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Q1 2023 Financial Results
American Bio Medica Corporation (ABMC), a leading diagnostic-technology firm, has reported its financial results for the first quarter ended March 31, 2023. The company’s unaudited interim condensed financial statements reflected a net income of $1,881,000 during the first quarter of 2023 compared to a net loss of $(379,000) during the first quarter of 2022.
The company’s net sales during Q1 2023 amounted to $164,000, a decrease compared to $351,000 in Q1 2022. Operating expenses, including research and development, selling and marketing, and general and administrative costs, totaled $286,000 in Q1 2023 compared to $359,000 in Q1 2022. The reduced operating expenses resulted in a gross profit of $74,000 in Q1 2023 compared to a gross profit of $28,000 in Q1 2022.
ABMC’s cash and cash equivalents at the end of Q1 2023 amounted to $68,000, while its accounts receivable, net of allowance for doubtful accounts, amounted to $89,000. The total current assets of the company stood at $659,000 at the end of the first quarter.
Asset Sale to Healgen and Repayment of Cherokee Credit Facilities
During the first quarter of 2023, ABMC sold substantially all of its assets to Healgen Scientific, LLC (Healgen) on February 28, 2023. The net proceeds from the sale amounted to $247,000, providing the company with additional liquidity and allowing it to repay credit facilities with Cherokee Financial, LLC (Cherokee).
As of the date of the report, ABMC’s current cash balances and expected receivables may not be sufficient to fund the company through May 2024. However, the company has taken steps to improve its financial position, including the asset sale to Healgen, which has allowed it to repay Cherokee credit facilities in full.
Investment in Research and Development
ABMC has continued to invest in research and development activities, with expenses totaling $28,000 during Q1 2023 compared to $22,000 in Q1 2022. The company has also made efforts to reduce selling, marketing, and general administrative expenses, which amounted to $258,000 in Q1 2023 compared to $337,000 in Q1 2022.
Conclusion
In conclusion, American Bio Medica Corporation’s Q1 2023 financial results demonstrate the company’s commitment to streamlining its operations and prioritizing research and development. Although the company’s current cash balances and receivables may not provide sufficient funds through May 2024, the sale of assets to Healgen and the repayment of Cherokee credit facilities have strengthened its financial position. As ABMC continues to adapt and evolve, investors and stakeholders can expect the company to remain focused on driving growth through innovation and effective cost management.