SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549
                                   FORM 10-QSB

|X|   Quarterly report under Section 13 or 15(d) of the Securities Exchange Act
      of 1934.

      For the quarterly period ended March 31, 2006.

|_|   Transition report under 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                                             14-1702188
      --------------------------------------------------------------------
      (State or other jurisdiction of                   (I.R.S. Employer
      incorporation or organization)                    Identification No.)

                   122 Smith Road, Kinderhook, New York 12106
                   -------------------------------------------
                    (Address of principal executive offices)

                                  800-227-1243
                           ---------------------------
                           (Issuer's telephone number)

      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 |_|

      Indicate by check mark whether the Registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act) Yes |_| No |X|

      State the number of shares outstanding of each of the issuer's classes of


      21,359,768 Common Shares as of May 15, 2006

      Transitional Small Business Disclosure Format: Yes |_| No |X|


                                       1
<PAGE>

                                     PART I
                              FINANCIAL INFORMATION
                  American Bio Medica Corporation
                          Balance Sheets

<TABLE>
<CAPTION>
                                                                          March 31,       December 31,
                                                                            2006              2005
                                                                        (Unaudited)
                                                                        ------------      ------------
                               Assets
<S>                                                                     <C>               <C>
Current assets:
      Cash and cash equivalents                                         $    526,000      $    446,000
      Accounts receivable, net of allowance of $105,000 at both
       March 31, 2006 and December 31, 2005                                1,417,000         1,370,000
      Inventory-net of reserve for slow moving and obsolete
       inventory of $250,000 at both March 31, 2006 and December
       31, 2005                                                            3,929,000         4,444,000
      Prepaid and other current assets                                       282,000           109,000
                                                                        ------------      ------------
Total current assets                                                       6,154,000         6,369,000

Property, plant and equipment, net                                         1,466,000         1,562,000
Other assets                                                                 107,000             7,000
                                                                        ------------      ------------
Total assets                                                            $  7,727,000      $  7,938,000
                                                                        ============      ============

                Liabilities and Stockholders' Equity

Current liabilities:
      Accounts payable                                                  $    678,000      $  1,380,000
      Accrued liabilities                                                    158,000           130,000
      Wages payable                                                          184,000           177,000
      Line of credit                                                         359,000
      Current portion of mortgages and notes payable                          23,000            36,000
      Current portion of unearned grant                                       10,000            10,000
                                                                        ------------      ------------
 Total current liabilities                                                 1,412,000         1,733,000

  Long term portion of mortgages and notes payable                           590,000           592,000
  Long term portion of unearned grant                                         60,000            60,000
  Other long term liabilities                                                100,000
                                                                        ------------      ------------
 Total liabilities                                                         2,162,000         2,385,000
                                                                        ------------      ------------
Stockholders' equity:
    Preferred stock; par value $.01 per share; 5,000,000 shares
     authorized; none issued and outstanding Common stock;
     par value $.01 per share; 50,000,000 shares authorized;
     21,359,768 shares issued and outstanding at March 31, 2006
     and December 31, 2005, respectively                                     214,000           214,000
Additional paid-in capital                                                18,853,000        18,853,000
Accumulated deficit                                                      (13,502,000)      (13,514,000)
                                                                        ------------      ------------
Total stockholders' equity                                                 5,565,000         5,553,000
                                                                        ------------      ------------
Total liabilities and stockholders' equity                              $  7,727,000      $  7,938,000
                                                                        ============      ============
</TABLE>


The accompanying notes are an integral part of the financial statements


                                       2
<PAGE>

                         American Bio Medica Corporation
                            Statements of Operations
                                   (Unaudited)

                                                   For The Three Months Ended
                                                             March 31,
                                                  ------------------------------
                                                     2006             2005
                                                  ------------     ------------

Net sales                                         $  3,423,000     $  3,122,000
Cost of goods sold                                   1,781,000        1,479,000
                                                  ------------     ------------
Gross profit                                         1,642,000        1,643,000
                                                  ------------     ------------

Operating expenses:
    Research and development                           154,000          159,000
    Selling and marketing                              784,000          757,000
    General and administrative                         672,000          656,000

                                                  ------------     ------------
                                                     1,610,000        1,572,000
                                                  ------------     ------------
Operating income                                        32,000           71,000
                                                  ------------     ------------

Other income (expense):
   Other income                                                          15,000
   Interest income                                       1,000            1,000
   Interest expense                                    (17,000)         (12,000)
                                                  ------------     ------------
                                                       (16,000)           4,000
                                                  ------------     ------------
Income before provision for income taxes                16,000           75,000
Income taxes                                             5,000            1,000
                                                  ------------     ------------
Net income                                        $     11,000     $     74,000
                                                  ============     ============

Basic income per common share                     $       0.00     $       0.00
                                                  ============     ============
Diluted income per common share                   $       0.00     $       0.00
                                                  ============     ============

 Weighted average shares outstanding -
    basic                                           21,359,768       21,284,768
 Dilutive effect of stock options and warrants         150,372          255,637
                                                  ------------     ------------
 Weighted average shares outstanding -
    diluted                                         21,510,140       21,540,405
                                                  ============     ============


The accompanying notes are an integral part of the financial statements


                                       3
<PAGE>

                         American Bio Medica Corporation
                            Statements of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                            For The Three Months Ended
                                                                    March 31,
                                                            --------------------------
                                                              2006            2005
                                                            ---------       ---------
Cash flows from operating activities:
<S>                                                         <C>             <C>
 Net income                                                 $  11,000       $  74,000
  Adjustments to reconcile net income to net cash used
   in operating activities:
     Depreciation                                              95,000          89,000
     Changes in:
       Accounts receivable                                    (45,000)       (244,000)
       Inventory                                              522,000         111,000
       Prepaid and other current assets                      (172,000)         31,000
       Accounts payable                                      (700,000)       (611,000)
       Accrued liabilities                                     25,000         (40,000)
       Unearned Grant                                                          (5,000)
       Wages payable                                            6,000         (12,000)
                                                            ---------       ---------
         Net cash used in operating activities               (258,000)       (607,000)
                                                            ---------       ---------

Cash flows from investing activities:
  Purchase of property, plant and equipment                    (6,000)        (59,000)
                                                            ---------       ---------
         Net cash used in investing activities                 (6,000)        (59,000)
                                                            ---------       ---------

Cash flows from financing activities:
  Proceeds from exercise of warrants                                            2,000
  Debt payments                                               (15,000)        (17,000)
  Proceeds from line of credit                                359,000
  Proceeds from grant                                                          25,000
                                                            ---------       ---------
         Net cash provided by financing activities            344,000          10,000
                                                            ---------       ---------

Net increase / (decrease) in cash and cash equivalents         80,000        (656,000)
Cash and cash equivalents - beginning of period               446,000         995,000
                                                            ---------       ---------

Cash and cash equivalents - end of period                   $ 526,000       $ 339,000
                                                            =========       =========

Supplemental disclosures of cash flow information
      Cash paid during period for interest                  $  17,000       $  12,000
</TABLE>


The accompanying notes are an integral part of the financial statements


                                       4
<PAGE>

Notes to financial statements (unaudited)

                                 March 31, 2006

Note A - Basis of Reporting

      The accompanying unaudited financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of
America for interim financial information and with the instructions to Form
10-QSB. Accordingly, they do not include all of the information and footnotes
required by accounting principles generally accepted in the United States of
America for complete financial statements. In the opinion of management, such
statements include all adjustments, which are considered necessary for a fair
presentation of the financial position of American Bio Medica Corporation (the
"Company" or "ABMC") at March 31, 2006, and the results of its operations, and
cash flows for the three-month periods ended March 31, 2006 and 2005. The
results of operations for the three-month period ended March 31, 2006 are not
necessarily indicative of the operating results for the full year. These
financial statements should be read in conjunction with the Company's audited
financial statements and related disclosures for the year ended December 31,
2005 included in the Company's Form 10-KSB.

      During the year ended December 31, 2005, the Company incurred a net loss
of $376,000 from net sales of $13,015,000, and had net cash used in operating
activities of $372,000. During the three months ended March 31, 2006, the
Company earned a net income of $11,000 from net sales of $3,423,000. The Company
had net cash outflows from operating activities of $258,000 for the first three
months of 2006 primarily as a result of increases in accounts receivable and
prepaid expenses, and reductions in accrued expenses and accounts payable offset
by reductions in inventory. The reduction in accounts payable stems from first
quarter payments for inventory purchases made in the fourth quarter of 2005.
During the first quarter of 2006, the Company continued to take steps to improve
its financial prospects including focusing on research and development and sales
and marketing. Additionally, the Company replaced three regional sales managers
in the northeast, southwest and south-central U.S.

      The Company's continued existence is dependent upon several factors,
including its ability to raise revenue levels and reduce costs to generate
positive cash flows, and to sell additional shares of the Company's common stock
to fund operations, if necessary.

NEW ACCOUNTING STANDARDS

      In November 2004, the FASB issued SFAS No. 151 "Inventory Costs - An
Amendment of ARB No. 43, Chapter 4" ("FAS 151"). FAS 151 clarifies that abnormal
amounts of idle facility expense, freight, handling costs and spoilage should be
expensed as incurred and not included in overhead. Further, FAS 151 requires
that allocation of fixed and production facilities overhead to conversion costs
should be based on normal capacity of the production facilities. The provisions
in FAS 151 are effective for inventory costs incurred during fiscal years
beginning after June 15, 2005. The adoption of FAS 151 did not have a
significant effect on its financial statements.

      In November 2004, the FASB issued SFAS No. 153 "Exchanges of Nonmonetary
Assets -- An Amendment of APB Opinion No. 29" ("FAS 153"). The provisions of
this statement are effective for nonmonetary asset exchanges occurring in fiscal
periods beginning after June 15, 2005. This statement eliminates the exception
to fair value for exchanges of similar productive assets and replaces it with a
general exception for exchange transactions that do not have commercial
substance -- that is, transactions that are not expected to result in
significant changes in the cash flows of the reporting entity. The adoption of
FAS 153 did not have a significant effect on its financial statements.

      In December 2004, the FASB issued FAS No. 123 (revised 2004), "Share-Based
Payment", ("FAS No. 123(R)"), which amends FAS No. 123, Accounting for
Stock-Based Compensation, and supersedes APB Opinion No. 25, Accounting for
Stock Issued to Employees. FAS No. 123(R) requires compensation expense to be
recognized for all share-based payments made to employees based on the fair
value of the award at the date of grant, eliminating the intrinsic value
alternative allowed by FAS No. 123. Generally, the approach to determining fair
value under the original pronouncement has not changed. However, there are
revisions to the accounting guidelines established, such as accounting for
forfeitures, which will change our accounting for stock-based awards in the
future.


                                       5
<PAGE>

      FAS No. 123(R) must be adopted in the first interim or annual period
beginning after December 15, 2005. The statement allows companies to adopt its
provisions using either of the following transition alternatives:

            (i) The modified prospective method, which results in the
            recognition of compensation expense using FAS 123(R) for all
            share-based awards granted after the effective date and the
            recognition of compensation expense using FAS 123 for all previously
            granted share-based awards that remain unvested at the effective
            date; or

            (ii) The modified retrospective method, which results in applying
            the modified prospective method and restating prior periods by
            recognizing the financial statement impact of share-based payments
            in a manner consistent with the pro forma disclosure requirements of
            FAS No. 123. The modified retrospective method may be applied to all
            prior periods presented or previously reported interim periods of
            the year of adoption.

      ABMC adopted FAS No. 123(R) on January 1, 2006 using the modified
prospective method. Because we previously accounted for share-based payments to
our employees using the intrinsic value method, our results of operations have
not included the recognition of compensation expense for the issuance of stock
option awards. The Company accelerated the vesting of all outstanding stock
options to December 14, 2005. No new options were granted during the first
quarter of 2006.

      FAS No. 123(R) also requires the benefits of tax deductions in excess of
recognized compensation cost to be reported as a financing cash flow, rather
than as an operating cash flow as required under current literature. This
requirement may reduce our net operating cash inflows and increase our net
financing cash flows in periods after adoption. The impact that this change in
reporting will have on future periods cannot be determined at this time because
the benefit recognized is dependent upon attributes that vary for each option
exercise.

      In May 2005, the FASB issued FAS No. 154. "Accounting Changes and Error
Corrections" which replaced APB Opinion No. 20 and FASB Statement No. 3,
Reporting Accounting Changes in Interim Financial Statements, and changes the
requirements for the accounting for and reporting of a change in accounting
principle. This statement shall be effective for accounting changes and
corrections of errors made in fiscal years beginning after December 15, 2005.
FAS No. 154 requires retrospective application to prior periods' financial
statements of changes in accounting principle, unless it is impracticable to
determine either the period-specific effects or the cumulative effect of the
change. This Statement defines retrospective application as the application of a
different accounting principle to prior accounting periods as if that principle
had always been used or as the adjustment of previously issued financial
statements to reflect a change in the reporting entity. FAS No. 154 also
requires that a change in depreciation, amortization, or depletion method for
long-lived, non-financial assets be accounted for as a change in accounting
estimate effected by a change in accounting principle. The Company does not
believe that the adoption of FAS No. 154 will have a significant effect on its
financial statements.

      In February 2006 the FASB issued FAS No. 155 "Accounting for Certain
Hybrid Financial Instruments--an amendment of FASB Statements No. 133 and 140".
This Statement amends FASB Statements No. 133, Accounting for Derivative
Instruments and Hedging Activities, and No. 140, Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities.


                                       6
<PAGE>

This Statement:

      a.    Permits fair value remeasurement for any hybrid financial instrument
            that contains an embedded derivative that otherwise would require
            bifurcation

      b.    Clarifies which interest-only strips and principal-only strips are
            not subject to the requirements of Statement 133

      c.    Establishes a requirement to evaluate interests in securitized
            financial assets to identify interests that are freestanding
            derivatives or that are hybrid financial instruments that contain an
            embedded derivative requiring bifurcation

      d.    Clarifies that concentrations of credit risk in the form of
            subordination are not embedded derivatives

      e.    Amends Statement 140 to eliminate the prohibition on a qualifying
            special-purpose entity from holding a derivative financial
            instrument that pertains to a beneficial interest other than another
            derivative financial instrument. This Statement is effective for all
            financial instruments acquired or issued after the beginning of an
            entity's first fiscal year that begins after September 15, 2006. The
            Company does not believe that the adoption of FAS No. 155 will have
            a significant effect on its financial statements.

      In March 2006 the FASB issued FAS No. 156 "Accounting for Servicing of
Financial Assets--an amendment of FASB Statement No. 140". This Statement amends
FASB Statement No. 140, Accounting for Transfers and Servicing of Financial
Assets and Extinguishments of Liabilities, with respect to the accounting for
separately recognized servicing assets and servicing liabilities. This
Statement:

      1.    Requires an entity to recognize a servicing asset or servicing
            liability each time it undertakes an obligation to service a
            financial asset by entering into a servicing contract in any of the
            following situations:

            a.    A transfer of the servicer's financial assets that meets the
                  requirements for sale accounting

            b.    A transfer of the servicer's financial assets to a qualifying
                  special-purpose entity in a guaranteed mortgage securitization
                  in which the transferor retains all of the resulting
                  securities and classifies them as either available-for-sale
                  securities or trading securities in accordance with FASB
                  Statement No. 115, Accounting for Certain Investments in Debt
                  and Equity Securities

            c.    An acquisition or assumption of an obligation to service a
                  financial asset that does not relate to financial assets of
                  the servicer or its consolidated affiliates.

      2.    Requires all separately recognized servicing assets and servicing
            liabilities to be initially measured at fair value, if practicable.

      3.    Permits an entity to choose either of the following subsequent
            measurement methods for each class of separately recognized
            servicing assets and servicing liabilities:

            a.    Amortization method--Amortize servicing assets or servicing
                  liabilities in proportion to and over the period of estimated
                  net servicing income or net servicing loss and assess
                  servicing assets or servicing liabilities for impairment or
                  increased obligation based on fair value at each reporting
                  date.


                                       7
<PAGE>

            b.    Fair value measurement method--Measure servicing assets or
                  servicing liabilities at fair value at each reporting date and
                  report changes in fair value in earnings in the period in
                  which the changes occur.

      4.    At its initial adoption, permits a one-time reclassification of
            available-for-sale securities to trading securities by entities with
            recognized servicing rights, without calling into question the
            treatment of other available-for-sale securities under Statement
            115, provided that the available-for-sale securities are identified
            in some manner as offsetting the entity's exposure to changes in
            fair value of servicing assets or servicing liabilities that a
            servicer elects to subsequently measure at fair value.

      5.    Requires separate presentation of servicing assets and servicing
            liabilities subsequently measured at fair value in the statement of
            financial position and additional disclosures for all separately
            recognized servicing assets and servicing liabilities. This
            Statement is effective as of the beginning of the Company's first
            fiscal year that begins after September 15, 2006. The Company does
            not believe that the adoption of FAS No. 156 will have a significant
            effect on its financial statements.

Note B - Net Income Per Common Share

      Basic net income or loss per share is calculated by dividing the net
income or loss by the weighted average number of outstanding common shares
during the period. Diluted net income or loss per share includes the weighted
average dilutive effect of stock options and warrants.

      Potential common shares outstanding as of March 31, 2006 and 2005:

                                         March 31,        March 31,
                                           2006             2005
                                         ---------        ---------

                     Warrants            2,223,420        2,243,420
                     Options             4,118,080        4,217,830

      For the three months ended March 31, 2006 the number of securities not
included in the diluted EPS, because the effect would have been anti-dilutive,
were 4,624,500. For the three months March 31, 2005 the number of securities not
included in the diluted EPS, because the effect would have been anti-dilutive,
were 3,024,250.

      ABMC adopted FAS 123(R) (see "New Accounting Standards" above) effective
January 1, 2006. FAS 123(R) requires compensation expense to be recognized for
all share-based payments made to employees based on the fair value of the award
at the date of grant, eliminating the intrinsic value alternative allowed by FAS
No. 123. The following pro forma information, is presented for 2005, giving
effect to fair value of the options on the date of grant using the Black-Scholes
option-pricing model with the following assumptions: dividend yield of 0%,
volatility of 76% for 2005, risk free interest rates ranging from 4.63% to 4.91%
for 2005, and an expected life of 10 years for both 2005. The pro-forma net
income represents three months amortization of expense associated with the
option grants. There were no share-based payments made to employees during the
first quarter of 2006.


                                       8
<PAGE>

                                      Three months ended    Three months ended
                                          March 31,             March 31,
                                           2006                 2005
                                      ----------------------------------------

Net Income/(loss):
      As reported                       $    11,000             $    74,000
      Pro forma                         $    11,000             $  (195,000)
Basic income/(loss) per share
     As reported                        $       .00             $       .00
     Pro forma                          $       .00             $      (.01)
Diluted income/(loss) per share
      As reported                       $       .00             $       .00
      Pro forma                         $       .00             $      (.01)

      During the first quarter of 2005 stockholders' equity changed as a result
of the exercise of 2,500 warrants. Common stock changed by $25 and Additional
paid in capital changed by $2,600 as a result of this exercise.

Note C - Litigation

      The Company has been named in legal proceedings in connection with matters
that arose during the normal course of its business, and that in the Company's
opinion are not material. While the ultimate result of any litigation cannot be
determined in advance, it is management's opinion based upon consultation with
counsel, that it has adequately provided for losses that may be incurred related
to these claims. If the Company is unsuccessful in defending any or all of these
claims, resulting financial losses could have an adverse effect on the financial
position, results of operations and cash flows of the Company.

Note D - Reclassifications

      Certain items have been reclassified to conform to the current
presentation.

Note E - Line of Credit

      The Company has available a line of credit with First Niagara Financial
Group, Inc. ("FNFG") and has a maximum available line of $350,000, not to exceed
70% of accounts receivable less than 60 days. The interest rate is .25% above
the FNFG prime rate and the Company is required to pay the principal down to $0
for a 30 consecutive day period in each 12 month period during which the line is
available.

      The Company obtained an additional line of credit from FNFG for $75,000
during the first quarter of 2006. The line of credit is to be used exclusively
for payments on a sublicense agreement entered into during the first quarter of
2006. The interest rate is .50% above the FNFG prime rate and principal may be
repaid at any time and borrowed again as needed. There is no requirement for
repayment of all principal annually on this line of credit. The Company intends
to repay the funds drawn down on this line within one year to allow borrowing of
additional amounts related to future payments due under the sublicense
agreement.

Note F -Sublicense Agreement

      On February 28, 2006, the Company entered into a non-exclusive Sublicense
Agreement (the "Agreement") related to certain patents to allow the Company to
expand its contract manufacturing operations. Under this Agreement, the Company
is committed to pay a non-refundable fee of $175,000 over the course of 2 years.
The Company would also be required to pay royalties for products the Company
manufactures that fall within the scope of these patents. The Company does not
currently manufacture any products that fall within the scope of these patents,
and therefore, no royalty payments are currently required.


                                       9
<PAGE>

Note G - Integrated Bio Technology Agreement

      On March 29, 2006, the Company entered into a royalty agreement with
Integrated Bio Technology Corporation ("IBC"). IBC is the owner of the RSV test
and previously purchased the tests from the Company, via a contract
manufacturing agreement, for resale to its distributor. At December 31, 2005 IBC
had outstanding amounts due to ABMC totaling approximately $119,000. To address
this outstanding balance, and to streamline the delivery of product to IBC's
distributor, the Company agreed to work directly with IBC's distributor to
receive orders, manufacture product and execute all invoicing and collection
directly from the distributor. Effective January 1, 2006, the Company will pay a
royalty equal to 20% of total sales to IBC. The Company will pay only 25% of
royalties earned during the first two years, with the remaining 75% applied to
amounts currently owed to ABMC by IBC. If the entire amount receivable from IBC
is not earned through royalties during the first two years of the term of the
royalty Agreement, all payments to IBC will cease until the full amount owed to
the Company is satisfied. During the first quarter of 2006 ABMC manufactured and
sold approximately $330,000 of the RSV tests to IBC's distributor. The royalties
earned on these sales were approximately $66,000. ABMC reduced the amounts owed
from IBC by $50,000, from $119,000 to $69,000 and made payments to IBC totaling
approximately $16,000.

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 MARCH 31, 2006

      The following discussion of the Company's financial condition and the
results of operations should be read in conjunction with the Financial
Statements and Notes thereto appearing elsewhere in this document.

      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 in addition to the description of historical
facts contained herein, this report contains certain forward-looking statements
that involve risks and uncertainties as detailed herein and from time to time in
the Company's other 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; (b) risks associated with international
business; (c) regulatory, competitive and contractual risks; (d) product
development risks; and (e) 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 enhanced sales force, new products,
and customer service.

Critical accounting policies

      During the three months ended March 31, 2006, except for the adoption of
FAS 123(R), there were no significant changes to the Company's critical
accounting policies, which are included in the Company's Annual Report on Form
10-KSB for the year ended December 31, 2005.

Results of operations for the three months ended March 31, 2006 as compared to
the three months ended March 31, 2005

      Net sales were $3,423,000 for the three months ended March 31, 2006 as
compared to $3,122,000 for the three months ended March 31, 2005, an increase of
$301,000 or 9.6%. Direct sales accounted for 64.9% or $2,220,000 of sales for
the first quarter compared to $2,242,000 or 71.8% a year ago. Inside sales and
international sales contributed approximately $633,000 or 18.5% of the net sales
for the first three months of 2006, compared to $584,000 or 18.7% of the net
sales for the same period in 2005. The increase in sales in the first quarter of
2006 came primarily from contract manufacturing. Specifically, the Company's
contract to manufacture a test for the detection of Respiratory Syncytial Virus
("RSV"), a juvenile respiratory disease, generated sales of $330,000 in the
first quarter of 2006 as compared to $45,000 for the same period in 2005. RSV is
a seasonal product with most sales occurring between October and April. Due to
this seasonality, we do not expect additional increases in RSV sales until the
fourth quarter of 2006.


                                       10
<PAGE>

      During the three months ended March 31, 2006, the Company continued its
extensive program to market and distribute its primary product lines, the Rapid
Drug Screen(R) and Rapid One(R), together with its OralStat(R) oral fluid test
and its other urine based tests, the RDS(R) InCup(R), Rapid TEC(R), and its
newly introduced cassette product Rapid TOX(TM). The Company also continued
marketing its Rapid Reader(TM), the first all inclusive drug screen
interpretation and data management system cleared by the Food and Drug
Administration ("FDA").

      In the first quarter of 2006, the Company filed three 510(k) marketing
applications with the FDA. One related to a drug screen for Buprenorphine, one
for the Company's Rapid TOX cassette product and one related to a new detection
level for the Company's drug screen for cocaine. The Company has not received
decisions from the FDA on these applications as of the date of this report.

      The Company continued its contract manufacturing operations for
unaffiliated third parties during the first quarter of 2006. Development
continued on the production of a point of collection test for HIV, which is
currently being evaluated by the FDA. The Company is also evaluating several
other requests for contract manufacturing including another HIV test,
incorporation of the Company's drugs of abuse tests into another test
manufactured by an unrelated third party that is used in hospitals, emergency
rooms and clinics and development of variations of the Company's current oral
fluid product to meet specific market demands in Europe.

      Cost of goods sold for the three months ended March 31, 2006 was
$1,781,000 or 52.0% of net sales as compared to $1,479,000 or 47.4% of net sales
for the three months ended March 31, 2005. The increase in cost of goods sold is
due to increases in the cost of labor in manufacturing, stemming from the
greater diversity and complexity of new products along with increases in the
cost of raw materials manufactured from petroleum by-products. Gross profit
margin fell 4.6% year over year. Increased price pressure in the marketplace has
limited the Company's ability to recover cost increases while maintaining market
share. The Company continues to evaluate all aspects of our manufacturing and
assembly processes to identify any areas of cost savings to improve gross
margins.

      Operating expenses increased $38,000, or 2.4% to $1,610,000 in first three
months of 2006 as compared to $1,572,000 in the same period in 2005. Research
and development expense was $154,000, a decrease of $5,000 from $159,000 in the
first quarter of 2005. This is attributable to savings in salaries and wages and
consulting fees offset by increases in compliance costs and depreciation.
Selling and marketing expense increased $27,000, or 3.6% to $784,000 for the
first quarter of 2006 compared to $757,000 in the same period a year ago. The
increase is attributable to salaries and wages and support costs such as travel,
as well as postage expense, previously reported as general and administrative
expense. As a result of new reporting adopted in 2006, the postage expense is
now reported as part of selling and marketing to allow for better management of
the expense and more accurate reporting of sales division costs. This reporting
was not available in 2005. General and administrative expenses increased by
$16,000 or 2.4%, from $656,000 to $672,000 in the first three months of 2006.
This is primarily due to increases in insurance and investor relations offset by
the aforementioned reclassification of postage expense to selling and marketing.


                                       11
<PAGE>

Research and development

      Research and development expenses for the three months ended March 31,
2006 were $154,000 or 4.5% of net sales compared to $159,000 or 5.1% of net
sales for the three months ended March 31, 2005. Savings in salaries and wages
and consulting fees were offset by increases in FDA compliance costs and
depreciation stemming from improvements to the R&D facility in New Jersey.
Management continues its R&D strategy to: focus on new product development to
meet the changing needs of the point of collection drug of abuse testing market;
develop components for an HIV test for a third party currently being evaluated
by the FDA; and develop new uses of immunoassay lateral flow technology.

Selling and marketing expense

      Selling and marketing expense was $784,000 or 22.9% of net sales in the
first three months of 2006. This represents an increase of $27,000, from
$757,000 or 24.2% of net sales in the same three months in 2005. This increase
is primarily attributable to $66,000 of postage expense. As mentioned above this
expense represents postage in excess of amounts received from customers for
shipping and handling and was previously reported as general and administrative
expense in 2005. During 2006 the Company adopted reporting of this expense in
more detail to evaluate its impact on the business and specifically on each of
the sales divisions. This reporting was not available in 2005. The postage
increase and increases in salaries and wages, (resulting from three additional
inside sales representatives), marketing consulting fees and travel expenses,
were offset by decreases in spending for commissions, advertising and samples,
sales meeting expenses, sales literature, and national trade shows.

General and administrative expense

      General and administrative (G&A) expense was $16,000 higher in the first
three months of 2006 than the same period in 2005. Total G&A expense for the
three months ended March 31, 2006 was $672,000 or 19.6% of net sales compared to
$656,000 or 21.0% of net sales in the first three months of 2005. Lowering
general and administrative expense was a reclassification of $66,000 of postage
expense for customer orders in excess of amounts received from customers for
shipping and handling to selling and marketing expense. In addition the Company
reduced spending in taxes, utilities, accounting fees and insurance in the first
quarter. Offsetting this reclassification and savings were increases in investor
relations expense, patents and licensing fees, supplies, and salaries and wages
attributable to additional personnel to address increased regulatory reporting
requirements.

LIQUIDITY AND CAPITAL RESOURCES AS OF MARCH 31, 2006

      The Company's cash requirements depend on numerous factors, including
product development activities, ability to penetrate the direct sales market,
market acceptance of its new products, and effective management of inventory
levels in response to sales forecasts. The Company expects to devote substantial
capital resources to continue its product development, expand manufacturing
capacity, and support its direct sales efforts. The Company will examine other
growth opportunities including strategic alliances and expects such activities
will be funded from existing cash and cash equivalents, issuance of additional
equity or debt securities or additional borrowings subject to market and other
conditions. The Company believes that its current cash balances, and cash
generated from future operations will be sufficient to fund operations for the
next twelve months. 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 obtain additional credit
facilities. There is no assurance that such financing will be available or that
the Company will be able to complete financing on satisfactory terms, if at all.


                                       12
<PAGE>

      Management believes that the amount of research and development, selling
and marketing and general and administrative costs may increase as the Company
continues its investment in long term growth and creates the necessary
infrastructure to: achieve its worldwide drug test marketing and sales goals,
continue its penetration of the direct sales market, support research and
development projects and leverage new product initiatives. However, management
has implemented programs to control the rate of increase of these costs to be
consistent with the expected sales growth rate of the Company.

      The Company has working capital of $4,742,000 at March 31, 2006 compared
to working capital of $4,636,000 at December 31, 2005. The Company has
historically satisfied its net working capital requirements, if needed, through
cash generated by proceeds from private placements of equity securities with
institutional investors. The Company has never paid any dividends on its common
shares and anticipates that all future earnings, if any, will be retained for
use in the Company's business and it does not anticipate paying any cash
dividends.

      Net cash used in operating activities was $258,000 for the three months
ended March 31, 2006 compared to net cash used in operating activities of
$607,000 for the three months ended March 31, 2005. The net cash used in
operating activities for the three months ended March 31, 2006 resulted
primarily from; increases in accounts receivable resulting from the increase in
sales in the first quarter; increases in prepaid expenses resulting from
payments on insurance policies; reductions in accounts payable; offset by net
income and decreases in inventory. Reductions in accounts payable pertain to
first quarter payments for purchases of inventory in the fourth quarter of 2005.
Inventory reductions are the result of sales and focused efforts to control the
levels of inventory.

      Net cash used in investing activities was $6,000 for the three months
ended March 31, 2006 compared to net cash used in investing activities of
$59,000 for the three months ended March 31, 2005. The net cash used in both
years was for investment in property plant and equipment. The cash used in 2005
was specifically for costs associated with the completion of the Company's HIV
room and equipment purchases in the Company's New Jersey facility and additional
equipment purchases for new hires.

      Net cash provided by financing activities was $344,000 for the three
months ended March 31, 2006 consisting of proceeds from the Company's lines of
credit. Net cash provided in the first three months of 2005 were from the
exercise of warrants and proceeds of $25,000 from a Columbia County Economic
Development Grant offset by payments on mortgage and notes payable.

      The Company has available two lines of credit with First Niagara Financial
Group, Inc. ("FNFG"). The first line has a maximum available line of $350,000,
not to exceed 70% of accounts receivable less than 60 days for general operating
use. The interest rate is .25% above the FNFG prime rate and the Company is
required to pay the principal down to $0 for a 30 consecutive day period in each
12-month period during which the line is available. The amount outstanding on
this line of credit was $284,000 at March 31, 2006 and $0 at March 31, 2005. The
second line of credit was obtained during the first quarter of 2006 for the
limited purpose of paying amounts associated with a sublicense agreement
executed during the first quarter. This line is for a maximum of $75,000 with an
interest rate of .50% above the FNFG prime rate and the Company is not required
to pay the principal down to $0 during each twelve month period. The amount
outstanding on this line of credit at March 31, 2006 was $75,000.

      At March 31, 2006, the Company had cash and cash equivalents of $526,000.

      The Company's primary short-term capital and working capital needs relate
to continued support of its research and development programs, opening new
distribution opportunities, focusing sales efforts on segments of the drugs of
abuse testing market that will yield high volume sales, increasing its
manufacturing and production capabilities, establishing adequate inventory
levels to support expected sales and instituting controls necessary to comply
with financial disclosure controls as necessitated by new regulatory
requirements.


                                       13
<PAGE>

ITEM 3. CONTROLS AND PROCEDURES

      As of the end of the period covered by this report, American Bio Medica
Corporation carried out an evaluation, under the supervision and with the
participation of the Chief Financial Officer and the Chief Executive Officer, to
evaluate the effectiveness of the disclosure controls and procedures (as defined
in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended
("Exchange Act")). Based on that evaluation, the Chief Financial Officer and the
Chief Executive Officer have concluded that American Bio Medica Corporation's
disclosure controls and procedures as of the date of this report are effective
for recording, processing, summarizing, and reporting information that is
required to be disclosed in their reports under the Exchange Act, as amended,
within the time periods specified in the Securities and Exchange Commission's
rules and forms.

      Based upon an evaluation performed during the first quarter of 2006, the
Chief Financial Officer and the Chief Executive Officer concluded that there was
a material deficiency in internal control over financial reporting during the
quarter ending September 30, 2005. Specifically, typographical errors in the
quantity of inventory reported to Company headquarters by the Company's New
Jersey manufacturing facility for the quarter ending September 30, 2005 were
discovered by the CFO on January 30, 2006. The CFO discussed this matter with
the Audit Committee and the Company's independent accountants.

      To remediate this deficiency, as of the date of this report, the Company
has

      (1)   reviewed all procedures for the compilation and reporting of
            inventory information with the individuals responsible for reporting
            inventory in the New Jersey manufacturing facility;

      (2)   required financial compilation and reporting in the New Jersey
            office to be reviewed by the New Jersey manufacturing facility
            operations manager prior to transmittal to the Company's
            headquarters; and

      (3)   employed analytical procedures for the CFO and Controller to review
            changes in quantities or value of inventory in excess of 25% for
            reasonableness.

      The Company continues to evaluate additional measures that may be
necessary to remediate this deficiency. Except as set forth above, there were no
changes in American Bio Medica Corporation's internal controls over financial
reporting during the fourth quarter that have materially affected, or are
reasonably likely to materially affect, American Bio Medica Corporation's
internal control over financial reporting.

                                     PART II

                                OTHER INFORMATION

Item 1. Legal Proceedings:

      See "Note C - Litigation" in the Notes to Financial Statements included in
      this report for a description of pending legal proceedings in which the
      Company is a party.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

      None.


                                       14
<PAGE>

Item 3. Defaults upon Senior Securities

      None.

Item 4. Submission of Matters to a Vote of Security-Holders

      None.

Item 5. Other Information

      None.

Item 6. Exhibits

            31.1  Rule 13a-14(a)/15d-14(a) Certification of Chief Executive
                  Officer

            31.2  Rule 13a-14(a)/15d-14(a) Certification of Chief Financial
                  Officer

            32.1  Certification of the Chief Executive Officer pursuant to 18
                  U.S.C. Section 1350, as adopted pursuant to Section 906 of the
                  Sarbanes-Oxley Act of 2002.

            32.2  Certification of the Chief Financial Officer pursuant to 18
                  U.S.C. Section 1350, as adopted pursuant to Section 906 of the
                  Sarbanes-Oxley Act of 2002.


                                       15
<PAGE>

SIGNATURES

      In accordance with the requirements of the Exchange Act, 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/Keith E. Palmer
                                        --------------------------------------
                                        EVP of Finance, Chief Financial Officer
                                        and Treasurer (Principal Accounting
                                        Officer and duly authorized Officer)

Dated: May 15, 2006


                                       16