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Lifeloc Reports First Quarter 2022 Results
[May 11, 2022]

Lifeloc Reports First Quarter 2022 Results


WHEAT RIDGE, Colo., May 11, 2022  /PRNewswire/ -- Lifeloc Technologies, Inc. (OTC: 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, 2022.

First Quarter Financial Highlights

Lifeloc posted quarterly net revenue of $2.161 million resulting in a quarterly net loss of $(145) thousand, or $(0.06) per diluted share.  These results compare to net revenue of $1.810 million and quarterly net profit of $403 thousand, or $0.16 per diluted share in the first quarter of 2021.  The first quarter 2021 results include a gain of $465 thousand from the SBA Paycheck Protection Program loan forgiveness.  Revenue for the quarter increased by 19% versus the first quarter last year, primarily through demand recovery from the COVID-19 global pandemic as well as new product adoption.  Increasing research and development investment contributed to the loss in this quarter.

New platform LX9 and LT7 devices are producing strong sales growth.  The L-series devices feature a high-resolution modern display with a highly customizable user interface.  Their features and performance have driven penetration by meeting previously unaddressable market needs, such as wider temperature ranges and fast customization that incorporates local languages.  We expect that most L-series sales will be incremental to FC-series devices rather than displacing FC sales.  The L-series devices are meeting the requirements of the most modern registration standards, such as SAI's (Standards Australia International) latest AS 3547:2019 standards for Breath Alcohol Detectors.

Our most important goal remains the convergence of the global need for rapid detection of drugs of abuse with Lifeloc's capability of building easy-to-use portable testing equipment.  We intend to use the SpinDx™ technology platform, sometimes referred to as "Lab on a Disk", to develop a series of devices and tests that could be used at roadside, emergency rooms and in workplace testing to get a rapid and quantitative measure for a panel of drugs of abuse.  The first test we intend to offer is the SpinDx device with disks for delta-9-THC detection from an oral fluid sample collected from a test subject.  Then we intend to offer a device based on our recently updated LX9 breathalyzer to collect a sample for analysis from breath, which coupled with the SpinDx device will be our marijuana breathalyzer system.  We have improved the detection sensitivity for delta-9-THC as well as the test speed and robustness of the device.  We are continuing to work on developing this system into a device that can be used for roadside testing, as well as other contexts requiring fast response.  Additional personnel and new equipment resources have been committed to finalizing the development of the first products of the SpinDx technology platform.

"We are glad to see more sales recovery in 2022, with many customers having deferred new equipment purchases during the pandemic," commented Dr. Wayne Willkomm, President and CEO.  "However, we are not just relying on pent up demand for sales growth, but instead our strong pipeline of recent and upcoming product releases will be the big driver.  The Easycal® calibration station and the premium L-series devices are finding broad acceptance and the R.A.D.A.R.® 200 devices have been released to sales.  The L-series devices have grown from a small base to a significant contributor to revenue and margin.  Revenue from these is expected to provide the continued funding to push the SpinDx product platform across the finish line to commercialization.   Research and development expenses will remain high in this push to complete the first of many products built on the SpinDx platform, prioritizing substantial value creation over short-term profitability.  We are working towards the goal of initial SpinDx sales this year."

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 R.A.D.A.R.® 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, 2022 (Unaudited)



December 31, 2021

CURRENT ASSETS:





Cash

$

2,018,828


$

2,571,668


Accounts receivable, net


798,748



562,092


Inventories, net


2,514,112



2,668,789


Prepaid expenses and other


167,006



56,897


      Total current assets


5,498,694



5,859,446








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


958,785



958,785


Training courses


432,375



432,375


Office equipment, software and space modifications


216,618



216,618


Sales and marketing equipment and space modifications


226,356



226,356


Research and development equipment, software and space modifications

467,485



456,685


Less accumulated depreciation


(2,628,470)



(2,518,966)


     Total property and equipment, net


2,489,324



2,588,028








OTHER ASSETS:







Patents, net


115,920



134,428


Deposits and other


163,480



163,480


Deferred taxes


248,024



204,449


     Total other assets


527,424



502,357









     Total assets

$

8,515,442


$

8,949,831








LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:







Accounts payable

$

295,523


$

445,985


Term loan payable, current portion


48,887



48,513


Customer deposits


166,100



170,952


Accrued expenses


155,299



298,530


Deferred revenue, current portion


74,460



71,604


Reserve for warranty expense


46,500



46,500


      Total current liabilities


786,769



1,082,084








TERM LOAN PAYABLE, net of current portion and







debt issuance costs


1,255,727



1,267,551








DEFERRED REVENUE, net of current portion


6,486



6,430


      Total liabilities


2,048,982



2,356,065















COMMITMENTS AND CONTINGENCIES













STOCKHOLDERS' EQUITY:







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







  authorized, 2,454,116 shares outstanding


4,668,014



4,650,812


Retained earnings


1,798,446



1,942,954


      Total stockholders' equity


6,466,460



6,593,766









      Total liabilities and stockholders' equity

$

8,515,442


$

8,949,831


 

LIFELOC TECHNOLOGIES, INC.

Condensed Statements of Income (Unaudited)






Three Months Ended March 31,

REVENUES:


2022



2021


Product sales

$

2,111,757


$

1,775,447


Royalties


26,640



12,564


Rental income


22,239



21,532


Total


2,160,636



1,809,543








COST OF SALES


1,318,747



985,666








GROSS PROFIT


841,889



823,877








OPERATING EXPENSES:







Research and development


390,024



307,212


Sales and marketing


276,637



230,478


General and administrative


352,833



350,120


Total


1,019,494



887,810








OPERATING INCOME (LOSS)


(177,605)



(63,933)








OTHER INCOME (EXPENSE):







Forgiveness of Paycheck Protection loan


0



465,097


Interest income


432



499


Interest expense


(10,910)



(13,517)


Total 


(10,478)



452,079








NET INCOME (LOSS) BEFORE PROVISION FOR TAXES


(188,083)



388,146








BENEFIT FROM (PROVISION FOR) FEDERAL AND STATE INCOME TAXES

43,575



15,325








NET INCOME (LOSS)

$

(144,508)


$

403,471








NET INCOME (LOSS) PER SHARE, BASIC

$

(0.06)


$

0.16








NET INCOME (LOSS) PER SHARE, DILUTED

$

(0.06)


$

0.16








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,



2022


2021

Total stockholders' equity, beginning balances

$

6,593,766


$

5,900,642








Common stock (no shares issued during periods):







Beginning balances


4,650,812



4,633,655


Stock based compensation expense related







 to stock options


17,202



17,157


Ending balances


4,668,014



4,650,812








Retained earnings:







Beginning balances


1,942,954



1,266,987


Net income (loss)


(144,508)



403,471


Ending balances


1,798,446



1,670,458








Total stockholders' equity, ending balances

$

6,466,460


$

6,321,270

 

LIFELOC TECHNOLOGIES, INC.

Condensed Statements of Cash Flows (Unaudited)












Three Months Ended March 31,

CASH FLOWS FROM OPERATING ACTIVITIES:

2022


2021


Net income (loss)

$

(144,508)


$

403,471


Adjustments to reconcile net income (loss) to net cash







 provided from (used in) operating activities-








Forgiveness of Paycheck Protection loan (round 1)


-



(465,097)


   Depreciation and amortization


129,088



66,828


   Provision for inventory obsolescence, net change


34,789



-


   Deferred taxes, net change


(43,575)



(1,441)


   Stock based compensation expense related to







     stock options


17,202



17,157


Changes in operating assets and liabilities-







   Accounts receivable


(236,656)



(169,622)


   Inventories 


119,888



(82,022)


   Income taxes receivable 


-



(13,884)


   Prepaid expenses and other 


(110,109)



(20,606)


   Accounts payable 


(150,462)



21,968


   Customer deposits 


(4,852)



6,170


   Accrued expenses 


(143,231)



(102,547)


   Deferred revenue 


2,912



2,249



           Net cash provided from (used in)








            operating activities


(529,514)



(337,376)









CASH FLOWS FROM INVESTING ACTIVITIES:







Purchases of property and equipment


(10,800)



-



           Net cash (used in) investing activities


(10,800)



-









CASH FLOWS FROM FINANCING ACTIVITIES:







Proceeds from Paycheck Protection loan (round 2)


-



471,347


Principal payments made on term loan


(12,526)



(12,006)



           Net cash provided from (used in) financing








            activities


(12,526)



459,341









NET INCREASE (DECREASE) IN CASH


(552,840)



121,965









CASH, BEGINNING OF PERIOD


2,571,668



2,195,070









CASH, END OF PERIOD

$

2,018,828


$

2,317,035









SUPPLEMENTAL INFORMATION:







Cash paid for interest

$

9,834


$

13,246

 

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SOURCE Lifeloc Technologies


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