Lifeloc Reports Second Quarter 2021 Results

WHEAT RIDGE, Colo., Aug. 6, 2021

Second Quarter Financial Highlights

Lifeloc posted quarterly net revenue of $1.730 million resulting in a quarterly net loss of $(110) thousand, or $(0.04) per diluted share.  These results compare to net revenue of $1.320 million and quarterly net loss of $(350) thousand, or $(0.14) per diluted share in the second quarter of 2020.  Revenue for the quarter increased 31% versus the second quarter last year, as demand recovers from the impact of the COVID-19 global pandemic and the government ordered shutdowns.  Net revenue of $3.539 million and a net profit of $294 thousand, or $0.12 per diluted share, compare to net revenue of $3.338 million and a net loss of $(515) thousand, or $(0.21) per diluted share, for the same six months of 2020.  The income for the first six months of 2021 includes the benefit from the forgiveness of the first round SBA Paycheck Protection Program (PPP) loan of $465 thousand.

As previously reported, Lifeloc qualified for and received a second PPP loan of $471 thousand in Q1 of 2021.  These loans are completely forgivable by the SBA if the proceeds are spent in accordance with the program rules.  As with the prior PPP loan, Lifeloc intends to comply with all requirements and plans to apply for forgiveness of this second loan in the third quarter of 2021.  The PPP program was successful in mitigating the negative effect of the significant demand suppression on cash flow from the pandemic while allowing Lifeloc to carefully reduce structural costs and retain critical personnel, with no compromise to our product development efforts. 

Demand is growing for our new platform LX9 and LT7 devices.  The features and performance of the new L-series products have driven penetration by meeting previously unaddressable market needs, such as wider temperature ranges and fast customization that incorporates local languages.  We expect that most L-series sales will be incremental to FC-series devices rather than displacing FC sales.  The L-series devices are meeting the requirements of the most modern registration standards, such as SAI's (Standards Australia International) latest AS 3547:2019 standards for Breath Alcohol Detectors.

We continue to invest in the significant growth opportunities of alcohol monitoring and drug detection.  The monitoring opportunity will be addressed primarily through the redesigned Real-Time Alcohol Detection and Reporting (R.A.D.A.R.^®) device.  Manufacture of the second generation R.A.D.A.R. 200 protoype devices began in late 2020.  Testing of these redesigned R.A.D.A.R. devices and integration with the monitoring system has been extensive and has required additional modification before final release.  The design has now been finalized with several devices currently in field testing by key customers and sales release planned this year.  Several upgrades have been made to the reporting system including migration to the cloud for higher reliability and an entirely new enrollment app to automate that process.