Lifeloc Technologies, Inc
For the period ended Sep 30, 2025. Filed Nov 12, 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.
Sep 30, 2025 · Filed Nov 12, 2025
LCTCStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-11.
0001079973-25-001237
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-12.
0001079973-25-001691
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 76 previous paragraphs and 78 current paragraphs.
47 unchanged; 24 reworded; 7 added; 5 removed; 0 previous and 0 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 (7)
Current report
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Current report
In 2016, we obtained exclusive rights to develop and commercialize Sandia National Laboratories’ patented SpinDx™ technology for drugs of abuse. Lifeloc has adapted this technology platform which uses centrifugal disk and microfluidics technology to enable rapid, on-site, and cost-effective drug testing capable of detecting trace levels of potent substances such as fentanyl, cocaine, and delta-9-THC from extremely small (microliter-level) samples. After initial delays related to the COVID-19 pandemic, development has advanced significantly, and in 2024 we filed our first utility patent application covering improvements to the core system. While Sandia retains ownership of the foundational patents, patentable enhancements are the property of Lifeloc. We are commercializing this as the SpinDetect™ Centrifugal Drug Analyzer.
Current report
The SpinDetect™ analyzer is designed to address key limitations in existing drug-testing methods. Its ability to resolve psychoactive delta-9-THC from inactive metabolites supports more accurate assessments of recent use and potential impairment - an important differentiator in marijuana testing, where other devices may yield false positives from non-impairing compounds. We intend to introduce the system in stages, starting with a saliva-based product, and later expanding to blood and breath sample capabilities, the latter integrated with our LX9 breathalyzer to support a future marijuana breathalyzer solution. Beta testing with human subjects is scheduled in partnership with University of Colorado Anschutz Medical Campus, with commercial launch targeted for 2026.
Current report
The platform can be adapted to detect a wide range of substances, and we are actively negotiating an expansion of our license to include applications beyond current drug-testing markets. Potential future applications include the detection of biological hazards such as listeria and salmonella.
Current report
Sales and marketing expenses of $341,567 for the three months ended September 30, 2025 were up by $11,851 (or 4%) from the $329,716 spent in the same period a year ago as a result of lower trade show and travel expenses.
Current report
General and administrative expenses of $340,705 for the three months ended September 30, 2025 versus $269,450 for the three months ended September 30, 2024 were higher by $71,255 (26%) as a result of across the board cost increases, including professional fees, insurances, and others.
Current report
For the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024*.*
Removed paragraphs (5)
Previous report
In 2016, we acquired exclusive rights to develop and commercialize Sandia Corporation’s patented SpinDx™ technology, which enables rapid, on-site, and cost-effective drug testing using a centrifugal disk platform capable of detecting trace levels of drugs from small samples. Despite initial delays due to the pandemic, we have advanced the technology and filed our first utility patent application in 2024 for improvements to the system. SpinDx™ offers a unique advantage over competitors by isolating psychoactive delta-9-THC from its inactive metabolites, enabling more accurate impairment detection—especially critical for marijuana testing where competitive devices may yield false positives from non-impairing compounds. We plan to launch the product in stages, beginning with a saliva-based system, followed by blood and breath sample capabilities, using our LX9 breathalyzer as part of a future marijuana breathalyzer solution. Beta testing with human subjects is set to begin in partnership with Anschutz Medical Center in Colorado, with commercial launch expected in 2026.
Previous report
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 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.
Previous report
For the six months ended June 30, 2025 compared to the six months ended June 30, 2024*.*
Previous report
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.
Reworded paragraphs (24)
Previous 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.
Current wording
We own our corporate headquarters in Wheat Ridge, Colorado, occupying all 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
Possibility of Operating Losses. Over many of the past several years we have operated profitably; however, prior to that, and in 2021 through 2024, we incurred operating losses. Those operating losses are continuing in 2025 and we expect them to continue as we continue to work toward the commercialization of SpinDx. There is no assurance that we will not incur operating losses in any given quarter or year in the future.
Current wording
Possibility of Operating Losses. Over many of the past several years we have operated profitably; however, prior to that, and in 2021 through 2024, we incurred operating losses. Those operating losses are continuing in 2025 and we expect them to continue as we continue to work toward the commercialization of SpinDetect™. There is no assurance that we will not incur operating losses in any given quarter or year in the future.
Previous wording
Research and Development Expenses. We expect to maintain our research and development expenses through 2025, and to begin to reduce them as we complete development of our new product line.
Current wording
Research and Development Expenses. During the third quarter of 2025, the Company incurred material research, development, and demonstration costs related to its SpinDetect™ centrifugal drug-analysis system, including prototype production and initial customer demonstration activities. These expenditures represent a significant investment in the Company’s future product pipeline. We expect to maintain our research and development expenses through 2025, and to begin to reduce them as we complete development of our new product line.
Previous 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.
Current wording
Our product sales for the three months ended September 30, 2025 were $2,241,331, an increase of 8% from $2,075,994 for the same period a year ago. This increase results from the several larger orders in the current period that may have reflected winning additional states’ law enforcement endorsements. When royalties of $16,117 are included, total revenues of $2,257,448 increased by $170,122, or 8%, for the three months ended September 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 decreased by $8,316 as a result of the expiration on June 30, 2025 of the one remaining lease that was not renewed.
Previous 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.
Current wording
Despite higher product sales, total gross profit for the three months ended September 30, 2025 of $906,693 represented a decrease of $5,259 (1%) from total gross profit of $911,952 for the three months ended September 30, 2024, primarily as a result of inflationary pressures and tariffs. Cost of product sales increased from $1,164,947 in the three months ended September 30, 2024 to $1,350,755 in the same period in 2025, an increase of $185,785 (16%). As a result, gross profit margin on products decreased from 44% in the 3 months ended September 30, 2024 to 40% in the same period in 2025.* *
Previous 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™.
Current wording
Research, development and sustaining engineering expenses continued at the high level of $458,747, or 20% of product sales, for the three months ended September 30, 2025, representing a decrease of $12% over the $521,107 in the same period a year ago. This decrease is primarily due to timing of services from outside contractors needed for continuing design work related to SpinDetect™.
Previous 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.
Current wording
Interest income decreased from $9,525 a year ago to $7,840 in 2025 as a result of less funds available at the beginning of the period. Interest expense of $36,953 in the three months ended September 30, 2025 was up from $10,019 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 $28,619 from $494 of other expense (net) in the period ended September 30, 2024 to total other expense (net) of $29,113 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 ($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.
Current wording
We realized a net (loss) of ($263,439) for the three months ended September 30, 2025 compared to a net (loss) of ($158,327) for the three months ended September 30, 2024. This increase of $105,112 (66%) 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 ($263,439) or an increase of $54,624 from the (loss) before taxes of ($208,815) in 2024. The benefit from taxes in the three months ended September 30, 2025 was $0 versus a benefit from taxes of $50,488 in the same period a year ago as a result of increasing the valuation allowance in the three months ended September 30, 2024 and no increase in the three months ended September 30, 2025.
Previous wording
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 wording
As was the case for the three months ended September 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 and tariffs took their 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.
Previous wording
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 wording
Our product sales for the nine months ended September 30, 2025 were $6,695,638, an increase of $114,777 or 2% from $6,580,861 for the same period a year ago. This increase results from several larger orders in the current period that may have reflected customers’ increased availability of funds in the current period. In addition, the continuing inflationary outlook on customers’ budgets may also have played a role. When royalties of $41,588 and rental income of $16,632 are included, total revenues of $6,753,858 increased by $125,759, or 2%, for the nine months ended September 30, 2025 when compared to the same nine 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 decreased by $7,830 and was discontinued entirely on June 30, 2025 as a result of the expiration of the one remaining lease that was not renewed.
Previous wording
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 wording
Total gross profit for the nine months ended September 30, 2025 of $2,739,858 represented little change from total gross profit of $2,740,855 for the nine months ended September 30, 2024. Cost of product sales for the nine months ended September 30, 2025 was $4,004,894 vs. $3,869,977, an increase of $134,917 as a result of higher product sales. Gross profit margin on products in the nine months ending September 30, 2025 was 40%, down from 41% for the same period in 2024.
Previous wording
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 wording
Research, development and sustaining engineering expenses were $1,551,689 for the nine months ended September 30, 2025, a decrease of $187,293 (11%) from the $1,738,982 in the same nine months ended September 30, 2024. This decrease results primarily from timing of services from outside contractors and is expected to again increase in the remainder of 2025.
Previous wording
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 wording
Sales and marketing expenses of $1,015,651 for the nine months ended September 30, 2025 were down by $24,448 (or 2%) from the $1,040,099 spent in the same period a year ago as a result primarily of lower trade show and travel expenses.
Previous 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.
Current wording
General and administrative expenses of $1,065,657 for the nine months ended September 30, 2025 versus $947,384 for the nine months ended September 30, 2024 were higher by $118,273 (13%) as a result of various increased expenses.
Previous wording
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 wording
Interest income decreased from $35,874 a year ago to $31,128 in 2025 as a result of less funds available at the beginning of the period. Interest expense of $87,753 in the nine months ended September 30, 2025 was up from $30,226 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 decrease of $62,273 in other expense (net) in the period ended September 30, 2025 vs. the same nine months a year ago is expected to continue for the rest of 2025 due to the increase in borrowings.
Previous wording
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.
Current wording
We realized a net (loss) of $949,764) for the nine months ended September 30, 2025 compared to a net (loss) of ($740,121) for the nine months ended September 30, 2024. This increase of $209,643 (28%) 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 ($949,764) or a decrease of $30,198 from the (loss) before taxes of ($979,962) in 2024. The benefit from taxes in the nine months ended September 30, 2025 was $0 versus a benefit from taxes of $239,841 in the same period a year ago as a result of increasing the valuation allowance in the nine months ended September 30, 2024 and no increase in the nine months ended September 30, 2025.
Previous 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.
Current wording
Revenues in the three months ended September 30, 2025 were higher compared to revenues during the same period in 2024. For the nine months ended September 30, 2025, revenues were similar to revenues for the same nine months in 2024. We believe that continued increased sales efforts, together with the expected availability of SpinDetect™ 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 and tariffs 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
We expect our quarter-to-quarter revenue fluctuations to continue, due to the unpredictable timing of large orders from customers and the size of those orders in relation to total revenues. Going forward, we intend to focus our development efforts on products we believe offer the best prospects to increase our intermediate and near-term revenues, with particular emphasis on completing SpinDx™.
Current wording
We expect our quarter-to-quarter revenue fluctuations to continue, due to the unpredictable timing of large orders from customers and the size of those orders in relation to total revenues. Going forward, we intend to focus our development efforts on products we believe offer the best prospects to increase our intermediate and near-term revenues, with particular emphasis on completing SpinDetect™.
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 regaining 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 SpinDetect™, 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, although we are seeking additional financing. 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 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.
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 September 30, 2025 at $115,800 after amortization in the nine months ending September 30, 2025 of 16,200, 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
We have traditionally funded working capital needs through product sales and close management of working capital components of our business. Historically, we have also received cash from private offerings of our common stock, warrants to purchase shares of our common stock, and notes. In July, 2024 we completed a private placement of 210,000 shares of our common stock at $3.80 per share for a total raise of $798,000 with a related party. On December 31, 2024, we completed the issuance of a six-year subordinated debenture for $750,000 with a third party. On March 1, 2025, we completed the issuance of a 70-month subordinated debenture for $75,000 with a third party. In our earlier years, we incurred quarter to quarter operating losses to develop current product applications, utilizing a number of proprietary and patent-pending technologies. Although we have been profitable in recent years except 2020, 2022 and 2024, we can provide no assurances that operating losses will not occur in the future. Should that situation arise, we may not be able to obtain working capital funds necessary in the time frame needed and at satisfactory terms, if at all.
Current wording
We have traditionally funded working capital needs through product sales and close management of working capital components of our business. Historically, we have also received cash from private offerings of our common stock, warrants to purchase shares of our common stock, and notes. In July, 2024 we completed a private placement of 210,000 shares of our common stock at $3.80 per share for a total raise of $798,000 with a related party. On December 31, 2024, we completed the issuance of a six-year subordinated debenture for $750,000 with a third party. On March 1, 2025, we completed the issuance of a 70-month subordinated debenture for $75,000 with a third party. We are seeking additional financing, which, if not secured, is likely to result in delay in releasing SpinDetect™ to the market. In our earlier years, we incurred quarter to quarter operating losses to develop current product applications, utilizing a number of proprietary and patent-pending technologies. Although we have been profitable in recent years except 2020, 2022, 2024 and in 2025, we can provide no assurances that operating losses will not occur in the future. Should that situation arise, we may not be able to obtain working capital funds necessary in the time frame needed and at satisfactory terms, if at all.
Previous 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.
Current wording
As of September 30, 2025, cash and cash equivalents were $685,097, trade accounts receivable were $864,456 and current liabilities were $907,861 resulting in net liquid assets of $641,692. 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 SpinDetect™ 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 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.
Current wording
Equipment expenditures, consisting of SpinDetect™ related and other equipment, during the nine months ended September 30, 2025 were $350,156 compared to $625,238 for the same period in 2024, a decrease of $275,082. We incurred patent application costs of $21,708 in the nine months ended September 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 SpinDetect progresses, and as normal wear and tear of equipment occurs, we expect to incur outlays for equipment and patent filings in 2026 and beyond.
Previous wording
Rental income from space leased to our tenants was recognized in the month in which it was due.
Current wording
Rental income from space leased to our tenants was recognized in the month in which it was due. The last remaining lease expired on June 30, 2025 and was not renewed.