Lifeloc Reports First Quarter 2021 Results

News provided by

Lifeloc Technologies

May 12, 2021, 18:29 ET

WHEAT RIDGE, Colo., May 12, 2021 /PRNewswire/ -- Lifeloc Technologies, Inc. (OTC: LCTC), a global leader in the development and manufacturing of breath alcohol and drug testing devices, has announced financial results for the first quarter ended March 31, 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

SOURCE Lifeloc Technologies

Related Links

http://www.lifeloc.com

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