Executive Summary

Q4 2024 revenue was $1.91M (derived from FY $8.538M less 9M $6.628M), with a Q4 net loss of $(0.313)M; fiscal 2024 revenue declined 8% YoY to $8.538M and swung to a $(1.053)M net loss as R&D investment escalated and component inflation pressured margins .
Q4 gross margin compressed to ~36.9% (derived), down from Q3’s 43.7% as FY mix and inflation headwinds outweighed earlier quarterly mix benefits; management expects “more broadly applied price increases to improve margins in 2025” .
SpinDx commercialization timetable moved out: beta now targeted for Q2 2025 and first commercial launch early 2026 (vs. “later in 2025” previously), while LX9 smartphone pairing shipments and L‑series certifications support the core alcohol testing franchise .
Liquidity actions increased runway: $750k debenture closed at 2024 year‑end plus $75k in Q1’25; earlier, a $750k line of credit and a $798k equity raise were completed to fund SpinDx development .
No earnings call transcript or sell‑side consensus were available; focus near‑term is on price actions/margin recovery and meeting SpinDx validation and beta milestones as stock catalysts .

What Went Well and What Went Wrong

What Went Well

Product innovation and certifications: LX9 smartphone pairing shipped, and L‑series devices meet modern standards (e.g., AS 3547:2019), supporting market penetration in law enforcement and workplace markets .
Mix tailwind evidenced earlier in the year: Q3 gross margin improved to 43.7% YoY on sales mix, showing the potential when product mix normalizes .
Clear roadmap for drug testing platform: management emphasized SpinDx progress and commitment to commercialization, prioritizing long‑term value creation over near‑term profitability .

What Went Wrong

Top‑line and margin pressure: 2024 revenue fell 8% YoY to $8.538M, and FY gross margin contracted to 40.4% (from 43.3%) on lower volume and component inflation; Q4 gross margin ~36.9% (derived) reflected these pressures .
Elevated OpEx from record R&D: FY operating expenses rose to $4.854M, driven by SpinDx, contributing to a $(1.408)M operating loss for 2024 .
SpinDx timing push: commercialization moved from “later in 2025” to “early 2026,” increasing execution risk and prolonging the investment phase before revenue contribution .

Financial Results

Quarterly P&L summary (USD)

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($)	$2,387,330	$2,087,326	$1,910,046 (derived from FY–9M)
Gross Profit ($)	$993,596	$911,952	$705,244 (derived from FY–9M)
Gross Margin %	41.6% (calc)	43.7%	36.9% (calc)
Operating Expenses ($)	$1,390,658	$1,120,273	$1,127,851 (derived FY–9M)
Operating Income (Loss) ($)	$(397,062)	$(208,321)	$(422,607) (derived)
Net Income (Loss) ($)	$(297,988)	$(158,327)	$(312,827) (derived)
Diluted EPS ($)	$(0.12)	$(0.06)	N/A (not disclosed for Q4)
Weighted Avg Shares (Diluted)	2,454,116	2,611,616	N/A (not disclosed for Q4)

Note: Q4 figures for revenue, gross profit, gross margin, OpEx, operating loss, and net loss are derived from FY 2024 less 9M 2024 results .

Annual comparison (USD)

Metric	FY 2023	FY 2024
Revenue ($)	$9,329,566	$8,538,145
Gross Margin %	43.3%	40.4%
Net Income (Loss) ($)	$205,614	$(1,052,948)
Diluted EPS ($)	$0.08	$(0.41)

Cash & Liquidity

Metric	Jun 30, 2024	Sep 30, 2024	Dec 31, 2024
Cash & Equivalents ($)	$504,642	$841,621	$1,243,746
Term Loan Payable – total ($)	$1,197,262 (52,386 + 1,144,876)	$1,184,855 (52,789 + 1,132,066)	$1,172,347 (53,195 + 1,119,152)
Subordinated Debenture ($)	—	—	$630,000
Total Liabilities ($)	$2,232,281	$1,924,420	$2,498,892

Operating KPIs

KPI	Q2 2024	Q3 2024	Q4 2024
R&D Expense ($)	$662,276	$521,107	$503,887 (derived FY–9M)
Gross Margin %	41.6% (calc)	43.7%	36.9% (calc)

Segment breakdown: Not applicable; the company does not report segments in these releases .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Gross margin outlook	CY2025	Not previously quantified	“Expect more broadly applied price increases to improve margins in 2025.”	Qualitative positive
SpinDx beta testing	Q4 2024 view	“Plan to start beta testing … later this quarter (Q4’24).”	“Plan to start beta testing … in Q2 2025.”	Delayed
SpinDx first commercial launch	Q4 2024 view	“Projected to occur later in 2025.”	“Projected to occur in early 2026.”	Delayed
Capital/financing	2H 2024–Q1 2025	$750k LOC; $798k equity raise completed (Q3)	$750k debenture closed at 2024 YE; +$75k in Q1’25	Additional funding secured

No quantitative revenue, EPS, margin, tax, or OpEx guidance was provided in the Q4 materials .

Earnings Call Themes & Trends

Note: No Q4 earnings call transcript was available in the document set; themes below reflect disclosures across Q2, Q3, and Q4 press releases .

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
SpinDx commercialization	Beta “later in 2024”; launch in 2025; high R&D spend to “push … across the finish line.”	Beta “later this quarter (Q4’24)”; launch “later in 2025.”	Beta in Q2 2025; launch early 2026; continued high R&D spend.	Timeline extended; continued focus
Pricing and margins	Q2 GM 41.6%; inflation driving cost increases.	Q3 GM 43.7% on mix; 9M GM 41.4% vs 43.4% prior year; inflation still a headwind.	FY GM 40.4% vs 43.3% in 2023; company expects 2025 price actions to help.	Pricing actions to offset inflation
Core product momentum	LX9 smartphone pairing shipped; L‑series certifications; Easycal supports share.	Continued emphasis on L‑series and Easycal positioning.	Reinforced L‑series/FC‑series positioning; global standards certifications.	Steady execution
Liquidity	Cash down; preparing financing actions.	$750k LOC; $798k equity raise.	$750k debenture YE’24; +$75k Q1’25.	Bolstering runway

Management Commentary

“Lifeloc has made great progress in 2024… choosing long term value creation over short term profitability to fund this opportunity. We anticipate continued high research and development expenses in this final push toward commercialization.” — Dr. Wayne Willkomm, President & CEO .
“We are excited to be able to offer and ship LX9 units with smart phone pairing… This demonstrates again our commitment to innovation.” — Dr. Wayne Willkomm .
“We believe we are getting close to validating and launching our device into rapid drug testing… With the rising demand for saliva drug testing, the initial release of SpinDx to the market becomes more urgent and valuable.” — Dr. Wayne Willkomm .

Q&A Highlights

No Q4 earnings call transcript was available; no Q&A disclosures were provided in the filings and press materials reviewed .

Estimates Context

S&P Global consensus: No Wall Street consensus for EPS or revenue was available for Q4 2024 or FY 2024; therefore, no beat/miss analysis versus estimates is possible. Values retrieved from S&P Global.*
Actuals for context: FY 2024 revenue $8.538M; Q4 2024 revenue $1.910M (derived from filings) .

Key Takeaways for Investors

Q4 softness and FY margin compression underscore inflationary cost pressure; management plans broader price increases in 2025 to restore margin trajectory .
SpinDx commercialization is the primary medium‑term catalyst but has slipped to a Q2’25 beta and early‑2026 launch, extending the investment phase and execution risk window .
Core alcohol testing franchise remains durable: LX9 smartphone pairing shipped, L‑series certifications achieved, and Easycal ecosystem supports customer stickiness and share gains .
R&D intensity remains high (FY R&D $2.243M), implying near‑term profitability pressure but aiming at a larger TAM with rapid drug testing across saliva/breath use cases .
Liquidity improved with a $750k debenture at year‑end and an additional $75k in Q1’25, supplementing the earlier $750k LOC and $798k equity raise to fund SpinDx milestones .
Near‑term trading setup hinges on validation/beta milestones and evidence of pricing traction in 2025 gross margin; lack of consensus coverage can amplify volatility on company‑specific news flow .
No non‑GAAP adjustments highlighted; reported figures are GAAP, aiding transparency for trend tracking across quarters .

Lifeloc Technologies, Inc (LCTC)·Q4 2024 Earnings Summary