WHEAT RIDGE, Colo., Aug. 6, 2021 /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 second quarter ended June 30, 2021.
Second Quarter Financial Highlights
Lifeloc posted quarterly net revenue of $1.730 million resulting in a quarterly net loss of $(110) thousand, or $(0.04) per diluted share. These results compare to net revenue of $1.320 million and quarterly net loss of $(350) thousand, or $(0.14) per diluted share in the second quarter of 2020. Revenue for the quarter increased 31% versus the second quarter last year, as demand recovers from the impact of the COVID-19 global pandemic and the government ordered shutdowns. Net revenue of $3.539 million and a net profit of $294 thousand, or $0.12 per diluted share, compare to net revenue of $3.338 million and a net loss of $(515) thousand, or $(0.21) per diluted share, for the same six months of 2020. The income for the first six months of 2021 includes the benefit from the forgiveness of the first round SBA Paycheck Protection Program (PPP) loan of $465 thousand.
As previously reported, Lifeloc qualified for and received a second PPP loan of $471 thousand in Q1 of 2021. These loans are completely forgivable by the SBA if the proceeds are spent in accordance with the program rules. As with the prior PPP loan, Lifeloc intends to comply with all requirements and plans to apply for forgiveness of this second loan in the third quarter of 2021. The PPP program was successful in mitigating the negative effect of the significant demand suppression on cash flow from the pandemic while allowing Lifeloc to carefully reduce structural costs and retain critical personnel, with no compromise to our product development efforts.
Demand is growing for our new platform LX9 and LT7 devices. 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. Manufacture of the second generation R.A.D.A.R. 200 protoype devices began in late 2020. Testing of these redesigned R.A.D.A.R. devices and integration with the monitoring system has been extensive and has required additional modification before final release. The design has now been finalized with several devices currently in field testing by key customers and sales release planned this year. 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 that process.
Our most important goal remains the convergence of the market's need for rapid detection of drugs of abuse with Lifeloc's capabilities. Additional personnel and new equipment resources have been committed to finalizing the development of the SpinDx™ technology platform and the rapid, quantitative marijuana breathalyzer built on that platform. We have improved the detection sensitivity for delta-9-THC as well as the robustness of the device. Work continues to develop this system into a device that can be used for roadside testing, as well as other contexts requiring fast response.
"We saw a good uptick in sales this quarter versus last year, although we would still hope to see sales recover more as our customers' budgets open to replace aging equipment," commented Dr. Wayne Willkomm, President and CEO. "But our real growth driver is the strong pipeline of recent and upcoming product releases. The L-series platform, a premium product already finding broad acceptance, is providing expanded features requested by various international law enforcement agencies. Together with the imminent release of the redesigned R.A.D.A.R. 200 devices, this should develop a healthy recurring revenue stream to fund growth. The next big milestone for Lifeloc will be completing the commercialization of the SpinDx platform – a major effort that will be prioritized over short-term profitability."
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's 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.
R.A.D.A.R.® is a registered trademark of Lifeloc Technologies, Inc.