Lifeloc Reports Second Quarter 2021 Results

News provided by

Lifeloc Technologies

Aug 06, 2021, 16:18 ET

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.

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








June 30,







2021



December 31,

CURRENT ASSETS:


(Unaudited)



2020


Cash

$

2,390,591


$

2,195,070


Accounts receivable, net


499,050



523,603


Inventories, net


2,495,960



2,498,126


Income taxes receivable


275,163



220,657


Prepaid expenses and other


90,766



77,962


      Total current assets


5,751,530



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


249,279



190,818


Less accumulated depreciation


(2,405,026)



(2,277,839)


     Total property and equipment, net


2,494,562



2,563,288








OTHER ASSETS:







Patents, net


138,774



144,702


Deposits and other


163,832



164,798


Deferred taxes


137,494



148,142


     Total other assets


440,100



457,642









     Total assets

$

8,686,192


$

8,536,348








LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:







Accounts payable

$

232,015


$

333,851


Term loan payable, current portion


47,910



46,936


Paycheck Protection loan payable


471,347



465,097


Customer deposits


163,425



155,295


Accrued expenses


212,164



266,266


Deferred revenue, current portion


41,998



41,053


Reserve for warranty expense


46,500



46,500


      Total current liabilities


1,215,359



1,354,998








TERM LOAN PAYABLE, net of current portion and







debt issuance costs


1,253,113



1,277,531








DEFERRED REVENUE, net of current portion


6,162



3,177


      Total liabilities


2,474,634



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


1,560,746



1,266,987


      Total stockholders' equity


6,211,558



5,900,642









      Total liabilities and stockholders' equity

$

8,686,192


$

8,536,348




































LIFELOC TECHNOLOGIES, INC.

Condensed Statements of Income (Unaudited)






Three Months Ended June 30,

REVENUES:


2021



2020


Product sales

$

1,674,045


$

1,265,698


Royalties


33,652



32,851


Rental income


21,939



21,489


Total


1,729,636



1,320,038








COST OF SALES


1,124,218



991,969








GROSS PROFIT


605,418



328,069








OPERATING EXPENSES:







Research and development


266,633



182,485


Sales and marketing


214,124



274,780


General and administrative


256,908



324,041


Total


737,665



781,306








OPERATING INCOME (LOSS)


(132,247)



(453,237)








OTHER INCOME (EXPENSE):







Interest income


813



3,242


Interest expense


(13,544)



(14,016)


Total 


(12,731)



(10,774)








NET INCOME (LOSS) BEFORE PROVISION FOR TAXES


(144,978)



(464,011)








Benefit from (provision for) federal and state income taxes


35,266



114,419








NET INCOME (LOSS)

$

(109,712)


$

(349,592)








NET INCOME (LOSS) PER SHARE, BASIC

$

(0.04)


$

(0.14)








NET INCOME (LOSS) PER SHARE, DILUTED

$

(0.04)


$

(0.14)








WEIGHTED AVERAGE SHARES, BASIC


2,454,116



2,454,116








WEIGHTED AVERAGE SHARES, DILUTED


2,454,116



2,476,222




































LIFELOC TECHNOLOGIES, INC.

Condensed Statements of Income (Unaudited)






Six Months Ended June 30,

REVENUES:


2021



2020


Product sales

$

3,449,492


$

3,203,564


Royalties


46,216



92,132


Rental income


43,471



42,678


Total


3,539,179



3,338,374








COST OF SALES


2,109,884



2,232,229








GROSS PROFIT


1,429,295



1,106,145








OPERATING EXPENSES:







Research and development


573,845



479,382


Sales and marketing


444,602



601,344


General and administrative


607,028



680,928


Total


1,625,475



1,761,654








OPERATING INCOME (LOSS)


(196,180)



(655,509)








OTHER INCOME (EXPENSE):







Forgiveness of Paycheck Protection loan


465,097



-


Interest income


1,312



10,418


Interest expense


(27,061)



(28,147)


Total 


439,348



(17,729)








NET INCOME (LOSS) BEFORE PROVISION FOR TAXES


243,168



(673,238)








Benefit from (provision for) federal and state income taxes


50,591



158,340








NET INCOME (LOSS)

$

293,759


$

(514,898)








NET INCOME (LOSS) PER SHARE, BASIC

$

0.12


$

(0.21)








NET INCOME (LOSS) PER SHARE, DILUTED

$

0.12


$

(0.21)








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 Income (Unaudited) With Changes






Three Months Ended March 31,

REVENUES:


2021



2020


Product sales

$

1,775,447


$

1,937,866


Royalties


12,564



59,281


Rental income


21,532



21,189


Total


1,809,543



2,018,336








COST OF SALES


985,666



1,240,260








GROSS PROFIT


823,877



778,076








OPERATING EXPENSES:







Research and development


307,212



296,897


Sales and marketing


230,478



326,564


General and administrative


350,120



356,887


Total


887,810



980,348








OPERATING INCOME (LOSS)


(63,933)



(202,272)








OTHER INCOME (EXPENSE):







Forgiveness of Paycheck Protection loan


465,097



0


Interest income


499



7,176


Interest expense


(13,517)



(14,131)


Total 


452,079



(6,955)








NET INCOME BEFORE PROVISION FOR TAXES


388,146



(209,227)








Benefit from (provision for) federal and state income taxes


15,325



43,921








NET INCOME

$

403,471


$

(165,306)








NET INCOME PER SHARE, BASIC

$

0.16


$

(0.07)








NET INCOME PER SHARE, DILUTED

$

0.16


$

(0.07)








WEIGHTED AVERAGE SHARES, BASIC


2,454,116



2,454,116








WEIGHTED AVERAGE SHARES, DILUTED


2,454,116



2,454,116








Lifeloc Technologies, Inc.

Statements of Stockholders' Equity (Unaudited)





























Three Months Ended June 30,


Six Months Ended June 30,



2021


2020


2021


2020

Total stockholders' equity, beginning balances

$

6,321,270


$

6,659,026


$

5,900,642


$

6,792,221














Common stock (no shares issued during periods):













Beginning balances


4,650,812



4,635,415



4,633,655



4,603,304


Stock based compensation expense related













 to stock options


-



312



17,157



32,423


Ending balances


4,650,812



4,635,727



4,650,812



4,635,727














Retained earnings:













Beginning balances


1,670,458



2,023,611



1,266,987



2,188,917


Net income (loss)


(109,712)



(349,592)



293,759



(514,898)


Ending balances


1,560,746



1,674,019



1,560,746



1,674,019














Total stockholders' equity, ending balances

$

6,211,558


$

6,309,746


$

6,211,558


$

6,309,746

LIFELOC TECHNOLOGIES, INC.

Condensed Statements of Cash Flows (Unaudited)












Six Months Ended June 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

2021


2020


Net income (loss)

$

293,759


$

(514,898)


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


133,657



191,493


   Provision for doubtful accounts, net change


(49,000)



5,000


   Provision for inventory obsolescence, net change


(5,000)



42,265


   Deferred taxes, net change


10,648



(11,516)


   Stock based compensation expense related to







     stock options


17,157



32,423


Changes in operating assets and liabilities-







   Accounts receivable


73,553



96,567


   Inventories 


7,166



(486,414)


   Income taxes receivable 


(54,506)



(146,807)


   Prepaid expenses and other 


(12,804)



(88,920)


   Deposits and other 


966



(58,823)


   Accounts payable 


(101,836)



96,684


   Customer deposits 


8,130



(47,951)


   Accrued expenses 


(54,102)



(79,974)


   Deferred revenue 


3,930



(4,365)



           Net cash provided from (used in)








            operating activities


(193,379)



(975,236)









CASH FLOWS FROM INVESTING ACTIVITIES:







Purchases of property and equipment


(58,461)



(9,088)


Patent filing expense


-



(18,772)



           Net cash provided from (used in) investing activities

(58,461)



(27,860)









CASH FLOWS FROM FINANCING ACTIVITIES:







Principal payments made on term loan


(23,986)



(22,899)


Proceeds from Paycheck Protection loan (round 2)


471,347



465,097



           Net cash (used in) financing








            activities


447,361



442,198









NET INCREASE (DECREASE) IN CASH


195,521



(560,898)









CASH, BEGINNING OF PERIOD


2,195,070



3,185,996









CASH, END OF PERIOD

$

2,390,591


$

2,625,098









SUPPLEMENTAL INFORMATION:







Cash paid for interest

$

-


$

27,605










Cash paid for (received from)  income tax

$

-


$

20,063

SOURCE Lifeloc Technologies