Exhibit 99.1
 |
Contacts:
Melissa
A. Waterhouse
Chief
Executive Officer
(800)
227-1243, Ext 107
|
FOR
IMMEDIATE RELEASE:
ABMC REPORTS THIRD QUARTER 2019 RESULTS
Kinderhook, N.Y., November 14, 2019 – American Bio
Medica Corporation (OTCPK: ABMC) today announced financial results
for the three and nine months ended September 30,
2019.
Chief
Executive Officer Melissa A. Waterhouse stated, “Sales in the
third quarter of 2019 increased slightly when compared to the third
quarter of 2018. This is primarily due to increased contract
business; an area we previously indicated would positively impact
sales in the second half of 2019.”
Waterhouse
added, “Operating expenses are down once again due to our
concerted efforts to control expenditures. This, along with
increased sales, enabled us to decrease our operating loss and our
net loss in the third quarter of 2019 when compared to the third
quarter of 2018. From a liability perspective, we are currently in
discussions to extend and/or refinance our debt that matures in
2020. Looking forward, we are hopeful that orders from new
customers and potential new business currently in our pipeline will
enable us to continue reporting increased sales and improved
results from operations in the fourth quarter of
2019.”
Financial Highlights
● Net sales in the
third quarter of 2019 were $895,000, compared to net sales of
$878,000 in the third quarter of 2018, an increase of $17,000, or
1.9%. Net sales in the nine months ended September 30, 2019 were
$2,775,000, compared to net sales of $2,988,000 in the nine months
ended September 30, 2018, a decrease of $213,000, or
7.1%.
● Operating loss was
$81,000 in the third quarter of 2019, compared to an operating loss
of $132,000 in the third quarter of 2018. Operating loss was
$410,000 in the nine months ended September 30, 2019, compared to
an operating loss of $413,000 in the nine months ended September
30, 2018.
● Net loss was
$144,000, or $(0.00) per share, in the third quarter of 2019,
compared to net loss of $202,000, or $(0.01) per share, in the
third quarter of 2018. Net loss was $440,000, or $(0.01) per share,
for the nine months ended September 30, 2019, compared to net loss
of $615,000, or $(0.02) per share, in the nine months ended
September 30, 2018.
For
more information on ABMC or its drug testing products, please visit
www.abmc.com.
About American Bio Medica Corporation
American Bio Medica Corporation manufactures and markets accurate,
cost-effective immunoassay test kits, primarily point of collection
tests for drugs of abuse. The Company and its worldwide
distribution network target the workplace, government, corrections,
clinical and educational markets. ABMC’s Rapid Drug Screen®, Rapid
ONE®, RDS® InCup®, Rapid TOX® and Rapid TOX
Cup® II test for the presence or absence of drugs of abuse in
urine, while OralStat® tests for the presence or absence of
drugs of abuse in oral fluids. ABMC’s Rapid Reader® is a
compact, portable device that, when connected to any computer,
interprets the results of an ABMC drug screen, and sends the
results to a data management system, enabling the test
administrator to easily manage their drug testing
program.
This release may contain forward-looking statements. These
forward-looking statements involve risks and uncertainties that
could cause actual results to differ, and such differences could be
material. Such risks and uncertainties include, but are not limited
to, risks and uncertainties related to the following: continued
acceptance of our products, increased levels of competition in our
industry, acceptance of new products, product development,
compliance with regulatory requirements, including but not limited
to our ability to obtain marketing clearance on our product for our
intended markets, intellectual property rights, our dependence on
key personnel, third party sales and suppliers, trading in our
common shares may be subject to “penny stock” rules,
our history of recurring net losses and our ability to continue as
a going concern. There can be no assurance that the Company will be
successful in addressing such risks and uncertainties and the
Company assumes no duty to update any forward-looking statements
based upon actual results. Investors are strongly encouraged to
review the section entitled “Risk Factors” in the
Company's annual report on Form 10-K for the year ended December
31, 2018, quarterly reports on Form 10-Q, and other periodic
reports on file with the Securities and Exchange Commission for a
discussion of risks and uncertainties that could affect operating
results and the market price of the Company's common
shares.
(financial tables follow)
1
AMERICAN BIO MEDICA CORPORATION
Condensed Statements of Operations
(unaudited)
|
|
For the three
|
For the three
|
For the nine
|
For the nine
|
|
|
months ended
|
months ended
|
months ended
|
months ended
|
|
|
September 30,
2019
|
September 30,
2018
|
September 30,
2019
|
September 30,
2018
|
|
|
|
|
|
|
|
Net
sales
|
$895,000
|
$878,000
|
$2,775,000
|
$2,988,000
|
|
Cost
of goods sold
|
536,000
|
514,000
|
1,805,000
|
1,815,000
|
|
Gross
profit
|
359,000
|
364,000
|
970,000
|
1,173,000
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Research
and development
|
23,000
|
20,000
|
62,000
|
64,000
|
|
Selling
and marketing
|
131,000
|
125,000
|
350,000
|
435,000
|
|
General
and administrative
|
286,000
|
351,000
|
968,000
|
1,087,000
|
|
Total
operating expenses
|
440,000
|
496,000
|
1,380,000
|
1,586,000
|
|
|
|
|
|
|
|
Operating
loss
|
(81,000)
|
(132,000)
|
(410,000)
|
(413,000)
|
|
|
|
|
|
|
|
Other
income / (expense)
|
(63,000)
|
(70,000)
|
(28,000)
|
(200,000)
|
|
|
|
|
|
|
|
Net
loss before tax
|
(144,000)
|
(202,000)
|
(438,000)
|
(613,000)
|
|
|
|
|
|
|
|
Income
tax benefit / (expense)
|
0
|
0
|
(2,000)
|
(2,000)
|
|
|
|
|
|
|
|
Net
loss
|
$(144,000)
|
$(202,000)
|
$(440,000)
|
$(615,000)
|
|
|
|
|
|
|
|
Basic
& diluted loss per common share
|
$(0.00)
|
$(0.01)
|
$(0.01)
|
$(0.02)
|
|
|
|
|
|
|
|
Weighted
average shares outstanding – basic and diluted
|
32,545,776
|
30,241,313
|
32,479,123
|
30,001,598
|
(Condensed Balance Sheets follow)
2
American Bio Medica Corporation
Condensed Balance Sheets
|
|
September 30,
|
|
|
|
2019
(unaudited)
|
December 31,
2018
|
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash
and cash equivalents
|
$15,000
|
$113,000
|
|
Accounts
receivable, net of allowance for doubtful accounts of $34,000 at
September 30, 2019 and $36,000 at December 31, 2018
|
492,000
|
452,000
|
|
Inventory,
net of allowance of $286,000 at September 30, 2019 and $268,000 at
December 31, 2018
|
890,000
|
1,019,000
|
|
Prepaid
expenses and other current assets
|
24,000
|
29,000
|
|
Right
of use asset – operating leases
|
12,000
|
0
|
|
Total
current assets
|
1,433,000
|
1,613,000
|
|
Property,
plant and equipment, net
|
663,000
|
718,000
|
|
Patents,
net
|
118,000
|
123,000
|
|
Right
of use asset – operating leases
|
11,000
|
0
|
|
Other
assets
|
21,000
|
21,000
|
|
Total
assets
|
$2,246,000
|
$2,475,000
|
|
LIABILITIES
AND STOCKHOLDERS’ DEFICIT
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$606,000
|
$359,000
|
|
Accrued
expenses and other current liabilities
|
534,000
|
449,000
|
|
Right
of use liability – operating leases
|
12,000
|
0
|
|
Wages
payable
|
136,000
|
278,000
|
|
Line
of credit
|
431,000
|
502,000
|
|
Current portion of long-term debt, net of deferred finance
costs
|
1,079,000
|
237,000
|
|
Total
current liabilities
|
2,798,000
|
1,825,000
|
|
Long-term
debt/other liabilities, net of current portion and deferred finance
costs
|
0
|
796,000
|
|
Right of use
liability – operating leases
|
11,000
|
0
|
|
Total
liabilities
|
2,809,000
|
2,621,000
|
|
COMMITMENTS
AND CONTINGENCIES
|
|
|
|
Stockholders’
Deficit:
|
|
|
|
Common
stock
|
325,000
|
323,000
|
|
Additional
paid-in capital
|
21,425,000
|
21,404,000
|
|
Accumulated
deficit
|
(22,313,000)
|
(21,873,000)
|
|
Total
stockholders’ deficit
|
(563,000)
|
(146,000)
|
|
Total
liabilities and stockholders’ deficit
|
$2,246,000
|
$2,475,000
|
#####
3