KINDERHOOK, NY / ACCESSWIRE / August 14, 2018 / American Bio Medica Corporation ABMC today announced financial results for the three and six months ended June 30, 2018.
Chief Executive Officer Melissa A. Waterhouse stated, "In the second quarter 2018, we saw improvement in clinical and international sales, and we also saw increased sales of our lower cost product alternative. Unfortunately, these improvements were not enough to offset $236,000 in lost product sales to a government account, which was essentially the decline in sales quarter over quarter. The loss of this account and the actions taken by a former employee/consultant of ABMC are the subject of ongoing litigation. In the second quarter 2018, we signed an agreement to perform contract manufacturing for another diagnostic company. We expect to ship their first order later in 2018. While it is too soon to quantify the impact of this new relationship, we are hopeful it will have a more dramatic impact on our sales going forward."
Waterhouse continued, "Costs related to operations decreased 15.7% in the second quarter 2018, when compared to the second quarter 2017, and 11.9% when comparing the six months ended June 30, 2018 with the six months ended June 30, 2018. The reduced costs are as a result of the Company's efforts to ensure expenses are reasonable and in line with sales. Increased interest costs associated with our line of credit further added to our net loss for the second quarter 2018."
Financial Highlights
- Net sales in the second quarter of 2018 were $1,069,000, compared to $1,306,000 in the second quarter 2017, a decrease of 18.1%. Net sales in the six months ended June 30, 2018 were $2,110,000, compared to $2,621,000 in the six months ended June 30, 2017, a decrease of 19.5%.
- Operating loss was $74,000 in the second quarter of 2018, compared to an operating loss of $21,000 in the second quarter of 2017. Operating loss was $281,000 in the six months ended June 30, 2018, compared to an operating loss of $88,000 in the six months ended June 30, 2017.
- Net loss was $147,000 in the second quarter of 2018, compared to net loss of $71,000 in the second quarter of 2017. Net loss was $413,000 in the six months ended June 30, 2018, compared to net loss of $203,000 in the six months ended June 30, 2017.
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 products 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, 2017, 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.
AMERICAN BIO MEDICA CORPORATION
Condensed Statements of Operations
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For the three
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For the three
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For the six
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For the six
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|||||||||||||
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months ended
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months ended
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months ended
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months ended
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|||||||||||||
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June 30, 2018
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June 30, 2017
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June 30, 2018
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June 30, 2017
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Net sales
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$ | 1,069,000 | $ | 1,306,000 | $ | 2,110,000 | $ | 2,621,000 | ||||||||
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Cost of goods sold
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632,000 | 741,000 | 1,301,000 | 1,491,000 | ||||||||||||
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Gross profit
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437,000 | 565,000 | 809,000 | 1,130,000 | ||||||||||||
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Operating expenses:
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||||||||||||||||
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Research and development
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19,000 | 22,000 | 44,000 | 68,000 | ||||||||||||
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Selling and marketing
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148,000 | 176,000 | 310,000 | 372,000 | ||||||||||||
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General and administrative
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344,000 | 388,000 | 736,000 | 778,000 | ||||||||||||
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Total operating expenses
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511,00 | 586,000 | 1,090,000 | 1,218,000 | ||||||||||||
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Operating (loss) / income
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(74,000 | ) | (21,000 | ) | (281,000 | ) | (88,000 | ) | ||||||||
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Other (expense)/ income
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(71,000 | ) | (49,000 | ) | (130,000 | ) | (114,000 | ) | ||||||||
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Net loss before tax
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(145,000 | ) | (70,000 | ) | (411,000 | ) | (202,000 | ) | ||||||||
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Income tax expense
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(2,000 | ) | (1,000 | ) | (2,000 | ) | (1,000 | ) | ||||||||
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Net loss
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$ | (147,000 | ) | $ | (71,000 | ) | $ | (413,000 | ) | $ | (203,000 | ) | ||||
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Basic & diluted loss per common share
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$ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.01 | ) | ||||
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Weighted average shares outstanding - basic and diluted
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29,936,111 | 29,242,388 | 29,879,754 | 29,043,692 | ||||||||||||
AMERICAN BIO MEDICA CORPORATION
Condensed Balance Sheets
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June 30,
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December 31,
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|||||||
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2018
(unaudited)
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2017
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|||||||
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ASSETS
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|||||||
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Current Assets
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||||||||
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Cash and cash equivalents
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$ | 76,000 | $ | 36,000 | ||||
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Accounts receivable, net of allowance for doubtful accounts of $56,000 at June 30, 2018 and $52,000 at December 31, 2017
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512,000 | 348,000 | ||||||
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Inventory, net of allowance of $541,000 at June 30, 2018 and $500,000 at December 31, 2017
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1,261,000 | 1,473,000 | ||||||
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Prepaid expenses and other current assets
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33,000 | 97,000 | ||||||
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Total current assets
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1,882,000 | 1,954,000 | ||||||
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Property, plant and equipment, net
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754,000 | 792,000 | ||||||
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Patents, net
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119,000 | 109,000 | ||||||
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Other assets
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21,000 | 21,000 | ||||||
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Deferred finance costs - line of credit, net
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0 | 15,000 | ||||||
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Total assets
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$ | 2,776,000 | $ | 2,891,000 | ||||
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LIABILITIES AND STOCKHOLDERS' EQUITY
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||||||||
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Current liabilities
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Accounts payable
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$ | 349,000 | $ | 374,000 | ||||
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Accrued expenses and other current liabilities
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358,000 | 311,000 | ||||||
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Wages payable
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252,000 | 259,000 | ||||||
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Line of credit
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596,000 | 446,000 | ||||||
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Current portion of long
-term debt
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237,000 | 87,000 | ||||||
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Total current liabilities
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1,792,000 | 1,477,000 | ||||||
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Other liabilities/debt
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13,000 | 19,000 | ||||||
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Long-term debt, net of current portion and deferred finance costs
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733,000 | 772,000 | ||||||
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Total liabilities
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2,538,000 | 2,268,000 | ||||||
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COMMITMENTS AND CONTINGENCIES
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Stockholders' Equity:
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||||||||
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Common stock
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300,000 | 298,000 | ||||||
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Additional paid-in capital
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21,196,000 | 21,170,000 | ||||||
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Accumulated deficit
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(21,258,000 | ) | (20,845,000 | ) | ||||
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Total stockholders' equity
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238,000 | 623,000 | ||||||
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Total liabilities and stockholders' equity
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$ | 2,776,000 | $ | 2,891,000 | ||||
Contacts:
Melissa A. Waterhouse
Chief Executive Officer
(800) 227-1243, Ext 107
SOURCE: American Bio Medica Corporation
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