Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 23, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Entity Central Index Key | 0001103090 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 000-31377 | ||
Entity Registrant Name | REFLECT SCIENTIFIC, INC. | ||
Entity Incorporation State Country Code | UT | ||
Entity Tax Identification Number | 87-0642556 | ||
Entity Address, Address Line One | 1266 South 1380 West | ||
Entity Address, Address Line Two | Orem, Utah 84058 | ||
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 | ||
Title of 12(b) Security | $0.01 par value common stock | ||
Trading Symbol | RSCF | ||
Name of Exchange on which Security is Registered | NONE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 84,989,086 | ||
Entity Public Float | $ 15,715,254 | ||
Auditor Name | Sadler, Gibb & Associates, LLC | ||
Auditor Location | Draper, UT | ||
Auditor Firm Id | 3627 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS | ||
Cash | $ 1,473,924 | $ 642,542 |
Accounts receivable, net | 175,649 | 340,427 |
Inventories, net | 624,486 | 438,606 |
Prepaid assets | 31,306 | 24,134 |
Total Current Assets | 2,305,365 | 1,445,709 |
PROPERTY AND EQUIPMENT, NET | ||
OTHER ASSETS | ||
Operating lease right-of-use assets | 110,483 | 167,641 |
Goodwill | 60,000 | 60,000 |
Deposits | 3,100 | 3,100 |
Total Other Assets | 173,583 | 230,741 |
TOTAL ASSETS | 2,478,948 | 1,676,450 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 66,837 | 70,204 |
Contract liabilities | 118,566 | 113,643 |
Operating lease liability - short-term | 56,446 | 58,682 |
Income taxes payable | 100 | |
Total Current Liabilities | 241,849 | 242,629 |
LONG-TERM LIABILITIES | ||
Loan payable - PPP | 111,342 | |
Operating lease liability - long-term | 57,393 | 109,338 |
Total Liabilities | 299,242 | 463,309 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' 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; 84,989,086 and 84,739,086 shares issued and outstanding, respectively | 849,890 | 847,390 |
Additional paid in capital | 20,226,931 | 20,201,931 |
Accumulated deficit | (18,897,115) | (19,836,180) |
Total Shareholders' Equity | 2,179,706 | 1,213,141 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 2,478,948 | $ 1,676,450 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 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 | 84,989,086 | 84,739,086 |
Common Stock, Shares, Issued | 84,989,086 | 84,739,086 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
REVENUES | $ 2,814,670 | $ 2,792,623 |
COST OF GOODS SOLD | 884,066 | 1,071,321 |
GROSS PROFIT | 1,930,604 | 1,721,302 |
OPERATING EXPENSES | ||
Salaries and wages | 608,065 | 534,525 |
Research and development | 58,340 | 185,295 |
General and administrative | 436,399 | 350,477 |
Total Operating Expenses | 1,102,804 | 1,070,297 |
OPERATING INCOME | 827,800 | 651,005 |
OTHER INCOME (EXPENSE) | ||
Interest Expense | (890) | |
Gain on EIDL Grant | 10,000 | |
Gain on forgiveness of debt - PPP loan | 111,265 | |
Total Other Income (Expenses) | 111,265 | 9,110 |
NET INCOME BEFORE INCOME TAX EXPENSE | 939,065 | 660,115 |
Income tax expense | ||
NET INCOME | $ 939,065 | $ 660,115 |
NET LOSS PER SHARE - BASIC AND DILUTED | $ 0.01 | $ 0.01 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC AND DILUTED | 84,739,770 | 84,739,086 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Total |
Balance, value 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 | 660,115 | 660,115 | ||
Balance, value 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 | ||
Common stock issued for consulting services | $ 2,500 | 25,000 | $ 27,500 | |
Common stock issued for consulting services, shares | 250,000 | |||
Net income | 939,065 | 939,065 | ||
Balance, value at Dec. 31, 2021 | $ 849,890 | $ 20,226,931 | $ (18,897,115) | $ 2,179,706 |
Balance, shares at Dec. 31, 2021 | 84,989,086 | 84,989,086 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 939,065 | $ 660,115 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation | 3,786 | |
Gain on forgiveness of PPP loan | (111,265) | |
Common stock issued for consulting services | 27,500 | |
Amortization of operating lease asset | 57,158 | 58,555 |
Forgiveness of EIDL Grant | (10,000) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 164,778 | (221,972) |
Inventory | (185,880) | (185,755) |
Prepaid assets | (7,172) | 3,349 |
Accounts payable and accrued expenses | (3,544) | (38,403) |
Operating lease liability | (54,181) | (59,095) |
Contract liabilities | 4,923 | (235,798) |
Net Cash from Operating Activities | 831,382 | (25,218) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Net Cash used in Investing Activities | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from Loan Payable - SBA PPP loan | 111,342 | |
EIDL Grant | 10,000 | |
Payment on Short-term lines of credit | (8,738) | |
Net Cash from Financing Activities | 112,604 | |
NET CHANGE IN CASH | 831,382 | 87,386 |
CASH AT BEGINNING OF PERIOD | 642,542 | 555,156 |
CASH AT END OF PERIOD | 1,473,924 | 642,542 |
Cash Paid For: | ||
Interest | 132 | |
Income taxes | 100 | |
Non-cash Investing and Financing Activities: | ||
Operating lease right-of-use assets obtained for operating liabilities | $ 168,247 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 - ORGANIZATION AND DESCRIPTION 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 Reflect Scientific is engaged in the manufacture and distribution of innovative products targeted at the life sciences market. Our customers include hospitals, diagnostic laboratories, pharmaceutical and biotech companies, cold chain management, universities, government and private sector research facilities, chemical and industrial companies. Our Cryometrix brand ultra-ow temperature and blast freezers innovative design enables our customers to save substantially on energy costs related to cryogenic storage. Ultra-low temperature freezers are used worldwide for the storage of vaccines, DNA, RNA, proteins and many other biological and chemical substances. There is a growing need for energy efficient reliable ultra-low temperature storage units. Our Cryometrix freezers are targeted to this growing market and we have had tremendous success in blood storage and pharmaceutical manufacturing applications. The application of this technology for use in refrigerated trailers (commonly called “reefers”) used to transport good which need to be maintained in a cold environment significantly broadens the market for this technology. The utilization of this technology in reefers eliminates the current method of cooling, which uses engines run on hydrocarbon fuels. The Cryometrix technology is pollutant free and is more efficient and cost effective than the technologies currently used. Reflect Scientific has added a new product line of solvent chillers. Solvent chillers are used in natural products extraction for optimizing product yield and purity. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. Accounting Method The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. b. Revenue Recognition We sell our specialty science and environmental lab supplies through direct sales and through distributor relationships. We sell our ultra-low temperature freezers through consultants and commission-only sales personnel. Revenue is recognized when a customer obtains control of promised goods based on the consideration we expect to receive in exchange for these goods. This core principle is achieved through the following steps: Identify the contract with the customer Identify the performance obligations in the contract Ultra-low temperature freezers sold to customers are built to order. Generally, 50% of the value of the contract is paid by the customer prior to work beginning on manufacturing the freezer. Upon completion of manufacturing and testing the customer will then sign an acceptance of the unit and make payment of the remaining balance on the contract, at which title passes to the customer. The units are FOB ship point. The customer may either arrange to transport the unit with a carrier he uses or ask the Company to arrange such shipment, the charges of which are the responsibility of the customer. A customer may, after accepting the unit, request that it be upgraded with additional hardware or software options. Those options are installed under a new contract, with the deposit and final payment requirements being the same as on the original order. 33 Determine the transaction price Allocate the transaction price to performance obligations in the contract Recognize revenue when or as we satisfy a performance obligation. Contract Balances A part of our customer base is made up of international customers. The following table presents Reflect Scientific revenues disaggregated by region and product type: December 31, 2021 December 31, 2020 Segments Consumer Products Total Consumer Products Total Domestic $ 1,786,437 1,786,437 $ 2,173,209 2,173,209 International 1,028,233 1,028,233 619,414 619,414 $ 2,814,670 2,814,670 $ 2,792,623 2,792,623 Components 904,490 904,490 $ 842,161 842,161 Chillers/Freezers 1,910,180 1,910,180 1,950,462 1,950,462 $ 2,814,670 2,814,670 $ 2,792,623 2,792,623 c. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. d. Cash The Company considers all deposit accounts and investment accounts with an original maturity of 90 days or less to be cash equivalents. e. Accounts Receivable The Company maintains an allowance for doubtful accounts to provide for losses arising from customers’ inability to make required payments. If there is deterioration of our customers’ credit worthiness and/or there is an increase in the length of time that the receivables are past due greater than the historical assumptions used, additional allowances may be required. The Company estimates allowance for doubtful accounts based on the aged receivable balances and historical losses. The Company charges off uncollectible accounts when management determines there is no possibility of collecting the related receivable. The Company considers accounts receivable to be past due or delinquent based on contractual terms, which is generally net 30 days. 34 The Company charged $0 and $0, respectively, to bad debt expense for the years ended December 31, 2021 and 2020. As the Company has historically experienced minimal bad debts, management feels the allowance for doubtful accounts balance of $4,000 at December 31, 2021 to be an adequate reserve based on the experience seen over multiple years. The Company maintains an allowance for doubtful accounts to provide for losses arising from customers’ inability to make required payments. If there is deterioration of our customers’ credit worthiness and/or there is an increase in the length of time that the receivables are past due greater than the historical assumptions used, additional allowances may be required. f. Property and Equipment Property and equipment are stated at cost. Expenditure for minor repairs, maintenance, and replacement parts which do not increase the useful lives of the assets are charged to expense as incurred. All major additions and improvements are capitalized. Depreciation is computed using the straight-line method. The lives over which the property and equipment are depreciated range from 5 to 7 years, except for computer equipment, which is depreciated over a 3-year life. g. Inventories Inventories 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 the imaging and inspection systems which it builds, and other scientific items. An allowance is recorded when it is determined that the amount owing is at high risk. The Company recorded $106,044 and $106,044 in the inventory allowance for the years 2021 and 2020, respectively. h. Cost of Sales Charges to cost of sales are made on a first-in first-out method (FIFO). In addition to the component costs, some labor costs are allocated to cost of goods for the direct labor utilized to build the sub-assemblies and finished goods. i. Advertising Expense The Company follows the policy of charging the costs of advertising to expense as incurred. The Company recognized $21,971 and $22,175 of advertising expense during the years ended December 31, 2021, and 2020, respectively. j. Newly Issued Accounting Pronouncements The Company has reviewed all FASB-issued ASU accounting pronouncements and interpretations thereof that have effective dates during the period reported and in future periods. The Company has carefully considered the new pronouncements that alter previous GAAP and does not believe that any new or modified principles will have a material impact on the company’s reported financial position or operations in the near term. The applicability of any standard is subject to the formal review of the Company’s financial management and certain standards are under consideration. k. Earnings per Share The computation of basic earnings 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 December 31, 2021 and 2020, the Company had no common stock equivalents. For the year ended December 31, 2021 For the year ended December 31, 2020 Net income (numerator) $ 939,065 $ 660,115 Shares (denominator) 84,739,770 84,739,086 Net earnings per share amount - basic $ 0.01 $ 0.04 Shares (denominator) 84,739,770 84,739,086 Net earnings per share amount - diluted $ 0.01 $ 0.01 35 l. Shipping and Handling Fees and Costs The Company records all shipping and handling costs as operating costs. Freight paid on outgoing shipments in 2021 and 2020 was $122,677 and $81,089, respectively, and is recorded in general and administrative expense. m. Income Taxes Deferred taxes are provided on an asset and liability approach whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company’s policy is to recognize potential interest and penalties accrued related to unrecognized tax benefits within income tax expense. For the years ended December 31, 2021 and 2020, it did not recognize any interest or penalties in its Statement of Operations, nor did it have any interest or penalties accrued in its Balance Sheet at December 31, 2021 and 2020 relating to unrecognized benefits. n. Principles of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries, which include Cryometrix (previously Cryomastor). All subsidiaries are wholly owned. All material intercompany accounts and transactions are eliminated in consolidation. o. Research and development expense 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. The Company had $58,340 and $185,295 in research and product development for the years ended December 31, 2021 and 2020, respectively. p. Stock-Based Compensation The Company, in accordance with ASC 718, Compensation – Stock Compensation Measurement Objective – Fair Value at Grant Date q. Intangible Assets Intangible assets include trademarks, trade secrets, patents, customer lists and goodwill acquired through acquisition of subsidiaries. The patents have been registered with the United States Patent and Trademarks Office. The costs of obtaining patents are capitalized as incurred. Intangibles, except for goodwill, are amortized over their estimated useful lives. The Company regularly evaluates whether events or circumstances have occurred that indicate possible impairment and relies on a number of factors, including operating results, business plans, economic projections, and anticipated future cash flows. The Company uses an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life in measuring whether the assets are recoverable. Measurement of the amount of impairment, if any, is based upon the difference between the asset’s carrying value and estimated fair value. Fair value is determined through various valuation techniques, including cost-based, market and income approaches as considered necessary. r. Goodwill Goodwill represents the excess of the JMST assets acquired over the fair value of net assets acquired. Goodwill is not amortized but instead is tested for impairment, at a reporting unit level, annually and when events and circumstances warrant an evaluation. The Company evaluates goodwill on an annual basis, as of the end of the fourth quarter, and whenever events and changes in circumstances indicate that there may be a potential impairment. In making this assessment, management relies on a number of factors, including operating results, business plans, economic projections, anticipated future cash flows, business trends and market conditions. Accordingly, the Company recorded on impairment of goodwill for the years ended December 31, 2021 and 2020. 36 s. Leases In February of 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-02 - Leases (Topic 842), which significantly amends the way companies are required to account for leases. Under the updated leasing guidance, some leases that did not have to be reported previously are now required to be presented as an asset and liability on the balance sheet. In addition, for certain leases, what was previously classified as an operating expense must now be allocated between amortization expense and interest expense. The Company adopted this update as of January 1, 2019 using the modified retrospective transition method. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 3 - PROPERTY AND EQUIPMENT Property and equipment and related depreciation for the period are as follows: December 31, 2021 December 31, 2020 Machinery and equipment $ 142,752 $ 142,752 Furniture and fixtures 2,697 2,697 Computer and office equipment 2,390 2,390 Leasehold improvements 10,164 10,164 Accumulated depreciation (158,003 ) (158,003 ) Total Property and Equipment $ - $ - Depreciation expense for the years ended December 31, 2021, and 2020, was $-0- and $-0-, respectively. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2021 | |
Inventory, Net [Abstract] | |
INVENTORIES | NOTE 4 - INVENTORIES Inventories consisted of the following at December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Finished goods $ 342,835 $ 202,890 Raw materials 387,695 341,760 Inventory allowance (106,044 ) (106,044 ) Total Inventories, net $ 624,486 $ 438,606 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 5 - COMMITMENTS AND CONTINGENCIES Operating Lease Obligations The Company leases its office and warehouse space under a non-cancelable lease agreement accounted for as operating leases. The Company also leases an automobile under a similar non-cancelable lease agreement, which is also accounted for as an operating lease. Building Lease - Orem, Utah: The Company leases a manufacturing and office facility with 6,000 square feet of space. We lease this facility at $4,999 per month on a lease with an expiration date of November 30, 2023. Rent expense relating to the building lease was $59,684 and $40,492 for the years ended December 31, 2021, and 2020, respectively. Automobile Lease – The Company currently leases one vehicle with a monthly lease payment of $629 per month. The automobile lease expired on July 7, 2021. Automobile lease expense was $7,548 and $7,548 for the years ended December 31, 2021, and 2020, respectively. 37 Minimum rental payments under the non-cancelable operating leases are as follows: Years ending December 31, Amount 2022 $ 61,091 2023 58,920 $ 120,011 |
PREFERRED STOCK
PREFERRED STOCK | 12 Months Ended |
Dec. 31, 2021 | |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
PREFERRED STOCK | NOTE 6 - PREFERRED STOCK In November 2004 the Company amended its Articles of Incorporation so as to authorize 5,000,000 shares of preferred stock. Of this total, 750,000 shares have been designated as “Series A Convertible Preferred Stock”. As of December 31, 2021 and 2020, no shares of the preferred stock are issued and outstanding. Dividends The holders of the Series A Preferred Stock would be entitled to dividends at the rate of 8 percent per year of the liquidation preference of $1.00 per share, payable annually, if and when declared by the board of directors. Dividends are not cumulative, and the board of directors is under no obligation to declare dividends. Convertibility The Series A Preferred Stock may be convertible into the Company’s common stock by dividing $1.00 plus any unpaid dividends by 50% of the five day average closing bid price of the common shares. |
COMMON STOCK TRANSACTIONS
COMMON STOCK TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
COMMON STOCK TRANSACTIONS | NOTE 7 - COMMON STOCK TRANSACTIONS During the years ended December 31, 2021 and 2020, the following stock transactions occurred: In December 2021, the Board of Directors approved the issuance of 1,000,000 shares of restricted common stock to its patent attorney. Of the grant, 250,000 shares vested on the grant date, for which a charge of $27,500 was recorded in 2021. An additional 250,000 shares will vest on the next three anniversary dates with the appropriate expenses charged to each of those periods. |
CONCENTRATIONS OF RISK
CONCENTRATIONS OF RISK | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF RISK | NOTE 8 - CONCENTRATIONS OF RISK Cash in Excess of Federally Insured Amount While the Company, at December 31, 2021 and at various other times during 2021 and 2020 had cash balances that exceed the $250,000 FDIC insurance limit per depositor per banking institution. There were $1,223,924 and $392,542 on deposit at December 31, 2021 and 2020, respectively. The Company has not experienced any losses in these accounts and believes it is not exposed to any significant credit risk with respect to its cash balances. Sales and Accounts Receivable The Company has four major customers who represent a significant portion of revenue. These four customers represented 45% and 24% of total sales revenue for the year ended December 31, 2021 and 2020, respectively. At December 31, 2021 and 2020, accounts receivable balances from these customers represent 70% and 78% respectively, of the total receivables. The Company has strong relationships with each of these customers and does not believe this concentration poses a significant risk due to those long-term relationships and uniqueness of the products they purchase from the Company. We have identified primary and secondary sources for each of the products we purchase for resale and for the raw materials we use to manufacture our products, so do not anticipate any difficulty in filling the orders placed by our customers. |
LINE OF CREDIT
LINE OF CREDIT | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
LINE OF CREDIT | NOTE 9 - LINE OF CREDIT The Company has a credit line with a commercial bank of $100,000 secured by its inventory and accounts receivable bearing a variable interest rate, which was 5.50% as of the balance sheet date, and automatically renews so long as the Company is in compliance with the loan covenants. As of December 31, 2021, there was $-0- drawn against that line of credit, leaving an available balance of $100,000. The line automatically renews on April 1 of each year and the $100,000 credit amount was available at December 31, 2021. The Company applied for and received $111,265 in loans under the Small Business Administration PPP loan program. When it was announced that applications were being accepted requesting forgiveness of these loans the Company completed that application process. On January 7, 2021 the Company received notice that their application had been approved and the principal and all accrued interest was forgiven. Accordingly a gain of $111,265 was recognized and recorded as other income in 2021. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 10 - INCOME TAXES The provision (benefit) for income taxes for the years ended December 31, 2021 and 2020 consist of the following: 2021 2020 Federal: Current $ - $ - Deferred - - State: Current - - Deferred - - Valuation allowance - - $ - $ - Net deferred tax assets consist of the following components as of December 31, 2021 and 2020: 2021 2020 Deferred tax assets (liabilities): NOL Carryover $ 2,853,471 $ 3,050,675 Property and Equipment (30,307 ) (76,011 ) Other Reserves (19,694 ) 3,193 Valuation Allowance (2,803,470 ) (2,977,857 ) Net deferred tax asset (liability) $ - $ - The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended December 31, 2021 and 2020 due to the following: 2021 2020 Tax at statutory rate: $ 197,204 $ 136,711 Effects of: Meals and Entertainment 3,672 3,769 Depreciation and Amortization (30,307 ) (76,011 ) Other, net (23,366 ) (576 ) Change in Valuation Allowance (147,203 ) (63,893 ) $ - $ - 39 At December 31, 2021, the Company had net operating loss carryforwards of approximately $7,061,603 that may be offset against future income from the year 2021 through 2039. No tax benefit has been reported in the December 31, 2021 consolidated financial statements since the potential tax benefit is offset by a valuation allowance of the same amount. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 12 - RELATED PARTY TRANSACTIONS There were no related party transactions in the years ended December 31, 2021 and 2020. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 13 - SUBSEQUENT EVENTS None. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Accounting Method | a. Accounting Method The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. |
Revenue Recognition | b. Revenue Recognition We sell our specialty science and environmental lab supplies through direct sales and through distributor relationships. We sell our ultra-low temperature freezers through consultants and commission-only sales personnel. Revenue is recognized when a customer obtains control of promised goods based on the consideration we expect to receive in exchange for these goods. This core principle is achieved through the following steps: Identify the contract with the customer Identify the performance obligations in the contract Ultra-low temperature freezers sold to customers are built to order. Generally, 50% of the value of the contract is paid by the customer prior to work beginning on manufacturing the freezer. Upon completion of manufacturing and testing the customer will then sign an acceptance of the unit and make payment of the remaining balance on the contract, at which title passes to the customer. The units are FOB ship point. The customer may either arrange to transport the unit with a carrier he uses or ask the Company to arrange such shipment, the charges of which are the responsibility of the customer. A customer may, after accepting the unit, request that it be upgraded with additional hardware or software options. Those options are installed under a new contract, with the deposit and final payment requirements being the same as on the original order. 33 Determine the transaction price Allocate the transaction price to performance obligations in the contract Recognize revenue when or as we satisfy a performance obligation. Contract Balances A part of our customer base is made up of international customers. The following table presents Reflect Scientific revenues disaggregated by region and product type: December 31, 2021 December 31, 2020 Segments Consumer Products Total Consumer Products Total Domestic $ 1,786,437 1,786,437 $ 2,173,209 2,173,209 International 1,028,233 1,028,233 619,414 619,414 $ 2,814,670 2,814,670 $ 2,792,623 2,792,623 Components 904,490 904,490 $ 842,161 842,161 Chillers/Freezers 1,910,180 1,910,180 1,950,462 1,950,462 $ 2,814,670 2,814,670 $ 2,792,623 2,792,623 |
Estimates | c. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash | d. Cash The Company considers all deposit accounts and investment accounts with an original maturity of 90 days or less to be cash equivalents. |
Accounts Receivable | e. Accounts Receivable The Company maintains an allowance for doubtful accounts to provide for losses arising from customers’ inability to make required payments. If there is deterioration of our customers’ credit worthiness and/or there is an increase in the length of time that the receivables are past due greater than the historical assumptions used, additional allowances may be required. The Company estimates allowance for doubtful accounts based on the aged receivable balances and historical losses. The Company charges off uncollectible accounts when management determines there is no possibility of collecting the related receivable. The Company considers accounts receivable to be past due or delinquent based on contractual terms, which is generally net 30 days. 34 The Company charged $0 and $0, respectively, to bad debt expense for the years ended December 31, 2021 and 2020. As the Company has historically experienced minimal bad debts, management feels the allowance for doubtful accounts balance of $4,000 at December 31, 2021 to be an adequate reserve based on the experience seen over multiple years. The Company maintains an allowance for doubtful accounts to provide for losses arising from customers’ inability to make required payments. If there is deterioration of our customers’ credit worthiness and/or there is an increase in the length of time that the receivables are past due greater than the historical assumptions used, additional allowances may be required. |
Property and Equipment | f. Property and Equipment Property and equipment are stated at cost. Expenditure for minor repairs, maintenance, and replacement parts which do not increase the useful lives of the assets are charged to expense as incurred. All major additions and improvements are capitalized. Depreciation is computed using the straight-line method. The lives over which the property and equipment are depreciated range from 5 to 7 years, except for computer equipment, which is depreciated over a 3-year life. |
Inventories | g. Inventories Inventories 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 the imaging and inspection systems which it builds, and other scientific items. An allowance is recorded when it is determined that the amount owing is at high risk. The Company recorded $106,044 and $106,044 in the inventory allowance for the years 2021 and 2020, respectively. |
Cost of Sales | h. Cost of Sales Charges to cost of sales are made on a first-in first-out method (FIFO). In addition to the component costs, some labor costs are allocated to cost of goods for the direct labor utilized to build the sub-assemblies and finished goods. |
Advertising Expense | i. Advertising Expense The Company follows the policy of charging the costs of advertising to expense as incurred. The Company recognized $21,971 and $22,175 of advertising expense during the years ended December 31, 2021, and 2020, respectively. |
Newly Issued Accounting Pronouncements | j. Newly Issued Accounting Pronouncements The Company has reviewed all FASB-issued ASU accounting pronouncements and interpretations thereof that have effective dates during the period reported and in future periods. The Company has carefully considered the new pronouncements that alter previous GAAP and does not believe that any new or modified principles will have a material impact on the company’s reported financial position or operations in the near term. The applicability of any standard is subject to the formal review of the Company’s financial management and certain standards are under consideration. |
Earnings Per Share | k. Earnings per Share The computation of basic earnings 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 December 31, 2021 and 2020, the Company had no common stock equivalents. For the year ended December 31, 2021 For the year ended December 31, 2020 Net income (numerator) $ 939,065 $ 660,115 Shares (denominator) 84,739,770 84,739,086 Net earnings per share amount - basic $ 0.01 $ 0.04 Shares (denominator) 84,739,770 84,739,086 Net earnings per share amount - diluted $ 0.01 $ 0.01 |
Shipping and Handling Fees and Costs | l. Shipping and Handling Fees and Costs The Company records all shipping and handling costs as operating costs. Freight paid on outgoing shipments in 2021 and 2020 was $122,677 and $81,089, respectively, and is recorded in general and administrative expense. |
Income Taxes | m. Income Taxes Deferred taxes are provided on an asset and liability approach whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company’s policy is to recognize potential interest and penalties accrued related to unrecognized tax benefits within income tax expense. For the years ended December 31, 2021 and 2020, it did not recognize any interest or penalties in its Statement of Operations, nor did it have any interest or penalties accrued in its Balance Sheet at December 31, 2021 and 2020 relating to unrecognized benefits. |
Principles of Consolidation | n. Principles of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries, which include Cryometrix (previously Cryomastor). All subsidiaries are wholly owned. All material intercompany accounts and transactions are eliminated in consolidation. |
Research and Development Expense | o. Research and development expense 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. The Company had $58,340 and $185,295 in research and product development for the years ended December 31, 2021 and 2020, respectively. |
Stock Based Compensation | p. Stock-Based Compensation The Company, in accordance with ASC 718, Compensation – Stock Compensation Measurement Objective – Fair Value at Grant Date |
Intangible Assets | q. Intangible Assets Intangible assets include trademarks, trade secrets, patents, customer lists and goodwill acquired through acquisition of subsidiaries. The patents have been registered with the United States Patent and Trademarks Office. The costs of obtaining patents are capitalized as incurred. Intangibles, except for goodwill, are amortized over their estimated useful lives. The Company regularly evaluates whether events or circumstances have occurred that indicate possible impairment and relies on a number of factors, including operating results, business plans, economic projections, and anticipated future cash flows. The Company uses an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life in measuring whether the assets are recoverable. Measurement of the amount of impairment, if any, is based upon the difference between the asset’s carrying value and estimated fair value. Fair value is determined through various valuation techniques, including cost-based, market and income approaches as considered necessary. |
Goodwil | r. Goodwill Goodwill represents the excess of the JMST assets acquired over the fair value of net assets acquired. Goodwill is not amortized but instead is tested for impairment, at a reporting unit level, annually and when events and circumstances warrant an evaluation. The Company evaluates goodwill on an annual basis, as of the end of the fourth quarter, and whenever events and changes in circumstances indicate that there may be a potential impairment. In making this assessment, management relies on a number of factors, including operating results, business plans, economic projections, anticipated future cash flows, business trends and market conditions. Accordingly, the Company recorded on impairment of goodwill for the years ended December 31, 2021 and 2020. |
Leases | s. Leases In February of 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-02 - Leases (Topic 842), which significantly amends the way companies are required to account for leases. Under the updated leasing guidance, some leases that did not have to be reported previously are now required to be presented as an asset and liability on the balance sheet. In addition, for certain leases, what was previously classified as an operating expense must now be allocated between amortization expense and interest expense. The Company adopted this update as of January 1, 2019 using the modified retrospective transition method. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Disaggregated Revenues | A part of our customer base is made up of international customers. The following table presents Reflect Scientific revenues disaggregated by region and product type: December 31, 2021 December 31, 2020 Segments Consumer Products Total Consumer Products Total Domestic $ 1,786,437 1,786,437 $ 2,173,209 2,173,209 International 1,028,233 1,028,233 619,414 619,414 $ 2,814,670 2,814,670 $ 2,792,623 2,792,623 Components 904,490 904,490 $ 842,161 842,161 Chillers/Freezers 1,910,180 1,910,180 1,950,462 1,950,462 $ 2,814,670 2,814,670 $ 2,792,623 2,792,623 |
Schedule of Earnings Per Share | For the year ended December 31, 2021 For the year ended December 31, 2020 Net income (numerator) $ 939,065 $ 660,115 Shares (denominator) 84,739,770 84,739,086 Net earnings per share amount - basic $ 0.01 $ 0.04 Shares (denominator) 84,739,770 84,739,086 Net earnings per share amount - diluted $ 0.01 $ 0.01 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of PROPERTY AND EQUIPMENT | Property and equipment and related depreciation for the period are as follows: December 31, 2021 December 31, 2020 Machinery and equipment $ 142,752 $ 142,752 Furniture and fixtures 2,697 2,697 Computer and office equipment 2,390 2,390 Leasehold improvements 10,164 10,164 Accumulated depreciation (158,003 ) (158,003 ) Total Property and Equipment $ - $ - |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory, Net [Abstract] | |
Schedule of Inventories | Inventories consisted of the following at December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Finished goods $ 342,835 $ 202,890 Raw materials 387,695 341,760 Inventory allowance (106,044 ) (106,044 ) Total Inventories, net $ 624,486 $ 438,606 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Minimum rental payments under the non-cancelable operating leases are as follows: Years ending December 31, Amount 2022 $ 61,091 2023 58,920 $ 120,011 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes for the years ended December 31, 2021 and 2020 consist of the following: 2021 2020 Federal: Current $ - $ - Deferred - - State: Current - - Deferred - - Valuation allowance - - $ - $ - |
Schedule of Deferred Tax Assets | Net deferred tax assets consist of the following components as of December 31, 2021 and 2020: 2021 2020 Deferred tax assets (liabilities): NOL Carryover $ 2,853,471 $ 3,050,675 Property and Equipment (30,307 ) (76,011 ) Other Reserves (19,694 ) 3,193 Valuation Allowance (2,803,470 ) (2,977,857 ) Net deferred tax asset (liability) $ - $ - |
Schedule of Pretax Income from Continuing Operations | The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended December 31, 2021 and 2020 due to the following: 2021 2020 Tax at statutory rate: $ 197,204 $ 136,711 Effects of: Meals and Entertainment 3,672 3,769 Depreciation and Amortization (30,307 ) (76,011 ) Other, net (23,366 ) (576 ) Change in Valuation Allowance (147,203 ) (63,893 ) $ - $ - |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Contract liabilities related to customer deposits | $ 118,566 | $ 113,643 |
Bad debt expense | 0 | 0 |
Allowance for doubtful accounts | 4,000 | |
Increase in inventory allowance | 106,044 | 106,044 |
Advertising expense | 21,971 | 22,175 |
Shipping and Handling Fees and Costs | 122,677 | 81,089 |
Research and development expense | $ 58,340 | $ 185,295 |
Property Plant and Equipment [Member] | Minimum [Member] | ||
Estimated useful lives | 5 years | |
Property Plant and Equipment [Member] | Maximum [Member] | ||
Estimated useful lives | 7 years | |
Computer Equipment [Member] | ||
Estimated useful lives | 3 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Disaggregated Revenues) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 2,814,670 | $ 2,792,623 |
Consumer Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 2,814,670 | 2,792,623 |
Domestic [Member] | Consumer Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1,786,437 | 2,173,209 |
International [Member] | Consumer Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1,028,233 | 619,414 |
Components [Member] | Consumer Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 904,490 | 842,161 |
Chillers/Freezers [Member] | Consumer Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 1,910,180 | $ 1,950,462 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Earnings Per Share) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Net income (numerator) | $ 939,065 | $ 660,115 |
Shares (denominator) | 84,739,770 | 84,739,086 |
Net earnings per share amount - basic | $ 0.01 | $ 0.04 |
Shares (denominator) | 84,739,770 | 84,739,086 |
Net earnings per share amount - diluted | $ 0.01 | $ 0.01 |
PROPERTY AND EQUIPMENT (Schedul
PROPERTY AND EQUIPMENT (Schedule of Fixed Assets) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | $ (158,003) | $ (158,003) |
Total Fixed Assets | ||
Depreciation expense | 0 | 0 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets gross | 142,752 | 142,752 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets gross | 2,697 | 2,697 |
Computer and office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets gross | 2,390 | 2,390 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets gross | $ 10,164 | $ 10,164 |
INVENTORIES (Schedule of Invent
INVENTORIES (Schedule of Inventories) (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory, Net [Abstract] | ||
Finished goods | $ 342,835 | $ 202,890 |
Raw Materials | 387,695 | 341,760 |
Inventory allowance | (106,044) | (106,044) |
Total Inventory, net | $ 624,486 | $ 438,606 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)ft² | Dec. 31, 2020USD ($) | |
Operating leases rent expense | $ 59,684 | $ 40,492 |
Automobile lease 1 monthly payment | 629 | |
Automobile lease expense | $ 7,548 | $ 7,548 |
Building [Member] | ||
Area of lease | ft² | 6,000 | |
Operating leases rent expense | $ 4,999 | |
Lease expiration date | Nov. 30, 2023 | |
Automobile [Member] | ||
Lease expiration date | Jul. 7, 2021 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Schedule of Minimum Rental Payments of Operating Leases) (Details) | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 61,091 |
2023 | 58,920 |
Total lease payments | $ 120,011 |
PREFERRED STOCK (Details)
PREFERRED STOCK (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||
Preferred stock shares authorized | 5,000,000 | 5,000,000 |
Preferred stock conversion basis | The Series A Preferred Stock may be convertible into the Company’s common stock by dividing $1.00 plus any unpaid dividends by 50% of the five day average closing bid price of the common shares. | |
Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock shares authorized | 750,000 | |
Preferred of stock dividend rate | 8.00% | |
Preferred Stock, Liquidation Preference Per Share | $ 1 |
COMMON STOCK TRANSACTIONS (Deta
COMMON STOCK TRANSACTIONS (Details) - Board of Directors [Member] - Restricted common stock [Member] | 1 Months Ended |
Dec. 31, 2021USD ($)shares | |
Conversion of Stock [Line Items] | |
Issuance of shares of restricted common stock, shares | 1,000,000 |
Shares vested | 250,000 |
Share isuance costs | $ | $ 27,500 |
Next three anniversary dates [Member] | |
Conversion of Stock [Line Items] | |
Shares vested | 250,000 |
CONCENTRATIONS OF RISK (Details
CONCENTRATIONS OF RISK (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | ||
Cash balances of FDIC insurance | $ 250,000 | $ 250,000 |
Limit per depositor per banking institution | $ 1,223,924 | $ 392,542 |
Four customers [Member] | Sales revenue [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk sales revenue | 45.00% | 24.00% |
Four customers [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk sales revenue | 70.00% | 78.00% |
LINE OF CREDIT (Details)
LINE OF CREDIT (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Proceeds from secured lines of credit | $ 100,000 | |
Interest rate | 5.50% | |
Lines of credit | $ 0 | |
Balance of line of credit | 100,000 | |
Proceeds from loans - PPP Loan | 111,265 | |
Gain on forgiveness of debt - PPP loan | $ 111,265 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) | Dec. 31, 2021USD ($) |
Income Tax Disclosure [Abstract] | |
Operating loss carryforwards | $ 7,061,603 |
INCOME TAXES (Schedule of Compo
INCOME TAXES (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Federal: | ||
Current | ||
Deferred | ||
State: | ||
Current | ||
Deferred | ||
Valuation allowance | ||
Income tax benefit (provision) |
INCOME TAXES (Schedule of Defer
INCOME TAXES (Schedule of Deferred Tax Assets) (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets (liabilities): | ||
NOL Carryover | $ 2,853,471 | $ 3,050,675 |
Property and Equipment | (30,307) | (76,011) |
Other Reserves | (19,694) | 3,193 |
Valuation Allowance | (2,803,470) | (2,977,857) |
Net deferred tax asset (liability) |
INCOME TAXES (Schedule of Preta
INCOME TAXES (Schedule of Pretax Income from Continuing Operations) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Tax at statutory rate: | $ 197,204 | $ 136,711 |
Effects of: | ||
Meals and Entertainment | 3,672 | 3,769 |
Depreciation and Amortization | (30,307) | (76,011) |
Other, net | (23,366) | (576) |
Change in Valuation Allowance | (147,203) | (63,893) |
Income tax benefit (provision) |