Lifeloc Technologies Reports 8% Revenue Growth in Q3 2025 Despite Increased Losses

Lifeloc Technologies, Inc. reported its financial results for the third quarter and the first nine months of 2025, revealing a total revenue of $2.26 million for the three months ended September 30, 2025, an increase of 8% from $2.09 million in the same period of 2024. For the nine months, total revenue reached $6.75 million, up 2% from $6.63 million year-over-year. The increase in revenue was primarily driven by higher product sales, which amounted to $2.24 million for the quarter and $6.70 million for the nine months, reflecting a rise of 8% and 2%, respectively. However, the company reported a net loss of $263,439 for the third quarter, compared to a loss of $158,327 in the prior year, and a net loss of $949,764 for the nine months, worsening from a loss of $740,121 in 2024.

The financial performance was impacted by rising costs, with the cost of sales for the third quarter increasing by 16% to $1.35 million, leading to a gross profit margin decline from 44% to 40%. Operating expenses also rose, with general and administrative costs increasing by 26% to $340,705, attributed to higher professional fees and insurance costs. Research and development expenses remained stable at $458,747, while sales and marketing expenses saw a slight increase of 4%. The company’s interest expenses surged to $36,953 in the third quarter, up from $10,019 a year earlier, due to increased borrowings.

In terms of operational developments, Lifeloc Technologies has shifted its focus to the commercialization of its SpinDetect™ centrifugal drug-analysis system, which is expected to launch in 2026. The company is also pursuing a merger with Electronic Systems Technology, Inc., which was announced on October 9, 2025, aimed at expanding its product offerings and market reach. The merger is subject to customary closing conditions, including shareholder approval and regulatory clearances.

Lifeloc's customer base and product adoption rates have shown signs of growth, with domestic product sales reaching $1.70 million in the third quarter, up from $1.52 million in the previous year. International sales, however, decreased slightly to $538,770 from $560,518. The company has also reported a decrease in rental income due to the expiration of its last lease in June 2025, which has now been fully integrated into its operations.

Looking ahead, Lifeloc Technologies anticipates continued revenue growth driven by an expanding distributor network and new product introductions. However, the company acknowledges the potential for ongoing operating losses as it invests in the development of SpinDetect™. Management remains focused on maintaining cash resources to support operations and is actively seeking additional financing to ensure the successful launch of its new product line. The company believes that its current cash position, along with improved market conditions, will allow it to navigate the challenges ahead.