ABMC Reports Third Quarter 2021 Results

Rhea-AI Summary

American Bio Medica Corporation (ABMC) announced its financial results for Q3 and the first nine months of 2021, revealing a 16.1% sales increase from Q2 2021. This growth is attributed to a returning drug testing market and new Covid-19 test products. However, net sales dropped by 30.5% year-over-year in Q3 and 49.3% for the nine-month period due to reduced Covid-19 test sales. Operating expenses remained stable, while the company benefited from forgiven PPP loans and claimed Employee Retention Credits, resulting in other income of $581,000 in Q3. CEO anticipates continued sales growth through Q4.

Positive

• Sales increased by 16.1% from Q2 2021.
• New Covid-19 products contributed to higher sales.
• Stabilized clinical sales observed.
• Open sales orders decreased to a reasonable level.
• Forgiven PPP loan of $332,000 in August 2021.
• Employee Retention Credit (ERC) resulted in additional income of $581,000 in Q3.

Negative

• Net sales declined by 30.5% in Q3 2021 compared to Q3 2020.
• Net sales decreased by 49.3% for the nine-month period in 2021 compared to 2020.
• Decline primarily due to reduced sales of Covid-19 rapid tests.

KINDERHOOK, NY / ACCESSWIRE / November 18, 2021 / American Bio Medica Corporation (OTCQB:ABMC) today announced financial results for the three and nine months ended September 30, 2021.

Chief Executive Officer Melissa A. Waterhouse stated, "We are encouraged by the fact that when compared to the second quarter 2021, sales actually increased 16.1% in the third quarter 2021. This increase is a result of our drug testing markets continuing to return to normal, increased contract manufacturing sales from our current customers, stabilized clinical sales and higher sales of rapid Covid-19 tests as a result of new products we started to offer within the last few months. At the end of the third quarter, we had open sales orders of ABMC drug tests in the amount of $336,000 due to continued delays in our supply chains but, we are taking whatever steps possible to mitigate the increased lead times. As of today, our open sales order levels have decreased to a more reasonable level."

"Net sales declined 30.5% in the third quarter 2021 when compared to the third quarter 2020 and 49.3% when comparing the nine months periods in 2021 and 2020; the primary reason for the decline in both periods was decreased sales of Covid-19 rapid tests. Operating expenses decreased slightly when comparing both the three and nine month periods in 2021 to the three and nine month periods in 2020. Barring any unexpected expense, we believe this level of operating expenses will continue as we closely examine all expenses so they remain in line with sales."

"Our PPP loan (in the amount of $332,000) was forgiven in August 2021. In the third quarter 2021 we began claiming the Employee Retention Credit (ERC) and this resulted in other income in the amount of $44,000 in the third quarter 2021. In addition, we have filed amended quarterly tax returns to claim refunds related to the ERC for the first, second and part of the third quarter 2021 and this resulted in other income in the amount of $537,000 in the third quarter 2021. Provided the amended returns are accepted as filed (which we have no reason to believe they will not be), we are hopeful we will start receiving funds starting in late 2021."

Waterhouse concluded, "From a sales perspective, considering sales to date in the current quarter and what we are expecting to ship in the fourth quarter 2021, we believe a second consecutive quarter of sales growth is possible in 2021. Contract manufacturing sales have already increased when comparing year-to-date 2021 with year-to date in 2020 and we still have more orders that are expected to ship in 2021. Based on current information, there is potential for contract manufacturing sales to further increase into 2022."

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. ABMC also provides contract manufacturing services related to certain infectious diseases; such as malaria and RSV and, distributes rapid tests to detect Covid-19 antibodies and rapid Covid-19 antigen tests.

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, RT-PCR test and rapid antigen 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, 2020, 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, 2021				September 30, 2020				September 30, 2021				September 30, 2020
Net sales	$	614,000			$	883,000			$	1,709,000			$	3,370,000
Cost of goods sold		429,000				648,000				1,284,000				2,362,000
Gross profit		185,000				235,000				425,000				1,008,000
Operating expenses:
Research and development		21,000				24,000				63,000				77,000
Selling and marketing		79,000				89,000				233,000				408,000
General and administrative		289,000				294,000				1,086,000				951,000
Total operating expenses		389,000				407,000				1,382,000				1,436,000
Operating loss		(204,000	)			(172,000	)			(957,000	)			(428,000)
Other income / (expense)		867,000				(42,000	)			821,000				(133,000)
Net income / (loss) before tax		663,000				(214,000	)			(136,000	)			(561,000)
Income tax expense		0				(2,000	)			(2,000	)			(2,000)
Net income / (loss)	$	663,000			$	(216,000	)		$	(138,000	)		$	(563,000)
Basic & diluted income / (loss) per common share	$	0.02			$	(0.01	)		$	(0.00	)		$	(0.02)
Weighted average shares outstanding - basic and diluted		44,020,650				35,953,476				39,281,286				35,278,455

(Condensed Balance Sheets follow)

American Bio Medica Corporation
Condensed Balance Sheets

		September 30,				December 31,
		2021				2020
		(unaudited)
ASSETS
Current Assets
Cash and cash equivalents		$	41,000			$	98,000
Accounts receivable, net of allowance for doubtful accounts of $5,000 at September 30, 2021 and $22,000 December 31, 2020			545,000				407,000
Inventory, net of allowance of $323,000 at September 30, 2021 and $279,000 at December 31, 2020			419,000				536,000
Tax Receivable - Employee Retention Credit			537,000				0
Prepaid expenses and other current assets			31,000				104,000
Right of Use Asset - Operating Leases			36,000				35,000
Total current assets			1,609,000				1,180,000
Property, plant and equipment, net			529,000				576,000
Patents, net			102,000				108,000
Right of Use Asset - Operating Leases			14,000				41,000
Other assets			21,000				21,000
Total assets		$	2,275,000			$	1,926,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable		$	667,000			$	577,000
Accrued expenses and other current liabilities			468,000				620,000
Right of Use Liability - Operating Leases			34,000				33,000
Wages payable			83,000				107,000
Line of credit			446,000				277,000
PPP Loan			0				332,000
Current portion of long-term debt, net of deferred finance costs			1,290,000				75,000
Total current liabilities			2,988,000				2,021,000
Long-term debt/other liabilities, net of current portion & deferred finance costs			0				1,120,000
Right of Use Liability - Operating Leases			13,000				41,000
Total liabilities			3,001,000				3,182,000
COMMITMENTS AND CONTINGENCIES
Stockholders' Deficit:
Common stock			449,000				377,000
Additional paid-in capital			22,313,000				21,717,000
Accumulated deficit			(23,488,000	)			(23,350,000	)
Total stockholders' deficit			(726,000	)			(1,256,000	)
Total liabilities and stockholders' deficit		$	2,275,000			$	1,926,000

Contacts:
Melissa A. Waterhouse
Chief Executive Officer
(800) 227-1243, Ext 107

SOURCE: American Bio Medica Corporation

View source version on accesswire.com:
https://www.accesswire.com/673646/ABMC-Reports-Third-Quarter-2021-Results

FAQ

What are American Bio Medica's Q3 2021 financial results?

ABMC reported a 16.1% sales increase from Q2 2021, but net sales declined 30.5% year-over-year in Q3 2021.

How much did ABMC's net sales decline in 2021?

Net sales declined by 30.5% in Q3 and 49.3% for the first nine months of 2021 compared to 2020.

What factors contributed to ABMC's sales growth in Q3 2021?

Sales growth in Q3 was driven by a returning drug testing market and new Covid-19 test products.

What additional income did ABMC report in Q3 2021?

ABMC recognized $581,000 in other income from forgiven PPP loans and Employee Retention Credits.

What are ABMC's expectations for Q4 2021?

CEO Melissa A. Waterhouse anticipates a second consecutive quarter of sales growth based on current orders and sales forecasts.