10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q/A

(Amendment No. 1)

x Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2012

¨ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from             to

Commission File Number: 0-28666

AMERICAN BIO MEDICA CORPORATION

(Exact name of registrant as specified in its charter)

New York	14-1702188
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

122 Smith Road, Kinderhook, New York	12106
(Address of principal executive offices)	(Zip Code)

518-758-8158

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days     x Yes     ¨ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files)     x Yes     ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act

Large accelerated filer	£	Accelerated filer	£
Non-accelerated filer	£	Smaller reporting company	S

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)     ¨ Yes    x No

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:

21,833,003 Common Shares as of August 13, 2012

EXPLANATORY NOTE

The purpose of this Amendment No. 1 to American Bio Medica Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, filed with the Securities and Exchange Commission on August 14, 2012, is solely to furnish Exhibit 101 to the Form 10-Q. Exhibit 101 provides the financial statements and related notes from the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language). No other changes have been made to the Form 10-Q. This Amendment does not reflect events that may have occurred subsequent to the original filing date.

Item 6. Exhibits

31.1/31.2*            Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer/Chief Financial Officer

32.1/32.2* Certification of the Chief Executive Officer/Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101** The following materials from our Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, formatted in XBRL (Extensible Business Reporting Language): (i) Balance Sheet, (ii) Statements of Income (iii) Statements of Cash Flows, and (iv) Notes to Consolidated Financial Statements.

*Previously filed as an exhibit to the original Quarterly Report on Form 10-Q filed August 14, 2012.

**Furnished herewith.

2

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant has caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

AMERICAN BIO MEDICA CORPORATION

(Registrant)

By: /s/ Stan Cipkowski

Stan Cipkowski

Chief Financial Officer/Chief Executive Officer

Principal Financial Officer

Principal Accounting Officer

Dated: September 10, 2012

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Line of Credit and Debt

6 Months Ended

Jun. 30, 2012

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Note D – Line of Credit and Debt

Loan and Security Agreement with Medallion Financial Corp (“Medallion”)

On April 20, 2012 (the “Closing Date”), we entered into a Loan and Security Agreement (the “Loan Agreement”) with Medallion, a new Senior Lender, to refinance the Company’s Line of Credit with Rosenthal.

Under the Loan Agreement, Medallion is providing the Company with up to $1,000,000 under a revolving secured line of credit (the “Medallion Line of Credit”), which is secured by a first security interest in all of the Company’s receivables, inventory, and intellectual property rights along with a second security interest in the Company’s machinery and equipment. The maximum amount available under the Medallion Line of Credit is subject to an Advance Rate that consists of: 85% of eligible accounts receivable and up to 30% of eligible inventory (not to exceed $150,000). “Eligible Receivables” are defined as those receivables that are paid within ninety (90) days of the invoice date. Eligible Receivables consists of both domestic sales and those international sales made in North America. An Eligible Receivable becomes ineligible if more than 25% of the aggregate receivables due from a customer are more than ninety (90) days past due or the aggregate receivables from a customer exceed 25% of the then total outstanding Eligible Receivables. “Eligible Inventory” is defined as raw materials and finished goods that are not obsolete or unmerchantable and are acceptable to Medallion.

From the loan availability on the Closing Date, we drew approximately $566,000 to pay off our Line of Credit with Rosenthal and Rosenthal, Inc. (“Rosenthal”; see below for further information on the Rosenthal Line of Credit).

We were charged a facility fee of 1% of the balance of the Medallion Line of Credit on the Closing Date and will be charged the same facility fee of 1% on each anniversary of the Closing Date thereafter. Under the Loan Agreement, interest on outstanding borrowings is payable monthly and is charged at an annual rate equal to 4% above a base rate (which is the Wall Street Journal Prime as published from time to time. As of the date of this report, the Wall Street Journal Prime is 3.25%). If we were to default under the Loan Agreement, interest on outstanding borrowings under the Medallion Line of Credit would be charged at an annual rate of 2% above the interest rate in effect at the time of such default. We are subject to two audits per year by Medallion (provided we are not in default) at a rate of $950.00 per person per day. Prior to closing, we also paid a non-refundable fee in the amount of $10,000 to Medallion for field exam and due diligence costs.

So long as any obligations are due to Medallion under the Medallion Line of Credit, we must maintain stockholders’ equity of at least $1,750,000, and as of the date of this report, we are in compliance with this requirement.

We incurred $20,000 in costs related to the Medallion Line of Credit. These costs were fully expensed in the six months ended June 30, 2012.

We incurred $8,000 in interest expense in the three (and six) months ended June 30, 2012 (no interest expense was incurred in the three and six months ended June 30, 2011 as we did not close on the Medallion Line of Credit until April 2012).

The amount outstanding on the Medallion Line of Credit at June 30, 2012 was $377,000. Additional loan availability was $168,000, for a total Loan Availability of $545,000 as of June 30, 2012. No amounts were outstanding or available at June 30, 2011, as we did not close on the Medallion Line of Credit until April 2012.

Rosenthal Line of Credit

We previously entered into a Financing Agreement (the “Financing Agreement”) with Rosenthal. Under the Financing Agreement, Rosenthal provided the Company with up to $1,500,000 under a revolving secured line of credit (“Rosenthal Line of Credit”). The Rosenthal Line of Credit was collateralized by a first security interest in all of the Company’s accounts receivables, inventory, and intellectual property, and a second security interest in our machinery and equipment, leases, leasehold improvements, furniture and fixtures. The maximum availability of $1,500,000 was subject to an availability formula based on certain percentages of accounts receivable and inventory, and elements of the availability formula were subject to periodic review and revision by Rosenthal. Under the Financing Agreement, we paid Rosenthal an administrative fee of $1,500 per month and an annual fee of $15,000. There were additional administrative fees paid that totaled $11,000 and $16,000 in the three and six months ended June 30, 2011, respectively (there were no additional administrative fees charged in the three and six months ended June 30, 2012). Under the Financing Agreement, interest was payable monthly, and was charged at variable rates (based on the Prime Rate), with minimum monthly interest of $4,000. We incurred $7,000 in interest expense in the three months ended June 30, 2012 and $15,000 in the three months ended June 30, 2011. In the six months ended June 30, 2012, we incurred $19,000 in interest expense; while in the six months ended June 30, 2011, we incurred $28,000 in interest expense.

We incurred $41,000 in costs related to the Rosenthal Line of Credit. These costs were amortized over the three-year term of the Rosenthal Line of Credit; with the remaining $4,000 in costs being amortized in the three months ended June 30, 2012. In the three months ended June 30, 2011, we amortized $4,000 of these costs. We amortized $7,000 in costs in both the six months ended June 30, 2012 and the six months ended June 30, 2011.

On February 28, 2012, we gave Rosenthal written notice of non-renewal as provided under the Financing Agreement, and as a result, the Financing Agreement terminated on May 31, 2012. In April 2012, we drew approximately $566,000 from our Medallion Line of Credit to pay off the Rosenthal Line of Credit so there we no amounts due on the Rosenthal Line of Credit as of June 30, 2012.

The amount outstanding on the Rosenthal Line of Credit at December 31, 2011 was $397,000, with $361,000 of this amount outstanding collateralized by accounts receivable at an interest rate of 8% and $36,000 collateralized by inventory at an interest rate of 9%. Additional loan availability was $159,000, for a total Loan Availability of $556,000 as of December 31, 2011.

First Niagara Bank Mortgage Consolidation Loan (“Mortgage Consolidation Loan”)

On February 23, 2011, we amended and extended our Mortgage Consolidation Loan with First Niagara Bank (“First Niagara”). The amended Mortgage Consolidation Loan has a maturity date of March 1, 2013, and has a 6-year (72 month) amortization. The principal amount of the amended Mortgage Consolidation Loan is $815,000 with a fixed interest rate of 8.25%. The monthly payment of principal and interest is $14,000 and payments commenced on March 1, 2011. We were required to make a $15,000 principal payment at the time of closing of the amended Mortgage Consolidation Loan. We also incurred approximately $2,000 in costs associated with this amendment, which were legal costs incurred by First Niagara and passed on to the Company. The unamortized balance of these costs was $1,000 as of March 31, 2012. The amended Mortgage Consolidation Loan continues to be secured by our facility in Kinderhook, New York as well as various pieces of machinery and equipment. All other terms of the Mortgage Consolidation Loan remain unchanged, including compliance with a covenant (measured monthly) to maintain a certain level of liquidity (defined as any combination of cash, marketable securities or borrowing availability under one or more credit facilities other than the Mortgage Consolidation Loan). As of the date of this report, we are in compliance with this covenant.

The balance on the Mortgage Consolidation Loan was $668,000 at June 30, 2012 and $725,000 at December 31, 2011. Interest expense recognized in the six months ended June 30, 2012 was $29,000 and interest expense recognized in the six months ended June 30, 2011 was $34,000. Interest expense was $14,000 and $16,000 during the three months ended June 30, 2012 and June 30, 2011, respectively.

Copier Leases

In May 2007, we purchased a copier through an equipment lease with RICOH in the amount of $17,000. The term of the lease is five years with an interest rate of 14.11%. In April 2012, we notified RICOH that we were opting to purchase the copier for $1.00 as provided in our lease. There were no amounts outstanding on this lease at June 30, 2012 and $3,000 outstanding at December 31, 2011.

In October 2010, we purchased a copier through an equipment lease with Marlin Leasing in the amount of $4,000. The term of the lease is two years with an interest rate of 14.46%. The amount outstanding on this lease was $1,000 at June 30, 2012 and $2,000 at December 31, 2011.

Debenture Financing

In August 2008, we completed an offering of Series A Debentures and received gross proceeds of $750,000. The net proceeds of the offering of Series A Debentures were $631,000 after $54,000 of placement agent fees and expenses, legal and accounting fees of $63,000 and $2,000 of state filing fees.

The Series A Debentures accrue interest at a rate of 10% per annum (payable by the Company semi-annually) and mature on August 1, 2012 (See Part I; Item I; Note F – Subsequent Events). As placement agent, Cantone Research, Inc. (“Cantone”) received a placement agent fee of $52,500, or 7% of the gross principal amount of Series A Debentures sold. In addition, we issued Cantone a four-year warrant to purchase 30,450 shares of the Company’s common stock at an exercise price of $0.37 per share (the closing price of the Company’s common shares on the date of closing) and a four-year warrant to purchase 44,550 shares of the Company’s common stock at an exercise price of $0.40 per share (the closing price of the Company’s common stock on the Series A Debentures completion date). All warrants issued to Cantone were immediately exercisable upon issuance. We registered the common shares underlying the Series A Debentures in a registration statement on Form S-3 filed with the U.S. Securities and Exchange Commission (“SEC”) on April 15, 2009 and amended on May 5, 2009. On June 10, 2009, the SEC issued a notice of effectiveness related to this Form S-3, as amended.

We incurred $131,000 in expenses related to the offering, including $12,000 in expense related to warrants issued to Cantone. We amortized $8,000 of expense related to these debt issuance costs in both the three months ended June 30, 2012 and June 30, 2011, of which less than $1,000 was share based payment expense related to the Cantone warrants. The unamortized balance was $3,000 as of June 30, 2012, and $19,000 as of December 31, 2011. We also had accrued interest expense related to the Series A Debentures of $31,000 at both June 30, 2012 and December 31, 2011. The Company recognized $38,000 in interest expense during both the six months ended June 30, 2011 and June 30, 2010. The Company recognized $19,000 in interest expense during both the three months ended June 30, 2012 and the three months ended June 30, 2011.

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Litigation

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Legal Matters and Contingencies [Text Block]

Note C – Litigation

On December 16, 2010, we filed a complaint in the Supreme Court of the State of New York in Columbia County against Martin R. Gould (“Gould”), Jacqueline Gale (“Gale”), Advanced Diagnosticum Products, Inc. (“ADPI”) and Biosure, Inc. (“Biosure”), together the “Defendants”. The complaint alleges that Gould, our former Chief Science Officer and Executive Vice President of Technology, and Gale, our former Vice President of Manufacturing and Development, were performing illegal, competitive, employment-related services for ADPI and Biosure during their employment with the Company, were using Company resources to perform such services, and were doing so in their capacity as employees and/or officers of ADPI and Biosure. Because the Defendants continue to engage in illegal activity, in addition to the compensatory and punitive damages noted below, the complaint also seeks an injunction restraining the Defendants from engaging in further wrongdoing. The Defendants exercised their right to move the action to federal court, and proceedings are now pending in the United States District Court for the District of New Jersey.

In the Complaint, we assert claims of breach of duty of loyalty, breach of contract, violation of fiduciary duty and unfair competition and conversion specifically against Gould, and claims of breach of duty, violation of fiduciary duty and unfair competition and conversion specifically against Gale. In addition to these claims, we assert claims of conversion, tortious interference with contract, interference with prospective advantage and common law misappropriation of trade secret information against all Defendants. We are seeking judgment on nine (9) causes of action for compensatory damages against Defendants in such amount as may be established at trial; together with punitive damages in the amount of one million dollars ($1,000,000) for each cause of action in the Complaint.

On March 28, 2011, the Defendants filed an Answer to our Complaint and Defendant Gould filed a counter-claim against the Company in the amount of $150,000 alleging breach of contract related to an employment agreement between Gould and the Company. We filed a reply to Gould’s counterclaim on April 13, 2011. Our reply asserted that the Company did not breach the prior employment agreement in place with Gould, that the Company provided the required written notice of non-renewal of Gould’s employment agreement, and that Gould’s employment agreement expired on May 31, 2010; at which time Gould became an at-will employee of the Company. Gould was subsequently terminated for cause on July 28, 2010. A conference was held with the court on June 16, 2011, at which issues in dispute were discussed and a discovery schedule was set. The Company has responded to the Defendants discovery requests and as of the date of this report, the Company is awaiting complete responsive discovery items from Defendants. Depositions in the matter are ongoing. Depositions and discovery were expected to be completed by April 30, 2012, however, the discovery due date was postponed to September 28, 2012 due to an unexpected personal issue that occurred involving the Defendants attorney; this unexpected issue was unrelated to the case or the claims of the case.

As previously disclosed, we received a warning letter from the U.S. Food and Drug Administration (“FDA”) in July 2009 that alleges we re marketing our point of collection oral fluid drug test, OralStat, in workplace settings without marketing clearance or approval. A warning letter is considered by FDA to be informal and advisory. While a warning letter communicates FDA’s position on a matter it does not commit the FDA to taking enforcement action. On July 10, 2012, we entered into a Consent Decree with the FDA (see Part I; Item 1; Note F – Subsequent Events).

In addition, from time to time, the Company is named in legal proceedings in connection with matters that arose during the normal course of business. While the ultimate result of any such litigation cannot be predicted, if we are unsuccessful in defending any such litigation, the resulting financial losses could have an adverse effect on the financial position, results of operations and cash flows of the Company. We are aware of no significant litigation loss contingencies for which management believes it is both probable that a liability has been incurred and that the amount of the loss can be reasonably estimated.

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Balance Sheets (USD $)	Jun. 30, 2012	Dec. 31, 2011
ASSETS
Cash and cash equivalents	$ 15,000	$ 93,000
Accounts receivable, net of allowance for doubtful accounts of $50,000 at June 30, 2012, and $66,000 at December 31, 2011	1,159,000	883,000
Inventory, net of allowance for slow moving and obsolete inventory of $449,000 at June 30, 2012 and $401,000 at December 31, 2011	3,390,000	3,239,000
Prepaid expenses and other current assets	68,000	61,000
Total current assets	4,632,000	4,276,000
Property, plant and equipment, net	1,252,000	1,304,000
Debt issuance costs, net	3,000	26,000
Patents	23,000	0
Other assets	30,000	30,000
Total assets	5,940,000	5,636,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	1,384,000	631,000
Accrued expenses and other current liabilities	139,000	217,000
Wages payable	232,000	264,000
Line of credit	377,000	397,000
Current portion of long-term debt	1,420,000	872,000
Current portion of unearned grant	10,000	10,000
Total current liabilities	3,562,000	2,391,000
Other liabilities	144,000	143,000
Long-term debt	0	608,000
Related party note	124,000	124,000
Total liabilities	3,830,000	3,266,000
COMMITMENTS AND CONTINGENCIES
Stockholders' equity:
Preferred stock; par value $.01 per share; 5,000,000 shares authorized, none issued and outstanding at June 30, 2012 and December 31, 2011
Common stock; par value $.01 per share; 50,000,000 shares authorized; 21,744,768 issued and outstanding at June 30, 2012 and December 31, 2011	217,000	217,000
Additional paid-in capital	19,409,000	19,386,000
Accumulated deficit	(17,516,000)	(17,233,000)
Total stockholders' equity	2,110,000	2,370,000
Total liabilities and stockholders' equity	$ 5,940,000	$ 5,636,000

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Basis of Reporting

6 Months Ended

Jun. 30, 2012

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Basis of Accounting [Text Block]

Note A - Basis of Reporting

The accompanying unaudited interim financial statements of American Bio Medica Corporation (the “Company”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Regulation S-X. Accordingly, these unaudited interim financial statements do not include all information and footnotes required by U.S. GAAP for complete financial statement presentation. These unaudited interim financial statements should be read in conjunction with our audited financial statements and related notes contained in our Annual Report on Form 10-K for the year ended December 31, 2011. In the opinion of management, the interim financial statements include all normal, recurring adjustments which are considered necessary for a fair presentation of the financial position of the Company at June 30, 2012, the results of our operations for the three and six month periods ended June 30, 2012 and June 30, 2011, and cash flows for the six month periods ended June 30, 2012 and June 30, 2011.

Operating results for the three and six months ended June 30, 2012 are not necessarily indicative of results that may be expected for the year ending December 31, 2012. Amounts at December 31, 2011 are derived from our audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2011.

During the six months ended June 30, 2012, there were no significant changes to our critical accounting policies, which are included in our Annual Report on Form 10-K for the year ended December 31, 2011.

The preparation of these interim financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate estimates, including those related to product returns, bad debts, inventories, income taxes, warranty obligations, contingencies and litigation. We base estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

These unaudited interim financial statements have been prepared assuming that the Company will continue as a going concern and, accordingly, do not include any adjustments that might result from the outcome of this uncertainty. Our independent registered public accounting firm’s report on the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2011, contained an explanatory paragraph regarding our ability to continue as a going concern. As of the date of this report, our current cash balances, together with cash generated from future operations and amounts available under current credit facilities may not be sufficient to fund operations for the next 12 months if sales levels do not improve (and an inability to market and sell our point of collection oral fluid drug tests in the Workplace market would negatively impact our revenues). If cash generated from operations is not sufficient to satisfy our working capital and capital expenditure requirements, we will be required to sell additional equity or obtain additional credit facilities. There is no assurance that such financing will be available or that we will be able to complete financing on satisfactory terms, if at all.

Recent Accounting Standards

There were no new standards adopted in the six months ended June 30, 2012 that are expected to have a material impact on our interim financial statements.

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Net Income / (Loss) Per Common Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note B – Net Income / (Loss) Per Common Share

Basic net income / (loss) per common share is calculated by dividing the net income / (loss) by the weighted average number of outstanding common shares during the period. Diluted net income / (loss) per common share includes the weighted average dilutive effect of stock options and warrants. Potential common shares outstanding as of June 30, 2012 and 2011:

	June 30, 2012		June 30, 2011
Warrants		75,000		75,000
Options		3,164,080		3,036,580

The number of securities not included in the diluted net income / (loss) per common share for the three months ended June 30, 2012 and June 30, 2011 (because the effect would have been anti-dilutive) were 3,239,080 and 3,028,784, respectively. The number of securities not included in the diluted net income / (loss) per common share for the six months ended June 30, 2012 and June 30, 2011 (because the effect would have been anti-dilutive) were 3,239,080 and 3,111,580, respectively.

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Balance Sheets [Parenthetical] (USD $)	Jun. 30, 2012	Dec. 31, 2011
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 50,000	$ 66,000
Inventory, allowance for slow moving and obsolete inventory (in dollars)	$ 449,000	$ 401,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	21,744,768	21,744,768
Common stock, shares outstanding	21,744,768	21,744,768

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Stock Option Grants (Details Textual) (USD $)	6 Months Ended		6 Months Ended	1 Months Ended			3 Months Ended		6 Months Ended		9 Months Ended	12 Months Ended						6 Months Ended
	Jun. 30, 2012	Jun. 29, 2009	Jun. 30, 2012 Medallion Financing Stock Option [Member]	Apr. 20, 2012 Medallion Financing Stock Option [Member] Cipkowski [Member]	Apr. 20, 2012 Medallion Financing Stock Option [Member] Urquhart [Member]	Apr. 20, 2012 Medallion Financing Stock Option [Member] Jaskiewicz [Member]	Jun. 30, 2012 Two Thousand and One Plan [Member]	Jun. 30, 2011 Two Thousand and One Plan [Member]	Jun. 30, 2012 Two Thousand and One Plan [Member]	Jun. 30, 2011 Two Thousand and One Plan [Member]	Dec. 31, 2011 Two Thousand and One Plan [Member]	Dec. 31, 2011 Two Thousand and One Plan [Member]	Mar. 31, 2012 Two Thousand and One Plan [Member]	Jul. 01, 2011 Two Thousand and One Plan [Member] Rosenthal Financing Stock Option [Member]	Jul. 01, 2009 Two Thousand and One Plan [Member] Rosenthal Financing Stock Option [Member] Cipkowski [Member]	Jul. 01, 2011 Two Thousand and One Plan [Member] Rosenthal Financing Stock Option [Member] Jaskiewicz [Member]	Dec. 31, 2010 Two Thousand and One Plan [Member] Employee Option Grant [Member]	Jun. 30, 2012 Two Thousand and One Plan [Member] Medallion Financing Stock Option [Member]
Shares Held in Employee Stock Option Plan, Allocated (in shares)				250,000	250,000	150,000									500,000	50,000	275,000
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price (in dollars per share)				$ 0.18	$ 0.18	$ 0.18									$ 0.20	$ 0.12	$ 0.09
Installments Periods of Vested Option				3 years	3 years	3 years				3 years
Subordinated Debt	$ 124,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Percentage											100.00%	100.00%		100.00%
Amortized Share-based Payment Expenses										78,000
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	1,000						6,000	6,000	13,000	13,000	19,000	25,000
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized													7,000
Due to Affiliate		124,000
Share-based Payment Expense in Future			8,000															2,000
Fair Value Assumptions, Expected Dividend Rate			0.00%							0.00%								0.00%
Fair Value Assumptions, Risk Free Interest Rate			1.99%							3.22%								1.99%
Fair Value Assumptions, Expected Term			10 years							10 years								10 years
Fair Value Assumptions, Expected Volatility Rate			88.00%							91.00%								88.00%
Share-based Payment Expense Amortized Over Service Period	3 years		3 years															3 years
stock option grants recognize this share-based payment expense			90,000															27,000
stock option grants unrecognized this share-based payment expense			$ 82,000															$ 25,000

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Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Aug. 13, 2012
Entity Registrant Name	AMERICAN BIO MEDICA CORP
Entity Central Index Key	0000896747
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	abmc
Entity Common Stock, Shares Outstanding		21,833,003
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2012

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Subsequent Events (Details Textual) (Subsequent Event [Member], USD $)	6 Months Ended
	Jun. 30, 2012
Series A Debentures [Member]
Subsequent Event, Date	Jul. 31, 2012
Cantone Asset Management [Member]
Subsequent Event, Date	Aug. 01, 2012
Share Price	0.17
Percentage Of Value Of Restricted Stock Issued	10.00%
Stock Issued During Period, Value, Restricted Stock Award, Gross	15,000
Bridge Loan [Member]
Subsequent Event, Date	Jul. 30, 2012
Bridge Loan	150,000
Debt Maturity Date	Aug. 01, 2013
Short-term Debt, Weighted Average Interest Rate	15.00%
Date Of Subsequent Event	Aug. 08, 2012
Stock Issued During Period, Shares, Restricted Stock Award, Gross	88,235
Agent Agreement [Member]
Subsequent Event, Date	Jul. 25, 2012
Debt Instrument, Maturity Date	Aug. 01, 2013
Debt Instrument Interest Rate Effective Percentage Before Amendment	10.00%
Debt Instrument, Interest Rate, Effective Percentage	15.00%
Percentage Of Cash Fee	5.00%
Cash Fee	37,500
Share Price	0.17
Exercisable Term Warrants	3 years
Percentage Of Non Accountable Expense	1.00%
Non Accountable Expense	7,500
Legal Fee Reimbursed	5,000
Number Of Debt Instrument Holders	37
Number Of Debt Instrument Holders Agreement Entered	32
Value Of Debt Instrument Extended	645,000
Value Of Debt Instrument Not Extended	105,000
Number Of Debt Instrument Holders Agreement Not Entered	5

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Statements of Operations (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Net sales	$ 2,462,000	$ 2,486,000	$ 4,758,000	$ 4,533,000
Cost of goods sold	1,420,000	1,335,000	2,753,000	2,620,000
Gross profit	1,042,000	1,151,000	2,005,000	1,913,000
Operating expenses:
Research and development	55,000	57,000	108,000	109,000
Selling and marketing	529,000	445,000	1,050,000	902,000
General and administrative	488,000	474,000	1,046,000	1,100,000
Operating Expenses, Total	1,072,000	976,000	2,204,000	2,111,000
Operating loss	(30,000)	175,000	(199,000)	(198,000)
Other expense:
Loss on disposal of property, plant and equipment	0	(1,000)	0	(1,000)
Interest income	1,000	0	5,000	0
Interest expense	(45,000)	(50,000)	(91,000)	(101,000)
Nonoperating Income (Expense), Total	(44,000)	(51,000)	(86,000)	(102,000)
Net (loss) / income before tax	(74,000)	124,000	(285,000)	(300,000)
Income tax (expense) / benefit	(3,000)	(1,000)	2,000	(1,000)
Net (loss) / income	$ (77,000)	$ 123,000	$ (283,000)	$ (301,000)
Basic and diluted (loss) / income per common share (in dollars per share)	$ 0.00	$ 0.01	$ (0.01)	$ (0.01)
Weighted average number of shares outstanding - basic & diluted (in shares)			21,744,768	21,744,768
Weighted average number of shares outstanding - basic (in shares)	21,744,768	21,744,768
Weighted average number of shares outstanding - diluted	21,744,768	21,827,564

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Net Income / (Loss) Per Common Share (Table)

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Reconciliation [Table Text Block]

Potential common shares outstanding as of June 30, 2012 and 2011:

	June 30, 2012		June 30, 2011
Warrants		75,000		75,000
Options		3,164,080		3,036,580

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Subsequent Events

6 Months Ended

Jun. 30, 2012

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Note F – Subsequent Events

On July 10, 2012, we announced in a press release that we entered into a Consent Decree of Permanent Injunction (the “Consent Decree”) with the U.S. Food and Drug Administration (“FDA”). The Consent Decree stems from a Warning Letter we received in July 2009 related to the sale of our oral fluid drug test in the workplace testing market. As previously disclosed in our periodic and current reports filed with the SEC, the Warning Letter indicated that we were marketing our point of collection oral fluid drug test, OralStat, in workplace settings without marketing clearance or approval. We communicated to the FDA our belief (based on legal opinion) that marketing clearance was not required in non-clinical markets. The FDA continued to disagree with our interpretation of FDA regulations related to medical devices, and the FDA continued to assert jurisdiction of drug testing performed in the workplace. We also advised FDA that we were willing to obtain marketing clearance but that specific technical and scientific issues existed when attempting to utilize FDA’s draft guidance for our OralStat (because the draft guidance was written for urine drug tests). Nevertheless, we were unable to reach a consensus with the FDA on neither the jurisdiction issue nor the technical issues.

Under the terms of the Consent Decree, we will be allowed to continue to market our OralStat drug test in the workplace market while we take action to obtain a 510(k) marketing clearance. More specifically, FDA will provide the Company with its most recent guidance on the clinical and analytical studies that need to be conducted to gather data in support of a 510(k) submission for OralStat. We will then have a total of 396 days to discuss protocols with FDA, complete our analytical and clinical studies and submit a substantially complete 510(k). We have agreed to withdraw the OralStat product from the workplace market if any of the following events occur: 1) we do not submit a substantially complete 510(k) within this specified time period, 2) we fail to submit additional information within time frames specified by FDA, 3) we withdraw our submission, or 4) our 510(k) submission results in FDA’s determination that the product is not substantially equivalent. On August 3, 2012 the Consent decree was approved and entered by the United States District Court for the Northern District of New York, and on August 3, 2012, we received guidance from FDA.

On July 25, 2012, we entered into a Placement Agent Agreement (the “Agent Agreement”) with Cantone. Under the terms of the Agreement, Cantone will act as our exclusive placement agent in connection with a proposed amendment of the Company’s existing Series A Debentures (see “Debenture Financing” under Part I; Item I; Note D – Line of Credit and Debt). Under the proposed amendment, the Series A Debentures would be amended to reflect an extended due date of August 1, 2013 and the interest rate during the extension period would be increased from 10% to 15% per annum, due quarterly in arrears.

As compensation for their placement agent services, Cantone received a cash fee of 5% of the gross amount of existing Series A Debentures, or $37,500, and the current warrants issued to Cantone (in connection with their services as placement agent in the original Series A Debenture financing) have been amended to reflect a purchase price of $0.17 per share and a new term of three (3) years. Cantone also received 1% of the gross amount of Series A Debentures, or $7,500, as a non-accountable expense allowance and we reimbursed Cantone $5,000 in legal fees incurred in connection with the amendment of the Series A Debentures. We will amortize the costs associated with the amendment of the Series A Debentures over the term of the extension (12 months).

On July 30, 2012, we entered into a Bridge Loan Agreement and Note (the “Bridge Loan”) with Cantone Asset Management, LLC (“CAM”). The Bridge Loan will be in the amount of $150,000 and will used to cover any amounts due to Holders of the Series A Debentures that do not wish to amend the Series A Debentures with any remaining amount to be used for working capital purposes (such working capital purposes will include but not necessarily be limited to, paying the placement agent fees and expenses previously indicated under the Agent Agreement).

The maturity date of the Bridge Loan is August 1, 2013 and it bears simple interest in advance of 15%. In addition to the interest, on August 1, 2012, the Company instructed its transfer agent to issue CAM restricted stock of the Company equal to 10% of the gross amount of existing Series A Debentures, or $15,000 using a value of $0.17 per common share. On August 8, 2012, 88,235 restricted common shares were issued to CAM.

On July 31, 2012, we entered into an Agreement to the Series A Debenture (the “Debenture Amendment”) with thirty-two of the thirty-seven holders of Series A Debentures (the “Debenture Holders”) (representing $645,000 of Series A Debentures). As previously indicated, the Debenture Amendment extends the due date of the Series A Debenture to August 31, 2013 and increased the interest rate to 15% per annum, payable quarterly in arrears. All other terms of the Series A Debentures remain unchanged. Five of the Debenture Holders (representing $105,000 in Series A Debentures) did not wish to extend the Series A Debentures and we will use proceeds from the Bridge Loan to pay principal amounts due to these non-extending Debenture Holders.

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Litigation (Details Textual) (USD $)	1 Months Ended
	Mar. 31, 2011	Mar. 31, 2011 Pending Litigation [Member]	Dec. 31, 2010 Each Cause Of Actions [Member]
Litigation Settlement, Gross		$ 150,000	$ 1,000,000
Loss Contingency Numberof Causesof Actions Against Defendants	9

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Net Income / (Loss) Per Common Share (Details)	Jun. 30, 2012	Jun. 30, 2011
Warrants	75,000	75,000
Options	3,164,080	3,036,580

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Net Income / (Loss) Per Common Share (Details Textual)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	3,239,080	3,028,784	3,239,080	3,111,580

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Line of Credit and Debt (Details Textual) (USD $)	3 Months Ended		6 Months Ended				3 Months Ended	6 Months Ended		1 Months Ended	3 Months Ended		6 Months Ended				3 Months Ended		6 Months Ended					1 Months Ended	6 Months Ended		1 Months Ended			3 Months Ended	6 Months Ended	12 Months Ended		6 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Aug. 01, 2008	Jun. 30, 2012 Medallion [Member]	Jun. 30, 2012 Medallion [Member]	Apr. 02, 2012 Medallion [Member]	Feb. 28, 2012 Rosenthal [Member]	Mar. 31, 2012 Rosenthal [Member]	Jun. 30, 2011 Rosenthal [Member]	Jun. 30, 2012 Rosenthal [Member]	Jun. 30, 2011 Rosenthal [Member]	Dec. 31, 2011 Rosenthal [Member]	Mar. 31, 2011 Rosenthal [Member]	Jun. 30, 2012 First Niagara Bank Mortgage Consolidation Loan [Member]	Jun. 30, 2011 First Niagara Bank Mortgage Consolidation Loan [Member]	Jun. 30, 2012 First Niagara Bank Mortgage Consolidation Loan [Member]	Jun. 30, 2011 First Niagara Bank Mortgage Consolidation Loan [Member]	Mar. 31, 2012 First Niagara Bank Mortgage Consolidation Loan [Member]	Dec. 31, 2011 First Niagara Bank Mortgage Consolidation Loan [Member]	Feb. 23, 2011 First Niagara Bank Mortgage Consolidation Loan [Member]	May 31, 2007 R I C O H [Member]	Jun. 30, 2012 R I C O H [Member]	Dec. 31, 2011 R I C O H [Member]	Oct. 31, 2010 Marlin Leasing [Member]	Jun. 30, 2012 Marlin Leasing [Member]	Dec. 31, 2011 Marlin Leasing [Member]	Jun. 30, 2012 Series A Debentures [Member]	Jun. 30, 2012 Series A Debentures [Member]	Dec. 31, 2011 Series A Debentures [Member]	Aug. 01, 2008 Series A Debentures [Member]	Jun. 30, 2012 Cantone Series One Four Year Warrants [Member]	Dec. 31, 2011 Cantone Series One Four Year Warrants [Member]	Jun. 30, 2012 Wall Street Journal Prime [Member]
Line of Credit Facility, Affiliated Borrower			Medallion
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,000,000		$ 1,000,000				$ 545,000	$ 545,000	$ 1,000,000			$ 1,500,000		$ 1,500,000
Line of Credit Facility, Asset Restrictions			The maximum amount available under the Medallion Line of Credit is subject to an Advance Rate that consists of: 85% of eligible accounts receivable and up to 30% of eligible inventory (not to exceed $150,000). "Eligible Receivables" are defined as those receivables that are paid within ninety (90) days of the invoice date. Eligible Receivables consists of both domestic sales and those international sales made in North America. An Eligible Receivable becomes ineligible if more than 25% of the aggregate receivables due from a customer are more than ninety (90) days past due or the aggregate receivables from a customer exceed 25% of the then total outstanding Eligible Receivables. "Eligible Inventory" is defined as raw materials and finished goods that are not obsolete or unmerchantable and are acceptable to Medallion. From the loan availability, we drew approximately $566,000 to pay off the Rosenthal Line of Credit on the Closing Date.
Line Of Credit Facility Administrative Fees Amount For Month														1,500
Line Of Credit Facility Administrative Fees Amount For Year														15,000
Line Of Credit Facility Additional Administrative Fees Amount											0	11,000		16,000
Line Of Credit Facility Periodic Payment Interest												4,000	7,000	4,000
Line Of Credit Facility, Covenant Terms, Minimum Tangible Net Worth, Amended																2,750,000
Line Of Credit Facility, Covenant Terms, Minimum Tangible Net Worth, Initial																4,000,000
Line Of Credit Facility, Covenant Terms, Minimum Tangible Net Worth											500,000					2,000,000
Minimum Maintainable Equity			So long as any obligations are due to Medallion under the Medallion Line of Credit, we must maintain stockholders'' equity of at least $1,750,000, and as of the date of this report, we are in compliance with this requirement.
Line of Credit Facility, Amount Outstanding	566,000		566,000				377,000	377,000							397,000
Line Of Credit Facility Amount Outstanding Collateralized By Accounts Receivable															361,000
Line Of Credit Facility Collateralized By Accounts Receivable Interest Rate															8.00%
Line Of Credit Facility Amount Outstanding Collateralized By Inventory															36,000
Line Of Credit Facility Amount Outstanding Collateralized By Inventory Interest Rate															9.00%
Line Of Credit Fecility Availability Of Additional Loans							168,000	168,000							159,000
Line of Credit Facility, Current Borrowing Capacity															556,000
Amortization of debt issuance costs			23,000	22,000
Debt Consolidation Loan, Maturity Date																				Mar. 01, 2013
Debt Consolidation Loan, Amount																							815,000
Mortgage Consolidation Loan Interest Rate																							8.25%
Line of Credit Facility, Periodic Payment																				14,000
Debt Instrument, Periodic Payment, Principal																				15,000
Legal Fees																				2,000
Unamortized Balance Of Legal Cost																					1,000
Debte Consolidation Loan Outstanding																	668,000		668,000			725,000
Interest Expense, Debt							8,000	8,000									14,000	16,000	29,000	34,000											31,000	31,000
Capital Lease Obligations																								17,000			4,000
Capital Lease Obligation Maturity Period																								5 Years			2 Years
Capital Lease Obligation Interest Rate																								14.11%			14.46%
Capital Lease Obligation Outstanding																									0	3,000		1,000	2,000
Debentures Gross Proceeds Value																																	750,000
Debentures Net Proceeds Value																																	631,000
Debt Issuance Agent Fee and Expenses						52,500																											54,000
Debt Issuance Legal and Accounting Fee																																	63,000
Debt Issuance State Filing Fee																																	2,000
Placement Agent Fee Percentage						7.00%																											10.00%
Debt Instrument, Maturity Date																														Aug. 01, 2012
Class of Warrant or Right, Exercise Price of Warrants or Rights																																		$ 0.37	$ 0.4
Series A Debentures In Filling Period																																		Apr. 15, 2009
Series A Debentures In Amended Period																																		May 05, 2009
Class of Warrant or Right, Number of Securities Called by Warrants or Rights																																		30,450	44,550
Class of Warrant or Right, Expense or Revenue Recognized			$131,000																															$12,000
Amortization Of Debt Issuance Cost	8,000	8,000											7,000	7,000
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost			1,000
Debt issuance costs, net	3,000		3,000		26,000																													3,000	19,000
Interest and Debt Expense	19,000	19,000	38,000	38,000				20,000					41,000
Line Of Credit Financial Agreement Termination Date										May 31, 2012
Debt Consolidation Loan Amortization Period																				6 years
Line Of Credit Facility Advance Rate On Eligible Accounts Receivable									85.00%
Line Of Credit Facility Advance Rate On Eligible Inventory									30.00%
Line Of Credit Non Refundable Fees							$ 10,000
Line of Credit Facility, Commitment Fee Description							We were charged a facility fee of 1% of the balance of the Medallion Line of Credit on the Closing Date and will be charged the same facility fee of 1% on each anniversary of the Closing Date thereafter.
Line of Credit Facility, Covenant Terms			We are subject to two audits per year by Medallion (provided we are not in default) at a rate of $950.00 per person per day. Prior to closing, we also paid a non-refundable fee in the amount of $10,000 to Medallion for field exam and due diligence costs.				we must maintain stockholders' equity of at least $1,750,000
Debt Instrument, Interest Rate Terms							annual rate equal to 4% above a base rate
Debt Instrument Default Interest Rate Terms							an annual rate of 2% above the interest rate in effect at the time of such default
Line of Credit Facility, Interest Rate During Period																																				3.25%
Capital Lease Agreement																									In April 2012, we notified RICOH that we were opting to purchase the copier for $1.00 as provided in our lease.

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Statements of Cash Flows (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net loss	$ (283,000)	$ (301,000)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	61,000	137,000
Loss on disposal of property, plant and equipment	0	1,000
Amortization of debt issuance costs	23,000	22,000
Provision for bad debts	(16,000)	(14,000)
Provision for slow moving and obsolete inventory	48,000	(6,000)
Share-based payment expense	23,000	25,000
Changes in:
Accounts receivable	(261,000)	(322,000)
Inventory	(199,000)	389,000
Prepaid expenses and other current assets	(7,000)	(35,000)
Accounts payable	751,000	168,000
Accrued expenses and other current liabilities	(71,000)	(63,000)
Wages payable	(32,000)	29,000
Other liabilities	1,000	1,000
Net cash provided by operating activities	38,000	31,000
Cash flows from investing activities:
Purchase of property, plant and equipment	(8,000)	(61,000)
Patent application costs	(23,000)	0
Net cash used in investing activities	(31,000)	(61,000)
Cash flows from financing activities:
Payments on debt financing	(65,000)	(72,000)
Net proceeds from line of credit	(20,000)	87,000
Net cash (used in) / provided by financing activities	(85,000)	15,000
Net decrease in cash and cash equivalents	(78,000)	(15,000)
Cash and cash equivalents - beginning of period	93,000	37,000
Cash and cash equivalents - end of period	15,000	22,000
Supplemental disclosures of cash flow information
Cash paid during period for interest	$ 93,000	$ 101,000

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Stock Option Grants

6 Months Ended

Jun. 30, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note E – Stock Option Grants

Rosenthal Financing Option Grants

As a condition to the Financing Agreement with Rosenthal, our Chief Executive Officer, Stan Cipkowski (“Cipkowski”) was required to execute a Validity Guarantee (the “Validity Guarantee”) that includes representations and warranties with respect to the validity of the Company’s receivables and guarantees the accuracy of the Company’s reporting to Rosenthal related to its receivables and inventory. The Validity Guarantee places Cipkowski’s personal assets at risk in the event of a breach of such representations, warranties and guarantees. As part of the compensation for his execution of the Validity Guarantee, on July 1, 2009, Cipkowski was awarded an option grant representing 500,000 common shares of the Company under its Fiscal 2001 Stock Option Plan (the “2001 Plan”), at an exercise price of $0.20, the closing price of the Company’s common shares on the date of the grant. The option grant vests over 3 years in equal installments, and the first 33% of the grant vested on July 1, 2010 and the second 33% vested on July 1, 2011. We will recognize $78,000 in share-based payment expense amortized over the required service period of 3 years. We recognized $6,000 in share-based payment expense for this grant in both the three months ended June 30, 2012 and June 30, 2011, and $13,000 in share-based payment expense for this grant in both the six months ended June 30, 2012 and June 30, 2011. As of June 30, 2012, all share-based payment expense for this grant was recognized.

On July 1, 2011, the Company issued an option grant under the 2001 Plan to purchase 50,000 shares of common stock to the Company’s President and Chairman of the Board Edmund M. Jaskiewicz (“Jaskiewicz”) at an exercise price of $0.12, the closing price of the Company’s common shares on the date of the grant. The option grant was immediately exercisable. The fair value of this stock option grant was estimated utilizing the Black-Scholes option-pricing model. The following weighted average assumptions were used: dividend yield of 0%; risk-free interest rate of 3.22%, expected life of 10 years; and stock price volatility of 91%. The value of this stock option grant totaled $6,000 and the Company recognized this share-based payment expense fully in the three months ended June 30, 2011.

The options were issued to Mr. Jaskiewicz as the third and final stock option grant representing compensation for his execution of an Agreement of Subordination and Assignment (“Subordination Agreement”) required as a condition to the Rosenthal Line of Credit. The first stock option grant was issued to Jaskiewicz in July 2009 when the Subordination Agreement was executed, and the second stock option grant was issued to Jaskiewicz in July 2010. The Subordination Agreement was related to $124,000 owed to Jaskiewicz by the Company as of June 29, 2009 (the “Jaskiewicz Debt”). Under the Subordination Agreement, the Jaskiewicz Debt was not payable, was junior in right to the Rosenthal Line of Credit and no payment could be accepted or retained by Jaskiewicz unless and until the Company paid and satisfied in full any obligations to Rosenthal. Furthermore, the Jaskiewicz Debt was assigned and transferred to Rosenthal as collateral for the Rosenthal Line of Credit.

Employee Grant

On December 31, 2010, we issued options to purchase 275,000 shares of common stock under the 2001 Plan to 4 members of senior management and 8 other employees of the Company at an exercise price of $0.09 (the closing price of the Company’s common shares on the date of the grant). These option grants vested 100% on the one-year anniversary of the date of the grant, or on December 31, 2011. We recognized $25,000 in share-based payment expense over the required service period of one year. We recognized $6,000 of this expense in the three months ended June 30, 2011 and $12,000 of this expense in the six months ended June 30, 2011. No expense was recognized in the three or six months ended June 30, 2012 as the remaining $13,000 of this expense was recognized during the remaining six months of the year ended December 31, 2011.

Medallion Line of Credit Stock Options

As a condition to the Medallion Line of Credit, Cipkowski and our controller J. Duncan Urquhart (“Urquhart”) were each required to execute Validity Guarantees (the “Validity Guarantees”). Under the Validity Guarantees, Cipkowski and Urquhart provide representations and warranties with respect to the validity of our receivables as well as guaranteeing the accuracy of our reporting to Medallion related to the Company’s receivables. As compensation for their execution of the Validity Guarantees, on April 20, 2012, Cipkowski and Urquhart were each awarded an option grant representing 250,000 common shares of the Company under the Company’s Fiscal 2001 stock option plan, at an exercise price of $0.18, the closing price of our common shares on the date of the grant. The option grants vest over three (3) years in equal installments.

The fair value of the Cipkowski and Urquhart stock option grants was estimated utilizing the Black-Scholes option-pricing model. The following weighted average assumptions were used: dividend yield of 0%; risk-free interest rate of 1.99; expected life of 10 years; and stock price volatility of 88%. The value of these stock option grants totaled $90,000 and the Company will recognize this share-based payment expense over the vesting period of 3 years. We recognized $8,000 in share-based payment expense in the three (and six) months ended June 30, 2012. As of June 30, 2012, there was $82,000 in unrecognized share-based payment expense with 33 months remaining.

As another condition to the financing, Jaskiewicz was required to execute another Subordination Agreement (“Subordination Agreement”) related to the Jaskiewicz Debt (the $124,000 currently owed to Jaskiewicz by the Company). Under the Subordination Agreement, the Jaskiewicz Debt is not payable, is junior in right to the Medallion Line of Credit and no payment may be accepted or retained by Jaskiewicz for the Jaskiewicz Debt unless and until we have paid and satisfied in full any obligations to Medallion. As compensation for his execution of the Subordination Agreement, on April 20, 2012 Jaskiewicz was awarded an option grant representing 150,000 common shares of the Company under the Company’s Fiscal 2001 stock option plan, at an exercise price of $0.18, the closing price of the Company’s common shares on the date of the grant. The option grant vests over three (3) years in equal installments.

The fair value of the Jaskiewicz stock option grant was estimated utilizing the Black-Scholes option-pricing model. The following weighted average assumptions were used: dividend yield of 0%; risk-free interest rate of 1.99; expected life of 10 years; and stock price volatility of 88%. The value of the stock option grant totaled $27,000 and the Company will recognize this share-based payment expense over the vesting period of 3 years. We recognized $2,000 in share-based payment expense in the three (and six) months ended June 30, 2012. As of June 30, 2012, there was $25,000 in unrecognized share-based payment expense with 33 months remaining.