Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 24, 2023 | Jun. 30, 2022 | |
Document Information Line Items | |||
Entity Registrant Name | REFLECT SCIENTIFIC, INC. | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 85,214,086 | ||
Entity Public Float | $ 4.3 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001103090 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 000-31377 | ||
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 | ||
Title of 12(b) Security | None | ||
Entity Interactive Data Current | Yes | ||
Auditor Firm ID | 3627 | ||
Auditor Name | Sadler, Gibb & Associates, LLC | ||
Auditor Location | Draper, UT |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 1,381,927 | $ 1,473,924 |
Accounts receivable, net | 129,329 | 175,649 |
Inventories, net | 797,352 | 624,486 |
Prepaid expenses and other current assets | 20,221 | 31,306 |
Total Current Assets | 2,328,829 | 2,305,365 |
Operating lease right-of-use assets | 54,265 | 110,483 |
Goodwill | 60,000 | 60,000 |
Other long-term assets | 3,100 | 3,100 |
TOTAL ASSETS | 2,446,194 | 2,478,948 |
Current Liabilities | ||
Accounts payable and accrued expenses | 78,969 | 66,837 |
Customer deposits | 13,230 | 118,566 |
Current portion of operating lease liabilities | 57,393 | 56,446 |
Total Current Liabilities | 149,592 | 241,849 |
Operating lease liabilities, net of current portion | 57,393 | |
TOTAL LIABILITIES | 149,592 | 299,242 |
Stockholders' Equity | ||
Preferred Stock, $0.01 par value, 5,000,000 shares authorized; none issued and outstanding | ||
Common stock, $0.01 par value, 100,000,000 shares authorized; 85,214,086 and 84,989,086 shares issued and outstanding as of December 31, 2022 and 2021, respectively | 852,140 | 849,890 |
Additional paid-in capital | 20,252,181 | 20,226,931 |
Accumulated deficit | (18,807,719) | (18,897,115) |
TOTAL STOCKHOLDERS’ EQUITY | 2,296,602 | 2,179,706 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 2,446,194 | $ 2,478,948 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 85,214,086 | 84,989,086 |
Common stock, shares outstanding | 85,214,086 | 84,989,086 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||
Revenues | $ 2,041,297 | $ 2,814,670 |
Cost of goods sold | 822,147 | 884,066 |
Gross profit | 1,219,150 | 1,930,604 |
Operating Expenses | ||
Salaries and wages | 636,038 | 608,065 |
General and administrative | 419,589 | 436,399 |
Research and development | 73,425 | 58,340 |
Total Operating Expenses | 1,129,052 | 1,102,804 |
INCOME FROM OPERATIONS | 90,098 | 827,800 |
Other Income | ||
Gain on forgiveness of debt | 111,265 | |
Total Other Income | 111,265 | |
NET INCOME BEFORE INCOME TAXES | 90,098 | 939,065 |
INCOME TAX EXPENSE | (702) | |
NET INCOME | $ 89,396 | $ 939,065 |
Earnings per common share | ||
Basic (in Dollars per share) | $ 0 | $ 0.01 |
Diluted (in Dollars per share) | $ 0 | $ 0.01 |
Weighted average shares outstanding | ||
Basic (in Shares) | 84,990,935 | 84,739,770 |
Diluted (in Shares) | 85,440,935 | 85,489,770 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) | Common Shares | Additional Paid-In Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2020 | $ 847,390 | $ 20,201,931 | $ (19,836,180) | $ 1,213,141 |
Balance (in Shares) at Dec. 31, 2020 | 84,739,086 | |||
Stock-based compensation | 27,500 | 27,500 | ||
Common stock issued in vesting of RSUs | $ 2,500 | (2,500) | ||
Common stock issued in vesting of RSUs (in Shares) | 250,000 | |||
Net income (loss) | 939,065 | 939,065 | ||
Balance at Dec. 31, 2021 | $ 849,890 | 20,226,931 | (18,897,115) | 2,179,706 |
Balance (in Shares) at Dec. 31, 2021 | 84,989,086 | |||
Stock-based compensation | 27,500 | 27,500 | ||
Common stock issued in vesting of RSUs | $ 2,250 | (2,250) | ||
Common stock issued in vesting of RSUs (in Shares) | 225,000 | |||
Net income (loss) | 89,396 | 89,396 | ||
Balance at Dec. 31, 2022 | $ 852,140 | $ 20,252,181 | $ (18,807,719) | $ 2,296,602 |
Balance (in Shares) at Dec. 31, 2022 | 85,214,086 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 89,396 | $ 939,065 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Stock-based compensation | 27,500 | 27,500 |
Gain on forgiveness of debt | (111,265) | |
Amortization of right-of-use assets | 56,218 | 57,158 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 46,320 | 164,778 |
Inventories | (172,866) | (185,880) |
Prepaid expenses and other current assets | 11,085 | (7,172) |
Accounts payable and accrued expenses | 12,132 | (3,554) |
Customer deposits | (105,336) | 4,923 |
Operating lease liabilities | (56,446) | (54,181) |
Net cash (used in) provided by operating activities | (91,997) | 831,382 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Net cash provided by investing activities | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net cash provided by financing activities | ||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (91,997) | 831,382 |
CASH AND CASH EQUIVALENTS | ||
Beginning of the period | 1,473,924 | 642,542 |
End of the period | 1,381,927 | 1,473,924 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for interest | ||
Cash paid for income taxes | ||
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Common stock issued in vesting of RSUs | $ 2,250 | $ 2,500 |
Organization and Nature of Busi
Organization and Nature of Business | 12 Months Ended |
Dec. 31, 2022 | |
Organization and Nature of Business [Abstract] | |
ORGANIZATION AND NATURE OF BUSINESS | NOTE 1—ORGANIZATION AND NATURE 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. The Company 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-low 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, 2022 | |
Organization and Nature of Business [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and are presented in US dollars. Principles of Consolidation The consolidated financial statements of the Company include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP 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 revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. The Company maintains deposits in several financial institutions, which may at times exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporation (“FDIC”). The Company has not experienced any losses related to amounts in excess of FDIC limits. 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. Determine the transaction price Allocate the transaction price to performance obligations in the contract Recognize revenue when or as we satisfy a performance obligation We have elected to use the practical expedient in ASC 340-40-25-4 (regarding recognition of the incremental costs of obtaining a contact) for costs related to contracts that are estimated to be completed within one year. In other words, we do not have any material accrued contract costs; however, we do require customer deposits to be made on freezer purchases. As of December 31, 2022 and 2021, we have $13,230 and $118,566, respectively, of contract liabilities related to these customer deposits and no contract assets. Cost of Revenue The Company includes product costs (i.e., material, direct labor and overhead costs), shipping and handling expense, and production-related expenses in cost of revenues. 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. The allowance for doubtful accounts amounted to $4,000 for the years ended December 31, 2022 and 2021. 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 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. The Company values inventory at each balance sheet date to ensure that it is carried at the lower of cost or net realizable value with cost determined based on the average cost basis. The Company periodically evaluates the value of items in inventory and provides write-downs to inventory based on its estimate of market conditions. The Company estimated an obsolescence allowance of $106,044 at December 31, 2022 and 2021. Goodwill Goodwill represents the excess of purchase price over the fair value of the net assets acquired. We evaluate goodwill for impairment annually, or more frequently if an event occurs or circumstances that indicate the goodwill is not recoverable. When impairment indicators are identified, we may elect to perform an optional qualitative assessment to determine whether it is more likely than not that the fair value of our reporting units has fallen below their carrying value. This assessment is based on several factors, including industry and market conditions, overall financial performance, including an assessment of cash flows in comparison to actual and projected results of prior periods. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value based on our qualitative analysis, or if we elect to skip this step, we perform a Step 1 quantitative analysis to determine the fair value of the reporting unit. At December 31, 2022 and 2021, there were no impairments of goodwill. Impairment of Long-Lived Assets The Company reviews its right-of-use (“ROU”) assets and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. The test for impairment is required to be performed by management upon triggering events. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flow expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. At December 31, 2022 and 2021, there were no impairments of long-lived assets. Leases The Company accounts for leases in accordance with ASC Topic 842, “Leases.” The Company determines whether a contract is a lease at contract inception or for a modified contract at the modification date. At inception or modification, the Company recognizes ROU assets and related lease liabilities on the balance sheet for all leases greater than one year in duration. Lease liabilities and their corresponding ROU assets are initially measured at the present value of the unpaid lease payments as of the lease commencement date. If the lease contains a renewal and/or termination option, the exercise of the option is included in the term of the lease if the Company is reasonably certain that a renewal or termination option will be exercised. As the Company’s leases do not provide an implicit rate, the Company uses an estimated incremental borrowing rate (“IBR”) based on the information available at the commencement date of the respective lease to determine the present value of future payments. The IBR is determined by estimating what it would cost the Company to borrow a collateralized amount equal to the total lease payments over the lease term based on the contractual terms of the lease and the location of the leased asset. Operating lease payments are recognized as an expense on a straight-line basis over the lease term in equal amounts of rent expense attributed to each period during the term of the lease, regardless of when actual payments are made. This generally results in rent expense in excess of cash payments during the early years of a lease and rent expense less than cash payments in later years. The difference between rent expense recognized and actual rental payments is typically represented as the spread between the ROU asset and lease liability. When calculating the present value of minimum lease payments, we account for leases as one single lease component if a lease has both lease and non-lease fixed cost components. Variable lease and non-lease cost components are expensed as incurred. We do not recognize ROU assets and lease liabilities for short-term leases that have an initial lease term of 12 months or less. We recognize the lease payments associated with short-term leases as an expense on a straight-line basis over the lease term. Fair Value of Financial Instruments The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined in the following three categories: Level 1: Unadjusted quoted prices that are available in active markets for identical assets or liabilities at the measurement date. Level 2: Significant other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly. Level 3: Significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. Cash, receivables, inventory, prepaid expenses, accounts payable, accrued expenses, and customer deposits approximate fair value, due to their short-term nature. Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to long-lived assets and goodwill, which are remeasured when the derived fair value is below carrying value in the consolidated balance sheets. Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is calculated by adjusting the weighted average number of shares of common stock outstanding for the dilutive effect, if any, of common stock equivalents. Common stock equivalents whose effect would be antidilutive are not included in diluted earnings per share. The Company uses the treasury stock method to determine the dilutive effect, which assumes that all common stock equivalents have been exercised at the beginning of the period and that the funds obtained from those exercises were used to repurchase shares of common stock of the Company at the average closing market price during the period. Stock-Based Compensation We recognize the fair value compensation cost relating to stock-based payment transactions in accordance with ASC Topic 718, “Share-Based Payments,”. Under the provisions of ASC 718, stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized on a straight-line basis over the employee’s requisite service period, which is generally the vesting period. Restricted stock awards are valued based on the closing stock price on the date of grant (intrinsic value method). The Company has elected to recognize forfeitures as they occur. Research and Development Expense In accordance with ASC 730, the Company follows the policy of expensing its research and development costs in the period in which they are incurred. The Company incurred research and development expenses of $73,425 and $58,340 during the years ended December 31, 2022 and 2021, respectively. Advertising and Marketing Expense Costs for advertising and marketing are expensed as incurred. Advertising and marketing expense for the years ended December 31, 2022 and 2021 was $77,311 and $21,971, respectively. Income Taxes Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted ASC 740, “Accounting for Income Taxes” as of its inception. Pursuant to ASC 740, the Company is required to compute tax asset benefits for net operating losses carried forward. The potential benefits of net operating losses have not been recognized in these consolidated financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years. Impact of COVID-19 In December 2019, a novel strain of coronavirus (“COVID-19”) emerged in China. On March 11, 2020, the World Health Organization declared the outbreak of COVID-19 a pandemic. The extent of the COVID-19 pandemic’s continued effect on our operational and financial performance and those of third parties on which the Company relies will depend on future developments, including the duration, spread and intensity of the outbreak, the pace at which jurisdictions across the country re-open and restrictions begin to lift. The ultimate impact of the COVID-19 pandemic is highly uncertain and subject to change. The Company does not yet know the full extent of potential impacts on its business and financing. However, these effects could have a material impact on the Company’s liquidity, capital resources, operations and business and those of the third parties on which the Company relies. Recent Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s condensed consolidated financial statements. In June 2016, the FASB issued ASU 2016-13 Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019. This pronouncement was amended under ASU 2019-10 to allow an extension on the adoption date for entities that qualify as a small reporting company. The Company has elected this extension and the effective date for the Company to adopt this standard will be for fiscal years beginning after December 15, 2022. The Company has not completed its assessment of the standard but does not expect the adoption to have a material impact on the Company’s consolidated financial statements and related disclosures. In October 2021, the FASB issued ASU 2021-08 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU amends ASC 805 to require acquiring entities to apply ASC 606 to recognize and measure contract assets and contract liabilities in business combinations. The ASU is effective for public entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption is permitted. The Company has not completed its assessment of the standard but does not expect the adoption to have a material impact on the Company’s consolidated financial statements and related disclosures. In November 2021, the FASB issued ASU 2021-10, Disclosures by Business Entities about Government Assistance. The FASB is issuing this Update to increase the transparency of government assistance including the disclosure of (1) the types of assistance, (2) an entity’s accounting for the assistance, and (3) the effect of the assistance on an entity’s financial statements. The ASU was effective for annual reporting periods after January 1, 2022. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements and related disclosures. |
Disaggregation of Revenues
Disaggregation of Revenues | 12 Months Ended |
Dec. 31, 2022 | |
Disaggregation of Revenues Disclosure [Abstract] | |
DISAGGREGATION OF REVENUES | NOTE 3—DISAGGREGATION OF REVENUES Our revenue is disaggregated based on product category and geographical region. We recognize revenue from the sale of scientific equipment for the life sciences and manufacturing industries. Our products range from non-mechanical Cyrometrix freezers, chillers, and original equipment manufacturer (“OEM”) value-added products and components for the life sciences industry. The Company’s revenues for the years ended December 31, 2022 and 2021 are disaggregated as follows: Years Ended December 31, 2022 United States International Total Revenues Freezers and chillers $ 793,953 $ 262,001 $ 1,126,428 OEM and other 722,194 263,149 914,869 Total Revenues $ 1,516,147 $ 525,150 $ 2,041,297 Years Ended December 31, 2021 United States International Total Revenues Freezers and chillers $ 1,047,363 $ 357,739 $ 1,502,437 OEM and other 739,074 670,494 1,312,233 Total Revenues $ 1,786,437 $ 1,028,233 $ 2,814,670 Service revenue of $70,474 and $97,335 are included in OEM and other revenues for the years ended December 31, 2022 and 2021, respectively. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventories [Abstract] | |
INVENTORIES | NOTE 4—INVENTORIES Inventories at December 31, 2022 and 2021 consisted of the following: December 31, 2022 December 31, 2021 Finished goods $ 376,334 $ 342,835 Raw materials 527,062 387,695 Total inventories 903,396 730,530 Less reserve for obsolescence (106,044 ) (106,044 ) Total inventories, net $ 797,352 $ 624,486 Inventory balances are composed of finished goods. Raw materials and work in process inventory are immaterial to the consolidated financial statements. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | NOTE 5—LEASES The following was included in our consolidated balance sheet at December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Operating lease right-of-use assets $ 54,265 $ 110,483 Lease liabilities, current portion 57,393 56,446 Lease liabilities, long-term - 57,393 Total operating lease liabilities $ 57,393 $ 113,839 Weighted-average remaining lease term (months) 11 23 Weighted average discount rate 5.25% 5.25% Total lease expense for the years ended December 31, 2022 and 2021 are as follows: Years Ended December 31, 2022 2021 Operating lease expense $ 60,864 $ 60,864 Variable lease expense 6,457 6,368 Total lease expense $ 67,321 $ 67,232 As of December 31, 2022, maturities of operating lease liabilities were as follows: Year Ending December 31, Amount 2023 $ 58,920 Less: imputed interest (1,527 ) Total operating lease liabilities $ 57,393 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Payable and Accrued Expenses Disclosure [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | NOTE 6—ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses at December 31, 2022 and 2021 consisted of the following: December 31, December 31, Trade accounts payable $ 55,011 $ 44,229 Credit cards payable 23,958 22,608 Total accounts payable and accrued expenses $ 78,969 $ 66,837 |
Concentrations of Risk
Concentrations of Risk | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF RISK | NOTE 7—CONCENTRATIONS OF RISK Cash in Excess of Federally Insured Amount During 2022 and 2021, the Company had cash balances that exceed the $250,000 FDIC insurance limit per depositor per banking institution. There were $1,131,927 and $1,223,924 on deposit that exceeded the FDIC limit at December 31, 2022 and 2021, 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. 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 9.75% 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, 2022 and 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, 2022 and 2021. Sales and Accounts Receivable The Company has four major customers who represent a significant portion of revenue. These four customers represented 51% and 45% of total sales revenue for the year ended December 31, 2022 and 2021, respectively. At December 31, 2022 and 2021, accounts receivable balances from these customers represent 71% and 70%, 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. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 8—STOCKHOLDERS’ EQUITY 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”. The following is a description of the rights of the Series A Convertible Preferred Stock: Dividends Conversion Rights As of December 31, 2022 and 2021, the Company had no Common Stock As of December 31, 2022 and 2021, the Company was authorized to issue 100,000,000 common shares. As of December 31, 2022 and 2021, the Company had 85,214,086 and 84,989,086 common shares issued and outstanding, respectively. Restricted Stock Awards On December 28, 2021, the Company granted 1,000,000 shares of restricted common stock to its patent attorney. The restricted stock vest over three years, with 250,000 shares vesting immediately on the grant date and 250,000 shares vesting on the next three anniversary dates. In December 2022, this issuance was modified from 1,000,000 shares of restricted common stock to 925,000 shares of restricted common stock. In accordance with ASC 718, the Company measured the incremental fair value, as the difference between the estimated fair value immediately after the modification as compared to the estimated fair value immediately before the modification, noting no increase in the incremental value. As of December 31, 2022, 475,000 shares have vested with an additional 225,000 shares to vest on each of the next two Below is a table summarizing the changes in restricted stock awards outstanding during the years ended December 31, 2022 and 2021: Restricted Stock Awards Weighted-Average Exercise Price Outstanding at December 31, 2020 - $ - Granted 1,000,000 0.11 Vested (250,000 ) (0.11 ) Outstanding at December 31, 2021 750,000 $ 0.11 Granted - - Modified (75,000 ) (0.11 ) Vested (225,000 ) (0.11 ) Outstanding at December 31, 2022 450,000 $ 0.11 Stock-based compensation expense of $27,500 was recorded during the years ended December 31, 2022 and 2021, respectively. As of December 31, 2022, the remaining unrecognized stock-based compensation expense related to non-vested restricted stock awards is $55,000 and is expected to be recognized over 2.0 years. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings (Loss) Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 9—EARNINGS PER SHARE The computation of weighted average shares outstanding and the basic and diluted earnings per share for the years ended December 31, 2022 and 2021 consisted of the following: Years Ended December 31, 2022 2021 Net income $ 89,396 $ 939,065 Weighted average shares outstanding 84,990,935 84,739,770 Basic earnings per share $ 0.00 $ 0.01 Weighted average shares outstanding 84,990,935 84,739,770 Effect on dilutive stock awards 450,000 750,000 Total potential shares outstanding 85,440,935 85,489,770 Diluted earnings per share $ 0.00 $ 0.01 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 10—INCOME TAXES The components of the provision for income taxes for the years ended December 31, 2022 and 2021, consisted of the following: December 31, 2022 December 31, 2021 Current Federal and State $ 702 $ - Deferred Federal and State - - Total (benefit) provision for income taxes $ 702 $ - Deferred income tax assets and liabilities at December 31, 2022 and 2021, consisted of the following temporary differences and carry-forward items: December 31, 2022 December 31, 2021 Deferred tax assets (liabilities) Loss carryforward $ 2,862,544 $ 2,853,471 Property and equipment (30,307 ) (30,307 ) Other (19,694 ) (19,694 ) Valuation Allowance (2,812,543 ) (2,803,470 ) Total net deferred income tax assets (liabilities) $ - $ - The difference between the income tax expense (benefit) reported and amounts computed by applying the statutory federal rate of 21.0% to pretax income for the years ended December 31, 2022 and 2021, consisted of the following: December 31, 2022 December 31, 2021 Federal tax $ 18,921 $ 197,204 Meals and entertainment 4,625 3,672 Charitable contributions 1,369 - Depreciation and amortization (33,988 ) (30,307 ) Other - (23,366 ) Change in valuation allowance 8,371 (147,203 ) Total (benefit) provision for income taxes $ 702 $ - At December 31, 2022, the Company had net operating loss carryforwards of approximately $7,360,431 that may be available to reduce future years’ taxable income indefinitely. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Organization and Nature of Business [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and are presented in US dollars. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements of the Company include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP 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 revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. The Company maintains deposits in several financial institutions, which may at times exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporation (“FDIC”). The Company has not experienced any losses related to amounts in excess of FDIC limits. |
Revenue Recognition | 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. Determine the transaction price Allocate the transaction price to performance obligations in the contract Recognize revenue when or as we satisfy a performance obligation We have elected to use the practical expedient in ASC 340-40-25-4 (regarding recognition of the incremental costs of obtaining a contact) for costs related to contracts that are estimated to be completed within one year. In other words, we do not have any material accrued contract costs; however, we do require customer deposits to be made on freezer purchases. As of December 31, 2022 and 2021, we have $13,230 and $118,566, respectively, of contract liabilities related to these customer deposits and no contract assets. |
Cost of Revenue | Cost of Revenue The Company includes product costs (i.e., material, direct labor and overhead costs), shipping and handling expense, and production-related expenses in cost of revenues. |
Accounts Receivable | 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. The allowance for doubtful accounts amounted to $4,000 for the years ended December 31, 2022 and 2021. |
Property and Equipment | 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 | Inventories 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. The Company values inventory at each balance sheet date to ensure that it is carried at the lower of cost or net realizable value with cost determined based on the average cost basis. The Company periodically evaluates the value of items in inventory and provides write-downs to inventory based on its estimate of market conditions. The Company estimated an obsolescence allowance of $106,044 at December 31, 2022 and 2021. |
Goodwill | Goodwill Goodwill represents the excess of purchase price over the fair value of the net assets acquired. We evaluate goodwill for impairment annually, or more frequently if an event occurs or circumstances that indicate the goodwill is not recoverable. When impairment indicators are identified, we may elect to perform an optional qualitative assessment to determine whether it is more likely than not that the fair value of our reporting units has fallen below their carrying value. This assessment is based on several factors, including industry and market conditions, overall financial performance, including an assessment of cash flows in comparison to actual and projected results of prior periods. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value based on our qualitative analysis, or if we elect to skip this step, we perform a Step 1 quantitative analysis to determine the fair value of the reporting unit. At December 31, 2022 and 2021, there were no impairments of goodwill. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews its right-of-use (“ROU”) assets and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. The test for impairment is required to be performed by management upon triggering events. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flow expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. At December 31, 2022 and 2021, there were no impairments of long-lived assets. |
Leases | Leases The Company accounts for leases in accordance with ASC Topic 842, “Leases.” The Company determines whether a contract is a lease at contract inception or for a modified contract at the modification date. At inception or modification, the Company recognizes ROU assets and related lease liabilities on the balance sheet for all leases greater than one year in duration. Lease liabilities and their corresponding ROU assets are initially measured at the present value of the unpaid lease payments as of the lease commencement date. If the lease contains a renewal and/or termination option, the exercise of the option is included in the term of the lease if the Company is reasonably certain that a renewal or termination option will be exercised. As the Company’s leases do not provide an implicit rate, the Company uses an estimated incremental borrowing rate (“IBR”) based on the information available at the commencement date of the respective lease to determine the present value of future payments. The IBR is determined by estimating what it would cost the Company to borrow a collateralized amount equal to the total lease payments over the lease term based on the contractual terms of the lease and the location of the leased asset. Operating lease payments are recognized as an expense on a straight-line basis over the lease term in equal amounts of rent expense attributed to each period during the term of the lease, regardless of when actual payments are made. This generally results in rent expense in excess of cash payments during the early years of a lease and rent expense less than cash payments in later years. The difference between rent expense recognized and actual rental payments is typically represented as the spread between the ROU asset and lease liability. When calculating the present value of minimum lease payments, we account for leases as one single lease component if a lease has both lease and non-lease fixed cost components. Variable lease and non-lease cost components are expensed as incurred. We do not recognize ROU assets and lease liabilities for short-term leases that have an initial lease term of 12 months or less. We recognize the lease payments associated with short-term leases as an expense on a straight-line basis over the lease term. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined in the following three categories: Level 1: Unadjusted quoted prices that are available in active markets for identical assets or liabilities at the measurement date. Level 2: Significant other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly. Level 3: Significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. Cash, receivables, inventory, prepaid expenses, accounts payable, accrued expenses, and customer deposits approximate fair value, due to their short-term nature. Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to long-lived assets and goodwill, which are remeasured when the derived fair value is below carrying value in the consolidated balance sheets. |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is calculated by adjusting the weighted average number of shares of common stock outstanding for the dilutive effect, if any, of common stock equivalents. Common stock equivalents whose effect would be antidilutive are not included in diluted earnings per share. The Company uses the treasury stock method to determine the dilutive effect, which assumes that all common stock equivalents have been exercised at the beginning of the period and that the funds obtained from those exercises were used to repurchase shares of common stock of the Company at the average closing market price during the period. |
Stock-Based Compensation | Stock-Based Compensation We recognize the fair value compensation cost relating to stock-based payment transactions in accordance with ASC Topic 718, “Share-Based Payments,”. Under the provisions of ASC 718, stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized on a straight-line basis over the employee’s requisite service period, which is generally the vesting period. Restricted stock awards are valued based on the closing stock price on the date of grant (intrinsic value method). The Company has elected to recognize forfeitures as they occur. |
Research and Development Expense | Research and Development Expense In accordance with ASC 730, the Company follows the policy of expensing its research and development costs in the period in which they are incurred. The Company incurred research and development expenses of $73,425 and $58,340 during the years ended December 31, 2022 and 2021, respectively. |
Advertising and Marketing Expense | Advertising and Marketing Expense Costs for advertising and marketing are expensed as incurred. Advertising and marketing expense for the years ended December 31, 2022 and 2021 was $77,311 and $21,971, respectively. |
Income Taxes | Income Taxes Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted ASC 740, “Accounting for Income Taxes” as of its inception. Pursuant to ASC 740, the Company is required to compute tax asset benefits for net operating losses carried forward. The potential benefits of net operating losses have not been recognized in these consolidated financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years. |
Impact of COVID-19 Policy | Impact of COVID-19 In December 2019, a novel strain of coronavirus (“COVID-19”) emerged in China. On March 11, 2020, the World Health Organization declared the outbreak of COVID-19 a pandemic. The extent of the COVID-19 pandemic’s continued effect on our operational and financial performance and those of third parties on which the Company relies will depend on future developments, including the duration, spread and intensity of the outbreak, the pace at which jurisdictions across the country re-open and restrictions begin to lift. The ultimate impact of the COVID-19 pandemic is highly uncertain and subject to change. The Company does not yet know the full extent of potential impacts on its business and financing. However, these effects could have a material impact on the Company’s liquidity, capital resources, operations and business and those of the third parties on which the Company relies. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s condensed consolidated financial statements. In June 2016, the FASB issued ASU 2016-13 Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019. This pronouncement was amended under ASU 2019-10 to allow an extension on the adoption date for entities that qualify as a small reporting company. The Company has elected this extension and the effective date for the Company to adopt this standard will be for fiscal years beginning after December 15, 2022. The Company has not completed its assessment of the standard but does not expect the adoption to have a material impact on the Company’s consolidated financial statements and related disclosures. In October 2021, the FASB issued ASU 2021-08 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU amends ASC 805 to require acquiring entities to apply ASC 606 to recognize and measure contract assets and contract liabilities in business combinations. The ASU is effective for public entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December 15, 2022, and early adoption is permitted. The Company has not completed its assessment of the standard but does not expect the adoption to have a material impact on the Company’s consolidated financial statements and related disclosures. In November 2021, the FASB issued ASU 2021-10, Disclosures by Business Entities about Government Assistance. The FASB is issuing this Update to increase the transparency of government assistance including the disclosure of (1) the types of assistance, (2) an entity’s accounting for the assistance, and (3) the effect of the assistance on an entity’s financial statements. The ASU was effective for annual reporting periods after January 1, 2022. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements and related disclosures. |
Disaggregation of Revenues (Tab
Disaggregation of Revenues (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disaggregation of Revenues [Abstract] | |
Schedule of revenues | Years Ended December 31, 2022 United States International Total Revenues Freezers and chillers $ 793,953 $ 262,001 $ 1,126,428 OEM and other 722,194 263,149 914,869 Total Revenues $ 1,516,147 $ 525,150 $ 2,041,297 Years Ended December 31, 2021 United States International Total Revenues Freezers and chillers $ 1,047,363 $ 357,739 $ 1,502,437 OEM and other 739,074 670,494 1,312,233 Total Revenues $ 1,786,437 $ 1,028,233 $ 2,814,670 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventories [Abstract] | |
Schedule of inventories | December 31, 2022 December 31, 2021 Finished goods $ 376,334 $ 342,835 Raw materials 527,062 387,695 Total inventories 903,396 730,530 Less reserve for obsolescence (106,044 ) (106,044 ) Total inventories, net $ 797,352 $ 624,486 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of consolidated balance sheet | December 31, 2022 December 31, 2021 Operating lease right-of-use assets $ 54,265 $ 110,483 Lease liabilities, current portion 57,393 56,446 Lease liabilities, long-term - 57,393 Total operating lease liabilities $ 57,393 $ 113,839 Weighted-average remaining lease term (months) 11 23 Weighted average discount rate 5.25% 5.25% |
Schedule of total lease expense | Years Ended December 31, 2022 2021 Operating lease expense $ 60,864 $ 60,864 Variable lease expense 6,457 6,368 Total lease expense $ 67,321 $ 67,232 |
Schedule of maturities of operating lease liabilities | Year Ending December 31, Amount 2023 $ 58,920 Less: imputed interest (1,527 ) Total operating lease liabilities $ 57,393 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Payable and Accrued Expenses [Abstract] | |
Schedule of accounts payable and accrued expenses | December 31, December 31, Trade accounts payable $ 55,011 $ 44,229 Credit cards payable 23,958 22,608 Total accounts payable and accrued expenses $ 78,969 $ 66,837 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of changes in restricted stock awards outstanding | Restricted Stock Awards Weighted-Average Exercise Price Outstanding at December 31, 2020 - $ - Granted 1,000,000 0.11 Vested (250,000 ) (0.11 ) Outstanding at December 31, 2021 750,000 $ 0.11 Granted - - Modified (75,000 ) (0.11 ) Vested (225,000 ) (0.11 ) Outstanding at December 31, 2022 450,000 $ 0.11 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings (Loss) Per Share [Abstract] | |
Schedule of weighted average shares outstanding and the basic and diluted earnings per share | Years Ended December 31, 2022 2021 Net income $ 89,396 $ 939,065 Weighted average shares outstanding 84,990,935 84,739,770 Basic earnings per share $ 0.00 $ 0.01 Weighted average shares outstanding 84,990,935 84,739,770 Effect on dilutive stock awards 450,000 750,000 Total potential shares outstanding 85,440,935 85,489,770 Diluted earnings per share $ 0.00 $ 0.01 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of the provision for income taxes | December 31, 2022 December 31, 2021 Current Federal and State $ 702 $ - Deferred Federal and State - - Total (benefit) provision for income taxes $ 702 $ - |
Schedule deferred income tax assets and liabilities | December 31, 2022 December 31, 2021 Deferred tax assets (liabilities) Loss carryforward $ 2,862,544 $ 2,853,471 Property and equipment (30,307 ) (30,307 ) Other (19,694 ) (19,694 ) Valuation Allowance (2,812,543 ) (2,803,470 ) Total net deferred income tax assets (liabilities) $ - $ - |
Schedule of income tax expense | December 31, 2022 December 31, 2021 Federal tax $ 18,921 $ 197,204 Meals and entertainment 4,625 3,672 Charitable contributions 1,369 - Depreciation and amortization (33,988 ) (30,307 ) Other - (23,366 ) Change in valuation allowance 8,371 (147,203 ) Total (benefit) provision for income taxes $ 702 $ - |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Percentage of contract paid | 50% | |
Customer deposits | $ 13,230 | $ 118,566 |
Allowance for doubtful accounts | $ 4,000 | 4,000 |
Depreciated useful life | 3 years | |
obsolescence allowance | $ 106,044 | 106,044 |
Research and development expense | 73,425 | 58,340 |
Advertising and marketing expense | $ 77,311 | $ 21,971 |
Minimum [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Property and equipment depreciated range | 5 | |
Maximum [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Property and equipment depreciated range | 7 years |
Disaggregation of Revenues (Det
Disaggregation of Revenues (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Service revenue | $ 70,474 | $ 97,335 |
Disaggregation of Revenues (D_2
Disaggregation of Revenues (Details) - Schedule of revenues - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Freezers and chillers | $ 1,126,428 | $ 1,502,437 |
OEM and other | 914,869 | 1,312,233 |
Total Revenues | 2,041,297 | 2,814,670 |
United States [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Freezers and chillers | 793,953 | 1,047,363 |
OEM and other | 722,194 | 739,074 |
Total Revenues | 1,516,147 | 1,786,437 |
International [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Freezers and chillers | 262,001 | 357,739 |
OEM and other | 263,149 | 670,494 |
Total Revenues | $ 525,150 | $ 1,028,233 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Inventories [Abstract] | ||
Finished goods | $ 376,334 | $ 342,835 |
Raw materials | 527,062 | 387,695 |
Total inventories | 903,396 | 730,530 |
Less reserve for obsolescence | (106,044) | (106,044) |
Total inventories, net | $ 797,352 | $ 624,486 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of consolidated balance sheet - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Condensed Consolidated Balance Sheet [Abstract] | ||
Operating lease right-of-use assets | $ 54,265 | $ 110,483 |
Lease liabilities, current portion | 57,393 | 56,446 |
Lease liabilities, long-term | 57,393 | |
Total operating lease liabilities | $ 57,393 | $ 113,839 |
Weighted-average remaining lease term (months) | 11 months | 23 months |
Weighted average discount rate | 5.25% | 5.25% |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of total lease expense - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Total Lease Expense [Abstract] | ||
Operating lease expense | $ 60,864 | $ 60,864 |
Variable lease expense | 6,457 | 6,368 |
Total lease expense | $ 67,321 | $ 67,232 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of maturities of operating lease liabilities - Operating Lease Liabilities [Member] | Dec. 31, 2022 USD ($) |
Leases (Details) - Schedule of maturities of operating lease liabilities [Line Items] | |
2023 | $ 58,920 |
Less: imputed interest | (1,527) |
Total operating lease liabilities | $ 57,393 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - Schedule of accounts payable and accrued expenses - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Accounts Payable and Accrued Expenses [Abstract] | ||
Trade accounts payable | $ 55,011 | $ 44,229 |
Credit cards payable | 23,958 | 22,608 |
Total accounts payable and accrued expenses | $ 78,969 | $ 66,837 |
Concentrations of Risk (Details
Concentrations of Risk (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Concentrations of Risk (Details) [Line Items] | ||
Cash balances of FDIC insurance | $ 250,000 | $ 250,000 |
Limit per depositor per banking institution | 1,131,927 | 1,223,924 |
Inventory amount | $ 100,000 | |
Interest rate | 9.75% | |
Line of credit | $ 0 | 0 |
Line of credit balance | 100,000 | |
Credit amount | $ 100,000 | $ 100,000 |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Four Customers [Member] | ||
Concentrations of Risk (Details) [Line Items] | ||
Concentration risk sales revenue | 51% | 45% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Four Customers [Member] | ||
Concentrations of Risk (Details) [Line Items] | ||
Concentration risk sales revenue | 71% | 70% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2004 | Dec. 28, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stockholders' Equity (Details) [Line Items] | ||||
Preferred stock shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | |
Common stock per share (in Dollars per share) | $ 1 | |||
Preferred stock are issued | ||||
Preferred stock outstanding | ||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | ||
Common stock, shares outstanding | 85,214,086 | 84,989,086 | ||
Common stock, shares issued | 85,214,086 | 84,989,086 | ||
Vesting term | 3 years | |||
Restricted stock, vest shares | 250,000 | |||
Stock based compensation expense (in Dollars) | $ 27,500 | $ 27,500 | ||
Non-vested restricted stock awards (in Dollars) | $ 55,000 | |||
Non vested restricted stock awards period | 2 years | |||
Series A Convertible Preferred Stock [Member] | ||||
Stockholders' Equity (Details) [Line Items] | ||||
Designated shares | 750,000 | |||
Series A Preferred Stock [Member] | ||||
Stockholders' Equity (Details) [Line Items] | ||||
Percentage of preferred stock dividend | 8% | |||
Per share (in Dollars per share) | $ 1 | |||
Percentage of unpaid dividends | 50% | |||
Restricted Stock [Member] | ||||
Stockholders' Equity (Details) [Line Items] | ||||
Restricted common stock, shares | 1,000,000 | |||
Vesting term | 3 years | 2 years | ||
Restricted stock, vest shares | 250,000 | |||
Shares vested | 475,000 | |||
Additional vested shares | 225,000 | |||
Restricted Stock [Member] | Maximum [Member] | ||||
Stockholders' Equity (Details) [Line Items] | ||||
Restricted common stock shares | 1,000,000 | |||
Restricted Stock [Member] | Minimum [Member] | ||||
Stockholders' Equity (Details) [Line Items] | ||||
Restricted common stock shares | 925,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - Schedule of changes in restricted stock awards outstanding - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Changes In Restricted Stock Awards Outstanding Abstract | ||
Restricted Stock Awards Outstanding, Beginning | 750,000 | |
Weighted-Average Exercise Price Outstanding, Beginning | $ 0.11 | |
Restricted Stock Awards Outstanding, Granted | 1,000,000 | |
Weighted-Average Exercise Price Outstanding, Granted | $ 0.11 | |
Restricted Stock Awards Outstanding, Modified | (75,000) | |
Weighted-Average Exercise Price Outstanding, Modified | $ (0.11) | |
Restricted Stock Awards, Vested | (225,000) | (250,000) |
Weighted-Average Exercise Price, Vested | $ (0.11) | $ (0.11) |
Restricted Stock Awards Outstanding, Ending | 450,000 | 750,000 |
Weighted-Average Exercise Price Outstanding, Ending | $ 0.11 | $ 0.11 |
Earnings Per Share (Details) -
Earnings Per Share (Details) - Schedule of weighted average shares outstanding and the basic and diluted earnings per share - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Weighted Average Shares Outstanding and the Basic and Diluted Earnings Per Share [Abstract] | ||
Net income (in Dollars) | $ 89,396 | $ 939,065 |
Weighted average shares outstanding | 84,990,935 | 84,739,770 |
Basic earnings per share (in Dollars per share) | $ 0 | $ 0.01 |
Weighted average shares outstanding | 84,990,935 | 84,739,770 |
Effect on dilutive stock awards (in Dollars) | $ 450,000 | $ 750,000 |
Total potential shares outstanding | 85,440,935 | 85,489,770 |
Diluted earnings per share (in Dollars per share) | $ 0 | $ 0.01 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Statutory federal rate | 21% | 21% |
Operating loss carryforwards (in Dollars) | $ 7,360,431 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of components of the provision for income taxes - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Components of the Provision for Income Taxes [Abstract] | ||
Current Federal and State | $ 702 | |
Deferred Federal and State | ||
Total (benefit) provision for income taxes | $ 702 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule deferred income tax assets and liabilities - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Deferred Tax Assets [Abstract] | ||
Loss carryforward | $ 2,862,544 | $ 2,853,471 |
Property and equipment | (30,307) | (30,307) |
Other | (19,694) | (19,694) |
Valuation Allowance | (2,812,543) | (2,803,470) |
Total net deferred income tax assets (liabilities) |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of income tax expense - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Income Tax Expense [Abstract] | ||
Federal tax | $ 18,921 | $ 197,204 |
Meals and entertainment | 4,625 | 3,672 |
Charitable contributions | 1,369 | |
Depreciation and amortization | (33,988) | (30,307) |
Other | (23,366) | |
Change in valuation allowance | 8,371 | (147,203) |
Total (benefit) provision for income taxes | $ 702 |