MeritValue

Lifeloc Technologies, Inc

LCTCdata completeness 100%16 fiscal years on file
The thesis, from the filings

Lifeloc Technologies, Inc earns about -14% on equity, but has diluted owners by 9% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$7.05M1$8.48M2$9.33M3$8.54M4$9.03M4
Net income$675,9675−$455,7576$205,6147−$1.05M8−$2.47M8
Operating cash flow$182,9439$54,32510−$525,74011−$1.33M12−$499,31912
Capital expenditure$265,86713$213,20614$6,81115$539,73116$462,79316
Free cash flow (derived)−$82,9249−$158,88110−$532,55111−$1.87M12−$962,11212
Total debt$1.32M17$1.27M18$1.22M19$1.17M20$1.06M20
Cash & equivalents$2.57M21$2.35M22$1.77M23$1.24M23$746,00123
Diluted shares2.5M2.5M2.5M2.5M2.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$14.99
your share of equity
Profit it earned you last year
−$9.02
Free cash flow it threw off
−$3.51
Debt you’d be carrying
$3.87

10 shares is a claim on $14.99 of net worth that earned you −$9.02 and generated −$3.51 of cash last year, against $3.87 of debt.

iii. Is this a good business?
Moat signal · return on equity
-14% avg · 5y
FY21 10%FY22 -7%FY23 3%FY24 -17%FY25 -60%

It earned an average -14% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+9% shares · 5y

Share count is up 9% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 20% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001079973-23-000333 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001079973-24-000474 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001079973-25-000507 (Revenues)
  4. 10-K · period ending 2024-12-31 · accession 0001079973-26-000376 (Revenues)
  5. 10-K · period ending 2021-12-31 · accession 0001079973-23-000333 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001079973-24-000474 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001079973-25-000507 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001079973-26-000376 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001079973-23-000333 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001079973-24-000474 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001079973-25-000507 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001079973-26-000376 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001079973-23-000333 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0001079973-24-000474 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0001079973-25-000507 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001079973-26-000376 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-12-31 · accession 0001079973-23-000333 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2022-12-31 · accession 0001079973-24-000474 (LongTermDebtNoncurrent)
  19. 10-K · period ending 2023-12-31 · accession 0001079973-25-000507 (LongTermDebtNoncurrent)
  20. 10-K · period ending 2024-12-31 · accession 0001079973-26-000376 (LongTermDebtNoncurrent)
  21. 10-K · period ending 2021-12-31 · accession 0001079973-22-000202 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K · period ending 2022-12-31 · accession 0001079973-25-000507 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  23. 10-K · period ending 2023-12-31 · accession 0001079973-26-000376 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)