KINDERHOOK, N.Y.--(BUSINESS WIRE)--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.”
- 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,|
|Cost of goods sold||919,000||1,010,000||3,462,000||4,223,000|
|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|
|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)|
|Basic & diluted loss per common share||$||(0.01)||$||(0.01)||$||(0.02)||$||(0.02)|
|Basic weighted average shares outstanding||25,676,976||23,648,315||25,676,976||23,336,806|
|Diluted weighted average shares outstanding||25,676,976||23,648,315||25,676,976||23,336,806|
|American Bio Medica Corporation|
|December 31,||December 31,|
|Cash and cash equivalents||$||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||
|Inventory, net of allowance of $432,000 at December 31, 2015 and $324,000 at December 31, 2014||
|Current portion of deferred financing||0||43,000|
|Prepaid expenses and other current assets||40,000||85,000|
|Total current assets||2,616,000||3,016,000|
|Property, plant and equipment, net||910,000||983,000|
|Deferred finance costs, net||190,000||0|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accrued expenses and other current liabilities||212,000||192,000|
|Line of credit||777,000||979,000|
|Current portion of long-term debt||75,000||858,000|
|Total current liabilities||1,729,000||2,703,000|
|Related party note||124,000||124,000|
|Long term debt, net of current portion||945,000||213,000|
|Additional paid-in capital||20,656,000||20,356,000|
|Total stockholders’ equity||961,000||970,000|
|Total liabilities and stockholders' equity||$||3,797,000||$||4,078,000|