Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Lifeloc Reports Third Quarter 2022 Results By: ACCESSWIRE November 10, 2022 at 17:18 PM EST WHEAT RIDGE, CO / ACCESSWIRE / November 10, 2022 / 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 third quarter ended September 30, 2022. Third Quarter Financial Highlights Lifeloc posted quarterly net revenue of $2.032 million in the third quarter of 2022, resulting in a quarterly net loss of $(87) thousand, or $(0.04) per diluted share. These results compare to net revenue of $1.887 million and quarterly net profit of $523 thousand, or $0.21 per diluted share in the third quarter of 2021. The income for the third quarter of 2021 includes the benefit from the forgiveness of the second round SBA Paycheck Protection Program (PPP) loan of $471 thousand. Revenue for the quarter increased 8% versus the third quarter last year, as demand continued to recover from the impact of the COVID-19 global pandemic and the government ordered shutdowns. Nine-month net revenue of $6.373 million and a net loss of $(433) thousand, or $(0.18) per diluted share, compared to net revenue of $5.427 million and a net profit of $816 thousand, or $0.33 per diluted share, for the same nine months of 2021. The income for the first nine months of 2021 includes the benefit from the forgiveness of both rounds of the SBA Paycheck Protection Program (PPP) loan of $936 thousand. Increasing research and development investment as well as supply chain disruption contributed to the net loss in this quarter despite increased revenue. Supply chain delays have added some costs, and component inflation has added more. The company implemented a broad price increase during the second quarter in response to rising costs. New platform LX9 and LT7 devices are producing strong sales growth. The L-series devices feature a high-resolution color 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. Based on our experience to date, 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. 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 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, emergency rooms, forensic labs and in workplace testing to get a rapid and quantitative measure for a panel of drugs of abuse, beginning with a device that allows for detection of delta-9-THC (the major intoxicating component of the cannabis plant) from a test subject's saliva. Testing has commenced to validate the SpinDx technology against the definitive standard liquid chromatography-mass spectroscopy (LCMS) measurement utilizing human samples. The human saliva SpinDx results are showing good correlation to the LCMS data. We are also developing a device based on our recently updated LX9 breathalyzer that, when coupled with the SpinDx technology, will be our marijuana breathalyzer system. In anticipation of possible SpinDx supply chain delays, we've already begun purchasing small quantities of components ahead of the initial production builds. Our R.A.D.A.R.® 200 device has been introduced to the market, and the market feedback is that the device needs a few additional specific upgrades to gain widespread acceptance. The R.A.D.A.R. device promises to address a critical and valuable market need for self-administered alcohol monitoring. Lifeloc had formed a subsidiary, Probation Tracker Inc. (PTI), in preparation for a spinoff of the R.A.D.A.R. technology into a new entity devoted to engaging in the required additional developmental upgrades. Anticipating delays with the SEC on the registration of the PTI shares, we withdrew the registration, cancelled the planned spinoff and instead have engaged a consultant to outsource the remaining R.A.D.A.R. development. We have chosen this outsourcing route so that our internal research and development team can keep its primary focus on SpinDx commercialization. "We have overcome a number of challenges over the last few years from pandemic and supply chain delays to labor tightness and inflation," commented Dr. Wayne Willkomm, President and CEO. "We are well positioned for the future, with the new L-series devices opening new opportunities and resulting in a growing revenue contribution as well as the product pipeline built on the SpinDx product platform. We expect research and development expenses to remain high in this push to complete the first of many products on the SpinDx platform, but we are choosing to prioritize substantial value creation over short-term profitability. We are excited to see positive results from the human samples in the SpinDx testing and look forward to getting these products released." 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, performance, expectations about new and existing products, market demand, economic conditions, 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. R.A.D.A.R.® is a registered trademark 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 September 30, 2022 December 31, 2021 CURRENT ASSETS: (Unaudited) Cash $ 2,124,531 $ 2,571,668 Accounts receivable, net 658,322 562,092 Inventories, net 2,694,957 2,668,789 Prepaid expenses and other 115,938 56,897 Total current assets 5,593,748 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 1,149,855 958,785 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 (2,898,763 ) (2,518,966 ) Total property and equipment, net 2,410,101 2,588,028 OTHER ASSETS: Patents, net 80,591 134,428 Deposits and other 500 163,480 Deferred taxes 345,228 204,449 Total other assets 426,319 502,357 Total assets $ 8,430,168 $ 8,949,831 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 442,855 $ 445,985 Term loan payable, current portion 49,645 48,513 Customer deposits 180,560 170,952 Accrued expenses 234,613 298,530 Deferred revenue, current portion 58,173 71,604 Reserve for warranty expense 46,500 46,500 Total current liabilities 1,012,346 1,082,084 TERM LOAN PAYABLE, net of current portion and debt issuance costs 1,231,790 1,267,551 DEFERRED REVENUE, net of current portion 8,074 6,430 Total liabilities 2,252,210 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 1,509,944 1,942,954 Total stockholders' equity 6,177,958 6,593,766 Total liabilities and stockholders' equity $ 8,430,168 $ 8,949,831 LIFELOC TECHNOLOGIES, INC.Condensed Statements of Income (Unaudited) Three Months Ended September 30, REVENUES: 2022 2021 Product sales $ 6,264,222 $ 5,304,800 Royalties 40,437 56,157 Rental income 67,867 65,710 Total 6,372,526 5,426,667 COST OF SALES 4,099,087 3,063,321 GROSS PROFIT 2,273,439 2,363,346 OPERATING EXPENSES: Research and development 1,056,026 873,498 Sales and marketing 821,821 751,266 General and administrative 943,060 852,998 Total 2,820,907 2,477,762 OPERATING INCOME (LOSS) (547,468 ) (114,416 ) OTHER INCOME (EXPENSE): Forgiveness of Paycheck Protection loan - 936,444 Interest income 6,130 2,659 Interest expense (32,451 ) (40,629 ) Total (26,321 ) 898,474 NET INCOME BEFORE PROVISION FOR TAXES (573,789 ) 784,058 BENEFIT FROM (PROVISION FOR) FEDERAL AND STATE INCOME TAXES 140,779 32,361 NET INCOME $ (433,010 ) $ 816,419 NET INCOME PER SHARE, BASIC $ (0.18 ) $ 0.33 NET INCOME PER SHARE, DILUTED $ (0.18 ) $ 0.33 WEIGHTED AVERAGE SHARES, BASIC 2,454,116 2,454,116 WEIGHTED AVERAGE SHARES, DILUTED 2,454,116 2,501,034 LIFELOC TECHNOLOGIES, INC.Condensed Statements of Income (Unaudited) Nine Months Ended September 30, REVENUES: 2022 2021 Product sales $ 6,264,222 $ 5,304,800 Royalties 40,437 56,157 Rental income 67,867 65,710 Total 6,372,526 5,426,667 COST OF SALES 4,099,087 3,063,321 GROSS PROFIT 2,273,439 2,363,346 OPERATING EXPENSES: Research and development 1,056,026 873,498 Sales and marketing 821,821 751,266 General and administrative 943,060 852,998 Total 2,820,907 2,477,762 OPERATING INCOME (LOSS) (547,468 ) (114,416 ) OTHER INCOME (EXPENSE): Forgiveness of Paycheck Protection loan - 936,444 Interest income 6,130 2,659 Interest expense (32,451 ) (40,629 ) Total (26,321 ) 898,474 NET INCOME (LOSS) BEFORE PROVISION FOR TAXES (573,789 ) 784,058 BENEFIT FROM (PROVISION FOR) FEDERAL AND STATE INCOME TAXES 140,779 32,361 NET INCOME (LOSS) $ (433,010 ) $ 816,419 NET INCOME (LOSS) PER SHARE, BASIC $ (0.18 ) $ 0.33 NET INCOME (LOSS) PER SHARE, DILUTED $ (0.18 ) $ 0.33 WEIGHTED AVERAGE SHARES, BASIC 2,454,116 2,454,116 WEIGHTED AVERAGE SHARES, DILUTED 2,454,116 2,493,492 Lifeloc Technologies, Inc.Condensed Statements of Stockholders' Equity (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Total stockholders' equity, beginning balances $ 6,264,930 $ 6,211,558 $ 6,593,766 $ 5,900,642 Common stock (no shares issued during periods): Beginning balances 4,668,014 4,650,812 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 4,668,014 4,650,812 Retained earnings: Beginning balances 1,596,916 1,560,746 1,942,954 1,266,987 Net income (loss) (86,972 ) 522,660 (433,010 ) 816,419 Ending balances 1,509,944 2,083,406 1,509,944 2,083,406 Total stockholders' equity, ending balances $ 6,177,958 $ 6,734,218 $ 6,177,958 $ 6,734,218 LIFELOC TECHNOLOGIES, INC.Condensed Statements of Cash Flows (Unaudited) Nine Months Ended September 30, CASH FLOWS FROM OPERATING ACTIVITIES: 2022 2021 Net income (loss) $ (433,010 ) $ 816,419 Adjustments to reconcile net income to net cash provided from (used in) operating activities- Forgiveness of Paycheck Protection loans - (936,444 ) Depreciation and amortization 438,549 206,222 Provision for doubtful accounts, net change - (49,000 ) Provision for inventory obsolescence, net change 154,367 (5,000 ) Deferred taxes, net change (140,779 ) 12,927 Reserve for warranty expense, net change - - Stock based compensation expense related to stock options 17,202 17,157 Changes in operating assets and liabilities- Accounts receivable (96,230 ) (27,465 ) Inventories (180,535 ) (82,991 ) Income taxes receivable - 175,369 Prepaid expenses and other (59,041 ) (11,430 ) Deposits and other 162,980 1,318 Accounts payable (3,130 ) (103,279 ) Customer deposits 9,608 3,080 Accrued expenses (63,917 ) (71,780 ) Deferred revenue (11,787 ) 6,458 Net cash provided from (used in) operating activities (205,723 ) (48,439 ) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (201,870 ) (64,254 ) Patent filing expense (1,687 ) (661 ) Net cash (used in) investing activities (203,557 ) (64,915 ) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments made on term loan (37,857 ) (1,328,625 ) Proceeds from refinancing term loan - 1,350,000 Cost of refinancing term loan - (18,156 ) Proceeds from Paycheck Protection loan (round 2) - 471,347 Net cash provided from (used in) financing activities (37,857 ) 474,566 NET INCREASE (DECREASE) IN CASH (447,137 ) 361,212 CASH, BEGINNING OF PERIOD 2,571,668 2,195,070 CASH, END OF PERIOD $ 2,124,531 $ 2,556,282 SUPPLEMENTAL INFORMATION: Cash paid for interest $ 29,223 $ 39,815 Cash paid for income tax $ - $ - SOURCE: Lifeloc Technologies, Inc. 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Lifeloc Reports Third Quarter 2022 Results By: ACCESSWIRE November 10, 2022 at 17:18 PM EST WHEAT RIDGE, CO / ACCESSWIRE / November 10, 2022 / 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 third quarter ended September 30, 2022. Third Quarter Financial Highlights Lifeloc posted quarterly net revenue of $2.032 million in the third quarter of 2022, resulting in a quarterly net loss of $(87) thousand, or $(0.04) per diluted share. These results compare to net revenue of $1.887 million and quarterly net profit of $523 thousand, or $0.21 per diluted share in the third quarter of 2021. The income for the third quarter of 2021 includes the benefit from the forgiveness of the second round SBA Paycheck Protection Program (PPP) loan of $471 thousand. Revenue for the quarter increased 8% versus the third quarter last year, as demand continued to recover from the impact of the COVID-19 global pandemic and the government ordered shutdowns. Nine-month net revenue of $6.373 million and a net loss of $(433) thousand, or $(0.18) per diluted share, compared to net revenue of $5.427 million and a net profit of $816 thousand, or $0.33 per diluted share, for the same nine months of 2021. The income for the first nine months of 2021 includes the benefit from the forgiveness of both rounds of the SBA Paycheck Protection Program (PPP) loan of $936 thousand. Increasing research and development investment as well as supply chain disruption contributed to the net loss in this quarter despite increased revenue. Supply chain delays have added some costs, and component inflation has added more. The company implemented a broad price increase during the second quarter in response to rising costs. New platform LX9 and LT7 devices are producing strong sales growth. The L-series devices feature a high-resolution color 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. Based on our experience to date, 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. 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 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, emergency rooms, forensic labs and in workplace testing to get a rapid and quantitative measure for a panel of drugs of abuse, beginning with a device that allows for detection of delta-9-THC (the major intoxicating component of the cannabis plant) from a test subject's saliva. Testing has commenced to validate the SpinDx technology against the definitive standard liquid chromatography-mass spectroscopy (LCMS) measurement utilizing human samples. The human saliva SpinDx results are showing good correlation to the LCMS data. We are also developing a device based on our recently updated LX9 breathalyzer that, when coupled with the SpinDx technology, will be our marijuana breathalyzer system. In anticipation of possible SpinDx supply chain delays, we've already begun purchasing small quantities of components ahead of the initial production builds. Our R.A.D.A.R.® 200 device has been introduced to the market, and the market feedback is that the device needs a few additional specific upgrades to gain widespread acceptance. The R.A.D.A.R. device promises to address a critical and valuable market need for self-administered alcohol monitoring. Lifeloc had formed a subsidiary, Probation Tracker Inc. (PTI), in preparation for a spinoff of the R.A.D.A.R. technology into a new entity devoted to engaging in the required additional developmental upgrades. Anticipating delays with the SEC on the registration of the PTI shares, we withdrew the registration, cancelled the planned spinoff and instead have engaged a consultant to outsource the remaining R.A.D.A.R. development. We have chosen this outsourcing route so that our internal research and development team can keep its primary focus on SpinDx commercialization. "We have overcome a number of challenges over the last few years from pandemic and supply chain delays to labor tightness and inflation," commented Dr. Wayne Willkomm, President and CEO. "We are well positioned for the future, with the new L-series devices opening new opportunities and resulting in a growing revenue contribution as well as the product pipeline built on the SpinDx product platform. We expect research and development expenses to remain high in this push to complete the first of many products on the SpinDx platform, but we are choosing to prioritize substantial value creation over short-term profitability. We are excited to see positive results from the human samples in the SpinDx testing and look forward to getting these products released." 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, performance, expectations about new and existing products, market demand, economic conditions, 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. R.A.D.A.R.® is a registered trademark 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 September 30, 2022 December 31, 2021 CURRENT ASSETS: (Unaudited) Cash $ 2,124,531 $ 2,571,668 Accounts receivable, net 658,322 562,092 Inventories, net 2,694,957 2,668,789 Prepaid expenses and other 115,938 56,897 Total current assets 5,593,748 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 1,149,855 958,785 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 (2,898,763 ) (2,518,966 ) Total property and equipment, net 2,410,101 2,588,028 OTHER ASSETS: Patents, net 80,591 134,428 Deposits and other 500 163,480 Deferred taxes 345,228 204,449 Total other assets 426,319 502,357 Total assets $ 8,430,168 $ 8,949,831 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 442,855 $ 445,985 Term loan payable, current portion 49,645 48,513 Customer deposits 180,560 170,952 Accrued expenses 234,613 298,530 Deferred revenue, current portion 58,173 71,604 Reserve for warranty expense 46,500 46,500 Total current liabilities 1,012,346 1,082,084 TERM LOAN PAYABLE, net of current portion and debt issuance costs 1,231,790 1,267,551 DEFERRED REVENUE, net of current portion 8,074 6,430 Total liabilities 2,252,210 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 1,509,944 1,942,954 Total stockholders' equity 6,177,958 6,593,766 Total liabilities and stockholders' equity $ 8,430,168 $ 8,949,831 LIFELOC TECHNOLOGIES, INC.Condensed Statements of Income (Unaudited) Three Months Ended September 30, REVENUES: 2022 2021 Product sales $ 6,264,222 $ 5,304,800 Royalties 40,437 56,157 Rental income 67,867 65,710 Total 6,372,526 5,426,667 COST OF SALES 4,099,087 3,063,321 GROSS PROFIT 2,273,439 2,363,346 OPERATING EXPENSES: Research and development 1,056,026 873,498 Sales and marketing 821,821 751,266 General and administrative 943,060 852,998 Total 2,820,907 2,477,762 OPERATING INCOME (LOSS) (547,468 ) (114,416 ) OTHER INCOME (EXPENSE): Forgiveness of Paycheck Protection loan - 936,444 Interest income 6,130 2,659 Interest expense (32,451 ) (40,629 ) Total (26,321 ) 898,474 NET INCOME BEFORE PROVISION FOR TAXES (573,789 ) 784,058 BENEFIT FROM (PROVISION FOR) FEDERAL AND STATE INCOME TAXES 140,779 32,361 NET INCOME $ (433,010 ) $ 816,419 NET INCOME PER SHARE, BASIC $ (0.18 ) $ 0.33 NET INCOME PER SHARE, DILUTED $ (0.18 ) $ 0.33 WEIGHTED AVERAGE SHARES, BASIC 2,454,116 2,454,116 WEIGHTED AVERAGE SHARES, DILUTED 2,454,116 2,501,034 LIFELOC TECHNOLOGIES, INC.Condensed Statements of Income (Unaudited) Nine Months Ended September 30, REVENUES: 2022 2021 Product sales $ 6,264,222 $ 5,304,800 Royalties 40,437 56,157 Rental income 67,867 65,710 Total 6,372,526 5,426,667 COST OF SALES 4,099,087 3,063,321 GROSS PROFIT 2,273,439 2,363,346 OPERATING EXPENSES: Research and development 1,056,026 873,498 Sales and marketing 821,821 751,266 General and administrative 943,060 852,998 Total 2,820,907 2,477,762 OPERATING INCOME (LOSS) (547,468 ) (114,416 ) OTHER INCOME (EXPENSE): Forgiveness of Paycheck Protection loan - 936,444 Interest income 6,130 2,659 Interest expense (32,451 ) (40,629 ) Total (26,321 ) 898,474 NET INCOME (LOSS) BEFORE PROVISION FOR TAXES (573,789 ) 784,058 BENEFIT FROM (PROVISION FOR) FEDERAL AND STATE INCOME TAXES 140,779 32,361 NET INCOME (LOSS) $ (433,010 ) $ 816,419 NET INCOME (LOSS) PER SHARE, BASIC $ (0.18 ) $ 0.33 NET INCOME (LOSS) PER SHARE, DILUTED $ (0.18 ) $ 0.33 WEIGHTED AVERAGE SHARES, BASIC 2,454,116 2,454,116 WEIGHTED AVERAGE SHARES, DILUTED 2,454,116 2,493,492 Lifeloc Technologies, Inc.Condensed Statements of Stockholders' Equity (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Total stockholders' equity, beginning balances $ 6,264,930 $ 6,211,558 $ 6,593,766 $ 5,900,642 Common stock (no shares issued during periods): Beginning balances 4,668,014 4,650,812 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 4,668,014 4,650,812 Retained earnings: Beginning balances 1,596,916 1,560,746 1,942,954 1,266,987 Net income (loss) (86,972 ) 522,660 (433,010 ) 816,419 Ending balances 1,509,944 2,083,406 1,509,944 2,083,406 Total stockholders' equity, ending balances $ 6,177,958 $ 6,734,218 $ 6,177,958 $ 6,734,218 LIFELOC TECHNOLOGIES, INC.Condensed Statements of Cash Flows (Unaudited) Nine Months Ended September 30, CASH FLOWS FROM OPERATING ACTIVITIES: 2022 2021 Net income (loss) $ (433,010 ) $ 816,419 Adjustments to reconcile net income to net cash provided from (used in) operating activities- Forgiveness of Paycheck Protection loans - (936,444 ) Depreciation and amortization 438,549 206,222 Provision for doubtful accounts, net change - (49,000 ) Provision for inventory obsolescence, net change 154,367 (5,000 ) Deferred taxes, net change (140,779 ) 12,927 Reserve for warranty expense, net change - - Stock based compensation expense related to stock options 17,202 17,157 Changes in operating assets and liabilities- Accounts receivable (96,230 ) (27,465 ) Inventories (180,535 ) (82,991 ) Income taxes receivable - 175,369 Prepaid expenses and other (59,041 ) (11,430 ) Deposits and other 162,980 1,318 Accounts payable (3,130 ) (103,279 ) Customer deposits 9,608 3,080 Accrued expenses (63,917 ) (71,780 ) Deferred revenue (11,787 ) 6,458 Net cash provided from (used in) operating activities (205,723 ) (48,439 ) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (201,870 ) (64,254 ) Patent filing expense (1,687 ) (661 ) Net cash (used in) investing activities (203,557 ) (64,915 ) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments made on term loan (37,857 ) (1,328,625 ) Proceeds from refinancing term loan - 1,350,000 Cost of refinancing term loan - (18,156 ) Proceeds from Paycheck Protection loan (round 2) - 471,347 Net cash provided from (used in) financing activities (37,857 ) 474,566 NET INCREASE (DECREASE) IN CASH (447,137 ) 361,212 CASH, BEGINNING OF PERIOD 2,571,668 2,195,070 CASH, END OF PERIOD $ 2,124,531 $ 2,556,282 SUPPLEMENTAL INFORMATION: Cash paid for interest $ 29,223 $ 39,815 Cash paid for income tax $ - $ - SOURCE: Lifeloc Technologies, Inc. View source version on accesswire.com: https://www.accesswire.com/725092/Lifeloc-Reports-Third-Quarter-2022-Results
WHEAT RIDGE, CO / ACCESSWIRE / November 10, 2022 / 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 third quarter ended September 30, 2022. Third Quarter Financial Highlights Lifeloc posted quarterly net revenue of $2.032 million in the third quarter of 2022, resulting in a quarterly net loss of $(87) thousand, or $(0.04) per diluted share. These results compare to net revenue of $1.887 million and quarterly net profit of $523 thousand, or $0.21 per diluted share in the third quarter of 2021. The income for the third quarter of 2021 includes the benefit from the forgiveness of the second round SBA Paycheck Protection Program (PPP) loan of $471 thousand. Revenue for the quarter increased 8% versus the third quarter last year, as demand continued to recover from the impact of the COVID-19 global pandemic and the government ordered shutdowns. Nine-month net revenue of $6.373 million and a net loss of $(433) thousand, or $(0.18) per diluted share, compared to net revenue of $5.427 million and a net profit of $816 thousand, or $0.33 per diluted share, for the same nine months of 2021. The income for the first nine months of 2021 includes the benefit from the forgiveness of both rounds of the SBA Paycheck Protection Program (PPP) loan of $936 thousand. Increasing research and development investment as well as supply chain disruption contributed to the net loss in this quarter despite increased revenue. Supply chain delays have added some costs, and component inflation has added more. The company implemented a broad price increase during the second quarter in response to rising costs. New platform LX9 and LT7 devices are producing strong sales growth. The L-series devices feature a high-resolution color 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. Based on our experience to date, 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. 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 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, emergency rooms, forensic labs and in workplace testing to get a rapid and quantitative measure for a panel of drugs of abuse, beginning with a device that allows for detection of delta-9-THC (the major intoxicating component of the cannabis plant) from a test subject's saliva. Testing has commenced to validate the SpinDx technology against the definitive standard liquid chromatography-mass spectroscopy (LCMS) measurement utilizing human samples. The human saliva SpinDx results are showing good correlation to the LCMS data. We are also developing a device based on our recently updated LX9 breathalyzer that, when coupled with the SpinDx technology, will be our marijuana breathalyzer system. In anticipation of possible SpinDx supply chain delays, we've already begun purchasing small quantities of components ahead of the initial production builds. Our R.A.D.A.R.® 200 device has been introduced to the market, and the market feedback is that the device needs a few additional specific upgrades to gain widespread acceptance. The R.A.D.A.R. device promises to address a critical and valuable market need for self-administered alcohol monitoring. Lifeloc had formed a subsidiary, Probation Tracker Inc. (PTI), in preparation for a spinoff of the R.A.D.A.R. technology into a new entity devoted to engaging in the required additional developmental upgrades. Anticipating delays with the SEC on the registration of the PTI shares, we withdrew the registration, cancelled the planned spinoff and instead have engaged a consultant to outsource the remaining R.A.D.A.R. development. We have chosen this outsourcing route so that our internal research and development team can keep its primary focus on SpinDx commercialization. "We have overcome a number of challenges over the last few years from pandemic and supply chain delays to labor tightness and inflation," commented Dr. Wayne Willkomm, President and CEO. "We are well positioned for the future, with the new L-series devices opening new opportunities and resulting in a growing revenue contribution as well as the product pipeline built on the SpinDx product platform. We expect research and development expenses to remain high in this push to complete the first of many products on the SpinDx platform, but we are choosing to prioritize substantial value creation over short-term profitability. We are excited to see positive results from the human samples in the SpinDx testing and look forward to getting these products released." 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, performance, expectations about new and existing products, market demand, economic conditions, 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. R.A.D.A.R.® is a registered trademark 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 September 30, 2022 December 31, 2021 CURRENT ASSETS: (Unaudited) Cash $ 2,124,531 $ 2,571,668 Accounts receivable, net 658,322 562,092 Inventories, net 2,694,957 2,668,789 Prepaid expenses and other 115,938 56,897 Total current assets 5,593,748 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 1,149,855 958,785 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 (2,898,763 ) (2,518,966 ) Total property and equipment, net 2,410,101 2,588,028 OTHER ASSETS: Patents, net 80,591 134,428 Deposits and other 500 163,480 Deferred taxes 345,228 204,449 Total other assets 426,319 502,357 Total assets $ 8,430,168 $ 8,949,831 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 442,855 $ 445,985 Term loan payable, current portion 49,645 48,513 Customer deposits 180,560 170,952 Accrued expenses 234,613 298,530 Deferred revenue, current portion 58,173 71,604 Reserve for warranty expense 46,500 46,500 Total current liabilities 1,012,346 1,082,084 TERM LOAN PAYABLE, net of current portion and debt issuance costs 1,231,790 1,267,551 DEFERRED REVENUE, net of current portion 8,074 6,430 Total liabilities 2,252,210 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 1,509,944 1,942,954 Total stockholders' equity 6,177,958 6,593,766 Total liabilities and stockholders' equity $ 8,430,168 $ 8,949,831 LIFELOC TECHNOLOGIES, INC.Condensed Statements of Income (Unaudited) Three Months Ended September 30, REVENUES: 2022 2021 Product sales $ 6,264,222 $ 5,304,800 Royalties 40,437 56,157 Rental income 67,867 65,710 Total 6,372,526 5,426,667 COST OF SALES 4,099,087 3,063,321 GROSS PROFIT 2,273,439 2,363,346 OPERATING EXPENSES: Research and development 1,056,026 873,498 Sales and marketing 821,821 751,266 General and administrative 943,060 852,998 Total 2,820,907 2,477,762 OPERATING INCOME (LOSS) (547,468 ) (114,416 ) OTHER INCOME (EXPENSE): Forgiveness of Paycheck Protection loan - 936,444 Interest income 6,130 2,659 Interest expense (32,451 ) (40,629 ) Total (26,321 ) 898,474 NET INCOME BEFORE PROVISION FOR TAXES (573,789 ) 784,058 BENEFIT FROM (PROVISION FOR) FEDERAL AND STATE INCOME TAXES 140,779 32,361 NET INCOME $ (433,010 ) $ 816,419 NET INCOME PER SHARE, BASIC $ (0.18 ) $ 0.33 NET INCOME PER SHARE, DILUTED $ (0.18 ) $ 0.33 WEIGHTED AVERAGE SHARES, BASIC 2,454,116 2,454,116 WEIGHTED AVERAGE SHARES, DILUTED 2,454,116 2,501,034 LIFELOC TECHNOLOGIES, INC.Condensed Statements of Income (Unaudited) Nine Months Ended September 30, REVENUES: 2022 2021 Product sales $ 6,264,222 $ 5,304,800 Royalties 40,437 56,157 Rental income 67,867 65,710 Total 6,372,526 5,426,667 COST OF SALES 4,099,087 3,063,321 GROSS PROFIT 2,273,439 2,363,346 OPERATING EXPENSES: Research and development 1,056,026 873,498 Sales and marketing 821,821 751,266 General and administrative 943,060 852,998 Total 2,820,907 2,477,762 OPERATING INCOME (LOSS) (547,468 ) (114,416 ) OTHER INCOME (EXPENSE): Forgiveness of Paycheck Protection loan - 936,444 Interest income 6,130 2,659 Interest expense (32,451 ) (40,629 ) Total (26,321 ) 898,474 NET INCOME (LOSS) BEFORE PROVISION FOR TAXES (573,789 ) 784,058 BENEFIT FROM (PROVISION FOR) FEDERAL AND STATE INCOME TAXES 140,779 32,361 NET INCOME (LOSS) $ (433,010 ) $ 816,419 NET INCOME (LOSS) PER SHARE, BASIC $ (0.18 ) $ 0.33 NET INCOME (LOSS) PER SHARE, DILUTED $ (0.18 ) $ 0.33 WEIGHTED AVERAGE SHARES, BASIC 2,454,116 2,454,116 WEIGHTED AVERAGE SHARES, DILUTED 2,454,116 2,493,492 Lifeloc Technologies, Inc.Condensed Statements of Stockholders' Equity (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Total stockholders' equity, beginning balances $ 6,264,930 $ 6,211,558 $ 6,593,766 $ 5,900,642 Common stock (no shares issued during periods): Beginning balances 4,668,014 4,650,812 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 4,668,014 4,650,812 Retained earnings: Beginning balances 1,596,916 1,560,746 1,942,954 1,266,987 Net income (loss) (86,972 ) 522,660 (433,010 ) 816,419 Ending balances 1,509,944 2,083,406 1,509,944 2,083,406 Total stockholders' equity, ending balances $ 6,177,958 $ 6,734,218 $ 6,177,958 $ 6,734,218 LIFELOC TECHNOLOGIES, INC.Condensed Statements of Cash Flows (Unaudited) Nine Months Ended September 30, CASH FLOWS FROM OPERATING ACTIVITIES: 2022 2021 Net income (loss) $ (433,010 ) $ 816,419 Adjustments to reconcile net income to net cash provided from (used in) operating activities- Forgiveness of Paycheck Protection loans - (936,444 ) Depreciation and amortization 438,549 206,222 Provision for doubtful accounts, net change - (49,000 ) Provision for inventory obsolescence, net change 154,367 (5,000 ) Deferred taxes, net change (140,779 ) 12,927 Reserve for warranty expense, net change - - Stock based compensation expense related to stock options 17,202 17,157 Changes in operating assets and liabilities- Accounts receivable (96,230 ) (27,465 ) Inventories (180,535 ) (82,991 ) Income taxes receivable - 175,369 Prepaid expenses and other (59,041 ) (11,430 ) Deposits and other 162,980 1,318 Accounts payable (3,130 ) (103,279 ) Customer deposits 9,608 3,080 Accrued expenses (63,917 ) (71,780 ) Deferred revenue (11,787 ) 6,458 Net cash provided from (used in) operating activities (205,723 ) (48,439 ) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (201,870 ) (64,254 ) Patent filing expense (1,687 ) (661 ) Net cash (used in) investing activities (203,557 ) (64,915 ) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments made on term loan (37,857 ) (1,328,625 ) Proceeds from refinancing term loan - 1,350,000 Cost of refinancing term loan - (18,156 ) Proceeds from Paycheck Protection loan (round 2) - 471,347 Net cash provided from (used in) financing activities (37,857 ) 474,566 NET INCREASE (DECREASE) IN CASH (447,137 ) 361,212 CASH, BEGINNING OF PERIOD 2,571,668 2,195,070 CASH, END OF PERIOD $ 2,124,531 $ 2,556,282 SUPPLEMENTAL INFORMATION: Cash paid for interest $ 29,223 $ 39,815 Cash paid for income tax $ - $ - SOURCE: Lifeloc Technologies, Inc. View source version on accesswire.com: https://www.accesswire.com/725092/Lifeloc-Reports-Third-Quarter-2022-Results
