Lifeloc Reports 2018 Full Year Results and DWAC/FAST Eligibility
Lifeloc Technologies, Inc. (OTC: LCTC), a global leader in the development and manufacturing of breath alcohol testing devices, has announced financial results for the 2018 fiscal year ended December 31, 2018.
2018 Financial Highlights
Lifeloc Technologies posted annual net revenue of $8.44 million resulting in 2018 after tax net income of $217 thousand, or $0.09 per diluted share. These results compare to net revenue of $7.99 million for 2017 full year, with net income of $15 thousand, or $0.01 per diluted share. Revenue for 2018 grew 6% over the prior year. Our balance sheet grew even stronger, with a growth in cash of $119 thousand and a debt reduction of $40 thousand.
This has been a transitional year for Lifeloc Technologies. In 2018 we made a significant investment in the upgrade of our enterprise resource planning (ERP) information infrastructure for improved efficiency and to handle a broadening product line. This has already contributed some sales growth through the upgraded e-Commerce portal. We are completing a multiyear R&D investment for the development of a completely new breathalyzer platform that will be introduced in 2019. And as these projects wind down, freed resources will be deployed to accelerating the development of our rapid drug detection based on the SpinDx technology, including a rapid, quantitative marijuana breathalyzer, as well as advancing our monitoring business, primarily through the Real-Time Alcohol Detection and Recognition (R.A.D.A.R.) device.
Our vision is that Lifeloc becomes the world’s leading company in real-time alcohol and drug abuse detection and monitoring. To that end, we continue to invest aggressively in research and development. This R&D investment amounted to over 13% of revenue for the year. Lifeloc is committed to bringing the most advanced alcohol breathalyzers, alcohol monitoring devices and marijuana breathalyzers to the market.
“We are glad to return to a year of growth, having achieved some modest revenue growth in 2018 through improving sales channels, even though there were no new product introductions this year,” commented Dr. Wayne Willkomm, President and CEO. “2019 will be different, with a pipeline of new breathalyzer and affiliated launches which will deliver more performance and value to our customers.”
In addition to operational investments, Lifeloc Technologies is pleased to announce that the Depository Trust Corporation (the "DTC") has approved its common stock for DWAC/FAST transfer through the Company's Transfer Agent, Corporate Stock Transfer, Inc. This newly approved stock transfer capability will enable Lifeloc's shareholders to transfer their shares of Lifeloc stock electronically after buying or selling, without the extra cost and burden associated with the processing of physical share certificates.
DWAC/FAST transfer expedites the transaction process, while also eliminating the risks associated with the loss and replacement of physical share certificates. "We are pleased to facilitate easier trading for our shareholders," said Dr. Willkomm. "Not only does becoming DWAC/FAST eligible provide our existing shareholders with new efficiencies, but we hope for more liquidity and better valuation in the open market, allowing us to continue expanding our shareholder base," he added.
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.
R.A.D.A.R. is a registered trademark of Lifeloc Technologies, Inc.
SpinDx is a trademark of Sandia Corporation.
|LIFELOC TECHNOLOGIES, INC.|
|Cash and cash equivalents||$||2,788,327||$||2,669,455|
|Accounts receivable, net||675,136||593,326|
|Income taxes receivable||90,629||121,401|
|Prepaid expenses and other||35,155||21,804|
|Total current assets||4,879,854||4,581,089|
|PROPERTY AND EQUIPMENT, at cost:|
|Real-time Alcohol Detection And Recognition equipment and software||569,448||569,448|
|Production equipment and software||800,569||556,025|
|Office equipment and software||241,836||204,282|
|Sales and marketing equipment||219,797||216,330|
|Research and development equipment and software||159,810||131,770|
|Less accumulated depreciation||(1,649,203||)||(1,349,499||)|
|Total property and equipment, net||3,021,359||3,007,458|
|Deposits and other||140,452||259,037|
|Total other assets||378,468||502,812|
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