Lifeloc Technologies Inc. (OTC PINK:LCTC) has closed a $750,000 financing transaction through a subordinated debenture agreement with Diamond Bridge Capital LP. The financing includes a warrant granting Diamond Bridge Capital the right to purchase up to 62,500 shares of Wheat Ridge-based Lifeloc’s common stock at a strike price of $4.50 per share.
The subordinated debenture carries an annual interest rate of 8.25% and matures on Dec. 31, 2030. Proceeds will support the company’s ongoing growth initiatives, fund research and development efforts, including commercialization of Lifeloc’s SpinDx technology, and strengthen its financial position in the alcohol detection and drug screening technologies sector. The agreement also includes registration rights for the resale of the shares underlying the warrant issued to Diamond Bridge Capital.
“This financing marks an important step forward for Lifeloc as we expand our capabilities and build on our legacy of innovation,” said Wayne Willkomm, CEO of Lifeloc Technologies. “The commitment from Diamond Bridge Capital reflects confidence in our business model and future growth prospects. With these funds, we intend to focus on bringing our SpinDx technology to market, expanding our industry-leading testing solutions into a new and growing market.”
According to Vern Kornelsen, Lifeloc’s CFO and largest individual shareholder, “At the beginning of the computer age, data was gathered and then sent to an outside service center for processing. Later, with the evolution of the personal computer, data was gathered and processed locally. We believe SpinDx will drive the same evolution in drug testing.” Currently, testing samples are collected and sent to outside labs for analysis, typically costing between $100 and $300 per test. Lifeloc expects SpinDx to allow for local sample collection and result generation within minutes at an estimated cost of $25 per test.
“There are efforts underway by others to capture this market,” Kornelsen noted. “However, SpinDx is unique in its ability to accurately and quickly process the sample and provide a quantitative result versus the very few devices available today.” Extensive in-house testing has shown that the technology functions effectively, with next steps focused on achieving comprehensive analysis within the disk and validation at beta test sites.
The company plans to reduce the current prototype reader’s size by 25% to improve marketability. Initial production of the analytical disk will be managed by a large international microfluidics company, with plans for in-house production by the end of 2025. Lifeloc has prepared forward-looking financial projections that include expected sales and profits from 2024 to 2028, anticipating that its position in the alcohol breathalyzer market will benefit the introduction of the SpinDx drug detection product.
After launching the SpinDx product, Lifeloc intends to combine it with its alcohol breathalyzer technology to develop a marijuana breathalyzer. “The strategic funding we’re receiving from Diamond Bridge Capital not only reinforces our financial stability but also enables us to stay at the forefront of technological advancements in safety and public health,” Willkomm added.
