# EDGAR Filing Document

**Accession Number:** 0001493137
**File Stem:** 0001079973-25-001693
**Filing Date:** 2025-11
**Character Count:** 23831
**Document Hash:** 9c0d092ac0de7d0c9f1252b43c306223
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001079973-25-001693.hdr.sgml**: 20251112

**ACCESSION NUMBER**: 0001079973-25-001693

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20251112

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251112

**DATE AS OF CHANGE**: 20251112

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Lifeloc Technologies, Inc
- **CENTRAL INDEX KEY:** 0001493137
- **STANDARD INDUSTRIAL CLASSIFICATION:** LABORATORY ANALYTICAL INSTRUMENTS [3826]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 841053680
- **STATE OF INCORPORATION:** CO
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-54319
- **FILM NUMBER:** 251474289

**BUSINESS ADDRESS:**
- **STREET 1:** 12441 WEST 49TH AVE UNIT #4
- **CITY:** WHEAT RIDGE
- **STATE:** CO
- **ZIP:** 80033
- **BUSINESS PHONE:** 303-431-9500

**MAIL ADDRESS:**
- **STREET 1:** 12441 WEST 49TH AVE UNIT #4
- **CITY:** WHEAT RIDGE
- **STATE:** CO
- **ZIP:** 80033

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Lifeloc Technologies Inc
- **DATE OF NAME CHANGE:** 20100601

?xml version='1.0' encoding='ASCII'? Current Report

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549** 

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): November 12, 2025**

**LIFELOC TECHNOLOGIES, INC.**

**(Exact name of registrant as specified in its charter)**

---

| | | |
|:---|:---|:---|
| **Colorado** | **000-54319** | **84-1053680** |
| **(State or other jurisdiction of incorporation)** | **(Commission File Number)** | **(IRS Employer Identification Number)** |

---

---

| | |
|:---|:---|
| **12441 West 49th Ave., Unit 4**<br>**Wheat Ridge, CO** | **80033** |
| **(Address of Principal Executive Offices)** | **(Zip Code)** |

---

**(303) 431-9500**

**(Registrant's telephone number, including area code)** 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock | LCTC | N/A |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

---

| | |
|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition.** |

---

On November 12, 2025, Lifeloc Technologies, Inc. (the "Company") issued a press release announcing its operating results for the period ended September 30, 2025. This press release was made available on the Company's website as of November 12, 2025. A copy of the press release is furnished herewith as Exhibit 99.1.

The information in this Form 8-K, including the exhibit attached hereto, is being "furnished" and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any Company filing under the Securities Act of 1933, as amended, unless expressly set forth by specific reference in such filing that such information is incorporated by reference therein.

---

| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(d) Exhibits.*

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | [Press Release, dated November 12, 2025, issued by the Company](ex99x1.htm) |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

---

**SIGNATURES**

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| Date: November 12, 2025 | **LIFELOC TECHNOLOGIES, INC.** | **LIFELOC TECHNOLOGIES, INC.** |
|  | By: | /s/ Vern D. Kornelsen |
|  |  | Chief Financial Officer and Secretary |

---

## Exhibit 99.1

Exhibit 99.1

**Lifeloc Reports Third Quarter 2025 Results**

WHEAT RIDGE, Colo., November 12, 2025 -- 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 quarter ended September 30, 2025.

**Third Quarter Financial Highlights**

Lifeloc posted quarterly net revenue of $2.257 million in the third quarter of 2025, resulting in a quarterly net loss of $(263) thousand, or $(0.10) per diluted share. These results compare to net revenue of $2.087 million and quarterly net loss of $(158) thousand, or $(0.06) per diluted share in the third quarter of 2024. Revenue for the quarter increased 8% versus the third quarter last year. Nine-month 2025 net revenues of $6.754 million and a net loss of $(950) thousand, or $(0.35) per diluted share, compared to net revenue of $6.628 million and a net loss of $(740) thousand, or $(0.30) per diluted share, for the same nine months of 2024. Total gross margin in the third quarter decreased to 40.2% versus 43.7% for the same quarter last year. For the first nine months of 2025 gross margin was 40.6% versus 41.4% for the same period last year.

The margin decline for 2025 was a result of general cost inflation and tariffs which the company is working to address through pricing. The losses for the quarter and year to date were caused primarily by the high research and development costs with the push to commercialize our SpinDetect™ centrifugal drug analyzer.

We believe our core alcohol detection product line-up continues to be strong. The L-series LX9 and LT7 units have features and performance that have driven market penetration by meeting previously unaddressable market needs, such as smart phone pairing, wider temperature use ranges and fast customization that incorporates local languages. Certified to meet the requirements of most modern registration standards, such as SAI's (Standards Australia International) latest AS 3547:2019 standards for Breath Alcohol Detectors, our FC-series devices remain popular with many law enforcement and international organizations. Our Easycal® automated calibration station, the only automated calibration available for portable breath alcohol testers, builds valuable protection around our brand and contributes to market share gains by the workplace Phoenix® 6.0 BT and EV 30 devices.

We see our greatest opportunity at the intersection of a growing global demand for rapid drug-of-abuse detection and Lifeloc's established expertise in creating rugged, intuitive testing equipment. Our current R&D focus is on advancing our SpinDetect™ centrifugal drug-analyzer platform—also known as our "lab-on-a-disk" technology—to deliver a family of portable devices capable of providing rapid, quantitative results for multiple drug classes.

In laboratory testing, the SpinDx system has successfully detected delta-9-THC, cocaine, fentanyl, amphetamine, methamphetamine, morphine, MDMA, and benzodiazepines. These results have been validated against gold-standard liquid chromatography–mass spectrometry (LCMS) testing of human samples, confirming real-world performance at detection limits of approximately 10 ng/ml. Our current development efforts are aimed at improving assay robustness and optimizing disk design so that the entire analysis can be completed within a single disposable cartridge.

We are initiating beta testing of the SpinDetect™ oral-fluid analyzer focused on delta-9-THC detection using a prototype reader, with final component optimization underway under a signed beta-testing agreement. The initial commercial product is expected to measure delta-9-THC—the primary psychoactive compound in cannabis—followed by a multi-drug panel release. We anticipate a commercial launch in 2026, with subsequent expansion into additional drug panels and sample types, including blood and breath. Development of a combined LX9 breathalyzer + THC SpinDx unit will follow as a next-generation roadside marijuana breath testing system. Continued progress toward these milestones will depend on securing additional financing.

"Prototype SpinDetect™ analyzers are now traveling to trade shows for customer demonstrations," said Dr. Wayne Willkomm, Lifeloc's President and CEO. "We are encouraged by early engagement and interest as we move closer to market introduction. Rapid oral-fluid drug testing represents our most immediate and scalable growth opportunity, and we believe SpinDetect™ can meet this need effectively. Beyond oral-fluid applications, this platform offers a powerful foundation for testing other sample types and analytes."

As SpinDetect™ advances toward commercialization, we are also exploring broader applications of our microfluidic technology. The same "lab-on-a-disk" system used to detect drugs of abuse can be adapted to identify other biological or chemical targets—such as food or water contaminants, neonatal or veterinary drug residues, or environmental toxins. This versatility positions Lifeloc to extend the platform into adjacent markets in public health, food safety, and environmental testing. While additional research, licensing, and regulatory clearances will be required, the scalability and analytical precision of the SpinDetect™ platform provide a solid foundation for sustained growth across multiple high-impact sectors.

Lifeloc Technologies shares began trading on the OTCID July 1, 2025 in alignment with the evolving structure of the OTC Markets. OTCID replaced the OTC Pink Current Market for fully reporting companies. The new OTCID standards may create greater market confidence than the OTC Pink and allow a more transparent and liquid marketplace for our shareholders.

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**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, performance, expectations about new and existing products, market demand, economic conditions, 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.

Phoenix® and Easycal® are registered trademarks of Lifeloc Technologies, Inc.

SpinDetect™ is a trademark of Lifeloc Technologies, Inc.

SpinDx™ is a trademark of Sandia Corporation.

Amy Evans <br> Lifeloc Technologies, Inc. <br> http://www.lifeloc.com <br> (303) 431-9500

**LIFELOC TECHNOLOGIES, INC.**

**Condensed Balance Sheets (Unaudited)**

---

| | | |
|:---|:---|:---|
| <u>ASSETS</u> |  |  |
|  | **September 30, 2025** | **December 31, 2024** |
| CURRENT ASSETS: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $685097 | $1243746 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 864456 | 732541 |
| &nbsp;&nbsp;&nbsp;Inventories, net | 2862158 | 2996397 |
| &nbsp;&nbsp;&nbsp;Federal and state income taxes receivable | 55831 | 80560 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other | 142628 | 40045 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 4610170 | 5093289 |
| PROPERTY, PLANT AND EQUIPMENT: |  |  |
| &nbsp;&nbsp;&nbsp;Land | 317932 | 317932 |
| &nbsp;&nbsp;&nbsp;Building | 1928795 | 1928795 |
| &nbsp;&nbsp;&nbsp;Real-time Alcohol Detection And Recognition equipment and software | 569448 | 569448 |
| &nbsp;&nbsp;&nbsp;Production equipment, software and space modifications | 1366539 | 1349839 |
| &nbsp;&nbsp;&nbsp;Training courses | 432375 | 432375 |
| &nbsp;&nbsp;&nbsp;Office equipment, software and space modifications | 254333 | 254333 |
| &nbsp;&nbsp;&nbsp;Sales and marketing equipment and space modifications | 231818 | 226356 |
| &nbsp;&nbsp;&nbsp;Research and development equipment, software and space modifications | 805012 | 787664 |
| &nbsp;&nbsp;&nbsp;Research and development equipment, software and space modifications not in service | 438653 | 128007 |
| &nbsp;&nbsp;&nbsp;Less accumulated depreciation | (3932832) | (3613452) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total property and equipment, net | 2412073 | 2381297 |
| OTHER ASSETS: |  |  |
| &nbsp;&nbsp;&nbsp;Patents, net | 73008 | 78723 |
| &nbsp;&nbsp;&nbsp;Deposits and other | 46820 | 12261 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | 1159199 | 1159199 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other assets | 1279027 | 1250183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $8301270 | $8724769 |
| <u>LIABILITIES AND STOCKHOLDERS' EQUITY</u> |  |  |
| CURRENT LIABILITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $384969 | $251627 |
| &nbsp;&nbsp;&nbsp;Term loan payable, current portion | 54431 | 53195 |
| &nbsp;&nbsp;&nbsp;Subordinated debentures payable, current portion | 19084 |  |
| &nbsp;&nbsp;&nbsp;Customer and tenant deposits | 17929 | 43814 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 328734 | 293981 |
| &nbsp;&nbsp;&nbsp;Deferred revenue, current portion | 56214 | 54458 |
| &nbsp;&nbsp;&nbsp;Product warranty reserve | 46500 | 46500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 907861 | 743575 |
| TERM LOAN PAYABLE, net of current portion and<br> debt issuance costs | <br> 1072297 | <br> 1119152 |
| SUBORDINATED DEBENTURES PAYABLE, net of current portion and<br> debt issuance costs | <br> 690116 | <br> 630000 |
| DEFERRED REVENUE, net of current portion | 6583 | 6165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 2676857 | 2498892 |
| COMMITMENTS AND CONTINGENCIES (Note 6) | **—** | **—** |
| STOCKHOLDERS' EQUITY: |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, no par value; 50,000,000 shares authorized, 2,752,616<br> shares outstanding (2,664,116 outstanding at December 31, 2024) | <br> 5934314 | <br> 5586014 |
| &nbsp;&nbsp;&nbsp;Retained earnings (accumulated deficit) | (309901) | 639863 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' equity | 5624413 | 6225877 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and stockholders' equity | $8301270 | $8724769 |

---

**LIFELOC TECHNOLOGIES, INC.**

**Condensed Statements of Income (Loss) (Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** |
| REVENUES: | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;Product sales | $2241331 | $2075994 |
| &nbsp;&nbsp;&nbsp;Royalties | 16117 | 3016 |
| &nbsp;&nbsp;&nbsp;Rental income |  | 8316 |
| &nbsp;&nbsp;&nbsp;Total | 2257448 | 2087326 |
| COST OF SALES | 1350755 | 1175374 |
| GROSS PROFIT | 906693 | 911952 |
| OPERATING EXPENSES: |  |  |
| &nbsp;&nbsp;&nbsp;Research, development, and sustaining engineering | 458747 | 521107 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 341567 | 329716 |
| &nbsp;&nbsp;&nbsp;General and administrative | 340705 | 269450 |
| &nbsp;&nbsp;&nbsp;Total | 1141019 | 1120273 |
| OPERATING (LOSS) | (234326) | (208321) |
| OTHER INCOME (EXPENSE): |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 7840 | 9525 |
| &nbsp;&nbsp;&nbsp;Interest expense | (36953) | (10019) |
| &nbsp;&nbsp;&nbsp;Total | (29113) | (494) |
| NET (LOSS) BEFORE PROVISION FOR TAXES | (263439) | (208815) |
| BENEFIT FROM FEDERAL AND STATE INCOME TAXES |  | 50488 |
| NET (LOSS) | $(263439) | $(158327) |
| NET (LOSS) PER SHARE, BASIC | $(0.10) | $(0.06) |
| NET (LOSS) PER SHARE, DILUTED | $(0.10) | $(0.06) |
| WEIGHTED AVERAGE SHARES, BASIC | 2752616 | 2611616 |
| WEIGHTED AVERAGE SHARES, DILUTED | 2752616 | 2611616 |

---

**LIFELOC TECHNOLOGIES, INC.**

**Condensed Statements of Income (Loss) (Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| REVENUES: | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;Product sales | $6695638 | $6580861 |
| &nbsp;&nbsp;&nbsp;Royalties | 41588 | 22776 |
| &nbsp;&nbsp;&nbsp;Rental income | 16632 | 24462 |
| &nbsp;&nbsp;&nbsp;Total | 6753858 | 6628099 |
| COST OF SALES | 4014000 | 3887244 |
| GROSS PROFIT | 2739858 | 2740855 |
| OPERATING EXPENSES: |  |  |
| &nbsp;&nbsp;&nbsp;Research and development | 1551689 | 1738982 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 1015651 | 1040099 |
| &nbsp;&nbsp;&nbsp;General and administrative | 1065657 | 947384 |
| &nbsp;&nbsp;&nbsp;Total | 3632997 | 3726465 |
| OPERATING (LOSS) | (893139) | (985610) |
| OTHER INCOME (EXPENSE): |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 31128 | 35874 |
| &nbsp;&nbsp;&nbsp;Interest expense | (87753) | (30226) |
| &nbsp;&nbsp;&nbsp;Total | (56625) | 5648 |
| NET (LOSS) BEFORE PROVISION FOR TAXES | (949764) | (979962) |
| BENEFIT FROM FEDERAL AND STATE INCOME TAXES |  | 239841 |
| NET (LOSS) | $(949764) | $(740121) |
| NET (LOSS) PER SHARE, BASIC | $(0.35) | $(0.30) |
| NET (LOSS) PER SHARE, DILUTED | $(0.35) | $(0.30) |
| WEIGHTED AVERAGE SHARES, BASIC | 2733490 | 2506999 |
| WEIGHTED AVERAGE SHARES, DILUTED | 2733490 | 2506999 |

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 **LIFELOC TECHNOLOGIES, INC.<br> Condensed Statements of Changes in Stockholders' Equity (Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Common Stock Shares** | **Common Stock Amount** | **Retained Earnings (Accumulated Deficit)** | **Total** |
| Balance, December 31, 2023 | 2454116 | $4668014 | $1692811 | $6360825 |
| Net (loss) |  |  | (581794) | (581794) |
| Ending balance, June 30, 2024 | 2454116 | 4668014 | 1111017 | 5779031 |
| Issuance of common stock for cash,<br> net of issuance costs | <br> 210000 | <br> 798000 |  | <br> 798000 |
| Net (loss) |  |  | (158327) | (158327) |
| Ending balance, September 30, 2024 | 2664116 | $5466014 | $952690 | $6418704 |
| Balance, December 31, 2024 | 2664116 | $5586014 | $639863 | $6225877 |
| Issuance of shares from option exercise | 88500 | 336300 |  | 336300 |
| Warrants issued with subordinated<br> debenture |  | <br> 12000 |  | <br> 12000 |
| Net (loss) |  |  | (686325) | (686325) |
| Ending balance, June 30, 2025 | 2752616 | 5934314 | (46462) | 5887852 |
| Net (loss) |  |  | (263439) | (263439) |
| Ending balance, September 30, 2025 | 2752616 | $5934314 | $(309901) | $5624413 |

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**LIFELOC TECHNOLOGIES, INC.**

**Condensed Statements of Cash Flows (Unaudited)**

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| | | |
|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| CASH FLOWS FROM OPERATING ACTIVITIES: | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;Net (loss) | (949764) | (740121) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income (loss) to net cash<br> (used in) operating activities- |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 325095 | 193096 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for doubtful accounts, net change | 1500 | 1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for inventory obsolescence, net change |  | 52500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred taxes, net change |  | (239841) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of debt issuance costs | 11937 |  |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities- |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (133415) | 199687 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | 134239 | (187866) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal and state income taxes receivable | 24729 | (60420) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other | (102583) | 16918 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits and other | (34559) | 98896 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 133342 | (73703) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes payable |  | (44952) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Customer and tenant deposits | (25885) | (166779) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 34753 | (58379) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 2174 | (25936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash (used in) operating activities | (578437) | (1035900) |
| CASH FLOWS (USED IN) INVESTING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Purchases of property and equipment | (39510) | (477623) |
| &nbsp;&nbsp;&nbsp;Purchases of research and development equipment, software and<br> space modifications not in service | <br> (310646) | <br> (147615) |
| &nbsp;&nbsp;&nbsp;Patent filing cost |  | (21708) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash (used in) investing activities | (350156) | (646946) |
| CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Principal payments made on term loan | (41356) | (40154) |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of 210,000 shares of common stock<br> at $3.80 per share |  | <br> 798000 |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of subordinated debenture | 75000 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from Issuance of shares from option exercise | 336300 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided from financing activities | 369944 | 757846 |
| NET (DECREASE) IN CASH | (558649) | (925000) |
| CASH, BEGINNING OF PERIOD | 1243746 | 1766621 |
| CASH, END OF PERIOD | 685097 | 841621 |
| SUPPLEMENTAL INFORMATION: |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | 75816 | 27048 |
| &nbsp;&nbsp;&nbsp;Cash paid for income tax |  | 60420 |
| &nbsp;&nbsp;&nbsp;Income tax refund received | 24729 |  |
| &nbsp;&nbsp;&nbsp;Non-cash financing and investing activities: warrants issued with subordinated debenture | 12000 |  |

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