Lifeloc Technologies, Inc.

What they do

Lifeloc designs, manufactures and sells portable hand-held and fixed-station breathalyzers plus mouthpieces, calibration products, service agreements and training. Its FC Series (launched 2001) is sold to domestic and international law enforcement and corrections and is DOT-approved as an evidential breath tester; the Workplace Series (EV30, Phoenix 6.0) serves federally regulated workplace testing. It sells globally through distributors and directly to users, and also manufactures breath alcohol components sold to other OEMs.

Revenue drivers

• FC Series breathalyzers — Fuel-cell evidential instruments for law enforcement and corrections, sold worldwide since 2001; the company called this line central to its growth since introduction.
• Workplace Series (EV30, Phoenix 6.0) — DOT-approved devices for workplace alcohol testing, including federally regulated transportation testing; earnings release cites Easycal calibration as contributing to market share gains here.
• Supplies, service and training — Mouthpieces, forms and labels, calibration products, optional service agreements, re-calibration services, spare parts, and instrument/user certification training, including via Lifeloc University.
• OEM components — Since 2006, Lifeloc has sold breath alcohol equipment components it manufactures to other OEMs for inclusion as subassemblies or components in their devices.

Recent performance

Second quarter 2026 net revenue was $2.445 million with a net loss of $(134) thousand, or $(0.05) per diluted share, versus $2.219 million and $(394) thousand, or $(0.14) per share, in Q2 2025 — revenue up 10%. Six-month 2026 revenue was $4.739 million with a net loss of $(287) thousand, or $(0.10) per share, compared to $4.496 million and $(686) thousand, or $(0.25) per share, in the first half of 2025. Q2 gross margin rose to 45% from 42%, and first-half margin was 44% versus 41%, which the company attributed to price increases and favorable product mix. R&D for the quarter remained high at $560 thousand, primarily for SpinDetect analyzer development, which the company said caused the current-period loss.

Strategy

Lifeloc is funding development of the SpinDetect centrifugal microfluidic drug analyzer, licensed exclusively from Sandia Corporation in 2016, while continuing to update and sell its alcohol testing lines. The company reported completing the SpinDetect disk design with all analytical chemistry on the disk, validated results against LC-MS with a limit of detection of about 10 ng/ml, and is starting beta testing of an oral-fluid delta-9-THC analyzer under a signed agreement. It is targeting a limited commercial launch in Q1 2027, followed by expanded drug panels and blood and breath sample types, the latter integrated with its LX9 breathalyzer. During Q2 2026 it closed $500,000 of financing via a loan from its Chairman of the Board, and the company states continued SpinDetect progress depends on timely access to capital.

Risks

• Capital dependence for SpinDetect — The company states continued progress toward SpinDetect commercialization depends on timely access to capital for fabrication, validation, regulatory preparation and market introduction.
• Persistent losses — Net losses were $(1.1) million in 2024 and $(2.5) million in 2025, with operating cash flow negative in 2023, 2024 and 2025.
• Grant and end-market funding — The 10-K states the law enforcement business depends on the availability of federal and state grants, and workplace demand is tied to safety-sensitive industries such as oil and gas and transportation.
• Trade policy and tariffs — The 10-K flags changes in trade policy and tariffs as risks that could increase costs and adversely affect sales, alongside exchange-rate and international customer timing effects.

Outlook

Management expects a limited commercial launch of the SpinDetect oral-fluid analyzer, initially measuring delta-9-THC, in Q1 2027, with subsequent releases expanding to additional drug panels and blood and breath sample types. The company says oral fluid drug screening is only the first application for the platform, with other uses such as food pathogen detection possible pending further research, regulatory clearances and license expansion. It expects newer L-series devices (LX9, LT7) to add sales incrementally rather than displace the FC Series.