x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended June 30, 2013
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from to
|
Colorado
|
84-1053680
|
(State or other jurisdiction of
|
(I.R.S. Employer Identification No.)
|
incorporation or organization)
|
Large accelerated filer o
|
Accelerated filer
|
Non-accelerated filer o
|
Smaller reporting company x
|
(Do not check if a smaller reporting company)
|
Common Stock, no par value
|
2,432,416 Shares
|
(Class)
|
(outstanding at August 7, 2013)
|
Page
|
||||
Number
|
||||
PART I. FINANCIAL INFORMATION
|
3
|
|||
ITEM 1
|
FINANCIAL STATEMENTS (UNAUDITED)
|
|||
-
|
Condensed Balance Sheets as of June 30, 2013 (Unaudited) and December 31, 2012
|
3
|
||
-
|
Condensed Statements of Income (Unaudited) for the three months ended June 30, 2013 and 2012
|
4
|
||
-
|
Condensed Statements of Income (Unaudited) for the six months ended June 30, 2013 and 2012
|
5
|
||
-
|
Condensed Statements of Cash Flows (Unaudited) for the six months ended June 30, 2013 and 2012
|
6
|
||
-
|
Notes to Condensed Financial Statements (Unaudited)
|
7
|
||
ITEM 2
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
10 | ||
ITEM 4
|
CONTROLS AND PROCEDURES
|
13 | ||
PART II. OTHER INFORMATION
|
14 | |||
ITEM 6
|
EXHIBITS
|
14 | ||
SIGNATURE
|
15 |
|
||||||||
ASSETS
|
||||||||
June 30,
|
||||||||
2013
|
December 31,
|
|||||||
CURRENT ASSETS:
|
(Unaudited)
|
2012
|
||||||
Cash
|
$ | 2,502,693 | $ | 2,338,012 | ||||
Accounts receivable, net
|
798,788 | 405,321 | ||||||
Installment receivables
|
1,032 | - | ||||||
Inventories, net
|
1,008,593 | 832,670 | ||||||
Income taxes receivable
|
20,041 | 174,129 | ||||||
Deferred taxes
|
153,850 | 130,172 | ||||||
Prepaid expenses and other
|
80,170 | 31,529 | ||||||
Total current assets
|
4,565,167 | 3,911,833 | ||||||
PROPERTY AND EQUIPMENT, at cost:
|
||||||||
Production equipment
|
272,075 | 258,703 | ||||||
Office equipment
|
149,852 | 144,202 | ||||||
Sales and marketing equipment
|
177,701 | 175,344 | ||||||
Purchased software
|
46,203 | 46,203 | ||||||
Less accumulated depreciation
|
(431,714 | ) | (365,728 | ) | ||||
Total property and equipment, net
|
214,117 | 258,724 | ||||||
OTHER ASSETS:
|
||||||||
Technology licenses, net
|
23,331 | 55,139 | ||||||
Patents, net
|
15,699 | 11,953 | ||||||
Deferred taxes, long term
|
6,638 | 2,112 | ||||||
Deposits and other
|
56,040 | 54,704 | ||||||
Total other assets
|
101,708 | 123,908 | ||||||
Total assets
|
$ | 4,880,992 | $ | 4,294,465 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accounts payable
|
$ | 295,816 | $ | 82,796 | ||||
Customer deposits
|
510 | 294 | ||||||
Accrued expenses
|
247,407 | 278,324 | ||||||
Deferred income, current portion
|
218,613 | 158,527 | ||||||
Reserve for warranty expense
|
24,600 | 23,100 | ||||||
Total current liabilities
|
786,946 | 543,041 | ||||||
DEFERRED INCOME, net of current portion
|
17,467 | 5,559 | ||||||
COMMITMENTS AND CONTINGENCIES
|
||||||||
STOCKHOLDERS' EQUITY:
|
||||||||
Common stock, no par value; 50,000,000 shares
|
||||||||
authorized, 2,432,416 shares outstanding (2,422,416
|
||||||||
at December 31, 2012)
|
4,324,897 | 4,309,697 | ||||||
Accumulated (deficit)
|
(248,318 | ) | (563,832 | ) | ||||
Total stockholders' equity
|
4,076,579 | 3,745,865 | ||||||
Total liabilities and stockholders' equity
|
$ | 4,880,992 | $ | 4,294,465 |
Three Months Ended June 30,
|
||||||||
2013
|
2012
|
|||||||
REVENUES:
|
||||||||
Product sales
|
$ | 1,986,662 | $ | 1,537,861 | ||||
Royalties
|
122,387 | 116,576 | ||||||
Total
|
2,109,049 | 1,654,437 | ||||||
COST OF SALES
|
1,055,129 | 852,729 | ||||||
GROSS PROFIT
|
1,053,920 | 801,708 | ||||||
OPERATING EXPENSES:
|
||||||||
Research and development
|
263,700 | 113,498 | ||||||
Sales and marketing
|
274,516 | 214,429 | ||||||
General and administrative
|
282,464 | 276,332 | ||||||
Total
|
820,680 | 604,259 | ||||||
OPERATING INCOME
|
233,240 | 197,449 | ||||||
OTHER INCOME (EXPENSE):
|
||||||||
Interest income
|
3,959 | 4,003 | ||||||
Bad debt recovery
|
2,000 | 6,000 | ||||||
Total
|
5,959 | 10,003 | ||||||
NET INCOME BEFORE PROVISION FOR TAXES
|
239,199 | 207,452 | ||||||
PROVISION FOR FEDERAL AND STATE INCOME TAXES
|
(65,694 | ) | (75,017 | ) | ||||
NET INCOME
|
$ | 173,505 | $ | 132,435 | ||||
NET INCOME PER SHARE, BASIC
|
$ | 0.07 | $ | 0.05 | ||||
NET INCOME PER SHARE, DILUTED
|
$ | 0.07 | $ | 0.05 | ||||
WEIGHTED AVERAGE SHARES, BASIC
|
2,426,542 | 2,422,416 | ||||||
WEIGHTED AVERAGE SHARES, DILUTED
|
2,426,542 | 2,445,416 |
Six Months Ended June 30,
|
||||||||
2013
|
2012
|
|||||||
REVENUES:
|
||||||||
Sales
|
$ | 3,764,586 | $ | 3,341,550 | ||||
Royalties
|
252,812 | 116,576 | ||||||
Total
|
4,017,398 | 3,458,126 | ||||||
COST OF SALES
|
2,014,308 | 1,853,020 | ||||||
GROSS PROFIT
|
2,003,090 | 1,605,106 | ||||||
OPERATING EXPENSES:
|
||||||||
Research and development
|
424,269 | 232,829 | ||||||
Sales and marketing
|
522,843 | 414,447 | ||||||
General and administrative
|
620,445 | 582,916 | ||||||
Total
|
1,567,557 | 1,230,192 | ||||||
OPERATING INCOME
|
435,533 | 374,914 | ||||||
OTHER INCOME (EXPENSE):
|
||||||||
Interest income
|
7,622 | 7,687 | ||||||
Bad debt recovery
|
5,000 | 6,000 | ||||||
Total
|
12,622 | 13,687 | ||||||
NET INCOME BEFORE PROVISION FOR TAXES
|
448,155 | 388,601 | ||||||
PROVISION FOR FEDERAL AND STATE INCOME TAXES
|
(132,641 | ) | (136,458 | ) | ||||
NET INCOME
|
$ | 315,514 | $ | 252,143 | ||||
NET INCOME PER SHARE, BASIC
|
$ | 0.13 | $ | 0.10 | ||||
NET INCOME PER SHARE, DILUTED
|
$ | 0.13 | $ | 0.10 | ||||
WEIGHTED AVERAGE SHARES, BASIC
|
2,430,537 | 2,422,416 | ||||||
WEIGHTED AVERAGE SHARES, DILUTED
|
2,430,537 | 2,445,416 |
Six Months Ended June 30,
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
2013
|
2012
|
||||||
Net income
|
$ | 315,514 | $ | 252,143 | ||||
Adjustments to reconcile net income to net cash
|
||||||||
provided by operating activities-
|
||||||||
Depreciation and amortization
|
98,507 | 83,970 | ||||||
Deferred taxes
|
(28,204 | ) | (46,433 | ) | ||||
Reserve for warranty expense
|
1,500 | 800 | ||||||
Changes in operating assets and liabilities-
|
||||||||
Accounts receivable
|
(393,467 | ) | (56,932 | ) | ||||
Installment receivables
|
(1,032 | ) | - | |||||
Inventories
|
(175,923 | ) | 129,906 | |||||
Income taxes receivable
|
154,088 | - | ||||||
Prepaid expenses and other
|
(48,641 | ) | (42,130 | ) | ||||
Deposits and other
|
(1,336 | ) | 2,099 | |||||
Accounts payable
|
213,020 | 94,809 | ||||||
Customer deposits
|
216 | 2,091 | ||||||
Accrued expenses
|
(30,917 | ) | (233,216 | ) | ||||
Deferred income
|
71,994 | 107,287 | ||||||
Income taxes payable
|
- | 56,697 | ||||||
Net cash provided from
|
||||||||
operating activities
|
175,319 | 351,091 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchases of property and equipment
|
(21,379 | ) | (67,550 | ) | ||||
Purchase of patent
|
(4,459 | ) | - | |||||
Net cash (used in) investing activities
|
(25,838 | ) | (67,550 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Issuance of 10,000 shares of common stock at $1.52 per share
|
15,200 | - | ||||||
NET INCREASE IN CASH
|
164,681 | 283,541 | ||||||
CASH, BEGINNING OF PERIOD
|
2,338,012 | 1,844,802 | ||||||
CASH, END OF PERIOD
|
$ | 2,502,693 | $ | 2,128,343 | ||||
Supplemental cash flow disclosure:
|
||||||||
Cash paid for income taxes
|
$ | 1,790 | $ | 133,694 |
2013
|
2012
|
|||||||
Raw materials & deposits
|
$ | 415,647 | $ | 271,865 | ||||
Work-in-process
|
198,140 | 126,209 | ||||||
Finished goods
|
451,370 | 479,596 | ||||||
Total gross inventories
|
1,065,157 | 877,670 | ||||||
Less reserve for obsolescence
|
(56,564 | ) | (45,000 | ) | ||||
Total net inventories
|
$ | 1,008,593 | $ | 832,670 |
Three Months Ended
|
||||||||
June 30, 2013
|
June 30, 2012
|
|||||||
Net income
|
$ | 173,505 | $ | 132,435 | ||||
Weighted-average shares — basic
|
2,426,542 | 2,422,416 | ||||||
Effect of dilutive potential common shares
|
- | 23,000 | ||||||
Weighted-average shares — diluted
|
2,426,542 | 2,445,416 | ||||||
Net income per share — basic
|
$ | 0.07 | $ | 0.05 | ||||
Net income per share — diluted
|
$ | 0.07 | $ | 0.05 | ||||
Antidilutive employee stock options
|
- | - |
Six Months Ended
|
||||||||
June 30, 2013
|
June 30, 2012
|
|||||||
Net income
|
$ | 315,514 | $ | 252,143 | ||||
Weighted-average shares — basic
|
2,430,537 | 2,422,416 | ||||||
Effect of dilutive potential common shares
|
- | 23,000 | ||||||
Weighted-average shares — diluted
|
2,430,537 | 2,445,416 | ||||||
Net income per share — basic
|
$ | 0.13 | $ | 0.10 | ||||
Net income per share — diluted
|
$ | 0.13 | $ | 0.10 | ||||
Antidilutive employee stock options
|
- | - |
STOCK OPTIONS OUTSTANDING
|
STOCK OPTIONS EXERCISABLE
|
|||||||||||
Range of
Exercise
Prices
|
Number
Outstanding
|
Weighted-Average
Remaining Contractual
Life (in Years)
|
Weighted-Average
Exercise Price
per Share
|
Number
Exercisable
|
Weighted-Average
Exercise Price
per Share
|
|||||||
$3.69 |
23,000
|
4
|
$3.69
|
23,000
|
$3.69
|
1.
|
Insufficient access to appropriate technical research materials and sufficient technical accounting knowledge within the accounting department related to accounting for complex transactions and to evolving generally accepted accounting principles.
|
2.
|
Insufficient technical accounting knowledge within the audit committee to adequately provide oversight of the Company’s accounting and reporting functions.
|
1.
|
We have acquired access to additional technical research materials and have evaluated the need to retain additional personnel to enable our accounting department to adequately respond to changes in our operations and to changes within generally accepted accounting principles.
|
2.
|
We have appointed a new director to our audit committee with the required credentials to serve as our audit committee financial expert.
|
Exhibit No.
|
Description of Exhibit
|
|
10.1
|
Lifeloc Technologies, Inc. Stock Option Plan (incorporated by reference from the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2013)
|
|
31.1
|
Certification of Principal Executive Officer Pursuant To Section 302 Of The Sarbanes—Oxley Act Of 2002
|
|
31.2
|
Certification of Principal Financial Officer Pursuant To Section 302 Of The Sarbanes—Oxley Act Of 2002
|
|
32.1
|
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
32.2
|
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
101
|
Interactive Data Files Pursuant to Rule 405 of Regulation S-T.
|
LIFELOC TECHNOLOGIES, INC.
|
|||
August 9, 2013
|
By:
|
/s/ Barry R. Knott
|
|
Date
|
Barry R. Knott
|
||
President and Chief Executive Officer
(Principal Executive Officer)
|
|||
August 9, 2013
|
By:
|
/s/ Kristie L. LaRose
|
|
Date
|
Kristie L. LaRose
|
||
Vice President of Finance and Administration
(Principal Accounting Officer)
|
|||
Exhibit No.
|
Description of Exhibit
|
|
10.1
|
Lifeloc Technologies, Inc. Stock Option Plan (incorporated by reference from the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2013)
|
|
31.1
|
Certification of Principal Executive Officer Pursuant To Section 302 Of The Sarbanes—Oxley Act Of 2002
|
|
31.2
|
Certification of Principal Financial Officer Pursuant To Section 302 Of The Sarbanes—Oxley Act Of 2002
|
|
32.1
|
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
32.2
|
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
101
|
Interactive Date Files Pursuant to Rule 405 of Regulation S-T.
|
(1)
|
Incorporated by reference to our Registration Statement on Form 10-12G, filed on March 31, 2011.
|
(2)
|
Incorporated by reference to our Registration Statement on Form 10-12G (Amendment 1), filed on May 11, 2011.
|
1. I have reviewed this report on Form 10-Q of Lifeloc Technologies, Inc.;
|
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Barry R. Knott
|
||
Barry R. Knott
|
||
President and Chief Executive Officer
|
1. I have reviewed this report on Form 10-Q of Lifeloc Technologies, Inc.;
|
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
|
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Vern D. Kornelsen
|
||
Vern D. Kornelsen
|
||
Chief Financial Officer
|
the Quarterly Report on Form 10-Q of the Company for the six months ended June 30, 2013 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the period covered by the Report.
|
/s/ Barry R. Knott
|
||
Barry R. Knott
|
||
President and Chief Executive Officer
|
the Quarterly Report on Form 10-Q of the Company for the six months ended June 30, 2013 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the period covered by the Report.
|
/s/ Vern D. Kornelsen
|
||
Vern D. Kornelsen
|
||
Chief Financial Officer
|
4. STOCKHOLDERS' EQUITY (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||
Stockholders Equity Tables | ||||||||||||||||||||||||||||||||||||||||
Stock options outstanding and exercisable |
|
Condensed Statements of Income (Unaudited) (USD $)
|
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
REVENUES: | ||||
Product sales | $ 1,986,662 | $ 1,537,861 | $ 3,764,586 | $ 3,341,550 |
Royalties | 122,387 | 116,576 | 252,812 | 116,576 |
Total sales | 2,109,049 | 1,654,437 | 4,017,398 | 3,458,126 |
COST OF SALES | 1,055,129 | 852,729 | 2,014,308 | 1,853,020 |
GROSS PROFIT | 1,053,920 | 801,708 | 2,003,090 | 1,605,106 |
OPERATING EXPENSES: | ||||
Research and development | 263,700 | 113,498 | 424,269 | 232,829 |
Sales and marketing | 274,516 | 214,429 | 522,843 | 414,447 |
General and administrative | 282,464 | 276,332 | 620,445 | 582,916 |
Total | 820,680 | 604,259 | 1,567,557 | 1,230,192 |
OPERATING INCOME | 233,240 | 197,449 | 435,533 | 374,914 |
OTHER INCOME (EXPENSE): | ||||
Interest income | 3,959 | 4,003 | 7,622 | 7,687 |
Bad debt recovery | 2,000 | 6,000 | 5,000 | 6,000 |
Total | 5,959 | 10,003 | 12,622 | 13,687 |
NET INCOME BEFORE PROVISION FOR TAXES | 239,199 | 207,452 | 448,155 | 388,601 |
PROVISION FOR FEDERAL AND STATE INCOME TAXES | (65,694) | (75,017) | (132,641) | (136,458) |
NET INCOME | $ 173,505 | $ 132,435 | $ 315,514 | $ 252,143 |
NET INCOME PER SHARE, BASIC | $ 0.07 | $ 0.05 | $ 0.13 | $ 0.1 |
NET INCOME PER SHARE, DILUTED | $ 0.07 | $ 0.05 | $ 0.13 | $ 0.1 |
WEIGHTED AVERAGE SHARES, BASIC | 2,426,542 | 2,422,416 | 2,430,537 | 2,422,416 |
WEIGHTED AVERAGE SHARES, DILUTED | 2,426,542 | 2,445,416 | 2,430,537 | 2,445,416 |
5. RELATED PARTY TRANSACTIONS
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Related Party Transactions [Abstract] | |
Note 5 - RELATED PARTY TRANSACTIONS | 5. RELATED PARTY TRANSACTIONS
During the six months ended June 30, 2013, we paid a consulting fee of $15,000 to a director. No consulting fee was paid during the six months ended June 30, 2012. |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)
|
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Inventories | ||
Raw materials & deposits | $ 415,647 | $ 271,865 |
Work-in-process | 198,140 | 126,209 |
Finished goods | 451,370 | 479,596 |
Total gross inventories | 1,065,157 | 877,670 |
Less reserve for obsolescence | (56,564) | (45,000) |
Total net inventories | $ 1,008,593 | $ 832,670 |
1. ORGANIZATION AND NATURE OF BUSINESS
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Notes to Financial Statements | |
NOTE 1 - ORGANIZATION AND NATURE OF BUSINESS | 1. ORGANIZATION AND NATURE OF BUSINESS
Lifeloc Technologies, Inc. (Lifeloc or the Company) is a Colorado based developer, manufacturer and marketer of portable hand-held breathalyzers and related supplies and education. We design, produce and sell fuel-cell based breath alcohol testing equipment. We compete in all major segments of the portable breath alcohol testing instrument market, including law enforcement, workplace, corrections, original equipment manufacturing (OEM) and consumer markets. In addition, we offer a line of supplies, accessories, services, and training to support customers alcohol testing programs. We sell globally through distributors and sales agents, as well as directly to users. |
3. BASIC AND DILUTED INCOME PER COMMON SHARE
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTE 3 - BASIC AND DILUTED INCOME PER COMMON SHARE | 3. BASIC AND DILUTED INCOME PER COMMON SHARE
We report both basic and diluted net income per share. Basic net income per common share is computed by dividing net income or loss for the period by the weighted average number of common shares outstanding for the period. Diluted net income or loss per common share is computed by dividing the net income for the period by the weighted average number of common and potential common shares outstanding during the period if the effect of the potential common shares is dilutive. The shares used in the calculation of dilutive potential common shares exclude options to purchase shares where the exercise price was greater than the average market price of common shares for the period.
The following table presents the calculation of basic and diluted net income (loss) per share:
|
6. LINE OF CREDIT
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Notes to Financial Statements | |
NOTE 6 - LINE OF CREDIT | 6. LINE OF CREDIT
Our line of credit for $150,000 with Citywide Bank matured on June 1, 2013, and was not renewed. There was no balance due on the line of credit as of June 30, 2013. |
4. STOCKHOLDERS' EQUITY
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTE 4 - STOCKHOLDERS' EQUITY |
4. STOCKHOLDERS EQUITY
The following table summarizes information about employee stock options outstanding and exercisable at June 30, 2013:
Of the 23,000 options exercisable as of June 30, 2013, all are incentive stock options. The exercise price of all options granted through June 30, 2013 has been equal to or greater than the fair market value.
On April 1, 2013 our shareholders approved the adoption of a stock option plan providing for the grant of stock options to purchase up to 150,000 shares of our common stock. None of these options had been granted as of June 30, 2013.
The total number of authorized shares of common stock continues to be 50,000,000, with no change in the par value per share. |