Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 15, 2021 | |
Cover [Abstract] | ||
Entity Central Index Key | 0001103090 | |
Document Period End Date | Sep. 30, 2021 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-31377 | |
Entity Registrant Name | REFLECT SCIENTIFIC INC | |
Entity Incorporation, State or Country Code | UT | |
Entity Tax Identification Number | 87-0642556 | |
Entity Address, Address Line One | 1266 South 1380 West | |
Entity Address, City or Town | Orem | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84058 | |
City Area Code | 801 | |
Local Phone Number | 226-4100 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity Information, Former Legal or Registered Name | N/A | |
Entity Common Stock, Shares Outstanding | 84,739,086 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
CURRENT ASSETS | ||
Cash | $ 1,143,998 | $ 642,542 |
Accounts receivable, net | 147,688 | 340,427 |
Inventory, net | 585,057 | 438,606 |
Prepaid assets | 22,541 | 24,134 |
Total Current Assets | 1,899,284 | 1,445,709 |
OTHER ASSETS | ||
Operating lease right-of-use assets | 124,089 | 167,641 |
Goodwill | 60,000 | 60,000 |
Deposits | 3,100 | 3,100 |
Total Other Assets | 187,189 | 230,741 |
TOTAL ASSETS | 2,086,473 | 1,676,450 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expense | 89,718 | 70,204 |
Contract liabilities | 78,214 | 113,643 |
Operating lease liabilities - short term | 54,901 | 58,682 |
Income taxes payable | 100 | |
Total Current Liabilities | 222,833 | 242,629 |
LONG-TERM LIABILITIES | ||
Operating lease liability - long-term | 72,061 | 109,338 |
Loan - long-term | 111,342 | |
Total Liabilities | 294,894 | 463,309 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.01 par value, authorized 5,000,000 shares; No shares issued and outstanding | ||
Common stock, $0.01 par value, authorized 100,000,000 shares; 84,739,086 and 84,739,086 issued and outstanding, respectively | 847,390 | 847,390 |
Additional paid in capital | 20,201,931 | 20,201,931 |
Accumulated deficit | (19,257,742) | (19,836,180) |
Total Stockholders' Equity | 1,791,579 | 1,213,141 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,086,473 | $ 1,676,450 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Outstanding | 84,739,086 | 84,739,086 |
Common Stock, Shares, Issued | 84,739,086 | 84,739,086 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
REVENUES | $ 716,145 | $ 610,085 | $ 1,985,640 | $ 2,096,799 |
COST OF GOODS SOLD | 242,343 | 252,112 | 621,317 | 845,281 |
GROSS PROFIT | 473,802 | 357,973 | 1,364,323 | 1,251,518 |
OPERATING EXPENSES | ||||
Salaries and wages | 146,697 | 77,701 | 429,417 | 406,611 |
Research and development expense | 17,544 | 754 | 45,697 | 190,610 |
General and administrative expense | 149,672 | 75,330 | 422,036 | 309,836 |
Total Operating Expenses | 313,913 | 153,785 | 897,150 | 907,057 |
OPERATING INCOME (LOSS) | 159,889 | 204,188 | 467,173 | 344,461 |
OTHER INCOME (EXPENSE) | ||||
Gain on forgiveness of SBA loan | 111,265 | |||
Other income | (132) | |||
Total Other Income (Expenses) | 111,265 | (132) | ||
NET INCOME (LOSS) BEFORE TAXES | 159,889 | 204,188 | 578,438 | 344,329 |
Income tax benefit (expense) | ||||
NET INCOME (LOSS) | $ 159,889 | $ 204,188 | $ 578,438 | $ 344,329 |
NET INCOME (LOSS) PER SHARE - BASIC AND DILUTED | $ 0 | $ 0 | $ 0.01 | $ 0 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC AND DILUTED | 84,739,086 | 84,739,086 | 84,739,086 | 84,739,086 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2019 | $ 847,390 | $ 20,201,931 | $ (20,496,295) | $ 553,026 |
Balance, shares at Dec. 31, 2019 | 84,739,086 | |||
Net income (loss) | 165,595 | 165,595 | ||
Balance at Mar. 31, 2020 | $ 847,390 | 20,201,931 | (20,330,700) | 718,621 |
Balance, shares at Mar. 31, 2020 | 84,739,086 | |||
Balance at Dec. 31, 2019 | $ 847,390 | 20,201,931 | (20,496,295) | 553,026 |
Balance, shares at Dec. 31, 2019 | 84,739,086 | |||
Net income (loss) | 344,329 | |||
Balance at Sep. 30, 2020 | $ 847,390 | 20,201,931 | (20,151,966) | 897,355 |
Balance, shares at Sep. 30, 2020 | 84,739,086 | |||
Balance at Mar. 31, 2020 | $ 847,390 | 20,201,931 | (20,330,700) | 718,621 |
Balance, shares at Mar. 31, 2020 | 84,739,086 | |||
Net income (loss) | (25,454) | (25,454) | ||
Balance at Jun. 30, 2020 | $ 847,390 | 20,201,931 | (20,356,154) | 693,167 |
Balance, shares at Jun. 30, 2020 | 84,739,086 | |||
Net income (loss) | 204,188 | 204,188 | ||
Balance at Sep. 30, 2020 | $ 847,390 | 20,201,931 | (20,151,966) | 897,355 |
Balance, shares at Sep. 30, 2020 | 84,739,086 | |||
Balance at Dec. 31, 2020 | $ 847,390 | 20,201,931 | (19,836,180) | $ 1,213,141 |
Balance, shares at Dec. 31, 2020 | 84,739,086 | 84,739,086 | ||
Net income (loss) | 247,768 | $ 247,768 | ||
Balance at Mar. 31, 2021 | $ 847,390 | 20,201,931 | (19,588,412) | 1,460,909 |
Balance, shares at Mar. 31, 2021 | 84,739,086 | |||
Balance at Dec. 31, 2020 | $ 847,390 | 20,201,931 | (19,836,180) | $ 1,213,141 |
Balance, shares at Dec. 31, 2020 | 84,739,086 | 84,739,086 | ||
Net income (loss) | $ 578,438 | |||
Balance at Sep. 30, 2021 | $ 847,390 | 20,201,931 | (19,257,742) | $ 1,791,579 |
Balance, shares at Sep. 30, 2021 | 84,739,086 | 84,739,086 | ||
Balance at Mar. 31, 2021 | $ 847,390 | 20,201,931 | (19,588,412) | $ 1,460,909 |
Balance, shares at Mar. 31, 2021 | 84,739,086 | |||
Net income (loss) | 170,781 | 170,781 | ||
Balance at Jun. 30, 2021 | $ 847,390 | 20,201,931 | (19,417,631) | 1,631,690 |
Balance, shares at Jun. 30, 2021 | 84,739,086 | |||
Net income (loss) | 159,889 | 159,889 | ||
Balance at Sep. 30, 2021 | $ 847,390 | $ 20,201,931 | $ (19,257,742) | $ 1,791,579 |
Balance, shares at Sep. 30, 2021 | 84,739,086 | 84,739,086 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 578,438 | $ 344,329 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation | 2,985 | |
Amortization of operating lease right-of-use asset | 43,552 | 45,376 |
Gain on forgiveness of SBA loan | (111,265) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 192,739 | (17,438) |
Inventory | (146,451) | (59,237) |
Prepaid expenses | 1,493 | 21,221 |
Accounts payable and accrued expenses | 19,437 | (62,831) |
Operating lease liabilities | (41,058) | (45,992) |
Customer deposits | (35,429) | (325,902) |
Net Cash provided by (used in) Operating Activities | 501,456 | (97,489) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net funds received from PPP loan | 121,297 | |
Net funds received from line of credit | (8,238) | |
Net cash provided by financing activities | 113,059 | |
NET CHANGE IN CASH | 501,456 | 15,570 |
CASH AT BEGINNING OF PERIOD | 642,542 | 555,156 |
CASH AT END OF PERIOD | 1,143,998 | 570,726 |
Cash Paid For: | ||
Interest | 588 | |
Income taxes |
BASIS OF FINANCIAL STATEMENT PR
BASIS OF FINANCIAL STATEMENT PRESENTATION | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF FINANCIAL STATEMENT PRESENTATION | NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to accounting principles generally accepted in the United States of America. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted in accordance with rules and regulations of the Securities and Exchange Commission. The information furnished in the interim condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. Although management believes the disclosures and information presented are adequate to make the information not misleading, it is suggested that these interim condensed consolidated financial statements be read in conjunction with the Company’s most recent audited consolidated financial statements and notes thereto included in its December 31, 2020 financial statements. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION AND LINE OF BUSINESS: Reflect Scientific, Inc. (the Company) was incorporated under the laws of the State of Utah on November 3, 1999 as Cole, Inc. The Company was organized to engage in any lawful activity for which corporations may be organized under the Utah Revised Business Corporation Act. On December 30, 2003 the Company changed its name to Reflect Scientific, Inc. Reflect Scientific designs, develops and sells scientific equipment for the Life Science and Manufacturing industries. The Company’s business activities include the manufacture and distribution of unique laboratory consumables and disposables such as filtration and purification products, customized sample handling vials, electronic wiring assemblies, high temperature silicone, graphite and vespel/graphite sealing components for use by original equipment manufacturers (“OEM”) in the chemical analysis industries, primarily in the field of gas/liquid chromatography. SIGNIFICANT ACCOUNTING POLICIES: PRINCIPLES OF CONSOLIDATION: The accompanying consolidated financial statements include the accounts of Reflect Scientific, Inc. and its wholly owned subsidiary, Cryometrix. Intercompany transactions and accounts have been eliminated in consolidation. 11 USE OF ESTIMATES: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. REVENUE RECOGNITION. We have applied the new revenue standard to all contracts from the date of initial application. We recognize revenue when or as we satisfy a performance obligation. We generally satisfy performance obligations at a point in time upon shipment of goods or, with our freezers, upon final acceptance of the unit by the customer, in accordance with the terms of each contract with the customer. A part of our customer base is made up of international customers. The table below allocates revenue between domestic and international customers. For the Three Months Ended For the Three Months Ended September 30, 2021 September 30, 2020 Segments Total Total Domestic $ 422,866 $ 422,866 $ 373,468 $ 373,468 International 293,279 293,279 236,617 236,617 $ 716,145 $ 716,145 $ 610,085 $ 610,085 Components $ 293,266 $ 293,266 $ 304,995 $ 304,995 Equipment 422,879 422,879 305,090 305,090 $ 716,145 $ 716,145 $ 610,085 $ 610,085 For the Nine Months Ended For the Nine Months Ended September 30, 2021 September 30, 2020 Segments Total Total Domestic $ 1,023,314 $ 1,023,314 $ 1,523,545 $ 1,523,545 International 962,326 962,326 573,254 573,254 $ 1,985,640 $ 1,985,640 $ 2,096,799 $ 2,096,799 Components $ 735,539 $ 735,539 $ 768,409 $ 768,409 Equipment 1,250,101 1,250,101 1,328,390 1,328,390 $ 1,985,640 $ 1,985,640 $ 2,096,799 $ 2,096,799 12 ACCOUNTS RECEIVABLE: Accounts receivables are presented net of an allowance for doubtful accounts. The Company maintains allowances for doubtful accounts for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. At September 30, 2021 and December 31, 2020, the Company had accounts receivable, net of the allowance, of $147,688 and $340,427, respectively. At September 30, 2021 and December 31, 2020, the allowance for doubtful accounts was $4,000 and $4,000, respectively. INVENTORY: Inventories are presented net of an allowance for obsolescence and are stated at the lower of cost or market value based upon the average cost inventory method. The Company’s inventory consists of parts for scientific vial kits, refrigerant gases, components for detectors and ultra-low temperature freezers which it builds and other scientific items. At September 30, 2021 and December 31, 2020, the Company had inventory consisting of raw materials and finished goods, net of allowance, of $585,057 and $438,606, respectively. Of the total raw materials represented $5,353 at September 30, 2021 and $10,767 at December 31, 2020. At September 30, 2021 and December 31, 2020, the allowance for obsolescence was $106,044 and $106,044, respectively. INTANGIBLE ASSETS: Costs to obtain or develop patents are capitalized and amortized over the life of the patents. Patents are amortized from the date the Company acquires or is awarded the patent over their estimated useful lives, which range from 5 to 15 years. An impairment charge is recognized if the carrying amount is not recoverable and the carrying amount exceeds the fair value of the intangible assets as determined by projected discounted net future cash flows. We perform an impairment analysis on an annual basis. The Company’s analysis did not indicate any impairment of intangible assets as of the impairment analysis conducted December 31, 2020. As of September 30, 2021 and December 31, 2020, all of the intangible assets were fully amortized. GOODWILL: Goodwill represents the excess of the Company’s acquisition cost over the fair value of net assets of the acquisition. Goodwill is not amortized, but is tested for impairment annually, or when a triggering event occurs. As described in ACS 360, the Company has adopted the goodwill impairment analysis that includes quantitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. A fair-value-based test is applied at the overall Company level. The test compares the estimated fair value of the Company at the date of the analysis to the carrying value of its net assets. The analysis also requires various judgments and estimates, including general and macroeconomic conditions, industry and the Company’s targeted market conditions, as well as relevant entity-specific events, such as a change in the market for the Company’s products and services. After considering the qualitative factors that would indicate a need for interim impairment of goodwill and applying the two-step process described in ASC 360, management has determined that the value of Company’s assets is not more likely than not less than the carrying value of the Company including goodwill, and that no impairment charge needs be recognized during the reporting periods. LEASES: The Company, in accordance with ASC 842, accounts for leases as right-of-use assets (“ROU”) and lease liabilities on the balance sheet. The Company elected not to separate lease and non-lease components, but to treat as single lease costs. We estimate our incremental borrowing rate, which is defined as the interest rate we would pay to borrow on a collateralized basis, considering such factors as length of lease term and the risks of the economic environment in which the leased asset operates. The lease term used to calculate ROU assets and lease liabilities only includes renewal and termination options that are deemed reasonably certain to be exercised. 13 RESEARCH AND DEVELOPMENT - The Company accounts for research and development costs in accordance with the Financial Accounting Standards Board's Accounting Standard Codification Topic 730 “Research and Development". Under ASC 730, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and developments costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. NET INCOME (LOSS) PER SHARE: The computation of basic profit and loss per share of common stock is based on the weighted average number of shares outstanding during the period. Diluted EPS is computed by dividing net earnings by the weighted-average number of common shares and dilutive common stock equivalents during the period. Common stock equivalents are not used in calculating dilutive EPS when their inclusion would be anti-dilutive. At September 30, 2021 and 2020, the Company had no common stock equivalents. RECENT ACCOUNTING PRONOUNCEMENTS: The Company has reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its consolidated results of operation, financial position and cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its current or future earnings or operations. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
LEASES | NOTE 3 - LEASES We have operating leases for our office and warehouse facility as well as for an automobile. We used the lease termination dates of November 30, 2023 for the building and July 7, 2021 for the automobile to calculate right of use (“ROU”) assets and lease liabilities. The following was included in our consolidated condensed balance sheet as of September 30, 2021: Leases As of September 30, 2021 Assets ROU operating lease assets $ 124,089 Liabilities Operating lease liabilities – current portion $ 54,901 Operating lease liabilities $ 72,061 Total operating lease liabilities $ 126,962 14 We recognize lease expense on a straight-line basis over the term of the lease. Nine Months Ended Lease Cost September 30, 2021 Operating lease cost Administrative expenses $ 5,661 Rent expense 43,259 Total operating lease cost $ 48,920 Our building lease does not specify an implicit rate of interest. Therefore, we estimate our incremental borrowing rate, which is defined as the interest rate we would pay to borrow on a collateralized basis, considering such factors as length of lease term and the risks of the economic environment in which the leased asset operates. As of September 30, 2021, the following disclosures for remaining lease term and incremental borrowing rates were applicable: Nine Months Ended Supplemental Disclosures September 30, 2021 Weighted average remaining lease term 2.17 years Weighted average discount rate 5.25% |
INVENTORY
INVENTORY | 9 Months Ended |
Sep. 30, 2021 | |
Inventory, Net [Abstract] | |
INVENTORY | NOTE 4 - INVENTORY Inventories are presented net of an allowance for obsolescence and are stated at the lower of cost or market value based upon the average cost inventory method. The Company’s inventory consists of parts for scientific vial kits, refrigerant gases, components for detectors and ultra-low temperature freezers which it builds and other scientific items. At September 30, 2021 and December 31, 2020, the Company had inventory consisting of finished goods, net of allowance, of $585,057 and $438,606, respectively. At September 30, 2021 and December 31, 2020, the allowance for obsolescence was $106,044 and $106,044, respectively. |
NOTE PAYABLE
NOTE PAYABLE | 9 Months Ended |
Sep. 30, 2021 | |
Notes Payable [Abstract] | |
NOTE PAYABLE | NOTE 5 - NOTE PAYABLE On April 5, 2020, we received approval from our bank Chase Bank for the Paycheck Protection Program Loan (“PPP”). The terms of the loan were for 24 months at 0.98% per annum. The Company received notification that the PPP loan was fully forgiven by the Small Business Administration on February 7, 2021, both as to principal and interest, resulting in a $111,265 gain. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 6 - SUBSEQUENT EVENTS In accordance with ASC 855-10 management reviewed all material events through the date of this report. There are no material subsequent events to report. |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION: The accompanying consolidated financial statements include the accounts of Reflect Scientific, Inc. and its wholly owned subsidiary, Cryometrix. Intercompany transactions and accounts have been eliminated in consolidation. |
USE OF ESTIMATES | USE OF ESTIMATES: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. |
REVENUE RECOGNITION | REVENUE RECOGNITION. We have applied the new revenue standard to all contracts from the date of initial application. We recognize revenue when or as we satisfy a performance obligation. We generally satisfy performance obligations at a point in time upon shipment of goods or, with our freezers, upon final acceptance of the unit by the customer, in accordance with the terms of each contract with the customer. A part of our customer base is made up of international customers. The table below allocates revenue between domestic and international customers. For the Three Months Ended For the Three Months Ended September 30, 2021 September 30, 2020 Segments Total Total Domestic $ 422,866 $ 422,866 $ 373,468 $ 373,468 International 293,279 293,279 236,617 236,617 $ 716,145 $ 716,145 $ 610,085 $ 610,085 Components $ 293,266 $ 293,266 $ 304,995 $ 304,995 Equipment 422,879 422,879 305,090 305,090 $ 716,145 $ 716,145 $ 610,085 $ 610,085 For the Nine Months Ended For the Nine Months Ended September 30, 2021 September 30, 2020 Segments Total Total Domestic $ 1,023,314 $ 1,023,314 $ 1,523,545 $ 1,523,545 International 962,326 962,326 573,254 573,254 $ 1,985,640 $ 1,985,640 $ 2,096,799 $ 2,096,799 Components $ 735,539 $ 735,539 $ 768,409 $ 768,409 Equipment 1,250,101 1,250,101 1,328,390 1,328,390 $ 1,985,640 $ 1,985,640 $ 2,096,799 $ 2,096,799 |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE: Accounts receivables are presented net of an allowance for doubtful accounts. The Company maintains allowances for doubtful accounts for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. At September 30, 2021 and December 31, 2020, the Company had accounts receivable, net of the allowance, of $147,688 and $340,427, respectively. At September 30, 2021 and December 31, 2020, the allowance for doubtful accounts was $4,000 and $4,000, respectively. |
INVENTORY | INVENTORY: Inventories are presented net of an allowance for obsolescence and are stated at the lower of cost or market value based upon the average cost inventory method. The Company’s inventory consists of parts for scientific vial kits, refrigerant gases, components for detectors and ultra-low temperature freezers which it builds and other scientific items. At September 30, 2021 and December 31, 2020, the Company had inventory consisting of raw materials and finished goods, net of allowance, of $585,057 and $438,606, respectively. Of the total raw materials represented $5,353 at September 30, 2021 and $10,767 at December 31, 2020. At September 30, 2021 and December 31, 2020, the allowance for obsolescence was $106,044 and $106,044, respectively. |
INTANGIBLE ASSETS | INTANGIBLE ASSETS: Costs to obtain or develop patents are capitalized and amortized over the life of the patents. Patents are amortized from the date the Company acquires or is awarded the patent over their estimated useful lives, which range from 5 to 15 years. An impairment charge is recognized if the carrying amount is not recoverable and the carrying amount exceeds the fair value of the intangible assets as determined by projected discounted net future cash flows. We perform an impairment analysis on an annual basis. The Company’s analysis did not indicate any impairment of intangible assets as of the impairment analysis conducted December 31, 2020. As of September 30, 2021 and December 31, 2020, all of the intangible assets were fully amortized. |
GOODWILL | GOODWILL: Goodwill represents the excess of the Company’s acquisition cost over the fair value of net assets of the acquisition. Goodwill is not amortized, but is tested for impairment annually, or when a triggering event occurs. As described in ACS 360, the Company has adopted the goodwill impairment analysis that includes quantitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. A fair-value-based test is applied at the overall Company level. The test compares the estimated fair value of the Company at the date of the analysis to the carrying value of its net assets. The analysis also requires various judgments and estimates, including general and macroeconomic conditions, industry and the Company’s targeted market conditions, as well as relevant entity-specific events, such as a change in the market for the Company’s products and services. After considering the qualitative factors that would indicate a need for interim impairment of goodwill and applying the two-step process described in ASC 360, management has determined that the value of Company’s assets is not more likely than not less than the carrying value of the Company including goodwill, and that no impairment charge needs be recognized during the reporting periods. |
LEASES | LEASES: The Company, in accordance with ASC 842, accounts for leases as right-of-use assets (“ROU”) and lease liabilities on the balance sheet. The Company elected not to separate lease and non-lease components, but to treat as single lease costs. We estimate our incremental borrowing rate, which is defined as the interest rate we would pay to borrow on a collateralized basis, considering such factors as length of lease term and the risks of the economic environment in which the leased asset operates. The lease term used to calculate ROU assets and lease liabilities only includes renewal and termination options that are deemed reasonably certain to be exercised. |
RESEARCH AND DEVELOPMENT | RESEARCH AND DEVELOPMENT - The Company accounts for research and development costs in accordance with the Financial Accounting Standards Board's Accounting Standard Codification Topic 730 “Research and Development". Under ASC 730, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and developments costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. |
NET INCOME (LOSS) PER SHARE | NET INCOME (LOSS) PER SHARE: The computation of basic profit and loss per share of common stock is based on the weighted average number of shares outstanding during the period. Diluted EPS is computed by dividing net earnings by the weighted-average number of common shares and dilutive common stock equivalents during the period. Common stock equivalents are not used in calculating dilutive EPS when their inclusion would be anti-dilutive. At September 30, 2021 and 2020, the Company had no common stock equivalents. |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS: The Company has reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its consolidated results of operation, financial position and cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its current or future earnings or operations. |
ORGANIZATION AND SUMMARY OF S_3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Disaggregated Revenues | A part of our customer base is made up of international customers. The table below allocates revenue between domestic and international customers. For the Three Months Ended For the Three Months Ended September 30, 2021 September 30, 2020 Segments Total Total Domestic $ 422,866 $ 422,866 $ 373,468 $ 373,468 International 293,279 293,279 236,617 236,617 $ 716,145 $ 716,145 $ 610,085 $ 610,085 Components $ 293,266 $ 293,266 $ 304,995 $ 304,995 Equipment 422,879 422,879 305,090 305,090 $ 716,145 $ 716,145 $ 610,085 $ 610,085 For the Nine Months Ended For the Nine Months Ended September 30, 2021 September 30, 2020 Segments Total Total Domestic $ 1,023,314 $ 1,023,314 $ 1,523,545 $ 1,523,545 International 962,326 962,326 573,254 573,254 $ 1,985,640 $ 1,985,640 $ 2,096,799 $ 2,096,799 Components $ 735,539 $ 735,539 $ 768,409 $ 768,409 Equipment 1,250,101 1,250,101 1,328,390 1,328,390 $ 1,985,640 $ 1,985,640 $ 2,096,799 $ 2,096,799 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of Lessee Operating Lease Disclosure | The following was included in our consolidated condensed balance sheet as of September 30, 2021: Leases As of September 30, 2021 Assets ROU operating lease assets $ 124,089 Liabilities Operating lease liabilities – current portion $ 54,901 Operating lease liabilities $ 72,061 Total operating lease liabilities $ 126,962 |
Schedule of Lease Cost | We recognize lease expense on a straight-line basis over the term of the lease. Nine Months Ended Lease Cost September 30, 2021 Operating lease cost Administrative expenses $ 5,661 Rent expense 43,259 Total operating lease cost $ 48,920 |
Schedule of Supplemental Disclosure | Our building lease does not specify an implicit rate of interest. Therefore, we estimate our incremental borrowing rate, which is defined as the interest rate we would pay to borrow on a collateralized basis, considering such factors as length of lease term and the risks of the economic environment in which the leased asset operates. As of September 30, 2021, the following disclosures for remaining lease term and incremental borrowing rates were applicable: Nine Months Ended Supplemental Disclosures September 30, 2021 Weighted average remaining lease term 2.17 years Weighted average discount rate 5.25% |
ORGANIZATION AND SUMMARY OF S_4
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounts receivable, net | $ 147,688 | $ 340,427 |
Accounts Receivable, Allowance for Credit Loss | 4,000 | 4,000 |
Inventory, net | 585,057 | 438,606 |
Raw material | 5,353 | 10,767 |
Inventory Adjustments | $ 106,044 | $ 106,044 |
Minimum [Member] | ||
Intangible asstes estimated useful lives | 5 years | |
Maximum [Member] | ||
Intangible asstes estimated useful lives | 15 years |
ORGANIZATION AND SUMMARY OF S_5
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Disaggregated Revenues) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 716,145 | $ 610,085 | $ 1,985,640 | $ 2,096,799 |
Consumer Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 716,145 | 610,085 | 1,985,640 | 2,096,799 |
Domestic [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 422,866 | 373,468 | 1,023,314 | 1,523,545 |
Domestic [Member] | Consumer Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 422,866 | 373,468 | 1,023,314 | 1,523,545 |
International [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 293,279 | 236,617 | 962,326 | 573,254 |
International [Member] | Consumer Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 293,279 | 236,617 | 962,326 | 573,254 |
Components [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 293,266 | 304,995 | 735,539 | 768,409 |
Components [Member] | Consumer Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 293,266 | 304,995 | 735,539 | 768,409 |
Equipment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 422,879 | 305,090 | 1,250,101 | 1,328,390 |
Equipment [Member] | Consumer Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 422,879 | $ 305,090 | $ 1,250,101 | $ 1,328,390 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Lessee, Lease, Description [Line Items] | |
Lease expiration date | Nov. 30, 2023 |
Automobiles [Member] | |
Lessee, Lease, Description [Line Items] | |
Lease expiration date | Jul. 7, 2021 |
LEASES (Schedule of Lessee Oper
LEASES (Schedule of Lessee Operating Lease Disclosure) (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
ROU operating lease assets | $ 124,089 | $ 167,641 |
Operating lease liabilities - current portion | 54,901 | 58,682 |
Operating lease liabilities | 72,061 | $ 109,338 |
Total operating lease liabilities | $ 126,962 |
LEASES (Schedule of Lease Cost)
LEASES (Schedule of Lease Cost) (Details) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Operating lease cost | |
Administrative expenses | $ 5,661 |
Rent expense | 43,259 |
Total operating lease cost | $ 48,920 |
LEASES (Schedule of Supplementa
LEASES (Schedule of Supplemental Disclosure) (Details) | Sep. 30, 2021 |
Leases [Abstract] | |
Weighted average remaining lease term | 2 years 2 months 1 day |
Weighted average discount rate | 5.25% |
INVENTORY (Details)
INVENTORY (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory, Net [Abstract] | ||
Inventory, net | $ 585,057 | $ 438,606 |
Inventory allowance | $ 106,044 | $ 106,044 |
NOTE PAYABLE (Details)
NOTE PAYABLE (Details) - USD ($) | Apr. 05, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Debt Instrument [Line Items] | |||||
Gain on forgiveness of debt | $ 111,265 | ||||
Paycheck Protection Program Loan [Member] | Chase Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan term | 24 months | ||||
Loan interest rate | 0.98% |