Lifeloc Technologies Reports 6% Revenue Growth and Net Loss in Q1 2025

Lifeloc Technologies, Inc. reported its financial results for the first quarter of 2025, revealing total revenues of $2.277 million, a 6% increase from $2.153 million in the same period of 2024. This growth was primarily driven by a 6% rise in product sales, which reached $2.263 million compared to $2.134 million a year earlier. The company’s gross profit also saw an increase, rising to $908,566, up 9% from $835,307 in the prior year, resulting in a gross profit margin improvement from 38% to 40%. However, Lifeloc recorded a net loss of $292,686 for the quarter, slightly higher than the net loss of $283,806 reported in the first quarter of 2024.

In terms of operational changes, Lifeloc's research and development expenses decreased by 16% to $469,680, reflecting a reduction in payments to outside contractors. Conversely, general and administrative expenses rose by 22% to $384,878, largely due to increased professional fees. The company also experienced a notable increase in interest expenses, which rose to $24,495 from $10,150 in the previous year, attributed to higher outstanding subordinated debentures. The overall operating loss before taxes improved to $292,686 from a loss of $372,705 in the prior year.

Lifeloc continues to focus on expanding its product offerings, particularly in the alcohol and drug detection markets. The company is advancing its SpinDx™ technology, which is expected to launch in stages starting in 2026. This technology aims to provide rapid, on-site drug testing capabilities, enhancing Lifeloc's competitive position in the market. The company is also committed to maintaining its training programs through Lifeloc University, which has been modernized to include mobile access and regulatory updates.

As of March 31, 2025, Lifeloc's cash and cash equivalents stood at $1.522 million, with trade accounts receivable at $761,697 and current liabilities totaling $1.117 million. The company reported net liquid assets of $1.167 million, indicating a stable liquidity position. Looking ahead, Lifeloc anticipates that increased sales efforts and the introduction of new products will contribute to revenue growth. However, the company acknowledges the potential for continued operating losses as it invests in the commercialization of SpinDx™ and navigates inflationary pressures affecting raw materials and labor costs.