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

|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
common equity as of the latest practicable date:

      21,459,768 Common Shares as of December 1, 2006

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

<PAGE>

                                     PART I
                              FINANCIAL INFORMATION
                         American Bio Medica Corporation
                                  Balance Sheets
<TABLE>
<CAPTION>
                                                                                    March 31,      December 31,
                                                                                      2006             2005
                                                                                   (Unaudited)
                                                                                   ------------    ------------
<S>                                                                                <C>             <C>
                               Assets
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
                                                                                  ---------    ---------
<S>                                                                               <C>          <C>
Cash flows from operating activities:
 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.

Item 3. Defaults upon Senior Securities

      None.

                                       14
<PAGE>

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:  December 1, 2006

                                       16