Lifeloc Reports 2020 Full Year Results.

WHEAT RIDGE, Colo: Lifeloc Technologies, Inc. (OTC: LCTC), a global leader in the development and manufacturing of breath alcohol testing devices, has announced financial results for the 2020 fiscal year ended December 31, 2020.

2020 Financial Highlights

Lifeloc Technologies posted annual net revenue of $6.357 million resulting in 2020 after tax net loss of $922 thousand, or a loss of $0.38 per diluted share. These results compare to net revenue of $8.752 million for 2019, with net income of $626 thousand, or $0.26 per diluted share. The 2019 results included a one-time gain of $225 thousand from a licensing settlement.

The COVID-19 global pandemic and the government ordered shutdowns that came along with the pandemic significantly impacted our business. These unprecedented circumstances caused a departure from Lifeloc's consistent annual profitability and resulted in a 27% decline in revenues for 2020. This pandemic has impacted operations, adding costs while suppressing our workplace, law enforcement and international markets. Ironically, a recent study published online in the Journal of the American Medical Association Network shows an average increase in heavy alcohol drinking days of 19% during the pandemic and lockdown, indicating a greater need for Lifeloc products and potentially a pent-up market demand. On top of the pandemic, extended protests across the country impacted domestic law enforcement, diverting attention and funding. On a brighter note, with a greater emphasis on workplace hygiene, the pandemic did create openings and demonstrated the value of our hands-free Sentinel access control unit.

The Federal government's response to the pandemic included efforts to stabilize the economy and employment. The most relevant program to Lifeloc was the Paycheck Protection Program (PPP). As previously reported in 2020, Lifeloc received a $465 thousand SBA guaranteed loan, which could be completely forgiven by the SBA if the proceeds were spent in accordance with the program rules. Lifeloc complied with this program and applied for forgiveness in 2020, which was granted by the SBA in early 2021. The financial impact of the forgiveness will be realized in the first quarter of 2021. The PPP program was quite 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, thus enabling us to continue...

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