EX-99.1 2 ex99x1.htm EXHIBIT 99.1

Exhibit 99.1

 

 

Lifeloc Reports Second Quarter 2025 Results

WHEAT RIDGE, Colo., August 11, 2025 -- Lifeloc Technologies, Inc. (OTCID: LCTC), a global leader in the development and manufacturing of breath alcohol and drug testing devices, has announced financial results for the quarter ended June 30, 2025.

Second Quarter Financial Highlights

Lifeloc posted quarterly net revenue of $2.219 million in the second quarter of 2025, resulting in a quarterly net loss of $(394) thousand, or $(0.14) per diluted share. These results compare to net revenue of $2.387 million and quarterly net loss of $(298) thousand, or $(0.12) per diluted share in the second quarter of 2024. Revenue for the quarter declined 7% versus the second quarter last year. Six-month net revenues of $4.496 million and a net loss of $(686) thousand, or $(0.25) per diluted share, compared to net revenue of $4.541 million and a net loss of $(582) thousand, or $(0.24) per diluted share, for the same six months of 2024. Total gross margin in the second quarter remained about the same, 41.7% versus 41.6% for the same quarter last year. For the first six months of 2025 gross margin was 40.8% versus 40.3% for the same period last year, with price increases largely offsetting inflation and tariff costs. The research and development investment for the quarter remained high at $623 thousand, primarily for SpinDx development, resulting in the current period loss.

We believe our core alcohol detection product line-up is strong. The L-series LX9 and LT7 units have features and performance that are driving market penetration by meeting previously unaddressable market needs, such as smart phone pairing, wider temperature use ranges and fast customization that incorporates local languages. We expect that sales of our newer L-series devices 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. We continue to evolve the capability and add certifications of these units to create more value and gain market share. Our FC-series devices remain popular with many law enforcement and international organizations. Our Easycal® automated calibration station, the only automated calibration available for portable breath alcohol testers, builds valuable protection around our brand and contributes to market share gains across the board, especially for our 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 therefore 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. SpinDx has been demonstrated in our laboratory to effectively detect for delta-9-THC, cocaine, fentanyl, amphetamine, methamphetamine, morphine, MDMA, and benzodiazepines. Testing has validated the SpinDx measurement technology against the definitive standard liquid chromatography-mass spectroscopy (LCMS) measurement utilizing human samples.  The LCMS data have validated 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. We are currently updating disk design to accomplish the entire analysis on the disk as well as optimizing drug assays.

 
 

We are beginning beta testing of our SpinDx oral fluid testing system utilizing the delta-9-THC only tests using a prototype reader as shown in the photograph below. An agreement for beta testing is in place, and the test logistics are being finalized. 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 oral fluid, followed by a disk for a panel of other drugs. Commercial launch of our first SpinDx application is projected to occur in early 2026. Following initial commercialization, we expect more offerings from this technology platform to include expanded drug panels and samples collected from blood and breath. Following the release of our SpinDx oral fluid testing system, we expect to accelerate development of combining our LX9 breathalyzer with the THC SpinDx detection unit, to produce our roadside marijuana breathalyzer system. The current pace of development may require additional financing to complete.

“SpinDx prototypes are starting to travel to trade shows for key customer demonstrations. We are pleased to build customer engagement as the product gets closer to launch. We have identified rapid drug testing as our biggest growth opportunity, and we believe that SpinDx will play an important role in addressing this unmet market need,” commented Dr. Wayne Willkomm, President and CEO.

Additionally, in alignment with the evolving structure of the OTC Markets, Lifeloc has been approved for trading on the OTCID, which is the new market tier of the OTC Markets, and trading commenced July 1, 2025. OTCID is the replacement for fully reporting companies from the OTC Pink Current Market, which ceased on the same date. The new OTCID standards may create greater market confidence than the OTC Pink and allow a more liquid marketplace for our shareholders.

 

About Lifeloc Technologies

Lifeloc Technologies, Inc. (OTCID: 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, market liquidity for our shares, 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 (Unaudited)

         
ASSETS        
   June 30, 2025   December 31, 2024 
CURRENT ASSETS:          
Cash and cash equivalents  $995,750   $1,243,746 
Accounts receivable, net   765,730    732,541 
Inventories, net   2,988,752    2,996,397 
Federal and state income taxes receivable   55,531    80,560 
Prepaid expenses and other   160,079    40,045 
      Total current assets   4,965,842    5,093,289 
PROPERTY, PLANT AND EQUIPMENT:          
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   1,349,839    1,349,839 
Training courses   432,375    432,375 
Office equipment, software and space modifications   254,333    254,333 
Sales and marketing equipment and space modifications   231,818    226,356 
Research and development equipment, software and space modifications   805,012    787,664 
Research and development equipment, software and space modifications not in service   347,448    128,007 
Less accumulated depreciation   (3,826,061)   (3,613,452)
     Total property and equipment, net   2,410,939    2,381,297 
OTHER ASSETS:          
Patents, net   74,913    78,723 
Deposits and other   12,261    12,261 
Deferred income taxes   1,159,199    1,159,199 
     Total other assets   1,246,373    1,250,183 
     Total assets  $8,623,154   $8,724,769 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

          
CURRENT LIABILITIES:          
Accounts payable  $393,046   $251,627 
Term loan payable, current portion   54,016    53,195 
Subordinated debentures payable, current portion   16,645     
Customer and tenant deposits   37,628    43,814 
Accrued expenses   349,397    293,981 
Deferred revenue, current portion   58,862    54,458 
Product warranty reserve   46,500    46,500 
      Total current liabilities   956,094    743,575 
TERM LOAN PAYABLE, net of current portion and
debt issuance costs
   1,086,062    1,119,152 
SUBORDINATED DEBENTURES PAYABLE, net of current portion and
debt issuance costs
   687,041    630,000 
DEFERRED REVENUE, net of current portion   6,105    6,165 
      Total liabilities   2,735,302    2,498,892 
COMMITMENTS AND CONTINGENCIES (Note 6)         
STOCKHOLDERS' EQUITY:          
Common stock, no par value; 50,000,000 shares authorized, 2,752,616
  shares outstanding (2,664,116 outstanding at December 31, 2024)
   5,934,314    5,586,014 
Retained earnings (deficit)   (46,462)   639,863 
      Total stockholders' equity   5,887,852    6,225,877 
      Total liabilities and stockholders' equity  $8,623,154   $8,724,769 
           

 
 

LIFELOC TECHNOLOGIES, INC.

Condensed Statements of Income (Loss) (Unaudited)

         
   Three Months Ended June 30, 
REVENUES:  2025   2024 
Product sales  $2,191,260   $2,370,433 
Royalties   19,800    8,824 
Rental income   8,316    8,073 
Total   2,219,376    2,387,330 
           
COST OF SALES   1,294,777    1,393,734 
           
GROSS PROFIT   924,599    993,596 
           
OPERATING EXPENSES:          
Research, development, and sustaining engineering   623,262    662,276 
Sales and marketing   339,528    365,374 
General and administrative   340,074    363,008 
Total   1,302,864    1,390,658 
           
OPERATING (LOSS)   (378,265)   (397,062)
           
OTHER INCOME (EXPENSE):          
Interest income   10,931    8,677 
Interest expense   (26,305)   (10,057)
Total   (15,374)   (1,380)
           
NET (LOSS) BEFORE PROVISION FOR TAXES   (393,639)   (398,442)
           
BENEFIT FROM FEDERAL AND STATE INCOME TAXES       100,454 
           
NET (LOSS)  $(393,639)  $(297,988)
           
NET (LOSS) PER SHARE, BASIC  $(0.14)  $(0.12)
           
NET  (LOSS) PER SHARE, DILUTED  $(0.14)  $(0.12)
           
WEIGHTED AVERAGE SHARES, BASIC   2,752,616    2,454,116 
           
WEIGHTED AVERAGE SHARES, DILUTED   2,752,616    2,454,116 
           

 
 

LIFELOC TECHNOLOGIES, INC.

Condensed Statements of Income (Loss) (Unaudited)

         
   Six Months Ended June 30, 
REVENUES:  2025   2024 
Product sales  $4,454,307   $4,504,867 
Royalties   25,471    19,760 
Rental income   16,632    16,146 
Total   4,496,410    4,540,773 
           
COST OF SALES   2,663,245    2,711,870 
           
GROSS PROFIT   1,833,165    1,828,903 
           
OPERATING EXPENSES:          
Research, development, and sustaining engineering   1,092,942    1,217,875 
Sales and marketing   674,084    710,383 
General and administrative   724,952    677,934 
Total   2,491,978    2,606,192 
           
OPERATING (LOSS)   (658,813)   (777,289)
           
OTHER INCOME (EXPENSE):          
Interest income   23,288    26,349 
Interest expense   (50,800)   (20,207)
Total   (27,512)   6,142 
           
NET (LOSS) BEFORE PROVISION FOR TAXES   (686,325)   (771,147)
           
BENEFIT FROM FEDERAL AND STATE INCOME TAXES       189,353 
           
NET (LOSS)  $(686,325)  $(581,794)
           
NET (LOSS) PER SHARE, BASIC  $(0.25)  $(0.24)
           
NET (LOSS) PER SHARE, DILUTED  $(0.25)  $(0.24)
           
WEIGHTED AVERAGE SHARES, BASIC   2,723,768    2,454,116 
           
WEIGHTED AVERAGE SHARES, DILUTED   2,723,768    2,454,116 
           

 
 

 LIFELOC TECHNOLOGIES, INC.
Condensed Statements of Changes in Stockholders' Equity (Unaudited)

                 
   Common Stock Shares   Common Stock Amount   Retained Earnings   Total 
Balance, December 31, 2023   2,454,116   $4,668,014   $1,692,811   $6,360,825 
Issuance of shares from option exercise                
Warrants issued with subordinated
  debenture
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss)           (283,806)   (283,806)
Ending balance, March 31, 2024   2,454,116    4,668,014    1,409,005    6,077,019 
Net (loss)           (297,988)   (297,988)
Ending balance, June 30, 2024   2,454,116   $4,668,014   $1,111,017   $5,779,031 
                     
Beginning balance, December 31, 2024   2,664,116   $5,586,014   $639,863   $6,225,877 
Issuance of shares from option exercise   88,500    336,300        336,300 
Warrants issued with subordinated
  debenture
 
 
 
 
 
 
 
 
 
 
 
 
12,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12,000
 
 
Net (loss)           (292,686)   (292,686)
Ending balance, March 31, 2025   2,752,616    5,934,314    347,177    6,281,491 
Net (loss)           (393,639)   (393,639)
Ending balance, June 30, 2025   2,752,616   $5,934,314   $(46,462)  $5,887,852 
                     

 

 
 

LIFELOC TECHNOLOGIES, INC.

Condensed Statements of Cash Flows (Unaudited)

         
   Six Months Ended June 30, 
CASH FLOWS FROM OPERATING ACTIVITIES:  2025   2024 
Net (loss)  $(686,325)  $(581,794)
Adjustments to reconcile net income (loss) to net cash (used in) operating activities-          
   Depreciation and amortization   216,419    114,619 
   Provision for doubtful accounts, net change       (3,175)
   Provision for inventory obsolescence, net change       (35,000)
   Deferred taxes, net change       (189,353)
   Amortization of debt issuance costs   5,886      
Changes in operating assets and liabilities-          
   Accounts receivable   (33,189)   (16,200)
   Inventories   7,645    97,763 
   Federal and state income taxes receivable   25,029    (40,280)
   Prepaid expenses and other   (120,034)   (70,961)
   Deposits and other       76,367 
   Accounts payable   141,419    57,329 
   Income taxes payable       (44,952)
   Customer and tenant deposits   (6,186)   (26,804)
   Accrued expenses   55,416    (40,896)
   Deferred revenue   4,344    (18,972)
           Net cash (used in) operating activities   (389,576)   (722,309)
           
CASH FLOWS (USED IN) INVESTING ACTIVITIES:          
Purchases of property and equipment   (22,810)   (263,937)
Purchases of research and development equipment, software
and space modifications not in service
   (219,441)   (227,354)
Patent filing expense       (21,708)
           Net cash (used in) investing activities   (242,251)   (512,999)
           
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:          
Principal payments made on term loan   (27,469)   (26,671)
Proceeds from issuance of subordinated debenture   75,000     
Issuance of shares from option exercise   336,300     
           Net cash provided from (used in) financing activities   383,831    (26,671)
           
NET (DECREASE) IN CASH   (247,996)   (1,261,979)
           
CASH, BEGINNING OF PERIOD   1,243,746    1,766,621 
           
CASH, END OF PERIOD  $995,750   $504,642 
           
SUPPLEMENTAL INFORMATION:          
Cash paid for interest  $44,914   $18,105 
           
Cash paid for income tax  $150   $40,280 
           
Income tax refund received  $25,179   $ 
Non-cash financing and investing activities: warrants issued
with subordinated debenture
  $12,000   $