U. S. SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-QSB
[x] Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange
Act of 1934.
For the quarterly period ended October 31, 1998.
[ ] Transition report pursuant to Section 13 or 15 (d) of the
Securities
Exchange Act of 1934.
For the transition period from to
Commission File Number: 0-28666
AMERICAN BIO MEDICA CORPORATION
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(Exact name of small business issuer as specified in its charter) .
New York 14-1702188
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(State or other jurisdiction (I.R.S. Employer
incorporation or organization) Identification No.)
300 Fairview Avenue, Hudson, New York 12534
-------------------------------------------
(Address of principal executive offices)
800-227-1243
---------------------------
(Issuer's telephone number)
(Not Applicable)
----------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer
(1) filed all reports required to be filed by Section 13 or 15(d) of the
Exchange Act during the past 12 months (or for such shorter period that the
registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.
Yes [X] No [ ]
State the number of shares outstanding of each of the issuer's classes of
common equity as of the latest practicable date:
14,728,601 Common Shares as of December 10, 1998
Transitional Small Business Disclosure Format Yes [ ] No [X]
<PAGE>
PART I
FINANCIAL INFORMATION
<TABLE>
<CAPTION>
AMERICAN BIO MEDICA CORPORATION
BALANCE SHEETS
AS OF APRIL 30, 1998 AND OCTOBER 31, 1998 APRIL 30 OCTOBER 31,
1998 1998
(UNAUDITED)
------------ ------------
<S> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents .......................... $ 3,239,000 $ 1,597,000
Accounts receivable - net of allowance ............. 712,000 1,428,000
Inventory .......................................... 991,000 1,778,000
Prepaid expenses ................................... 24,000 384,000
------------ ------------
Total Current assets .............................. 4,966,000 5,187,000
Property, plant and equipment, net ................... 147,000 320,000
Due from officer ..................................... 235,000 254,000
Other assets ......................................... 8,000 20,000
------------ ------------
Total Assets ......................................... $ 5,356,000 $ 5,781,000
============ ============
LIABILITIES AND STOCKHOLDER'S EQUITY
Current Liabilities
Accounts payable ................................... $ 322,000 $ 1,043,000
Accrued expenses ................................... 164,000 131,000
------------ ------------
Total current liabilities ........................... 486,000 1,174,000
------------ ------------
Stockholders equity:
Preferred stock; par value $.01 per share;
5,000,000 shares authorized; 2,500 and
2,298 shares Series D, 8% cumulative,
convertible issued and outstanding (face
values $2,500,000 and $2,298,000) at April 30,
1998 and October 31, 1998 respectively ........... 0 0
Common stock; par value $.01 per share;
30,000,000 shares authorized; 14,282,989 and
14,406,495 shares issued and outstanding at
April 30, 1998 and October 31, 1998 respectively 143,000 144,000
Additional paid-in capital ........................... 12,102,000 12,206,000
Subscriptions receivable ............................. (9,000) (9,000)
Unearned compensation ................................ (24,000) (24,000)
Accumulated deficit .................................. (7,342,000) (7,710,000)
------------ ------------
Total stockholder's equity ......................... 4,870,000 4,607,000
------------ ------------
Total Liabilities and Stockholders Equity ............ $ 5,356,000 $ 5,781,000
============ ============
</TABLE>
See accompanying notes to financial statements
<PAGE>
AMERICAN BIO MEDICA CORPORATION
STATEMENTS OF OPERATIONS
(UNAUDITED)
FOR THE SIX MONTHS ENDED
OCTOBER 31,
----------------------------
1997 (NOTE C) 1998
------------ ------------
Revenues ....................................... $ 1,025,000 $ 3,081,000
Cost of sales .................................. 494,000 1,236,000
------------ ------------
Gross profit ................................... 531,000 1,845,000
------------ ------------
Operating expenses
Selling, general and administrative expenses . 996,000 1,984,000
Non-cash compensation charges ................ 668,000 0
Depreciation and amortization ................ 51,000 43,000
Research & development ....................... 0 103,000
------------ ------------
1,715,000 2,130,000
------------ ------------
Income (loss) from operations .................. (1,184,000) (285,000)
------------ ------------
Other income and expense
Interest income .............................. 51,000 17,000
------------ ------------
51,000 17,000
------------ ------------
Net (loss) .................................... $ (1,133,000) $ (268,000)
Adjustments:
Preferred stock beneficial conversion feature .. -- (123,000)
Preferred stock dividend ....................... -- (99,000)
------------ ------------
Net loss attributable to common shareholders ... $ (1,133,000) $ (490,000)
============ ============
Basic and diluted (loss)
per common share ............................ $ (0.08) $ (0.03)
Weighted average shares outstanding ........... --
basic and diluted loss per share .......... 13,718,265 14,346,669
============ ============
See accompanying notes to financial statements
<PAGE>
AMERICAN BIO MEDICA CORPORATION
STATEMENTS OF OPERATIONS
(UNAUDITED)
FOR THE THREE MONTHS ENDED
OCTOBER 31,
----------------------------
1997 (NOTE C) 1998
------------ ------------
Revenues ....................................... $ 359,000 $ 1,773,000
Cost of sales .................................. 124,000 722,000
------------ ------------
Gross profit ................................... 235,000 1,051,000
------------ ------------
Operating expenses
Selling, general and administrative expenses . 548,000 953,000
Non-cash compensation charges ................ 46,000
Depreciation and amortization ................ 26,000 25,000
Research & development ....................... 52,000
------------ ------------
620,000 1,030,000
------------ ------------
Income (loss) from operations .................. (385,000) 21,000
------------ ------------
Other income and expense
Interest income (expense) .................... 29,000 (12,000)
------------ ------------
29,000 (12,000)
------------ ------------
Net income (loss) .............................. $ (356,000) $ 9,000
Adjustments:
Preferred stock dividend ....................... -- (45,000)
------------ ------------
Net loss attributable to common shareholders ... $ (356,000) $ (36,000)
============ ============
Basic and diluted (loss)
per common share ............................ $ (0.03) $ (0.00)
Weighted average shares outstanding ........... --
basic and diluted loss per share .......... 13,718,265 14,346,669
============ ============
See accompanying notes to financial statements
<PAGE>
AMERICAN BIO MEDICA CORPORATION
STATEMENTS OF CASH FLOWS
(UNAUDITED)
FOR THE SIX MONTHS ENDED
OCTOBER 31,
--------------------------
1997 (NOTE C) 1998
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) ..................................... $(1,133,000) $ (268,000)
Adjustments to reconcile net loss
to net cash used in operating activities:
Amortization and depreciation ................ 51,000 43,000
Issuance of compensating stock/options ....... 668,000
Changes in:
Accounts receivable ......................... (479,000) (716,000)
Inventory ................................... (203,000) (787,000)
Prepaid expenses and other current assets ... (24,000) (360,000)
Other assets ................................ 33,000 (21,000)
Accounts payable and accrued expenses ....... (200,000) 589,000
----------- -----------
Net cash used in operating activities ...... (1,287,000) (1,520,000)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment ...... (72,000) (206,000)
Purchase of investments ........................ (24,000)
Loans to officer ............................... -- (19,000)
----------- -----------
Net cash provided by
(used in) investing activities ............. (96,000) (225,000)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of warrants and options . 983,000 103,000
----------- -----------
Net cash provided by financing activities .... 983,000 103,000
----------- -----------
NET DECREASE IN CASH AND
CASH EQUIVALENTS ............................. (400,000) (1,642,000)
Cash and cash equivalents - beginning of period .. 1,763,000 3,239,000
----------- -----------
CASH AND CASH EQUIVALENTS - END OF PERIOD ........ $ 1,363,000 $ 1,597,000
=========== ===========
See accompanying notes to financial statements
<PAGE>
Notes to Financial Statements
October 31, 1998
Note A - Basis of Reporting
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q. Accordingly, they do not
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, such statements include all adjustments (consisting only of normal
recurring items) which are considered necessary for a fair presentation of the
financial position of American Bio Medica Corporation (the "Company") at October
31, 1998, and the results of its operations, and cash flows for the six-month
period then ended. The results of operations for the six-month period ended
October 31, 1998 are not necessarily indicative of the operating results for the
full year. It is suggested that these financial statements be read in
conjunction with the financial statements and related disclosures for the year
ended April 30, 1998 included in the Company's Form 10-KSB.
Note B - Net Income Per Share of Common Stock
In 1997, the Financial Accounting Standards Board issued Statement No. 128,
"Earnings Per Share". Statement No. 128 replaced the calculation of primary and
fully diluted earnings per share with basic and diluted earnings per share.
Unlike primary earnings per share, basic earnings per share exclude any dilutive
effects of options, warrants, and convertible securities. Dilutive earnings per
share is very similar to the previously reported fully diluted earnings per
share. The Company adopted Statement No. 128 and has retroactively applied the
effects thereof for all periods presented. The impact on the per share amounts
previously reported was not significant.
When preferred stock is convertible to common stock at a conversion rate
that is the lower of a rate fixed at issuance or a fixed discount from the
common stock market price at the time of conversion, the discounted amount is an
assured incremental yield, the "beneficial conversion feature", to the preferred
shareholders and should be accounted for as an embedded dividend to preferred
shareholders. As such, the loss per common share was adjusted for this feature.
<PAGE>
Note C - Restatement of Prior Year Quarterly Statements of Operations
On April 30, 1998 the company recorded adjustments relating to book sale
revenues and certain non-cash employee and consulting compensation charges.
Based upon these and other minor adjustments, prior-year's quarterly information
has been revised as follows:
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JULY 31, 1997 OCTOBER 31, 1997
-------------------------- ----------------------------
AS AS
REPORTED ADJUSTED REPORTED ADJUSTED
----------- ------------ ------------ ------------
(in thousands, except per share amounts)
<S> <C> <C> <C> <C>
Revenues .................... $ 817 $ 666 $ 1,273 $ 1,025
Cost of Sales ............... $ 356 $ 369 $ 501 $ 494
Gross Profit ................ $ 461 $ 297 $ 772 $ 531
Selling, Gen & Admin ........ $ 390 $ 448 $ 790 $ 996
Noncash Compensation ........ $ 0 $ 622 $ 0 $ 668
Depreciation & Amortization . $ 24 $ 25 $ 49 $ 51
Research & Development ...... $ 0 $ 0 $ 0 $ 0
Total Operating Expense $ 414 $ 1,095 $ 839 $ 1,715
Income (loss) from Operations $ 47 $ (798) $ (67) $ (1,184)
Other Income ................ $ 75 $ 21 $ 104 $ 51
Net Income (loss)............ $ 122 $ (777) $ 37 $ (1,133)
Weighted average number of
common shares outstanding . 13,680,627 13,680,627 13,718,265 13,718,265
Net Income (Loss) per
Common Share ............. $ 0.01 $ (0.06) $ (0.00) $ (0.08)
</TABLE>
Note D - Litigation
In February 1994, Robert Friedenberg, as former owner of the two medical
technology companies, MDI and Gendex, acquired by the Company, in the name of
these corporations, filed for a declaratory judgement that a Share Exchange
Agreement had been rescinded. In order to make a claim for damages, the Company
filed a third-party claim against Dr. Friedenberg for breach of the Share
Exchange Agreement and fraud. In November 1995, after a trial, the court denied
Dr. Friedenberg's request for a declaration of rescission and allowed the
Company's third-party claim to proceed to trial. In September, 1996, Dr.
Friedenberg died.
The Company's third-party claim was decided by a jury on May 5, 1997. The
verdict determined that Dr. Friedenberg breached the Share Exchange Agreement,
when he failed to deliver drug screening know how technology to the Company. The
jury also found in favor of the Company on two of the three fraud claims
against. Friedenberg and awarded the Company approximately $321,000 in damages.
Friedenberg's estate, just prior to the jury trial, filed a supplemental claim
for
<PAGE>
the shares of the Company's stock which he would have received under the Share
Exchange Agreement. The trial judge took this supplemental claim under
advisement. The trial judge, on July 17, 1998, ruled that the estate of Dr.
Friedenberg is entitled to 5,907,154 common shares of the Company. The Company
has filed an appeal. Management of the Company in consultation with counsel is
of the opinion that the trial judge's award of the shares to Dr. Friedenberg's
estate will be reversed on appeal.
Pending the resolution of the Company's appeal, the trial judge has
ordered that the shares be issued in the name of Dr. Friedenberg's wife and
placed in escrow or that the Company post a bond. The Company has applied for a
stay of this order. If the trial judge's order is not stayed, the issuance of
such shares or the posting of the required bond could have a significant
negative effect on the market price of the shares. Pending the resolution of the
Company's appeal of the trial judge's award of the shares to Dr. Friedenberg's
estate, the Company's ability to raise capital through the future sale of equity
securities may be materially impaired. If the trial judge's award of the shares
is not reversed on appeal, the issuance of such shares would have a significant
negative effect on the market price of the shares.
In June 1995, the Company filed against Jacskon Morris, the lawyer
who was in charge of drafting and advising it on the Share Exchange
Agreement. Mr. Morris, who had been recommended to the Company by Dr.
Friedenberg, is alleged by the Company to have breached his fiduciary duty
to the Company by later advising Dr. Friedenberg, individually, on how to
rescind the Share Exchange Agreement. Mr. Morris is also charged with
negligence in drafting the Share Exchange Agreement. The Company's
lawsuit demands damages in the amount of $1,000,000. Mr. Morris has
counterclaimed as a party to the Share Exchange Agreement and seeks common
shares. No trial date has been set. The Company is vigorously contesting
the Morris Claim.
Item 2. Management's Discussion and Analysis or Plan of Operation
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
for the six months ended October 31, 1998 and 1997
The following discussion of the company's financial condition and results
of operations should be read in conjunction with the Financial Statements and
Notes thereto appearing elsewhere in this document.
Statements in this "Management's Discussion and Analysis of Financial
Condition and Results of Operations" and elsewhere in this document as well as
statements made in press releases and oral statements that may be made by the
Company or by officers, directors or employees of the Company acting on the
Company's behalf that are not statements of historical or current fact
constitute "forward looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve known and unknown risks, uncertainties and other unknown factors that
could cause the actual results of the Company to be materially different from
the historical results or from any future results expressed or implied by such
forward-looking statements. In addition to statements which explicitly describe
such risks and uncertainties, readers are urged to consider statements labeled
with the terms "believes", "belief", "expects", "intends", "anticipates" or
"plans" to be uncertain forward-looking. The forward looking statements
contained herein are also subject generally to other risks and uncertainties
that are described from time to time in the Company's reports and registration
statements filed with the Securities and Exchange Commission.
<PAGE>
Year 2000 Issues
The Company has completed its assessment of Year 2000 compliance with respect to
its products that are currently being sold to customers and has concluded that
all significant products are compliant. With respect to third parties, the
Company is in the process of identifying and contacting its significant
suppliers and will shortly begin to contact its major customers to determine the
extent to which the Company may be vulnerable to such third parties' failure to
address their own year 2000 issues. As a result, the Company's assessment will
be substantially dependent on information provided by third parties. The Company
expects to materially complete this assessment process by the end of fiscal
1999. Based upon the Company's current estimates, additional out-of-pocket costs
associated with its Year 2000 compliance are expected to be immaterial. Such
costs do not include internal management time, which is not expected to be
material to the Company's results of operations or financial condition.
Results of operations for the six months ended October 31, 1998 as compared
to the six months ended October 31, 1997 as amended.
- --------------------------------------------------------------------------------
During the six months ended October 31, 1998, the Company continued its
extensive program to market and distribute its primary product, the Rapid Drug
Test kit. As a result, revenues from the sale of the test kits were $2,732,000
for the six months ended October 31, 1998 as compared to $937,000 for the six
months ended October 31, 1997 (as adjusted, see Note C to Notes to Financial
Statements), representing an increase of $1,795,000 or 191.6% over the preceding
year. Cost of goods sold for the six months ended October 31, 1998 was
$1,170,000 or 42.9% of drug test revenues as compared to $440,000 or 47.0% of
drug test revenues for the six months ended October 31, 1997. To further reduce
this cost, the Company has undertaken to improve its manufacturing processes and
expects further savings throughout the year.
Revenues from book sales were $349,000 for the six months ended October
31, 1998 as compared to $88,000 for the six months ended October 31, 1997
representing an increase of $261,000 or 296.6%. It is anticipated that with
continuing strong sales in the drug test market, book sales as a percent of
overall revenue will continue to decline. Cost of goods sold for the six months
ended October 31, 1998 was $66,000 (19.0% of book sales) as compared to $54,000
(61.4% of book sales) for the six months ended October 31, 1997.
General and administrative costs for the six months ended October 31, 1998
were $1,984,000, an increase of 99.2% over expenses of $996,000 for the six
months ended October 31, 1997. These increased general and administrative costs
were undertaken to create the infrastructure necessary to meet the Company's
worldwide drug test marketing and production goals. As an outgrowth of
increasing drug test sales the Company expects general and administrative costs
to continue to increase but at a slower rate. As a percent of sales, this cost
decreased 32.8% during the current year and is expected to continue it's
decrease with anticipated sales growth.
Depreciation and amortization was $43,000 and $51,000 for the six months
ended October 31, 1998 and 1997 respectively.
Research and development expense amounted to $103,000 for the six months
ended October 31, 1998. This represents management's continued emphasis on the
development of both new products and improved methods to reduce the
costs of the drug testing delivery system.
Net (loss) from operations amounted to $(268,000) for the six months Ended
October 31, 1998 due to increases in selling, general and administrative
expenditures related to the expansion of the company's infrastructure.
Results of operations for the three months ended October 31, 1998 as compared to
the three months ended October 31, 1997 as amended.
- --------------------------------------------------------------------------------
Revenues from the sale of the test kits were $1,567,000 for the three
months
<PAGE>
ended October 31, 1998 as compared to $301,000 for the three months ended
October 31, 1997 (as adjusted, see Note C to Notes to Financial Statements),
representing an increase of $1,266,000 or 420.6% over the preceding year. Cost
of goods sold for the three months ended October 31, 1998 amounted to $683,000
or 43.6% of drug test revenues as compared to $94,000 or 31.2% of drug test
revenues for the three months ended October 31, 1997.
Revenues from book sales were $206,000 for the three months ended October
31, 1998 as compared to $58,000 for the three months ended October 31, 1997
representing an increase of $148,000 or 255.2%. Cost of goods sold for the three
months ended October 31, 1998 amounted to $39,000 (18.9% of book sales) as
compared to $30,000 (51.7% of book sales) for the three months ended October 31,
1997.
General and administrative costs for the three months ended October 31,
1998 Amounted to $953,000, an increase of 73.9% over expenses of $548,000 for
the three months ended October 31, 1997. As a percent of sales, this cost
decreased 98.8% during the current year and is expected to continue it's
decrease with anticipated sales growth.
Depreciation and amortization was $25,000 and $26,000 for the three months
ended October 31, 1998 and 1997 respectively.
Research and development expense amounted to $52,000 for the three months
ended October 31, 1998, continuing management's emphasis on the development of
both new products and improved methods of production.
Net income from operations amounted to $9,000 for the three months Ended
October 31, 1998 as compared to a net (loss) of $(356,000) for the three months
ended October 31, 1997.
Liquidity and capital resources as of the end of the six months ended
October 31, 1998.
- --------------------------------------------------------------------------------
The Company's cash and cash equivalents amounted to $1,597,000 for the six
months ended October 31, 1998 representing a decrease of $1,642,000 or 50.7%
over $3,239,000 for the year ended April 30, 1998. Working capital decreased
$467,000 or 10.4% over $4,480,000 recorded for the year ended April 30, 1998.
The decrease in working capital resulted from an increase in accounts
payable offset by increases in accounts receivable, inventories, and prepaid
expenses.
As a result of strong six month sales of drug test kits, accounts
receivable increased $716,000 or 100.6% to $1,428,000 for the six months ended
October 31, 1998 compared to $712,000 for the year ended April 30, 1998.
Due to increased sales and to obtain favorable prices on bulk purchases,
inventories rose 79.4% to $1,778,000 for the six months ended October 31, 1998
or $787,000 above $991,000 reported as of the six months ended October 31, 1997.
Prepaid expenses primarily for future trade shows and conferences rose
$360,000 to $384,000 for the six months ended October 31, 1998.
Accounts payable and accrued expenses increased $688,000 for the six
months ended October 31, 1998 due primarily to increased inventory requirements.
The Company's primary short-term needs are to increase its manufacturing
capabilities, increase inventory levels and continue to support its research and
development programs. The Company currently plans to expend approximately $2.0
million for the expansion and development of its manufacturing facilities in
addition to its marketing and general administrative programs.
The Company expects its capital requirements to increase over the next
several years as it expands its research and development efforts, new product
development, sales and administration infrastructure, manufacturing capabilities
and facilities. The Company's future liquidity and capital funding requirements
<PAGE>
will depend on numerous factors, including the extent to which the Company's
products under development are successfully developed and gain market
acceptance, the timing of regulatory actions regarding the Company's potential
products, the costs and timing of expansion of sales, marketing and
manufacturing activities, facilities expansion needs, procurement and
enforcement of patents important to the Company's business, results of clinical
investigations and competition.
The Company believes that its available cash and cash from operations will
be sufficient to satisfy its funding needs for at least the next 12 months.
Thereafter, if cash generated from operations is insufficient to satisfy the
Company's working capital and capital expenditure requirements, the Company may
be required to sell additional equity or debt securities or obtain additional
credit facilities. There can be no assurance that such financing, if required,
will be available on satisfactory terms, if at all.
<PAGE>
PART II
OTHER INFORMATION
Item 1. Legal Proceedings.
In February 1994, Robert Freidenberg, as owner of the two medical
technology companies, MDI and Gendex, acquired by the Company, in the name of
these corporations, filed suit to have a Share Exchange Agreement rescinded on
the grounds of breach of contract. In order to preserve a claim for damages, the
Company filed a third-party claim against Dr. Freidenberg, for breach of the
Share Exchange Agreement. In November 1995, after a trial, the court dismissed
Dr. Friedenberg's lawsuit and allowed the Company's third-party claim to proceed
to trial. In September, 1996, Dr. Friedenberg died. A pretrial hearing was held
in December 1996 which set a trial date of April 28, 1997.
That trial was decided by a jury on May 5, 1997. The verdict determined
that Dr. Friedenberg breached various contracts, including the Share Exchange
Agreement, when he failed to deliver technology to the Company. The jury also
found in favor of the Company on two of the three fraud claims against Dr.
Friedenberg and awarded the Company approximately $321,000 in damages. Dr.
Friedenberg's estate, just prior to the jury trial, filed a supplemental claim
for the shares of the Company's stock which he would have received under the
Share Exchange Agreement which the trial judge took under advisement. The trial
judge, on July 17, 1998 ruled that the estate of Dr. Friedenberg is entitled to
5,907,154 common shares of the Company. The Company has filed an appeal.
Management of the Company in consultation with counsel is of the opinion that
the trial judge's award of the shares to Dr. Friedenberg's estate will be
reversed on appeal.
In June 1995, the Company filed a lawsuit against Mr. Morris, Dr.
Friedenberg's counsel, for the breach of attorney-client relationship and his
fiduciary duty and negligence in representing the Company in matters relating to
Dr. Friedenberg and in the preparation of the Share Exchange Agreement. The
Company's lawsuit demands damages in the amount of $1,000,000. Mr. Morris has
counterclaimed for common shares. No trial date has been set. The Company is
vigorously contesting the Morris claim.
Item 2. Changes in Securities
None.
Item 3. Defaults upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security-Holders
None.
<PAGE>
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of 1934,
the registrant has caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AMERICAN BIO MEDICA CORPORATION
(Registrant)
By: /s/Stan Cipkowski
------------------
Stan Cipkowski,
President and Principal
Executive Officer
By: /s/John F. Murray
--------------------
John F. Murray,
Treasurer and Principal
Financial Officer
Dated: December 15, 1998
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FINANCIAL
STATEMENTS FOR THE SIX MONTH PERIOD ENDED OCTOBER 31, 1998 AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> APR-30-1999
<PERIOD-END> OCT-31-1998
<CASH> 1,597,000
<SECURITIES> 0
<RECEIVABLES> 1,488,000
<ALLOWANCES> 60,000
<INVENTORY> 1,778,000
<CURRENT-ASSETS> 5,187,000
<PP&E> 410,000
<DEPRECIATION> 90,000
<TOTAL-ASSETS> 5,781,000
<CURRENT-LIABILITIES> 1,043,000
<BONDS> 0
0
0
<COMMON> 144,000
<OTHER-SE> 4,463,000
<TOTAL-LIABILITY-AND-EQUITY> 5,781,000
<SALES> 3,081,000
<TOTAL-REVENUES> 3,081,000
<CGS> 1,236,000
<TOTAL-COSTS> 2,113,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (268,000)
<INCOME-TAX> 0
<INCOME-CONTINUING> (268,000)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (268,000)
<EPS-PRIMARY> (0.03)
<EPS-DILUTED> (0.03)
</TABLE>
