ABMC Reports First Quarter 2014 Results

  ABMC Reports First Quarter 2014 Results

Business Wire

KINDERHOOK, N.Y. -- May 15, 2014

American Bio Medica Corporation (OTCQB:ABMC) today announced financial results
for the three months ended March 31, 2014.

Net sales for the first quarter of 2014 were $2,043,000, a decrease of
$82,000, or 3.8%, when compared to net sales of $2,125,000 for the first
quarter of 2013. Operating income for the first quarter of 2014 was $62,000,
compared to an operating loss of $362,000 in the first quarter of 2013. Net
income for the first quarter of 2014 was $9,000, or $0.00 per share, compared
to a net loss of $424,000, or $0.02 per share reported in the first quarter of
2013.

ABMC Interim Chief Executive Officer Melissa A. Waterhouse stated, “I am
pleased to report our first quarter of net income for the first time in many
years. From a sales perspective, organic growth partially offset the loss of
oral fluid workplace sales in the first quarter 2014. Typically workplace oral
fluid sales accounted for approximately 15% of our sales, but sales only
declined 3.8% in the first quarter 2014. This is a result of our refocus on
forensic oral fluid sales and sales of our urine-based products to other core
markets.”

Waterhouse continued, “Expenses are under control and we are continuing to
take actions to bring a new urine-based drug test to market; this new product
will be ideal for the clinical and pain management markets, as well as the
criminal justice market. Strategic opportunities are still being considered
and evaluated; this includes a possible restructure of debt which could
further strengthen our financial condition.”

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.

                          (financial tables follow)

AMERICAN BIO MEDICA CORPORATION
Condensed Statements of Operations

(unaudited)
                                              For the three    For the three
                                               months ended     months ended
                                               March 31, 2014   March 31, 2013
                                                                
Net sales                                    $ 2,043,000      $ 2,125,000
Cost of goods sold                             1,166,000       1,339,000
Gross profit                                   877,000          786,000
                                                                
Operating expenses:
Research and development                       46,000           63,000
Selling and marketing                          292,000          475,000
General and administrative                     477,000         610,000
Total operating expenses                       815,000          1,148,000
                                                                
Operating income / (loss)                      62,000           (362,000)
                                                                
Other expense                                  (52,000)        (61,000)
                                                                
Net income / (loss) before tax                 10,000           (423,000)
                                                                
Income tax expense                             (1,000)         (1,000)
                                                                
Net income / (loss)                          $ 9,000          $ (424,000)
                                                                
Basic & diluted income / (loss) per common   $ 0.00           $ (0.02)
share
                                                                
Weighted average shares outstanding –          23,168,155       22,166,336
basic
Weighted average shares outstanding –          23,260,582       22,166,336
diluted
                                                                
(Condensed Balance Sheets follow)

American Bio Medica Corporation
Condensed Balance Sheets

                                                March 31,       December 31,
                                                 2014             2013
                                                 (unaudited)
ASSETS
Current Assets
Cash and cash equivalents                      $ 521,000        $ 646,000
Accounts receivable, net of allowance for
doubtful accounts of                             909,000          875,000
$52,000 at March 31, 2014 and $58,000 at
December 31, 2013
Inventory, net of allowance of $399,000 at
March 31, 2014 and                               1,966,000        2,071,000
December 31, 2013
Current portion of deferred financing            72,000           51,000
Prepaid expenses and other current assets        124,000          96,000
Total current assets                             3,592,000        3,739,000
Property, plant and equipment, net               1,062,000        1,090,000
Deferred finance costs                           31,000           80,000
Patents, net                                     44,000           43,000
Other assets                                     14,000           14,000
Total assets                                   $ 4,743,000      $ 4,966,000
                                                                  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable                                 633,000          597,000
Accrued expenses and other current               252,000          314,000
liabilities
Wages payable                                    255,000          233,000
Line of credit, net                              814,000          987,000
Current portion of long-term debt, net           1,136,000        1,226,000
Total current liabilities                        3,090,000        3,357,000
Other liabilities                                148,000          147,000
Related party note                               124,000          124,000
Total liabilities                                3,362,000        3,628,000
                                                                  
COMMITMENTS AND CONTINGENCIES
Stockholders’ Equity:
Common stock                                     232,000          229,000
Additional paid-in capital                       20,272,000       20,241,000
Accumulated deficit                              (19,123,000)     (19,132,000)
Total stockholders’ equity                       1,381,000        1,338,000
Total liabilities and stockholders’ equity     $ 4,743,000      $ 4,966,000

Contact:

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