KINDERHOOK, N.Y.--(BUSINESS WIRE)--American Bio Medica Corporation (OTCPK:ABMC) today announced financial results for the three and nine months ended September 30, 2016.
Chief Executive Officer Melissa A. Waterhouse stated, “We are continuing to take steps to halt the sales declines we have been experiencing for some time now but, admittedly organic growth in our industry is challenging. Additional product and service offerings and a reorganization and refocus of our sales and marketing department are underway. At the same time, we are reviewing other potential relationships that could enable ABMC to further broaden its product offerings and branch out into other markets.”
Waterhouse continued, “Gross profits were negatively impacted in the third quarter of 2016. Our gross profit was 43.1% of net sales in the third quarter of 2016 compared to 48.2% in the third quarter of 2015. This decline is a direct result of less strip production in the third quarter 2016 when expenses to manufacture remained flat. We do not expect further significant declines in gross profits. And finally, from an operational perspective, we will continue to be fiscally conservative and keep expenses in line with revenues.”
Financial Highlights
- Net sales in the third quarter of 2016 were $1,417,000 compared to $1,590,000 in the third quarter of 2016, a decrease of 10.9%. Net sales in the nine months ended September 30, 2016 were $4,392,000 compared to net sales of $4,785,000 in the nine months ended September 30, 2015, a decrease of 8.2%.
- Operating loss was $60,000 in the third quarter of 2016 compared to an operating income of $61,000 in the third quarter of 2015. Operating loss was $136,000 in the nine months ended September 30, 2016, compared to an operating loss of $80,000 in the nine months ended September 30, 2015.
- Net loss was $88,000 in the third quarter 2016, compared to a net loss of $2,000 in the third quarter of 2015. Net loss was $130,000 in both the nine months ended September 30, 2016 and September 30, 2015.
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, 2015, 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 | ||||||||||||||||
| Condensed Statements of Operations | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| For the three | For the three | For the nine | For the nine | |||||||||||||
| months ended | months ended | months ended | months ended | |||||||||||||
|
September 30, |
September 30, |
September 30, |
September 30, |
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|
2016 |
2015 |
2016 |
2015 |
|||||||||||||
| Net sales | $ | 1,417,000 | $ | 1,590,000 | $ | 4,392,000 | $ | 4,785,000 | ||||||||
| Cost of goods sold | 806,000 | 823,000 | 2,441,000 | 2,543,000 | ||||||||||||
| Gross profit | 611,000 | 767,000 | 1,951,000 | 2,242,000 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 28,000 | 45,000 | 136,000 | 125,000 | ||||||||||||
| Selling and marketing | 275,000 | 291,000 | 827,000 | 899,000 | ||||||||||||
| General and administrative | 368,000 | 370,000 | 1,124,000 | 1,298,000 | ||||||||||||
| Total operating expenses | 671,000 | 706,000 | 2,087,000 | 2,322,000 | ||||||||||||
| Operating income / (loss) | (60,000 | ) | 61,000 | (136,000 | ) | (80,000 | ) | |||||||||
| Other income / (expense) | (27,000 | ) | (63,000 | ) | 8,000 | (50,000 | ) | |||||||||
| Net loss before tax | (87,000 | ) | (2,000 | ) | (128,000 | ) | (130,000 | ) | ||||||||
| Income tax expense | (1,000 | ) | 0 | (2,000 | ) | 0 | ||||||||||
| Net loss | $ | (88,000 | ) | $ | (2,000 | ) | $ | (130,000 | ) | $ | (130,000 | ) | ||||
| Basic & diluted loss per common share | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.01 | ) | ||||
| Weighted average shares outstanding – basic and diluted |
27,284,308 |
26,032,930 |
27,056,216 |
25,557,021 |
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| American Bio Medica Corporation | ||||||||
| Condensed Balance Sheets | ||||||||
| September 30, | December 31, | |||||||
|
2016 |
2015 |
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|
(unaudited) |
|
|||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 221,000 | $ | 158,000 | ||||
| Accounts receivable, net of allowance for doubtful accounts of $50,000 at September 30, 2016 and December 31, 2015 |
721,000 |
672,000 |
||||||
| Inventory, net of allowance of $495,000 at September 30, 2016 and $432,000 at December 31, 2015 |
1,556,000 |
1,746,000 |
||||||
| Prepaid expenses and other current assets | 61,000 | 40,000 | ||||||
| Total current assets | 2,559,000 | 2,616,000 | ||||||
| Property, plant and equipment, net | 844,000 | 910,000 | ||||||
| Patents, net | 70,000 | 67,000 | ||||||
| Other assets | 21,000 | 14,000 | ||||||
| Deferred finance costs – line of credit, net | 55,000 | 79,000 | ||||||
| Total assets | $ | 3,549,000 | $ | 3,686,000 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | 305,000 | 373,000 | ||||||
| Accrued expenses and other current liabilities | 225,000 | 212,000 | ||||||
| Wages payable | 281,000 | 292,000 | ||||||
| Line of credit | 736,000 | 777,000 | ||||||
| Current portion of long-term debt | 75,000 | 75,000 | ||||||
| Total current liabilities | 1,622,000 | 1,729,000 | ||||||
| Other liabilities | 19,000 | 38,000 | ||||||
| Related party note | 0 | 124,000 | ||||||
| Long-term debt, net of current portion and deferred finance costs | 730,000 | 834,000 | ||||||
| Total liabilities | 2,371,000 | 2,725,000 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| Stockholders’ Equity: | ||||||||
| Common stock | 285,000 | 260,000 | ||||||
| Additional paid-in capital | 20,979,000 | 20,656,000 | ||||||
| Accumulated deficit | (20,086,000 | ) | (19,955,000 | ) | ||||
| Total stockholders’ equity | 1,178,000 | 961,000 | ||||||
| Total liabilities and stockholders’ equity | $ | 3,549,000 | $ | 3,686,000 | ||||