KINDERHOOK, NY / ACCESSWIRE / May 14, 2018 / American Bio Medica Corporation (OTC PINK: ABMC) today announced financial results for the three months ended March 31, 2018.
Chief Executive Officer Melissa A. Waterhouse stated, "We are continuing to see a positive impact on sales as a result of distribution relationships initiated in mid 2017 and our efforts in the clinical market, however, these improvements are offset by decreased sales as a result of the loss of an account in the fourth quarter 2017. Looking ahead, we are re-focusing our efforts related to oral fluid drug testing primarily as a result of changes in our regulatory environment and the distribution options available for alternative oral fluid products. And finally, we are currently discussing a number of potential contract manufacturing opportunities with new customers."
Waterhouse continued, "We continued to maintain reasonable operational expenses in the first quarter 2018. G&A expense did increase (as a result of litigation related to the previously mentioned lost account), however selling and marketing expense decreased (even with increased efforts in the clinical market), and R&D expense decreased due to less expenses associated with FDA compliance."
Financial Highlights
- Net sales in the first quarter 2018 were $1,041,000, compared to net sales of $1,316,000 in the first quarter of 2017, a decrease of $275,000, or 20.9%.
- Operating loss was $206,000 in the first quarter 2018, compared to an operating loss of $67,000 in the first quarter 2017. Along with decreased sales, gross profit decreased to 35.7% of net sales in the first quarter 2018 from 42.9% of net sales in the first quarter 2017. This was due to increased manufacturing inefficiencies and decreased pricing to customers. An increase in revenue would enable the Company to decrease inefficiencies and achieve higher gross profit margins, even with the decreased pricing to customers.
- Net loss was $267,000 in the first quarter 2018, compared to a net loss of $132,000 in the first quarter 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 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, 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
(unaudited)
For the three | For the three | |||||||
months ended | months ended | |||||||
March 31, 2018 | March 31, 2017 | |||||||
Net sales | $ | 1,041,000 | $ | 1,316,000 | ||||
Cost of goods sold | 669,000 | 751,000 | ||||||
Gross profit | 372,000 | 565,000 | ||||||
Operating expenses: | ||||||||
Research and development | 25,000 | 46,000 | ||||||
Selling and marketing | 161,000 | 196,000 | ||||||
General and administrative | 392,000 | 390,000 | ||||||
Total operating expenses | 578,000 | 632,000 | ||||||
Operating loss | (206,000 | ) | (67,000 | ) | ||||
Other expense | (61,000 | ) | (65,000 | ) | ||||
Net loss before tax | (267,000 | ) | (132,000 | ) | ||||
Income tax expense | 0 | 0 | ||||||
Net loss | $ | (267,000 | ) | $ | (132,000 | ) | ||
Basic & diluted (loss) / income per common share | $ | (0.01 | ) | $ | (0.00 | ) | ||
Weighted average shares outstanding - basic | 29,882,770 | 28,842,788 | ||||||
Weighted average shares outstanding - diluted | 29,822,770 | 28,842,788 | ||||||
American Bio Medica Corporation
Condensed Balance Sheets
March 31, | December 31, | |||||||
2018 (unaudited) | 2017 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 92,000 | $ | 36,000 | ||||
Accounts receivable, net of allowance for doubtful accounts of $51,000 at March 31, 2018 and $52,000 at December 31, 2017 | 421,000 | 348,000 | ||||||
Inventory, net of allowance of $521,000 at March 31, 2018 and $500,000 at December 31, 2017 | 1,388,000 | 1,473,000 | ||||||
Prepaid expenses and other current assets | 61,000 | 97,000 | ||||||
Total current assets | 1,962,000 | 1,954,000 | ||||||
Property, plant and equipment, net | 774,000 | 792,000 | ||||||
Patents, net | 113,000 | 109,000 | ||||||
Other assets | 21,000 | 21,000 | ||||||
Deferred finance costs - line of credit, net | 7,000 | 15,000 | ||||||
Total assets | $ | 2,877,000 | $ | 2,891,000 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 430,000 | $ | 374,000 | ||||
Accrued expenses and other current liabilities | 354,000 | 311,000 | ||||||
Wages payable | 266,000 | 259,000 | ||||||
Line of credit | 492,000 | 446,000 | ||||||
Current portion of long-term debt | 237,000 | 87,000 | ||||||
Total current liabilities | 1,779,000 | 1,477,000 | ||||||
Other liabilities/debt | 16,000 | 19,000 | ||||||
Long-term debt, net of current portion and deferred finance costs | 704,000 | 772,000 | ||||||
Total liabilities | 2,499,000 | 2,268,000 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
Stockholders' Equity: | ||||||||
Common stock | 299,000 | 298,000 | ||||||
Additional paid-in capital | 21,191,000 | 21,170,000 | ||||||
Accumulated deficit | (21,112,000 | ) | (20,845,000 | ) | ||||
Total stockholders' equity | 378,000 | 623,000 | ||||||
Total liabilities and stockholders' equity | $ | 2,877,000 | $ | 2,891,000 | ||||
Contacts:
Melissa A. Waterhouse
Chief Executive Officer
(800) 227-1243, Ext 107
SOURCE: American Bio Medica Corporation
