WHEAT RIDGE, Colo., Feb. 22, 2022 /PRNewswire/ -- Lifeloc Technologies, Inc. (OTC: LCTC), a global leader in the development and manufacturing of breath alcohol testing devices, has announced financial results for the 2021 fiscal year ended December 31, 2021.
2021 Financial Highlights
Lifeloc Technologies posted annual net revenue of $7.054 million resulting in 2021 after tax profit of $676 thousand, or net income of $0.27 per diluted share. These results compare to net revenue of $6.357 million for 2020, with net loss of $922 thousand, or $(0.38) per diluted share. 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 2021 grew by 11% over 2020 sales, representing a partial recovery to pre-pandemic sales levels.
Lifeloc took advantage of continued low interest rates to secure a stable and low interest rate on our only debt, refinancing our building mortgage on September 30, 2021, replacing the prior 4.00% fixed rate (until October 2024) mortgage with a 2.95% mortgage fixed until September 2031. This refinancing was immediately cash flow positive, with all refinance costs to be recovered through interest savings by early 2023, while eliminating the significant 2024 interest rate change risk from the prior mortgage.
New platform LX9 and LT7 devices produced sales growth of 65% in 2021 versus 2020. 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 continue to invest in the significant growth opportunities of alcohol monitoring and drug detection. The monitoring opportunity will be addressed primarily through the redesigned Real-Time Alcohol Detection and Reporting (R.A.D.A.R.®) device. Field testing of the redesigned R.A.D.A.R. 200 devices and integration with the monitoring system has been extensive and has required additional modifications before final release. The design has now been completed with several devices field tested by key customers and now has been released to sales. Several upgrades have been made to the reporting system including migration to the cloud for higher reliability and an entirely new enrollment app to automate the enrollment process.
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 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 saw some sales recovery in 2021 and we expect to see more 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. Revenue from these will all provide the continued funding to push the SpinDx product platform across the finish line to commercialization. We will see research and development expenses continue to rise in this final push, prioritizing substantial value creation over short-term profitability. We are hopeful that the SpinDx platform will begin making a revenue contribution by late 2022."
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.
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. | ||||||
Balance Sheets | ||||||
ASSETS | ||||||
December 31, | ||||||
CURRENT ASSETS: | 2021 | 2020 | ||||
Cash | $ | 2,571,668 | $ | 2,195,070 | ||
Accounts receivable, net | 562,092 | 523,603 | ||||
Inventories, net | 2,668,789 | 2,498,126 | ||||
Income taxes receivable | 0 | 220,657 | ||||
Prepaid expenses and other | 56,897 | 77,962 | ||||
Total current assets | 5,859,446 | 5,515,418 | ||||
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 | 456,685 | 190,818 | ||||
Less accumulated depreciation | (2,518,966) | (2,277,839) | ||||
Total property and equipment, net | 2,588,028 | 2,563,288 | ||||
OTHER ASSETS: | ||||||
Patents, net | 134,428 | 144,702 | ||||
Deposits and other | 163,480 | 164,798 | ||||
Deferred taxes | 204,449 | 148,142 | ||||
Total other assets | 502,357 | 457,642 | ||||
Total assets | $ | 8,949,831 | $ | 8,536,348 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
CURRENT LIABILITIES: | ||||||
Accounts payable | $ | 445,985 | $ | 333,851 | ||
Term loan payable, current portion | 48,513 | 46,936 | ||||
Paycheck Protection Program loan payable | - | 465,097 | ||||
Customer deposits | 170,952 | 155,295 | ||||
Accrued expenses | 298,530 | 266,266 | ||||
Deferred revenue, current portion | 71,604 | 41,053 | ||||
Reserve for warranty expense | 46,500 | 46,500 | ||||
Total current liabilities | 1,082,084 | 1,354,998 | ||||
TERM LOAN PAYABLE, net of current portion and debt issuance costs | 1,267,551 | 1,277,531 | ||||
DEFERRED REVENUE, net of current portion | 6,430 | 3,177 | ||||
Total liabilities | 2,356,065 | 2,635,706 | ||||
COMMITMENTS AND CONTINGENCIES | ||||||
STOCKHOLDERS' EQUITY: | ||||||
Common stock, no par value; 50,000,000 shares authorized, 2,454,116 shares outstanding | 4,650,812 | 4,633,655 | ||||
Retained earnings | 1,942,954 | 1,266,987 | ||||
Total stockholders' equity | 6,593,766 | 5,900,642 | ||||
Total liabilities and stockholders' equity | $ | 8,949,831 | $ | 8,536,348 | ||
LIFELOC TECHNOLOGIES, INC. | ||||||
Statements of Income | ||||||
Years Ended December 31, | ||||||
REVENUES: | 2021 | 2020 | ||||
Product sales | $ | 6,898,955 | $ | 6,122,348 | ||
Royalties | 67,526 | 148,398 | ||||
Rental income | 87,949 | 85,956 | ||||
Total | 7,054,430 | 6,356,702 | ||||
COST OF SALES | 3,994,334 | 4,176,156 | ||||
GROSS PROFIT | 3,060,096 | 2,180,546 | ||||
OPERATING EXPENSES: | ||||||
Research and development | 1,213,482 | 1,007,297 | ||||
Sales and marketing | 1,003,983 | 1,074,249 | ||||
General and administrative | 1,111,544 | 1,254,503 | ||||
Total | 3,329,009 | 3,336,049 | ||||
OPERATING INCOME (LOSS) | (268,913) | (1,155,503) | ||||
OTHER INCOME (EXPENSE): | ||||||
Forgiveness of Paycheck Protection loan | 936,444 | - | ||||
Interest income | 3,401 | 14,294 | ||||
Interest expense | (51,272) | (56,129) | ||||
Total | 888,573 | (41,835) | ||||
NET INCOME (LOSS) BEFORE PROVISION FOR TAXES | 619,660 | (1,197,338) | ||||
BENEFIT FROM (PROVISION FOR) FEDERAL AND STATE INCOME TAXES | 56,307 | 275,408 | ||||
NET INCOME (LOSS) | $ | 675,967 | $ | (921,930) | ||
NET INCOME (LOSS) PER SHARE, BASIC | $ | 0.28 | $ | (0.38) | ||
NET INCOME (LOSS) PER SHARE, DILUTED | $ | 0.27 | $ | (0.38) | ||
WEIGHTED AVERAGE SHARES, BASIC | 2,454,116 | 2,454,116 | ||||
WEIGHTED AVERAGE SHARES, DILUTED | 2,518,895 | 2,454,116 | ||||
Lifeloc Technologies, Inc. | ||||||
Statements of Stockholders' Equity | ||||||
Years Ended December 31, | ||||||
2021 | 2020 | |||||
Total stockholders' equity, beginning balances | $ | 5,900,642 | $ | 6,792,221 | ||
Common stock (no shares issued during periods): | ||||||
Beginning balances | 4,633,655 | 4,603,304 | ||||
Stock based compensation expense related to stock options | 17,157 | 30,351 | ||||
Ending balances | 4,650,812 | 4,633,655 | ||||
Retained earnings: | ||||||
Beginning balances | 1,266,987 | 2,188,917 | ||||
Net income (loss) | 675,967 | (921,930) | ||||
Ending balances | 1,942,954 | 1,266,987 | ||||
Total stockholders' equity, ending balances | $ | 6,593,766 | $ | 5,900,642 | ||
LIFELOC TECHNOLOGIES, INC. | |||||||
Statements of Cash Flows | |||||||
Years Ended December 31, | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | 2021 | 2020 | |||||
Net income (loss) | $ | 675,967 | $ | (921,930) | |||
Adjustments to reconcile net income (loss) to net cash provided from operating activities- | |||||||
Forgiveness of Paycheck Protection loans | (936,444) | - | |||||
Depreciation and amortization | 254,823 | 364,336 | |||||
Provision for doubtful accounts, net change | (49,000) | 24,000 | |||||
Provision for inventory obsolescence, net change | (5,000) | 20,000 | |||||
Deferred taxes, net change | (56,307) | (61,484) | |||||
Reserve for warranty expense, net change | - | 1,500 | |||||
Stock based compensation expense related to stock options | 17,157 | 30,351 | |||||
Changes in operating assets and liabilities- | |||||||
Accounts receivable | 10,511 | 93,636 | |||||
Inventories | (165,663) | (531,827) | |||||
Income taxes receivable | 220,657 | (213,907) | |||||
Prepaid expenses and other | 21,065 | (59,105) | |||||
Deposits and other | 1,318 | (90,771) | |||||
Accounts payable | 112,134 | 72,053 | |||||
Customer deposits | 15,657 | (58,736) | |||||
Accrued expenses | 32,264 | (24,192) | |||||
Deferred revenue | 33,804 | (7,710) | |||||
Net cash provided from (used in) operating activities | 182,943 | (1,363,786) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchases of property, equipment and space modifications | (265,867) | (27,477) | |||||
Patent filing expense | (2,609) | (18,796) | |||||
Net cash (used in) investing activities | (268,476) | (46,273) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Principal payments made on term loans | (1,341,059) | (45,964) | |||||
Proceeds from refinancing term loan | 1,350,000 | - | |||||
Cost of refinancing term loan | (18,157) | - | |||||
Proceeds from Paycheck Protection loan | 471,347 | 465,097 | |||||
Net cash provided from (used in) financing activities | 462,131 | 419,133 | |||||
NET INCREASE (DECREASE) IN CASH | 376,598 | (990,926) | |||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 2,195,070 | 3,185,996 | |||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 2,571,668 | $ | 2,195,070 | |||
SUPPLEMENTAL INFORMATION: | |||||||
Cash paid for interest | $ | 50,458 | $ | 55,045 | |||
SOURCE Lifeloc Technologies
Share this article