LifeLoc Technologies Inc (LCTC)

[Energy Manager]

Dicamillo, in addition to the recently discussed items over the weekend, there are two more very interesting things I gathered from the comprehensive report.

1. In regards to the company's stock option plan, options will become fully vested for the CEO if they bring a successful marijuana breathalyzer to market by the end of this year. The interesting part is the statement about the cost of these options...

"We believe it is probable that one of the performance targets will be achieved in 2019, although there is no assurance of that. Assuming one of the performance targets will be met in 2019, there will be no further charges or credits after 2019."

They seem pretty confident using the word "probable."

2. They are terminating the lease of an existing tenant that rents space in the building they own. They need more space for expansion of their own operations do to the growth of Lifelock...

"Due to a need for the space for our own use, we agreed to release one of our tenants from their lease expiring in July 2020. Rental income in 2019 will be reduced by $25,550, and in 2020 it will be reduced by $17,990."

By the way, I see your state is getting very close to legalizing marijuana. It sounds as if it's just a matter of agreeing on a feasible tax rate. If passed, you truly will be the "Garden State..."