ABMC Reports Fourth Quarter and Year End 2015 Results

KINDERHOOK, N.Y.--()--American Bio Medica Corporation (OTCPK: ABMC) today announced financial results for the fourth quarter and year ended December 31, 2015.

Chief Executive Officer Melissa A. Waterhouse stated, “Certain financial adjustments had a further negative impact on our operating and net loss results for the year. One of those adjustments was related to a certain debt issuance cost that was originally being amortized over the course of our line of credit, but it is now fully expensed in the fourth quarter of 2015, and the other was related to inventory adjustments.”

Waterhouse continued, “The consolidation of our NJ facility resulted in improvement to our gross profit margin in 2015 (even with the year end inventory adjustment). I’ve indicated in the past that 2015 was going to be a year of investments in selling and marketing and those investments did result in higher selling and marketing costs when expenses in other areas of the company declined. G&A, although decreased from the prior year, was also impacted by accelerated debt issuance costs when we refinanced our line of credit in June 2015. 2015 was also a busy year for ABMC from a debt-restructuring standpoint; we refinanced all of our long-term debt at new rates that result in decreased interest costs.”

“We haven’t received our marketing clearance from FDA yet for one of our urine products, however we remain hopeful that we will receive that clearance soon. Once clearance is received, we can start marketing this product to the pain management and drug treatment markets that require more than just a 510(k) cleared product, and we still expect this market entry to have a positive impact on sales in 2016. Also, so far in the first quarter of 2016, we have moved forward with a few new relationships to diversify our business, and we expect these new relationships will have a positive impact on sales later in 2016.”

Waterhouse concluded, “While we did not reach profitability in 2015, a lot of the groundwork has been laid to get us there. There are a number of opportunities in our pipeline that we hope will positively impact the top line, and as long as we keep expenses in line (which we believe we can do barring any extraordinary charges), future sales growth should result in profitability and increased shareholder value.”

Financial Highlights

  • Net sales in the fourth quarter of 2015 were $1,457,000 compared to $1,681,000 in the fourth quarter of 2014, a decrease of 13.2%. Net sales in 2015 were $6,317,000 compared to $7,285,000 in 2014, a decrease of 13.3%.
  • Operating loss was $187,000 in the fourth quarter of 2015 compared to an operating loss of $178,000 in the fourth quarter of 2014. Operating loss in 2015 was $226,000 compared to an operating loss of $217,000 in 2014.
  • Net loss was $202,000 in the fourth quarter of 2015 compared to a net loss of $238,000 in the fourth quarter of 2014. Net loss was $333,000 in 2015 compared to net loss of $490,000 in 2014.

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 OralStat product, 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, 2014, 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
Statements of Operation
  Three Months Ended Year Ended
December 31, December 31,
2015   2014 2015   2014
(unaudited) (unaudited) (unaudited)  
 
Net sales $ 1,457,000 $ 1,681,000 $ 6,317,000 $ 7,285,000
Cost of goods sold   919,000   1,010,000   3,462,000   4,223,000
Gross profit 538,000 671,000 2,855,000 3,062,000
Operating expenses:
Research and development 23,000 45,000 148,000 228,000
Selling and marketing 265,000 272,000 1,164,000 1,111,000
General and administrative   437,000   532,000   1,769,000   1,940,000
Total operating expenses 725,000 849,000 3,081,000 3,279,000
 
Operating loss (187,000) (178,000) (226,000) (217,000)
 
Other income/(expense) - net   (14,000)   (59,000)   (105,000)   (271,000)
 
Net income / (loss) before tax (201,000) (237,000) (331,000) (488,000)
 
Income tax expense   (1,000)   (1,000)   (2,000)   (2,000)
 
Net loss   (202,000)   (238,000)   (333,000)   (490,000)
 
Basic & diluted loss per common share $ (0.01) $ (0.01) $ (0.02) $ (0.02)
 
Basic weighted average shares outstanding 25,676,976 23,648,315 25,676,976 23,336,806
Diluted weighted average shares outstanding 25,676,976 23,648,315 25,676,976 23,336,806
 
 
American Bio Medica Corporation
Balance Sheets
 
  December 31,   December 31,
2015

2014

(unaudited)

 

ASSETS
Current Assets
Cash and cash equivalents $ 158,000 $ 352,000
Accounts receivable, net of allowance for doubtful accounts of $50,000 at December 31, 2015 and 47,000 at December 31, 2014

672,000

814,000

Inventory, net of allowance of $432,000 at December 31, 2015 and $324,000 at December 31, 2014

1,746,000

1,722,000

Current portion of deferred financing 0 43,000
Prepaid expenses and other current assets   40,000   85,000
Total current assets 2,616,000 3,016,000
Property, plant and equipment, net 910,000 983,000
Patents, net 67,000 65,000
Other assets 14,000 14,000
Deferred finance costs, net   190,000   0
Total assets $ 3,797,000 $ 4,078,000
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 373,000 $ 410,000
Accrued expenses and other current liabilities 212,000 192,000
Wages payable 292,000 264,000
Line of credit 777,000 979,000
Current portion of long-term debt   75,000   858,000
Total current liabilities 1,729,000 2,703,000
Other liabilities 38,000 68,000
Related party note 124,000 124,000
Long term debt, net of current portion   945,000   213,000
Total liabilities   2,836,000   3,108,000
 
Stockholders' Equity:
Common stock 260,000 236,000
Additional paid-in capital 20,656,000 20,356,000
Accumulated deficit   (19,955,000)   (19,622,000)
Total stockholders’ equity   961,000   970,000
Total liabilities and stockholders' equity $ 3,797,000 $ 4,078,000
 

Contacts

American Bio Medica Corporation
Melissa A. Waterhouse, 800-227-1243, Ext 107
Chief Executive Officer

Contacts

American Bio Medica Corporation
Melissa A. Waterhouse, 800-227-1243, Ext 107
Chief Executive Officer