Lifeloc Reports 2022 Full Year Results

Rhea-AI Summary

Lifeloc Technologies (LCTC) reported financial results for the fiscal year 2022, revealing net revenue of $8.482 million but a net loss of $456 thousand, or ($0.19) per diluted share. This contrasts with 2021's revenue of $7.054 million and net profit of $676 thousand, or $0.27 per diluted share. Revenue grew by 20% year-over-year, returning to pre-pandemic levels. Investment in research and development, particularly for SpinDx, alongside supply chain disruptions, contributed to the net loss. The new LX9 and LT7 devices saw a remarkable 360% sales growth in 2022, meeting advanced market standards. The future focus remains on rapid drug detection capabilities.

Positive

• 20% increase in revenue YoY, reaching $8.482 million.
• L-series devices, including LX9 and LT7, saw 360% sales growth.
• Anticipation of commercialization for SpinDx saliva testing system in 2024.

Negative

• Net loss of $456 thousand in 2022 compared to net profit in 2021.
• Supply chain disruptions and component inflation increased operational costs.
• Development delays for the R.A.D.A.R. 300 device due to resource allocation.

WHEAT RIDGE, CO / ACCESSWIRE / March 14, 2023 / 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 2022 fiscal year ended December 31, 2022.

2022 Financial Highlights

Lifeloc Technologies posted annual net revenue of $8.482 million resulting in a net loss of $456 thousand in 2022, or ($0.19) per diluted share. These results compare to net revenue of $7.054 million for 2021, with net profit of $676 thousand, or $0.27 per diluted share. The 2022 results included a one-time gain of $108 thousand from the employee retention tax credit, while the 2021 results included a one-time gain of $936 thousand from the forgiveness of both the 2020 and 2021 Paycheck Protection Program loans through the SBA. Revenues for 2022 grew by 20% over 2021 sales, returning to pre-pandemic sales levels.

Increasing research and development investment for SpinDx as well as supply chain disruption contributed to the net loss in this quarter despite increased revenue. Supply chain delays have added some costs, and component inflation has added more. The company implemented price increases during the year in response to rising costs, with additional increases planned for 2023.

After releasing the R.A.D.A.R.® 200 device we found several features that needed additional refinement. Since they would require significant development time and staff commitments, we elected to arrange with a third party to work on proof of concept, which if successful, will result in the R.A.D.A.R. 300 device. This allows us to continue our focus on SpinDx and reduces the expense we were incurring to support R.A.D.A.R. development.

New platform LX9 and LT7 devices are making significant contributions to revenue, as demonstrated by their 360% sales growth in 2022 versus 2021. The features and performance of the new L-series products have driven penetration by meeting previously unaddressable market needs, such as wider temperature ranges and fast customization that incorporates local languages. We expect that most L-series sales will be incremental to FC-series devices rather than displacing FC sales. The L-series devices are meeting the requirements of the most modern registration standards, such as SAI's (Standards Australia International) latest AS 3547:2019 standards for Breath Alcohol Detectors.

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 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 testing to get a rapid and quantitative measure for a panel of drugs of abuse, beginning with a device that allows for detection of delta-9-THC (the major intoxicating component of the cannabis plant) from a test subject's saliva. Testing has commenced to validate the SpinDx technology against the definitive standard liquid chromatography-mass spectroscopy (LCMS) measurement utilizing human samples. The LCMS data are validating the SpinDx test results on real-world human saliva tests at a limit of detection of approximately 10 ng/ml. Work continues to improve the robustness and convenience of operation. Following the release of the SpinDx saliva testing system, which is expected this year and is projected to result in commercialization in 2024, development will accelerate on combining our LX9 breathalyzer with the THC SpinDx detection unit with their coupling to be our marijuana breathalyzer system.

"We saw sales recover in 2022 back to pre-pandemic levels, even though a few sales were pushed into 2023 because of component delays," commented Dr. Wayne Willkomm, President and CEO. "We are excited to see substantial sales growth with the L-series products. These sales are expected to continue to grow with additional certifications and expanded features, and to provide the continued funding to accelerate the SpinDx product platform across the finish line to commercialization. We expect our research and development expenses will continue to rise in this final push. Accurate and rapid drug screening continues to be an unmet market need and, we believe, our best opportunity for significant, long term value creation."

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.

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.

R.A.D.A.R.® is a registered trademark 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, 2022			December 31, 2021
CURRENT ASSETS:
Cash		$	2,352,754		$	2,571,668
Accounts receivable, net			627,919			562,092
Inventories, net			2,732,463			2,668,789
Employee retention credit receivable			107,575			-
Prepaid expenses and other			58,203			56,897
Total current assets			5,878,914			5,859,446
PROPERTY AND EQUIPMENT, at cost:
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			1,147,992			958,785
Training courses			432,375			432,375
Office equipment, software and space modifications			216,618			216,618
Sales and marketing equipment and space modifications			226,356			226,356
Research and development equipment, software and space modifications			480,684			456,685
Less accumulated depreciation			(3,072,961)			(2,518,966)
Total property and equipment, net			2,247,239			2,588,028
OTHER ASSETS:
Patents, net			69,679			134,428
Deposits and other			500			163,480
Deferred taxes			321,429			204,449
Total other assets			391,608			502,357
Total assets		$	8,517,761		$	8,949,831
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable		$	413,957		$	445,985
Term loan payable, current portion			50,028			48,513
Customer deposits			201,031			170,952
Accrued expenses			344,944			298,530
Deferred revenue, current portion			80,222			71,604
Reserve for warranty expense			46,500			46,500
Total current liabilities			1,136,682			1,082,084
TERM LOAN PAYABLE, net of current portion and
Debt issuance costs			1,219,677			1,267,551
DEFERRED REVENUE, net of current portion			6,191			6,430
Total liabilities			2,362,550			2,356,065
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, no par value; 50,000,000 shares
Authorized, 2,454,116 shares outstanding			4,668,014			4,650,812
Retained earnings			1,487,197			1,942,954
Total stockholders' equity			6,155,211			6,593,766
Total liabilities and stockholders' equity		$	8,517,761		$	8,949,831

LIFELOC TECHNOLOGIES, INC.
Statements of Income
		Years Ended December 31,
REVENUES:		2022			2021
Product sales		$	8,350,463		$	6,898,955
Royalties			40,674			67,526
Rental income			90,856			87,949
Total			8,481,993			7,054,430
COST OF SALES			5,407,042			3,994,334
GROSS PROFIT			3,074,951			3,060,096
OPERATING EXPENSES:
Research and development			1,385,927			1,213,482
Sales and marketing			1,122,526			1,003,983
General and administrative			1,216,843			1,111,544
Total			3,725,296			3,329,009
OPERATING INCOME (LOSS)			(650,345)			(268,913)
OTHER INCOME (EXPENSE):
Forgiveness of Paycheck Protection loan			-			936,444
Employee retention credit			107,575			-
Interest income			13,114			3,401
Interest expense			(43,081)			(51,272)
Total			77,608			888,573
NET INCOME (LOSS) BEFORE PROVISION FOR TAXES			(572,737)			619,660
BENEFIT FROM FEDERAL AND STATE INCOME TAXES			116,980			56,307
NET INCOME (LOSS)		$	(455,757)		$	675,967
NET INCOME (LOSS) PER SHARE, BASIC		$	(0.19)		$	0.28
NET INCOME (LOSS) PER SHARE, DILUTED		$	(0.19)		$	0.27
WEIGHTED AVERAGE SHARES, BASIC			2,454,116			2,454,116
WEIGHTED AVERAGE SHARES, DILUTED			2,454,116			2,518,895

Lifeloc Technologies, Inc.
Statements of Stockholders' Equity
		Years Ended December 31,
		2022			2021
Total stockholders' equity, beginning balances		$	6,593,766		$	5,900,642
Common stock (no shares issued during periods):
Beginning balances			4,650,812			4,633,655
Stock based compensation expense related
to stock options			17,202			17,157
Ending balances			4,668,014			4,650,812
Retained earnings:
Beginning balances			1,942,954			1,266,987
Net income (loss)			(455,757)			675,967
Ending balances			1,487,197			1,942,954
Total stockholders' equity, ending balances		$	6,155,211		$	6,593,766

LIFELOC TECHNOLOGIES, INC.
Statements of Cash Flows
			Years Ended December 31,
CASH FLOWS FROM OPERATING ACTIVITIES:			2022			2021
Net income (loss)			$	(455,757)		$	675,967
Adjustments to reconcile net income to net cash
provided from (used in) operating activities-
Forgiveness of Paycheck Protection loans				-			(936,444)
Depreciation and amortization				632,418			254,823
Provision for doubtful accounts, net change				-			(49,000)
Provision for inventory obsolescence, net change				214,156			(5,000)
Deferred taxes, net change				(116,980)			(56,307)
Stock based compensation expense related to
stock options				17,202			17,157
Changes in operating assets and liabilities-
Accounts receivable				(65,827)			10,511
Inventories				(277,830)			(165,663)
Employee retention credit and income taxes receivable				(107,575)			220,657
Prepaid expenses and other				(1,306)			21,065
Deposits and other				162,980			1,318
Accounts payable				(32,028)			112,134
Customer deposits				30,079			15,657
Accrued expenses				46,414			32,264
Deferred revenue				8,379			33,804
Net cash provided from (used in)
operating activities				54,325			182,943
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Purchases of property and equipment				(213,206)			(265,867)
Patent filing expense				(9,370)			(2,609)
Net cash (used in) investing activities				(222,576)			(268,476)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Principal payments made on term loan				(50,663)			(1,341,059)
Proceeds from refinancing term loan				-			1,350,000
Cost of refinancing term loan				-			(18,157)
Proceeds from Paycheck Protection loan (round 2)				-			471,347
Net cash provided from (used in) financing
activities				(50,663)			462,131
NET INCREASE (DECREASE) IN CASH				(218,914)			376,598
CASH, BEGINNING OF PERIOD				2,571,668			2,195,070
CASH, END OF PERIOD			$	2,352,754		$	2,571,668
SUPPLEMENTAL INFORMATION:
Cash paid for interest			$	38,777		$	39,815
Cash paid for income tax			$	-		$	-

SOURCE: Lifeloc Technologies, Inc.

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https://www.accesswire.com/743568/Lifeloc-Reports-2022-Full-Year-Results

FAQ

What are the financial results for Lifeloc Technologies for 2022?

In 2022, Lifeloc Technologies reported a net revenue of $8.482 million and a net loss of $456 thousand.

How much did Lifeloc Technologies' revenue grow in 2022?

Lifeloc Technologies' revenue grew by 20% from $7.054 million in 2021 to $8.482 million in 2022.

What factors contributed to Lifeloc Technologies' net loss in 2022?

The net loss was attributed to increased research and development costs and supply chain disruptions.

When is the SpinDx saliva testing system expected to be commercialized?

The SpinDx saliva testing system is expected to be commercialized in 2024.

How did the LX9 and LT7 devices perform in 2022?

The LX9 and LT7 devices experienced a 360% increase in sales in 2022 compared to the previous year.