Lifeloc Technologies Reports First Quarter 2024 Results

*WHEAT RIDGE, CO / ACCESSWIRE / May 15, 2024 /* Lifeloc Technologies, Inc. (OTC Pink:LCTC), a global leader in the development and manufacturing of breath alcohol and drug testing devices, has announced financial results for the first quarter ended March 31, 2024.

*First Quarter Financial Highlights*

Lifeloc posted quarterly net revenue of $2.153 million resulting in a quarterly net loss of $(284) thousand, or $(0.12) per diluted share. These results compare to net revenue of $2.165 million and quarterly net loss of ($54) thousand, or ($0.02) per diluted share in the first quarter of 2023. Revenue change for the quarter was essentially flat, decreasing $11 thousand versus the first quarter last year. Gross margin in the first quarter declined to 38.8% versus 43.2% last year, due primarily to increases in costs resulting from inflation. Research and Development investment rose by 40%, primarily for SpinDx development, contributing significantly to the current period loss.

We believe our core alcohol detection product line-up is strong. The L-series LX9 and LT7 units have features and performance that have driven market penetration by meeting previously unaddressable market needs, such as wider temperature ranges and fast customization that incorporates local languages. Additionally, smart phone pairing of the LX9 units is expected to be introduced in the second quarter of 2024.

"We are excited to be able to offer smart phone pairing with our LX9 units soon to achieve better systems integration, which some customers have been seeking," commented Dr. Wayne Willkomm, President and CEO.

We expect that sales of our newer L-series devices will be incremental to FC-series devices rather than displacing FC sales. The L-series devices have been certified to meet the requirements of most modern registration standards, such as SAI's (Standards Australia International) latest AS 3547:2019 standards for Breath Alcohol Detectors. Our FC-series devices remain popular with many law enforcement and international organizations. Our Easycal® automated calibration station, the only automated calibration available for portable breath alcohol testers, builds valuable protection around our brand and contributes to market share gains by the workplace Phoenix® 6.0 BT and EV 30 devices.

We believe our most important goal and best opportunity remains the convergence of the global need for rapid detection of drugs of abuse with Lifeloc's proven capability to build easy-to-use portable testing equipment. We are therefore focusing our research and development efforts on leveraging the SpinDx™ technology platform, sometimes referred to as "Lab on a Disk," to develop a series of devices and tests that can be used at roadside and in emergency rooms, forensic labs and workplace test sites to achieve a rapid and quantitative measure for a panel of drugs of abuse. The initial product release is projected to be a device with a disk that allows for detection of delta-9-THC (the major intoxicating component of the cannabis plant) from a test subject's saliva, followed by a disk for a panel of other drugs. SpinDx has been demonstrated in our laboratory to effectively detect for delta-9-THC, cocaine, fentanyl, amphetamine methamphetamine, morphine, MDMA, and benzodiazepines. Testing has validated the SpinDx measurement technology against the definitive standard liquid chromatography-mass spectroscopy (LCMS) measurement utilizing human samples. The LCMS data are validating the SpinDx test results on real-world human saliva tests at a limit of detection of approximately 10 ng/ml. With our research and development work, we continue to improve our technology's robustness, speed, and convenience of operation. The start of beta testing of our SpinDx saliva testing system utilizing the delta-9-THC disks is expected later in 2024 using prototype readers as shown in the photograph below. Commercial launch of our first SpinDx application is projected to occur in 2025. Following initial commercialization, we expect more offerings from this technology platform to include expanded drug panels and samples collected from blood and breath. Following the release of our SpinDx saliva testing system, we expect to accelerate development of combining our LX9 breathalyzer with the THC SpinDx detection unit, to produce our roadside marijuana breathalyzer system.

"Our top priority is pushing the SpinDx product platform across the finish line," Dr. Willkomm said. "We anticipate increasing our research and development expenses in this final push toward commercialization. With the rising interest in saliva drug testing, the initial release of SpinDx to the market becomes more urgent and valuable."

*About Lifeloc Technologies*

Lifeloc Technologies, Inc. (OTC: LCTC) is a trusted U.S. manufacturer of evidential breath alcohol testers and related training and supplies for Workplace, Law Enforcement, Corrections and International customers. Lifeloc stock trades over-the-counter under the symbol LCTC. We are a fully reporting Company with our SEC filings available on our web site, www.lifeloc.com/investor .

Forward Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve substantial risks and uncertainties that may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements expressed or implied in this press release, including statements about our strategies, expectations about new and existing products, market demand, acceptance of new and existing products, technologies and opportunities, market size and growth, and return on investments in products and market, are based on information available to us on the date of this document, and we assume no obligation to update such forward-looking statements. Investors are strongly encouraged to review the section titled "Risk Factors" in our SEC filings .

Easycal® and Phoenix^ ® are registered trademarks of Lifeloc Technologies, Inc.

SpinDx™ is a trademark of Sandia Corporation.

Amy Evans
Lifeloc Technologies, Inc.
http://www.lifeloc.com
(303) 431-9500

LIFELOC TECHNOLOGIES, INC.
Condensed Balance Sheets

ASSETS March 31, 2024 (Unaudited) December 31, 2023
CURRENT ASSETS:

Cash
$ 1,031,540 $ 1,766,621
Accounts receivable, net
756,907 812,126
Inventories, net
3,017,505 3,024,834
Prepaid expenses and other
266,956 105,967
Total current assets
5,072,908 5,709,548


PROPERTY AND EQUIPMENT, at cost:

Land
317,932 317,932
Building
1,928,795 1,928,795
Real-time Alcohol Detection And Recognition equipment and software
569,448 569,448
Production equipment, software and space modifications
1,154,803 1,154,803
Training courses
432,375 432,375
Office equipment, software and space modifications
233,190 216,618
Sales and marketing equipment and space modifications
226,356 226,356
Research and development equipment, software and space modifications
522,542 480,684
Less accumulated depreciation
(3,375,026 ) (3,326,837 )
Total property and equipment, net
2,010,415 2,000,174


OTHER ASSETS:

Patents, net
84,327 64,439
Deposits and other
265,169 111,157
Deferred taxes
895,551 806,652
Total other assets
1,245,047 982,248


Total assets
$ 8,328,370 $ 8,691,970


LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:

Accounts payable
$ 556,160 $ 402,231
Term loan payable, current portion
51,985 51,588
Income taxes payable
- 44,952
Customer deposits
178,052 195,719
Accrued expenses
175,916 329,311
Deferred revenue, current portion
76,247 79,036
Reserve for warranty expense
46,500 46,500
Total current liabilities
1,084,860 1,149,337


TERM LOAN PAYABLE, net of current portion and

debt issuance costs
1,157,635 1,170,243


DEFERRED REVENUE, net of current portion
8,856 11,565
Total liabilities
2,251,351 2,331,145




COMMITMENTS AND CONTINGENCIES



STOCKHOLDERS' EQUITY:

Common stock, no par value; 50,000,000 shares

authorized, 2,454,116 shares outstanding
4,668,014 4,668,014
Retained earnings
1,409,005 1,692,811
Total stockholders' equity
6,077,019 6,360,825


Total liabilities and stockholders' equity
$ 8,328,370 $ 8,691,970

LIFELOC TECHNOLOGIES, INC.
Condensed Statements of Income (Unaudited) Three Months Ended March 31,
REVENUES:
2024 2023
Product sales
$ 2,134,434 $ 2,133,359
Royalties
10,936 8,206
Rental income
8,073 22,989
Total
2,153,443 2,164,554


COST OF SALES
1,318,136 1,229,127


GROSS PROFIT
835,307 935,427


OPERATING EXPENSES:

Research and development
555,599 396,766
Sales and marketing
345,009 287,883
General and administrative
314,926 319,015
Total
1,215,534 1,003,664


OPERATING INCOME (LOSS)
(380,227 ) (68,237 )


OTHER INCOME (EXPENSE):

Interest income
17,672 9,800
Interest expense
(10,150 ) (10,535 )
Total
7,522 (735 )


NET (LOSS) BEFORE PROVISION FOR TAXES
(372,705 ) (68,972 )


BENEFIT FROM FEDERAL AND STATE INCOME TAXES
88,899 15,184


NET INCOME (LOSS)
$ (283,806 ) $ (53,788 )


NET INCOME (LOSS) PER SHARE, BASIC
$ (0.12 ) $ (0.02 )


NET INCOME (LOSS) PER SHARE, DILUTED
$ (0.12 ) $ (0.02 )


WEIGHTED AVERAGE SHARES, BASIC
2,454,116 2,454,116


WEIGHTED AVERAGE SHARES, DILUTED
2,454,116 2,454,116

Lifeloc Technologies, Inc.
Condensed Statements of Stockholders' Equity (Unaudited) Three Months Ended March 31,

2024 2023
Total stockholders' equity, beginning balances
$ 6,360,825 $ 6,155,211


Common stock (no shares issued during periods):

Beginning balances
4,668,014 4,668,014
Ending balances
4,668,014 4,668,014


Retained earnings:

Beginning balances
1,692,811 1,487,197
Net (loss)
(283,806 ) (53,788 )
Ending balances
1,409,005 1,433,409


Total stockholders' equity, ending balances
$ 6,077,019 $ 6,101,423

LIFELOC TECHNOLOGIES, INC.
Condensed Statements of Cash Flows (Unaudited) Three Months Ended March 31,
CASH FLOWS FROM OPERATING ACTIVITIES:
2024 2023
Net (loss)
$ (283,806 ) $ (53,788 )
Adjustments to reconcile net income to net cash

provided from (used in) operating activities-

Depreciation and amortization
51,085 72,490
Provision for inventory obsolescence, net change
17,500 -
Deferred taxes, net change
(88,899 ) (15,184 )
Changes in operating assets and liabilities-

Accounts receivable
55,219 84,089
Inventories
(10,171 ) (130,416 )
Prepaid expenses and other
(160,989 ) (155,863 )
Deposits and other
(154,012 ) -
Accounts payable
153,929 88,806
Income taxes payable
(44,952 ) -
Customer deposits
(17,667 ) (11,884 )
Accrued expenses
(153,395 ) (157,567 )
Deferred revenue
(5,498 ) (6,689 )
Net cash provided from (used in)

operating activities
(641,656 ) (286,006 )


CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:

Purchases of property and equipment
(58,430 ) -
Patent filing expense
(21,708 ) (1,404 )
Net cash (used in) investing activities
(80,138 ) (1,404 )


CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:

Principal payments made on term loan
(13,287 ) (12,900 )
Net cash provided from (used in) financing

activities
(13,287 ) (12,900 )


NET INCREASE (DECREASE) IN CASH
(735,081 ) (300,310 )


CASH, BEGINNING OF PERIOD
1,766,621 2,352,754


CASH, END OF PERIOD
$ 1,031,540 $ 2,052,444


SUPPLEMENTAL INFORMATION:

Cash paid for interest
$ 9,073 $ 9,459


Cash paid for income tax
$ 6,440 $ -

*SOURCE:* Lifeloc Technologies, Inc.
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