{"url_path":"/sec/lctc/10-q/2026/item-1a","section_key":"item-1a","section_title":"Item 1A RISK FACTORS**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-14","source_url":"https://www.sec.gov/Archives/edgar/data/1493137/0001553350-26-000075-index.html","accession_number":"0001553350-26-000075","cik":"0001493137","ticker":"LCTC","issuer_name":"Lifeloc Technologies, Inc","edgar_url":"https://www.sec.gov/Archives/edgar/data/1493137/0001553350-26-000075-index.html","primary_entity_key":"0001493137","primary_entity_name":"Lifeloc Technologies, Inc"},"word_count":273,"has_tables":true,"body_markdown":"**ITEM 1A – RISK FACTORS**\n\n \n\nIn addition to the other information set forth\nin this report, you should carefully consider the factors discussed in ‘‘Risk Factors’’ in our Annual Report on\nForm 10-K for the year ended December 31, 2025, which could materially affect our business, financial condition and/or future results. \nThe risks described in our Annual Report on Form 10-K are not the only risks facing us.  Additional risks and uncertainties\nnot currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition\nand/or operating results.\n\n \n\n*We have increased our reliance on related-party\nfinancing, which may present conflicts of interest and limit our financial flexibility.*\n\n \n\nOn May 4, 2026, we entered into a loan agreement\nwith our CFO and Board Chairman. The loan is secured by substantially all of our assets and is subordinate to the prior perfected security\ninterest held by our senior lender. As a result, substantially all of our assets are now pledged as collateral to multiple lenders, which\nmay limit our ability to obtain additional financing or to dispose of assets without lender consent. The interest rate on the loan is\nsubject to upward adjustment based on changes in the prime rate, which could increase our debt service costs in a rising rate environment.\nIn addition, because the lender is also our CFO and Board Chairman, the terms of the loan were not negotiated on an arm’s-length\nbasis with an unrelated third party, and the lender’s dual role could present conflicts of interest in connection with future decisions\nregarding the loan, including any amendments, extensions, or enforcement actions."}