Lifeloc Technologies, Inc
For the period ended Jun 30, 2025. Filed Aug 11, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 11, 2025
LCTCStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-15.
0001079973-25-000824
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-11.
0001079973-25-001237
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 61 previous paragraphs and 76 current paragraphs.
45 unchanged; 15 reworded; 12 added; 1 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
General and administrative expenses of $340,074 for the three months ended June 30, 2025 versus $363,008 for the three months ended June 30, 2024 were lower by $22,934 (6%) as a result of various expense reductions.
Current report
For the six months ended June 30, 2025 compared to the six months ended June 30, 2024*.*
Current report
Net sales.
Current report
Our product sales for the six months ended June 30, 2025 were $4,454,307, a decrease of 1% from $4,504,867 for the same period a year ago. This decrease results from the absence of several larger orders in the current period that may have reflected customers’ availability of funds in the previous period. In addition, the continuing inflationary pressure outlook on customers’ budgets may also have played a role. When royalties of $25,471 and rental income of $16,632 are included, total revenues of $4,496,410 decreased by $44,363, or 1%, for the six months ended June 30, 2025 when compared to the same six months a year ago. Royalties increased as a result of our royalty-paying customers selling more products in the current period vs. the same period a year ago. Rental income increased by $486 and will be discontinued after June 30, 2025 as a result of the expiration of the one remaining lease that was not renewed.
Current report
Gross profit.
Current report
Total gross profit for the six months ended June 30, 2025 of $1,833,165 represented little change from total gross profit of $1,828,903 for the six months ended June 30, 2024. Cost of product sales for the six months ended June 30, 2025 was $2,654,162 vs. $2,705,030, a decrease of $50,868 as a result of lower product sales. Gross profit margin on products remained relatively constant at 40% in both periods.
Current report
Research, development and sustaining engineering expenses were $1,092,942 for the six months ended June 30, 2025, a decrease of $124,933 (10%) from the $1,217,875 in the same six months ended June 30, 2024. This decrease results primarily from timing of services from outside contractors and is expected to again increase in the remainder of 2025.
Current report
Sales and marketing expenses.
Current report
Sales and marketing expenses of $674,084 for the six months ended June 30, 2025 were down by $36,299 (or 5%) from the $710,383 spent in the same period a year ago as a result primarily of lower sales on which commissions were paid.
Current report
General and administrative expenses.
Current report
Other income (expense).
Current report
Net income (loss).
Removed paragraphs (1)
Previous report
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Reworded paragraphs (15)
Previous wording
We own our corporate headquarters in Wheat Ridge, Colorado, occupying most of the space ourselves while leasing a portion to a third party. Our tenant’s lease expires in June 2025, at which time we expect to expand into the full space. Additionally, we continue to pursue acquisitions aligned with our mission to deliver near and remote sensing and monitoring solutions, aiming to strengthen own position in existing markets and facilitate entry into new ones.
Current wording
We own our corporate headquarters in Wheat Ridge, Colorado, occupying most of the space ourselves. We leased a portion of the space to a third party until our tenant’s lease expired in June 2025. We now expect to expand into the full space. Additionally, we continue to pursue acquisitions aligned with our mission to deliver near and remote sensing and monitoring solutions, aiming to strengthen own position in existing markets and facilitate entry into new ones.
Previous wording
Our product sales for the three months ended March 31, 2025 were $2,263,047, an increase of 6% from $2,134,434 for the same period a year ago. This increase results from acceleration of several larger orders that may reflect customers’ current availability of funds. In addition, the continuing inflationary pressure outlook on customers’ budgets may also have played a role. When royalties of $5,671 and rental income of $8,316 are included, total revenues of $2,277,034 increased by $123,591, or 6%, for the three months ended March 31, 2025 when compared to the same three months a year ago. Rental income increased by $243 and is expected to be discontinued after June 30, 2025, and royalties decreased by $5,265 due to a decrease in sales by royalty-paying customers.
Current wording
Our product sales for the three months ended June 30, 2025 were $2,191,260, a decrease of 8% from $2,370,433 for the same period a year ago. This decrease results from the absence of several larger orders in the current period that may have reflected customers’ availability of funds in the previous period. In addition, the continuing inflationary pressure outlook on customers’ budgets may also have played a role. When royalties of $19,800 and rental income of $8,316 are included, total revenues of $2,219,376 decreased by $167,954, or 7%, for the three months ended June 30, 2025 when compared to the same three months a year ago. Royalties increased as a result of our royalty-paying customers selling more products in the current period vs. the same period a year ago. Rental income increased by $243 and will be discontinued after June 30, 2025 as a result of the expiration of the one remaining lease that was not renewed.
Previous wording
Gross profit for the three months ended March 31, 2025 of $908,566 represented an increase of 9% from total gross profit of $835,307 for the three months ended March 31, 2024, primarily as a result of higher product sales. Cost of product sales increased from $1,315,079 in the three months ended March 31, 2024 to $1,363,805 in the same period in 2025, an increase of $48,726 (4%). Gross profit margin on products increased to 40% in the three months ended March 31, 2025 from 38% in the three months ended March 31, 2024 primarily as a result of the higher sales.
Current wording
Total gross profit for the three months ended June 30, 2025 of $924,599 represented a decrease of 7% from total gross profit of $993,596 for the three months ended June 30, 2024, primarily as a result of lower product sales. Cost of product sales decreased from $1,389,951 in the three months ended June 30, 2024 to $1,290,357 in the same period in 2025, a decrease of $99,594 (7%). Gross profit margin on products remained relatively constant at 41% in both periods.
Previous wording
Research, development and sustaining engineering expenses continued at the high level of $469,680, or 21% of product sales, for the three months ended March 31, 2025, representing a decrease of $85,919 (16%) over the $555,599 in the same period a year ago. This decrease resulted primarily from a lull in payments to outside contractors needed for continuing design work related to SpinDx™.
Current wording
Research, development and sustaining engineering expenses continued at the high level of $623,262, or 28% of product sales, for the three months ended June 30, 2025, representing a decrease of $39,014 (6%) over the $662,276 in the same period a year ago. This decrease resulted primarily from a decrease in payments to outside contractors needed for continuing design work related to SpinDx™.
Previous wording
Sales and marketing expenses of $334,556 for the three months ended March 31, 2025 were down by $10,453 (or 3%) from the $345,009 spent in the same period a year ago as a result of across the board efforts to lower expenses.
Current wording
Sales and marketing expenses of $339,528 for the three months ended June 30, 2025 were down by $25,846 (or 7%) from the $365,374 spent in the same period a year ago as a result of lower sales on which commissions were paid.
Previous wording
Interest income decreased from $17,672 a year ago to $12,357 in 2024 as a result of less funds available at the beginning of the period. Interest expense of $24,495 in the three months ended March 31, 2025 was up from $10,150 in the previous year as a result of the increase in subordinated debentures outstanding in the 2025 quarter vs. none in the same quarter a year ago. The total decrease of $19,660 from $7,522 of other income (net) in the period ended March 31, 2024 to total other expense (net) of $12,138 in the current quarter is expected to continue in future quarters due to the increase in borrowings.
Current wording
Interest income increased from $8,677 a year ago to $10,931 in 2025 as a result of more funds available at the beginning of the period. Interest expense of $26,305 in the three months ended June 30, 2025 was up from $10,057 in the previous year as a result of the increase in subordinated debentures outstanding in the 2025 quarter vs. none in the same quarter a year ago. The total increase of $13,994 from $1,380 of other expense (net) in the period ended June 30, 2025 to total other expense (net) of $15,374 in the current quarter is expected to continue in future quarters due to the increase in borrowings.
Previous wording
We realized a net (loss) of ($292,686) for the three months ended March 31, 2025 compared to a net (loss) of ($283,806) for the three months ended March 31, 2024. This increase of $8,880 (3%) was the result of the changes in gross profit, operating expenses and other income discussed above, which resulted in a (loss) before taxes of ($292,686) or a decrease of $80,019 from the (loss) before taxes of ($372,705) in 2024. The benefit from taxes in the three months ended March 31, 2025 was $0 versus a benefit from taxes of $88,899 in the same period a year ago as a result of increasing the valuation allowance in the three months ended March 31, 2024 and no increase in the three months ended March 31, 2025.
Current wording
We realized a net (loss) of ($393,639) for the three months ended June 30, 2025 compared to a net (loss) of ($297,988) for the three months ended June 30, 2024. This increase of $95,651 (32%) was the result of the changes in gross profit, operating expenses and other income and expense discussed above, which resulted in a (loss) before taxes of ($393,639) or a decrease of $4,803 from the (loss) before taxes of ($398,442) in 2024. The benefit from taxes in the three months ended June 30, 2025 was $0 versus a benefit from taxes of $100,454 in the same period a year ago as a result of increasing the valuation allowance in the three months ended June 30, 2024 and no increase in the three months ended June 30, 2025.
Previous wording
General and administrative expenses of $384,878 for the three months ended March 31, 2025 versus $314,926 for the three months ended March 31, 2024 were higher by $69,952 (22%) as a result mostly of higher professional fees.
Current wording
General and administrative expenses of $724,952 for the six months ended June 30, 2025 versus $677,934 for the six months ended June 30, 2024 were higher by $47,018 (7%) as a result of various increased expenses.
Previous wording
Revenues in the first three months of 2025 were higher compared to revenues during the same period in 2024. We believe that continued increased sales efforts, together with the expected availability of SpinDx™ for sale in 2026, may result in improved revenues in 2026 and beyond. Revenues in 2025 may be similar to revenues in 2024. Inflationary pressures have affected our business in a number of ways, including increasing the cost of raw materials, labor, and freight. Our actions to mitigate the impact of inflation, including pre-ordering components in higher than usual quantities, sourcing new vendors and increasing prices have been somewhat successful.
Current wording
Revenues in the three months ended June 30, 2025 were lower compared to revenues during the same period in 2024. For the six months ended June 30, 2025, revenues were similar to revenues for the same six months in 2024. We believe that continued increased sales efforts, together with the expected availability of SpinDx™ for sale in 2026 may result in improved revenues in 2026 and beyond. Revenues for the rest of 2025 may be similar to revenues in 2024. Inflationary pressures have affected our business in a number of ways, including increasing the cost of raw materials, labor, and freight. Our actions to mitigate the impact of inflation, including pre-ordering components in higher than usual quantities, sourcing new vendors and increasing prices have been moderately successful.
Previous wording
Our operating plan for the remainder of 2025 is focused on growing sales, increasing gross profits, and continuing research and development efforts on new products, including SpinDx™, for long-term growth. We cannot predict with certainty the expected sales, gross profit, net income or loss, or usage of cash and cash equivalents for 2025. However, we believe that cash resources will be sufficient to fund our operations for the next twelve months under our current operating plan. If we are unable to manage the business operations in line with our budget expectations, it could have a material adverse effect on business viability, financial position, results of operations and cash flows. Further, if we are not successful in sustaining profitability and remaining at least cash flow break-even, additional borrowings or capital may be required to maintain ongoing operations.
Current wording
Our operating plan for the remainder of 2025 is focused on growing sales, increasing gross profits, and continuing research and development efforts on new products, including SpinDx™, for long-term growth. We cannot predict with certainty the expected sales, gross profit, net income or loss, or usage of cash and cash equivalents for 2025. However, we believe that cash resources will be sufficient to fund our operations for the next twelve months under our current operating plan. If we are unable to manage the business operations in line with our budget expectations, it could have a material adverse effect on business viability, financial position, results of operations and cash flows. Further, if we are not successful in regaining profitability and remaining at least cash flow break-even, additional borrowings or capital may be required to maintain ongoing operations.
Previous wording
On December 31, 2024 we issued an unsecured $750,000 subordinated debenture bearing interest at 8.25%, including 62,500 warrants exercisable on or before December 31, 2030 into 62,500 shares of our common stock at a price of $4.50 per share. On March 1, 2025 we issued an unsecured $75,000 subordinated debenture bearing interest at 8.25%, including 6,250 warrants exercisable on or before December 31, 2030 into 6,250 shares of our common stock at a price of $4.50 per share. Using the Black Scholes model, the fair market value of these warrants resulted in deferred financing cost of $132,000, which is included in our balance sheet at March 31, 2025 at $126,829 after amortization in the three months ending March 31, 2025 of 5,171, and which resulted in an increase to capital of $120,000 on December 31, 2024 and $12,000 on March 1, 2025. In addition to the stated interest of 8.25%, this deferred financing cost will be a charge against income of $5,500 per quarter starting in the second quarter of 2025. The interest of 8.25% will be paid in quarterly increments in 2025, and will be included in monthly payments of $10,119 including principal, starting in 2026.
Current wording
On December 31, 2024 we issued an unsecured $750,000 subordinated debenture bearing interest at 8.25%, including 62,500 warrants exercisable on or before December 31, 2030 into 62,500 shares of our common stock at a price of $4.50 per share. On March 1, 2025 we issued an unsecured $75,000 subordinated debenture bearing interest at 8.25%, including 6,250 warrants exercisable on or before December 31, 2030 into 6,250 shares of our common stock at a price of $4.50 per share. Using the Black Scholes model, the fair market value of these warrants resulted in deferred financing cost of $132,000, which is included in our balance sheet at June 30, 2025 at $121,314 after amortization in the six months ending June 30, 2025 of 10,686, and which resulted in an increase to capital of $120,000 on December 31, 2024 and $12,000 on March 1, 2025. In addition to the stated interest of 8.25%, this deferred financing cost represents a charge against income of $5,514 per quarter starting in the second quarter of 2025. The interest of 8.25% will be paid in quarterly increments in 2025, and will be included in monthly payments of $10,119 including principal, starting in 2026.
Previous wording
As of March 31, 2025, cash and cash equivalents were $1,522,457, trade accounts receivable were $761,697 and current liabilities were $1,117,069 resulting in net liquid assets of $1,167,085. We believe that the diminishing of the Covid-19 pandemic, the resolution of supply chain issues, and the introduction of several new products during the last several years, along with new and on-going customer relationships will allow Lifeloc to operate profitably. If the revenue levels prior to 2020 do not continue to increase in a timely manner, if inflationary pressures are not contained, or if the development and market acceptance of SpinDx™ takes longer than expected, we may be required to seek additional sources of capital and/or to implement further cost reduction measures, as necessary.
Current wording
As of June 30, 2025, cash and cash equivalents were $995,750, trade accounts receivable were $765,730 and current liabilities were $956,094 resulting in net liquid assets of $805,386. We believe that the diminishing of the Covid-19 pandemic, the resolution of supply chain issues, and the introduction of several new products during the last several years, along with new and on-going customer relationships will allow Lifeloc to operate profitably. If the revenue levels prior to 2020 do not continue to increase in a timely manner, if inflationary pressures are not contained, or if the development and market acceptance of SpinDx™ takes longer than expected, we may be required to seek additional sources of capital and/or to implement further cost reduction measures, as necessary.
Previous wording
Equipment expenditures, consisting of SpinDx™ related equipment, during the three months ended March 31, 2025 were $18,548 compared to $41,858 and $16,572 for office equipment, a total of $58,430 for the same period in 2024, a decrease of $39,882. We incurred patent application costs of $21,708 in the three months ended March 31, 2024 versus $0 in 2025. No expired or fully amortized patents were removed from our financial statements in 2025 or 2024. As development of SpinDx progresses, and as normal wear and tear of equipment occurs, we expect to incur outlays for equipment and patent filings in 2025 and beyond.
Current wording
Equipment expenditures, consisting of SpinDx™ related and other equipment, during the six months ended June 30, 2025 were $242,251 compared to $491,291 for the same period in 2024, a decrease of $249,040. We incurred patent application costs of $21,708 in the six months ended June 30, 2024 versus $0 in 2025. No expired or fully amortized patents were removed from our financial statements in 2025 or 2024. As development of SpinDx progresses, and as normal wear and tear of equipment occurs, we expect to incur outlays for equipment and patent filings in 2025 and beyond.
Previous wording
We generally provide a standard one-year limited warranty on materials and workmanship to our customers. We provide for estimated warranty costs at the time product revenue is recognized. Warranty costs are included as a component of cost of goods sold in the accompanying statements of operations. For the three months ended March 31, 2025 and 2024, warranty costs were not deemed significant.
Current wording
We generally provide a standard one-year limited warranty on materials and workmanship to our customers. We provide for estimated warranty costs at the time product revenue is recognized. Warranty costs are included as a component of cost of goods sold in the accompanying statements of operations. For the three and six months ended June 30, 2025 and 2024, warranty costs were not deemed significant.
Previous wording
Rental income from space leased to our tenants is recognized in the month in which it is due.
Current wording
Rental income from space leased to our tenants was recognized in the month in which it was due.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
As was the case for the three months ended June 30, supply chain problems caused by Covid-19, as well as the other market impacts of Covid-19, were mostly resolved by the end of 2024, and the perceived need to monitor for the presence of alcohol reverted back to the level experienced previously. We increased prices and maintained our reduced costs at their 2024 levels where possible, although inflation took its toll, increasing the cost of raw materials, labor, and freight. We continued and intensified our new product development efforts while maintaining the high level of customer service that has led to an excellent reputation for outstanding customer service. With the introduction of new products, we believe Lifeloc will again be profitable.
Current report — wording carried from elsewhere
Research, development and sustaining engineering expenses.
Current report — wording carried from elsewhere
Interest income decreased from $26,349 a year ago to $23,288 in 2025 as a result of less funds available at the beginning of the period. Interest expense of $50,800 in the six months ended June 30, 2025 was up from $20,207 in the previous year as a result of the increase in subordinated debentures outstanding in 2025 vs. none in the same period a year ago. The total increase of $33,654 in other expense (net) in the period ended June 30, 2025 vs. the same six months a year ago is expected to continue for the rest of 2025 due to the increase in borrowings.
Current report — wording carried from elsewhere
We realized a net (loss) of ($686,325) for the six months ended June 30, 2025 compared to a net (loss) of ($581,794) for the six months ended June 30, 2024. This increase of $104,531(18%) was the result of the changes in gross profit, operating expenses and other income and expense discussed above, which resulted in a (loss) before taxes of ($686,325) or a decrease of $84,822 from the (loss) before taxes of ($771,147) in 2024. The benefit from taxes in the six months ended June 30, 2025 was $0 versus a benefit from taxes of $189,353 in the same period a year ago as a result of increasing the valuation allowance in the six months ended June 30, 2024 and no increase in the six months ended June 30, 2025.