Lifeloc Reports Third Quarter 2020 Results

WHEAT RIDGE, Colo., Nov. 11, 2020 /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 third quarter and for the nine months ended September 30, 2020.

Third Quarter Financial Highlights

Lifeloc posted quarterly net revenue of $1.555 million resulting in a quarterly net loss of $213 thousand, or $(0.09) per diluted share.  These results compare to net revenue of $2.258 million and net income of $151 thousand, or $0.06 per diluted share, in the third quarter of 2019.  Revenue for the current quarter declined 31% versus the third quarter last year.  For the first nine months of 2020, net revenue was $4.893 million with a net loss of $728 thousand, or $(0.30) per diluted share, compared to net revenue of $6.664 million and net income of $401 thousand, or $0.16 per diluted share, for the same nine months of 2019. 

The global Covid-19 pandemic continues to suppress purchasing activities of many of our customers.  Travel bans, governmental orders, and social distancing guidelines continue to force severe contractions in demand in both domestic and international markets.  As an essential part of transportation and public safety, Lifeloc has continued operations, while taking important steps to mitigate the financial impact of the pandemic.  Lifeloc has received a Paycheck Protection Program (PPP) loan and has complied with all currently published SBA guidance on loan forgiveness and is hopeful that the PPP loan obtained in May of $465 thousand will be forgiven.  Following use of the PPP loan funds, structural costs savings were achieved through measures including staff reduction.

Current market conditions do not change our vision that Lifeloc is becoming the world's leading provider of real-time alcohol and drug abuse detection and monitoring equipment. In fact, current conditions highlight the urgency of achieving this vision.  To achieve this, we will continue to grow our research and development investment required to move our developments into the market.  Growing research and development spending could result in continued short term losses, even when sales return to pre-pandemic levels. 

Our new breath alcohol testers, the LX9 and LT7, have been released and are on the U.S. Department of Transportation Conforming Products List, and are starting to find adoption both domestically and internationally. With highly flexible configuration, multiple language capability and a wide temperature use range, these breathalyzers are expected to facilitate future sales growth.  Additionally, our Easycal® G2 has broadened our automated calibration capability and is compatible with our existing installed base of professional breathalyzers as well as the new LX9 and LT7.  The G2 model also includes RFID (Radio Frequency Identification) reading of calibration standard data, which further automates the calibration process.

Additionally, several manufacturing runs of the R.A.D.A.R.^® (Real-time Alcohol Detection and Reporting) model 200 have been produced.  Evaluation is beginning with key customers.  Recently added, the automated enrollment assistant application is providing real-time enrollment coaching, streamlining this process for customer productivity.  Additionally, this new model has updated communication, improved GPS accuracy and mechanical reliability. These devices have alcohol monitoring capability and onboard biometrics that automatically verify the identity of the test subject and are intended as a tool for supervising offenders.  This alternative to incarceration represents a critical step in moving our business closer to a recurring monitoring revenue model and is expected to contribute to an increase in revenue and earnings this year and in the future.

Our SpinDx-based marijuana breathalyzer remains a key product of interest in attempts to address the broadening legalization of marijuana. Legalization and decriminalization of marijuana only increases the need for a rapid, quantitative roadside test to identify drivers under the influence of marijuana.  The ability of our technology to detect delta-9-THC down to a concentration of 5 nanograms per milliliter and to collect a testable sample from a vapor stream has been demonstrated in our laboratories, and we continue the development work needed to convert this technology into a simple-to-operate device that is suitable for roadside testing.  Detection of THC is accomplished through the SpinDx technology, licensed exclusively by Lifeloc Technologies for drugs of abuse from Sandia National Laboratory.  We are targeting the end of 2021 for the first product release from this platform.

"We are very excited to have some R.A.D.A.R. 200 units in customer's hands for evaluation," said CEO Dr. Wayne Willkomm.  "This is a critical step to enable a recurring revenue stream through a monitoring business."

About Lifeloc Technologies

Lifeloc Technologies, Inc. (OTC: LCTC) is a trusted U.S. manufacturer of evidential breath alcohol testers and related training and supplies for Workplace, Law Enforcement, Corrections and International customers.  Lifeloc stock trades over-the-counter under the symbol LCTC.  We are a fully reporting Company with our SEC filings available on our web site, www.lifeloc.com/investor.

Forward Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve substantial risks and uncertainties that may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements expressed or implied in this press release, including statements about our strategies, expectations about new and existing products, market demand, acceptance of new and existing products, technologies and opportunities, market size and growth, and return on investments in products and market, are based on information available to us on the date of this document, and we assume no obligation to update such forward-looking statements. Investors are strongly encouraged to review the section titled "Risk Factors" in our SEC filings.

Easycal^® and R.A.D.A.R.^® are registered trademarks of Lifeloc Technologies, Inc.

SpinDx™ is a trademark of Sandia Corporation.

Amy Evans 
Lifeloc Technologies, Inc. 
http://www.lifeloc.com 
(303) 431-9500

SOURCE Lifeloc Technologies

Related Links

http://www.lifeloc.com

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