10-Q · May 14, 2026
In the latest 10-Q filing, Lifeloc Technologies reported a modest revenue increase of 1% year-over-year, totaling approximately $2.29 million, alongside a significantly reduced net loss of $152,713 compared to $292,686…
Earnings analysis · 10-Q
LCTC earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
Lifeloc delivered improving Q2 results, with revenue up 10% year over year to $2,444,957, gross margin expanding to approximately 44.7%, and diluted EPS improving to negative $0.05 from negative $0.14. Operating and net…
Read full summary
Lifeloc delivered improving Q2 results, with revenue up 10% year over year to $2,444,957, gross margin expanding to approximately 44.7%, and diluted EPS improving to negative $0.05 from negative $0.14. Operating and net losses narrowed materially as gross profit increased and operating expenses declined, but the company remains loss-making and consumed $262,577 of operating cash in the first six months. Liquidity was supported by a $500,000 related-party loan, increasing leverage and collateral risk, while SpinDetect progress provides a potential growth catalyst with a limited commercial launch targeted for Q1 2027.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.05
- Segment
- Portable hand-held breathalyzers, drug-screening products, accessories, supplies, education, training and royalties: total revenue of $2,444,957, up 10% year over year from $2,219,376. Product sales were $2,434,697, up 11% from $2,191,260; royalties declined to $10,260 from $19,800.
- Segment
- Building rental segment: $0 revenue versus $8,316 in Q2 2025; the tenant lease was not renewed after June 30, 2025. The company reports one operating and reportable segment as of June 30, 2026.
What stood out
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Revenue and Product Sales Grew
Q2 revenue increased 10% year over year to $2,444,957 from $2,219,376, driven by product sales of $2,434,697, which increased 11% from $2,191,260. Management attributed the increase to the acceleration of several larger customer orders.
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Gross Margin Expanded
Gross profit increased 18% to $1,092,526 from $924,599, while product gross margin improved to 45% from 42%. Cost of product sales rose only 4% to $1,352,431 from $1,294,777.
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Operating Loss Improved
The Q2 operating loss narrowed to $103,576 from $378,265, producing an operating margin of approximately negative 4.2% versus negative 17.0% a year earlier. Research and development expense declined 10% to $560,281, while sales and marketing expense declined 6% to $320,968.
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EPS Loss Narrowed
Net loss improved 66% to $134,330, or $0.05 per diluted share, from a net loss of $393,639, or $0.14 per diluted share, in Q2 2025. For the first six months, net loss improved to $287,043 from $686,325 and diluted EPS improved to negative $0.10 from negative $0.25.
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Cash Burn and Capex Declined
Cash and cash equivalents increased to $908,208 from $746,001 at December 31, 2025. Six-month net cash used in operating activities improved to $262,577 from $389,576, while investing cash use declined to $19,781 from $242,251.
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SpinDetect Advances Toward Launch
Management completed the SpinDetect microfluidic disk design and plans beta testing focused on delta-9-THC detection. The initial commercial product is expected to measure delta-9-THC, with a limited commercial launch anticipated in Q1 2027.
What to watch
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Debt and Interest Burden Increased
Total liabilities increased to $3,262,172 from $2,582,790 at December 31, 2025. Debt increased primarily after the company received $500,000 from a related-party term loan on May 1, 2026; interest expense rose to $39,610 in Q2 from $26,305.
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Related-Party Financing Risk
The new related-party loan bears interest at 10.5% and is secured by substantially all company assets. The filing states that substantially all assets are pledged to multiple lenders, which could limit additional financing or asset dispositions and may create conflicts because the lender is the CFO and Board Chairman.
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Continuing Cash Burn
The company used $262,577 of operating cash during the first six months and had free cash flow of approximately negative $282,358 after $19,781 of equipment purchases. Management said additional borrowings or capital may be required if the company cannot remain at least cash-flow break-even.
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Inventory and Obsolescence Exposure
Net inventories increased 8% to $2,839,516 from $2,633,614 at December 31, 2025, including finished goods of $591,028 versus $477,125. The company carries a $439,156 obsolescence reserve and warned that less favorable market conditions could require additional write-downs.
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SpinDetect Funding and Execution Risk
SpinDetect commercialization remains dependent on timely access to capital for fabrication, validation, regulatory preparation and market introduction. Development agreements and outstanding purchase orders totaled $2,642,287 at June 30, 2026, while management expects operating losses to continue during 2026.
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Large-Order Revenue Volatility
Revenue timing remains volatile because customer orders are intermittent and larger orders can materially affect quarterly results. Management said 2026 revenue may be similar to 2025 revenue, despite six-month 2026 revenue of $4,738,769 versus $4,496,410 in the prior year.
Management's outlook
No formal numeric revenue or EPS guidance was provided. Management said 2026 revenues may be similar to 2025 revenues, expects operating losses to continue in 2026, and anticipates a limited commercial SpinDetect launch in Q1 2027. Management stated that cash resources are expected to fund operations for the next twelve months under the current operating plan.
Earlier filings 4
10-K · March 27, 2026
Lifeloc reported full-year revenue of $2,273,000 and GAAP EPS of $(0.55) for the period ended December 31, 2025. Management emphasizes a core strategy of growing its fuel-cell breath alcohol business while…
10-Q · May 15, 2025
Lifeloc reported Q1 2025 revenue of $2,277,034, up $123,591 (≈5.7% YoY) with gross profit rising to $908,566 (gross margin 39.9%). Operating loss narrowed to $(280,548) (operating margin -12.3%) and GAAP net loss was…
10-Q · November 12, 2024
Lifeloc reported a weaker quarter: Q3 revenue fell to $2,087,326 (down $608,182, -22.6% YoY), gross profit declined to $911,952 and the company swung to an operating loss of $208,321 (operating margin -9.98%), producing…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.