Highlights from the Lifeloc Annual Report:
We upgraded our base breathalyzer platform in 2018, and we remain committed to combining it with the SpinDx technology. Our goal is to use this combination to result in a THC breathalyzer.
We completed upgrading our base breathalyzer product in Q4 of 2018, and are nearing completion of work in improving the manufacturability of R.A.D.A.R.® devices, which we expect to launch in the first half of 2019.
Our acquisition strategy involves purchasing companies, development resources and assets that are aligned with our areas of interest and that can further aid in our entering additional markets. We expect to actively research and engage in the acquisition of resources that can expedite our entrance into new markets or strengthen our position in existing ones.
Accordingly, we expect to continue to invest in research and development. We spent $1,121,827 and $1,076,763 during 2018 and 2017, respectively, on research and development, and on sustaining engineering. The amount spent in 2018 was higher than the amount spent in 2017 due primarily to upgrading the R.A.D.A.R.® assets and our base product, as well as the SpinDx™ technology. We expect to increase our emphasis on new product development efforts for existing and new markets.
As of December 31, 2018, we had 67 shareholders of record. (We lost about 10 shareholders since last reported)
We believe the installed base of our breathalyzers will increase as the inherent risks associated with drinking while driving or while working in safety sensitive jobs become more widely acknowledged and as our network of distributors and our direct sales force grows. We believe that increased marketing efforts, the introduction of new products and the expansion of our sales network may provide the basis for increased sales and continuing profitable operations.
We expect to increase sales in the U.S. and worldwide as our network of direct customers and distributors grows and becomes more proficient and expands the number of new accounts. Our growth efforts have focused on expanding our global reach and broadening our product offering in alcohol and drug detection.
We expect to increase our research and development expenses to support refinements to our products, and the development of additional new products.
Our product sales for the year ended December 31, 2018 were $8,104,003, an increase of 6% from $7,629,474 for the same period a year ago.
We believe increased sales efforts, along with the re-launch of the R.A.D.A.R.® Mobile Devices, may result in improved revenues in 2019 and beyond.
Going forward, we intend to focus our development efforts on products we believe offer the best prospects to increase our intermediate and near-term revenues, with particular emphasis on completing SpinDx™.
Our 2019 operating plan is focused on growing sales, increasing gross profits, and increasing research and development efforts on new products for long-term growth.
If the product known as SpinDx™, including the marijuana breathalyzer which incorporates SpinDx™ technology, has been completed and submitted to regulatory authorities for review by or before December 31, 2019, all of the 50,000 options will vest in full, whether or not the sales and earnings requirements have been met. Each of the amendments to the original option agreement is deemed a new option.
We believe it is probable that one of the performance targets will be achieved in 2019.
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.
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