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LCTC Lifeloc

Filed: 12 May 21, 9:15pm

Exhibit 99.1

 

Lifeloc Reports First Quarter 2021 Results

WHEAT RIDGE, Colo., May 12, 2020 -- 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, 2021.

First Quarter Financial Highlights

Lifeloc posted quarterly net revenue of $1.810 million resulting in a quarterly net income of $403 thousand, or $0.16 per diluted share. These results compare to net revenue of $2.018 million and quarterly net loss of $(165) thousand, or $(0.07) per diluted share in the first quarter of 2020. Revenue for the quarter declined 10% versus the first quarter last year, primarily from the impact of the COVID-19 global pandemic and the government ordered shutdowns.

As previously reported in 2020, Lifeloc received a $465 thousand SBA guaranteed loan through the Paycheck Protection Program (PPP). These loans could be completely forgiven by the SBA if the proceeds were spent in accordance with the program rules. Lifeloc complied with this program and applied for forgiveness in 2020, which was granted by the SBA in early 2021, with the financial benefit of the forgiveness realized in the first quarter of 2021. The PPP program was quite successful in mitigating the negative effect of the significant demand suppression on cash flow from the pandemic while allowing Lifeloc to carefully reduce structural costs and retain critical personnel, with no compromise to our product development efforts.

Lifeloc qualified for and received a second PPP loan of $471 thousand in Q1 of 2021. As with the first loan, Lifeloc intends to comply with all requirements and will apply for forgiveness of this loan after the program conditions are satisfied and the application process is made available.

Our new platform LX9 and LT7 devices were introduced late in 2019. Despite current difficult market conditions, the features (and performance) of the new L-series products 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-series sales. “In January 2021 our L-series devices were certified to SAI’s (Standards Australia International) latest AS 3547:2019 standards for Breath Alcohol Detectors. This achievement solidifies our ability to provide advanced breath alcohol detectors to a robust market and provides a product certification that is highly regarded in the Pacific Rim,” said Mark Lary, Director of Regulatory Affairs.

We continue to invest in the significant growth opportunities of alcohol monitoring and drug detection. The monitoring opportunity will be addressed primarily through the redesigned Real-Time Alcohol Detection and Reporting (R.A.D.A.R.®) device. Manufacture of the second generation R.A.D.A.R. 200 protype devices began in late 2020. Testing of these redesigned R.A.D.A.R. devices and integration with the monitoring system has been extensive, requiring additional modification before final release. The design has been finalized with several devices now in field testing by key customers and sales release planned this year. Several upgrades have been made to the reporting system with an entirely new enrollment app to automate that process.

 
 
 

 

Our most important goal remains the convergence of the market need for rapid detection of drugs of abuse with Lifeloc’s capabilities. Resources have been committed to finalizing the development of the SpinDx™ technology platform and the rapid, quantitative marijuana breathalyzer built on that platform. We have improved the detection sensitivity for delta-9-THC as well as the robustness of the device. Work continues to develop this system into a device that can be used for roadside testing.

“We look forward to the continued improvement of general business conditions, especially within our customer base. The last year has been particularly difficult for the travel industry and law enforcement,” commented Dr. Wayne Willkomm, President and CEO. “But our real growth driver is the strong pipeline of recent and coming product releases. Additional features requested by various European law enforcement agencies are being added to the L-series platform. Together with the imminent release of the redesigned R.A.D.A.R 200 devices, this should develop a healthy recurring revenue stream. The next big milestone for Lifeloc will be completing the commercialization of the SpinDx platform – a major effort that will be prioritized over short-term profitability.”

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.

 

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    
  March 31,  
  2021 December 31,
CURRENT ASSETS: (Unaudited) 2020
Cash $2,317,035  $2,195,070 
Accounts receivable, net  693,225   523,603 
Inventories, net  2,580,148   2,498,126 
Income taxes receivable  234,541   220,657 
Prepaid expenses and other  98,568   77,962 
      Total current assets  5,923,517   5,515,418 
         
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  190,818   190,818 
Less accumulated depreciation  (2,341,432)  (2,277,839)
     Total property and equipment, net  2,499,695   2,563,288 
         
OTHER ASSETS:        
Patents, net  141,738   144,702 
Deposits and other  164,798   164,798 
Deferred taxes  149,583   148,142 
     Total other assets  456,119   457,642 
         
     Total assets $8,879,331  $8,536,348 
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
CURRENT LIABILITIES:        
Accounts payable $355,819  $333,851 
Term loan payable, current portion  46,612   46,936 
Paycheck Protection loan payable  471,347   465,097 
Customer deposits  161,465   155,295 
Accrued expenses  163,719   266,266 
Deferred revenue, current portion  44,154   41,053 
Reserve for warranty expense  46,500   46,500 
      Total current liabilities  1,289,616   1,354,998 
         
TERM LOAN PAYABLE, net of current portion and        
debt issuance costs  1,266,120   1,277,531 
         
DEFERRED REVENUE, net of current portion  2,325   3,177 
      Total liabilities  2,558,061   2,635,706 
         
COMMITMENTS AND CONTINGENCIES        
         
STOCKHOLDERS' EQUITY:        
Common stock, no par value; 50,000,000 shares        
  authorized, 2,454,116 shares outstanding  4,650,812   4,633,655 
Retained earnings  1,670,458   1,266,987 
      Total stockholders' equity  6,321,270   5,900,642 
         
      Total liabilities and stockholders' equity $8,879,331  $8,536,348 

 

 
 
 

LIFELOC TECHNOLOGIES, INC.
Condensed Statements of Income (Unaudited)

 
  Three Months Ended March 31,
REVENUES: 2021 2020
Product sales $1,775,447  $1,937,866 
Royalties  12,564   59,281 
Rental income  21,532   21,189 
Total  1,809,543   2,018,336 
         
COST OF SALES  985,666   1,240,260 
         
GROSS PROFIT  823,877   778,076 
         
OPERATING EXPENSES:        
Research and development  307,212   296,897 
Sales and marketing  230,478   326,564 
General and administrative  350,120   356,887 
Total  887,810   980,348 
         
OPERATING INCOME (LOSS)  (63,933)  (202,272)
         
OTHER INCOME (EXPENSE):        
Forgiveness of Paycheck Protection loan  465,097   —   
Interest income  499   7,176 
Interest expense  (13,517)  (14,131)
Total other income (expense)  452,079   (6,955)
         
NET INCOME (LOSS) BEFORE PROVISION FOR TAXES  388,146   (209,227)
         
BENEFIT FROM (PROVISION FOR) FEDERAL AND STATE INCOME TAXES  15,325   43,921 
         
NET INCOME (LOSS) $403,471  $(165,306)
         
NET INCOME (LOSS) PER SHARE, BASIC $0.16  $(0.07)
         
NET INCOME (LOSS) PER SHARE, DILUTED $0.16  $(0.07)
         
WEIGHTED AVERAGE SHARES, BASIC  2,454,116   2,454,116 
         
WEIGHTED AVERAGE SHARES, DILUTED  2,454,116   2,454,116 

 

 
 
 

Lifeloc Technologies, Inc.
Statements of Stockholders' Equity (Unaudited)

  Three Months Ended March 31,
  2021 2020
Total stockholders' equity, beginning balances $5,900,642  $6,792,221 
         
Common stock (no shares issued during periods):        
Beginning balances  4,633,655   4,603,304 
Stock based compensation expense related        
 to stock options  17,157   32,111 
Ending balances  4,650,812   4,635,415 
         
Retained earnings:        
Beginning balances  1,266,987   2,188,917 
Net income (loss)  403,471   (165,306)
Ending balances  1,670,458   2,023,611 
         
Total stockholders' equity, ending balances $6,321,270  $6,659,026 

 

 
 
 

LIFELOC TECHNOLOGIES, INC.
Condensed Statements of Cash Flows (Unaudited)

 
  Three Months Ended March 31,
CASH FLOWS FROM OPERATING ACTIVITIES: 2021 2020
Net income (loss) $403,471  $(165,306)
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  66,828   97,199 
   Provision for doubtful accounts, net change  —     2,000 
   Provision for inventory obsolescence, net change  —     36,765 
   Deferred taxes, net change  (1,441)  (9,349)
   Reserve for warranty expense, net change  —     1,000 
   Stock based compensation expense related to        
     stock options  17,157   32,111 
Changes in operating assets and liabilities-        
   Accounts receivable  (169,622)  1,201 
   Inventories  (82,022)  (286,797)
   Income taxes receivable  (13,884)  (34,555)
   Prepaid expenses and other  (20,606)  (120,915)
   Accounts payable  21,968   218,563 
   Customer deposits  6,170   (29,699)
   Accrued expenses  (102,547)  28,908 
   Deferred revenue  2,249   (4,539)
           Net cash provided from (used in)        
            operating activities  (337,376)  (233,413)
         
CASH FLOWS FROM INVESTING ACTIVITIES:        
Purchases of property and equipment  —     (9,088)
Patent filing expense  —     (18,772)
           Net cash (used in) investing activities  —     (27,860)
         
CASH FLOWS FROM FINANCING ACTIVITIES:        
Proceeds from Paycheck Protection loan (round 2)  471,347   —   
Principal payments made on term loan  (12,006)  (11,391)
           Net cash provided from (used in)        
            financing activities  459,341   (11,391)
         
NET INCREASE (DECREASE) IN CASH  121,965   (272,664)
         
CASH, BEGINNING OF PERIOD  2,195,070   3,185,996 
         
CASH, END OF PERIOD $2,317,035  $2,913,332 
         
SUPPLEMENTAL INFORMATION:        
Cash paid for interest $13,246  $13,860 
         
Cash paid for income tax $—    $20,063