Lifeloc (LCTC) 8-K Lifeloc Reports First Quarter 2018 Results

Exhibit 99.1

Lifeloc Reports First Quarter 2018 Results

WHEAT RIDGE, Colo., May 22, 2018 -- Lifeloc Technologies, Inc. (OTC: LCTC), a global leader in the development and manufacturing of breath alcohol testing devices, has announced financial results for the first quarter ended March 31, 2018.

“This was a very productive first quarter for Lifeloc,” said President and CEO Dr. Wayne Willkomm.  “We saw an 11% growth in revenue over the first quarter last year.  Earnings fell to just a small profit, but this is not surprising, as Lifeloc has been in a season of heavy investment for future growth.”

First Quarter Financial Highlights

The Company posted quarterly net revenue of $2.20 million resulting in a quarterly net income of $11 thousand, or less than $0.01 per diluted share.  These results compare to net revenue of $1.98 million for a quarterly net income of $78 thousand, or $0.03 per diluted share, in the first quarter of 2017.  Net cash increased by $37 thousand in the first quarter of 2018, and total debt was reduced by $11 thousand through regular mortgage payments.  Gross margin was 45% as compared to 49% in the first quarter of 2017.

Gross margin on net revenue was lower in the current quarter primarily as a result of implementation costs for a new enterprise resource planning (ERP) software system, lower royalties received, and costs associated with the Remote Alcohol Detection and Recognition or R.A.D.A.R. ® device business acquired last year.  R.A.D.A.R. devices are alcohol monitoring units with biometrics which can be used as a tool to supervise offenders as an alternative to incarceration.

Strategic Highlights

New product development through research and development investment is up over $140 thousand from the first quarter of last year.  Lifeloc has focused product development on three specific fronts.

· We are building a completely new breathalyzer with features that customers have demanded,  which we expect to launch later this year.

· The upgraded R.A.D.A.R. device – with a more robust design and better communications – is expected to launch later this year.

· Work continues on our development of technology for the real-time, quantitative analysis for a panel of drugs including THC, methamphetamine, cocaine, heroin,  and several other drugs of abuse, utilizing the SpinDx™ technology exclusively licensed by us from Sandia Corporation, as well as on the closely related THC breathalyzer.  The ability of our technology to detect very low quantities of THC has been demonstrated in our laboratories, but more work is needed to build a practical, portable device.

Additionally, Lifeloc has invested heavily in its information infrastructure with the implementation of a new ERP system, which went live on February 2. “Our team rallied to pull off an extraordinary transition, minimizing customer disruption and not missing a day’s shipping,” commented Dr. Willkomm. “This system includes integrated materials management, customer relations management and a faster, more robust e-commerce platform to better serve our customers.”

About Lifeloc Technologies

Lifeloc Technologies, Inc. (OTC: LCTC) is a trusted U.S. manufacturer of evidential breath alcohol testers and related training and supplies for Workplace, Law Enforcement, Corrections and International customers.  Lifeloc stock trades over-the-counter under the symbol LCTC.  We are a fully reporting Company with our SEC filings available on our web site, www.lifeloc.com.

Forward Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve substantial risks and uncertainties that may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements expressed or implied in this press release, including statements about our strategies, expectations about new and existing products, market demand, acceptance of new and existing products, technologies and opportunities, market size and growth, and return on investments in products and market, are based on information available to us on the date of this document, and we assume no obligation to update such forward-looking statements. Investors are strongly encouraged to review the section titled “Risk Factors” in our SEC filings.

R.A.D.A.R.® is a registered trademark of Lifeloc Technologies, Inc.

SpinDx™ is a trademark of Sandia Corporation.

Sarah Foley Lifeloc Technologies, Inc. http://www.lifeloc.com (303) 431-9500

LIFELOC TECHNOLOGIES, INC.
Condensed Balance Sheets
ASSETS
	March 31,			December 31,
	2018			2017
CURRENT ASSETS:	(Unaudited)
Cash	$	2,706,355		$	2,669,455
Accounts receivable, net		757,606			593,326
Inventories, net		1,182,511			1,175,103
Income taxes receivable		116,963			121,401
Prepaid expenses and other		103,836			21,804
Total current assets		4,867,271			4,581,089
PROPERTY AND EQUIPMENT, at cost:
Land		317,932			317,932
Building		1,928,795			1,928,795
Real-time Alcohol Detection And Recognition equipment and software		569,448			569,448
Production equipment and software		774,490			556,025
Training courses		432,375			432,375
Office equipment and software		261,385			204,282
Sales and marketing equipment		273,433			216,330
Research and development equipment and software		154,611			131,770
Less accumulated depreciation		(1,454,418	)		(1,349,499	)
Total property and equipment, net		3,258,051			3,007,458
OTHER ASSETS:
Patents, net		173,935			177,244
Deposits and other		2,184			259,037
Deferred taxes		65,596			66,531
Total other assets		241,715			502,812
Total assets	$	8,367,037		$	8,091,359
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	539,769		$	297,096
Term loan payable, current portion		42,541			42,101
Customer deposits		44,619			48,763
Accrued expenses		300,696			264,290
Deferred revenue, current portion		47,908			53,137
Reserve for warranty expense		41,500			40,000
Total current liabilities		1,017,033			745,387
TERM LOAN PAYABLE, net of current portion and
debt issuance costs		1,398,722			1,410,185
DEFERRED REVENUE, net of current portion		8,264			9,683
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, no par value; 50,000,000 shares
authorized, 2,454,116 shares outstanding		4,585,891			4,580,177
Retained earnings		1,357,127			1,345,927
Total stockholders' equity		5,943,018			5,926,104
Total liabilities and stockholders' equity	$	8,367,037		$	8,091,359

LIFELOC TECHNOLOGIES, INC.
Condensed Statements of Income (Unaudited)
	Three Months Ended March 31,
REVENUES:	2018			2017
Product sales	$	2,122,243		$	1,882,189
Royalties		65,065			79,825
Rental income		14,601			22,457
Total		2,201,909			1,984,471
COST OF SALES		1,201,746			1,019,592
GROSS PROFIT		1,000,163			964,879
OPERATING EXPENSES:
Research and development		338,326			196,368
Sales and marketing		335,401			339,644
General and administrative		297,333			303,594
Total		971,060			839,606
OPERATING INCOME		29,103			125,273
OTHER INCOME (EXPENSE):
Interest income		2,184			1,416
Interest expense		(14,714	)		(15,124	)
Total		(12,530	)		(13,708	)
NET INCOME BEFORE PROVISION FOR TAXES		16,573			111,565
(PROVISION FOR) FEDERAL AND STATE INCOME TAXES		(5,373	)		(33,572	)
NET INCOME	$	11,200		$	77,993
NET INCOME PER SHARE, BASIC	$	-		$	0.03
NET INCOME PER SHARE, DILUTED	$	-		$	0.03
WEIGHTED AVERAGE SHARES, BASIC		2,454,116			2,454,116
WEIGHTED AVERAGE SHARES, DILUTED		2,510,699			2,536,710

LIFELOC TECHNOLOGIES, INC.
Condensed Statements of Cash Flows (Unaudited)
	Three Months Ended March 31,
CASH FLOWS FROM OPERATING ACTIVITIES:	2018			2017
Net income	$	11,200		$	77,993
Adjustments to reconcile net income to net cash
provided from (used in) operating activities-
Depreciation and amortization		107,878			61,752
Provision for doubtful accounts, net change		1,500			1,500
Provision for inventory obsolescence, net change		27,500			(43,417	)
Deferred taxes, net change		935			17,200
Reserve for warranty expense, net change		1,500			1,500
Stock based compensation expense related to
stock options		5,714			6,164
Changes in operating assets and liabilities-
Accounts receivable		(165,780	)		(263,351	)
Inventories		(34,908	)		(32,246	)
Income taxes receivable		4,438			12,823
Prepaid expenses and other		(82,032	)		(49,585	)
Deposits and other		256,853			(1,557	)
Accounts payable		242,673			(42,046	)
Customer deposits		(4,144	)		2,236
Accrued expenses		36,406			9,548
Deferred revenue		(6,648	)		(6,846	)
Net cash provided from (used in)
operating activities		403,085			(248,332	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(355,512	)		(48,795	)
Cash paid for software acquired in asset acquisition		-			(396,948	)
Cash paid for equipment acquired in asset acquisition		-			(363,052	)
Cash paid for patents and patent applications acquired
in asset acquisition		-			(100,000	)
Patent filing expense		-			(7,717	)
Net cash (used in) investing activities		(355,512	)		(916,512	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments made on term loan		(10,673	)		(13,496	)
Net cash (used in) financing
activities		(10,673	)		(13,496	)
NET INCREASE (DECREASE) IN CASH		36,900			(1,178,340	)
CASH, BEGINNING OF PERIOD		2,669,455			3,772,064
CASH, END OF PERIOD	$	2,706,355		$	2,593,724
SUPPLEMENTAL INFORMATION:
Cash paid for interest	$	14,579		$	14,988
Cash paid for income tax	$	-		$	12,408