ABMC Reports Second Quarter 2020 Results
American Bio Medica Corporation (ABMC) reported strong financial results for Q2 and the first half of 2020, driven by increased sales of its Covid-19 antibody test. Net sales rose by 83.5% year-over-year in Q2 2020, totaling $1.76 million, and increased 32.2% to $2.49 million for the six months ended June 30, 2020. Despite heightened selling and marketing expenses, operational efficiency improved, yielding a modest operating income of $16,000 in Q2 2020. However, net losses persisted at $21,000 and $346,000 for Q2 and the first half of 2020, respectively.
- Net sales increased $800,000 (83.5%) in Q2 2020 compared to Q2 2019.
- Operating income of $16,000 in Q2 2020 versus an operating loss of $155,000 in Q2 2019.
- Sales opportunities and positive reception for the Covid-19 antibody test.
- Continued exploration of alternative products beyond antibody tests.
- Net loss of $21,000 in Q2 2020, despite increased sales.
- Operating loss of $255,000 for the first half of 2020.
KINDERHOOK, NY / ACCESSWIRE / September 15, 2020 / American Bio Medica Corporation (OTC PINK:ABMC) today announced financial results for the three and six months ended June 30, 2020.
Chief Executive Officer Melissa A. Waterhouse stated, "We are pleased to report increased sales when comparing 2020 to 2019 (from both a quarter over quarter and year over year perspective) as a result of our distribution of the Covid-19 antibody test. There are a number of sales opportunities for the Covid-19 test in the pipeline and marketing applications yet to come for the product. In the meantime, it has been well received by customers. From an operational perspective, selling and marketing expense increased (due to commissions paid on sales of the rapid Covid-19 test), however, all other expenses decreased in the second quarter of 2020 even with increased sales. This allowed us to achieve operating income in the second quarter of 2020."
Waterhouse continued, "As the market for Covid-19 testing is developing, we are reviewing alternative products to offer our customers in addition to the antibody tests and looking for avenues to capitalize on our manufacturing operations. As indicated in our last announcement, we are seeing some rebound in the drug testing markets as businesses and treatment programs re-open, but we are still uncertain if or how long this rebound will continue as the pandemic progresses."
Financial Highlights
- Net sales in the second quarter of 2020 were
$1,758,000 , compared to net sales of$958,000 in the second quarter of 2019; an increase of$800,000 , or83.5% . Net sales in the six months ended June 30, 2020 were$2,486,000 , compared to$1,880,000 in the six months ended June 30, 2019; an increase of$606,000 , or32.2% . - Operating income was
$16,000 in the second quarter of 2020, compared to an operating loss of$155,000 in the second quarter of 2019. Operating loss was$255,000 in the six months ended June 30, 2020, compared to an operating loss of$329,000 in the six months ended June 30, 2019. - Net loss was
$21,000 , or$(0.00) per share in the second quarter of 2020, compared to net loss of$56,000 , or$(0.00) per share, in the second quarter of 2019. Net loss was$346,000 , or$(0.01) per share, in the six months ended June 30, 2020, compared to net loss of$296,000 , or$(0.01) per share, for the six months ended June 30, 2019.
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, and distributes a rapid test to detect Covid-19 antibodies. The Company and its worldwide distribution network target the workplace, government, corrections, clinical and educational markets.
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, future sales and profit levels of the rapid antibody test for Covid-19 that we are distributing, 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, 2019, 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.
Contacts:
Melissa A. Waterhouse
Chief Executive Officer
(800) 227-1243, Ext 107
(financial tables follow)
AMERICAN BIO MEDICA CORPORATION
Condensed Statements of Operations
(unaudited)
| For the three | For the three | For the six | For the six | |||||||||||||
| months ended | months ended | months ended | months ended | |||||||||||||
| June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||||||
Net sales | $ | 1,758,000 | $ | 958,000 | $ | 2,486,000 | $ | 1,880,000 | ||||||||
Cost of goods sold | 1,176,000 | 652,000 | 1,714,000 | 1,269,000 | ||||||||||||
Gross profit | 582,000 | 306,000 | 772,000 | 611,000 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 19,000 | 20,000 | 52,000 | 39,000 | ||||||||||||
Selling and marketing | 230,000 | 107,000 | 319,000 | 219,000 | ||||||||||||
General and administrative | 317,000 | 334,000 | 656,000 | 682,000 | ||||||||||||
Total operating expenses | 566,000 | 461,000 | 1,027,000 | 940,000 | ||||||||||||
Operating income / (loss) | 16,000 | (155,000 | ) | (255,000 | ) | (329,000 | ) | |||||||||
Other (expense) / income | (37,000 | ) | 101,000 | (91,000 | ) | 35,000 | ||||||||||
Net loss before tax | (21,000 | ) | (54,000 | ) | (346,000 | ) | (294,000 | ) | ||||||||
Income tax expense | 0 | (2,000 | ) | 0 | (2,000 | ) | ||||||||||
Net loss | $ | (21,000 | ) | $ | (56,000 | ) | $ | (346,000 | ) | $ | (296,000 | ) | ||||
Basic & diluted loss per common share | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.01 | ) | ||||
Weighted average shares outstanding - basic and diluted | 35,905,948 | 32,521,675 | 34,937,236 | 32,445,244 | ||||||||||||
American Bio Medica Corporation
Condensed Balance Sheets
| June 30, | December 31, | |||||||
| 2020 | 2019 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 225,000 | $ | 4,000 | ||||
Accounts receivable, net of allowance for doubtful accounts of | 350,000 | 370,000 | ||||||
Inventory, net of allowance of | 769,000 | 810,000 | ||||||
Prepaid expenses and other current assets | 133,000 | 6,000 | ||||||
Right of Use Asset - Operating Leases | 34,000 | 34,000 | ||||||
Total current assets | 1,511,000 | 1,224,000 | ||||||
Property, plant and equipment, net | 608,000 | 644,000 | ||||||
Patents, net | 112,000 | 116,000 | ||||||
Right of Use Asset - Operating Leases | 58,000 | 73,000 | ||||||
Other assets | 21,000 | 21,000 | ||||||
Total assets | $ | 2,310,000 | $ | 2,078,000 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 627,000 | $ | 652,000 | ||||
Accrued expenses and other current liabilities | 663,000 | 543,000 | ||||||
Right of Use Liability - Operating Leases | 32,000 | 34,000 | ||||||
Wages payable | 134,000 | 104,000 | ||||||
Line of credit | 226,000 | 337,000 | ||||||
PPP Loan | 332,000 | 0 | ||||||
Current portion of long-term debt | 1,121,000 | 17,000 | ||||||
Total current liabilities | 3,135,000 | 1,687,000 | ||||||
Long-term debt/other liabilities, net of deferred finance costs | 0 | 1,108,000 | ||||||
Right of Use Liability - Operating Leases | 58,000 | 73,000 | ||||||
Total liabilities | 3,193,000 | 2,868,000 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
Stockholders' Deficit: | ||||||||
Common stock | 359,000 | 327,000 | ||||||
Additional paid-in capital | 21,658,000 | 21,437,000 | ||||||
Accumulated deficit | (22,900,000 | ) | (22,554,000 | ) | ||||
Total stockholders' deficit | (883,000 | ) | (790,000 | ) | ||||
Total liabilities and stockholders' deficit | $ | 2,310,000 | $ | 2,078,000 | ||||
SOURCE: American Bio Medica Corporation
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