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American Bio Medica Corporation today announced financial results for the three and nine months ended September 30, 2016.
American Bio Medica Corporation (OTCPK:ABMC) today announced financial results for the three and nine months ended September 30, 2016.
Chief Executive Officer Melissa A. Waterhouse stated, “We are continuing
to take steps to halt the sales declines we have been experiencing for
some time now but, admittedly organic growth in our industry is
challenging. Additional product and service offerings and a
reorganization and refocus of our sales and marketing department are
underway. At the same time, we are reviewing other potential
relationships that could enable ABMC to further broaden its product
offerings and branch out into other markets.”
Waterhouse continued, “Gross profits were negatively impacted in the
third quarter of 2016. Our gross profit was 43.1% of net sales in the
third quarter of 2016 compared to 48.2% in the third quarter of 2015.
This decline is a direct result of less strip production in the third
quarter 2016 when expenses to manufacture remained flat. We do not
expect further significant declines in gross profits. And finally, from
an operational perspective, we will continue to be fiscally conservative
and keep expenses in line with revenues.”
Financial Highlights
- Net sales in the third quarter of 2016 were $1,417,000 compared to
$1,590,000 in the third quarter of 2016, a decrease of 10.9%. Net
sales in the nine months ended September 30, 2016 were $4,392,000
compared to net sales of $4,785,000 in the nine months ended September
30, 2015, a decrease of 8.2%. - Operating loss was $60,000 in the third quarter of 2016 compared to an
operating income of $61,000 in the third quarter of 2015. Operating
loss was $136,000 in the nine months ended September 30, 2016,
compared to an operating loss of $80,000 in the nine months ended
September 30, 2015. - Net loss was $88,000 in the third quarter 2016, compared to a net loss
of $2,000 in the third quarter of 2015. Net loss was $130,000 in both
the nine months ended September 30, 2016 and September 30, 2015.
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,
2015, 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 | For the nine | For the nine | |||||||||||||
| months ended | months ended | months ended | months ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
| Net sales | $ | 1,417,000 | $ | 1,590,000 | $ | 4,392,000 | $ | 4,785,000 | ||||||||
| Cost of goods sold | 806,000 | 823,000 | 2,441,000 | 2,543,000 | ||||||||||||
| Gross profit | 611,000 | 767,000 | 1,951,000 | 2,242,000 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 28,000 | 45,000 | 136,000 | 125,000 | ||||||||||||
| Selling and marketing | 275,000 | 291,000 | 827,000 | 899,000 | ||||||||||||
| General and administrative | 368,000 | 370,000 | 1,124,000 | 1,298,000 | ||||||||||||
| Total operating expenses | 671,000 | 706,000 | 2,087,000 | 2,322,000 | ||||||||||||
| Operating income / (loss) | (60,000 | ) | 61,000 | (136,000 | ) | (80,000 | ) | |||||||||
| Other income / (expense) | (27,000 | ) | (63,000 | ) | 8,000 | (50,000 | ) | |||||||||
| Net loss before tax | (87,000 | ) | (2,000 | ) | (128,000 | ) | (130,000 | ) | ||||||||
| Income tax expense | (1,000 | ) | 0 | (2,000 | ) | 0 | ||||||||||
| Net loss | $ | (88,000 | ) | $ | (2,000 | ) | $ | (130,000 | ) | $ | (130,000 | ) | ||||
| Basic & diluted loss per common share | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.01 | ) | ||||
| Weighted average shares outstanding – basic and diluted | 27,284,308 | 26,032,930 | 27,056,216 | 25,557,021 | ||||||||||||
| American Bio Medica Corporation | ||||||||
| Condensed Balance Sheets | ||||||||
| September 30, | December 31, | |||||||
2016 | 2015 | |||||||
(unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 221,000 | $ | 158,000 | ||||
| Accounts receivable, net of allowance for doubtful accounts of $50,000 at September 30, 2016 and December 31, 2015 | 721,000 | 672,000 | ||||||
| Inventory, net of allowance of $495,000 at September 30, 2016 and $432,000 at December 31, 2015 | 1,556,000 | 1,746,000 | ||||||
| Prepaid expenses and other current assets | 61,000 | 40,000 | ||||||
| Total current assets | 2,559,000 | 2,616,000 | ||||||
| Property, plant and equipment, net | 844,000 | 910,000 | ||||||
| Patents, net | 70,000 | 67,000 | ||||||
| Other assets | 21,000 | 14,000 | ||||||
| Deferred finance costs – line of credit, net | 55,000 | 79,000 | ||||||
| Total assets | $ | 3,549,000 | $ | 3,686,000 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | 305,000 | 373,000 | ||||||
| Accrued expenses and other current liabilities | 225,000 | 212,000 | ||||||
| Wages payable | 281,000 | 292,000 | ||||||
| Line of credit | 736,000 | 777,000 | ||||||
| Current portion of long-term debt | 75,000 | 75,000 | ||||||
| Total current liabilities | 1,622,000 | 1,729,000 | ||||||
| Other liabilities | 19,000 | 38,000 | ||||||
| Related party note | 0 | 124,000 | ||||||
| Long-term debt, net of current portion and deferred finance costs | 730,000 | 834,000 | ||||||
| Total liabilities | 2,371,000 | 2,725,000 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| Stockholders’ Equity: | ||||||||
| Common stock | 285,000 | 260,000 | ||||||
| Additional paid-in capital | 20,979,000 | 20,656,000 | ||||||
| Accumulated deficit | (20,086,000 | ) | (19,955,000 | ) | ||||
| Total stockholders’ equity | 1,178,000 | 961,000 | ||||||
| Total liabilities and stockholders’ equity | $ | 3,549,000 | $ | 3,686,000 | ||||