ABMC Reports Third Quarter 2020 Results

Announces Application to Up-List to OTCQB

KINDERHOOK, NY / ACCESSWIRE / November 16, 2020 / American Bio Medica Corporation (OTC PINK: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.

Contacts:

Melissa A. Waterhouse
Chief Executive Officer
(800) 227-1243, Ext 107

(financial tables follow)

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, 2020     September 30, 2019     September 30, 2020     September 30, 2019  
                         
Net sales
  $ 883,000     $ 895,000     $ 3,370,000     $ 2,775,000  
Cost of goods sold
    648,000       536,000       2,362,000       1,805,000  
Gross profit
    235,000       359,000       1,008,000       970,000  
                                 
Operating expenses:
                               
Research and development
    24,000       23,000       77,000       62,000  
Selling and marketing
    89,000       131,000       408,000       350,000  
General and administrative
    294,000       286,000       951,000       968,000  
Total operating expenses
    407,000       440,000       1,436,000       1,380,000  
                                 
Operating loss
    (172,000 )     (81,000 )     (428,000 )     (410,000 )
                                 
Other (expense) / income
    (42,000 )     (63,000 )     (133,000 )     (28,000 )
                                 
Net loss before tax
    (214,000 )     (144,000 )     (561,000 )     (438,000 )
                                 
Income tax expense
    (2,000 )     0       (2,000 )     (2,000 )
                                 
Net loss
  $ (216,000 )   $ (144,000 )   $ (563,000 )   $ (440,000 )
                                 
Basic & diluted loss per common share
  $ (0.01 )   $ (0.00 )   $ (0.02 )   $ (0.02 )
                                 
Weighted average shares outstanding - basic and diluted
    35,953,476       32,545,776       35,278,455       32,479,123  
                                 

(Condensed Balance Sheets follow)

American Bio Medica Corporation
Condensed Balance Sheets

             
    September 30,     December 31,  
   
2020
(unaudited)
    2019  
ASSETS
           
Current Assets
           
Cash and cash equivalents
  $ 61,000     $ 4,000  
Accounts receivable, net of allowance for doubtful accounts of $35,000 at September 30, 2020 and $34,000 at December 31, 2019
    364,000       370,000  
Inventory, net of allowance of $397,000 at September 30, 2020 and $291,000 at December 31, 2019
    602,000       810,000  
Prepaid expenses and other current assets
    85,000       6,000  
Right of Use Asset - Operating Leases
    35,000       34,000  
Total current assets
    1,147,000       1,224,000  
Property, plant and equipment, net
    594,000       644,000  
Patents, net
    110,000       116,000  
Right of Use Asset - Operating Leases
    49,000       73,000  
Other assets
    21,000       21,000  
Total assets
  $ 1,921,000     $ 2,078,000  
LIABILITIES AND STOCKHOLDERS' EQUITY
               
Current liabilities
               
Accounts payable
  $ 604,000     $ 652,000  
Accrued expenses and other current liabilities
    577,000       543,000  
Right of Use Liability - Operating Leases
    33,000       34,000  
Wages payable
    98,000       104,000  
Line of credit
    208,000       337,000  
PPP Loan
    332,000       0  
Current portion of long-term debt, net of deferred finance costs
    1,120,000       17,000  
Total current liabilities
    2,972,000       1,687,000  
Long-term debt/other liabilities, net of current portion and deferred finance costs
    0       1,108,000  
Right of Use Liability - Operating Leases
    49,000       73,000  
Total liabilities
    3,021,000       2,868,000  
COMMITMENTS AND CONTINGENCIES
               
Stockholders' Deficit:
               
Common stock
    359,000       327,000  
Additional paid-in capital
    21,658,000       21,437,000  
Accumulated deficit
    (23,117,000 )     (22,554,000 )
Total stockholders' deficit
    (1,100,000 )     (790,000 )
Total liabilities and stockholders' deficit
  $ 1,921,000     $ 2,078,000  
                 

SOURCE: American Bio Medica Corporation

 


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https://www.accesswire.com/616932/ABMC-Reports-Third-Quarter-2020-Results

 

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