--Announces Refinancing of its Series A Debentures and Mortgage--
KINDERHOOK, N.Y. -- (Business Wire)
American Bio Medica Corporation (OTCQB:ABMC) today announced financial
results for the fourth quarter and year ended December 31, 2014, and the
completion of debt refinancing.
Chief Executive Officer Melissa A. Waterhouse stated, “2014 marked what
we hope is the beginning of the turnaround for ABMC. While sales in 2014
were negatively impacted by the loss of oral fluid workplace sales and a
decline in government sales, we were able to improve our financial
condition and cash flow by further reducing costs and streamlining
certain operations of the Company. Operating expenses decreased by over
30% in 2014 and our margins continued to improve even with continued
price pressures in the market.”
Waterhouse continued, “We continue to seek out and identify additional
measures that can bring the Company to profitability. On the expense
end, on December 31, 2014, we closed two of our three leased
manufacturing facilities in New Jersey and consolidated
strip-manufacturing operations into one facility at a cost of
approximately $92,000; however, we will see the return on this
investment within 1 year of the consolidation, and increased efficiency
in manufacturing starting in early 2015. In addition, on March 26, 2015,
we closed on a 5 year, $1.2 million dollar debt facility that will allow
us to save money on interest costs beginning in the second quarter of
2015. The facility has an interest rate of 8% and refinances debt
currently at rates of 15% ($723,000 in Debentures from 2008) and 8.25%
(a mortgage of approximately $325,000). We expect to continue to make
efforts to decrease our interest expense as we look for an alternative
debt facility for our line of credit.”
“2015 is expected to be a year of investment in selling and marketing.
New products and innovation are the key to ABMC’s growth in 2015 and
beyond. To that end, in the first quarter of 2015, we launched our
urine-based, all-inclusive drug test to criminal justice markets and our
application for FDA marketing clearance for this product has been filed
and is under FDA review. This product’s entry into the pain management
and treatment markets will have a positive impact on sales but this
market entry is dependent on the receipt of the FDA clearance. We also
have a number of new assays planned in research and development.
Development on one of the assays is nearly completed and barring any
unexpected issues, product launch is expected later in 2015.”
Financial Highlights
-
Net sales in the fourth quarter of 2014 were $1,681,000 compared to
$2,133,000 in the fourth quarter of 2013, a decrease of 21.2%. Net
sales in 2014 were $7,285,000 compared to net sales of $8,894,000 in
2013, a decrease of 18.1%.
-
Operating loss was $178,000 in the fourth quarter of 2014 compared to
an operating loss of $271,000 in the fourth quarter of 2013. Operating
loss in 2014 was $217,000 compared to an operating loss of $1,131,000
in 2013.
-
Net loss was $238,000 in the fourth quarter of 2014 compared to net
income of $145,000 in the fourth quarter of 2013. Net loss was
$490,000 in 2014 compared to net loss of $788,000 in 2013. Earnings in
the fourth quarter of 2013 and the full year 2013 were positively
impacted by the Company’s receipt of a key man insurance benefit
within that quarter.
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® tests 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, 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 |
Statements of Operation |
|
|
Three Months Ended
|
Year Ended
|
| |
December 31,
|
December 31,
|
| |
2014
|
|
2013
| |
2014
|
|
2013
|
| |
(unaudited)
| |
(unaudited)
| |
(unaudited)
| |
|
| | | | | | | |
|
Net sales
| |
$ 1,681,000
| |
$ 2,133,000
| |
$ 7,285,000
| |
$ 8,894,000
|
Cost of goods sold
| |
1,010,000
|
|
1,222,000
|
|
4,223,000
|
|
5,322,000
|
Gross profit
| |
671,000
| |
911,000
| |
3,062,000
| |
3,572,000
|
Operating expenses:
| | | | | | | | |
Research and development
| |
45,000
| |
152,000
| |
228,000
| |
645,000
|
Selling and marketing
| |
272,000
| |
344,000
| |
1,111,000
| |
1,722,000
|
General and administrative
| |
532,000
|
|
686,000
|
|
1,940,000
|
|
2,336,000
|
Total operating expenses
| |
849,000
| |
1,182,000
| |
3,279,000
| |
4,703,000
|
| | | | | | | |
|
Operating loss
| |
(178,000)
| |
(271,000)
| |
(217,000)
| |
(1,131,000)
|
| | | | | | | |
|
Other income/(expense) - net
| |
(59,000)
|
|
419,000
|
|
(271,000)
|
|
345,000
|
| | | | | | | |
|
Net income / (loss) before tax
| |
(237,000)
| |
148,000
| |
(488,000)
| |
(786,000)
|
| | | | | | | |
|
Income tax expense
| |
(1,000)
|
|
3,000
|
|
(2,000)
|
|
(2,000)
|
| | | | | | | |
|
Net income / (loss)
| |
(238,000)
|
|
145,000
|
|
(490,000)
|
|
$ (788,000)
|
| | | | | | | |
|
Basic & diluted income / (loss) per common share
| |
$ (0.01)
|
|
$ 0.01
|
|
$ (0.02)
|
|
$ (0.04)
|
| | | | | | | |
|
Basic weighted average shares outstanding
| |
23,648,315
| |
22,692,452
| |
23,336,806
| |
22,270,636
|
Diluted weighted average shares outstanding
| |
23,648,315
| |
22,807,001
| |
23,336,806
| |
22,270,636
|
| | | | | | | |
|
(Balance Sheets follow)
|
American Bio Medica Corporation |
Balance Sheets |
|
|
|
December 31,
|
|
December 31,
|
| |
2014
(unaudited)
| |
2013
|
ASSETS
| | | | |
Current Assets
| | | | |
Cash and cash equivalents
| |
$ 352,000
| |
$ 646,000
|
Accounts receivable, net of allowance for doubtful accounts of $47,000
at December 31, 2014 and $58,000 at December 31, 2013
| |
814,000
| |
875,000
|
Inventory, net of allowance of $324,000 at December 31, 2014 and
$399,000 at December 31, 2013
| |
1,722,000
| |
2,071,000
|
Current portion of deferred financing
| |
43,000
| |
51,000
|
Prepaid expenses and other current assets
| |
85,000
| |
96,000
|
Total current assets
| |
3,016,000
| |
3,739,000
|
Property, plant and equipment, net
| |
983,000
| |
1,090,000
|
Deferred finance costs
| |
0
| |
80,000
|
Patents, net
| |
65,000
| |
43,000
|
Other assets
| |
14,000
| |
14,000
|
Total assets
| |
$ 4,078,000
| |
$ 4,966,000
|
| | | |
|
LIABILITIES AND STOCKHOLDERS' EQUITY
| | | | |
Current liabilities
| | | | |
Accounts payable
| |
$ 410,000
| |
$ 597,000
|
Accrued expenses and other current liabilities
| |
192,000
| |
314,000
|
Wages payable
| |
264,000
| |
233,000
|
Line of credit, net
| |
979,000
| |
987,000
|
Current portion of long-term debt, net
| |
858,000
| |
1,226,000
|
Total current liabilities
| |
2,703,000
| |
3,357,000
|
Other liabilities
| |
68,000
| |
147,000
|
Related party note
| |
124,000
| |
124,000
|
Long term debt
| |
213,000
| |
0
|
Total liabilities
| |
3,108,000
| |
3,628,000
|
| | | |
|
Stockholders' Equity:
| | | | |
Common stock
| |
236,000
| |
229,000
|
Additional paid-in capital
| |
20,356,000
| |
20,241,000
|
Accumulated deficit
| |
(19,622,000)
| |
(19,132,000)
|
Total stockholders’ equity
| |
970,000
| |
1,338,000
|
Total liabilities and stockholders' equity
| |
$ 4,078,000
| |
$ 4,966,000
|
| | | |
|
Contacts:
American Bio Medica Corporation
Melissa A. Waterhouse,
800-227-1243, Ext 107
Chief Executive Officer
Source: American Bio Medica Corporation
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