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Sunday, 02/05/2017 2:51:03 PM

Sunday, February 05, 2017 2:51:03 PM

Post# of 92
LCTC - Due Diligence & Lowest float of all MJ related stocks

LCTC - Due Diligence Information:

2,454,116 Shares Outstanding
192,580 shares in float according to my calculations
Total assets $8,028,098
Revenue: $8,830,000
CASH, END OF PERIOD $3,383,541
Market cap - $31.9 Million as of Feb. 4th, 2017
Toxic debt - none, ZERO
Shareholder dilution - none, ZERO

Of the 230 or so total marijuana/cannabis publicly traded companies, LCTC was proven to have the smallest public float (by far), the sixth highest cash position, and second highest in annual revenues.

I also ran a stock screen filter on Equity feed and the results of over 14,000 companies prove that LCTC's float is in the 20 lowest floats of all U.S. based companies that trade on all exchanges!

Marijuana/cannabis names have recently shown they can move 3,000%, 5,000%, 7,500%. etc with a much bigger float and market cap than LCTC.

It would only take $2.5 Million to lock up the entire float at these price levels (192,580 shares in float x current price $13.00)

As marijuana legalization spreads across the country and the world, the need to get rapid and reliable testing methods to law enforcement officers will only increase. Providing this technology is consistent with Lifeloc’s corporate mission to make our roads and workplaces safer.

"Willkomm, the current CEO, said the company will spend much of 2016 perfecting a portable test for THC"

The marijuana breathalyzer has an expected completion date of August 31, 2017 according to the latest annual report.
Thanks in part to a $250,000 grant from the Colorado Office of Economic Development, Lifeloc scientists have come up with a method that can not only detect the presence of Delta 9 THC in a person's exhaled breath, it can also identify the metabolite separately.
"Feasibility of detection has already been demonstrated for very low levels of delta-9-THC, cocaine, and methamphetamine."
The best part about investing in this company is that it doesn't matter which side of the fence you're on, for or against marijuana - both sides see the need for keeping impaired drivers off the road - and impaired workers off the job site. Along with legalization comes accountability.

Lifeloc already has an established market and customer base for the marijuana breathalyzer. To add to this, they have a broad product line of other drug and alcohol testing and training products - something the government wants. They are already profitable, own the building which houses almost 40 employees, and have money in the bank - so no need for dilutive financing.

Other drug screening products offer by Lifeloc:

We offer a full line of drugs of abuse (DOA) testing products including saliva tests, collection cups, test cups, dip cards, adulteration strips, bluing tablets and other testing supplies.

Marijuana and the workplace online drug training course

Cannabis impairment goggles

Drug and alcohol policy guidance

Substance abuse professionals

Drug and alcohol employee awareness course

Lifeloc Technologies and Sandia Corporation also recently Announced a License Agreement:
Lifeloc will acquire the exclusive rights to develop, manufacture and market Sandia’s patented SpinDx™ technology for the detection of drugs of abuse.
"SpinDx can run multiple assays in a minute from a single drop of blood or other bodily fluid, making it a great fit in Lifeloc Technologies’ work in helping to detect drug abuse"

"One of the biggest areas these new laws focus on is impaired driving."

"The need for some sort of testing devices is only getting bigger."

"There's no projections right now for how big the marijuana breathalyzer market will be. But with close to 18,000 U.S. state and local law enforcement agencies as of July 2016, the market is huge."

Keep in mind the new federal provisions mandating additional study on marijuana and driving are part of a $305 billion highway funding bill that President Obama signed on December 4.

Let's be conservative here and say 2% of this highway funding bill will go towards this government review on methods for detecting marijuana-impaired driving and keeping our roads safe. 2% of $305 Billion gives us $6.1 Billion to work with. Let's now say that Lifeloc is able to capture just 2% of this funding amount. We get a figure of $122 million. I can not think of a more well positioned company in the public space that is a better fit for a portion of this funding.

According to research reports, the global market for breath analyzers is also a market expected to grow to over $4.5 billion in the coming years. Lifeloc technologies is only currently capturing less than a ¼ of 1% of this market and they are listed as a key player in the space along with Alcohol Countermeasure Systems (International), Inc., Ekips Technologies, Inc., Dragerwerk AG & Co. KGaA, Intoximeters, Inc., Alcolizer Pty. Ltd. Quest Products, Inc, MPD, Inc., and PAS Systems International.
If LCTC can capture a mere 2 ½ % of this market share, I would expect it to have a market cap of at least $100 million and be trading upwards of $40/share.

With any type of positive news announcement from LCTC on the marijuana breathalyzer or the SpinDX techonology, we should see an absolute explosive move higher. The marijuana breathalyzer and cannabis safety industry is about to go from 0 to a projected $10 Billion market and I have to remind you that there is only so much stock that can go around here. I still think with a float this small and a sector that will be hot for the foreseeable future, we have a good shot at seeing something nutty happen to this stock in the near future.

So if your looking for an extremely low float, quality stock company, that is free of any toxic debt and at a good price level, LCTC could/should be worth an investment.

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