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| 8-K - CURRENT REPORT - AMERICAN BIO MEDICA CORP | abmc_8k.htm |
Exhibit 99.1
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Contacts:
Melissa A.
Waterhouse
Chief Executive
Officer
(800) 227-1243, Ext
107
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FOR IMMEDIATE RELEASE:
ABMC REPORTS THIRD QUARTER 2020 RESULTS
--Announces Application to Up-List to OTCQB--
Kinderhook, N.Y., November 16, 2020 – American Bio
Medica Corporation (OTCPK: ABMC) today announced financial results
for the three and nine months ended September 30, 2020 and
announced they have applied to up-list its common stock to the
OTCQB® Venture Marketplace.
Chief
Executive Officer Melissa A. Waterhouse stated, “As Covid-19
infections started to rise in the third quarter, the market turned
to diagnostic testing, and we saw a decrease in demand for antibody
testing. While
there can be no assurances, we believe that antibody testing will
become increasingly necessary with the emergence of vaccines. In
October, we signed a distribution agreement to sell the
Co-Diagnostics, Inc. Logix™ Smart Covid-19 test. This is our
first step in offering our customers a full suite of testing
options for Covid-19; we do expect to announce more offerings in
the near future. Drug test sales are still down from the same
period a year ago due to the impact of Covid-19 in our core
markets, however, we are encouraged by positive movement we are
seeing in certain markets.”
Waterhouse
continued, “We have applied to up-list our common stock to
the OTCQB Venture Market and we are confident that our application
will be approved. This will increase visibility in our stock and
provide greater market exposure. Going forward, ABMC’s plan
involves securing new financing in the near future to support core
growth initiatives involving our drugs of abuse products (including
oral fluid tests), to refinance current high interest rate debt and
to invest in sales and marketing. We hope to increase revenue from
promising contract manufacturing business and sales of infectious
disease products (including Covid-19 tests). We believe these
initiatives position ABMC for long-term
success.”
Financial Highlights
● Net sales in the
third quarter of 2020 were $883,000, compared to net sales of
$895,000 in the third quarter of 2019; a decrease of $12,000, or
1.3%. Net sales in the nine months ended September 30, 2020 were
$3,370,000, compared to $2,775,000 in the nine months ended
September 30, 2019; an increase of $595,000, or 21.4%.
● Operating loss was
$172,000 in the third quarter of 2020, compared to an operating
loss of $81,000 in the third quarter of 2019. Operating loss was
$428,000 in the nine months ended September 30, 2020, compared to
an operating loss of $410,000 in the nine months ended September
30, 2019.
● Net loss was
$216,000, or $(0.01) per share in the third quarter of 2020,
compared to net loss of $144,000, or $(0.00) per share, in the
third quarter of 2019. Net loss was $563,000, or $(0.02) per share,
in the nine months ended September 30, 2020, compared to net loss
of $440,000, or $(0.02) per share, for the nine months ended
September 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 and a RT-PCR test to detect Covid-19. The
Company also currently manufactures (on a contract basis) tests to
detect respiratory syncytial virus (RSV) and malaria and, with the
ability to manufacture tests for many other medical conditions,
viruses and diseases in its FDA registered and ISO certified
facilities.
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)
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AMERICAN BIO MEDICA CORPORATION
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Condensed Statements of Operations
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(unaudited)
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For the
three
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For the
three
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For the
nine
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For the
nine
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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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September 30,
2020
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September 30,
2019
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September 30,
2020
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September 30,
2019
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Net
sales
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$883,000
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$895,000
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$3,370,000
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$2,775,000
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Cost
of goods sold
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648,000
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536,000
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2,362,000
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1,805,000
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Gross
profit
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235,000
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359,000
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1,008,000
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970,000
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Operating
expenses:
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Research
and development
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24,000
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23,000
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77,000
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62,000
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Selling
and marketing
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89,000
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131,000
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408,000
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350,000
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General
and administrative
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294,000
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286,000
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951,000
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968,000
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Total
operating expenses
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407,000
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440,000
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1,436,000
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1,380,000
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Operating
loss
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(172,000)
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(81,000)
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(428,000)
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(410,000)
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Other
(expense) / income
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(42,000)
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(63,000)
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(133,000)
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(28,000)
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Net
loss before tax
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(214,000)
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(144,000)
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(561,000)
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(438,000)
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Income
tax expense
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(2,000)
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0
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(2,000)
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(2,000)
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Net
loss
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$(216,000)
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$(144,000)
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$(563,000)
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$(440,000)
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Basic
& diluted loss per common share
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$(0.01)
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$(0.00)
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$(0.02)
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$(0.02)
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Weighted
average shares outstanding – basic and diluted
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35,953,476
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32,545,776
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35,278,455
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32,479,123
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(Condensed Balance Sheets follow)
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American Bio Medica Corporation
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Condensed Balance Sheets
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September
30,
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December
31,
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2020
(unaudited)
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2019
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ASSETS
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Current
Assets
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Cash
and cash equivalents
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$61,000
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$4,000
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Accounts
receivable, net of allowance for doubtful accounts of $35,000 at
September 30, 2020 and $34,000 at December 31, 2019
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364,000
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370,000
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Inventory,
net of allowance of $397,000 at September 30, 2020 and $291,000 at
December 31, 2019
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602,000
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810,000
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Prepaid
expenses and other current assets
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85,000
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6,000
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Right
of Use Asset – Operating Leases
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35,000
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34,000
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Total
current assets
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1,147,000
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1,224,000
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Property,
plant and equipment, net
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594,000
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644,000
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Patents,
net
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110,000
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116,000
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Right
of Use Asset – Operating Leases
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49,000
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73,000
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Other
assets
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21,000
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21,000
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Total
assets
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$1,921,000
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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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Accounts
payable
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$604,000
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$652,000
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Accrued
expenses and other current liabilities
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577,000
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543,000
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Right
of Use Liability – Operating Leases
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33,000
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34,000
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Wages
payable
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98,000
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104,000
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Line
of credit
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208,000
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337,000
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PPP
Loan
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332,000
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0
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Current portion of long-term debt, net of deferred finance
costs
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1,120,000
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17,000
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Total
current liabilities
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2,972,000
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1,687,000
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Long-term
debt/other liabilities, net of current portion and deferred finance
costs
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0
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1,108,000
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Right
of Use Liability – Operating Leases
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49,000
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73,000
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Total
liabilities
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3,021,000
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2,868,000
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COMMITMENTS
AND CONTINGENCIES
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Stockholders’
Deficit:
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Common
stock
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359,000
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327,000
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Additional
paid-in capital
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21,658,000
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21,437,000
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Accumulated
deficit
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(23,117,000)
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(22,554,000)
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Total
stockholders’ deficit
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(1,100,000)
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(790,000)
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Total
liabilities and stockholders’ deficit
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$1,921,000
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$2,078,000
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