Lifeloc Reports First Quarter 2022 Results

Rhea-AI Summary

Lifeloc Technologies, Inc. (OTC: LCTC) reported Q1 2022 results with net revenue of $2.161 million and a net loss of $(145) thousand per diluted share, compared to a profit of $403 thousand in Q1 2021. The revenue increased by 19% due to demand recovery post-COVID and new product adoption. The company is investing in R&D, impacting profitability. Strong sales growth is seen in the new LX9 and LT7 devices. The aim is to commercialize the SpinDx technology for rapid drug testing, with anticipated initial sales within the year.

Positive

• Revenue increased by 19% year-over-year.
• Strong sales growth in LX9 and LT7 devices.
• Focus on significant product pipeline for future revenue.
• Anticipation of SpinDx technology commercialization within the year.

Negative

• Net loss of $(145) thousand in Q1 2022.
• High R&D expenses affecting short-term profitability.

WHEAT RIDGE, Colo., May 11, 2022  /PRNewswire/ -- Lifeloc Technologies, Inc. (OTC: LCTC), a global leader in the development and manufacturing of breath alcohol and drug testing devices, has announced financial results for the first quarter ended March 31, 2022.

First Quarter Financial Highlights

Lifeloc posted quarterly net revenue of $2.161 million resulting in a quarterly net loss of $(145) thousand, or $(0.06) per diluted share.  These results compare to net revenue of $1.810 million and quarterly net profit of $403 thousand, or $0.16 per diluted share in the first quarter of 2021.  The first quarter 2021 results include a gain of $465 thousand from the SBA Paycheck Protection Program loan forgiveness.  Revenue for the quarter increased by 19% versus the first quarter last year, primarily through demand recovery from the COVID-19 global pandemic as well as new product adoption.  Increasing research and development investment contributed to the loss in this quarter.

New platform LX9 and LT7 devices are producing strong sales growth.  The L-series devices feature a high-resolution modern display with a highly customizable user interface.  Their features and performance 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.

Our most important goal remains the convergence of the global need for rapid detection of drugs of abuse with Lifeloc's capability of building easy-to-use portable testing equipment.  We intend to use the SpinDx™ technology platform, sometimes referred to as "Lab on a Disk", to develop a series of devices and tests that could be used at roadside, emergency rooms and in workplace testing to get a rapid and quantitative measure for a panel of drugs of abuse.  The first test we intend to offer is the SpinDx device with disks for delta-9-THC detection from an oral fluid sample collected from a test subject.  Then we intend to offer a device based on our recently updated LX9 breathalyzer to collect a sample for analysis from breath, which coupled with the SpinDx device will be our marijuana breathalyzer system.  We have improved the detection sensitivity for delta-9-THC as well as the test speed and robustness of the device.  We are continuing to work on developing this system into a device that can be used for roadside testing, as well as other contexts requiring fast response.  Additional personnel and new equipment resources have been committed to finalizing the development of the first products of the SpinDx technology platform.

"We are glad to see more sales recovery in 2022, with many customers having deferred new equipment purchases during the pandemic," commented Dr. Wayne Willkomm, President and CEO.  "However, we are not just relying on pent up demand for sales growth, but instead our strong pipeline of recent and upcoming product releases will be the big driver.  The Easycal® calibration station and the premium L-series devices are finding broad acceptance and the R.A.D.A.R.® 200 devices have been released to sales.  The L-series devices have grown from a small base to a significant contributor to revenue and margin.  Revenue from these is expected to provide the continued funding to push the SpinDx product platform across the finish line to commercialization.   Research and development expenses will remain high in this push to complete the first of many products built on the SpinDx platform, prioritizing substantial value creation over short-term profitability.  We are working towards the goal of initial SpinDx sales this year."

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/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, 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.

Easycal® and R.A.D.A.R.^® 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
ASSETS
			March 31, 2022 (Unaudited)			December 31, 2021
CURRENT ASSETS:
	Cash	$	2,018,828		$	2,571,668
	Accounts receivable, net		798,748			562,092
	Inventories, net		2,514,112			2,668,789
	Prepaid expenses and other		167,006			56,897
	Total current assets		5,498,694			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		958,785			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		467,485			456,685
	Less accumulated depreciation		(2,628,470)			(2,518,966)
	Total property and equipment, net		2,489,324			2,588,028
OTHER ASSETS:
	Patents, net		115,920			134,428
	Deposits and other		163,480			163,480
	Deferred taxes		248,024			204,449
	Total other assets		527,424			502,357
	Total assets	$	8,515,442		$	8,949,831
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
	Accounts payable	$	295,523		$	445,985
	Term loan payable, current portion		48,887			48,513
	Customer deposits		166,100			170,952
	Accrued expenses		155,299			298,530
	Deferred revenue, current portion		74,460			71,604
	Reserve for warranty expense		46,500			46,500
	Total current liabilities		786,769			1,082,084
TERM LOAN PAYABLE, net of current portion and
	debt issuance costs		1,255,727			1,267,551
DEFERRED REVENUE, net of current portion			6,486			6,430
	Total liabilities		2,048,982			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		1,798,446			1,942,954
	Total stockholders' equity		6,466,460			6,593,766
	Total liabilities and stockholders' equity	$	8,515,442		$	8,949,831

 

LIFELOC TECHNOLOGIES, INC.
Condensed Statements of Income (Unaudited)
		Three Months Ended March 31,
REVENUES:			2022			2021
	Product sales	$	2,111,757		$	1,775,447
	Royalties		26,640			12,564
	Rental income		22,239			21,532
	Total		2,160,636			1,809,543
COST OF SALES			1,318,747			985,666
GROSS PROFIT			841,889			823,877
OPERATING EXPENSES:
	Research and development		390,024			307,212
	Sales and marketing		276,637			230,478
	General and administrative		352,833			350,120
	Total		1,019,494			887,810
OPERATING INCOME (LOSS)			(177,605)			(63,933)
OTHER INCOME (EXPENSE):
	Forgiveness of Paycheck Protection loan		0			465,097
	Interest income		432			499
	Interest expense		(10,910)			(13,517)
	Total		(10,478)			452,079
NET INCOME (LOSS) BEFORE PROVISION FOR TAXES			(188,083)			388,146
BENEFIT FROM (PROVISION FOR) FEDERAL AND STATE INCOME TAXES			43,575			15,325
NET INCOME (LOSS)		$	(144,508)		$	403,471
NET INCOME (LOSS) PER SHARE, BASIC		$	(0.06)		$	0.16
NET INCOME (LOSS) PER SHARE, DILUTED		$	(0.06)		$	0.16
WEIGHTED AVERAGE SHARES, BASIC			2,454,116			2,454,116
WEIGHTED AVERAGE SHARES, DILUTED			2,454,116			2,454,116

 

Lifeloc Technologies, Inc.
Condensed Statements of Stockholders' Equity (Unaudited)
		Three Months Ended March 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)		(144,508)			403,471
	Ending balances		1,798,446			1,670,458
Total stockholders' equity, ending balances		$	6,466,460		$	6,321,270

 

LIFELOC TECHNOLOGIES, INC.
Condensed Statements of Cash Flows (Unaudited)
			Three Months Ended March 31,
CASH FLOWS FROM OPERATING ACTIVITIES:			2022			2021
	Net income (loss)		$	(144,508)		$	403,471
	Adjustments to reconcile net income (loss) to net cash
	provided from (used in) operating activities-
		Forgiveness of Paycheck Protection loan (round 1)		-			(465,097)
	Depreciation and amortization			129,088			66,828
	Provision for inventory obsolescence, net change			34,789			-
	Deferred taxes, net change			(43,575)			(1,441)
	Stock based compensation expense related to
	stock options			17,202			17,157
	Changes in operating assets and liabilities-
	Accounts receivable			(236,656)			(169,622)
	Inventories			119,888			(82,022)
	Income taxes receivable			-			(13,884)
	Prepaid expenses and other			(110,109)			(20,606)
	Accounts payable			(150,462)			21,968
	Customer deposits			(4,852)			6,170
	Accrued expenses			(143,231)			(102,547)
	Deferred revenue			2,912			2,249
		Net cash provided from (used in)
		operating activities		(529,514)			(337,376)
CASH FLOWS FROM INVESTING ACTIVITIES:
	Purchases of property and equipment			(10,800)			-
		Net cash (used in) investing activities		(10,800)			-
CASH FLOWS FROM FINANCING ACTIVITIES:
	Proceeds from Paycheck Protection loan (round 2)			-			471,347
	Principal payments made on term loan			(12,526)			(12,006)
		Net cash provided from (used in) financing
		activities		(12,526)			459,341
NET INCREASE (DECREASE) IN CASH				(552,840)			121,965
CASH, BEGINNING OF PERIOD				2,571,668			2,195,070
CASH, END OF PERIOD			$	2,018,828		$	2,317,035
SUPPLEMENTAL INFORMATION:
	Cash paid for interest		$	9,834		$	13,246

 

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SOURCE Lifeloc Technologies

FAQ

What were Lifeloc Technologies' Q1 2022 financial results?

Lifeloc reported net revenue of $2.161 million and a net loss of $(145) thousand for Q1 2022.

How did Lifeloc's revenue in Q1 2022 compare to Q1 2021?

Lifeloc's revenue increased by 19% from $1.810 million in Q1 2021.

What are the expected sales from Lifeloc's SpinDx technology?

Lifeloc anticipates initial sales from the SpinDx technology platform within the year.

What impact did R&D investment have on Lifeloc's financials in Q1 2022?

Increased R&D investment contributed to a net loss in Q1 2022.

Which devices contributed to Lifeloc's revenue growth in Q1 2022?

Sales growth was driven by the new LX9 and LT7 devices.