Lifeloc Technologies, Inc

In addition to the other information set forth in this report, you should carefully consider the factors discussed in ‘‘Risk Factors’’ in our Annual Report on Form 10-K for the year ended December 31, 2025, which could materially affect our business, financial condition and/or future results. The risks described in our Annual Report on Form 10-K are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

We have increased our reliance on related-party financing, which may present conflicts of interest and limit our financial flexibility.

On May 1, 2026, we entered into a loan agreement with our CFO and Board Chairman. The loan is secured by substantially all assets of the Company, including a second mortgage on our building and is subordinate to the prior perfected security interest held by UMB (formerly Citywide Banks). As a result, substantially all of our assets are now pledged as collateral to multiple lenders, which may limit our ability to obtain additional financing or to dispose of assets without lender consent. The interest rate on the loan is subject to upward adjustment based on changes in the prime rate, which could increase our debt service costs in a rising rate environment. In addition, because the lender is also our CFO and Board Chairman, the terms of the loan were not negotiated on an arm’s-length basis with an unrelated third party, and the lender’s dual role could present conflicts of interest in connection with future decisions regarding the loan, including any amendments, extensions, or enforcement actions.