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 January 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
-----------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
New York 22-3378935
-------------------------------------------------------------------
(State or other jurisdiction (I.R.S. Employer
incorporation or organization) Identification No.)
102 Simons Road, Ancramdale, New York 12503
-------------------------------------------
(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:
13,921,846 Common Shares as of January 31, 1998 60 Convertible "B"
Preferred Shares as of January 31, 1998 45.4 Convertible "C" Preferred
Shares as of January 31, 1998
Transitional Small Business Disclosure Format Yes [ ] No [X]
<PAGE>
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements
The condensed financial statements for the period ended January 31, 1998
included herein have been prepared by American Bio Medica Corporation, (the
"Company") without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission (the "Commission"). In the opinion of
management, the statements include all adjustments necessary to present fairly
the financial position of the Company as of January 31, 1998, and the results of
operations and cash flows for the nine month periods ended January 31, 1997 and
1998.
2
<PAGE>
AMERICAN BIO MEDICA CORPORATION
BALANCE SHEET
April 30, January 31,
1997 1998
(Unaudited)
------------- -------------
Assets
Current assets
Cash and cash equivalents $ 1,762,506 $ 303,939
Marketable securities,
available for sale 1,053,000 1,899,609
Accounts receivable 337,759 1,132,918
Loan receivable 102,250 142,000
Inventory 668,723 936,858
Prepaid expenses 4,425 13,819
------------- -------------
Current assets 3,928,663 4,429,143
Fixed assets-net 110,834 137,409
Other assets
License rights 38,470
Patent costs 28,783 39,077
------------- -------------
Total other asset 67,253 39,077
------------- -------------
Total assets $ 4,106,750 $ 4,605,629
============= =============
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and
accrued expenses $ 380,155 $ 142,449
------------- -------------
Total current liabilities 380,155 142,449
Capital stock
Common stock
-authorized 30,000,000
common shares, par value
$.01 per share, at April 30,
1997 and January 31, 1998
the common shares outstanding
were 13,379,507 and 13,921,846
respectively. 133,795 139,218
Preferred stock
-authorized 5,000,000
preferred shares, par value
$.01 per share, at April 30,
1997 and January 31, 1998 the
number of preferred shares
outstanding was 90 and 105.5
respectively 1 2
Additional paid in capital 6,499,791 7,858,882
Retained earnings (2,906,992) (3,534,922)
------------ -------------
Total stockholders' equity 3,726,595 4,463,180
------------ -------------
Total liabilities
and stockholders' equity $ 4,106,750 $ 4,605,629
============ =============
See accompanying notes to financial statements.
3
<PAGE>
AMERICAN BIO MEDICA CORPORATION
STATEMENT OF OPERATIONS
For the nine For the nine
months ended months ended
January 31, January 31,
1997 1998
(Unaudited) (Unaudited)
------------ ------------
Revenue $ 430,501 $ 1,773,948
Less cost of
goods sold 150,421 675,361
------------ ------------
Gross profit 280,080 1,098,587
Operations:
General and
administrative 583,569 1,676,196
Depreciation and
amortization 72,490 73,346
Research and
development 74,978 96,766
------------ ------------
Total expenses 731,037 1,846,308
Income (loss) from
operations (450,957) (747,721)
Other income and
expenses
Retirement of
debt 126,500
Interest income 3,595 119,791
------------ ------------
Total other income
and expenses 130,095 119,791
------------ ------------
Net Profit (Loss)
from operations $ (320,862) $ (627,930)
============ ============
Net income (loss)
per share $(.02) ($.05)
============ ============
Weighted number of
shares outstanding 13,718,265 13,737,781
============ ============
See accompanying notes to financial statements.
4
<PAGE>
AMERICAN BIO MEDICA CORPORATION
STATEMENT OF OPERATIONS
For the three For the three
months ended months ended
January 31, January 31,
1997 1998
(Unaudited) (Unaudited)
------------ ------------
Revenue $ 381,914 $ 500,224
Less cost of
goods sold 124,643 174,023
------------ ------------
Gross profit 257,271 326,201
Operations:
General and
administrative 247,456 934,720
Depreciation and
amortization 49,490 24,673
Research and
development 8,228 47,614
------------ ------------
Total expenses 305,174 1,007,007
Income (loss) from
operations ( 47,903) (680,806)
Other income and
expenses
Interest income 2,259 15,892
------------ ------------
Total other income
and expenses 2,259 15,892
------------ ------------
Net Profit (Loss)
from operations $ ( 45,644) $ (664,914)
============ ============
Net income (loss)
per share $(.00) $(.05)
============ ============
Weighted number of
shares outstanding 13,718,265 13,737,781
============ ============
5
<PAGE>
AMERICAN BIO MEDICA CORPORATION
STATEMENT OF CASH FLOWS
For the nine For the nine
months ended months ended
January 31, January 31,
1997 1998
(Unaudited) (Unaudited)
------------ ------------
CASH FLOWS FROM
OPERATING ACTIVITIES
Net profit (loss) $ (320,862) $ (627,930)
Retirement of debt (126,500)
Amortization and
depreciation 72,490 73,346
Adjustments to
reconcile net
income to net
Accounts receivable (301,342) (795,159)
Prepaid expenses (4,425) ( 9,395)
Inventory (247,726) (268,135)
Loan receivable (100,000) ( 39,750)
Accounts payable
and accrued expenses 149,289 (237,705)
------------ ------------
TOTAL CASH FLOWS
FROM OPERATIONS (879,076) (1,904,728)
CASH FLOW FROM
FINANCING ACTIVITIES
Convertible debenture (132,000)
Sale of common shares 3,983,436 1,364,515
------------ ------------
TOTAL CASH FLOWS FROM
FINANCING ACTIVITIES 3,851,436 1,364,515
CASH FLOWS FROM
INVESTING ACTIVITIES
Marketable securities (1,021,867) (846,609)
Patent costs ( 2,725) ( 22,652)
Capital assets (82,734) ( 49,093)
------------ ------------
TOTAL CASH FLOWS
FROM INVESTING
ACTIVITIES (1,107,326) (918,354)
NET INCREASE
(DECREASE) IN CASH 1,865,034 (1,458,567)
CASH BALANCE
BEGINNING OF PERIOD 437,532 1,762,506
------------ ------------
CASH BALANCE END
OF PERIOD $ 2,302,566 $ 303,939
============ =============
See accompanying notes to financial statements.
6
<PAGE>
AMERICAN BIO MEDICA CORPORATION
STATEMENT OF STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
Additional
Common Common Preferred Preferred Paid-in
Retained
Stock Stock Stock Stock capital
Earnings Total
---------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
<C> <C>
04-30-1996 11,977,357 $ 119,774 $ 2,636,127
$(2,401,671) $ 354,230
06-04-1996 11,333 113 8,387
8,500
06-04-1996 25,000 250 24,750
25,000
07-31-1996(1) 176,000 1,760 130,240
132,000
07-31-1996(1) 13,333 133 9,867
10,000
07-31-1996(2) 100,000 1,000 49,000
50,000
07-31-1996(3) 32,000 320 31,680
32,000
07-31-1996(4) 100,000 1,000 99,000
100,000
09-09-1996(3) 18,000 180 17,820
18,000
09-23-1996(5) $ 1 1,409,999
1,410,000
01-31-1997(6) 697,445 6,975 2,085,211
2,092,186
04-30-1997(7) 229,039 2,290
(2,290) 0
04-30-1997 Net loss
(505,321) (505,321)
---------- --------- ------- -
- ----------- --------- -----------
04-30-1997 13,379,507 $ 133,795 $ 1 $6,499,791
$(2,906,992) $3,726,595
Unaudited
07-31-1997(7) 301,120 3,011 (3,011)
10-31-1997 (1) (1) 1
0
10-31-1997(6) 10,000 100 29,900
30,000
10-31-1997(7) 102,914 1,029
(1,029) 0
10-31-1997(8) 105.5 2 949,598
949,600
01-31-1998(6) 128,305 1,283 383,632
384,915
01-31-1997 Net loss
(627,930) (627,930)
---------- --------- ------ ------- -----------
- ------------ -----------
01-31-1998 13,921,846 $ 139,218 105.5 $ 2 $ 7,858,882
$(3,534,922) $4,463,180
========== ========= ======= ======= ==========
============ ===========
</TABLE>
7
<PAGE>
AMERICAN BIO MEDICA CORPORATION
STATEMENT OF STOCKHOLDERS' EQUITY
(1) Common Shares issued for conversion of debt
(2) Common Shares issued pursuant to Rule 504 at $.50 per share
(3) Common Shares issued upon exercise of "B" Warrants
(4) Common Shares issued upon exercise of "A" Warrants
(5) Sale of Preferred Shares for $1,500,000 less commissions of $90,000
(6) Common Shares issued upon exercise of options
(7) Conversion of Preferred Shares into Common Shares
(8) Sale of 60 Convertible B Preferred Shares and 45.5 Convertible C Preferred
Shares
8
<PAGE>
AMERICAN BIO MEDICA CORPORATION
NOTES TO FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED JANUARY 31, 1998
1. BASIS OF PRESENTATION
The accompanying unaudited financial statements of American Bio Medica
Corporation, (the "Company"), reflect all adjustments which are, in the opinion
of management, necessary to a fair statement of the results of the interim
periods presented. All such adjustments are of a normal recurring nature. The
financial statements should be read in conjunction with the notes to financial
statements contained in the Company's Annual Report on Form 10-KSB for the year
ended April 30, 1997.
2. INVENTORIES.
Inventory has been recorded at the lower of cost or market under the
first-in-first-out method. Inventory components were as follows:
April 30, 1997 January 31, 1998
-------------- ----------------
Books held for resale $ 43,528 $ 13,517
Workplace drug screening tests:
Raw materials 292,456 365,682
Work in process 183,500 205,115
Finished Goods 149,239 352,544
---------- ----------
Total workplace drug screening
tests: $ 625,195 $ 923,341
---------- ----------
Total inventory $ 668,723 $ 936,858
========== ==========
3. NET INCOME PER SHARE
Primary earnings per share are based on the weighted average number of
common and dilutive common equivalent shares outstanding during each quarter.
The weighted average shares for computing primary earnings per share were
13,718,265 and 13,737,781 for the quarters ended January 31, 1997 and 1998,
respectively
4. ACCOUNTING FOR INCOME TAXES
The Company follows Statement of Financial Accounting Standards ("SFAS")
No. 109, "Accounting for Income Taxes," which requires an asset and liability
approach of accounting for income taxes. Deferred tax assets and liabilities are
computed annually for differences between financial statement basis and tax
basis of assets, liabilities and available general business tax credit
carry-forwards. A valuation allowance is established when necessary to reduce
deferred tax assets to the amount expected to be realized.
9
<PAGE>
5. MARKETABLE SECURITIES
The Company adopted Financial Accounting Standards Board ("FASB") Statement
No. 115, "Accounting for Certain Investments in Debt and Equity Securities" (the
"Statement") which requires that investments in equity securities that have
readily determinable fair values and investments in debt securities be
classified in three categories: held-to-maturity, trading and available-
for-sale. Based on the nature of the assets held by the Company and management's
investment strategy, the Company's investments have been classified as
available-for-sale. Management determines the appropriate classification of debt
securities at the time of purchase and reevaluates such designation as of each
balance sheet date.
Securities classified as available-for-sale are carried at estimated fair
value, as determined by quoted market prices, with unrealized gains and losses,
net of tax, reported in a separate component of stockholders' equity. At January
31, 1998, the Company had no investments that were classified as trading or
held-to-maturity as defined by the Statement.
The following is a summary of cash, cash equivalents and available-for-sale
securities by balance sheet classification at April 30, 1997:
Estimated
Gross Gross Fair
Unrealized Unrealized Market
Cost Gains Losses Value
--------- ------------- ----------- -----------
Cash $ 99,039 $-0- $-0- $ 99,039
Certificates of deposit
90 days and less 1,663,467 -0- -0- 1,663,467
----------- ------------- ----------- -----------
Total cash and cash
equivalents $ 1,762,506 $-0- $-0- $ 1,762,506
=========== ============= =========== ===========
Marketable Securities
Due in one year or
less Certificates of
Deposit $ 1,053,000 $-0- $-0- $ 1,053,000
=========== ============= =========== ===========
10
<PAGE>
The following is a summary of cash, cash equivalents and available-for-sale
securities by balance sheet classification at January 31, 1998:
Estimated
Gross Gross Fair
Unrealized Unrealized Market
Cost Gains Losses Value
--------- ------------- ----------- -----------
Cash $ 303,939 $-0- $-0- $ 303,939
Certificates of deposit
90 days and less -0- -0- -0- -0-
----------- -------------- ----------- -----------
Total cash and cash
equivalents $ 303,939 $-0- $-0- $ 303,939
=========== =============== =========== ===========
Marketable Securities
Due in one year or
less Certificates of
Deposit $ 1,899,609 $-0- $-0- $ 1,899,609
=========== =============== =========== ===========
6. Issuance of Capital Stock
a. Issuance of Common Shares
The Company sold 138,305 Common Shares through the exercise of 138,305
options for an aggregate consideration of $414,915 or $3.00 per share.
b. Series B Convertible Preferred Shares
In September, 1997, the Company sold 60 8% Series B Convertible Preferred
Shares, ("B Preferred Shares") at $10,000 each for an aggregate of $600,000 less
an 8% commission of $48,000 for net proceeds of $552,000. Each B Preferred Share
(plus accumulated but unpaid dividends) is convertible into common shares
calculated by dividing $10,000 by the lesser of $3.50 or 75% of the average
closing price of the Common Shares for the 20 trading days preceding conversion.
Neither the Preferred Shares nor the Common Shares into which they may be
converted may be sold or transferred in public markets without an effective
registration under the Securities Act of 1933.
During the period the B Preferred Shares are outstanding, no dividend shall
be paid or set apart for payment on the Common Shares or any other class of
shares ranking junior to the B Preferred Shares in either payment of dividends
or liquidation unless full dividends on all outstanding B Preferred Shares have
been paid in full for all past dividend periods and the dividends for the
current period have been paid or declared and sufficient funds set apart.
The Company has agreed to register the Common Shares underlying the B
Preferred Shares.
11
<PAGE>
c. Series C Convertible Preferred Shares
During the month of September, 1997 the Company sold 45.5 8% Series C
Convertible Preferred Shares ("C Preferred Shares") for an aggregate of $455,000
less a 10% commission of $45,500 for net proceeds of $409,500. Each C Preferred
Share (plus accumulated dividends) is convertible into Common Shares calculated
by dividing $10,000 by the lesser of $3.50 or 75% of the average closing price
of the Common Shares for the 20 trading days preceding conversion. Neither the C
Preferred Shares nor the Common Shares into which they may be converted may be
sold or transferred in public markets without an effective registration under
the Securities Act of 1933.
The Company has agreed to register the Common Shares underlying the C
Preferred Shares.
7. Subsequent Events
The registration statement relating to the Common Shares underlying the B
and C Preferred Shares has become effective.
12
<PAGE>
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 nine months ended January 31, 1997 and 1998
-----------------------------------------------------
The Private Securities Litigation Reform Act of 1995 provides a safe harbor
for forward-looking statements. In order to comply with the terms of the safe
harbor, the Company notes that except for the description of historical facts
contained herein, this Form 10-QSB contains certain forward looking statements
that involve risks and uncertainties as detailed herein and from time to time in
the Company's filings with the Securities and Exchange Commission and elsewhere.
Such statements are based on management's current expectations and are subject
to a number of factors and uncertainties which could cause actual results to
differ materially from those described in the forward-looking statements. These
factors include, among others: (a) the Company's fluctuations in sales and
operating results, risks associated with international operations and
regulatory, competitive and contractual risks and product development; (b) the
ability to achieve strategic initiatives, including but not limited to the
ability to achieve sales growth across the business segments through a
combination of increased pricing, enhanced sales force, new products, and
improved customer service; and acquisitions.
Results of operations for the nine months ended January 31, 1998 as
compared to the nine months ended January 31, 1997.
- --------------------------------------------------------------------------------
Revenues from the book segment of the business were $410,254 for the nine
months ended January 31, 1998 as compared to $237,538 for the nine months ended
January 31, 1997, representing an increase of $172,716 or 72.7%. This increase
in book sales is directly attributable to the Company's reorganization of its
telemarketing activities and a bulk inventory purchase. Costs of goods sold for
the nine months ended January 31, 1998, were $102,642 as compared to $87,820 for
the nine months ended January 31, 1997 representing a cost of goods sold
percentage of 25.0% of sales for the nine months ended January 31, 1998 as
compared to 37.0% of sales for the nine months ended January 31, 1997.
13
<PAGE>
Revenues from the sales of drug testing kits were $1,363,916 for the nine
months ended January 31, 1998 as compared to $ 192,963 for the nine months ended
January 31, 1997, representing an increase of $1,170,953 or 707%. This increase
in sales of drug testing kits is directly attributable to the implementation and
positive response to the Company's marketing program. Cost of goods sold for the
nine months ended January 31, 1998 was $572,719 or 42.0% of sales as compared to
a cost of goods sold of $62,601 or 32.4% of sales. The increase in the
percentage of cost of goods sold is attributable to additional overhead.
General and administrative costs for the nine months ended January 31, 1998
were $1,676,176 or 99.9% of sales as compared to $583,569 or 135% of sales for
the nine months ended January 31, 1997, representing an increase of $1,092,627.
These increased costs are the result of hiring additional employees in sales,
marketing, accounting and executive positions. For the nine months ended January
31, 1998, personnel costs were $491,512, legal and professional expenses,
$143,712, office expense, $241,297, marketing expense, $502,255, product
development, $75,606, rent, $21,437 and bad debt expense of $200,377. Research
and development expense was $96,766 for the nine months ended January 31, 1998
compared to $74,978 during the nine months ended January 31, 1997. This increase
in research and development is the result of the development of three additional
drug tests during the quarter.
Results of operations for the three months ended January 31, 1998 as
compared to the three months ended January 31, 1997.
- --------------------------------------------------------------------------------
Revenues from the book segment of the business were $144,906 for the three
months ended January 31, 1998 as compared to $220,415 for the three months ended
January 31, 1997, representing an decrease of $75,509 or 34.3%. This decrease in
book sales is directly attributable to the Company's delayed delivery of a bulk
inventory purchase. Costs of goods sold for the three months ended January 31,
1998, were $36,171 as compared to $82,255 for the three months ended January 31,
1997 representing a cost of goods sold percentage of 25.0% of sales for the
three months ended January 31, 1998 as compared to 37.3% of sales for the three
months ended January 31, 1997.
Revenues from the sales of drug testing kits were $355,540 for the three
months ended January 31, 1998 as compared to $161,498 for the three months ended
January 31, 1997, representing an increase of $194,042 or 120.1%. This increase
in sales of drug testing kits is directly attributable to the implementation and
positive response to the Company's marketing program. Cost of goods sold for the
three months ended January 31, 1998 was $137,852 or 38.8% of sales as compared
to a cost of goods sold of $40,288 or 24.9% of sales. The increase in the
percentage of cost of goods sold is attributable to additional overhead.
14
<PAGE>
General and administrative costs for the three months ended January 31,
1998 were $934,720 or 186.8% of sales as compared to $247,456 or 64.8% of sales
for the three months ended January 31, 1997, representing an increase of
$734,878. These increased costs are the result of hiring additional employees in
sales, marketing, accounting and executive positions. For the three months ended
January 31, 1998, personnel costs were $138,298, legal and professional
expenses, $24,248, office expense, $143,140, marketing expense, $368,863,
product development, $48,536, rent, $11,258 and bad debt expense of $200,377.
Research and development expense was $47,614 for the three months ended January
31, 1998 compared to $8,228 during the three months ended January 31, 1997. This
increase in research and development is the result of the development of three
additional drug tests during the quarter.
Liquidity and capital resources as of the end of the nine months ended
January 31, 1998.
- --------------------------------------------------------------------------------
The Company's cash balance was $303,939 and working capital was $4,286,694
as at January 31, 1998. The Company completed a series of private placements
generating additional cash aggregating $1,055,000 before payment of $ 93,500 in
commissions and issuing 138,305 Common Shares through the exercise of options
for an aggregate consideration of $414,915. Cash generated from financing
activities was utilized for the purchase of machinery and equipment for $49,093,
additional patent costs of $22,652 and an increase in the investment in
marketable securities of $846,609 and an increase in accounts receivable of
$795,159.
The Company's primary short-term needs for capital, which are subject to
change, are for expansion of its manufacturing capacity, an increase in
inventory levels to fill larger anticipated orders and an increase in associated
accounts receivables. As of January 31, 1998, two customers account for 44.2% of
the Company's accounts receivable and no one customer accounted for more than
10% of drug test kit sales during the quarter.
Management believes that the present cash balance will pay the immediate
ongoing cost of the biomedical business but the Company may seek additional
funding sources for continued research and development into new products. The
Company is in full scale commercial production of its drug testing kits.
Income tax: As of January 31, 1998, the Company had a tax loss
carry-forward of $3,534,922. The Company's ability to utilize its tax credit
carry-forward in future years will be subject to an annual limitation pursuant
to the "Change in Ownership Rules" under Section 382 of the Internal Revenue
Code of 1986, as amended. However, any annual limitation is not expected to have
a material adverse effect on the Company's ability to utilize its tax credit
carry-forwards.
The Company currently plans to expend approximately $2.0 million for the
expansion and development of its manufacturing, marketing and general
administrative capabilities in connection with the fulfillment of its marketing
program and the anticipated launch of the Company's new products currently under
development. Additionally, the Company will utilize cash generated from
operating activities to meet its capital requirements.
15
<PAGE>
The Company expects its capital requirements to increase over the next
several years as it commences new research and development efforts, undertakes
new product development, increases sales and administration infrastructure and
embarks on increasing development efforts related to in-house manufacturing
capabilities and facilities. The Company's future liquidity and capital funding
requirements 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 24 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.
16
<PAGE>
PART II
OTHER INFORMATION
Item 1. Legal Proceedings.
No legal proceedings were brought, are pending or are threatened during the
quarter.
The Company, however, is awaiting a judicial determination of the
entitlement to common shares by the estate of Robert Friedenberg, a former
stockholder of two companies the purchase of which the Company rescinded. A jury
has determined in favor of the Company on two of three fraud claims against the
estate and has awarded the Company $300,000 in damages. The judge is bound by
the jury verdict.
In June, 1995, the Company filed a lawsuit against Jackson Morris, Esq. for
breach of the attorney-client relationship and of his fiduciary duty to the
Company for subsequently providing legal services to Dr. Friedenberg in his
dispute with the Company. The Company's lawsuit demands damages in the amount of
$1,000,000. Mr. Morris has counterclaimed for common shares. The court has set a
trial date of September 14, 1998.
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.
17
<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: March 9, 1998
18
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
financial statements for the six month period ended January 31, 1998 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> JAN-31-1998
<CASH> 303,939
<SECURITIES> 1,899,609
<RECEIVABLES> 1,132,918
<ALLOWANCES> 0
<INVENTORY> 936,858
<CURRENT-ASSETS> 4,429,143
<PP&E> 180,783
<DEPRECIATION> (43,374)
<TOTAL-ASSETS> 4,605,629
<CURRENT-LIABILITIES> 142,449
<BONDS> 0
0
2
<COMMON> 139,218
<OTHER-SE> 4,605,243
<TOTAL-LIABILITY-AND-EQUITY> 4,323,962
<SALES> 1,773,948
<TOTAL-REVENUES> 1,773,948
<CGS> 675,361
<TOTAL-COSTS> 1,098,587
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (747,721)
<INCOME-TAX> 0
<INCOME-CONTINUING> (747,721)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (627,930)
<EPS-PRIMARY> (0.05)
<EPS-DILUTED> (0.05)
</TABLE>
