Attached files
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| 8-K - CURRENT REPORT - AMERICAN BIO MEDICA CORP | abmc_8k.htm |
Exhibit 99.1
 |
Contacts:
Melissa
A. Waterhouse
Chief
Executive Officer
(800)
227-1243, EXT 107
|
FOR IMMEDIATE RELEASE:
ABMC REPORTS SECOND QUARTER 2020 RESULTS
Kinderhook, N.Y., September 15, 2020 – American Bio
Medica Corporation (OTCPK: ABMC) today announced financial results
for the three and six months ended June 30, 2020.
Chief
Executive Officer Melissa A. Waterhouse stated, “We are
pleased to report increased sales when comparing 2020 to 2019 (from
both a quarter over quarter and year over year perspective) as a
result of our distribution of the Covid-19 antibody test. There are
a number of sales opportunities for the Covid-19 test in the
pipeline and marketing applications yet to come for the product. In
the meantime, it has been well received by customers. From an
operational perspective, selling and marketing expense increased
(due to commissions paid on sales of the rapid Covid-19 test),
however, all other expenses decreased in the second quarter of 2020
even with increased sales. This allowed us to achieve operating
income in the second quarter of 2020.”
Waterhouse
continued, “As the market for Covid-19 testing is developing,
we are reviewing alternative products to offer our customers in
addition to the antibody tests and looking for avenues to
capitalize on our manufacturing operations. As indicated in our
last announcement, we are seeing some rebound in the drug testing
markets as businesses and treatment programs re-open, but we are
still uncertain if or how long this rebound will continue as the
pandemic progresses.”
Financial Highlights
●
Net sales in the
second quarter of 2020 were $1,758,000, compared to net sales of
$958,000 in the second quarter of 2019; an increase of $800,000, or
83.5%. Net sales in the six months ended June 30, 2020 were
$2,486,000, compared to $1,880,000 in the six months ended June 30,
2019; an increase of $606,000, or 32.2%.
●
Operating income
was $16,000 in the second quarter of 2020, compared to an operating
loss of $155,000 in the second quarter of 2019. Operating loss was
$255,000 in the six months ended June 30, 2020, compared to an
operating loss of $329,000 in the six months ended June 30,
2019.
●
Net loss was
$21,000, or $(0.00) per share in the second quarter of 2020,
compared to net loss of $56,000, or $(0.00) per share, in the
second quarter of 2019. Net loss was $346,000, or $(0.01) per
share, in the six months ended June 30, 2020, compared to net loss
of $296,000, or $(0.01) per share, for the six months ended June
30, 2019.
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, and distributes a rapid test to detect
Covid-19 antibodies. The Company and its worldwide distribution
network target the workplace, government, corrections, clinical and
educational markets.
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, future sales and profit
levels of the rapid antibody test for Covid-19 that we are
distributing, 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, 2019, 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)
AMERICAN BIO MEDICA CORPORATION
Condensed Statements of Operations
(unaudited)
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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
|
|
|
months ended
|
months ended
|
months ended
|
months ended
|
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June 30,
2020
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June 30,
2019
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June 30,
2020
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June 30,
2019
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|
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|
|
|
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Net
sales
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$1,758,000
|
$958,000
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$2,486,000
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$1,880,000
|
|
Cost
of goods sold
|
1,176,000
|
652,000
|
1,714,000
|
1,269,000
|
|
Gross
profit
|
582,000
|
306,000
|
772,000
|
611,000
|
|
|
|
|
|
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Operating
expenses:
|
|
|
|
|
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Research
and development
|
19,000
|
20,000
|
52,000
|
39,000
|
|
Selling
and marketing
|
230,000
|
107,000
|
319,000
|
219,000
|
|
General
and administrative
|
317,000
|
334,000
|
656,000
|
682,000
|
|
Total
operating expenses
|
566,000
|
461,000
|
1,027,000
|
940,000
|
|
|
|
|
|
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Operating
income / (loss)
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16,000
|
(155,000)
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(255,000)
|
(329,000)
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|
|
|
|
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Other
(expense) / income
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(37,000)
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101,000
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(91,000)
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35,000
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|
|
|
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Net
loss before tax
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(21,000)
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(54,000)
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(346,000)
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(294,000)
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|
|
|
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|
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Income
tax expense
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0
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(2,000)
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0
|
(2,000)
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|
|
|
|
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Net
loss
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$(21,000)
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$(56,000)
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$(346,000)
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$(296,000)
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|
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Basic
& diluted loss per common share
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$(0.00)
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$(0.00)
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$(0.01)
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$(0.01)
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Weighted
average shares outstanding – basic and diluted
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35,905,948
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32,521,675
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34,937,236
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32,445,244
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(Condensed Balance Sheets follow)
American Bio Medica Corporation
Condensed Balance Sheets
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June
30,
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December
31,
|
|
|
2020
(unaudited)
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2019
|
|
ASSETS
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Current
Assets
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|
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Cash
and cash equivalents
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$225,000
|
$4,000
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Accounts
receivable, net of allowance for doubtful accounts of $34,000 at
June 30, 2020 and December 31, 2019
|
350,000
|
370,000
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Inventory,
net of allowance of $355,000 at June 30, 2020 and $291,000 at
December 31, 2019
|
769,000
|
810,000
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Prepaid
expenses and other current assets
|
133,000
|
6,000
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Right
of Use Asset – Operating Leases
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34,000
|
34,000
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Total
current assets
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1,511,000
|
1,224,000
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Property,
plant and equipment, net
|
608,000
|
644,000
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Patents,
net
|
112,000
|
116,000
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Right
of Use Asset – Operating Leases
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58,000
|
73,000
|
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Other
assets
|
21,000
|
21,000
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Total
assets
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$2,310,000
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$2,078,000
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LIABILITIES
AND STOCKHOLDERS’ EQUITY
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Current
liabilities
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|
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Accounts
payable
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$627,000
|
$652,000
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|
Accrued
expenses and other current liabilities
|
663,000
|
543,000
|
|
Right
of Use Liability – Operating Leases
|
32,000
|
34,000
|
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Wages
payable
|
134,000
|
104,000
|
|
Line
of credit
|
226,000
|
337,000
|
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PPP
Loan
|
332,000
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0
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Current portion of long-term debt
|
1,121,000
|
17,000
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Total
current liabilities
|
3,135,000
|
1,687,000
|
|
Long-term
debt/other liabilities, net of deferred finance costs
|
0
|
1,108,000
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Right
of Use Liability – Operating Leases
|
58,000
|
73,000
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|
Total
liabilities
|
3,193,000
|
2,868,000
|
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COMMITMENTS
AND CONTINGENCIES
|
|
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Stockholders’
Deficit:
|
|
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Common
stock
|
359,000
|
327,000
|
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Additional
paid-in capital
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21,658,000
|
21,437,000
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Accumulated
deficit
|
(22,900,000)
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(22,554,000)
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Total
stockholders’ deficit
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(883,000)
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(790,000)
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Total
liabilities and stockholders’ deficit
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$2,310,000
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$2,078,000
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#####