KINDERHOOK, N.Y.--(BUSINESS WIRE)--American Bio Medica Corporation (OTCPK: ABMC) today announced financial results for the three and nine months ended September 30, 2017.
Chief Executive Officer Melissa A. Waterhouse stated, “Although the third quarter of 2017 represented a decrease in sales when compared to the third quarter of 2016, sales actually increased when compared to the first and second quarter of 2017. As of result of OTC marketing clearance for our Rapid TOX Cup II in mid-August 2017, we are working on a number of sales opportunities that we are hopeful will offset the sales declines due to the loss of government accounts (accounts that are the subject of our ongoing litigation) and contract manufacturing sales. From an operational standpoint, we are continually reviewing our expenses and resources to ensure we are utilizing them for maximum benefit and to ensure expenses stay in line with sales.”
Financial Highlights
- Net sales in the third quarter of 2017 were $1,354,000, compared to $1,417,000 in the third quarter 2016, a decrease of 4.4%. Net sales in the nine months ended September 30, 2017 were $3,975,000, compared to $4,392,000 in the nine months ended September 30, 2016, a decrease of 9.5%. The loss of a government account in the fourth quarter of 2016 and the anticipated decrease in contract manufacturing sales were the primary cause of the reduced sales in both periods. However, these declines were partially offset by increased international and national account sales in both periods.
- Operating income was $5,000 in the third quarter of 2017, compared to an operating loss of $60,000 in the third quarter of 2016. Operating expenses decreased 16.4% in the third quarter of 2017 when compared to the third quarter 2016. We saw reductions in R&D expense (7.1%) and selling and marketing expenses (42.2%), while G&A expense increased slightly (2.2%) due to litigation we initiated earlier in 2017.
- Operating loss was $83,000 in the nine months ended September 30, 2017, compared to an operating loss of $118,000 in the nine months ended September 30, 2016. Operating expenses declined 14.0% in the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016. Reductions in R&D (30.9%) and selling and marketing expense (35.7%) were partially offset by increased G&A costs (4.3%), again due to litigation. In addition, the nine months ended September 30, 2016 included other income of $200,000 primarily related to a tech transfer that did not recur in the nine months ended September 30, 2017.
- Net loss was $49,000 in the third quarter of 2017, compared to net loss of $88,000 in the third quarter of 2016. Net loss was $252,000 in the nine months ended September 30, 2017, compared to net loss of $130,000 in the nine months ended September 30, 2016.
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, 2016, 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)
| 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, |
||||||||||
| Net sales | $ | 1,354,000 | $ | 1,417,000 | $ | 3,975,000 | $ | 4,392,000 | |||||
| Cost of goods sold | 788,000 | 806,000 | 2,279,000 | 2,441,000 | |||||||||
| Gross profit | 566,000 | 611,000 | 1,696,000 | 1,951,000 | |||||||||
| Operating expenses: | |||||||||||||
| Research and development | 26,000 | 28,000 | 94,000 | 136,000 | |||||||||
| Selling and marketing | 159,000 | 275,000 | 531,000 | 827,000 | |||||||||
| General and administrative | 376,000 | 368,000 | 1,154,000 | 1,106,000 | |||||||||
| Total operating expenses | 561,000 | 671,000 | 1,779,000 | 2,069,000 | |||||||||
| Operating income / (loss) | 5,000 | (60,000) | (83,000) | (118,000) | |||||||||
| Other (expense)/ income | (56,000) | (27,000) | (170,000) | (10,000) | |||||||||
| Net loss before tax | (51,000) | (87,000) | (253,000) | (128,000) | |||||||||
| Income tax benefit / ( expense) | 2,000 | (1,000) | 1,000 | (2,000) | |||||||||
| Net loss | $ | (49,000) | $ | (88,000) | $ | (252,000) | $ | (130,000) | |||||
| Basic & diluted loss per common share | $ | (0.00) | $ | (0.00) | $ | (0.01) | $ | (0.01) | |||||
| Weighted average shares outstanding – basic and diluted |
29,297,333 |
27,284,308 |
29,129,168 |
27,056,216 |
|||||||||
(Condensed Balance Sheets follow)
| American Bio Medica Corporation | |||||||
| Condensed Balance Sheets | |||||||
| September 30, | December 31, | ||||||
|
2017
(unaudited) |
2016 | ||||||
| ASSETS | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 150,000 | $ | 156,000 | |||
| Accounts receivable, net of allowance for doubtful accounts of $51,000 at September 30, 2017 and $49,000 at December 31, 2016 |
521,000 |
556,000 |
|||||
| Inventory, net of allowance of $453,000 at September 30, 2017 and $449,000 at December 31, 2016 |
1,462,000 |
1,582,000 |
|||||
| Prepaid expenses and other current assets | 49,000 | 92,000 | |||||
| Total current assets | 2,182,000 | 2,386,000 | |||||
| Property, plant and equipment, net | 810,000 | 824,000 | |||||
| Patents, net | 107,000 | 93,000 | |||||
| Other assets | 21,000 | 21,000 | |||||
| Deferred finance costs – line of credit, net | 23,000 | 47,000 | |||||
| Total assets | $ | 3,143,000 | $ | 3,371,000 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 306,000 | $ | 304,000 | |||
| Accrued expenses and other current liabilities | 287,000 | 276,000 | |||||
| Wages payable | 257,000 | 299,000 | |||||
| Line of credit | 580,000 | 639,000 | |||||
| Current portion of long-term debt | 87,000 | 75,000 | |||||
| Total current liabilities | 1,517,000 | 1,593,000 | |||||
| Long-term debt, net of current portion and deferred finance costs | 748,000 | 753,000 | |||||
| Other long-term liabilities | 22,000 | 0 | |||||
| Total liabilities | 2,287,000 | 2,346,000 | |||||
| COMMITMENTS AND CONTINGENCIES | |||||||
| Stockholders’ Equity: | |||||||
| Common stock | 293,000 | 288,000 | |||||
| Additional paid-in capital | 21,115,000 | 21,037,000 | |||||
| Accumulated deficit | (20,552000) | (20,300,000) | |||||
| Total stockholders’ equity | 856,000 | 1,025,000 | |||||
| Total liabilities and stockholders’ equity | $ | 3,143,000 | $ | 3,371,000 | |||