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Lifeloc Technologies, Inc. (OTC:LCTC), a global leader in the development and manufacturing of breath alcohol testing devices, has announced financial results for the 2018 fiscal year ended December 31, 2018.

2018 Financial Highlights

Lifeloc Technologies posted annual net revenue of$8.44 millionresulting in 2018 after tax net income of$217 thousand, or$0.09per diluted share. These results compare to net revenue of$7.99 millionfor 2017 full year, with net income of$15 thousand, or$0.01per diluted share. Revenue for 2018 grew 6% over the prior year. Our balance sheet grew even stronger, with a growth in cash of $119 thousand and a debt reduction of $40 thousand.

This has been a transitional year for Lifeloc Technologies. In 2018 we made a significant investment in the upgrade of our enterprise resource planning (ERP) information infrastructure for improved efficiency and to handle a broadening product line. This has already contributed some sales growth through the upgraded e-Commerce portal. We are completing a multiyear R&D investment for the development of a completely new breathalyzer platform that will be introduced in 2019. And as these projects wind down, freed resources will be deployed to accelerating the development of our rapid drug detection based on the SpinDx(TM) technology, including a rapid, quantitative marijuana breathalyzer, as well as advancing our monitoring business, primarily through the Real-Time Alcohol Detection and Recognition (R.A.D.A.R.(R)) device.

Our vision is that Lifeloc becomes the world’s leading company in real-time alcohol and drug abuse detection and monitoring. To that end, we continue to invest aggressively in research and development. This R&D investment amounted to over 13% of revenue for the year. Lifeloc is committed to bringing the most advanced alcohol breathalyzers, alcohol monitoring devices and marijuana breathalyzers to the market.

“We are glad to return to a year of growth, having achieved some modest revenue growth in 2018 through improving sales channels, even though there were no new product introductions this year,” commented Dr. Wayne Willkomm, President and CEO. “2019 will be different, with a pipeline of new breathalyzer and affiliated launches which will deliver more performance and value to our customers.”

In addition to operational investments, Lifeloc Technologies is pleased to announce that the Depository Trust Corporation (the “DTC”) has approved its common stock for DWAC/FAST transfer through the Company’s Transfer Agent, Corporate Stock Transfer, Inc. This newly approved stock transfer capability will enable Lifeloc’s shareholders to transfer their shares of Lifeloc stock electronically after buying or selling, without the extra cost and burden associated with the processing of physical share certificates.

DWAC/FAST transfer expedites the transaction process, while also eliminating the risks associated with the loss and replacement of physical share certificates. “We are pleased to facilitate easier trading for our shareholders,” said Dr. Willkomm. “Not only does becoming DWAC/FAST eligible provide our existing shareholders with new efficiencies, but we hope for more liquidity and better valuation in the open market, allowing us to continue expanding our shareholder base,” he added.

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.(R) is a registered trademark of Lifeloc Technologies, Inc.

SpinDx(TM) is a trademark of Sandia Corporation.

LIFELOC TECHNOLOGIES, INC.                                                          Balance Sheets                                                              ASSETS------------------------------------------------------------------------------------------------------------------------                                                                                                          December 31,                                                                                               -----------------------------------CURRENT ASSETS:                                                                                   2018                2017                                                                                               ----------          ----------                       Cash and cash equivalents                                             $  2,788,327        $  2,669,455                       Accounts receivable, net                                                   675,136             593,326                       Inventories, net                                                         1,290,607           1,175,103                       Income taxes receivable                                                     90,629             121,401                       Prepaid expenses and other                                                  35,155              21,804                                                                                               ----------          ----------                             Total current assets                                               4,879,854           4,581,089PROPERTY 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                                          800,569             556,025                       Training courses                                                           432,375             432,375                       Office equipment and software                                              241,836             204,282                       Sales and marketing equipment                                              219,797             216,330                       Research and development equipment and software                            159,810             131,770                       Less accumulated depreciation                                           (1,649,203 )        (1,349,499 )                                                                                               ---------- ---      ---------- ---                            Total property and equipment, net                                   3,021,359           3,007,458OTHER ASSETS:                       Patents, net                                                               158,147             177,244                       Deposits and other                                                         140,452             259,037                       Deferred taxes                                                              79,869              66,531                                                                                               ----------          ----------                            Total other assets                                                    378,468             502,812                                                                                               ----------          ----------                            Total assets                                                     $  8,279,681        $  8,091,359                                                                                               ==========          ==========                                               LIABILITIES AND STOCKHOLDERS' EQUITY------------------------------------------------------------------------------------------------------------------------CURRENT LIABILITIES:                       Accounts payable                                                      $    343,783        $    297,096                       Term loan payable, current portion                                          43,207              42,101                       Customer deposits                                                           19,265              48,763                       Accrued expenses                                                           250,912             264,290                       Deferred revenue, current portion                                           44,218              53,137                       Reserve for warranty expense                                                40,000              40,000                                                                                               ----------          ----------                             Total current liabilities                                            741,385             745,387TERM LOAN PAYABLE, net of current portion and                       debt issuance costs                                                      1,369,347           1,410,185DEFERRED REVENUE, net of current portion                                                            8,212               9,683COMMITMENTS AND CONTINGENCIESSTOCKHOLDERS' EQUITY:                       Common stock, no par value; 50,000,000 shares                         authorized, 2,454,116 shares outstanding                               4,597,646           4,580,177                       Retained earnings                                                        1,563,091           1,345,927                                                                                               ----------          ----------                             Total stockholders' equity                                         6,160,737           5,926,104                                                                                               ----------          ----------                             Total liabilities and stockholders' equity                      $  8,279,681        $  8,091,359                                                                                               ==========          ==========
LIFELOC TECHNOLOGIES, INC.                                  Statements of Income                                                          Years Ended December 31,                                                    -------------------------------------REVENUES:                                                  2018               2017                                                        ---------          ---------                        Product sales                 $ 8,104,003        $ 7,629,474                        Royalties                         247,765            289,588                        Rental income                      85,886             71,676                                                        ---------          ---------                        Total                           8,437,654          7,990,738COST OF SALES                                           4,628,403          4,277,874                                                        ---------          ---------GROSS PROFIT                                            3,809,251          3,712,864OPERATING EXPENSES:                        Research and development        1,121,827          1,076,763                        Sales and marketing             1,251,388          1,388,927                        General and administrative      1,165,413          1,114,534                                                        ---------          ---------                        Total                           3,538,628          3,580,224                                                        ---------          ---------OPERATING INCOME                                          270,623            132,640OTHER INCOME (EXPENSE):                        Interest income                    25,624              6,824                        Interest expense                  (61,650 )          (60,705 )                                                    --- --------- ---      --------- ---                        Total                             (36,026 )          (53,881 )                                                    --- --------- ---      --------- ---NET INCOME BEFORE PROVISION FOR TAXES                     234,597             78,759(PROVISION FOR) FEDERAL AND STATE INCOME TAXES            (17,433 )          (64,156 )                                                    --- --------- ---      --------- ---NET INCOME                                            $   217,164        $    14,603                                                    === =========          =========NET INCOME PER SHARE, BASIC                           $      0.09        $      0.01                                                    === =========          =========NET INCOME PER SHARE, DILUTED                         $      0.09        $      0.01                                                    === =========          =========WEIGHTED AVERAGE SHARES, BASIC                          2,454,116          2,454,116                                                        =========          =========WEIGHTED AVERAGE SHARES, DILUTED                        2,512,445          2,518,188                                                        =========          =========
LIFELOC TECHNOLOGIES, INC.                                                       Statements of Cash Flows                                                                                                       Years Ended December 31,                                                                                                --------------------------------------CASH FLOWS FROM OPERATING ACTIVITIES:                                                                2018               2017                                                                                                --------------     ---------------                Net income                                                                        $   217,164        $     14,603                Adjustments to reconcile net income to net cash                 provided from (used in) operating activities-                   Depreciation and amortization                                                      416,896             288,017                   Provision for doubtful accounts, net change                                         (5,000 )                 -                   Provision for inventory obsolescence, net change                                    60,000              27,500                   Deferred taxes, net change                                                         (13,338 )            43,196                   Reserve for warranty expense, net change                                                 -                   -                   Stock based compensation expense related to                     stock options                                                                     17,469              22,857                Changes in operating assets and liabilities-                   Accounts receivable                                                                (76,810 )           (97,929 )                   Inventories                                                                       (175,504 )          (366,994 )                   Income taxes receivable                                                             30,772              (6,728 )                   Prepaid expenses and other                                                         (13,351 )            30,268                   Deposits and other                                                                 118,585            (160,046 )                   Accounts payable                                                                    46,687              12,506                   Customer deposits                                                                  (29,498 )            (2,848 )                   Accrued expenses                                                                   (13,378 )            24,457                   Deferred revenue                                                                   (10,390 )           (10,128 )                                                                                                    --------- ---      ---------- ---                                                       Net cash provided from (used in)                                                        operating activities                          570,304            (181,269 )CASH FLOWS FROM INVESTING ACTIVITIES:                Purchases of property and equipment                                                  (402,147 )           (11,846 )                Cash paid for equipment and software acquired                                            in asset acquisition                                            -            (748,198 )                Cash paid for patents and patent applications acquired                                            in asset acquisition                                            -            (100,000 )                Patent filing expense                                                                  (6,750 )           (17,217 )                                                                                                    --------- ---      ---------- ---                                                       Net cash (used in) investing activities       (408,897 )          (877,261 )CASH FLOWS FROM FINANCING ACTIVITIES:                Principal payments made on term loan                                                  (42,535 )           (44,079 )                                                                                                    --------- ---      ---------- ---                                                       Net cash (used in) financing                                                        activities                                    (42,535 )           (44,079 )                                                                                                    --------- ---      ---------- ---NET INCREASE (DECREASE) IN CASH                                                                       118,872          (1,102,609 )CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                                      2,669,455           3,772,064                                                                                                    ---------          ----------CASH AND CASH EQUIVALENTS, END OF PERIOD                                                          $ 2,788,327        $  2,669,455                                                                                                    =========          ==========SUPPLEMENTAL INFORMATION:                Cash paid for interest                                                            $    58,847        $     65,348                                                                                                    =========          ==========                Cash paid for income tax                                                          $         -        $     40,096                                                                                                    =========          ==========

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SOURCE: Lifeloc Technologies, Inc.

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