Lifeloc Reports First Quarter 2022 Results

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

SOURCE Lifeloc Technologies