ABMC American Bio Medica Dashboard

Risks

• The drug testing market is highly competitive.
• Possible inability to hire and retain qualified personnel.
• Any adverse changes in our regulatory framework could negatively impact our business, and costs to obtain regulatory clearance are material.
• We rely on intellectual property rights and contractual non-disclosure obligations to protect our proprietary information (including customer information). These rights and obligations may not adequately protect our proprietary information, and an inability to protect our proprietary information can harm our business.
• One of our customers accounted for more than 10% of our total net sales in Fiscal 2019.
• We depend on key personnel to manage our business effectively.
• We rely on third parties for raw materials used in our drug test products and in our bulk test strip contract manufacturing processes.
• We have a significant amount of raw material and “work in process” inventory on hand that may not be used in the year ended December 31, 2020 if the expected configuration of sales orders is not received at projected levels.
• Inability to meet our operating plans could have a material adverse effect on our future performance.
• We incur costs as a result of operating as a public company, and our management will be required to devote substantial time to compliance initiatives.
• Inability to comply with our debt obligations could result in our creditors declaring all amounts owed to them due and payable with immediate effect, or result in the collection of collateral by the creditor; both of which would have an adverse material impact on our business and our ability to continue operations.
• We have a history of incurring net losses and as of December 31, 2019, we have a negative stockholders’ equity.
• We may need additional funding for our existing and future operations.
• Potential issuance and exercise of new options and warrants and, exercise of outstanding options could adversely affect the value of our securities.
• Substantial resale of restricted securities may depress the market price of our securities.
• Our securities are currently trading on the OTC Markets Group (under their OTC Pink® Open Market), and are subject to SEC “penny stock,” rules, which could make it more difficult for a broker-dealer to trade our common shares, for an investor to acquire or dispose of our common shares in the secondary market and for us to retain or attract market makers.