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):  November 6, 2014 (November 6, 2014)

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 November 6, 2014, the Company issued a press release entitled "Chembio Diagnostics Reports Third Quarter 2014 Financial Results".   A copy of the press release is furnished herewith as Exhibit 99.1.

On November 6, 2014, the Company posted a PowerPoint Presentation to their website entitled "Investor Presentation November 2014."  A copy of the presentation is furnished herewith as Exhibit 99.2.

In addition, also on November 6, 2014, 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 Third Quarter 2014 Financial Results" dated November 6, 2014
99.2	Presentation entitled "Investor Presentation November 2014" dated November 6, 2014.
99.3	Investor Fact Sheet posted to the company website dated November 6, 2014.

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.

November 6, 2014          Chembio Diagnostics, Inc.

By:    /s/ John J. Sperzel III                                      

John J. Sperzel III

Chief Executive Officer

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release entitled "Chembio Diagnostics Reports Third Quarter 2014 Financial Results" dated November 6, 2014
99.2	Presentation entitled "Investor Presentation November 2014" dated November 6, 2014.
99.3	Investor Fact Sheet posted to the company website dated November 6, 2014.

EX-99.1

Chembio Diagnostics Reports Third Quarter 2014 Financial Results

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

MEDFORD, NY, November 6, 2014 -- Chembio Diagnostics, Inc. (Nasdaq:CEMI), a leader in point-of-care diagnostic tests for infectious diseases, today reported financial results for the third quarter and nine months ended September 30, 2014.

John J. Sperzel III, Chembio's Chief Executive Officer, stated, "Our third quarter was extremely productive, and we are especially proud of the growth of our patented DPP^® product sales which accounted for nearly 75% of our total revenue for the quarter.  Total third quarter revenue of $7.31 million was consistent with total second quarter revenue of $7.42 million, and included DPP^® third quarter product sales of $5.41 million.

"We are pleased that our DPP^® HIV 1/2 Assay was granted a CLIA Waiver last week using oral fluid, finger stick and venous whole blood.  This waiver allows us to expand our sales and marketing initiatives to reach physician-office-lab (POL) facilities, clinics and other community healthcare providers.  To support this effort, we recently signed agreements with two leading distribution organizations for the sale of our DPP^® HIV 1/2 Assay and HIV 1/2 STAT-PAK^® Assay in the U.S.  With the combination of the DPP^® HIV 1/2 CLIA Waiver and these distributor agreements in place, we expect a positive impact to sales going forward.

"And finally, to expand our growing DPP^® application, we recently entered into agreements to develop new point-of-care DPP^® assays for Ebola, dengue fever, febrile illness, and a specific form of cancer," concluded Mr. Sperzel.

Financial information comparing the 2014 third quarter to the 2013 third quarter (Note: the 2013 quarter included $3.87 million shipped from a single $5.3 million STAT-PAK^® order, which has not recurred):

• Total revenues of $7.31 million compared with $9.62 million (a decrease of 24.0%);

• DPP^® revenues of $5.41 million compared with $1.88 million (an increase of 188%);

• Operating loss of $262,000, compared with operating income of $1,074,000;

• Net loss of $271,000, or $0.03 per diluted share, compared with net income of $717,000, or $0.07 per diluted share.

Financial information comparing the 2014 first nine months to the 2013 first nine months (Note: the 2013 period included $4.64 million shipped from the single $5.3 million STAT-PAK^® order, which has not recurred, as described above):

• Total revenues of $20.55 million compared with $21.69 million (a decrease of 5.3%);

• DPP^® revenues of $11.75 million compared with $3.72 million (an increase of 216%)

• Operating loss of $878,000, compared with operating income of $1,181,000;

• Net loss of $641,000, or $0.07 per diluted share, compared with net income of $793,000, or $0.08 per diluted share.

Additional Third Quarter Information

The total revenues for the 2014 third quarter consisted of product sales of $7.25 million compared with $9.04 million in the prior-year period, and research and development ("R&D"), milestone, and grant and royalty revenues of $66,000 compared with $573,000 for the prior-year period. The decrease in product sales is due primarily to the shipment in 2013 of $3.87 million from the single non-recurred STAT-PAK^® order described above.

Gross margin for the 2014 third quarter was $2.65 million compared with $4.06 million for the prior-year period, due primarily to the non-recurrence of the STAT-PAK^® order described above and also to product mix. Product gross margin for the 2014 third quarter was $2.58 million compared with $3.48 million for the prior-year period, also due primarily to the non-recurrence of the STAT-PAK^® order described above and also to product mix.

R&D expenses for the 2014 third quarter were $.97 million compared with $1.60 million for the prior-year period.

Selling, general and administrative expenses for the 2014 third quarter were $1.94 million compared with $1.38 million for the prior-year period, largely due to higher investment in sales and marketing personnel, increased commissions, and related costs.

Operating loss for the 2014 third quarter was $262,000 compared with operating income of $1,074,000 for the prior-year period.

Net loss for the 2014 third quarter was $271,000, or $0.03 per diluted share, compared with net income of $717,000, or $0.07 per diluted share, for the prior-year period.

Additional Nine-Month Information

The total revenues for the 2014 first nine months consisted of product sales of $19.40 million compared with $20.42 million for the prior-year period.  R&D, milestone, and grant and royalty revenues for the 2014 first nine months were $1,149,000 compared with $1,270,000 for the prior-year period. The decrease in product sales is due primarily to the shipment in 2013 of $4.64 million from the single non-recurred STAT-PAK^® order described above.

Gross margin for the 2014 first nine months was $7.91 million compared with $9.03 million for the prior-year period, due primarily to the non-recurrence of the STAT-PAK^® order described above and also to product mix. Product gross margin for the 2014 first nine months was $6.76 million compared with $7.76 million for the prior-year period, also due primarily to the non-recurrence of the STAT-PAK^® order described above and also to product mix.

R&D expenses for the 2014 first nine months were $3.44 million compared with $4.15 million for the prior-year period. 

Selling, general and administrative expenses for the 2014 first nine months were $5.34 million compared with $3.70 million for the prior-year period, largely due to higher investment in sales and marketing personnel, increased commissions, and related costs.

Operating loss for the 2014 first nine months was $878,000 compared with operating income of $1,181,000 for the prior-year period.  

Net loss for the 2014 first nine months was $641,000, or $0.07 per diluted share, compared with net income of $793,000, or $0.08 per diluted share, for the prior-year period. 

Balance Sheet Highlights

The Company had cash and cash equivalents of $3.67 million as of September 30, 2014, compared with $9.65 million as of December 31, 2013. The decrease was primarily due to net cash used in investing activities to fund deposits on and purchase of fixed assets of $1.06 million as well as net cash used in operating activities of $5.15 million, which included an increase in accounts receivable of $3.72 million, an increase in inventory of $.79 million and a reduction in accounts payable of $.49 million. Our working capital decreased by $1.04 million during the year from $14.22 million to $13.18 million.

Conference Call

To participate on the conference 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 13, 2014 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 #:13594205. The conference call may also be accessed via the Internet at http://www.investorcalendar.com/IC/CEPage.asp?ID=173358.  An archive of the webcast 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 $8.0 billion point-of-care testing market. Chembio markets its DPP® HIV 1/2 Assay and HIV 1/2 STAT-PAK® Assay in the U.S. and internationally. The Company's SURE CHECK® HIV 1/2 Assay is marketed exclusively in the U.S. as Clearview® Complete. Outside the U.S., Chembio markets its SURE CHECK® HIV 1/2 Assay 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.

Headquartered in Medford, NY, 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 13485. Chembio Diagnostic Systems, Inc. is a wholly-owned subsidiary of Chembio Diagnostics, Inc. 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

Vida Strategic Partners (investor relations)

Stephanie C. Diaz

(415) 675-7401

sdiaz@vidasp.com

Chembio Diagnostics, Inc. & Subsidiary
Summary of Consoldidated Results of Operations
(UNAUDITED)
	For the three months ended					For the nine months ended
	September 30, 2014			September 30, 2013		September 30, 2014			September 30, 2013
Net product sales	$	7,247,881		$	9,044,714	$	19,400,515		$	20,419,595
License and royalty revenue		8,482			898		15,613			898
R&D, milestone and grant revenue		57,946			572,027		1,133,850			1,268,821
TOTAL REVENUES	$	7,314,309		$	9,617,639	$	20,549,978		$	21,689,314
GROSS MARGIN	$	2,650,390		$	4,056,186	$	7,905,551		$	9,031,251
Research and development expenses	$	972,439		$	1,602,297	$	3,438,714		$	4,148,201
Selling, general and administrative expenses	$	1,940,424		$	1,379,845	$	5,344,914		$	3,702,181
(LOSS) INCOME FROM OPERATIONS	$	(262,473	)	$	1,074,044	$	(878,077	)	$	1,180,869
OTHER (EXPENSE) INCOME	$	1,136		$	1,477	$	(1,180	)	$	10,877
Income tax (benefit) provision	$	9,284		$	358,850	$	(237,916	)	$	398,940
NET (LOSS) INCOME	$	(270,621	)	$	716,671	$	(641,341	)	$	792,806
Basic (loss) earnings per share	$	(0.03	)	$	0.08	$	(0.07	)	$	0.09
Diluted earnings (loss) per share	$	(0.03	)	$	0.07	$	(0.07	)	$	0.08
Weighted average number of shares outstanding, basic		9,611,139			9,324,783		9,503,084			8,886,998
Weighted average number of shares outstanding, diluted		9,611,139			9,824,019		9,503,084			9,433,152

 

Chembio Diagnostics, Inc. & Subsidiary
Summary of Consolidated Balance Sheets
	September 30, 2014			December 31, 2013
	(UNAUDITED)
CURRENT ASSETS:
Cash and cash equivalents	$	3,672,702		$	9,650,275
Accounts receivable, net of allowance for doubtful accounts of $24,000 at September 30, 2014 and December 31, 2013, respectively		8,315,651			4,592,121
Inventories		3,975,250			3,188,726
Prepaid expenses and other current assets		1,035,435			1,099,379
TOTAL CURRENT ASSETS		16,999,038			18,530,501
FIXED ASSETS, net of accumulated depreciation		2,118,756			1,978,232
OTHER ASSETS		4,810,825			3,977,859
TOTAL ASSETS	$	23,928,619		$	24,486,592
CURRENT LIABILITIES:
Accounts payable and accrued liabilities	$	3,819,271		$	4,309,490
TOTAL LIABILITIES		3,819,271			4,309,490
STOCKHOLDERS' EQUITY:
Common stock - $.01 par value; 100,000,000 shares authorized; 9,611,139 and 9,324,783 shares issued and outstanding for September 30, 2014 and December 31, 2013, respectively		96,112			93,248
Additional paid-in capital		47,445,750			46,875,027
Accumulated deficit		(27,432,514	)		(26,791,173	)
TOTAL STOCKHOLDERS' EQUITY		20,109,348			20,177,102
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	23,928,619		$	24,486,592

Chembio Diagnostics, Inc. & Subsidiary
Summary of Consolidated Cash Flow
For the nine months ended
(UNAUDITED)
	September 30, 2014			September 30, 2013
Net cash (used in) provided by operating activities	$	(5,154,604	)	$	583,808
Net cash used in investing activities		(1,060,149	)		(796,274	)
Net cash provided by financing activities		237,180			5,306,412
(DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS	$	(5,977,573	)	$	5,093,946

EX-99.2

Investor Presentation November 2014

NASDAQ:CEMI

Rapid Tests for Earlier Treatment™™

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

Our Vision & Mission

We enable longer and healthier living through detection and monitoring of serious diseases.

Our mission is to be a leader in the development and commercialization of diagnostic solutions. We are dedicated to delivering high-quality products that provide ease of use, and rapid and accurate results at the point-of-care (POC). As a global company, we are committed to innovation and the highest quality standards.

Slide 4

Investment Highlights

• Global Provider of High Quality POC Infectious Disease Tests

‐ Sales in 43 countries

• Consistent Track Record of Revenue Growth

‐ Global Revenue of $29.6MM (FY 2013); CAGR 21.7% (2009 to 2013)

• Patented DPP® (Dual Path Platform®) Technology

‐ Lead Product: DPP® Blood/Oral Fluid HIV Test – FDA Approved & CLIA-Waived

• Future Pipeline of DPP® POC Assays

‐ HIV-Syphilis Combination Test

‐ HIV Antibody Assays

‐ HCV Test

             High Value Collaborations and Development Projects

‐ POC DPP® Assays for Ebola, Dengue Fever, Febrile Illness and Type of Cancer

Slide 5

Global POC Diagnostics Company

NORTH AMERICA

• Revenue (FY '13):  $9.7MM or 35%

• Established U.S. Sales & Marketing (June '14)

• DPP® HIV 1/2 FDA Approved, CLIA-Waived

• Funded Research: CDC, DOD, NIH (2013)

EUROPE

• Achieved CE mark for SURECHECK® HIV (July '13)

• Achieved CE mark for HIV STATPAK®, (March '14)

• Pending CE mark for DPP® HIV and DPP® HIV/Syphilis Assays

ASIA

• Established License, Technical Transfer, Contract Manufacturing, Distribution  Agreement (Feb. '14)

LATIN AMERICA

• Revenue (FY '13): $13.2MM or 48%

• Strong OEM Partnerships (e.g., FIOCRUZ, Labtest)

• Branded products sold to NGOs, private  distributors

MERA (Middle East, Russia, Africa)

• Revenue (FY '13): $4.4MM or 16%

• Sales channel: NGO-direct & through distributors

• Procurements primarily funded by PEPFAR, Global Fund, and WHO

Slide 6

POC In-Vitro Diagnostics (IVD) Market

Professional POC Market ($ million)

	2011 Sales	2016 Sales	CAGR
Glucose	1,530	1,640	1%
Infectious Disease	810	950	3%
Critical Care	725	875	4%
Cardiac Markers	500	650	5%
Hematology	430	500	3%
Coagulation/PT, ACT	400	450	2%
Fecal Occult Blood	295	450	9%
Cholesterol/Lipids	275	355	5%
Drugs of Abuse	265	270	0%
HbA1c	150	300	15%
Other*	150	190	n/a
Pregnancy	130	135	1%

*Source: Kalorama Worldwide Market for IVD Tests - July 2012

Slide 7

Chembio Market Opportunities

HIV Market

• 35.2 million people living with HIV/AIDS worldwide (2012)

• 1.6 million people died of AIDS-related illnesses (2012)

• In total, ~75 million people have been infected with the HIV virus and ~36 million have died of HIV

HIV Prevalence (15-49 years), by WHO Region  (See graphics)

Syphilis Market

• Approx. 12 million people globally become ill with syphilis annually

• From 2005-2013, syphilis cases in the U.S. nearly doubled, from 8,724 to 16,663

• Syphilis in pregnancy leads to ~305,000 fetal & neonatal deaths annually

New Cases of STIs, by WHO Region

(See graphics)  Source: World Health Organization (2012)

Slide 8

HIV In The U.S. - The Importance of Testing

• More than 1.1 million people in the United States are living with HIV infection, and almost 1 in 6 (15.8%) are unaware of their infection

• There are ~50,000 new infections per year in the U.S.

• For every HIV infection that is prevented, an estimated $355,000 is saved in the cost of providing lifetime HIV treatment

Source: Center for Disease Control & Prevention (CDC)

Slide 9

Chembio "Lateral Flow" POC Tests

• Two Lateral Flow POC HIV Tests (U.S.)

‐ Chembio HIV 1/2  STAT-PAK®

‐ Chembio SURE CHECK® HIV 1/2 ¹

• Key Product Features

‐ FDA (PMA)-Approved, CLIA-Waived

‐ Sensitivity: 99%

‐ CE Marked, WHO Approved

• Chembio Global Revenue $20.2MM  FY 2013

‐ United States: $8.9MM (14% growth  vs. FY '12)

‐ International: $11.8MM (85% growth vs. FY '12)

• Lateral flow patent expires in 2015

‐ Chembio's royalty payments for lateral flow technology end Feb 2015

¹ Sold in U.S. as Clearview Complete® HIV 1/2

See graphics

Slide 10

Chembio's "Dual Path Platform" (DPP®) Technology

· Patented technology

· Allows improved sensitivity compared to lateral flow technology

· Enables multiple test results via a single blood sample (e.g., HIV-Syphilis Combo Assay)

· Offers application within infectious disease and potential for a number of other indications

See graphics

Slide 11

DPP® Assays – Commercial Products

DPP® HIV 1/2 Assay

• U.S. FDA (PMA) approved, CLIA-Waived  for use with Blood and Oral Fluid samples

• U.S. Launch- Q4 2014

• Entering the ~$35MM Oral Fluid Assay market

• Superior Performance (Sensitivity) vs. competitors

• Patented SampleTainer®Sample Collection System

DPP HIV-Syphilis Combo Assay

• First to enter market with POC HIV-Syphilis combination assay

• First HIV-Syphilis Assay to be USAID Approved

• Successfully launched in Latin America (Mexico)

• Global screening opportunities:

‐ Pregnant Women (Incidence 1.9MM)¹

‐ MSM (up to 70% HIV-Syphilis co-infection)²

¹World Health Organization (WHO);   ²Center for Disease Control & Prevention (CDC)

Slide 12

Chembio's DPP® Development Pipeline

· DPP® HIV-Syphilis Assay (U.S. market)

o Next Generation DPP® HIV-Syphilis "Combo" Assay for detection of HIV and Syphilis Antibodies

· DPP® HCV Assay

o Assay for the detection of Hepatitis C Antibody

· DPP® HIV Ab/Ag Assay

o Next Generation DPP HIV for the detection of HIV Antibody and Antigen

· DPP® HIV 1/2 Oral Fluid Assay Enhancements

o Next Generation DPP® HIV Assay for the enhanced detection of antibodies in oral fluid

Slide 13

DPP® Collaborations

• Oswaldo Cruz Foundation (Brazil)

‐ Five DPP® Products , 2013 revenues ~$6MM

• LabTest (Brazil)

‐ Assembly, Distribution – DPP® Co-branded (2014 Product Registration)

• RVR (Malaysia)

‐ License, Technical Transfer, Contract Manufacturing, Distribution

• IBT (U.S.)

‐ Technology partnership to develop Ebola Assay

• Other

‐ Undisclosed partners for DPP® Dengue Fever and specific type of Cancer

‐ Additional opportunities in discussion/development

Slide 14

Chembio Manufacturing Capabilities

• Leased facilities (~60,000 sq. ft.) in Medford and Holbrook, NY

• High Volume Manufacturing Capabilities (>15MM tests annually)

• Robust Quality Management System

‐ POC tests serve diverse, regulated market

‐ Audited routinely by FDA CDRH/CBER, WHO, USDA, ISO (LNE), and our partners

‐ Expertise in Manufacturing scale up, process validation and cGMP

              Approximately 162 employees

Slide 15

Selected Financial Data FY2009 –2013

2013

Total Revenue $29,550

Product Revenue$ 27,516

Gross Profit $12,300

R&D Expense* $5,834

Income before taxes $1,005

Clinical Trial Expense $1,515

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

See graphics

Slide 16

Selected Financial Highlights

Nine Months Ended (in 000's)	September 30, 2014			September 30, 2013
NET PRODUCT REVENUES	$	19,401		$	20,420
TOTAL REVENUES	$	20,550		$	21,689
GROSS MARGIN	$	7,906		$	9,031
INCOME FROM OPERATIONS	$	(878	)	$	1,181
NET INCOME	$	(641	)	$	793
CASH (as of end of period)	$	3,673		$	8,046

Slide 17

2014 Milestones - Achieved

• Product Development/Regulatory

‐ Achieved CE Mark for HIV 1/2 STAT-PAK®: March 2014

‐ Received CLIA-Waiver for DPP® HIV 1/2 CLIA: October 2014

Corporate/Operations

‐ Obtained POC license for certain IBT Ebola reagents: October 2014

‐ Entered development agreements for Dengue Fever and Cancer assays: October 2014

‐ Finalized Agreement with RVR (Malaysia) to build position in Asia: Feb 2014

‐ Established U.S. Distribution/Warehouse facility in Holbrook, NY: May 2014

Commercial / Sales & Marketing

‐ Terminated STAT-PAK® Distribution Agreement with U.S. Distributor: June 2014

‐ Established Chembio U.S. Sales & Marketing team to focus on DPP® HIV 1/2 and HIV 1/2 STAT-PAK® Assays: June 2014

‐ Signed agreements with three leading U.S. distribution companies for sales of DPP® HIV 1/2 and HIV 1/2 STAT-PAK®: September-October 2014

Slide 18

2014 Milestones - Anticipated

Corporate/Operations

• Finalize additional DPP® license and/or development collaborations

• Increase Manufacturing Footprint and Capacity in Medford, NY

• Pursue Acquisitions or Licenses of Complementary Products/Technologies

• Seek External Support to Accelerate Development of DPP® Ebola Assay

• Commercial / Sales & Marketing

• Expand ex-U.S. Revenues for Lateral Flow and DPP® Products

• New Distribution, Contract Development & OEM Deals

• International Sales Growth of DPP® HIV-Syphilis Test

Slide 19

Executive Leadership Team

Executive:  John J. Sperzel III,   President &CEO

Previous Experience: 2011-2013, President and CEO of ITC.; 1987-2011 Axis-Shield, Bayer Diagnostics, Instrumentation Laboratory and Boehringer Mannheim

Joined:  2014

Executive:  Richard Larkin, CPA  Chief Financial Officer

Previous Experience: 2000-2003  CFO of Visual Technology Group; 1987-2000 CFO of Protex  International Corp.

Joined:  2003

Executive:  Sharon Klugewicz, M.S.  Chief Operating Officer

Previous Experience: 2009-2012, Sr. VP Scientific & Laboratory Services of Pall Corporation; 1991-2009 Pall Corporation

Joined:  2012

Executive:  Javan Esfandiari, M.S.  Chief Science and Technology Officer

Previous Experience: 1997-2000, Co-founder of Sinovus Biotech AB (Sweden), acquired by Chembio in 2000; 1993-1997 R&D Director On-Site Biotech

Joined:  2000

Executive:  Thomas Ippolito, VP Regulatory & Clinical Affairs

Previous Experience: 2000-2005, VP Quality & Regulatory of Biospecific Technologies Corp.; 1984-2000 United Biomedical Inc., Analytab Products Inc. and Eastern Long Island Hospital

Joined:  2005

Executive:  Michael Steele, VP Sales, Marketing and Business Development

Previous Experience: 2008-2011, VP Business Development of SeraCare Life Sciences; 1992-2008 Corautus Genetics, Life Therapeutics and Serologicals, Inc.

Joined:  2012

Slide 20

Investment Highlights

• Global Provider of High Quality POC Infectious Disease Tests

‐ Sales in 43 countries

• Consistent Track Record of Revenue Growth

‐ Global Revenue of $29.6MM (FY 2013); CAGR 21.7% (2009 to 2013)

• Patented DPP® (Dual Path Platform®) Technology

‐ Lead Product: DPP® Blood/Oral Fluid HIV Test – FDA-Approved & CLIA-Waived

• Future Pipeline of DPP® POC Assays

‐ HIV-Syphilis Combination Test

‐ HIV Antibody Assays

‐ HCV Test

• High Value Collaborations and Development Projects

‐ POC DPP® Assays for Ebola, Dengue Fever, Febrile Illness and Type of Cancer