Exhibit 99.1
 |
Contacts:
Melissa
A. Waterhouse
Chief
Executive Officer
(800)
227-1243, Ext 107
|
FOR IMMEDIATE RELEASE:
ABMC REPORTS FOURTH QUARTER AND YEAR END 2018 RESULTS
Kinderhook, N.Y., April 16, 2019 – American Bio
Medica Corporation (OTCPK: ABMC) today announced financial results
for the fourth quarter and year ended December 31,
2018.
Chief
Executive Officer, Melissa A. Waterhouse stated, “Sales in
2018 were significantly impacted by the loss of a large government
account in the last quarter of 2017. Going forward into 2019, we
are seeing sales from the new contracts we signed in the latter
part of 2018. In 2019, we also expect to expand the markets where
we sell our oral fluid drug tests and we are already offering
additional products via distribution
relationships.”
Waterhouse
continued, “Financial results in 2018 were also impacted by
inventory disposals and further adjustments to our inventory
reserve. From an expense perspective, we continued to maintain a
reasonable level of expenses relative to sales; this will continue
into 2019.”
Financial Highlights
●
Net sales in the
fourth quarter of 2018 were $884,000, compared to $939,000 in the
fourth quarter of 2017, a decrease of 5.9%. Net sales in 2018 were
$3,872,000, compared to net sales of $4,914,000 in 2017, a decrease
of 21.2%.
●
Operating loss was
$348,000 in the fourth quarter of 2018, compared to an operating
loss of $228,000 in the fourth quarter of 2017. Operating loss in
2018 was $762,000 compared to an operating loss of $311,000 in
2017.
●
Net loss was
$413,000 in the fourth quarter of 2018, compared to a net loss of
$292,000 in the fourth quarter of 2017. Net loss was $1,028,000 in
2018, compared to a net loss of $545,000 in 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.
(financial tables follow)
1
American Bio Medica Corporation
Statements of Operation
|
|
Three Months Ended
|
Year Ended
|
||
|
|
December 31,
|
December 31,
|
||
|
|
2018
|
2017
|
2018
|
2017
|
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|
|
|
|
|
|
|
|
Net
sales
|
$884,000
|
$939,000
|
$3,872,000
|
$4,914,000
|
|
Cost
of goods sold
|
768,000
|
638,000
|
2,584,000
|
2,917,000
|
|
Gross
profit
|
116,000
|
301,000
|
1,288,000
|
1,997,000
|
|
Operating
expenses:
|
|
|
|
|
|
Research
and development
|
29,000
|
23,000
|
93,000
|
117,000
|
|
Selling
and marketing
|
111,000
|
149,000
|
545,000
|
680,000
|
|
General
and administrative
|
324,000
|
357,000
|
1,412,000
|
1,511,000
|
|
Total
operating expenses
|
464,000
|
529,000
|
2,050,000
|
2,308,000
|
|
|
|
|
|
|
|
Operating
loss
|
(348,000)
|
(228,000)
|
(762,000)
|
(311,000)
|
|
|
|
|
|
|
|
Other
income/(expense) - net
|
(64,000)
|
(63,000)
|
(264,000)
|
(234,000)
|
|
|
|
|
|
|
|
Net
loss before tax
|
(412,000)
|
(291,000)
|
(1,026,000)
|
(545,000)
|
|
|
|
|
|
|
|
Income
tax expense
|
(1,000)
|
(1,000)
|
(2,000)
|
0
|
|
|
|
|
|
|
|
Net
loss
|
(413,000)
|
(292,000)
|
(1,028,000)
|
(545,000)
|
|
|
|
|
|
|
|
Basic
& diluted loss per common share
|
$(0.01)
|
$(0.01)
|
$(0.03)
|
$(0.02)
|
|
|
|
|
|
|
|
Basic
weighted average shares outstanding
|
30,451,758
|
29,211,454
|
30,115,063
|
29,211,454
|
|
Diluted
weighted average shares outstanding
|
30,451,758
|
29,211,454
|
30,115,062
|
29,211,454
|
(Balance Sheets follow)
2
American Bio Medica Corporation
Balance Sheets
|
|
December 31,
|
December 31,
|
|
|
2018
|
2017
|
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash
and cash equivalents
|
$113,000
|
$36,000
|
|
Accounts
receivable, net of allowance for doubtful accounts of $36,000 at
December 31, 2018 and $52,000 at December 31, 2017
|
452,000
|
348,000
|
|
Inventory,
net of allowance of $268,000 at December 31, 2018 and $500,000 at
December 31, 2017
|
1,019,000
|
1,473,000
|
|
Prepaid
expenses and other current assets
|
29,000
|
97,000
|
|
Total
current assets
|
1,613,000
|
1,954,000
|
|
Property,
plant and equipment, net
|
718,000
|
792,000
|
|
Patents,
net
|
123,000
|
109,000
|
|
Other
assets
|
21,000
|
21,000
|
|
Deferred
finance costs – line of credit, net
|
0
|
15,000
|
|
Total
assets
|
$2,475,000
|
$2,891,000
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$359,000
|
$374,000
|
|
Accrued
expenses and other current liabilities
|
449,000
|
311,000
|
|
Wages
payable
|
278,000
|
259,000
|
|
Line
of credit
|
502,000
|
446,000
|
|
Current
portion of long-term debt
|
237,000
|
87,000
|
|
Total
current liabilities
|
1,825,000
|
1,477,000
|
|
Other
liabilities/debt
|
7,000
|
19,000
|
|
Long term debt, net
of current portion & deferred finance costs
|
789,000
|
772,000
|
|
Total
liabilities
|
2,621,000
|
2,268,000
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
Common
stock
|
323,000
|
298,000
|
|
Additional
paid-in capital
|
21,404,000
|
21,170,000
|
|
Accumulated
deficit
|
(21,873,000)
|
(20,845,000)
|
|
Total
stockholders’ equity
|
(146,000)
|
623,000
|
|
Total
liabilities and stockholders' equity
|
$2,475,000
|
$2,891,000
|
#####
3