Lifeloc Technologies Reports 2024 Full Year Results

Rhea-AI Summary

Lifeloc Technologies (OTC PINK:LCTC) reported its 2024 fiscal year results, showing an 8% revenue decline to $8.538 million from $9.330 million in 2023. The company posted a net loss of ($1.053) million, or ($0.41) per diluted share, compared to a net profit of $205.6 thousand in 2023. Gross margin decreased to 40.4% from 43.3%.

The decline was attributed to normalized demand following 2023's pent-up demand and inflation's impact on customer budgets. The company's L-series devices (LX9 and LT7) are gaining market penetration with features like smartphone pairing and local language customization.

Lifeloc is heavily investing in SpinDx technology development, a 'Lab on a Disk' platform for rapid drug detection. Beta testing of the SpinDx saliva testing system for THC detection is planned for Q2 2025, with commercial launch projected for early 2026. To support development, the company secured a $750,000 debenture in late 2024 and an additional $75,000 in Q1 2025.

Positive

• Development of SpinDx technology progressing with beta testing planned for Q2 2025
• Secured $825,000 in total financing for SpinDx development
• L-series devices gaining market penetration with advanced features
• SpinDx successfully validated against LCMS for multiple drug detection

Negative

• 8% revenue decline to $8.538 million in 2024
• Net loss of $1.053 million compared to $205.6K profit in 2023
• Gross margin declined to 40.4% from 43.3%
• Increased costs and record R&D investment impacting profitability

News Market Reaction

+1.49%

1 alert

+1.49% News Effect

On the day this news was published, LCTC gained 1.49%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

WHEAT RIDGE, CO / ACCESS Newswire / March 28, 2025 / Lifeloc Technologies, Inc. (OTC PINK:LCTC), a global leader in the development and manufacturing of breath alcohol testing devices, has announced financial results for the 2024 fiscal year ended December 31, 2024.

2024 Financial Highlights
Lifeloc Technologies posted annual net revenue of $8.538 million resulting in a net loss of ($1.053) million in 2024, or ($0.41) per diluted share. These results compare to net revenue of $9.330 million for 2023, with net profit of $205.6 thousand, or $0.08 per diluted share. Revenues for 2024 declined by 8% versus 2023, in part because revenue in 2023 reflected pent-up demand that had leveled out by 2024, and in part from the adverse increasing impact of inflation on customer budgets. Total gross margin in 2024 declined to 40.4% versus 43.3% for 2023, due to a combination of reduced volume as well as component inflation. The sales decline, increased costs, as well as record research and development investment all contributed to the loss for the year. We expect more broadly applied price increases to improve margins in 2025.

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 certifications of these units to add 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 performing validation testing of the microfluidic action and full drug assay utilizing the current disk design. This testing has resulted in the need for some additional design work before moving into beta testing and production tooling.

We plan to start beta testing of our SpinDx saliva testing system utilizing the delta-9-THC disks in the second quarter of 2025 using prototype readers as shown in the photograph below. 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 saliva, 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 saliva 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.

"Lifeloc has made great progress in 2024. We have invested significant resources into pushing this SpinDx development towards launch. This included choosing long term value creation over short term profitability to fund this opportunity. We anticipate continued high research and development expenses in this final push toward commercialization. And we look forward to beginning to show off the device to key customers at upcoming industry trade shows," commented Dr. Wayne Willkomm, President and CEO.

Because of the high research and development investment and the need for manufacturing equipment for SpinDx, the company has sought to strengthen its financial resources. At the end of 2024, the company closed on a $750,000 debenture, followed by an additional investment of $75,000 on the same terms in Q1 2025, to assist in the SpinDx development prior to moving forward into production and commercialization.

About Lifeloc Technologies
Lifeloc Technologies, Inc. (OTC PINK: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.

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.

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.
Balance Sheets

ASSETS

		December 31, 2024				December 31, 2023
CURRENT ASSETS:
Cash and cash equivalents		$	1,243,746			$	1,766,621
Accounts receivable, net			732,541				812,126
Inventories, net			2,996,397				3,024,834
Federal and state income taxes receivable			80,560				-
Prepaid expenses and other			40,045				105,967
Total current assets			5,093,289				5,709,548
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				1,154,803
Training courses			432,375				432,375
Office equipment, software and space modifications			254,333				216,618
Sales and marketing equipment and space modifications			226,356				226,356
Research and development equipment, software and space modifications			787,664				480,684
Research and development equipment, software and space modifications not in service			128,007				-
Less accumulated depreciation			(3,613,452	)			(3,326,837	)
Total property and equipment, net			2,381,297				2,000,174
OTHER ASSETS:
Patents, net			78,723				64,439
Deposits and other			12,261				111,157
Deferred income taxes			1,159,199				806,652
Total other assets			1,250,183				982,248
Total assets		$	8,724,769			$	8,691,970
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable		$	251,627			$	402,231
Term loan payable, current portion			53,195				51,588
Income taxes payable			-				44,952
Customer and tenant deposits			43,814				195,719
Accrued expenses			293,981				329,311
Deferred revenue, current portion			54,458				79,036
Product warranty reserve			46,500				46,500
Total current liabilities			743,575				1,149,337
TERM LOAN PAYABLE, net of current portion and
debt issuance costs			1,119,152				1,170,243
SUBORDINATED DEBENTURE PAYABLE, net of current
portion and debt issuance costs			630,000				-
DEFERRED REVENUE, net of current portion			6,165				11,565
Total liabilities			2,498,892				2,331,145
COMMITMENTS AND CONTINGENCIES (Note 6)
STOCKHOLDERS' EQUITY:
Common stock, no par value; 50,000,000 shares authorized, 2,664,116
shares outstanding (2,454,116 outstanding at December 31, 2023)			5,586,014				4,668,014
Retained earnings			639,863				1,692,811
Total stockholders' equity			6,225,877				6,360,825
Total liabilities and stockholders' equity		$	8,724,769			$	8,691,970

LIFELOC TECHNOLOGIES, INC.
Statements of Income (Loss)

		Years Ended December 31,
REVENUES:		2024				2023
Product sales		$	8,470,985			$	9,228,843
Royalties			34,382				32,299
Rental income			32,778				68,424
Total			8,538,145				9,329,566
COST OF SALES			5,092,046				5,289,896
GROSS PROFIT			3,446,099				4,039,670
OPERATING EXPENSES:
Research, development, and sustaining engineering			2,242,869				1,835,164
Sales and marketing			1,358,211				1,225,381
General and administrative			1,253,236				1,170,260
Total			4,854,316				4,230,805
OPERATING (LOSS)			(1,408,217	)			(191,135	)
OTHER INCOME (EXPENSE):
Interest income			42,867				70,062
Interest expense			(40,145	)			(41,566	)
Total			2,722				28,496
NET (LOSS) BEFORE PROVISION FOR TAXES			(1,405,495	)			(162,639	)
BENEFIT FROM FEDERAL AND STATE INCOME TAXES			352,547				368,253
NET INCOME (LOSS)		$	(1,052,948	)		$	205,614
NET INCOME (LOSS) PER SHARE, BASIC		$	(0.41	)		$	0.08
NET INCOME (LOSS) PER SHARE, DILUTED		$	(0.41	)		$	0.08
WEIGHTED AVERAGE SHARES, BASIC			2,546,493				2,454,116
WEIGHTED AVERAGE SHARES, DILUTED			2,546,493				2,454,116

Lifeloc Technologies, Inc.
Statements of Changes in Stockholders' Equity
For The Years Ended December 31, 2024 and 2023

		Common Stock Shares				Common Stock Amount				Retained Earnings				Total
Balance, December 31, 2022			2,454,116			$	4,668,014			$	1,487,197			$	6,155,211
Net income (loss)			-				-				205,614				205,614
Balance, December 31, 2023			2,454,116				4,668,014				1,692,811				6,360,825
Issuance of common stock for cash, net of issuance costs			210,000				798,000				-				798,000
Warrants issued with subordinated debenture			-				120,000				-				120,000
Net (loss)			-				-				(1,052,948	)			(1,052,948	)
Balance, December 31, 2024			2,664,116			$	5,586,014			$	639,863			$	6,225,877

LIFELOC TECHNOLOGIES, INC.
Statements of Cash Flows

		Years Ended December 31,
CASH FLOWS FROM OPERATING ACTIVITIES:		2024				2023
Net income (loss)		$	(1,052,948	)		$	205,614
Adjustments to reconcile net income (loss) to net cash
(used in) operating activities-
Depreciation and amortization			298,293				264,824
Provision for doubtful accounts, net change			2,000				-
Provision for inventory obsolescence, net change			70,000				-
Deferred taxes, net change			(352,547	)			(485,223	)
Changes in operating assets and liabilities-
Accounts receivable			77,585				(184,207	)
Inventories			(41,563	)			(292,371	)
Federal and state income taxes receivable			(80,560	)			107,575
Prepaid expenses and other			65,922				(47,764	)
Deposits and other			98,896				(110,657	)
Accounts payable			(150,604	)			(11,726	)
Customer and tenant deposits			(151,905	)			(5,312	)
Income taxes payable			(44,952	)			44,952
Accrued expenses			(35,330	)			(15,633	)
Deferred revenue			(29,978	)			4,188
Net cash (used in) operating
activities			(1,327,691	)			(525,740	)
CASH FLOWS (USED IN) INVESTING ACTIVITIES:
Purchases of property, plant and equipment			(539,731	)			(6,811	)
Purchases of research and development equipment, software and
space modifications not in service			(128,007	)			-
Patent filing cost			(21,708	)			(1,404	)
Net cash (used in) investing activities			(689,446	)			(8,215	)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Principal payments made on term loan			(53,738	)			(52,178	)
Proceeds from issuance of subordinated debenture			750,000				-
Proceeds from issuance of 210,000 shares of common stock			798,000				-
Net cash provided from (used in) financing
activities			1,494,262				(52,178	)
NET (DECREASE) IN CASH			(522,875	)			(586,133	)
CASH, BEGINNING OF YEAR			1,766,621				2,352,754
CASH, END OF YEAR		$	1,243,746			$	1,766,621
SUPPLEMENTAL INFORMATION:
Cash paid for interest		$	35,891			$	37,262
Cash paid for income tax		$	125,512			$	72,996
NON-CASH FINANCING AND INVESTING ACTIVITIES:
Warrants issued with subordinated debenture		$	120,000			$	-

SOURCE: Lifeloc Technologies, Inc.

View the original press release on ACCESS Newswire

FAQ

What caused LCTC's revenue decline in 2024?

LCTC's 8% revenue decline was due to normalized demand after 2023's pent-up demand and inflation's impact on customer budgets.

When will LCTC launch its SpinDx THC testing system commercially?

LCTC plans to launch the SpinDx THC testing system commercially in early 2026, with beta testing starting in Q2 2025.

What financing did LCTC secure for SpinDx development?

LCTC secured a $750,000 debenture in late 2024 and an additional $75,000 in Q1 2025 for SpinDx development.

How much was LCTC's net loss per share in 2024?

LCTC reported a net loss of $0.41 per diluted share in 2024, compared to a profit of $0.08 per share in 2023.

What drugs can LCTC's SpinDx technology detect?

SpinDx can detect delta-9-THC, cocaine, fentanyl, amphetamine, methamphetamine, morphine, MDMA, and benzodiazepines.