ABMC American Bio Medica Corporation (CE)

American Bio Medica Corporation (OTCQB:ABMC) today announced financial results for the three and six months ended June 30, 2014.

Net sales for the second quarter of 2014 were $1,811,000 compared to $2,380,000, in the second quarter of 2013, representing a decrease of $569,000, or 23.9%. For the six months ended June 30, 2014, net sales were $3,854,000 compared to $4,505,000 for the six months ended June 30, 2013, representing a decrease of $651,000, or 14.5%.

The Company reported operating income of $23,000 in the second quarter of 2014, compared to an operating loss of $(211,000) in the second quarter of 2013. Net loss for the second quarter of 2014 was $(41,000), or $(0.00) per share, compared to a net loss of $(294,000), or $(0.01) per share in the second quarter of 2013. Operating income for the first six months of 2014 was $85,000, compared to an operating loss of $(573,000) in the first six months of 2013. Net loss for the first half of 2014 was $(32,000), or $(0.00) per share, compared to a net loss of $(718,000), or $(0.03) per share in the first half of 2013.

ABMC Chief Executive Officer Melissa A. Waterhouse stated, “We continue to see year over year improvement in our financial condition as a result of our diligence in keeping expenses in line with sales. However, from a sales perspective, the second quarter was disappointing. In addition to the loss of workplace oral fluid sales in the second quarter, we experienced a decline in government sales in the second quarter 2014 (when sales had been increasing over the past several quarters). Some states are being fiscally conservative and decreasing their drug testing budgets, and price competition from foreign manufacturers is ever present in the government market. With some accounts, order timing may be the issue. Presently, we are unsure if this new trend will continue into future quarters. Expansion of our product line is critical to jump start sales growth; to that end, we are still on track to bring another urine-based drug test to market in 2014 (for the clinical and pain management markets as well as government markets). After that, we intend to begin development on new assays for market introduction in 2015.”

Waterhouse continued, “In the second quarter of 2014, we refinanced our mortgage on our Kinderhook facility enabling us to slightly decrease our interest costs and reclassify a portion of the mortgage back to a long-term liability. High interest rates on other debt continue to negatively impact our financial condition, so we are continuing our efforts to further restructure debt.”

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® and Rapid STAT™ test 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, 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, 2013, 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.

(condensed 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, 2014     June 30, 2013     June 30, 2014     June 30, 2013   Net sales $ 1,811,000 $ 2,380,000 $ 3,854,000 $ 4,505,000 Cost of goods sold   1,020,000     1,411,000     2,186,000     2,750,000 Gross profit   791,000     969,000     1,668,000     1,755,000   Operating expenses: Research and development 45,000 115,000 91,000 178,000 Selling and marketing 267,000 491,000 559,000 966,000 General and administrative   456,000     574,000     933,000     1,184,000 Total operating expenses   768,000     1,180,000     1,583,000     2,328,000   Operating income / (loss)   23,000     (211,000)     85,000     (573,000)   Other expense   (64,000)     (82,000)     (116,000)     (143,000)   Net loss before tax (41,000) (293,000) (31,000) (716,000)   Income tax expense   0     (1,000)     (1,000)     (2,000)   Net loss $ (41,000)   $ (294,000)   $ (32,000)   $ (718,000)   Basic & diluted loss per common share

$

(0.00)

 

$

(0.01)

 

$

(0.00)

 

$

(0.03)

  Weighted average shares outstanding – basic and diluted  

23,168,155

   

22,166,336

   

23,168,155

   

22,109,560

 

(Condensed Balance Sheets follow)

  American Bio Medica Corporation Condensed Balance Sheets       June 30,   December 31,   2014

(unaudited)

    2013 ASSETS Current Assets

Cash and cash equivalents

$ 447,000 $ 646,000

Accounts receivable, net of allowance for doubtful accounts of$43,000 at June 30, 2014 and $58,000 at December 31, 2013

742,000

875,000

Inventory, net of allowance of $413,000 at June 30, 2014 and$399,000 at December 31, 2013

1,929,000

2,071,000

Current portion of deferred financing 56,000 51,000 Prepaid expenses and other current assets   95,000     96,000 Total current assets 3,269,000 3,739,000 Property, plant and equipment, net 1,040,000 1,090,000 Deferred finance costs 20,000 80,000 Patents 47,000 43,000 Other assets   14,000     14,000 Total assets $ 4,390,000   $ 4,966,000   LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable 462,000 $ 597,000 Accrued expenses and other current liabilities 224,000 314,000 Wages payable 250,000 233,000 Line of credit, net 769,000 987,000 Current portion of long-term debt, net   886,000     1,226,000 Total current liabilities 2,591,000 3,357,000 Other liabilities 68,000 147,000 Related party note 124,000 124,000 Long-term debt   257,000     0 Total liabilities 3,040,000 3,628,000   COMMITMENTS AND CONTINGENCIES Stockholders’ Equity: Common stock 232,000 229,000 Additional paid-in capital 20,282,000 20,241,000 Accumulated deficit   (19,164,000)     (19,132,000) Total stockholders’ equity   1,350,000     1,338,000 Total liabilities and stockholders’ equity $ 4,390,000   $ 4,966,000

American Bio Medica CorporationMelissa A. Waterhouse, (800) 227-1243, Ext 107Chief Executive Officer