Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 28, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | Electronic Systems Technology Inc | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Entity Central Index Key | 752,294 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 5,052,178 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | elst |
ELECTRONIC SYSTEMS TECHNOLOGY,
ELECTRONIC SYSTEMS TECHNOLOGY, INC. BALANCE SHEETS (Interim period unaudited) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | |
Current assets | |||
Cash and cash equivalents | $ 756,354 | $ 502,971 | |
Certificates of deposit investments | 750,000 | 1,000,000 | |
Accounts receivable | 146,818 | 71,202 | |
Inventories | 594,935 | 703,147 | |
Accrued interest receivable | 3,095 | 6,903 | |
Prepaid expenses | 6,100 | 8,405 | |
Total current assets | 2,257,302 | 2,292,628 | |
Property and equipment, net of depreciation | 46,398 | 51,383 | |
Deferred income taxes | 244,092 | 244,092 | |
Total assets | 2,547,792 | 2,588,103 | |
Current liabilities | |||
Accounts payable | 56,376 | 15,114 | |
Accrued liabilities | 29,864 | 22,693 | |
Refundable deposits | 3,622 | 4,527 | |
Total current liabilities | 89,862 | 42,334 | |
Total liabilities | 89,862 | 42,334 | |
COMMITMENTS | [1] | 0 | 0 |
Stockholders' equity | |||
Common stock, $0.001 par value 50,000,000 shares authorized 5,052,178 and 5,060,903 shares issued and outstanding respectively | 5,052 | 5,061 | |
Additional paid-in capital | 969,266 | 972,609 | |
Retained earnings | 1,483,612 | 1,568,099 | |
Total stockholders' equity | 2,457,930 | 2,545,769 | |
Total liabilities and stockholders' equity | $ 2,547,792 | $ 2,588,103 | |
[1] | Note 6 |
Statement of Financial Position
Statement of Financial Position - Parenthetical - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of financial position | ||
Common Stock, Par Value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares Issued | 5,052,178 | 5,060,903 |
Common Stock, Shares Outstanding | 5,052,178 | 5,060,903 |
ELECTRONIC SYSTEMS TECHNOLOGY,4
ELECTRONIC SYSTEMS TECHNOLOGY, INC. STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income statement | ||
PRODUCT SALES, net | $ 361,422 | $ 419,712 |
SITE SUPPORT | 17,364 | 47,939 |
COST OF SALES and SITE SUPPORT | (183,315) | (200,136) |
GROSS PROFIT | 195,471 | 267,515 |
OPERATING EXPENSES | ||
General and administrative | 88,134 | 91,671 |
Research and development | 80,015 | 69,135 |
Marketing and Sales | 114,499 | 119,021 |
Total operating expenses | 282,648 | 279,827 |
OPERATING LOSS | (87,177) | (12,312) |
OTHER INCOME | ||
Interest income | 2,690 | 2,886 |
Total other income | 2,690 | 2,886 |
NET LOSS BEFORE INCOME TAX | (84,487) | (9,426) |
Benefit (provision) for income tax | (400) | |
NET LOSS | $ (84,487) | $ (9,826) |
Basic and diluted loss per share | $ (0.02) | $ 0 |
Weighted average shares | 5,057,667 | 5,124,363 |
ELECTRONIC SYSTEMS TECHNOLOGY,5
ELECTRONIC SYSTEMS TECHNOLOGY, INC. STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (84,487) | $ (9,826) |
Noncash items included in net loss: | ||
Depreciation | 4,985 | 6,573 |
Deferred income taxes | 400 | |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (75,616) | (133,628) |
Inventories | 108,211 | 25,971 |
Accrued interest receivable | 3,808 | 6,284 |
Prepaid expenses | 2,305 | 1,033 |
Accounts payable | 41,262 | 5,213 |
Refundable deposits | (905) | |
Accrued liabilities | 7,172 | 11,002 |
NET CASH PROVIDED (USED) IN OPERATING ACTIVITIES | 6,735 | (86,980) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Certificates of deposit redeemed | 250,000 | 452,625 |
NET CASH PROVIDED FROM INVESTING ACTIVITIES | 250,000 | 452,625 |
CASH FLOWS USED IN FINANCING ACTIVITIES: | ||
Repurchase of shares | (3,352) | (29,472) |
NET CASH USED IN FINANCING ACTIVITIES | (3,352) | (29,472) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 253,383 | 336,173 |
Cash and cash equivalents at beginning of period | 502,971 | 618,060 |
Cash and cash equivalents at end of period | $ 756,354 | $ 954,233 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Notes | |
Note 1 - Basis of Presentation | NOTE 1 - BASIS OF PRESENTATION The financial statements of Electronic Systems Technology, Inc. (the "Company") presented in this Form 10Q are unaudited and reflect, in the opinion of Management, a fair presentation of operations for the three month periods ended March 31, 2017 and March 31, 2016. All adjustments of a normal recurring nature and necessary for a fair presentation of the results for the periods covered have been made. Certain information and footnote disclosure normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the applicable rules and regulations of the Securities and Exchange Commission. In preparation of the financial statements, certain amounts and balances have been reformatted from previously filed reports to conform to the format of this quarterly presentation. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Form 10K for the year ended December 31, 2016 as filed with Securities and Exchange Commission. The results of operations for the three-month period ended March 31, 2017 are not necessarily indicative of the results expected for the full fiscal year or for any other fiscal period. |
Note 2 - Inventories
Note 2 - Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Notes | |
Note 2 - Inventories | NOTE 2 - INVENTORIES Inventories are stated at lower of direct cost or market with cost determined using the FIFO (first in, first out) method. Inventories consist of the following: March 31 2017 December 31 2016 Parts $ 127,039 $ 185,911 Work in progress 168,743 216,859 Finished goods 299,153 300,377 Total inventory $ 594,935 703,147 |
Note 3 - Earnings (Loss) Per Sh
Note 3 - Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Notes | |
Note 3 - Earnings (Loss) Per Share | NOTE 3 - EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share excludes dilution and is computed by dividing income (loss) available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings (loss) per share reflects potential dilution occurring if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. At March 31, 2017, the Company had 150,000 outstanding stock options that could have a dilutive effect on future periods income. However, diluted earnings per share are not presented because their effect would be antidilutive due to Companys losses. |
Note 4 - Stock Options
Note 4 - Stock Options | 3 Months Ended |
Mar. 31, 2017 | |
Notes | |
Note 4 - Stock Options | NOTE 4 - STOCK OPTIONS As of March 31, 2017, the Company had outstanding stock options which have been granted periodically to individual employees and directors with no less than three years of continuous tenure with the Company. The Board of Directors did not issue stock options during the first quarter ended March 31, 2017. A summary of option activity during the quarter ended March 31, 2017 is as follows: Number Outstanding Weighted-Average Exercise Price Per Share Weighted-Average Remaining Life (Years) Approximate Aggregate Intrinsic Value Outstanding and Exercisable at December 31, 2016 220,000 $ 0.40 Granted - - Expired (70,000) 0.41 Outstanding and Exercisable at March 31, 2017 150,000 $ 0.40 3.4 $ 0 |
Note 5 - Related Party Transact
Note 5 - Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Notes | |
Note 5 - Related Party Transactions | NOTE 5 - RELATED PARTY TRANSACTIONS During the quarter ended March 31, 2017 the Company accrued total directors fees of $1,200, or $300 per director for board meetings attended. During the same period in 2016 the Company accrued total directors fees of $1,500. |
Note 6 - Commitments
Note 6 - Commitments | 3 Months Ended |
Mar. 31, 2017 | |
Notes | |
Note 6 - Commitments | NOTE 6 - COMMITMENTS The Company leases its facilities from a port authority for $5,445 per month for three years, expiring in September 2017, with annual increases based upon the Consumer Price Index |
Note 7 - Segment Reporting
Note 7 - Segment Reporting | 3 Months Ended |
Mar. 31, 2017 | |
Notes | |
Note 7 - Segment Reporting | NOTE 7 - SEGMENT REPORTING Domestic Sales for the three month period ending March 31, 2017, were $283,118 which was a decrease of $25,650 compared to the same period in 2016. Foreign Sales for the three month period ending March 31, 2017 were $78,304 which was a decrease of $32,640 compared to the same period in 2016. No Sales to one customer were greater than 10% of the total sales for the quarter. |
Note 8 - Stock Repurchase
Note 8 - Stock Repurchase | 3 Months Ended |
Mar. 31, 2017 | |
Notes | |
Note 8 - Stock Repurchase | NOTE 8 Stock Repurchase On January 13, 2016, the Companys Board of Directors approved a resolution authorizing the repurchase of up to $100,000 of the Companys common stock at the price of $0.38 per share. As of March 31, 2017, $59,266 remains of $100,000 approved by the board. 97,764 shares were repurchased in 2016, bringing the total number of shares repurchased up to 106,489. The Companys share repurchase program does not obligate it to acquire any specific number of shares. The following table shows the Companys activity and related information for the three month period ending March 31, 2017: Purchase Period End Date Number of Shares Average Repurchase Price Per Share Amount January 2017 January 31, 2017 1,000 $0.38 $ 380 March 2017 March 31, 2017 7,725 $0.38 $ 2,936 Total 8,725 $0.38 $ 3,316 The trading price of the Companys shares as of March 31 st |
Note 2 - Inventories_ Schedule
Note 2 - Inventories: Schedule of Inventory, Current (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Tables/Schedules | |
Schedule of Inventory, Current | March 31 2017 December 31 2016 Parts $ 127,039 $ 185,911 Work in progress 168,743 216,859 Finished goods 299,153 300,377 Total inventory $ 594,935 703,147 |
Note 4 - Stock Options_ Schedul
Note 4 - Stock Options: Schedule of Share-based Compensation, Stock Options, Activity (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Tables/Schedules | |
Schedule of Share-based Compensation, Stock Options, Activity | Number Outstanding Weighted-Average Exercise Price Per Share Weighted-Average Remaining Life (Years) Approximate Aggregate Intrinsic Value Outstanding and Exercisable at December 31, 2016 220,000 $ 0.40 Granted - - Expired (70,000) 0.41 Outstanding and Exercisable at March 31, 2017 150,000 $ 0.40 3.4 $ 0 |
Note 8 - Stock Repurchase_ Sche
Note 8 - Stock Repurchase: Schedule of Repurchase Agreements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Tables/Schedules | |
Schedule of Repurchase Agreements | Purchase Period End Date Number of Shares Average Repurchase Price Per Share Amount January 2017 January 31, 2017 1,000 $0.38 $ 380 March 2017 March 31, 2017 7,725 $0.38 $ 2,936 Total 8,725 $0.38 $ 3,316 |
Note 2 - Inventories_ Schedul17
Note 2 - Inventories: Schedule of Inventory, Current (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Details | ||
Inventory, Parts and Components, Net of Reserves | $ 127,039 | $ 185,911 |
Inventory, Work in Process, Gross | 168,743 | 216,859 |
Inventory, Finished Goods, Gross | 299,153 | 300,377 |
Inventories | $ 594,935 | $ 703,147 |
Note 3 - Earnings (Loss) Per 18
Note 3 - Earnings (Loss) Per Share (Details) | 3 Months Ended |
Mar. 31, 2017shares | |
Details | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 150,000 |
Note 4 - Stock Options_ Sched19
Note 4 - Stock Options: Schedule of Share-based Compensation, Stock Options, Activity (Details) | 3 Months Ended | |
Mar. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016$ / sharesshares | |
Details | ||
Number Outstanding | shares | 150,000 | 220,000 |
Weighted Average Exercise Price | $ / shares | $ 0.40 | $ 0.40 |
Expired | shares | (70,000) | |
Weighted Average Exercise Price Per Option | $ / shares | $ 0.41 | |
Weighted Average Remaining Life Years | 3.4 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ | $ 0 |
Note 5 - Related Party Transa20
Note 5 - Related Party Transactions (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Details | ||
Noninterest Expense Directors Fees | $ 1,200 | $ 1,500 |
Note 7 - Segment Reporting (Det
Note 7 - Segment Reporting (Details) | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Details | |
Domestic sales | $ 283,118 |
Decrease Domestic sales | 25,650 |
Foreign sales | 78,304 |
Decrease Foreign sales | $ 32,640 |
Note 8 - Stock Repurchase (Deta
Note 8 - Stock Repurchase (Details) | 3 Months Ended | 15 Months Ended |
Mar. 31, 2017$ / sharesshares | Mar. 31, 2017$ / sharesshares | |
Details | ||
Stock repurchased, stock | shares | 8,725 | 106,489 |
Trading price per share | $ / shares | $ 0.39 | $ 0.39 |
Note 8 - Stock Repurchase_ Sc23
Note 8 - Stock Repurchase: Schedule of Repurchase Agreements (Details) - USD ($) | 3 Months Ended | 15 Months Ended |
Mar. 31, 2017 | Mar. 31, 2017 | |
Details | ||
Stock repurchased, stock | 8,725 | 106,489 |
Average Repurchase Price Per Share | $ 0.38 | |
Payments for Repurchase of Common Stock | $ 3,316 |