KINDERHOOK, NY / ACCESSWIRE / June 26, 2019 / American Bio Medica Corporation (OTC PINK:ABMC) today announced financial results for the fourth quarter and year ended December 31, 2019.
Chief Executive Officer, Melissa A. Waterhouse stated, "While sales did not increase in Q4 2019 (as they did in Q3 2019), they were relatively flat. In 2019, sales in our core markets declined, some of which was due to timing of shipments to customers at the end of the year. These declines were partially offset by increased contract manufacturing sales (due to two new customers in 2019) along with increased international sales. Operational expenses declined due to continued efforts to control costs wherever possible."
Waterhouse continued, "Our drug testing business has been negatively impacted by the Covid-19 pandemic in the first half of 2020. The core markets for our drug tests are employment, clinical and government; and each of these sectors has been negatively impacted by the pandemic in various ways. On March 23, 2020, we announced we are distributing a rapid antibody test for Covid-19 and on May 29, 2020 this COVID-19 test was authorized by the United States Food and Drug Administration (FDA) under an Emergency Use Authorization (EUA) for use by authorized laboratories. Starting in late March 2020, we conducted pre-sales of the product and began shipping orders to customers in May 2020. Sales of the Rapid Covid-19 test have offset the negative impact to our drug testing business. As of the date of this release, we have recorded revenues of just over $1,000,000 which resulted in approximately $430,000 in profit to ABMC after expenses and commissions."
Financial Highlights
- Net sales in the fourth quarter of 2019 were $880,000, compared to $884,000 in the fourth quarter of 2018, or relatively flat. Net sales in 2019 were $3,655,000, compared to net sales of $3,872,000 in 2018, a decrease of 5.6%.
- Operating loss was $183,000 in the fourth quarter of 2019, compared to an operating loss of $348,000 in the fourth quarter of 2018. Operating loss in 2019 was $593,000 compared to an operating loss of $762,000 in 2018.
- Net loss was $248,000 in the fourth quarter of 2019, compared to a net loss of $412,000 in the fourth quarter of 2018. Net loss was $681,000 in 2019, compared to a net loss of $1,028,000 in 2018.
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, 2018, 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
Statements of Operation
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Three Months Ended | Year Ended | ||||||||||||||
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December 31, | December 31, | ||||||||||||||
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2019 | 2018 | 2019 | 2018 | ||||||||||||
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(unaudited) | (unaudited) | (unaudited) | |||||||||||||
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Net sales
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$ | 880,000 | $ | 884,000 | $ | 3,655,000 | $ | 3,872,000 | ||||||||
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Cost of goods sold
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666,000 | 768,000 | 2,471,000 | 2,584,000 | ||||||||||||
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Gross profit
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214,000 | 116,000 | 1,184,000 | 1,288,000 | ||||||||||||
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Operating expenses:
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Research and development
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20,000 | 29,000 | 82,000 | 93,000 | ||||||||||||
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Selling and marketing
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109,000 | 111,000 | 459,000 | 545,000 | ||||||||||||
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General and administrative
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268,000 | 324,000 | 1,236,000 | 1,412,000 | ||||||||||||
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Total operating expenses
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397,000 | 464,000 | 1,777,000 | 2,050,000 | ||||||||||||
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Operating loss
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(183,000 | ) | (348,000 | ) | (593,000 | ) | (762,000 | ) | ||||||||
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Other income/(expense) - net
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(65,000 | ) | (64,000 | ) | (93,000 | ) | (264,000 | ) | ||||||||
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Net loss before tax
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(248,000 | ) | (412,000 | ) | (686,000 | ) | (1,026,000 | ) | ||||||||
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Income tax expense
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8,000 | (1,000 | ) | 5,000 | (2,000 | ) | ||||||||||
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Net loss
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(240,000 | ) | (413,000 | ) | (681,000 | ) | (1,028,000 | ) | ||||||||
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Basic & diluted loss per common share
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$ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.03 | ) | ||||
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Basic weighted average shares outstanding
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32,667,757 | 29,211,454 | 32,526,669 | 30,115,063 | ||||||||||||
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Diluted weighted average shares outstanding
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32,667,757 | 29,211,454 | 32,526,669 | 30,115,063 | ||||||||||||
(Balance Sheets follow)
American Bio Medica Corporation
Balance Sheets
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December 31, | December 31, | ||||||
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2019
(unaudited)
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2018 | ||||||
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ASSETS
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Current Assets
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Cash and cash equivalents
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$ | 4,000 | $ | 113,000 | ||||
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Accounts receivable, net of allowance for doubtful accounts of $34,000 at December 31, 2019 and $36,000 at December 31, 2018
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370,000 | 452,000 | ||||||
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Inventory, net of allowance of $291,000 at December 31, 2019 and $268,000 at December 31, 2018
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810,000 | 1,019,000 | ||||||
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Prepaid expenses and other current assets
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6,000 | 29,000 | ||||||
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Right of Use Asset - Operating Leases
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37,000 | 0 | ||||||
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Total current assets
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1,227,000 | 1,613,000 | ||||||
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Property, plant and equipment, net
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644,000 | 718,000 | ||||||
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Patents, net
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116,000 | 123,000 | ||||||
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Right of Use Asset - Operating Leases
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73,000 | 0 | ||||||
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Other assets
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21,000 | 21,000 | ||||||
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Total assets
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$ | 2,078,000 | $ | 2,475,000 | ||||
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities
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Accounts payable
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$ | 652,000 | $ | 359,000 | ||||
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Accrued expenses and other current liabilities
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543,000 | 449,000 | ||||||
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Right of Use Liability - Operating Leases
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34,000 | 0 | ||||||
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Wages payable
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104,000 | 278,000 | ||||||
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Line of credit
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337,000 | 502,000 | ||||||
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Current portion of long-term debt, net of deferred finance costs
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17,000 | 237,000 | ||||||
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Total current liabilities
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1,687,000 | 1,825,000 | ||||||
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Long term debt, net of current portion & deferred finance costs
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1,108,000 | 796,000 | ||||||
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Right of Use Liability - Operating Leases
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73,000 | 0 | ||||||
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Total liabilities
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2,868,000 | 2,621,000 | ||||||
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Stockholders' Equity:
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Common stock
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327,000 | 323,000 | ||||||
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Additional paid-in capital
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21,437,000 | 21,404,000 | ||||||
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Accumulated deficit
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(22,554,000 | ) | (21,873,000 | ) | ||||
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Total stockholders' equity
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(790,000 | ) | (146,000 | ) | ||||
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Total liabilities and stockholders' equity
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$ | 2,078,000 | $ | 2,475,000 | ||||
SOURCE: American Bio Medica Corporation