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Lifeloc Technologies, Inc. (OTC:LCTC), a global leader in the development and manufacturing of breath alcohol and drug testing devices, has announced financial results for the first quarter ended March 31, 2019, as well as the results for the 2019 annual shareholder meeting.

First Quarter Financial Highlights

We posted quarterly net revenue of$2.07 millionresulting in quarterly net income after taxes of$31 thousand, or$0.01per diluted share. These results compare to net revenue of$2.20 millionand quarterly net income of$11 thousand, or$0.00per diluted share in the first quarter of 2018. Revenue for the quarter declined 6% versus the first quarter last year. This decline appears to have coincided with the federal government shutdown which adversely affected buying in regulated testing areas as well as local law enforcement purchases. Even though revenue declined, earnings improved through lower operating expenses. Gross margin on total revenue remained unchanged in the current quarter 45% versus 45% in the same quarter last year.

Shareholder Meeting

Lifeloc conducted its annual shareholder meeting May 6th at the company’s headquarters in Wheat Ridge, CO. The proposed slate of directors was elected with over 99% of the votes cast and the appointment of auditors was ratified, also by more than 99% of the votes cast. Following the business portion of the meeting, a brief company status report was presented, and these slides are available on our website, www.lifeloc.com/shareholderMeeting.

Product Pipeline

Our vision is that Lifeloc becomes the world’s leading company in real-time alcohol and drug abuse detection and monitoring. We have been investing aggressively in product development to achieve this vision, focusing on a few major product developments that are expected to have a significant impact on our performance. We are now at the point where we will start to reap the benefit of these investments.

The premier breathalyzer model of our new platform, the Lifeloc LX9, went into production during the quarter. The LX9 satisfies many market needs for performance and connectivity and combines these features in one easy to use package. To support the new platform, our patented Easycal(R) calibration station has been upgraded to the Easycal G2 second generation calibration station. This model is compatible with our existing installed base of professional breathalyzers as well as the new platform. The G2 model includes RFID (Radio Frequency Identification) reading of calibration standard data, which further automates the calibration process.

Likewise, the new model of the R.A.D.A.R.(R) (Real-time Alcohol Detection and Reporting) device is moving forward. Prototype devices are in testing, with production expected later this year. R.A.D.A.R. devices are alcohol monitoring units which can be used as a tool to supervise offenders as an alternative to incarceration. Onboard biometrics automatically verify the identity of the test subject. R.A.D.A.R. devices are a critical step in moving our business towards a recurring revenue model.

Our marijuana breathalyzer remains a key target for product development. The continued broader legalization of marijuana only increases the need for a rapid, quantitative roadside test to identify drivers under the influence of marijuana. The completion of other projects will allow resources to be redirected towards accelerating this effort. The ability of our technology to detect delta-9-THC down to a concentration of 5 nanograms per milliliter and to collect a testable sample from a vapor stream has already been demonstrated in our laboratories. Detection of THC is accomplished through the SpinDx technology, licensed exclusively by Lifeloc Technologies for drugs of abuse from Sandia National Laboratory. More work is needed to convert this technology into a simple-to-operate device suitable for roadside testing.

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/investor.

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.

Easycal(R) and R.A.D.A.R.(R) are registered trademarks of Lifeloc Technologies, Inc.

SpinDx(TM) is a trademark of Sandia Corporation.

LIFELOC TECHNOLOGIES, INC.                                          Condensed Balance Sheets                                                   ASSETS-----------------------------------------------------------------------------------------------------                                                                        March 31,                                                                          2019                December 31,CURRENT ASSETS:                                                        (Unaudited)                2018                                                                    -----------------      ------------------Cash                                                                    $  2,799,153            $  2,788,327Accounts receivable, net                                                     548,008                 675,136Inventories, net                                                           1,673,740               1,290,607Income taxes receivable                                                       35,522                  90,629Prepaid expenses and other                                                   135,144                  35,155                                                                          ----------              ----------      Total current assets                                                 5,191,567               4,879,854PROPERTY AND EQUIPMENT, at cost:Land                                                                         317,932                 317,932Building                                                                   1,941,414               1,928,795Real-time Alcohol Detection And Recognition equipment and software           569,448                 569,448Production equipment and software                                            911,454                 800,569Training courses                                                             432,375                 432,375Office equipment and software                                                246,946                 241,836Sales and marketing equipment                                                219,797                 219,797Research and development equipment and software                              159,810                 159,810Less accumulated depreciation                                             (1,748,775 )            (1,649,203 )                                                                    ----- ----------       ------ ----------     Total property and equipment, net                                     3,050,401               3,021,359OTHER ASSETS:Patents, net                                                                 154,943                 158,147Deposits and other                                                            53,967                 140,452Deferred taxes                                                               134,477                  79,869                                                                          ----------              ----------     Total other assets                                                      343,387                 378,468                                                                          ----------              ----------     Total assets                                                       $  8,585,355            $  8,279,681                                                                    ===== ==========       ====== ==========                                    LIABILITIES AND STOCKHOLDERS' EQUITY-----------------------------------------------------------------------------------------------------CURRENT LIABILITIES:Accounts payable                                                        $    654,623            $    343,783Term loan payable, current portion                                            43,498                  43,207Customer deposits                                                             21,513                  19,265Accrued expenses                                                             216,658                 250,912Deferred revenue, current portion                                             49,047                  44,218Reserve for warranty expense                                                  40,000                  40,000                                                                          ----------              ----------      Total current liabilities                                            1,025,339                 741,385TERM LOAN PAYABLE, net of current portion anddebt issuance costs                                                        1,358,226               1,369,347DEFERRED REVENUE, net of current portion                                       7,927                   8,212COMMITMENTS AND CONTINGENCIESSTOCKHOLDERS' EQUITY:Common stock, no par value; 50,000,000 shares  authorized, 2,454,116 shares outstanding                                 4,599,808               4,597,646Retained earnings                                                          1,594,055               1,563,091                                                                          ----------              ----------      Total stockholders' equity                                           6,193,863               6,160,737                                                                          ----------              ----------      Total liabilities and stockholders' equity                        $  8,585,355            $  8,279,681                                                                    ===== ==========       ====== ==========
LIFELOC TECHNOLOGIES, INC.                           Condensed Statements of Income (Unaudited)                                                              Three Months Ended September 30,                                                             -----------------------------------REVENUES:                                                          2018               2017                                                             ----------------   ----------------Product sales                                                    $ 1,970,101        $ 2,122,243Royalties                                                             72,838             65,065Rental income                                                         25,822             14,601                                                                   ---------          ---------Total                                                              2,068,761          2,201,909COST OF SALES                                                      1,136,559          1,201,746                                                                   ---------          ---------GROSS PROFIT                                                         932,202          1,000,163OPERATING EXPENSES:Research and development                                             245,799            338,326Sales and marketing                                                  316,383            335,401General and administrative                                           325,175            297,333                                                                   ---------          ---------Total                                                                887,357            971,060                                                                   ---------          ---------OPERATING INCOME                                                      44,845             29,103OTHER INCOME (EXPENSE):Interest income                                                        9,422              2,184Interest expense                                                     (14,423 )          (14,714 )                                                                   ---------          ---------Total                                                                 (5,001 )          (12,530 )                                                                   ---------          ---------NET INCOME (LOSS) BEFORE PROVISION FOR TAXES                          39,844             16,573(PROVISION FOR) BENEFIT FROM FEDERAL AND STATE INCOME TAXES           (8,880 )           (5,373 )                                                                   ---------          ---------NET INCOME                                                       $    30,964        $    11,200                                                             ===== =========    ===== =========NET INCOME PER SHARE, BASIC                                      $      0.01        $         -                                                             ===== =========    ===== =========NET INCOME PER SHARE, DILUTED                                    $      0.01        $         -                                                             ===== =========    ===== =========WEIGHTED AVERAGE SHARES, BASIC                                     2,454,116          2,454,116                                                                   =========          =========WEIGHTED AVERAGE SHARES, DILUTED                                   2,504,116          2,510,699                                                                   =========          =========
Lifeloc Technologies, Inc.                     Condensed Statement of Stockholders' Equity (Unaudited)                                          Common Stock                Retained                                   ---------------------                                     Shares         Amount                        Total                                   ---------    --------------                   -----BALANCES, DECEMBER 31, 2018        2,454,116      $ 4,597,646    $   1,563,091       $ 6,160,737Net income                                 -                -           30,964            30,964Stock based compensation expense  related to stock options                 -            2,162                -             2,162                                   ---------        ---------        ---------         ---------BALANCES, MARCH 31, 2019           2,454,116      $ 4,599,808    $   1,594,055       $ 6,193,863                                   =========        =========        =========         =========                                          Common Stock                Retained                                   ---------------------                                     Shares         Amount                        Total                                   ---------    --------------                   -----BALANCES, DECEMBER 31, 2017        2,454,116      $ 4,580,177    $   1,345,927       $ 5,926,104Net income                                 -                -           11,200            11,200Stock based compensation expense  related to stock options                 -            5,714                -             5,714                                   ---------        ---------        ---------         ---------BALANCES, MARCH 31, 2018           2,454,116      $ 4,585,891    $   1,357,127       $ 5,943,018                                   =========        =========        =========         =========
LIFELOC TECHNOLOGIES, INC.                            Condensed Statements of Cash Flows (Unaudited)                                                                      Three Months Ended March 31,                                                                   -----------------------------------CASH FLOWS FROM OPERATING ACTIVITIES:                                    2019               2018Net income                                                             $    30,964        $    11,200Adjustments to reconcile net income to net cash provided from (used in) operating activities-   Depreciation and amortization                                           103,047            107,878   Provision for doubtful accounts, net change                                   -              1,500   Provision for inventory obsolescence, net change                              -             27,500   Deferred taxes, net change                                              (54,608 )              935   Reserve for warranty expense, net change                                      -              1,500   Stock based compensation expense related to     stock options                                                           2,162              5,714Changes in operating assets and liabilities-   Accounts receivable                                                     127,128           (165,780 )   Inventories                                                            (383,133 )          (34,908 )   Income taxes receivable                                                  55,107              4,438   Prepaid expenses and other                                              (99,989 )          (82,032 )   Deposits and other                                                       86.485            256,853   Accounts payable                                                        310,840            242,673   Customer deposits                                                         2,248             (4,144 )   Accrued expenses                                                        (34,254 )           36,406   Deferred revenue                                                          4,544             (6,648 )                                                                         ---------          ---------           Net cash provided from (used in) operating activities           150,541            403,085CASH FLOWS FROM INVESTING ACTIVITIES:Purchases of property and equipment                                       (128,614 )         (355,512 )                                                                         ---------          ---------           Net cash (used in) investing activities                        (128,614 )         (355,512 )CASH FLOWS FROM FINANCING ACTIVITIES:Principal payments made on term loan                                       (11,101 )          (10,673 )                                                                         ---------          ---------           Net cash (used in) financing activities                         (11,101 )          (10,673 )                                                                         ---------          ---------NET (DECREASE) IN CASH                                                      10,826             36,900CASH, BEGINNING OF PERIOD                                                2,788,327          2,669,455                                                                         ---------          ---------CASH, END OF PERIOD                                                      2,799,153        $ 2,706,355                                                                         =========    ===== =========SUPPLEMENTAL INFORMATION:Cash paid for interest                                                 $    14,152        $    14,579                                                                   ===== =========    ===== =========Cash paid for income tax                                               $         -        $         -                                                                   ===== =========    ===== =========

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SOURCE: Lifeloc Technologies

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