Lifeloc Technologies, Inc
For the period ended Dec 31, 2025. Filed Mar 27, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Mar 27, 2026
LCTCStored price and day change unavailable
What changed in Risk Factors?
Read the current filingPrevious report: 10-K
Period ended 2024-12-31; filed 2025-03-28.
0001079973-25-000507
Item 1A. Risk FactorsCurrent report: 10-K
Period ended 2025-12-31; filed 2026-03-27.
0001079973-26-000376
Item 1A. Risk FactorsThe 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 86 previous paragraphs and 85 current paragraphs.
75 unchanged; 4 reworded; 6 added; 7 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 12 previous and 12 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 (6)
Current report
Changes in trade policy and tariffs could increase our costs and adversely affect our sales.
Current report
Our business is subject to risks arising from changes in U.S. and foreign trade policy, including the imposition or escalation of tariffs, import restrictions, and retaliatory trade measures. The current trade environment is characterized by a high degree of policy uncertainty, and the scope and duration of existing and potential future measures remain difficult to predict.
Current report
We purchase components and materials from domestic and international suppliers. To the extent our suppliers are affected by tariff increases, the cost of such components may rise, and we may not be able to fully offset those increases through pricing adjustments or by identifying alternative suppliers on a timely basis or at all.
Current report
We also sell our products globally. Foreign governments may impose retaliatory tariffs or other trade barriers on U.S.-manufactured goods, which could increase the cost of our products for international customers, reduce demand, or cause distributors to seek alternative suppliers. If we are unable to effectively manage these risks, our business, financial condition, and results of operations could be materially and adversely affected.
Current report
Our outstanding indebtedness requires ongoing debt service and could limit our financial flexibility.
Current report
We have incurred indebtedness in the form of two subordinated debentures in an aggregate principal amount of $825,000, both bearing interest at 8.25% per annum. Monthly principal and interest payments on these debentures commenced in January 2026, and balloon payments are due in December 2030. We also carry a mortgage on our corporate headquarters with a maturity of September 2031. Our ability to service this indebtedness depends on our continued ability to generate cash from operations. If our revenues decline or our operating costs increase, we may have difficulty meeting these obligations. If we are unable to service our debt or to refinance or repay it at maturity, we could be required to seek additional financing on unfavorable terms, sell assets, or take other actions that could adversely affect our business and the interests of our stockholders.
Removed paragraphs (7)
Previous report
There is no assurance that our efforts to develop a marijuana breathalyzer will be successful or that significant sales will result from such development if successful.
Previous report
We are currently investing significant resources in the development of our SpinDx product line, in an effort to be the first viable product to address the potential market opportunity for testers for drugs of abuse. Though we have made significant progress toward commercialization of our first product in this space, there is no assurance that our efforts will ultimately succeed or, if they do, that we will be able to capture a significant amount of market share.
Previous report
Potential shifts in U.S. trade policy may impact our business operations and supply chain.
Previous report
With the recent U.S. presidential election and transition in executive branch leadership, the incoming administration has announced plans to impose new tariffs, including a 10% tariff on Chinese imports and 25% tariffs on imports from Mexico and Canada. If implemented, these tariffs could increase the costs of imported goods and components, affecting our cost structure, pricing strategy, and profitability. Furthermore, an increase in countervailing duty and anti-dumping investigations could result in additional trade restrictions or higher duties on key materials, further impacting our operations. Retaliatory tariffs from affected countries could also disrupt our supply chain and reduce demand for U.S.-based exports, potentially affecting our international revenue streams.
Previous report
We rely on foreign-manufactured components and global supply chains, and any increase in tariffs or trade restrictions may force us to seek alternative suppliers, renegotiate pricing, or absorb higher costs, which could have a material adverse effect on our financial condition and results of operations. As the political landscape evolves, we may need to adjust our strategies to comply with new regulatory and trade policies, which could result in increased costs, operational disruptions, or limitations on our ability to conduct business internationally.
Previous report
U.S. Trade relations negatively impact the availability of materials or the international market for the Company’s product.
Previous report
Changes in U.S. trade relations, particularly the impositions of tariffs by the U.S. and China, have had and are expected to continue to have material effects on the performance of many companies. The Company is negatively affected by tariffs on any component materials required for a company product. Trade relations also decrease any potential international market for the Company products, affecting the Company’s potential for growth.
Reworded paragraphs (4)
Previous wording
Sixteen percent of our product sales in 2024 and fifteen percent in 2023 were attributable to three customers, with whom we do not have long-term contracts. If orders from those customers are not renewed, our revenues may be adversely affected. Furthermore, at December 31, 2024, our accounts receivable balance included approximately $339,925 or 46% from one customer, $27,383 or 4% from a second customer, and $19,684, or 3%, from a third customer.
Current wording
Eighteen percent of our product sales in 2025 and sixteen percent in 2024 were attributable to three customers, with whom we do not have long-term contracts. If orders from those customers are not renewed, our revenues may be adversely affected. Furthermore, at December 31, 2025, our accounts receivable balance included approximately $344,879 or 46% from one customer, $56,096 or 7% from a second customer, and $39,780, or 5%, from a third customer.
Previous wording
Our ability to attract employees, including employees with a high degree of scientific and technical talent is crucial to the success of our business. There is intense competition for the services of such persons, and we cannot guarantee that we will continue to be able to attract and retain individuals possessing the necessary qualifications. If we cannot attract such individuals, we may not be able to keep our products current, bring new innovations to market or produce our products. As a result, our business could be damaged. Additionally, labor shortages, which have become more common due to COVID-19 impacts, threaten to damage our business.
Current wording
Our ability to attract employees, including employees with a high degree of scientific and technical talent is crucial to the success of our business. There is intense competition for the services of such persons, and we cannot guarantee that we will continue to be able to attract and retain individuals possessing the necessary qualifications. If we cannot attract such individuals, we may not be able to keep our products current, bring new innovations to market or produce our products. As a result, our business could be damaged.
Previous wording
We monitor our capital adequacy on an ongoing basis. To the extent that our funds are insufficient to fund future operating requirements, we may need to raise additional funds through corporate finance transactions or curtail our growth and reduce our liabilities. Any equity, hybrid or debt financing, if available at all, may be on terms that are not favorable to us. If we cannot obtain adequate capital on favorable terms or at all, our business, financial condition and operating results would be adversely affected.
Current wording
We monitor our capital adequacy on an ongoing basis. To the extent that our funds are insufficient to fund future operating requirements, we may need to raise additional funds through corporate finance transactions or curtail our growth and reduce our liabilities. Any equity, hybrid or debt financing, if available at all, may be on terms that are not favorable to us. If we cannot obtain adequate capital on favorable terms or at all, our business, financial condition and operating results would be adversely affected, and we may be required to reduce, delay, or discontinue our SpinDetect™ development program, which could materially affect our business prospects and the value of our investment in that technology.
Previous wording
Global credit and financial markets have experienced extreme volatility and disruptions in the past several years, including increased inflation, severely diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth, increases in unemployment rates and uncertainty about economic stability, and the volatility of such market and economic conditions have increased as a result of the COVID-19 pandemic and the Russian invasion of Ukraine. The scope, duration and long-term impact of the COVID-19 pandemic and the Russian invasion are unknown at this time, so there can be no assurance how significant any deterioration in credit and financial markets and confidence in economic conditions will be and how long it may continue. Our general business strategy may be adversely affected by any such economic downturn, volatile geopolitical and business environment or continued unpredictable and unstable market conditions. If the current equity and credit markets deteriorate, or do not improve, it may make any necessary debt or equity financing more difficult, more costly, and more dilutive. Failure to secure any necessary financing in a timely manner and on favorable terms could have a material adverse effect on our growth strategy, financial performance and stock price and could require us to delay or abandon research and development plans. In addition, there is a risk that one or more of our current suppliers or other partners may not survive these difficult economic times, which could directly affect our ability to attain our operating goals on schedule and on budget.
Current wording
Global credit and financial markets have experienced, and may continue to experience, significant volatility and disruption, including periods of increased inflation, diminished liquidity and credit availability, declines in consumer confidence and economic growth, and uncertainty about economic stability. Ongoing and emerging geopolitical conflicts, trade tensions, and other destabilizing events contribute to this uncertainty, and the scope, duration, and long-term impact of any such conditions are difficult to predict. Our general business strategy may be adversely affected by any such economic downturn, volatile geopolitical and business environment or continued unpredictable and unstable market conditions. If the current equity and credit markets deteriorate, or do not improve, it may make any necessary debt or equity financing more difficult, more costly, and more dilutive. Failure to secure any necessary financing in a timely manner and on favorable terms could have a material adverse effect on our growth strategy, financial performance and stock price and could require us to delay or abandon research and development plans. In addition, there is a risk that one or more of our current suppliers or other partners may not survive these difficult economic times, which could directly affect our ability to attain our operating goals on schedule and on budget.