**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 June 30, 2007.








oTransition
      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
                incorporation
                  or organization)
              
              (I.R.S.
                  Employer
                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
xNo
o





State
      the
      number of shares outstanding of each of the issuer's classes of common equity
      as
      of the latest practicable date:





21,744,768
      Common Shares as of August 10, 2007




Transitional
      Small Business Disclosure Format: Yes oNo
x







PART
      I


FINANCIAL
      INFORMATION





**American
      Bio Medica Corporation**


**Balance
      Sheets**





**June
                30,**
            
            **December
                31,****2007**
            
            **2006****(Unaudited)****Assets**Current
                assets:Cash
                and cash equivalents
            
            $
            360,000
            
            $
            641,000Accounts
                receivable, net of allowance of $105,000 at both June 30, 2007 and
                December 31, 2006
            
            
            1,555,000
            
            
            1,313,000Inventory,
                net of reserve for slow moving andobsolete
                inventory of $250,000 at both June 30, 2007 and December 31,
                2006
            
            
            4,792,000
            
            
            4,859,000Prepaid
                and other current assets
            
            
            242,000
            
            
            165,000Total
                current assets
            
            
            6,949,000
            
            
            6,978,000Property,
                plant and equipment, net
            
            
            2,331,000
            
            
            1,982,000Other
                assets
            
            
            57,000
            
            
            57,000Total
                assets
            
            $
            9,337,000
            
            $
            9,017,000**Liabilities
                and Stockholders’ Equity**Current
                liabilities:Accounts
                payable
            
            $
            1,052,000
            
            $
            1,091,000Accrued
                liabilities
            
            
            393,000
            
            
            509,000Wages
                payable
            
            
            318,000
            
            
            269,000Line
                of credit
            
            
            748,000
            
            
            176,000Current
                portion of mortgages and notes payable
            
            
            89,000
            
            
            17,000Other
                current liabilities
            
            
            66,000
            
            
            60,000Total
                current liabilities
            
            
            2,666,000
            
            
            2,122,000Long
                term portion of mortgages and notes payable
            
            
            1,179,000
            
            
            758,000Other
                long term liabilities
            
            
            115,000
            
            
            100,000Total
                liabilities
            
            
            3,960,000
            
            
            2,980,000Stockholders’
                equity:Preferred
                stock; par value $.01 per share; 5,000,000 shares authorized; none
                issued
                and outstandingCommon
                stock; par value $.01 per share; 50,000,000 shares authorized; 21,744,768
                and 21,719,768 shares issued and outstanding at June 30, 2007 and
                December
                31, 2006, respectively
            
            
            217,000
            
            
            217,000Additional
                paid-in capital
            
            
            19,268,000
            
            
            19,218,000Accumulated
                deficit
            
            
            (14,108,000
            )
            
            (13,398,000
            )Total
                stockholders’ equity
            
            
            5,377,000
            
            
            6,037,000Total
                liabilities and stockholders’ equity
            
            $
            9,337,000
            
            $
            9,017,000*The
                accompanying notes are an integral part of the financial
                statements*





2




**American
                Bio Medica Corporation****Statements
                of Operations****(Unaudited)**





**For
                The Six Months Ended****June
                30,****2007**
            
            **2006**Net
                sales
            
            $
            6,611,000
            
            $
            7,093,000Cost
                of goods sold
            
            
            3,890,000
            
            
            3,677,000Gross
                profit
            
            
            2,721,000
            
            
            3,416,000Operating
                expenses:Research
                and development
            
            
            347,000
            
            
            311,000Selling
                and marketing
            
            
            1,516,000
            
            
            1,630,000General
                and administrative
            
            
            1,508,000
            
            
            1,327,0003,371,000
            
            
            3,268,000Operating
                income/(loss)
            
            
            (650,000
            )
            
            148,000Other
                income (expense):Interest
                income
            
            
            5,000
            
            
            2,000Interest
                expense
            
            
            (65,000
            )
            
            (36,000
            )(60,000
            )
            
            (34,000
            )Income/(loss)
                before provision for income taxes
            
            
            (710,000
            )
            
            114,000Income
                taxes
            
            
            
            
            
            6,000Net
                income/(loss)
            
            $
            (710,000
            )
            $
            108,000Basic
                income/(loss) per common share
            
            $
            (0.03
            )
            $
            0.01Diluted
                income per common share
            
            $
            (0.03
            )
            $
            0.00Weighted
                average shares outstanding -basic
            
            
            21,728,193
            
            
            21,338,635Dilutive
                effect of stock options and warrants
            
            
            
            
            
            138,935Weighted
                average shares outstanding -diluted
            
            
            21,728,193
            
            
            21,477,570*The
                accompanying notes are an integral part of the financial
                statements*




3





**American
                Bio Medica Corporation****Statements
                of Operations****(Unaudited)**





**For
                The Three Months Ended****June
                30,****2007**
            
            **2006**Net
                sales
            
            $
            3,436,000
            
            $
            3,670,000Cost
                of goods sold
            
            
            1,974,000
            
            
            1,897,000Gross
                profit
            
            
            1,462,000
            
            
            1,773,000Operating
                expenses:Research
                and development
            
            
            178,000
            
            
            156,000Selling
                and marketing
            
            
            825,000
            
            
            847,000General
                and administrative
            
            
            835,000
            
            
            654,0001,838,000
            
            
            1,657,000Operating
                income/(loss)
            
            
            (376,000
            )
            
            116,000Other
                income (expense):Interest
                income
            
            
            1,000
            
            
            1,000Interest
                expense
            
            
            (38,000
            )
            
            (20,000
            )(37,000
            )
            
            (19,000
            )Income/(loss
                before provision for income taxes
            
            
            (413,000
            )
            
            97,000Net
                income/(loss)
            
            $
            (413,000
            )
            $
            97,000Basic
                and diluted income/(loss) per common share
            
            $
            (0.02
            )
            $
            0.00Weighted
                average shares outstanding -basic
            
            
            21,736,526
            
            
            21,317,735Dilutive
                effect of stock options and warrants
            
            
            
            
            
            145,233Weighted
                average shares outstanding -diluted
            
            
            21,736,526
            
            
            21,462,968*The
                accompanying notes are an integral part of the financial
                statements*




4




**American
                Bio Medica Corporation****Statements
                of Cash Flows****(Unaudited)**





**For
                The Six Months Ended****June
                30,****2007**
            
            **2006****Cash
                flows from operating activities:**Net
                income/(loss)
            
            $
            (710,000
            )
            
            108,000Adjustments
                to reconcile net income/(loss) to net cash used in operating
                activities:Depreciation
            
            
            232,000
            
            
            188,000Provision
                for doubtful accounts
            
            
            
            
            
            24,000Non-cash
                compensation expense
            
            
            26,000
            
            
            5,000Changes
                in:Accounts
                receivable
            
            
            (242,000
            )
            
            (464,000
            )Inventory
            
            
            66,000
            
            
            744,000Prepaid
                and other current assets
            
            
            (76,000
            )
            
            (130,000
            )Accounts
                payable
            
            
            (39,000
            )
            
            (602,000
            )Accrued
                liabilities
            
            
            (112,000
            )
            
            (14,000
            )Wages
                payable
            
            
            50,000
            
            
            2,000Net
                cash (used in) operating activities
            
            
            (805,000
            )
            
            (139,000
            )**Cash
                flows from investing activities:**Purchase
                of property, plant and equipment
            
            
            (564,000
            )
            
            (12,000
            )Net
                cash (used in) investing activities
            
            
            (564,000
            )
            
            (12,000
            )**Cash
                flows from financing activities:**Proceeds
                from exercise of options
            
            
            23,000
            
            
            85,000Debt
                payments
            
            
            (46,000
            )
            
            (19,000
            )Proceeds
                from debt financing
            
            
            539,000Proceeds
                from line of credit
            
            
            800,000
            
            
            230,000Line
                of credit payments
            
            
            (228,000
            )Net
                cash provided by financing activities
            
            
            1,088,000
            
            
            296,000**Net
                increase / (decrease) in cash and cash
                equivalents**
            
            
            (281,000
            )
            
            145,000Cash
                and cash equivalents - beginning of period
            
            
            641,000
            
            
            446,000**Cash
                and cash equivalents - end of period**
            
            $
            360,000
            
            
            591,000**Supplemental
                disclosures of cash flow information**Cash
                paid during period for interest
            
            $
            65,000
            
            
            36,000Purchase
                of property, plant and equipment, financing through capital
                lease
            
            
            16,000*The
                accompanying notes are an integral part of the financial
                statements*




5





Notes
      to
      financial statements (unaudited)





June
      30,
      2007





**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 June 30, 2007, and the results of its operations for the three and
      six month periods ended June 30, 2007 and June 30, 2006, and cash flows for
      the
      six-month periods ended June 30, 2007 and 2006. The results of operations for
      the three-month and six-month periods ended June 30, 2007 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, 2006 included
      in the Company's Form 10-KSB.





During
      the year ended December 31, 2006, the Company earned a net income of $196,000
      from net sales of $13,838,000, and had net cash provided by operating activities
      of $342,000. During the six months ended June 30, 2007, the Company sustained
      a
      net loss of $710,000 from net sales of $6,611,000. The Company had net cash
      used
      in operating activities of $805,000 for the first six months of 2007 primarily
      as a result of a net loss and reductions of accrued liabilities, along with
      an
      increase in accounts receivable. During the first six months of 2007, the
      Company continued to take steps to improve its financial prospects including
      focusing on research and development and selling and marketing, while investing
      in automation equipment and expanding manufacturing capacity to increase
      production.





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
      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 established accounting guidelines, such as accounting for
      forfeitures, which has changed our accounting for stock-based awards in the
      future.





FAS
      No.
      123(R) required adoption 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 No. 123(R) for all share-based awards granted after the
      effective date and the recognition of compensation expense using FAS No. 123(R)
      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(R). The modified retrospective
      method may be applied to all prior periods presented or previously reported
      interim periods of the year of adoption.





6


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 had not previously
      included the recognition of compensation expense for the issuance of stock
      option awards. On December 14, 2005, the Company accelerated, to that date,
      the
      vesting of all outstanding stock options that were not yet fully vested. Options
      granted to two employees during the second quarter of 2006 were accounted for
      in
      accordance with FAS No. 123(R).





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
      June
      2006, the FASB issued FIN 48, “Accounting for Uncertainty in Income Taxes—an
      Interpretation of FASB Statement No. 109”. This Interpretation clarifies the
      accounting for uncertainty in income taxes recognized in an enterprise’s
      financial statements in accordance with FASB Statement No. 109, “Accounting for
      Income Taxes” *.* This
      Interpretation prescribes a recognition threshold and measurement attribute
      for
      the financial statement recognition and measurement of a tax position taken
      or
      expected to be taken in a tax return. This Interpretation also provides guidance
      on derecognition, classification, interest and penalties, accounting in interim
      periods, disclosure, and transition.





The
      evaluation of a tax position in accordance with this Interpretation is a
      two-step process. The first step is recognition: the enterprise determines
      whether it is more likely than not that a tax position will be sustained upon
      examination, including resolution of any related appeals or litigation
      processes, based on the technical merits of the position. In evaluating whether
      a tax position has met the more-likely-than-not recognition threshold, the
      enterprise should presume that the position will be examined by the appropriate
      taxing authority that would have full knowledge of all relevant information.
      The
      second step is measurement: a tax position that meets the more-likely-than-not
      recognition threshold is measured to determine the amount of benefit to
      recognize in the financial statements. The tax position is measured at the
      largest amount of benefit that is greater than 50 percent likely of being
      realized upon ultimate settlement.





Differences
      between tax positions taken in a tax return and amounts recognized in the
      financial statements will generally result in one of the following:





a.
            An increase in a liability for income taxes payable or a reduction
                of an
                income tax refund receivable


b.
            A reduction in a deferred tax asset or an increase in a deferred
                tax
                liability; or


c.
            Both (a) and (b).





An
      enterprise that presents a classified statement of financial position should
      classify a liability for unrecognized tax benefits as current to the extent
      that
      the enterprise anticipates making a payment within one year or the operating
      cycle, if longer. An income tax liability should not be classified as a deferred
      tax liability unless it results from a taxable temporary difference (that is,
      a
      difference between the tax basis of an asset or a liability as calculated using
      this Interpretation and its reported amount in the statement of financial
      position). This Interpretation does not change the classification requirements
      for deferred taxes.





Tax
      positions that previously failed to meet the more-likely-than-not recognition
      threshold should be recognized in the first subsequent financial reporting
      period in which that threshold is met. Previously recognized tax positions
      that
      no longer meet the more-likely-than-not recognition threshold should be
      derecognized in the first subsequent financial reporting period in which that
      threshold is no longer met. Use of a valuation allowance as described in
      Statement 109 is not an appropriate substitute for the derecognition of a tax
      position. The requirement to assess the need for a valuation allowance for
      deferred tax assets based on the sufficiency of future taxable income is
      unchanged by this Interpretation. The Company adopted FIN48 on January 1, 2007
      and it did not have a significant effect on its financial
      statements.





7


In
      September 2006, the FASB issued FAS No. 157, "Fair Value Measurements". FAS
      No.
      157 defines fair value, establishes a framework for measuring fair value in
      generally accepted accounting principles (GAAP), and expands disclosures about
      fair value measurements. This Statement is effective for financial statements
      issued for fiscal years beginning after November 15, 2007, and interim periods
      within those fiscal years. This Statement applies under other accounting
      pronouncements that require or permit fair value measurements, the FASB having
      previously concluded in those accounting pronouncements that fair value is
      the
      relevant measurement attribute. Accordingly, this Statement does not require
      any
      new fair value measurements. However, for some entities, the application of
      this
      Statement will change current practice. The Company does not believe that the
      adoption of FAS No. 157 will have a significant effect on its financial
      statements.





In
      September 2006 the Securities and Exchange Commission issued Staff Accounting
      Bulletin (SAB) 108. The interpretation expresses the staff’s views regarding the
      process of quantifying financial statement misstatements. The staff is aware
      that certain registrants do not consider the effects of prior year errors on
      current year financial statements, thereby allowing improper assets or
      liabilities to remain unadjusted. While these errors may not be material if
      considered only in relation to the balance sheet, correcting the errors could
      be
      material to the current year income statement. The interpretations in this
      Staff
      Accounting Bulletin were issued to address diversity in practice in quantifying
      financial statement misstatements and the potential under current practice
      for
      the build up of improper amounts on the balance sheet.





SAB
      108
      notes that a materiality evaluation must be based on all relevant quantitative
      and qualitative factors. This analysis generally begins with quantifying
      potential misstatements to be evaluated. The diversity in approaches for
      quantifying the amount of misstatements primarily stems from the effects of
      misstatements that were not corrected at the end of the prior year (“prior year
      misstatements”). These prior year misstatements should be considered in
      quantifying misstatements in current year financial statements.





If
      the
      misstatement that exists after recording the adjustment in the current year
      financial statements is material (considering all relevant quantitative and
      qualitative factors), the prior year financial statements should be corrected,
      even though such revision previously was and continues to be immaterial to
      the
      prior year financial statements. Correcting prior year financial statements
      for
      immaterial errors would not require previously filed reports to be amended.
      Such
      correction is permitted to be made the next time the registrant files the prior
      year financial statements.





To
      provide full disclosure, registrants electing not to restate prior periods
      should reflect the effects of initially applying this guidance in their annual
      financial statements covering the first fiscal year ending after November 15,
      2006. The cumulative effect of the initial application should be reported in
      the
      carrying amounts of assets and liabilities as of the beginning of that fiscal
      year, and the offsetting adjustment should be made to the opening balance of
      retained earnings for that year. Registrants should disclose the nature and
      amount of each individual error being corrected in the cumulative adjustment.
      The disclosure should also include when and how each error being corrected
      arose
      and the fact that the errors had previously been considered
      immaterial.





Prior
      to
      SAB 108, the Company used the “roll-over” method for accounting for audit
      differences. It was determined that under the roll-over method, a vacation
      accrual was not material to the financial statements taken as a whole in any
      given year. At December 31, 2006 unpaid vacation was estimated to be
      approximately $80,000, which was deemed material to the Company’s financial
      statements under SAB 108. This liability of $80,000 had accumulated steadily
      over a ten-year period. A change in accounting principle was recorded in the
      Company’s fiscal year ended December 31, 2006 financial statements that had not
      been previously recorded. The adjustment was included in the beginning balances
      (December 31, 2005) of wages payable and the accumulated deficit.




8




**Note
      B - Net Income/(Loss) 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 June 30, 2007 and 2006:





**June
                30,**
              **2007**
            
            **June
                30,**
              **2006****Warrants**
            
            
            150,000
            
            
            2,023,420**Options**
            
            
            3,968,080
            
            
            3,993,080





For
      the
      three and six months ended June 30, 2007 and 2006 the number of securities
      not
      included in the diluted EPS, because the effect would have been anti-dilutive,
      were 4,118,080 and 4,474,500, respectively.





**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, 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**





On
      October 5, 2006, the Company was notified that the maximum amount available
      under its line of credit with First Niagara Financial Group, Inc. (“FNFG”) was
      increased from $350,000 to $875,000. The maximum available line of $875,000
      is
      not to exceed 70% of accounts receivable less than 60 days. The purpose of
      the
      line of credit is to provide working capital. The interest rate is .25% above
      the FNFG prime rate. The Company is required to maintain certain financial
      covenants such as net worth (stockholders’ equity) greater than $5 million and
      working capital greater than $4 million. Further, the Company is required to
      maintain a minimum Debt Service Coverage Ratio of not less than 1.2:1.0 measured
      at each fiscal year end beginning December 31, 2006. Debt Service Coverage
      Ratio
      is defined as Net Operating Income divided by annual principal and interest
      payments on all loans relating to subject property. Considering financial
      results through June 30, 2007, there can be no assurance that the Company will
      meet the financial covenants within the second half of 2007 or at fiscal year
      end December 31, 2007. There is no requirement for annual repayment of all
      principal on this line of credit; it is payable on demand. The amount
      outstanding on this line of credit at June 30, 2007 was $698,000.





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 annual
      repayment of all principal on this line of credit. The Company intends to repay
      the funds drawn down on this line within one year of each draw to allow
      borrowing of additional amounts related to future payments due under the
      sublicense agreement. The amount outstanding on this line of credit at June
      30,
      2007 was $50,000.





**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,
      of
      which $75,000 was paid in the first quarter of 2006. The next payment of $50,000
      was paid in February 2007. The Company would also be required to pay royalties
      for products the Company manufactures that fall within the scope of these
      patents. The Company has not manufactured any products that fall within the
      scope of these patents, and therefore, no royalty payments are currently
      required.




9





**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. As of 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. From the inception of the agreement with IBC through
      the
      first six months of 2007, ABMC manufactured and sold approximately $681,000
      of
      the RSV tests to IBC’s distributor. The royalties earned on these sales are
      approximately $137,000, of which $104,000 has been applied to the prepaid
      royalty, leaving a balance of approximately $15,000 due from IBC as of June
      30,
      2007.





**Note
      H - Stock Option Grants**





In
      June
      2006, the Company’s Board of Directors granted a stock option to purchase 72,000
      shares of the Company’s common stock to the Company’s then Chief Financial
      Officer, and an option to purchase 3,000 shares of the Company’s common stock to
      an employee in the Company’s R&D division. Both option grants have exercise
      prices of $1.05 (the closing price of the Company’s common shares on the date of
      grant) and vested 100% on the one-year anniversary of the date of the grant.
      In
      accordance with FAS 123(R) (see “New Accounting Standards” herein), the Company
      has recognized $63,347 in non-cash compensation expense related to these grants
      over the past twelve months. Included in the six months ended June 30, 2007
      is
      $26,000 of this non-cash compensation expense.





**Note
      I - Employment Agreements**





In
      the
      second quarter of 2007, the Company entered into employment agreements with
      the
      Chief Executive Officer Stan Cipkowski, Chief Science Officer Martin R. Gould
      and then Chief Financial Officer Keith E. Palmer providing for aggregate annual
      salaries of $504,000. The agreement with the Chief Executive Officer Cipkowski
      provides for a $206,000 annual salary, is for a term of one year and
      automatically renews unless either party gives advance notice of 60 days. The
      agreement with the Chief Science Officer Gould provides for a $149,000 annual
      salary, is for a term of one year and automatically renews unless either party
      gives advance notice of 60 days. The agreement with the Chief Financial Officer
      Palmer provided for a $149,000 annual salary, was for a term of one year and
      automatically renewed unless either party gave advance notice of 60 days. Copies
      of these employment agreements are attached hereto as exhibits to this quarterly
      report on Form 10-QSB.





The
      employment agreement with Chief Financial Officer Palmer was terminated
      effective July 6, 2007 as a result of Palmer’s resignation.




**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 AND SIX MONTHS ENDED JUNE 30, 2007 AND 2006





10




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 six months ended June 30, 2007, 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, 2006.





**Results
      of operations for the six months ended June 30, 2007 compared to the six months
      ended June 30, 2006**





Net
      sales
      were $6,611,000 for the six months ended June 30, 2007 as compared to $7,093,000
      for the six months ended June 30, 2006, a decrease of $482,000, or 6.8%.
      Increases in national account sales and international sales were offset by
      declines in outside sales and contract manufacturing sales. Contract
      manufacturing sales during the first half of 2007 totaled $82,000, down $406,000
      from $488,000 a year ago, resulting primarily from the timing of orders from
      the
      distributor of the RSV test. Orders in the first quarter of 2006 had previously
      occurred in the fourth quarter of preceding years, but were delayed from the
      fourth quarter of 2005 into the first quarter of 2006.





Sales
      of
      the Company’s Oralstat® oral fluid test and Rapid TOXTM (the cassette product
      introduced by the Company in late 2005) increased when comparing the first
      half
      of 2007 with the first half of 2006. These increases were offset by declines
      in
      sales of Rapid Drug Screen (RDS®) and Rapid TEC® during the first six months of
      2007, compared to the same period a year ago. Some of the RDS attrition may
      be a
      result of customers ordering the RDS InCup® (rather than the RDS) due to its
“all inclusive” cup format and the Rapid TOX (rather than the RDS) due to its
      lower cost. The Company anticipates continued growth in sales of the Rapid
      TOX
      product as it gains market acceptance and penetrates new markets. The Company
      also anticipates growth in its Oralstat oral fluid test and contract
      manufacturing operations.





During
      the six months ended June 30, 2007, the Company continued its extensive program
      to market and distribute its urine and oral fluid based point of collection
      tests for drugs of abuse. The Company also continued marketing its Rapid
      Reader®, the first all-inclusive drug screen interpretation and data management
      system cleared by the U.S. Food and Drug Administration (“FDA”). Sales of the
      Rapid Reader totaled $19,000 during the six months ended June 30, 2007, compared
      to $26,000 during the same period in 2006.





In
      the
      first half of 2007, the Company also launched the patent-pending OralStat EX,
      a
      new oral fluid point of collection test that improves the limits of detection
      over other point of collection oral fluid drug tests on the market. The OralStat
      EX was developed for use in those markets where speed and accuracy are vital.
      OralStat EX has been specifically designed to make both point of collection
      testing and confirmation testing simple. Sales of the OralStat Ex totaled
      $12,000 in the six months ended June 30, 2007.





11




Also
      in
      the first half of 2007, the Company announced that it had entered into a
      Purchase Agreement with one of the world’s largest clinical laboratories. As of
      the date of this report, the name of the client has not yet been disclosed
      at
      the client’s request, however the client is an S&P 500 listed company that
      performs millions of drugs of abuse tests annually. The laboratory will purchase
      the Company’s point of collection drugs of abuse testing devices for use at
      locations strategically located throughout the United States. Sales to this
      entity were $283,000 in the six months ended June 30, 2007. These sales are
      included in the increase in national account sales.





In
      the
      six months ended June 30, 2007, the Company filed an application with the U.S.
      Food and Drug Administration (“FDA”) for CLIA (Clinical Laboratory Improvement
      Amendments of 1988) waived status for its RDS, Rapid One and Rapid TOX product
      lines. CLIA established quality standards for laboratory testing to ensure
      the
      accuracy, reliability and timeliness of patient test results regardless of
      where
      the test was performed. CLIA waived tests are recognized by FDA to be so simple
      to use and so accurate that there is little risk of error. As a result, those
      using CLIA waived tests are not subject to the more stringent and expensive
      requirements of moderate or high complexity laboratories. If the Company is
      granted CLIA waived status for its RDS, Rapid One and Rapid TOX product lines,
      it expects to see increased sales in markets including, but not limited to
      the
      occupational health market and the clinical (i.e. hospital and physician)
      market. As of the date of this report, the Company is currently awaiting FDA’s
      decision on its application.





The
      Company continued its contract manufacturing operations for unaffiliated third
      parties during the first six months of 2007. During the third quarter of 2006,
      the customer for whom the company was developing and manufacturing an HIV
      product entered into a royalty agreement with a third party developer and a
      distributor to share in the profits of sales of an HIV test that already has
      FDA
      clearance. As a result, the Company does not anticipate any future development
      or manufacturing of this HIV product for this customer. The Company does
      manufacture this test for another smaller distributor and is currently
      evaluating the viability of continuing development and seeking FDA clearance
      autonomously while seeking distribution channels through other contract
      manufacturing customers or other sources as may become available.





The
      Company also manufactures other tests for infectious disease, a test for RSV
      (Respiratory Syncytial Virus) and other agricultural testing products. The
      Company is also evaluating several other requests for contract manufacturing
      including 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 six months ended June 30, 2007 was $3,890,000, or 58.8%
      of
      net sales, compared to $3,677,000, or 51.8% of net sales, for the six months
      ended June 30, 2006. The increase in cost of goods sold is due to increases
      in
      the average cost of labor and overhead during the first half of 2007, stemming
      from the greater diversity and complexity of new products along with preparation
      for fulfilling anticipated orders during the remainder of 2007. Also affecting
      cost of goods sold are disposals of some inventory components manufactured
      during the introduction of the new Rapid TOX product in the fourth quarter
      of
      2005. Inventory disposals consisted of expired products and components enhanced
      as a result of product development.





The
      Company continues to evaluate all aspects of its manufacturing and assembly
      processes to identify any areas of cost savings to improve gross margins. To
      increase capacity and automate assembly, the Company has invested nearly $1
      million in equipment and facilities at its manufacturing facility in New Jersey
      since the summer of 2006. The single largest investment was approximately
      $654,000 for equipment to automatically assemble and pouch the Company’s Rapid
      TOX product. This automation will increase output and reduce the number of
      assemblers required to meet expected increased demand. Further, the Company
      acquired additional manufacturing space at its manufacturing facility in New
      Jersey during the fourth quarter of 2006 and thus increased manufacturing space
      at the New Jersey facility by nearly 100%. Increased price pressure in the
      marketplace has limited the Company’s ability to recover manufacturing cost
      increases while maintaining market share.





12




Operating
      expenses were $3,371,000 in the first six months of 2007, compared to $3,268,000
      in the same period in 2006, an increase of $103,000, or 3.2%. Increases of
      $181,000 in general and administrative expense and $36,000 in research and
      development expense were offset by a decrease of $114,000 in selling and
      marketing expense. Driving the increase in general and administrative expense
      were consultancy and other costs of $189,000 associated with the company’s
      efforts to obtain its CLIA waiver, discussed above. Operating expenses increased
      to 51.0% of net sales in the first six months of 2007, from 46.1% for the same
      period in 2006.





Research
      and development (R&D) expense





R&D
      expenses for the six months ended June 30, 2007 were $347,000, or 5.2% of net
      sales, compared to $311,000, or 4.4% of net sales, for the six months ended
      June
      30, 2006. The increase in expense is primarily due to an increase in salaries
      and wages and travel. Management continues its overall strategy to: focus on
      new
      product development to meet the changing needs of the point of collection drugs
      of abuse testing market; respond to requests from other contract manufacturing
      inquiries; and develop new uses and applications of immunoassay lateral flow
      technology.





Selling
      and marketing expense





Selling
      and marketing expenses were $1,516,000, or 22.9% of net sales, in the first
      six
      months of 2007, compared to selling and marketing expenses of $1,630,000, or
      23.0% of net sales, in the same six months of 2006. As a percentage of sales,
      this is relatively unchanged when comparing the same periods of 2007 and 2006.
      The Company’s sales strategy continues to be a focus on direct sales and inside
      direct sales, while identifying new contract manufacturing operations and
      pursuing new national accounts.





General
      and administrative (G&A) expense





G&A
      expenses were $1,508,000, or 22.8% of net sales, in the first half of 2007,
      compared to $1,327,000, or 18.7% of net sales, in the first half of 2006.
      Increases in investor relations expense, personnel expenses, consulting fees
      related to the company’s CLIA application, repairs to facilities, patents and
      license expense, and non-cash compensation were primarily responsible for the
      increase. The investor relations expense relates to two contracts signed in
      2005
      and 2006 with two investor relations firms. The contracts, one renewed on a
      month-to-month basis in February of 2007, total $11,500 per month. Offsetting
      these increases were savings in telecommunications, bad debts and insurance.




**Results
      of operations for the three months ended June 30, 2007 compared to the three
      months ended June 30, 2006**





Net
      sales
      were $3,436,000 for the three months ended June 30, 2007, compared to $3,670,000
      for the three months ended June 30, 2006. This represents a decrease of
      $234,000, or 6.4%. Increases in national account sales, international sales
      and
      in-house sales were offset by declines in outside sales and contract
      manufacturing sales. Contract manufacturing sales were $97,000 less in the
      second quarter of 2007 than in the second quarter of 2006. Outside sales were
      down primarily as a result of lost personnel within the outside sales
      department. The Company is currently in the process of recruiting new personnel
      to address this issue.





Sales
      of
      the Company’s Oralstat® oral fluid test and Rapid TOXTM (the cassette product
      introduced by the Company in late 2005) increased when comparing the second
      quarter of 2007 with the second quarter of 2006. These increases were offset
      by
      declines in Rapid Drug Screen (RDS®) and Rapid TEC® sales during the second
      quarter of 2007, compared to the same period a year ago. Some of the RDS
      attrition may be a result of customers ordering the RDS InCup® (rather than the
      RDS) due to its “all inclusive” cup format and the Rapid TOX (rather than the
      RDS) due to its lower cost. The Company anticipates continued growth in sales
      of
      the Rapid TOX product as it gains market acceptance and penetrates new markets.
      The Company also anticipates growth in its Oralstat oral fluid test and contract
      manufacturing operations.





During
      the three months ended June 30, 2007, the Company continued its extensive
      program to market and distribute its urine and oral fluid based point of
      collection tests for drugs of abuse. The Company also continued marketing its
      Rapid Reader, the first all inclusive drug screen interpretation and data
      management system cleared by the U.S. Food and Drug Administration (“FDA”).
      Sales of the Rapid Reader totaled $5,000 during the three months ended June
      30,
      2007, compared to $9,000 during the second quarter of 2006.





13




In
      the
      second quarter of 2007, the Company filed an application with the U.S. Food
      and
      Drug Administration (“FDA”) for CLIA (Clinical Laboratory Improvement Amendments
      of 1988) waived status for its RDS, Rapid One and Rapid TOX product lines.
      CLIA
      established quality standards for laboratory testing to ensure the accuracy,
      reliability and timeliness of patient test results regardless of where the
      test
      was performed. CLIA waived tests are recognized by FDA to be so simple to use
      and so accurate that there is little risk of error. As a result, those using
      CLIA waived tests are not subject to the more stringent and expensive
      requirements of moderate or high complexity laboratories. If the Company is
      granted CLIA waived status for its RDS, Rapid One and Rapid TOX product lines,
      it expects to see increased sales in markets including, but not limited to,
      the
      occupational health market and the clinical (i.e. hospital and physician)
      market. As of the date of this report, the Company is currently awaiting FDA’s
      decision on their application.





The
      Company continued its contract manufacturing operations for unaffiliated third
      parties during the second quarter of 2007. The Company continues to manufacture
      an HIV test, other tests for infectious diseases, a test for RSV (Respiratory
      Syncytial Virus) and other agricultural testing products. The Company is also
      evaluating several other requests for contract manufacturing including
      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. Contract manufacturing
      sales during the second quarter of 2007 totaled $12,000, down from $127,000
      in
      the same period a year ago.





Cost
      of
      goods sold for the three months ended June 30, 2007 was $1,974,000, or 57.5%
      of
      net sales, compared to $1,897,000, or 51.7% of net sales, for the three months
      ended June 30, 2006. The increase in cost of goods sold is due to increases
      in
      the average cost of labor and overhead during the second quarter of 2007,
      stemming from the greater diversity and complexity of new products along with
      preparation for fulfilling anticipated orders during the remainder of
      2007.





Operating
      expenses were $1,838,000 in the second quarter of 2007, compared to $1,657,000
      in the same period in 2006, an increase of $181,000, or 10.9%. Increases of
      $181,000 in general and administrative expense and $22,000 in research and
      development expense were offset by a decrease of $22,000 in selling and
      marketing expense. Driving the increase in general and administrative expense
      were consulting fees related to the company’s CLIA waiver application, discussed
      above. Increases in R&D were primarily the result of personnel costs and
      travel. Savings in Sales and Marketing are attributed to savings in salaries.
      Operating expenses increased to 53.5% of net sales for the three months ended
      June 30, 2007, from 45.1% for the same period in 2006.





Research
      and development (R&D) expense





R&D
      expenses for the three months ended June 30, 2007 were $178,000, or 5.2% of
      net
      sales, compared to $156,000, or 4.3% of net sales, for the three months ended
      June 30, 2006. The increase in expense is primarily due to an increase in
      personnel costs. Management continues its overall strategy to: focus on new
      product development to meet the changing needs of the point of collection drugs
      of abuse testing market; respond to requests from other contract manufacturing
      inquiries; and develop new uses of immunoassay lateral flow
      technology.





Selling
      and marketing expense





Selling
      and marketing expenses were $825,000, or 24.0% of net sales, in the second
      quarter of 2007. This represents a decrease of $22,000, from selling and
      marketing expenses of $847,000, or 23.1% of net sales, in the same three months
      of 2006. This decrease as a percentage of sales is primarily the result of
      savings in salaries and wages. The Company’s sales strategy continues to be a
      focus on direct sales and inside direct sales, while identifying new contract
      manufacturing operations and pursuing new national accounts. The Company is
      currently looking to add to its existing sales force.





14




General
      and administrative (G&A) expense





G&A
      expenses were $835,000, or 24.3% of net sales, in the second quarter of 2007,
      compared to $654,000, or 17.8% of net sales, in the second quarter of 2006.
      The
      increase is almost exclusively due to consulting fees related to the Company’s
      CLIA application. All other areas of G&A were relatively flat in the second
      quarter of 2007.




LIQUIDITY
      AND CAPITAL RESOURCES AS OF JUNE 30, 2007





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.





Management
      believes that 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 $4,283,000 at June 30, 2007 compared to working
      capital of $4,856,000 at December 31, 2006. 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 and debt financing. 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 $805,000 for the six months ended June 30,
      2007
      compared to net cash used in operating activities of $139,000 for the six months
      ended June 30, 2006. The net cash used in operating activities for the six
      months ended June 30, 2007 resulted primarily from a net loss and decreases
      in
      accrued liabilities and increases in accounts receivable.





Net
      cash
      used in investing activities was $580,000 for the six months ended June 30,
      2007, compared to net cash used in investing activities of $12,000 for the
      six
      months ended June 30, 2006. The net cash used in both years was for investment
      in property, plant and equipment. Included in cash used in 2007 is $270,000
      representing the cost of automation equipment purchased for use in the Company’s
      New Jersey manufacturing facility. Delivery of the new equipment occurred in
      the
      first quarter of 2007. This investment is for machinery that is used to assemble
      the Rapid TOX cassette product and in preparation for significant growth in
      demand forecasted for the second half of 2007.





Net
      cash
      provided by financing activities was $1,088,000 for the six months ended June
      30, 2007. This consisted of proceeds of $800,000 from the Company’s lines of
      credit, $539,000 in proceeds from a five-year term note entered into in the
      first quarter of 2007, and $23,000 from proceeds from the exercise of stock
      options. These amounts were offset by debt payments and line of credit payments.




15





The
      term
      note proceeds were used for the purchase of automation equipment in the New
      Jersey manufacturing facility. The term note was entered into w ith
      First
      Niagara Financial Group (“FNFG”). The term of the note is five (5) years with a
      fixed interest rate of 7.17%. The Company's monthly payment is $10,714 and
      payments commenced on February 1, 2007, with the final payment being due on
      January 1, 2012. The Company has the option of prepaying the Note in full or
      in
      part at any time during the term without penalty. There were no closing costs
      associated with this Note. The loan is secured by Company assets now owned
      or to
      be acquired.





Net
      cash
      provided by financing activities in the first six months of 2006 was $296,000,
      which includes proceeds from the Company’s line of credit and proceeds from the
      exercise of stock options, offset by debt payments.





The
      Company has available two lines of credit from First Niagara Financial Group,
      Inc. ("FNFG"). The first line has a maximum available line of $875,000, 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. The Company is required
      to
      maintain certain financial covenants such as net worth (stockholders’ equity)
      greater than $5 million and working capital greater than $4 million. Further,
      the Company is required to maintain a minimum Debt Service Coverage Ratio of
      not
      less than 1.2:1.0 measured at each fiscal year end beginning December 31, 2006.
      Debt Service Coverage Ratio is defined as Net Operating Income divided by annual
      principal and interest payments on all loans relating to subject property.
      Considering financial results through June 30, 2007, there can be no assurance
      that the Company will meet the financial covenants within the second half of
      2007 or at fiscal year end December 31, 2007. There is no requirement for annual
      repayment of all principal on this line of credit; it is payable on demand.
      The
      amount outstanding on this line of credit was $698,000 at June 30, 2007 and
      $174,000 at June 30, 2006.





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 June 30, 2007 was $50,000, and $56,000
      was
      outstanding at June 30, 2006.





At
      June
      30, 2007, the Company had cash and cash equivalents of $360,000.





The
      Company's primary short-term capital and working capital needs relate to
      continued support of its research and development programs, exploring 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.




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 Interim 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 Interim 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 its reports under the Exchange Act, as amended,
      within the time periods specified in the Securities and Exchange Commission's
      rules and forms. Additionally, based upon this most recent evaluation, we have
      concluded that there were no significant changes in internal controls or other
      factors that have materially affected or are likely to materially affect the
      Company’s internal control over financial reporting during the period covered by
      this report.





16




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.
      Changes in Securities





None.





Item
      3.
      Defaults upon Senior Securities





None.





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




The
      following matters were voted upon at the Company’s Annual Meeting of
      Shareholders (the “Meeting”) held at the Holiday Inn, in East Greenbush, New
      York on June 19, 2007.




**PROPOSAL
      1 - ELECTION OF DIRECTORS**




**Total shares in
              attendance:**
            19,234,011
            **Outstanding shares:**
            21,719,768




**Proposal
                  No. 1 - Election of Directors**
              **Votes
                  Cast:**19,234,011
  Director
              
              For
              
              Pct.
              
              Withheld
              
              Pct.Anthony
                  Costantino
              
              
              18,008,597
              
              
              93.6
              
              
              1,237,428
              
              
              6.4Carl
                  Florio
              
              
              19,004,283
              
              
              98.8
              
              
              255,628
              
              
              1.2




Both
      nominees for election to the Board of Directors were elected for a three year
      term ending in 2010 or until their successors shall be elected and duly
      qualified.




Item
      5.
      Other Information





None.





Item
      6.
      Exhibits


10.27
              Employment
                  contract between the Company and Chief Executive Officer Stan
                  Cipkowski10.28
              Employment
                  contract between the Company and Chief Science Officer and
                  Executive Vice President, Technology Martin R.
                  Gould10.29
              Employment
                  contract between the Company and Chief Financial Officer and
                  Executive Vice President, Finance Keith E.
                  Palmer


17




31.1
              Rule
                  13a-14(a)/15d-14(a) Certification of Chief Executive
                  Officer31.2
              Rule
                  13a-14(a)/15d-14(a) Certification of Interim Chief Financial
                  Officer32.1
              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 Interim Chief Financial Officer pursuant to 18 U.S.C. Section
                  1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act
                  of 2002.




18




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/
              Stefan ParkerInterim Chief Financial Officer and Interim
              Principal Accounting Officer and duly
              authorized
                Officer


Dated:
        August 13, 2007




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