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 July 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.)


                   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:

     14,406,495 Common Shares as of August 31, 1998
     2,250 Convertible Series "D" Preferred Shares as of August 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 July 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 July 31, 1998 and the results of
operations  and cash flows for the three month  periods  ended July 31, 1997 and
1998.


                                         2
 <PAGE>
       
                          American Bio Medica Corporation
                                   Balance Sheet

                                                   April 30           July 31,
                                                     1998               1998
                                                                     (Unaudited)
                                                ---------------   --------------

                                     Assets

Current Assets
  Cash and cash equivalents                     $   3,239,000     $   2,089,000
  Accounts receivable - net of allowance              712,000         1,009,000
  Inventory                                           991,000         1,167,000
  Prepaid expenses                                     24,000           112,000

                                                --------------    --------------
Total Current assets                                4,966,000         4,377,000

Property, plant and equipment, net                    147,000           238,000
Due from officer                                      235,000           248,000
Other assets                                            8,000            20,000
                                                --------------    --------------

Total Assets                                    $   5,356,000     $   4,883,000
                                                ==============    ==============

                      Liabilities and Stockholders'Equity

Current Liabilities
  Accounts payable                              $     322,000     $     142,000
  Accrued expenses                                    164,000           189,000
                                                --------------    --------------

 Total current liabilities                            486,000           331,000
                                                --------------    --------------


Stockholders' equity:
 Preferred stock; par value $.01 per share;
    5,000,000 shares authorized;
    2,500 and 2,250 shares Series D,
    8% cumulative, convertible issued and
    outstanding (face values $2,500,000
    and $2,250,000) at April 30, 1998
    and July 31, 1998 respectively.                         0                 0
 Common stock; par value $.01 per share;
    30,000,000 shares authorized;
    14,282,989 and 14,381,495 shares issued
    and outstanding at April 30, 1998
    and July 31, 1998 respectively.                   143,000           144,000

  Additional paid-in capital                       12,102,000        12,113,000
Subscriptions receivable                               (9,000)           (9,000)
Unearned compensation                                 (24,000)          (24,000)
  Accumulated deficit                              (7,342,000)       (7,672,000)
                                                --------------    --------------

  Total stockholders'equity                        4,870,000         4,552,000
                                                --------------    --------------

                                                $   5,356,000     $   4,883,000
                                                ==============    ==============




                 See accompanying notes to financial statements

 <PAGE>

                                         3


                          American Bio Medica Corporation
                             Statements of Operations
                                    (Unaudited)

                                             For the Three Months Ended July 31,
                                             -----------------------------------
                                                   1997                 1998
                                             --------------       --------------

Revenues                                     $     817,000        $   1,308,000
 
Cost of sales                                      357,000              514,000
                                             --------------       --------------

Gross profit                                       460,000              794,000
                                             --------------       --------------

Operating expenses
  Selling, general and
   administrative expenses                         390,000            1,031,000
  Depreciation and amortization                     24,000               18,000
  Research and development                                               50,000
                                             --------------       --------------

                                                   414,000            1,099,000
                                             --------------       --------------

Income (loss) from operations                       46,000             (305,000)
                                             --------------       --------------

Other income and expense
  Interest income                                   76,000               29,000
                                             --------------       --------------

                                                    76,000               29,000
                                             --------------       --------------

Net income (loss)                            $     122,000        $    (276,000)

Adjustments
Preferred stock
Bneficial conversion feature                                          (123,000)
Preferred stock dividend                                                (54,000)
                                                                  --------------
Net loss attributable to
  common shareholders                        $     122,000             (453,000)
                                             ==============       ==============

Basic and diluted net income
  (loss) per common share                             0.01                (0.03)

 Weighted average shares outstanding  -
     basic income per share                     13,680,627           14,291,462

Effect of potential common shares                  197,657               -
                                             --------------       --------------

 Weighted average shares outstanding  -
     diluted income per share                   13,878,284           14,291,462
                                             ==============       ==============

                 See accompanying notes to financial statements


                                        4

 <PAGE>


                         American Bio Medica Corporation
                            Statements of Cash Flows
                                   (Unaudited)

                                             For the Three Months Ended July 31,
                                             -----------------------------------
                                                     1997               1998
                                                   -------------- --------------

Cash flows from operating activities:
 Net profit (loss)                             $     122,000      $    (276,000)
  Adjustments to reconcile net loss
   to net cash used in operating activities:
    Amortization and depreciation                     24,000             18,000
    Changes in:
     Accounts receivable                            (624,000)          (297,000)
     Inventory                                                         (176,000)
     Prepaid expenses and other current assets                          (88,000)
     Other assets                                                       (12,000)
     Accounts payable and accrued expenses          (166,000)          (203,000)
                                               --------------     --------------

      Net cash used in operating activities         (644,000)        (1,034,000)
                                               --------------     --------------

Cash flows from investing activities
  Purchase of property, plant and equipment          (25,000)          (109,000)
  Purchase of investments                          1,053,000                  0
  Patent costs                                        (3,000)
  Loans to officer                                                      (13,000)
                                               --------------     --------------
                                                                            
    Net cash provided by
      (used in) investing activities               1,025,000           (122,000)
                                               --------------     --------------

Cash flows from financing activities:
  Proceeds from exercise of warrants
    and options                                                           6,000
                                               --------------     --------------

    Net cash provided by financing activities              0              6,000
                                               --------------     --------------

Net increase (decrease) in cash and
    cash equivalents                                 381,000         (1,150,000)

Cash and cash equivalents - beginning of period    1,763,000          3,239,000
                                               --------------     --------------

Cash and cash equivalents - end of period      $   2,144,000      $   2,089,000
                                               ==============     ==============


                 See accompanying notes to financial statements

                                        5

 <PAGE>

                          Notes to Financial Statements
                                  July 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 July
31, 1998, and the results of its operations,  and cash flows for the three-month
period then ended.  The results of operations for the  three-month  period ended
July 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.

 Note C - Litigation

     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 pretrail hearing was held
in December 1996 which set a trial date of April 28, 1997.

                                        6
 <PAGE>

     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. Management's Discussion and Analysis or Plan of Operation

         MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                          AND RESULTS OF OPERATIONS
               for the three months ended July 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.

                                        7

 <PAGE>

     Results of operations  for the three months ended July 31, 1998 as compared
to the three months ended July 31, 1997
--------------------------------------------------------------------------------
     During the current quarter,  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  $1,165,000  for the three  months
ended July 31, 1998 as compared to $707,000  for the three months ended July 31,
1997,  representing  an increase of $458,000 or 64.7% over the  preceding  year.
Cost of goods sold for the three  months  ended July 31,  1998 was  $487,000  or
41.8% of drug  test  revenues  as  compared  to  $329,000  or 46.7% of drug test
revenues for the three months ended July 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 $143,000 for the three months ended July 31,
1998  as  compared  to  $110,000  for the  three  months  ended  July  31,  1997
representing  an  increase  of $33,000  or 30.0%.  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 year ended
July 31, 1998 was $27,000 (18.9% of book sales) as compared to $28,000 (25.5% of
book sales) for the three months ended July 31, 1997.

     General and  administrative  costs for the three months ended July 31, 1998
were  $1,031,000,  an increase of 164.4% over expenses of $390,000 for the three
months ended July 31,1997.  These increased general and administrative costs are
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
increased  31.0%  during the  current  year but is  expected  to  decrease  with
anticipated sales growth.

     Depreciation  and amortization was $18,000 and $24,000 for the three months
ended July 31, 1998 and 1997 respectively.

     Research and development  expense  amounted to $50,000 for the three months
ended July 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.

     Liquidity  and capital  resources  as of the end of the three  months ended
July 31, 1998.
-------------------------------------------------------------------------------
     The Company's  cash and cash  equivalents  amounted to  $2,089,000  for the
three months ended July 31, 1998  representing a decrease of $1,150,000 or 35.5%
over  $3,239,000 for the year ended April 30, 1998.  Working  capital  decreased
$434,000 or 9.7% over $4,480,000 recorded for the year ended April 30, 1998.

                                       8
<PAGE>

     The  decrease in working  capital  resulted  from the  following  operating
increases  in  accounts  receivable,  inventories,  prepaid  expenses,  accounts
payable and results of operations.

     As a result of strong  first  quarter  sales of drug  test  kits,  accounts
receivable  increased $297,000 or 41.7% to $1,009,000 for the three months ended
July 31, 1998 compared to $712,000 for the year ended April 30, 1998.


     Inventories  rose 17.8% to  $1,167,000  for the three months ended July 31,
1998 or $498,000 above  $669,000  reported as of the three months ended July 31,
1997.

     Prepaid  expenses  rose $88,000 to $112,000 for the three months ended July
31,  1998  related  to  expenditures  for  prepaid  insurance,  advertising  and
commissions.

     Account  payable  and accrued  expenses  decreased  $203,000  for the three
months ended July 31, 1998.

     Net (loss) from  operations  amounted to  $(276,000)  for the three  months
ended July 31,  1998 due to  increases  in selling,  general and  administrative
expenditures related to the expansion of the company\rquote s infrastructure .
 
     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
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.

  
                                        9
  <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 pretrail 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.


                                        10
 <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: September 11, 1998







                                        11
 <PAGE>