ABMC Reports Third Quarter 2013 Results

  ABMC Reports Third Quarter 2013 Results

Business Wire

KINDERHOOK, N.Y. -- November 19, 2013

American Bio Medica Corporation (OTCQB:ABMC) today announced financial results
for the three and nine months ended September 30, 2013, and commented on the
recent death of its former CEO Stan Cipkowski; Cipkowski passed away
unexpectedly on October 31, 2013.

Cipkowski was the founder of ABMC and the inventor of the Company’s first
product line, the Rapid Drug Screen®. “Stan was one-of-a-kind and a visionary
who made an unforgettable mark on the drug testing industry and on the lives
of the many colleagues he inspired and influenced, and family and friends he
loved and enjoyed.” said Melissa A. Waterhouse, interim Chief Executive
Officer, and a long-time colleague of Mr. Cipkowski. "Stan was a dedicated and
passionate executive of ABMC for over 30 years, and he will be missed
greatly.”

Day to day operations of the Company remained unaffected as Waterhouse was
appointed as Chief Financial Officer & Chief Executive Officer on an interim
basis on October 30, 2013 after the Company became aware that Mr. Cipkowski
was no longer able to serve the Company. Waterhouse continued, “Through our
continuation plan, business functions at ABMC continue to run smoothly and I
want to assure our customers, investors, vendors and creditors that our
objective is to move the company forward. ”

The Company is also reporting its results of operations for the third quarter
2013. Net sales for the third quarter of 2013 were $2,257,000, compared to
$2,283,000 in the third quarter of 2012, representing a decrease of $26,000,
or 1.1%. For the nine months ended September 30, 2013, net sales were
$6,762,000, compared to $7,041,000 for the nine months ended September 30,
2012, representing a decrease of $279,000, or 4.0%.

The Company reported an operating loss of $(286,000) in the third quarter of
2013, compared to an operating loss of $(229,000) in the third quarter of
2012. Net loss for the third quarter of 2013 was $(213,000), or $(0.01) per
share, compared to a net loss of $(264,000), or $(0.01) per share in the third
quarter of 2012. Operating loss for the nine months ended September 30, 2013
was $(860,000), compared to an operating loss of $(427,000) in the nine months
ended September 30, 2012. Net loss for the nine months ended September 30,
2013 was $(933,000), or $(0.04) per share, compared to a net loss of
$(546,000), or $(0.03) per share in the nine months ended September 30, 2012.

Waterhouse stated,  “While we continue to experience sales declines, it does
appear that to date in 2013, the rate of decline has improved. From an expense
standpoint, while FDA compliance costs were at unprecedented levels in the
third quarter due to expenses related to our oral fluid marketing clearance
application filed in September 2013; we do not expect expenses at this level
going forward. Also, in August 2013, we implemented a number of additional
expense and personnel cuts, as well as a salary and commission deferral
program. The salary deferral program consists of a 20% salary deferral for
executive officers and senior management. While we felt some impact of these
reductions in the third quarter 2013, full impact is being felt here in the
fourth quarter.”

Waterhouse continued, “The unexpected not substantially equivalent
determination by FDA this month (related to our OralStat product) is expected
to have a negative impact on sales levels for the near future, but we are
already discussing our application with FDA through legal counsel and
regulatory consultants so we may take actions to resubmit a new 510(k)
marketing application as quickly as possible. Within the next few months, we
expect to receive benefits from the key man insurance policy we maintained on
Mr. Cipkowski, and this will allow us to move forward with actions to obtain
marketing clearance and to commercialize a new urine-based product for
clinical and possibly consumer markets. In the meantime, and we will continue
to focus on sales to physicians and pain management clinics, with our CLIA
waived Rapid TOX product line, as well as refocusing our sales efforts of
OralStat to the forensic and international markets.”

For more information on ABMC or its drug testing products, please visit
www.abmc.com.

About American Bio Medica Corporation

American Bio Medica Corporation develops, 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, including but not limited to our
ability to obtain marketing clearance on our OralStat product, 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, 2012,
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         For the         For the nine    For the nine
                       three            three
                       months ended     months ended     months ended     months ended
                      September      September      September      September
                       30, 2013         30, 2012         30, 2013         30, 2012
                                                                          
Net sales            $ 2,257,000      $ 2,283,000      $ 6,762,000      $ 7,041,000
Cost of goods         1,351,000     1,392,000     4,101,000     4,145,000  
sold
Gross profit          906,000       891,000       2,661,000     2,896,000  
                                                                          
Operating
expenses:
Research and           315,000          54,000           493,000          162,000
development
Selling and            412,000          453,000          1,378,000        1,503,000
marketing
General and           465,000       613,000       1,650,000     1,658,000  
administrative
Total
operating             1,192,000     1,120,000     3,521,000     3,323,000  
expenses
                                                                          
Operating loss        (286,000   )   (229,000   )   (860,000   )   (427,000   )
                                                                 
Other income /        70,000        (35,000    )   (75,000    )   (121,000   )
(expense)
                                                                          
Loss before            (216,000   )     (264,000   )     (935,000   )     (548,000   )
tax
                                                                          
Income tax
(expense) /           3,000         0             2,000         2,000      
benefit
                                                                          
Net loss             $ (213,000   )  $ (264,000   )  $ (933,000   )  $ (546,000   )
                                                                          
Basic &
diluted loss         $ (0.01      )  $ (0.01      )  $ (0.04      )  $ (0.03      )
per common
share
                                                                          
Weighted
average shares
outstanding –         22,166,336    21,833,003    22,128,623    21,833,003 
basic and
diluted
                                                                          

                      (Condensed Balance Sheets follow)


American Bio Medica Corporation
Condensed Balance Sheets
                                            September 30,    December 31,
                                               2013
                                                              2012        
                                               (unaudited)
ASSETS
Current Assets
Cash and cash equivalents                    $ 63,000          $ 89,000
Accounts receivable, net of allowance
for doubtful accounts of                       952,000           810,000
$58,000 at September 30, 2013 and
$60,000 at December 31, 2012
Inventory, net of allowance for slow           
moving and obsolete inventory                                    2,571,000
of $398,000 at September 30, 2013 and          2,176,000
$261,000 at December 31, 2012
Prepaid expenses and other current            63,000         50,000      
assets
Total current assets                           3,254,000         3,520,000
Property, plant and equipment, net             1,135,000         1,192,000
Debt issuance costs, net                       95,000            29,000
Patents                                        27,000            24,000
Other assets                                  14,000         14,000      
Total assets                                 $ 4,525,000     $ 4,779,000   
                                                                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable                             $ 762,000         $ 1,016,000
Accrued expenses and other current             268,000           174,000
liabilities
Wages payable                                  277,000           231,000
Line of credit, net of debt discount           863,000           321,000
Current portion of long-term debt             1,288,000      1,404,000   
Total current liabilities                      3,458,000         3,146,000
Other liabilities                              147,000           145,000
Related party note                            124,000        124,000     
Total liabilities                              3,729,000         3,415,000
                                                                 
COMMITMENTS AND CONTINGENCIES
Stockholders’ Equity:
Common stock                                   222,000           218,000
Additional paid-in capital                     19,851,000        19,490,000
Accumulated deficit                           (19,277,000 )   (18,344,000 )
Total stockholders’ equity                    796,000        1,364,000   
Total liabilities and stockholders’          $ 4,525,000     $ 4,779,000   
equity
                                                                             

Contact:

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