EX-99.1 2 abmc_ex991.htm PRESS RELEASE Blueprint
 
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 
#####
 
 
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