KINDERHOOK, N.Y.--(BUSINESS WIRE)--American Bio Medica Corporation (ABMC.PK) today announced financial results for the fourth quarter and the year ended December 31, 2012.
Net sales in the fourth quarter of 2012 were $2,302,000 compared to $2,374,000 in the fourth quarter of 2011, a decrease of 3%. Operating loss for the fourth quarter of 2012 was $501,000, compared to operating income of $27,000 in the fourth quarter of 2011. Net loss in the fourth quarter of 2012 was $564,000, or $0.03 per share, compared to a net loss of $15,000, or $0.00 per share, in the fourth quarter of 2011.
Net sales for the year ended December 31, 2012 were $9,343,000, compared to net sales of $9,272,000 for the year ended December 31, 2011; representing an increase of 1.0%. Operating loss for 2012 was $929,000, compared to an operating loss of $146,000 in 2011. Net loss for 2012 was $1,111,000, or $0.05 per share, compared to $345,000, or $0.02 per share, in 2011.
ABMC Chief Executive Officer, Stan Cipkowski stated, “Sales were relatively flat in 2012; although the very modest increase in sales is a welcome change from the declines in the previous three years. In 2012, we incurred increased legal fees and other costs associated with regulatory compliance, as well as increased inventory disposals. Expense reductions in other areas of the company did mitigate the impact these increased costs had on financial results by minimizing the loss.”
Cipkowski continued, “Our new financing package, for up to $3 million, with Imperium Commercial Finance, will provide us with the necessary capital to diversify our markets through investments in new products and position the Company for profitable sales growth in 2013. I have three primary objectives in our core drug test business this year; offering a full line of cost effective, foreign manufactured drug tests for price conscious markets, the marketing clearance and commercialization of a new product for both clinical and consumer markets, and the submission of our FDA 510(k) marketing application for our oral fluid drugs of abuse test.”
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, 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, 2011, 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.
|
American Bio Medica Corporation Statements of Operation |
|||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | ||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||||||
| (unaudited) | (unaudited) | (unaudited) | |||||||||||||||
| Net sales | $ | 2,302,000 | $ | 2,374,000 | $ | 9,343,000 | $ | 9,272,000 | |||||||||
| Cost of goods sold | 1,853,000 | 1,377,000 | 5,999,000 | 5,396,000 | |||||||||||||
| Gross profit | 449,000 | 997,000 | 3,344,000 | 3,876,000 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Research and development | 46,000 | 53,000 | 207,000 | 223,000 | |||||||||||||
| Selling and marketing | 326,000 | 458,000 | 1,829,000 | 1,777,000 | |||||||||||||
| General and administrative | 578,000 | 459,000 | 2,237,000 | 2,022,000 | |||||||||||||
| Total operating expenses | 950,000 | 970,000 | 4,273,000 | 4,022,000 | |||||||||||||
| Operating income / (loss) | (501,000 | ) | 27,000 | (929,000 | ) | (146,000 | ) | ||||||||||
| Other income/(expense) - net | (63,000 | ) | (38,000 | ) | (184,000 | ) | (189,000 | ) | |||||||||
| Net loss before tax | (564,000 | ) | (11,000 | ) | (1,113,000 | ) | (335,000 | ) | |||||||||
| Income tax expense | 0 | (4,000 | ) | 2,000 | (10,000 | ) | |||||||||||
| Net loss | $ | (564,000 | ) | $ | (15,000 | ) | $ | (1,111,000 | ) | $ | (345,000 | ) | |||||
| Basic & diluted loss per common share | $ | (0.03 | ) | $ | (0.00 | ) | $ | (0.05 | ) | $ | (0.02 | ) | |||||
| Basic & diluted weighted average shares outstanding | 21,833,003 | 21,744,768 | 21,833,003 | 21,744,768 | |||||||||||||
|
American Bio Medica Corporation Balance Sheets |
|||||||||
| December 31, | December 31, | ||||||||
|
2012
(unaudited) |
2011 | ||||||||
| ASSETS | |||||||||
| Current Assets | |||||||||
| Cash and cash equivalents | $ | 89,000 | $ | 93,000 | |||||
|
Accounts receivable, net of allowance for doubtful accounts of $60,000 at December 31, 2012 and $66,000 at December 31, 2011 |
810,000 |
883,000 |
|||||||
|
Inventory, net of allowance for slow moving and obsolete inventory of $261,000 at December 31, 2012 and $401,000 at December 31, 2011 |
2,571,000 |
3,239,000 |
|||||||
| Prepaid expenses and other current assets | 50,000 | 61,000 | |||||||
| Total current assets | 3,520,000 | 4,276,000 | |||||||
| Property, plant and equipment, net | 1,192,000 | 1,304,000 | |||||||
| Debt issuance costs, net | 29,000 | 26,000 | |||||||
| Patents, net | 24,000 | 0 | |||||||
| Other assets | 14,000 | 30,000 | |||||||
| Total assets | $ | 4,779,000 | $ | 5,636,000 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Current liabilities | |||||||||
| Accounts payable | $ | 1,016,000 | $ | 631,000 | |||||
| Accrued expenses and other current liabilities | 174,000 | 217,000 | |||||||
| Wages payable | 231,000 | 264,000 | |||||||
| Line of credit | 321,000 | 397,000 | |||||||
| Current portion of long-term debt | 1,404,000 | 872,000 | |||||||
| Current portion of unearned grant | 0 | 10,000 | |||||||
| Total current liabilities | 3,146,000 | 2,391,000 | |||||||
| Other liabilities | 145,000 | 143,000 | |||||||
| Long-term debt | 0 | 608,000 | |||||||
| Related party note | 124,000 | 124,000 | |||||||
| Total liabilities | 3,415,000 | 3,266,000 | |||||||
| Stockholders' Equity: | |||||||||
| Common stock | 218,000 | 217,000 | |||||||
| Additional paid-in capital | 19,490,000 | 19,386,000 | |||||||
| Accumulated deficit | (18,344,000 | ) | (17,233,000 | ) | |||||
| Total stockholders’ equity | 1,364,000 | 2,370,000 | |||||||
| Total liabilities and stockholders' equity | $ | 4,779,000 | $ | 5,636,000 | |||||