Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Lifeloc Reports Third Quarter 2023 Results By: ACCESSWIRE November 08, 2023 at 16:23 PM EST WHEAT RIDGE, CO / ACCESSWIRE / November 8, 2023 / 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 quarter ended September 30, 2023. Third Quarter Financial Highlights Lifeloc posted quarterly net revenue of $2.696 million in the third quarter of 2023, resulting in a quarterly net profit of $110 thousand, or $0.04 per diluted share. These results compare to net revenue of $2.032 million and quarterly net loss of $(87) thousand, or $(0.04) per diluted share in the third quarter of 2022. Revenue for the quarter increased 33% versus the third quarter last year, as demand grows. Nine-month net revenues of $7.140 million and a net profit of $111 thousand, or $0.05 per diluted share, compared to net revenue of $6.373 million and a net loss of $(433) thousand, or $(0.18) per diluted share, for the same nine months of 2022. Total gross margin in the third quarter improved to 41.5% versus 37.8% for the same quarter last year. For the first nine months of 2023 gross margin was 43.4% versus 35.7% for the same period last year. The gross margin improvement over last year resulted from a combination of price increases, lower depreciation, and increased efficiencies resulting from a lessening of supply constraints. The margin improvement along with the sales increase was more than sufficient to offset a 65% increase in research and development investment and still result in a profitable third quarter. We believe our core alcohol detection product line-up is strong. The newer platforms LX9 and LT7 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. We expect that most L-series sales 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 favored in many law enforcement and international organizations. Our Easycal® automated calibration station builds important protection around our brand with the only automated calibration available for portable breath alcohol testers 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 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 drugs, which currently includes cocaine, amphetamines, and fentanyl. 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 release of our SpinDx saliva testing system for beta testing utilizing the delta-9-THC disks is expected early in 2024 and is projected to result in commercialization in later 2024. We expect to accelerate development by combining our LX9 breathalyzer with the THC SpinDx detection unit, to produce our roadside marijuana breathalyzer system. "In the third quarter, supply chain constraints have been significantly relieved. As a result, our production backlog has been satisfied during the quarter. We are optimistic that supply will no longer be a significant constraint to our normal order flow," commented Dr. Wayne Willkomm, President and CEO. "Product is again flowing normally, and so our full attention is pushing the SpinDx product platform across the finish line to commercialization. We anticipate that our research and development expenses will continue to rise in this final push." 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. Phoenix® and Easycal® 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 CURRENT ASSETS: September 30, 2023 (Unaudited) December 31, 2022 Cash $ 2,136,873 $ 2,352,754 Accounts receivable, net 709,307 627,919 Inventories, net 2,912,406 2,732,463 Employee retention credit receivable - 107,575 Prepaid expenses and other 265,352 58,203 Total current assets 6,023,938 5,878,914 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 1,169,603 1,147,992 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 480,684 480,684 Less accumulated depreciation (3,263,200 ) (3,072,961 ) Total property and equipment, net 2,078,611 2,247,239 OTHER ASSETS: Patents, net 66,079 69,679 Deposits and other 500 500 Deferred taxes 435,545 321,429 Total other assets 502,124 391,608 Total assets $ 8,604,673 $ 8,517,761 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 501,827 $ 413,957 Term loan payable, current portion 51,194 50,028 Income taxes payable 36,476 - Customer deposits 184,474 201,031 Accrued expenses 262,206 344,944 Deferred revenue, current portion 60,607 80,222 Reserve for warranty expense 46,500 46,500 Total current liabilities 1,143,284 1,136,682 TERM LOAN PAYABLE, net of current portion and debt issuance costs 1,182,751 1,219,677 DEFERRED REVENUE, net of current portion 12,467 6,191 Total liabilities 2,338,502 2,362,550 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 1,598,157 1,487,197 Total stockholders' equity 6,266,171 6,155,211 Total liabilities and stockholders' equity $ 8,604,673 $ 8,517,761 LIFELOC TECHNOLOGIES, INC.Condensed Statements of Income (Unaudited) Three Months Ended September 30, REVENUES: 2023 2022 Product sales $ 2,676,872 $ 2,007,652 Royalties 5,063 1,225 Rental income 13,573 22,989 Total 2,695,508 2,031,866 COST OF SALES 1,576,117 1,263,951 GROSS PROFIT 1,119,391 767,915 OPERATING EXPENSES: Research and development 516,174 313,092 Sales and marketing 309,898 268,515 General and administrative 269,593 296,806 Total 1,095,665 878,413 OPERATING INCOME (LOSS) 23,726 (110,498 ) OTHER INCOME (EXPENSE): Interest income 17,678 4,508 Interest expense (10,494 ) (10,724 ) Total 7,184 (6,216 ) NET INCOME (LOSS) BEFORE PROVISION FOR TAXES 30,910 (116,714 ) BENEFIT FROM FEDERAL AND STATE INCOME TAXES 78,693 29,742 NET INCOME (LOSS) $ 109,603 $ (86,972 ) NET INCOME (LOSS) PER SHARE, BASIC $ 0.04 $ (0.04 ) NET INCOME (LOSS) PER SHARE, DILUTED $ 0.04 $ (0.04 ) 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 Income (Unaudited) Nine Months Ended September 30, REVENUES: 2023 2022 Product sales $ 7,056,638 $ 6,264,222 Royalties 23,419 40,437 Rental income 60,351 67,867 Total 7,140,408 6,372,526 COST OF SALES 4,043,146 4,099,087 GROSS PROFIT 3,097,262 2,273,439 OPERATING EXPENSES: Research and development 1,308,721 1,056,026 Sales and marketing 897,856 821,821 General and administrative 872,724 943,060 Total 3,079,301 2,820,907 OPERATING INCOME (LOSS) 17,961 (547,468 ) OTHER INCOME (EXPENSE): Interest income 46,678 6,130 Interest expense (31,319 ) (32,451 ) Total 15,359 (26,321 ) NET INCOME (LOSS) BEFORE PROVISION FOR TAXES 33,320 (573,789 ) BENEFIT FROM FEDERAL AND STATE INCOME TAXES 77,640 140,779 NET INCOME (LOSS) $ 110,960 $ (433,010 ) NET INCOME (LOSS) PER SHARE, BASIC $ 0.05 $ (0.18 ) NET INCOME (LOSS) PER SHARE, DILUTED $ 0.05 $ (0.18 ) 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Total stockholders' equity, beginning balances $ 6,156,568 $ 6,264,930 $ 6,155,211 $ 6,593,766 Common stock (no shares issued during periods): Beginning balances 4,668,014 4,668,014 4,668,014 4,650,812 Stock based compensation expense related to stock options - - - 17,202 Ending balances 4,668,014 4,668,014 4,668,014 4,668,014 Retained earnings: Beginning balances 1,488,554 1,596,916 1,487,197 1,942,954 Net income (loss) 109,603 (86,972 ) 110,960 (433,010 ) Ending balances 1,598,157 1,509,944 1,598,157 1,509,944 Total stockholders' equity, ending balances $ 6,266,171 $ 6,177,958 $ 6,266,171 $ 6,177,958 LIFELOC TECHNOLOGIES, INC.Condensed Statements of Cash Flows (Unaudited) Nine Months Ended September 30, CASH FLOWS FROM OPERATING ACTIVITIES: 2023 2022 Net income (loss) $ 110,960 $ (433,010 ) Adjustments to reconcile net income to net cash provided from (used in) operating activities- Depreciation and amortization 198,471 438,549 Provision for inventory obsolescence, net change - 154,367 Deferred taxes, net change (114,116 ) (140,779 ) Stock based compensation expense related to stock options - 17,202 Changes in operating assets and liabilities- Accounts receivable (81,388 ) (96,230 ) Inventories (179,943 ) (180,535 ) Employee retention credit and income taxes receivable 107,575 - Prepaid expenses and other (207,149 ) (59,041 ) Deposits and other - 162,980 Accounts payable 87,870 (3,130 ) Income taxes payable 36,476 - Customer deposits (16,557 ) 9,608 Accrued expenses (82,738 ) (63,917 ) Deferred revenue (13,339 ) (11,787 ) Net cash provided from (used in) operating activities (153,878 ) (205,723 ) CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: Purchases of property and equipment (21,611 ) (201,870 ) Patent filing expense (1,404 ) (1,687 ) Net cash (used in) investing activities (23,015 ) (203,557 ) CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: Principal payments made on term loan (38,988 ) (37,857 ) Net cash provided from (used in) financing activities (38,988 ) (37,857 ) NET (DECREASE) IN CASH (215,881 ) (447,137 ) CASH, BEGINNING OF PERIOD 2,352,754 2,571,668 CASH, END OF PERIOD $ 2,136,873 $ 2,124,531 SUPPLEMENTAL INFORMATION: Cash paid for interest $ 28,091 $ 29,223 SOURCE: Lifeloc Technologies, Inc. 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Lifeloc Reports Third Quarter 2023 Results By: ACCESSWIRE November 08, 2023 at 16:23 PM EST WHEAT RIDGE, CO / ACCESSWIRE / November 8, 2023 / 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 quarter ended September 30, 2023. Third Quarter Financial Highlights Lifeloc posted quarterly net revenue of $2.696 million in the third quarter of 2023, resulting in a quarterly net profit of $110 thousand, or $0.04 per diluted share. These results compare to net revenue of $2.032 million and quarterly net loss of $(87) thousand, or $(0.04) per diluted share in the third quarter of 2022. Revenue for the quarter increased 33% versus the third quarter last year, as demand grows. Nine-month net revenues of $7.140 million and a net profit of $111 thousand, or $0.05 per diluted share, compared to net revenue of $6.373 million and a net loss of $(433) thousand, or $(0.18) per diluted share, for the same nine months of 2022. Total gross margin in the third quarter improved to 41.5% versus 37.8% for the same quarter last year. For the first nine months of 2023 gross margin was 43.4% versus 35.7% for the same period last year. The gross margin improvement over last year resulted from a combination of price increases, lower depreciation, and increased efficiencies resulting from a lessening of supply constraints. The margin improvement along with the sales increase was more than sufficient to offset a 65% increase in research and development investment and still result in a profitable third quarter. We believe our core alcohol detection product line-up is strong. The newer platforms LX9 and LT7 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. We expect that most L-series sales 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 favored in many law enforcement and international organizations. Our Easycal® automated calibration station builds important protection around our brand with the only automated calibration available for portable breath alcohol testers 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 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 drugs, which currently includes cocaine, amphetamines, and fentanyl. 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 release of our SpinDx saliva testing system for beta testing utilizing the delta-9-THC disks is expected early in 2024 and is projected to result in commercialization in later 2024. We expect to accelerate development by combining our LX9 breathalyzer with the THC SpinDx detection unit, to produce our roadside marijuana breathalyzer system. "In the third quarter, supply chain constraints have been significantly relieved. As a result, our production backlog has been satisfied during the quarter. We are optimistic that supply will no longer be a significant constraint to our normal order flow," commented Dr. Wayne Willkomm, President and CEO. "Product is again flowing normally, and so our full attention is pushing the SpinDx product platform across the finish line to commercialization. We anticipate that our research and development expenses will continue to rise in this final push." 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. Phoenix® and Easycal® 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 CURRENT ASSETS: September 30, 2023 (Unaudited) December 31, 2022 Cash $ 2,136,873 $ 2,352,754 Accounts receivable, net 709,307 627,919 Inventories, net 2,912,406 2,732,463 Employee retention credit receivable - 107,575 Prepaid expenses and other 265,352 58,203 Total current assets 6,023,938 5,878,914 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 1,169,603 1,147,992 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 480,684 480,684 Less accumulated depreciation (3,263,200 ) (3,072,961 ) Total property and equipment, net 2,078,611 2,247,239 OTHER ASSETS: Patents, net 66,079 69,679 Deposits and other 500 500 Deferred taxes 435,545 321,429 Total other assets 502,124 391,608 Total assets $ 8,604,673 $ 8,517,761 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 501,827 $ 413,957 Term loan payable, current portion 51,194 50,028 Income taxes payable 36,476 - Customer deposits 184,474 201,031 Accrued expenses 262,206 344,944 Deferred revenue, current portion 60,607 80,222 Reserve for warranty expense 46,500 46,500 Total current liabilities 1,143,284 1,136,682 TERM LOAN PAYABLE, net of current portion and debt issuance costs 1,182,751 1,219,677 DEFERRED REVENUE, net of current portion 12,467 6,191 Total liabilities 2,338,502 2,362,550 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 1,598,157 1,487,197 Total stockholders' equity 6,266,171 6,155,211 Total liabilities and stockholders' equity $ 8,604,673 $ 8,517,761 LIFELOC TECHNOLOGIES, INC.Condensed Statements of Income (Unaudited) Three Months Ended September 30, REVENUES: 2023 2022 Product sales $ 2,676,872 $ 2,007,652 Royalties 5,063 1,225 Rental income 13,573 22,989 Total 2,695,508 2,031,866 COST OF SALES 1,576,117 1,263,951 GROSS PROFIT 1,119,391 767,915 OPERATING EXPENSES: Research and development 516,174 313,092 Sales and marketing 309,898 268,515 General and administrative 269,593 296,806 Total 1,095,665 878,413 OPERATING INCOME (LOSS) 23,726 (110,498 ) OTHER INCOME (EXPENSE): Interest income 17,678 4,508 Interest expense (10,494 ) (10,724 ) Total 7,184 (6,216 ) NET INCOME (LOSS) BEFORE PROVISION FOR TAXES 30,910 (116,714 ) BENEFIT FROM FEDERAL AND STATE INCOME TAXES 78,693 29,742 NET INCOME (LOSS) $ 109,603 $ (86,972 ) NET INCOME (LOSS) PER SHARE, BASIC $ 0.04 $ (0.04 ) NET INCOME (LOSS) PER SHARE, DILUTED $ 0.04 $ (0.04 ) 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 Income (Unaudited) Nine Months Ended September 30, REVENUES: 2023 2022 Product sales $ 7,056,638 $ 6,264,222 Royalties 23,419 40,437 Rental income 60,351 67,867 Total 7,140,408 6,372,526 COST OF SALES 4,043,146 4,099,087 GROSS PROFIT 3,097,262 2,273,439 OPERATING EXPENSES: Research and development 1,308,721 1,056,026 Sales and marketing 897,856 821,821 General and administrative 872,724 943,060 Total 3,079,301 2,820,907 OPERATING INCOME (LOSS) 17,961 (547,468 ) OTHER INCOME (EXPENSE): Interest income 46,678 6,130 Interest expense (31,319 ) (32,451 ) Total 15,359 (26,321 ) NET INCOME (LOSS) BEFORE PROVISION FOR TAXES 33,320 (573,789 ) BENEFIT FROM FEDERAL AND STATE INCOME TAXES 77,640 140,779 NET INCOME (LOSS) $ 110,960 $ (433,010 ) NET INCOME (LOSS) PER SHARE, BASIC $ 0.05 $ (0.18 ) NET INCOME (LOSS) PER SHARE, DILUTED $ 0.05 $ (0.18 ) 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Total stockholders' equity, beginning balances $ 6,156,568 $ 6,264,930 $ 6,155,211 $ 6,593,766 Common stock (no shares issued during periods): Beginning balances 4,668,014 4,668,014 4,668,014 4,650,812 Stock based compensation expense related to stock options - - - 17,202 Ending balances 4,668,014 4,668,014 4,668,014 4,668,014 Retained earnings: Beginning balances 1,488,554 1,596,916 1,487,197 1,942,954 Net income (loss) 109,603 (86,972 ) 110,960 (433,010 ) Ending balances 1,598,157 1,509,944 1,598,157 1,509,944 Total stockholders' equity, ending balances $ 6,266,171 $ 6,177,958 $ 6,266,171 $ 6,177,958 LIFELOC TECHNOLOGIES, INC.Condensed Statements of Cash Flows (Unaudited) Nine Months Ended September 30, CASH FLOWS FROM OPERATING ACTIVITIES: 2023 2022 Net income (loss) $ 110,960 $ (433,010 ) Adjustments to reconcile net income to net cash provided from (used in) operating activities- Depreciation and amortization 198,471 438,549 Provision for inventory obsolescence, net change - 154,367 Deferred taxes, net change (114,116 ) (140,779 ) Stock based compensation expense related to stock options - 17,202 Changes in operating assets and liabilities- Accounts receivable (81,388 ) (96,230 ) Inventories (179,943 ) (180,535 ) Employee retention credit and income taxes receivable 107,575 - Prepaid expenses and other (207,149 ) (59,041 ) Deposits and other - 162,980 Accounts payable 87,870 (3,130 ) Income taxes payable 36,476 - Customer deposits (16,557 ) 9,608 Accrued expenses (82,738 ) (63,917 ) Deferred revenue (13,339 ) (11,787 ) Net cash provided from (used in) operating activities (153,878 ) (205,723 ) CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: Purchases of property and equipment (21,611 ) (201,870 ) Patent filing expense (1,404 ) (1,687 ) Net cash (used in) investing activities (23,015 ) (203,557 ) CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: Principal payments made on term loan (38,988 ) (37,857 ) Net cash provided from (used in) financing activities (38,988 ) (37,857 ) NET (DECREASE) IN CASH (215,881 ) (447,137 ) CASH, BEGINNING OF PERIOD 2,352,754 2,571,668 CASH, END OF PERIOD $ 2,136,873 $ 2,124,531 SUPPLEMENTAL INFORMATION: Cash paid for interest $ 28,091 $ 29,223 SOURCE: Lifeloc Technologies, Inc. View source version on accesswire.com: https://www.accesswire.com/801333/lifeloc-reports-third-quarter-2023-results
WHEAT RIDGE, CO / ACCESSWIRE / November 8, 2023 / 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 quarter ended September 30, 2023. Third Quarter Financial Highlights Lifeloc posted quarterly net revenue of $2.696 million in the third quarter of 2023, resulting in a quarterly net profit of $110 thousand, or $0.04 per diluted share. These results compare to net revenue of $2.032 million and quarterly net loss of $(87) thousand, or $(0.04) per diluted share in the third quarter of 2022. Revenue for the quarter increased 33% versus the third quarter last year, as demand grows. Nine-month net revenues of $7.140 million and a net profit of $111 thousand, or $0.05 per diluted share, compared to net revenue of $6.373 million and a net loss of $(433) thousand, or $(0.18) per diluted share, for the same nine months of 2022. Total gross margin in the third quarter improved to 41.5% versus 37.8% for the same quarter last year. For the first nine months of 2023 gross margin was 43.4% versus 35.7% for the same period last year. The gross margin improvement over last year resulted from a combination of price increases, lower depreciation, and increased efficiencies resulting from a lessening of supply constraints. The margin improvement along with the sales increase was more than sufficient to offset a 65% increase in research and development investment and still result in a profitable third quarter. We believe our core alcohol detection product line-up is strong. The newer platforms LX9 and LT7 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. We expect that most L-series sales 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 favored in many law enforcement and international organizations. Our Easycal® automated calibration station builds important protection around our brand with the only automated calibration available for portable breath alcohol testers 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 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 drugs, which currently includes cocaine, amphetamines, and fentanyl. 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 release of our SpinDx saliva testing system for beta testing utilizing the delta-9-THC disks is expected early in 2024 and is projected to result in commercialization in later 2024. We expect to accelerate development by combining our LX9 breathalyzer with the THC SpinDx detection unit, to produce our roadside marijuana breathalyzer system. "In the third quarter, supply chain constraints have been significantly relieved. As a result, our production backlog has been satisfied during the quarter. We are optimistic that supply will no longer be a significant constraint to our normal order flow," commented Dr. Wayne Willkomm, President and CEO. "Product is again flowing normally, and so our full attention is pushing the SpinDx product platform across the finish line to commercialization. We anticipate that our research and development expenses will continue to rise in this final push." 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. Phoenix® and Easycal® 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 CURRENT ASSETS: September 30, 2023 (Unaudited) December 31, 2022 Cash $ 2,136,873 $ 2,352,754 Accounts receivable, net 709,307 627,919 Inventories, net 2,912,406 2,732,463 Employee retention credit receivable - 107,575 Prepaid expenses and other 265,352 58,203 Total current assets 6,023,938 5,878,914 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 1,169,603 1,147,992 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 480,684 480,684 Less accumulated depreciation (3,263,200 ) (3,072,961 ) Total property and equipment, net 2,078,611 2,247,239 OTHER ASSETS: Patents, net 66,079 69,679 Deposits and other 500 500 Deferred taxes 435,545 321,429 Total other assets 502,124 391,608 Total assets $ 8,604,673 $ 8,517,761 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 501,827 $ 413,957 Term loan payable, current portion 51,194 50,028 Income taxes payable 36,476 - Customer deposits 184,474 201,031 Accrued expenses 262,206 344,944 Deferred revenue, current portion 60,607 80,222 Reserve for warranty expense 46,500 46,500 Total current liabilities 1,143,284 1,136,682 TERM LOAN PAYABLE, net of current portion and debt issuance costs 1,182,751 1,219,677 DEFERRED REVENUE, net of current portion 12,467 6,191 Total liabilities 2,338,502 2,362,550 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 1,598,157 1,487,197 Total stockholders' equity 6,266,171 6,155,211 Total liabilities and stockholders' equity $ 8,604,673 $ 8,517,761 LIFELOC TECHNOLOGIES, INC.Condensed Statements of Income (Unaudited) Three Months Ended September 30, REVENUES: 2023 2022 Product sales $ 2,676,872 $ 2,007,652 Royalties 5,063 1,225 Rental income 13,573 22,989 Total 2,695,508 2,031,866 COST OF SALES 1,576,117 1,263,951 GROSS PROFIT 1,119,391 767,915 OPERATING EXPENSES: Research and development 516,174 313,092 Sales and marketing 309,898 268,515 General and administrative 269,593 296,806 Total 1,095,665 878,413 OPERATING INCOME (LOSS) 23,726 (110,498 ) OTHER INCOME (EXPENSE): Interest income 17,678 4,508 Interest expense (10,494 ) (10,724 ) Total 7,184 (6,216 ) NET INCOME (LOSS) BEFORE PROVISION FOR TAXES 30,910 (116,714 ) BENEFIT FROM FEDERAL AND STATE INCOME TAXES 78,693 29,742 NET INCOME (LOSS) $ 109,603 $ (86,972 ) NET INCOME (LOSS) PER SHARE, BASIC $ 0.04 $ (0.04 ) NET INCOME (LOSS) PER SHARE, DILUTED $ 0.04 $ (0.04 ) 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 Income (Unaudited) Nine Months Ended September 30, REVENUES: 2023 2022 Product sales $ 7,056,638 $ 6,264,222 Royalties 23,419 40,437 Rental income 60,351 67,867 Total 7,140,408 6,372,526 COST OF SALES 4,043,146 4,099,087 GROSS PROFIT 3,097,262 2,273,439 OPERATING EXPENSES: Research and development 1,308,721 1,056,026 Sales and marketing 897,856 821,821 General and administrative 872,724 943,060 Total 3,079,301 2,820,907 OPERATING INCOME (LOSS) 17,961 (547,468 ) OTHER INCOME (EXPENSE): Interest income 46,678 6,130 Interest expense (31,319 ) (32,451 ) Total 15,359 (26,321 ) NET INCOME (LOSS) BEFORE PROVISION FOR TAXES 33,320 (573,789 ) BENEFIT FROM FEDERAL AND STATE INCOME TAXES 77,640 140,779 NET INCOME (LOSS) $ 110,960 $ (433,010 ) NET INCOME (LOSS) PER SHARE, BASIC $ 0.05 $ (0.18 ) NET INCOME (LOSS) PER SHARE, DILUTED $ 0.05 $ (0.18 ) 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Total stockholders' equity, beginning balances $ 6,156,568 $ 6,264,930 $ 6,155,211 $ 6,593,766 Common stock (no shares issued during periods): Beginning balances 4,668,014 4,668,014 4,668,014 4,650,812 Stock based compensation expense related to stock options - - - 17,202 Ending balances 4,668,014 4,668,014 4,668,014 4,668,014 Retained earnings: Beginning balances 1,488,554 1,596,916 1,487,197 1,942,954 Net income (loss) 109,603 (86,972 ) 110,960 (433,010 ) Ending balances 1,598,157 1,509,944 1,598,157 1,509,944 Total stockholders' equity, ending balances $ 6,266,171 $ 6,177,958 $ 6,266,171 $ 6,177,958 LIFELOC TECHNOLOGIES, INC.Condensed Statements of Cash Flows (Unaudited) Nine Months Ended September 30, CASH FLOWS FROM OPERATING ACTIVITIES: 2023 2022 Net income (loss) $ 110,960 $ (433,010 ) Adjustments to reconcile net income to net cash provided from (used in) operating activities- Depreciation and amortization 198,471 438,549 Provision for inventory obsolescence, net change - 154,367 Deferred taxes, net change (114,116 ) (140,779 ) Stock based compensation expense related to stock options - 17,202 Changes in operating assets and liabilities- Accounts receivable (81,388 ) (96,230 ) Inventories (179,943 ) (180,535 ) Employee retention credit and income taxes receivable 107,575 - Prepaid expenses and other (207,149 ) (59,041 ) Deposits and other - 162,980 Accounts payable 87,870 (3,130 ) Income taxes payable 36,476 - Customer deposits (16,557 ) 9,608 Accrued expenses (82,738 ) (63,917 ) Deferred revenue (13,339 ) (11,787 ) Net cash provided from (used in) operating activities (153,878 ) (205,723 ) CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: Purchases of property and equipment (21,611 ) (201,870 ) Patent filing expense (1,404 ) (1,687 ) Net cash (used in) investing activities (23,015 ) (203,557 ) CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: Principal payments made on term loan (38,988 ) (37,857 ) Net cash provided from (used in) financing activities (38,988 ) (37,857 ) NET (DECREASE) IN CASH (215,881 ) (447,137 ) CASH, BEGINNING OF PERIOD 2,352,754 2,571,668 CASH, END OF PERIOD $ 2,136,873 $ 2,124,531 SUPPLEMENTAL INFORMATION: Cash paid for interest $ 28,091 $ 29,223 SOURCE: Lifeloc Technologies, Inc. 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