIES:
Accounts payable and accrued liabilities		3,929,431		3,303,923
Current portion of loans payable		-		51,236
Customer deposits		-		23,224
TOTAL CURRENT LIABILITIES		3,929,431		3,378,383
TOTAL STOCKHOLDERS' EQUITY		19,612,480		13,874,520
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	23,541,911	$	17,335,150

Chembio Diagnostics, Inc. & Subsidiary
Summary of Condensed Consolidated Cash Flow
(UNAUDITED)
	For the six months ended
	June 30, 2013			June 30, 2012
Net cash provided by operating activities	$	802,771		$	1,785,354
Net cash used in investing activities		(415,649	)		(447,621	)
Net cash provided by financing activities		5,306,411			41,354
INCREASE IN CASH AND CASH EQUIVALENTS	$	5,693,533		$	1,379,087

EX-99.2

RAPID Tests for EARLIER Treatment

Investor Presentation

Slide 2

Forward Looking Statements

Statements contained herein that are not historical facts are forward-looking statements within the meaning of the Securities Act of 1933, as amended.  Those statements include statements regarding the intent, belief or current expectations of Chembio and its management. Such statements reflect management's current views, are based on certain assumptions, and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, Chembio's ability to develop, manufacture, market and finance new products and the demand for Chembio's products.  Chembio undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in Chembio's expectations with regard to these forward-looking statements or the occurrence of unanticipated events. Other factors that may impact Chembio's success are more fully disclosed in Chembio's most recent public filings with the U.S. Securities and Exchange Commission.

Slide 3

Investment Summary

• Develops, Manufactures & Markets Point-of-Care Diagnostic Tests (POCTs)  Used Globally

• $25.6MM 2012 Revenues, Profitable

‐ Anticipate Record Revenues in Second Half 2013

• Patented DPP® - A Platform POCT Technology

‐ Oral Fluid HIV Test-FDA –Approved - CLIA waiver pending

• Strong Product Pipeline of Multiplex DPP Products

‐ HIV-Syphilis Test for International and US Markets

‐ HCV & HIV Ag-Ab Test

‐ New Technologies for Multiplex Products

‐ New Collaboration in Brazil with LabTest

Slide 4

Chembio's  Pipeline - $700MM Total Addressable Market

Chembio Pipeline POCT	Total Market Opportunity	Targeted Launch
US HIV	$ 75 MM		Q4-2013
US Syphilis-HIV	$ 75 MM		2H- 2014
US HCV*	$100 MM		2015
US OTC-HIV*	$ 50 MM		2015-2016
International	$400 MM		2013-2016
Total	$700 MM		2013-2016

* Subject to market assessments/developments, and/or attainment of R&D and regulatory milestones

See graphic

Slide 5

Chembio's Current & Near Term POCT Market Opportunities

HIV Rapid POCTS  - Established, Growing Market

• ~50,000 New Infections in US - 2012 ; 2.5 MM Worldwide

• U.S. - Routine Testing USPSTF Recommendation

‐ ACA Expanding Coverage by 25MM+

• International - Designation in PEPFAR & Other Donor-Funded Countries' Testing Protocols

•

HIV-Syphilis POCTS – New Market Opportunity

• Up to 70% HIV-Syphilis Co-Infection in MSM

• Higher Prevalence of  Syphilis (1.9MM) than HIV (1.5MM) in Pregnant Women

HCV POCT – Emerging Market Opportunity

• 4MM in US Infected ` 75% Unaware

• Recent Revised CDC & USPSTF Recommendations for All Baby Boomers

• New Therapeutics

See graphic

Slide 6

POCTs - A Growing $10B Global Market -Examples of Product Opportunities for the Long Term

• Labtest Brazil*

• Febrile Illnesses Contract with U.S. Gov. Agency*

• Influenza Immunity Contract with CDC Contractor*

• Hepatitis-C and HIV Fourth Generation Tests

‐ Associated CDC Recommendations

*announced May 2013

CURRENT CAPABILITIES

· Lateral Flow Technology

· Single parameter tests

· DPP® Technology Enabling

· Improved Sensitivity, Multiplexing

R&D

· Signal

· Enhancement  Features

POTENTIAL NEW CAPABILITIE BEING ASSESSED

· Molecular

· Amplification Technologies

Slide 7

Lateral Flow Rapid HIV Tests Marketed World-Wide

• Total $13.5MM 2012 Revenues

• In U.S. Sold Exclusively through Alere (Clearview®)

‐ $7.8MM 2012; $2.3MM Q2'13 vs. $2.1MM Q2'12 ; $4.9MM YTD'13 vs. $4.6MM YTD'12

‐ Opportunity to Sell Direct Under Chembio  brand  based on new Alere "competitive" product

• International Sales - Chembio Branded Through Multiple Channels:

‐ E.g., PEPFAR, Global Fund UNICEF, etc.

‐ $5.7MM 2012;$2.3MM Q1'13 92% increase from Q1 '12

‐ Record 2H Anticipated Based on Record $5.3MM Order

See graphics

Slide 8

U.S. HIV Self-Testing  "OTC" Opportunity

· Chembio Uniquely Positioned

· Still Assessing Market Size –

o OSUR Spending $7MM/QTR on HIV OTC Market Launch

See Graphics

Slide 9

Ongoing Collaboration with Brazilian MOH Affiliate  Complemented by New Agreement with Labtest

‐ Five DPP® Products  with Brazilian MOH Supplier

‐ $10.1MM 2012 Revenues

‐ ~$6MM Forecast 2013, Potential of $9MM in 2014.

‐ Potential New Product

• New Collaboration with Labtest Brazil*

‐ Leading Brazilian IVD Company

‐ Addressing Private & Public Markets in Brazil

‐ Potential Additional Markets, Contract Manufacturing

‐ Assembly & Distribution - DPP® Co-branded

‐ 2013 Plan = Initial Products Registrations

*announced May 2013

See graphics

Slide 10

DPP® Patented Point of Care Technology

• Proprietary Platform Technology that Uniquely Enables Multiplexing for Higher Value Tests

• Increases Sensitivity as Compared with Lateral Flow Technology

• Validated with Numerous Partners, Regulatory Agencies

See graphics

Slide 11

Chembio DPP® HIV 1/2 Assay FDA-Approved Dec. '12,  CLIA Waiver expected Q4 2012

· Superior blood matrix performance over top 4 market share products in early detection study

· Superior Oral Fluid sensitivity v. Market Leader in head-to-head study

· User friendly, safe and efficient SampleTainer™ Sample Collection System

· Separate and reagent free oral fluid collection device

See graphics

Slide 12

DPP® HIV 1/2 Assay v. Leading Competitor,  Superior U.S. Label Claims

	DPP HIV 1/2	Oraquick ADVANCE
Performance      Sensitivity*      Specificity*	99.9% WB/P/S; 99.8% FS; 98.9% OF 100% FS; 99.9% OF/WB/P/S	(Note: No S or WB claims) 99.6% FS/P; 99.3% OF 99.9% P, 100% FS, 99.8% OF
External Controls	12 month open vial	30 day open vial
Patient Age	2+ years of age	12+ years of age
Result Read Time	25-40 min OF 10-25 min FS/P/WB/S	20-40 min OF/FS/P

DPP® HIV 1/2 Assay superior performance in recent studies (CDC-Mozambique) in "naïve" (undiagnosed) populations for which the test will be utilized, and more published articles on OraQuick market performance

*Note:  Orasure conducted its U.S. trials 1999-2001 before widespread deployment of Highly Active Anti-Retroviral Therapy (HAART).

Note: Oral Fluid (OF), Venous Whole Blood (WB), WB Finger Stick (FS), Plasma (P), Serum (S)

Slide 13

DPP® Syphilis Test

• Large Global Market Opportunities for Pre-Natal and MSM Screening

‐ HIV-Syphilis Comb. Leverages Global PMTCT Funding

‐ USAID and WHO Evaluations in Process

‐ INDRE (Mexico) Data @100% Sensitivity & Specificity

• Anticipated FDA Approval(PMA) in Q4 2014 – Clia waiver Q1 2015

‐ Recent Meeting with FDA Extending Review Period Due to Change to PMA (v. 510K)

‐ Significant Potential International Sales 2013 -14

Slide 14

Selected Financial Data FY2008 –2012

See Graphic

2012

· Total Revenue $25,611

· Product Revenue $24,327

· Gross Profit $10,790

· R&D Expense* $4,486

· Pre-Tax Income $1,451

*Non-recurring 2010 $1.5MM R&D Credit from the Affordable Care Act – excluded from 2010 R&D Exp. & 2010 Pre-Tax Income

Slide 15

FY2010-2012 Selected Financial Results

	Year Ended					Year Ended					Year Ended
In (000's)	Dec 31, 2012					Dec. 31, 2011					Dec. 31, 2010
Net Product Revenues	$	24,327				$	17,422				$	13,516
Non-Product Revenues	$	1,283				$	1,966				$	3,188
TOTAL REVENUES	$	25,610				$	19,388				$	16,704
GROSS MARGIN	$	10,790		42	%	$	9,390		48	%	$	8,101		48	%
OPERATING COSTS:
Research and Development exp	$	4,486		18	%	$	4,878		25	%	$	2,586		15	%
Selling, General &Administrative exp	$	4,852		19	%	$	3,424		18	%	$	2,941		18	%
	$	9,338				$	8,302				$	5,527
INCOME FROM OPERATIONS	$	1,452				$	1,088				$	2,574
OTHER INCOME (EXPENSES):	$	(2	)			$	(12	)				(15	)
NET INCOME-Before Taxes	$	1,450		6	%	$	1,076		6	%	$	2,559		15	%
Income tax (benefit) provision	$	509				$	(5,133	)			$	46
NET INCOME	$	941		4	%	$	6,209		32	%	$	2,513		15	%

2012 U.S. Lateral Flow HIV Sales$ 7.8 MM

       2012 Ex-U.S. Lateral Flow HIV Sales  $ 5.7 MM

       2012 Brazil DPP Sales$10.1 MM

Slide 16

Second Quarter and First Half, 2012-2013 Selected Financial Results

	3 Mos Ended					3 Mos Ended					6 mos June 30, 2013				6 mos June 30,2012
In (000's)	June 30, 2013					June 30, 2012					2012				2011
Net Product Revenues	$	5,062				$	5,811				$	11,375			$	12,174
Non-Product Revenues	$	332				$	273				$	697			$	563
TOTAL REVENUES	$	5,394				$	6,084				$	12,072			$	12,737
GROSS MARGIN	$	2,281		42	%	$	2,571		42	%	$	4,975	41	%	$	5,903		46	%
OPERATING COSTS:
Research and Development exp	$	1,501		28	%	$	979		16	%	$	2,546	21	%	$	2,358		19	%
Selling, G&Administrative exp	$	1,160		22	%	$	1,079		18	%	$	2,322	19	%	$	2,313		18	%
	$	2,661				$	2,058				$	4,868			$	4,671
INCOME FROM OPERATIONS	$	(380	)			$	513				$	107			$	1,232
OTHER INCOME (EXPENSES):	$	9				$	(1	)			$	9			$	(1	)
NET INCOME-Before Taxes	$	(371	)	-7	%	$	512		8	%	$	116	1	%	$	1,231		10	%
Income tax (benefit) provision	$	(130	)			$	203				$	40			$	489
NET INCOME	$	(241	)	-4	%	$	309		5	%	$	76	1	%	$	742		6	%

Slide 17

CEMI Selected Share & Balance Sheet Data

$6MM Common Stock Public Offering Closed on April 3, 2013 1.2MM Shares @ $5.00 per share, $5.450MM Net Proceeds

(in millions except per share and daily volume data)

Ticker Symbol (NASDAQ)	CEMI
Price 07/31/13	$	4.83
52-Week High	$	5.80
52-Week Low	$	3.61
Outstanding Shares		9.32
Market Capitalization	$	45.04
Fully Diluted Shares		9.99
Management Holding		1.55
Avg.Daily Volume (3 mos to 7/31/13)		19,400
Average Daily Volume (July 2013)		14,300

Options	Total			Avg. Ex. Price
533K held by Mgmt. & Board		669	K	$	2.70

($ in 000s)	June'13 Unaudited		Dec '12
Cash	$	8,645	$	2,952
Total Current Assets		17,118		4,821
Total Assets	$	23,542	$	17,335
Total Current Liabilities		3,929		3,378
Total Liabilities		3,929		3,460
Stockholders' Equity		19,613		13,875
Total Liabilities & Stockholders' Equity	$	23,542	$	17,335

Slide 18

Leadership

ExecutiveExperience            Joined Company:

Lawrence Siebert,J.D. Chairman & CEO	1981-1991, Partner,  Stanwich Partners, Inc.; 1992-2002 Siebert Associates LLC, Manager; Siebert Capital Corp. , President	2002
Richard Larkin, CPA Chief Financial Officer	2000-2003  CFO of Visual Technology Group; 1987-2000 CFO of Protex International Corp.	2003
Sharon Klugewicz, M.S. Chief Operating Officer	20+ Years at Pall Corporation, most recently as Sen. VP - Scientific & Laboratory Services	2012
Javan Esfandiari, M.S. SVP Research & Development	1993-1997, R&D Director On-Site Biotech; 1997-2000, Co-Founder of Sinovus Biotech AB (Sweden), which was acquired by Chembio in 2000	2000

Slide 19

Organization & Facility

• FDA & USDA- Approved Development & Manufacturing Facility

• All Company Operations in 30,600 Sq. Ft. Leased Facility in Medford, NY

• Pursuing Increased Efficiencies, Automation, Capacity

Total Employment: Approximately 200

Regulatory	4
QA &QC	17
SG&A	12
Research & Development	27
Operations	142

See Graphics

Slide 20

Anticipated Developments - 2013-2014

• Record Second Half Revenues

• Oral Fluid HIV Test CLIA Waiver & Launch

• Expanding International Revenues for Lateral Flow and DPP® Products

• 2014 FDA Submission & Approval of DPP HIV-Syphilis Test

• HIV Fourth Generation & HCV Product Development Milestones

• New Distribution, Contract Development & OEM Deals

• Acquire/License New Technologies, Product Lines

Slide 21

Investment Summary

• Develops, Manufactures & Markets Point-of-Care Diagnostic Tests (POCTs)  Used Globally

• $25.6MM 2012 Revenues, Profitable

‐ Anticipate Record Revenues in Second Half 2013

• Patented DPP® - A Platform POCT Technology

‐ Oral Fluid HIV Test-FDA –Approved - CLIA waiver pending

• Strong Product Pipeline of Multiplex DPP Products

‐ HIV-Syphilis Test for International and US Markets

‐ HCV & HIV Ag-Ab Test

‐ New Technologies for Multiplex Products

‐ New Collaboration in Brazil with LabTest