Lifeloc Technologies, Inc SEC Filings

Lifeloc Technologies, Inc. reported higher sales but continued losses for the quarter and six months ended June 30, 2026, while advancing its SpinDetect™ drug-detection platform and increasing leverage. Quarterly revenues were $2.44 million, up 10% from 2025, driven mainly by stronger product sales despite lower royalties and discontinued rental income. Gross profit rose to $1.09 million, with gross margin improving to 45% from 42% on favorable product mix. Operating expenses declined across research and development, sales and marketing, and general and administrative costs, leading to a narrower quarterly net loss of $134,330 versus a loss of $393,639 a year earlier.

For the first half of 2026, revenues were $4.74 million, up 5%, and gross profit increased 13% to $2.08 million, with margins improving to 44%. The six‑month net loss shrank to $287,043 from $686,325 as spending was trimmed while maintaining substantial R&D on SpinDetect™, which is targeted for a limited commercial launch in early 2027. Cash and cash equivalents were $908,208, current liabilities $1.10 million, and total debt included a $1.09 million bank term loan, $797,855 in subordinated debentures, and a new $500,000 related‑party term loan at 10.5% interest secured by substantially all assets. Management believes existing resources under its current plan are sufficient for the next 12 months but acknowledges ongoing operating losses and the potential need for additional capital if sales growth or SpinDetect™ commercialization fall short.

Lifeloc Technologies director Michael Kornelsen increased his stake through a small open-market purchase. On June 16, 2026, he bought 100 shares of common stock at $2.50 per share. After this transaction, he directly owns 1,100 shares and has indirect beneficial ownership of 27,500 shares held by EDCO Partners LLLP.

Lifeloc Technologies CEO and President Wayne Willkomm reported an open-market purchase of common stock. He bought 1,300 shares of Lifeloc Technologies, Inc. at $2.50 per share. After this transaction, he directly owns 41,625 common shares.

The filing also shows an indirect holding of 23,477 common shares that are beneficially held by EDCO Partners LLLP on his behalf. This Form 4 primarily updates the market on his current direct and indirect ownership in Lifeloc Technologies (LCTC).

Lifeloc Technologies is advancing its SpinDetect™ Centrifugal Drug Analyzer from development into validation and early production. The company has completed production tooling for SpinDetect consumable disks, produced and tested first-article disks, made minor mold fixes, and commissioned a cleanroom with an automated reagent-dispensing robot.

Lifeloc plans a staged rollout, first targeting U.S. forensic and certain international markets, with U.S. workplace use following FDA clearance. The initial product will be a qualitative pass/fail delta-9-THC test, with quantitative and multi-drug panels to follow. The SpinDetect reader is expected to list at about $7,495 in the U.S.

Management highlights the system’s focus on measuring psychoactive delta-9-THC separately from inactive metabolites, which they view as a competitive differentiator for roadside and workplace testing. The company is also investing in its core breath alcohol L-series platform, including an OIML-variant of the LX9 device to broaden international reach and improve manufacturing costs.

Lifeloc Technologies, Inc. reported that Assure CPA, LLC resigned as its independent registered public accounting firm on June 3, 2026, after selling substantially all of its assets to Sadler, Gibb & Associates, LLC and ceasing public accounting operations. Assure’s audit reports for 2024 and 2025 contained no adverse opinions, and the company reports no disagreements or reportable events under Regulation S-K.

The company also summarized results of its June 3, 2026 annual meeting. Shareholders elected five directors, ratified the appointment of Assure CPA as independent auditor for fiscal 2026, approved an advisory say-on-pay vote on executive compensation, and adopted Amended and Restated Articles of Incorporation.

Lifeloc Technologies reported first quarter 2026 net revenue of $2.294 million and a net loss of $152,713, or $(0.06) per diluted share. Revenue grew about 1% from the prior year period, while the loss narrowed from $292,686 as gross margin improved to 43% from 40%.

Research and development remained significant at more than 18% of revenue, largely funding the SpinDetect™ Centrifugal Drug Analyzer. The company completed disk production tooling and received first article disks, described as the last enabling step before beta testing. Cash stood at $569,330 as of March 31, 2026, with total assets of $6.74 million.

In May 2026, Lifeloc closed a $500,000 loan from its Chairman and CFO at 10.5% interest, adjustable with prime, with interest-only payments in 2026 and a five-year repayment schedule and no prepayment penalty.

Lifeloc Technologies reported first-quarter 2026 revenue of $2,293,812, up about 1% year over year, driven by slightly higher product sales. Gross profit rose to $987,074, with product gross margin improving to 43% from 40% as cost of sales declined.

The company still posted a net loss of $152,713, but this was narrower than the $292,686 loss a year earlier, with lower research, development, and sales and marketing expenses helping offset higher interest costs. Cash and cash equivalents were $569,330 at March 31, 2026, versus current liabilities of $1,064,101, leaving a modest liquidity cushion.

Lifeloc continues to depend on its core breathalyzer business while investing heavily in its SpinDetect™ drug-detection platform, which it aims to launch commercially in 2026. After quarter-end it added a $500,000 secured loan from its CFO and Board Chairman at 10.5% interest to support development, increasing reliance on related-party financing and leverage.

Lifeloc Technologies, Inc. entered into a related-party loan transaction with its Chief Financial Officer and Chairman, Vern Kornelsen. The company issued a $500,000 Promissory Note dated May 1, 2026 to fund continued development of its SpinDetect™ product.

The Note carries an initial interest rate of 10.5% per annum, with interest-only payments through December 31, 2026. Starting January 31, 2027, it converts to sixty equal monthly payments of principal and interest, with final maturity on December 31, 2031, and an interest rate that may increase with changes in the prime rate.

The Note may be prepaid at any time without penalty and is secured by a Deed of Trust on Lifeloc’s principal office at 12441 West 49th Avenue, Wheat Ridge, Colorado, and by a security interest in substantially all company assets, both subordinated to existing senior indebtedness to Citywide Banks.

Lifeloc Technologies, Inc. is asking shareholders to approve several items at its June 3, 2026 annual meeting, including electing five directors, ratifying Assure CPA as auditor and holding an advisory “Say on Pay” vote on executive compensation.

A key proposal would adopt Amended and Restated Articles of Incorporation that both consolidate prior amendments and add a new foreign ownership provision. The board could redeem shares held by holders reasonably determined to be nationals or entities of U.S. Department of Energy “countries of risk,” at fair market value based on a 30‑day average closing bid price, after written notice and a 90‑day cure opportunity.

The proxy also details board and committee structure, director independence, modest director fees of $1,530 each for 2025, and 2025 executive pay, including total compensation of $302,518 for the CEO and $97,920 for the CFO, alongside a pay‑versus‑performance table showing recent net losses.