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Lifeloc Reports First Quarter 2019 and Shareholder Vote Results
WHEAT RIDGE, Colo.–(BUSINESS WIRE)–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, 2019, as well as the results for the 2019 annual shareholder
meeting.
First Quarter Financial Highlights
We posted quarterly net revenue of $2.07 million resulting in quarterly
net income after taxes of $31 thousand, or $0.01 per diluted share.
These results compare to net revenue of $2.20 million and quarterly net
income of $11 thousand, or $0.00 per diluted share in the first quarter
of 2018. Revenue for the quarter declined 6% versus the first quarter
last year. This decline appears to have coincided with the federal
government shutdown which adversely affected buying in regulated testing
areas as well as local law enforcement purchases. Even though revenue
declined, earnings improved through lower operating expenses. Gross
margin on total revenue remained unchanged in the current quarter 45%
versus 45% in the same quarter last year.
Shareholder Meeting
Lifeloc conducted its annual shareholder meeting May 6th at
the company’s headquarters in Wheat Ridge, CO. The proposed slate of
directors was elected with over 99% of the votes cast and the
appointment of auditors was ratified, also by more than 99% of the votes
cast. Following the business portion of the meeting, a brief company
status report was presented, and these slides are available on our
website, www.lifeloc.com/shareholderMeeting.
Product Pipeline
Our vision is that Lifeloc becomes the world’s leading company in
real-time alcohol and drug abuse detection and monitoring. We have been
investing aggressively in product development to achieve this vision,
focusing on a few major product developments that are expected to have a
significant impact on our performance. We are now at the point where we
will start to reap the benefit of these investments.
The premier breathalyzer model of our new platform, the Lifeloc LX9,
went into production during the quarter. The LX9 satisfies many market
needs for performance and connectivity and combines these features in
one easy to use package. To support the new platform, our patented
Easycal® calibration station has been upgraded to the Easycal
G2 second generation calibration station. This model is compatible with
our existing installed base of professional breathalyzers as well as the
new platform. The G2 model includes RFID (Radio Frequency
Identification) reading of calibration standard data, which further
automates the calibration process.
Likewise, the new model of the R.A.D.A.R.® (Real-time Alcohol
Detection and Reporting) device is moving forward. Prototype devices are
in testing, with production expected later this year. R.A.D.A.R. devices
are alcohol monitoring units which can be used as a tool to supervise
offenders as an alternative to incarceration. Onboard biometrics
automatically verify the identity of the test subject. R.A.D.A.R.
devices are a critical step in moving our business towards a recurring
revenue model.
Our marijuana breathalyzer remains a key target for product development.
The continued broader legalization of marijuana only increases the need
for a rapid, quantitative roadside test to identify drivers under the
influence of marijuana. The completion of other projects will allow
resources to be redirected towards accelerating this effort. The ability
of our technology to detect delta-9-THC down to a concentration of 5
nanograms per milliliter and to collect a testable sample from a vapor
stream has already been demonstrated in our laboratories. Detection of
THC is accomplished through the SpinDx technology, licensed exclusively
by Lifeloc Technologies for drugs of abuse from Sandia National
Laboratory. More work is needed to convert this technology into a
simple-to-operate device suitable for roadside testing.
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
| LIFELOC TECHNOLOGIES, INC. | ||||||||
|
Condensed Balance Sheets ASSETS |
||||||||
| March 31, | ||||||||
| 2019 | December 31, | |||||||
| CURRENT ASSETS: | (Unaudited) | 2018 | ||||||
| Cash | $ | 2,799,153 | $ | 2,788,327 | ||||
| Accounts receivable, net | 548,008 | 675,136 | ||||||
| Inventories, net | 1,673,740 | 1,290,607 | ||||||
| Income taxes receivable | 35,522 | 90,629 | ||||||
| Prepaid expenses and other | 135,144 | 35,155 | ||||||
| Total current assets | 5,191,567 | 4,879,854 | ||||||
| PROPERTY AND EQUIPMENT, at cost: | ||||||||
| Land | 317,932 | 317,932 | ||||||
| Building | 1,941,414 | 1,928,795 | ||||||
| Real-time Alcohol Detection And Recognition equipment and software | 569,448 | 569,448 | ||||||
| Production equipment and software | 911,454 | 800,569 | ||||||
| Training courses | 432,375 | 432,375 | ||||||
| Office equipment and software | 246,946 | 241,836 | ||||||
| Sales and marketing equipment | 219,797 | 219,797 | ||||||
| Research and development equipment and software | 159,810 | 159,810 | ||||||
| Less accumulated depreciation | (1,748,775 | ) | (1,649,203 |
) |
||||
| Total property and equipment, net | 3,050,401 | 3,021,359 | ||||||
| OTHER ASSETS: | ||||||||
| Patents, net | 154,943 | 158,147 | ||||||
| Deposits and other | 53,967 | 140,452 | ||||||
| Deferred taxes | 134,477 | 79,869 | ||||||
| Total other assets | 343,387 | 378,468 | ||||||
| Total assets | $ | 8,585,355 | $ | 8,279,681 | ||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 654,623 | $ | 343,783 | ||||
| Term loan payable, current portion | 43,498 | 43,207 | ||||||
| Customer deposits | 21,513 | 19,265 | ||||||
| Accrued expenses | 216,658 | 250,912 | ||||||
| Deferred revenue, current portion | 49,047 | 44,218 | ||||||
| Reserve for warranty expense | 40,000 | 40,000 | ||||||
| Total current liabilities | 1,025,339 | 741,385 | ||||||
| TERM LOAN PAYABLE, net of current portion and | ||||||||
| debt issuance costs | 1,358,226 | 1,369,347 | ||||||
| DEFERRED REVENUE, net of current portion | 7,927 | 8,212 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| STOCKHOLDERS’ EQUITY: | ||||||||
| Common stock, no par value; 50,000,000 shares | ||||||||
| authorized, 2,454,116 shares outstanding | 4,599,808 | 4,597,646 | ||||||
| Retained earnings | 1,594,055 | 1,563,091 | ||||||
| Total stockholders’ equity | 6,193,863 | 6,160,737 | ||||||
| Total liabilities and stockholders’ equity | $ | 8,585,355 | $ | 8,279,681 | ||||
|
LIFELOC TECHNOLOGIES, INC. |
||||||||
| Condensed Statements of Income (Unaudited) | ||||||||
| Three Months Ended September 30, | ||||||||
| REVENUES: | 2018 | 2017 | ||||||
| Product sales | $ | 1,970,101 | $ | 2,122,243 | ||||
| Royalties | 72,838 | 65,065 | ||||||
| Rental income | 25,822 | 14,601 | ||||||
| Total | 2,068,761 | 2,201,909 | ||||||
| COST OF SALES | 1,136,559 | 1,201,746 | ||||||
| GROSS PROFIT | 932,202 | 1,000,163 | ||||||
| OPERATING EXPENSES: | ||||||||
| Research and development | 245,799 | 338,326 | ||||||
| Sales and marketing | 316,383 | 335,401 | ||||||
| General and administrative | 325,175 | 297,333 | ||||||
| Total | 887,357 | 971,060 | ||||||
| OPERATING INCOME | 44,845 | 29,103 | ||||||
| OTHER INCOME (EXPENSE): | ||||||||
| Interest income | 9,422 | 2,184 | ||||||
| Interest expense | (14,423 | ) | (14,714 | ) | ||||
| Total | (5,001 | ) | (12,530 | ) | ||||
| NET INCOME (LOSS) BEFORE PROVISION FOR TAXES | 39,844 | 16,573 | ||||||
| (PROVISION FOR) BENEFIT FROM FEDERAL AND STATE INCOME TAXES | (8,880 | ) | (5,373 | ) | ||||
| NET INCOME | $ | 30,964 | $ | 11,200 | ||||
| NET INCOME PER SHARE, BASIC | $ | 0.01 | $ | – | ||||
| NET INCOME PER SHARE, DILUTED | $ | 0.01 | $ | – | ||||
| WEIGHTED AVERAGE SHARES, BASIC | 2,454,116 | 2,454,116 | ||||||
| WEIGHTED AVERAGE SHARES, DILUTED | 2,504,116 | 2,510,699 | ||||||
|
Lifeloc Technologies, Inc. Condensed Statement of Stockholders’ Equity (Unaudited) |
|||||||||||||||||
| Common Stock |
|
Retained |
|||||||||||||||
| Shares | Amount |
Earnings |
Total | ||||||||||||||
| BALANCES, DECEMBER 31, 2018 | 2,454,116 | $ | 4,597,646 |
|
$ |
1,563,091 | $ | 6,160,737 | |||||||||
| Net income | – | – | 30,964 | 30,964 | |||||||||||||
| Stock based compensation expense | |||||||||||||||||
| related to stock options | – | 2,162 | – | 2,162 | |||||||||||||
| BALANCES, MARCH 31, 2019 | 2,454,116 | $ | 4,599,808 |
|
$ |
1,594,055 | $ | 6,193,863 | |||||||||
| Common Stock |
|
Retained |
|||||||||||||||
| Shares | Amount |
Earnings |
Total | ||||||||||||||
| BALANCES, DECEMBER 31, 2017 | 2,454,116 | $ | 4,580,177 |
|
$ |
1,345,927 | $ | 5,926,104 | |||||||||
| Net income | – | – | 11,200 | 11,200 | |||||||||||||
| Stock based compensation expense | |||||||||||||||||
| related to stock options | – | 5,714 | – | 5,714 | |||||||||||||
| BALANCES, MARCH 31, 2018 | 2,454,116 | $ | 4,585,891 |
|
$ |
1,357,127 | $ | 5,943,018 | |||||||||
|
LIFELOC TECHNOLOGIES, INC. Condensed Statements of Cash Flows (Unaudited) |
|||||||||
| Three Months Ended March 31, | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | 2019 | 2018 | |||||||
| Net income | $ | 30,964 | $ | 11,200 | |||||
| Adjustments to reconcile net income to net cash | |||||||||
| provided from (used in) operating activities- | |||||||||
| Depreciation and amortization | 103,047 | 107,878 | |||||||
| Provision for doubtful accounts, net change | – | 1,500 | |||||||
| Provision for inventory obsolescence, net change | – | 27,500 | |||||||
| Deferred taxes, net change | (54,608 | ) | 935 | ||||||
| Reserve for warranty expense, net change | – | 1,500 | |||||||
| Stock based compensation expense related to | |||||||||
| stock options | 2,162 | 5,714 | |||||||
| Changes in operating assets and liabilities- | |||||||||
| Accounts receivable | 127,128 | (165,780 | ) | ||||||
| Inventories | (383,133 | ) | (34,908 | ) | |||||
| Income taxes receivable | 55,107 | 4,438 | |||||||
| Prepaid expenses and other | (99,989 | ) | (82,032 | ) | |||||
| Deposits and other | 86.485 | 256,853 | |||||||
| Accounts payable | 310,840 | 242,673 | |||||||
| Customer deposits | 2,248 | (4,144 | ) | ||||||
| Accrued expenses | (34,254 | ) | 36,406 | ||||||
| Deferred revenue | 4,544 | (6,648 | ) | ||||||
| Net cash provided from (used in) operating activities | 150,541 | 403,085 | |||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||
| Purchases of property and equipment | (128,614 | ) | (355,512 | ) | |||||
| Net cash (used in) investing activities | (128,614 | ) | (355,512 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||
| Principal payments made on term loan | (11,101 | ) | (10,673 | ) | |||||
| Net cash (used in) financing activities | (11,101 | ) | (10,673 | ) | |||||
| NET (DECREASE) IN CASH | 10,826 | 36,900 | |||||||
| CASH, BEGINNING OF PERIOD | 2,788,327 | 2,669,455 | |||||||
| CASH, END OF PERIOD | 2,799,153 | $ | 2,706,355 | ||||||
| SUPPLEMENTAL INFORMATION: | |||||||||
| Cash paid for interest | $ | 14,152 | $ | 14,579 | |||||
| Cash paid for income tax | $ | – | $ | – | |||||
Contacts
Sarah Struble
Lifeloc Technologies, Inc.
http://www.lifeloc.com
(303)
431-9500