American Bio Medica Corporation (ABMC.PK) today announced financial
results for the three and nine months ended September 30, 2012.
Net sales for the third quarter of 2012 were $2,283,000, compared to
$2,365,000 for the third quarter of 2011, representing a decrease of
$82,000, or 3.5%. For the nine months ended September 30, 2012, net
sales were $7,041,000, compared to $6,898,000 for the nine months ended
September 30, 2011, representing an increase of $143,000, or 2.1%.
The Company reported an operating loss of $(229,000) in the third
quarter of 2012, compared to operating income of $26,000 in the third
quarter of 2011. Net loss for the third quarter of 2012 was $(264,000),
or $(0.01) per share, compared to a net loss of $(28,000), or $(0.00)
per share in the third quarter of 2011. Operating loss for the nine
months ended September 30, 2012 was $(427,000), compared to an operating
loss of $(173,000) in the nine months ended September 30, 2011. Net loss
for the nine months ended September 30, 2012 was $(546,000), or $(0.03)
per share, compared to a net loss of $(330,000), or $(0.02) per share in
the nine months ended September 30, 2011.
ABMC Chief Executive Officer Stan Cipkowski stated, “In the third
quarter, we continued to see improvement in national account (workplace)
and contract manufacturing sales, as well as improvement in sales to
international markets. However, government contract sales continued to
decline. We remain hopeful that our investment in sales and marketing
earlier this year will have a positive impact on future sales.”
Cipkowski continued, “Contributing to the loss in the third quarter was
increased general and administrative expense related to legal and
compliance costs, as well as increased share-based payment expense. The
increase in share-based payment expense stemmed primarily from the
issuance (and full expense recognition in the third quarter 2012) of
warrants issued in connection with the extension of our Series A
Debentures.”
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, including some of the
world’s most effective 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.
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AMERICAN BIO MEDICA CORPORATION
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Statements of Operations
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(unaudited)
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For the three
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For the three
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For the nine
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For the nine
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months ended
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months ended
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months ended
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months ended
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September 30, 2012
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September 30, 2011
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September 30, 2012
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September 30, 2011
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Net sales
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$
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2,283,000
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$
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2,365,000
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$
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7,041,000
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$
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6,898,000
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Cost of goods sold
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1,392,000
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1,399,000
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4,145,000
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4,019,000
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Gross profit
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891,000
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966,000
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2,896,000
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2,879,000
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Operating expenses:
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Research and development
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54,000
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61,000
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162,000
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170,000
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Selling and marketing
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453,000
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417,000
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1,503,000
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1,319,000
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General and administrative
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613,000
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462,000
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1,658,000
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1,563,000
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Total operating expenses
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1,120,000
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940,000
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3,323,000
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3,052,000
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Operating (loss) / income
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(229,000
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)
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26,000
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(427,000
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)
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(173,000
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Other expense
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(35,000
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)
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(49,000
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)
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(121,000
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)
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(151,000
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Net loss before tax
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(264,000
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)
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(23,000
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)
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(548,000
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)
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(324,000
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Income tax (expense) / benefit
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0
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(5,000
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)
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2,000
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(6,000
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)
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Net loss
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$
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(264,000
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)
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$
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(28,000
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)
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$
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(546,000
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)
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$
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(330,000
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)
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Basic & diluted loss per common share
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$
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(0.01
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)
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$
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(0.00
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)
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$
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(0.03
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)
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$
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(0.02
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)
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Weighted average shares outstanding – basic and diluted
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21,833,003
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21,744,768
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21,833,003
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21,744,768
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American Bio Medica Corporation
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Balance Sheets
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September 30,
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December 31,
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2012
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2011
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(unaudited)
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ASSETS
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Current Assets
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Cash and cash equivalents
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$
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0
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$
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93,000
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Accounts receivable, net of allowance for doubtful accounts of
$50,000 at September 30, 2012 and $66,000 at December 31, 2011
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1,242,000
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883,000
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Inventory, net of allowance for slow moving and obsolete inventory
of $469,000 at September 30, 2012 and $401,000 at December 31, 2011
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3,079,000
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3,239,000
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Prepaid expenses and other current assets
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83,000
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61,000
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Total current assets
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4,404,000
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4,276,000
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Property, plant and equipment, net
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1,225,000
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1,304,000
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Debt issuance costs, net
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42,000
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26,000
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Patents, net
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23,000
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0
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Other assets
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26,000
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30,000
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Total assets
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$
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5,720,000
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$
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5,636,000
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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Current liabilities
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Checks written in excess of cash balance
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$
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14,000
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$
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0
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Accounts payable
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1,027,000
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631,000
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Accrued expenses and other current liabilities
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195,000
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217,000
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Wages payable
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290,000
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264,000
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Line of credit
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565,000
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397,000
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Current portion of long-term debt and unearned grant
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1,445,000
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882,000
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Total current liabilities
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3,536,000
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2,391,000
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Other liabilities
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144,000
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143,000
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Long-term debt
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0
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608,000
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Related party note
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124,000
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124,000
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Total liabilities
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3,804,000
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3,266,000
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COMMITMENTS AND CONTINGENCIES
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Stockholders’ Equity:
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Common stock
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217,000
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217,000
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Additional paid-in capital
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19,479,000
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19,386,000
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Accumulated deficit
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(17,780,000
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)
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(17,233,000
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)
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Total stockholders’ equity
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1,916,000
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2,370,000
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Total liabilities and stockholders’ equity
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$
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5,720,000
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$
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5,636,000
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