0001079973-26-000376
SEC filingLifeloc Technologies reported a net loss of $2.5 million for FY 2025, a significant increase from a $1.1 million loss in FY 2024. Total revenues grew 6% to $9.0 million, driven by product sales of $9.0 million, while royalties increased to $52K and rental income decreased to $17K. Gross profit improved 6% to $3.6 million, maintaining a 40% gross margin. However, operating expenses of $4.9 million resulted in an operating loss of $1.2 million. The company's cash position declined to $746K, with net cash used in operating activities of $499K. Key developments include progress on the SpinDetect™ platform with expected commercial launch in 2026 and the termination of the ELST merger agreement in February 2026.
Lifeloc Technologies reported FY 2025 results with total revenues of $9.0 million, representing a 6% increase from $8.5 million in FY 2024. Product sales drove this growth, increasing to $9.0 million from $8.5 million. However, the company recorded a net loss of $2.5 million, significantly worse than the $1.1 million loss in FY 2024. Gross profit improved to $3.6 million (40% margin) from $3.4 million (40% margin). Operating expenses totaled $4.9 million, resulting in an operating loss of $1.2 million. The balance sheet shows total assets of $6.7 million, with cash declining to $746K from $1.2 million at the end of FY 2024.
Revenue growth was primarily driven by product sales, which increased 6% to $9.0 million. The company attributed this growth to new customer acquisitions and expansion within existing customer accounts, including fleet refresh activity. Royalties increased to $52K from $34K due to higher sales by royalty-paying customers. Rental income decreased to $17K from $33K as the company elected not to renew a lease for a portion of its building. Geographically, domestic sales represented 74% ($6.7 million) of product sales, while international sales accounted for 26% ($2.3 million). The company noted that 18% of product sales in 2025 were attributable to three customers, with no long-term contracts in place.
Gross margin remained stable at 40% in both FY 2025 and FY 2024, with gross profit increasing to $3.6 million from $3.4 million. Cost of sales increased 6% to $5.4 million, primarily due to inflationary pressures on raw materials, labor, and freight. Operating expenses totaled $4.9 million, with research and development expenses of $2.2 million (down 4% from FY 2024), sales and marketing expenses of $1.3 million (similar to prior year), and general and administrative expenses of $1.4 million (up 11% due to public company and legal expenses). The operating loss was $1.2 million, compared to $1.4 million in FY 2024.
Net cash used in operating activities was $499K, primarily due to the net loss of $2.5 million, partially offset by non-cash adjustments including depreciation of $443K and deferred tax changes of $1.2 million. Investing activities used $354K for purchases of property and equipment. Financing activities provided $356K from equity issuances and debenture proceeds. Total assets declined to $6.7 million from $8.7 million, with current assets of $4.3 million including inventories of $2.6 million. Total liabilities were $2.6 million, including term loan debt of $1.1 million and subordinated debentures of $681K. Stockholders' equity was $4.1 million.
The company expects to launch its SpinDetect™ microfluidic detection platform in 2026, with initial products designed to measure drugs of abuse in oral fluid. Development has advanced significantly, with prototype analyzers demonstrated at industry conferences. Management believes cash resources will be sufficient to fund operations for the next twelve months under the current operating plan. However, the company noted that if unable to regain profitability and achieve cash flow break-even, additional capital may be required. Key risks include dependence on key personnel (particularly CEO Dr. Wayne Willkomm), concentration of revenue from a few customers, regulatory requirements for DOT approval, and competitive pressures in the alcohol testing market.