EX-99.1 2 abmc_ex991.htm PRESS RELEASE Blueprint
 
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