Reflect Scientific (RSCF) 10-K 31 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 31, 2017	Jun. 30, 2016
Document and Entity Information
Entity Registrant Name	REFLECT SCIENTIFIC INC.
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Entity Central Index Key	1,103,090
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		65,401,086
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	2,016
Document Fiscal Period Focus	FY
Entity Public Float			$ 1,397,138
Trading Symbol	rscf

REFLECT SCIENTIFIC, INC. AND SU

REFLECT SCIENTIFIC, INC. AND SUBSIDIARIES Consolidated Balance Sheets - USD ($)	Dec. 31, 2016	Dec. 31, 2015
CURRENT ASSETS
Cash	$ 263,964	$ 292,087
Accounts receivable, net	73,424	136,362
Inventory, net	226,967	206,409
Prepaid assets	3,100	3,100
Total Current Assets	567,455	637,958
FIXED ASSETS, NET	0	0
OTHER ASSETS
Intangible assets, net	0	5,316
Goodwill	60,000	60,000
Deposits	3,100	3,100
Total Other Assets	63,100	68,416
TOTAL ASSETS	630,555	706,374
CURRENT LIABILITIES
Accounts payable	58,968	84,347
Short-term lines of credit	0	9,396
Customer deposits	0	57,835
Income taxes payable	100	100
Total Current Liabilities	59,068	151,678
Total Liabilities	59,068	151,678
Commitments and contingencies
SHAREHOLDERS' EQUITY
Preferred stock, $0.01 par value, authorized 5,000,000 shares; no shares issued and outstanding	0	0
Common stock, $0.01 par value, authorized 100,000,000 shares; 65,401,086 and 60,958,514 shares issued and outstanding, respectively	654,010	609,584
Additional paid in capital	19,566,472	19,377,911
Accumulated deficit	(19,648,995)	(19,432,799)
Total Shareholders' Equity	571,487	554,696
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 630,555	$ 706,374

Reflect Scientific, Inc. Balanc

Reflect Scientific, Inc. Balance Sheet (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position
Preferred stock authorized	5,000,000	5,000,000
Preferred stock par value	$ 0.01	$ 0.01
Preferred stock outstanding	0	0
Preferred stock issued	0	0
Common stock authorized	100,000,000	100,000,000
Common stock par value	$ 0.01	$ 0.01
Common stock outstanding	65,401,086	60,958,514
Common stock issued	65,401,086	60,958,514

REFLECT SCIENTIFIC, INC. AND S4

REFLECT SCIENTIFIC, INC. AND SUBSIDIARIES Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Statement
REVENUES	$ 1,188,610	$ 1,037,324
COST OF GOODS SOLD	376,064	407,111
GROSS PROFIT	812,546	630,213
OPERATING EXPENSES
Salaries and wages	618,103	661,931
Rent expense	34,250	34,424
Research and development expense	70,801	72,863
General and administrative expense	340,994	320,947
Total Operating Expenses	1,064,148	1,090,165
OPERATING LOSS	(251,602)	(459,952)
OTHER INCOME (EXPENSE)
Gain on extinguishment of debt	0	1,355,375
Other income	35,720	0
Interest expense	(314)	(59,486)
Total Other Income (Expenses)	35,406	1,295,889
NET INCOME (LOSS) BEFORE INCOME TAX EXPENSE	(216,196)	835,937
Income tax expense	0	0
NET INCOME (LOSS)	$ (216,196)	$ 835,937
NET (LOSS) PER SHARE - BASIC AND DILUTED	$ 0	$ 0.01
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC AND DILUTED	62,964,438	58,220,375

REFLECT SCIENIFIC, INC. AND SUB

REFLECT SCIENIFIC, INC. AND SUBSIDIARIES Consolidated Statements of Shareholders' Equity (Deficit) - USD ($)	Common	Additional Paid in Capital	Accumulated Deficit	Total
Common shares, beginning balance at Dec. 31, 2014	56,702,501	0	0	56,702,501
Stockholders' equity, beginning balance at Dec. 31, 2014	$ 567,024	$ 19,135,183	$ (20,268,736)	$ (566,529)
Common stock issued to employee, shares	3,639,000	0	0	3,639,000
Common stock issued to employee, value	$ 36,390	$ 219,282	$ 0	$ 255,672
Common stock issued for consulting services, shares	617,093	0	0	617,093
Common stock issued for consulting services, value	$ 6,170	$ 23,446	$ 0	$ 29,616
NET INCOME (LOSS)	$ 0	$ 0	$ 835,937	$ 835,937
Common shares, ending balance at Dec. 31, 2015	60,958,514	0	0	60,958,514
Stockholders' equity, ending balance at Dec. 31, 2015	$ 609,584	$ 19,377,911	$ (19,432,799)	$ 554,696
Common stock issued to employee, shares	3,862,750	0	0	3,862,750
Common stock issued to employee, value	$ 38,628	$ 159,570	$ 0	$ 198,198
Common stock issued for consulting services, shares	579,822	0	0	579,822
Common stock issued for consulting services, value	$ 5,798	$ 28,991	$ 0	$ 34,789
NET INCOME (LOSS)	$ 0	$ 0	$ (216,196)	$ (216,196)
Common shares, ending balance at Dec. 31, 2016	65,401,086	0	0	65,401,086
Stockholders' equity, ending balance at Dec. 31, 2016	$ 654,010	$ 19,566,472	$ (19,648,995)	$ 571,487

REFLECT SCIENTIFIC, INC. AND S6

REFLECT SCIENTIFIC, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
NET INCOME (LOSS)	$ (216,196)	$ 835,937
Adjustments to reconcile net loss to net cash from operating activities:
Amortization	5,316	28,727
Stock based compensation	198,198	255,672
Common stock issued for services	34,789	29,616
Gain on extinguishment of debt	0	(1,355,375)
Accounts receivable	62,938	119,808
Inventory	(20,558)	9,549
Accounts payable and accrued expenses	(25,379)	49,479
Customer deposits	(57,835)	0
Interest payable	0	58,500
Net Cash from Operating Activities	(18,727)	31,913
CASH FLOWS FROM INVESTING ACTIVITIES
Net Cash from Investing Activities	0	0
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on short-term lines of credit	(9,396)	(10,879)
Net Cash from Financing Activities	(9,396)	(10,879)
NET INCREASE (DECREASE) IN CASH	(28,123)	21,034
CASH AT BEGINNING OF PERIOD	292,087	271,053
CASH AT END OF PERIOD	263,964	292,087
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest	314	986
Income taxes	$ 0	$ 0

Organization, Consolidation and

Organization, Consolidation and Presentation of Financial Statements	12 Months Ended
	Dec. 31, 2016
Notes
Organization, Consolidation and Presentation of Financial Statements	NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS Cole, Inc. (the Company) was incorporated under the laws of the State of Utah on November 3, 1999. 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 has two wholly owned subsidiaries, Cryometrix and Julie Martin Scientific Technology, which are described below. Reflect Scientific Reflect Scientific designs, develops and sells scientific equipment for the Life Science and Manufacturing industries. The Company’s business activities include the manufacture and distribution of unique laboratory consumables and disposables such as filtration and purification products, customized sample handling vials, electronic wiring assemblies, high temperature silicone, graphite and vespel/graphite sealing components for use by original equipment manufacturers (“OEM”) in the chemical analysis industries, primarily in the field of gas/liquid chromatography. The Company’s chemical detector products serve the analytical instrumentation sector of the Life Sciences market. These optically based chemical detection instruments provide a cost-effective, high-performance alternative for original equipment manufacturers (OEM). One major use for these detectors is the analysis of whole blood for metabolic diseases. Cryometrix The Company’s Cryometrix ultra low temperature freezers have technologies that provide energy savings and other critically important benefits to cryo-storage customers in the Life Science related industries. Ultra low temperature freezers are used in multiple industries for the storage of everything from blood to cancer vaccines. These types of freezers are used by companies such as hospitals and biotechnology research facilities. The adaptation of the freezer technology to refrigeration systems used on trailers (“reefers”) for transporting perishable items opens a significant new market. Trailers can easily be retrofit with the Cryogenix unit, which provides pollutant free and more efficient operations at a cost savings compared to the diesel powered units currently used. Julie Martin Scientific Technology (“JMST”) The Company manufactures and sells a line of chemical detectors which have broad application in research facilities and laboratories. The detectors have a price advantage over competitive products, making them affordable for use in laboratories at educational institutions. The sale of chemical detectors also generates follow on sales of consumable supplies. 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 Revenue is only recognized on product sales once the product has been shipped to the customer, persuasive evidence of an agreement exists, the price is fixed or determinable, and collectability is reasonably assured. The Company sells its products in both the US and internationally through direct sales and independent distributors. 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. The Company charged $ 0 to bad debt expense for the years ended December 31, 2016 and 2015. As the Company has historically experienced minimal bad debts, management feels the allowance for doubtful accounts balance of $ 4,000 at December 31, 2016 to be an adequate reserve based on the experience seen over multiple years. f. Fixed Assets Fixed assets 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 fixed assets are depreciated range from 5 to 7 years, except for computer equipment, which is depreciated over a 3 year life. g. Inventory 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. h. Advertising Expense The Company follows the policy of charging the costs of advertising to expense as incurred. The Company recognized $ 3,461 and $ 8,847 of advertising expense during the years ended December 31, 2016, and 2015, respectively. i. Newly Issued Accounting Pronouncements In October 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“AASU”) 2016-16, Income Taxes (Topic 740); Intra-Entity Transfers of Assets Other Than Inventory. This ASU requires entities to recognize the income tax consequences of many intercompany asset transfers at the transaction date. The seller and buyer will immediately recognize the current and deferred income tax consequences of an intercompany transfer of an asset other than inventory. The tax consequences were previously deferred until the asset is sold to a third part or recovered through use. This guidance will become effective on January 1, 2018. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230); Classification of Certain Cash Receipts and Cash Payments. This ASU addresses the following eight specific cash flow issues: Debt costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This guidance will become effective on January 1, 2018. We do not expect the adoption of this ASU to have a material impact on our Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718); Improvements to Employee Share-Based Payments Accounting. The ASU changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as the classification of related matters in the statement of cash flows. This guidance will become effective January 1, 2017. We do not expect the adoption of this ASU to have a material impact on our Consolidated Financial Statements. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2016-02, “Leases.” The Company has reviewed all other 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. j. 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, 2016 and 2015, the Company had no common stock equivalents. k. Shipping and Handling Fees and Costs The Company records all shipping and handling costs as operating costs. Freight paid on outgoing shipments in 2016 was $37,411 and is recorded in general and administrative expense. l. 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, 2016 and 2015, 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, 2016 and 2015 relating to unrecognized benefits. m. 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. n. 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 $70,801 and $72,863 in research and product development for the years ended December 31, 2016 and 2015, respectively. o. Stock-Based Compensation The Company applies the provisions of FASB ASC Topic 718 “Stock Based Compensation” which requires companies to measure all employee stock-based compensation awards using a fair value method and record such expense in their financial statements. The Company recorded $198,197 and $255,672 in stock compensation expense for the years ended December 31, 2016 and 2015. p. 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. Accordingly, the Company recorded no impairment of long-lived assets during the years ended December 31, 2016 and 2015. q. Goodwill Goodwill represents the excess of purchase price of an acquisition 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 no impairment of goodwill for the years ended December 31, 2016 and 2015. r. Reclassification of Financial Statement Accounts Certain balances in previously issued financial statements have been reclassified to be consistent with the current period presentation. NOTE 3 GOING CONCERN The Company continues to accumulate significant operating losses and has an accumulated deficit of $19,648,995 at December 31, 2016. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of these uncertainties. Management has taken a number of actions to reduce expenses. Management is seeking additional funding through the capital markets to facilitate the settlement of the remaining debentures, as well as to provide operating capital for its operations. However, there is no assurance that additional funding will be available on acceptable terms, if at all.

Fixed Assets

Fixed Assets	12 Months Ended
	Dec. 31, 2016
Notes
Fixed Assets	NOTE 4 - FIXED ASSETS Fixed assets and related depreciation for the period are as follows: December 31, 2016 December 31, 2015 Machinery and equipment $ 132,002 $ 132,002 Furniture and fixtures 2,697 2,697 Computer and office equipment 2,390 2,390 Leasehold improvements 10,164 10,164 Accumulated depreciation (147,253) (147,253) Total Fixed Assets $ 0 $ 0 Depreciation expense for the years ended December 31, 2016, and 2015, was $0 and $0, respectively.

Inventories

Inventories	12 Months Ended
	Dec. 31, 2016
Notes
Inventories	NOTE 5 - INVENTORIES Inventory consisted of the following at December 31, 2016 and 2015: December 31, 2016 December 31, 2015 Finished goods 226,967 206,409 Total Inventory $ 226,967 $ 206,409

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Notes
Commitments and Contingencies	NOTE 6 - 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 $3,100 per month on a lease with an expiration date of November 30, 2017. Rent expense was $34,250 and $34,424 for the years ended December 31, 2016, and 2015, respectively. Automobile Lease – The Company currently leases one vehicle with a monthly lease payment of $624 per month. The automobile lease will expire on August 8, 2017. Automobile lease expense was $7,490 and $7,488 7,490 and $7,488 for the years ended December 31, 2016, and 2015, respectively. Minimum rental payments under the non-cancelable operating leases are as follows: Years ending December 31, Amount 2017 38,468 Thereafter 0 $ 38,468 NOTE 14 – ROYALTIES A royalty agreement was executed with JMST as a condition of the Company’s acquisitions. Terms of the royalty agreement are as follows: JMST – David Carver will receive a royalty payment on gross revenues related to revenues derived from the Carver Patents or Carver Technology. Such payments are due on revenue in excess of $500,000 derived from products under the Carver Patents or Carver Technology. The royalty payment is 2.5% on the revenue in excess of $500,000 and is payable quarterly. Payments are to be made in Reflect Scientific’s common stock not to exceed 500,000 shares in total. New products developed from the Carver Technology are subject to a royalty of 3% of gross revenues in excess of $100,000, with an additional 2% if gross revenues exceed $600,000. Royalties will also be paid in our common stock annually. Common stock will be valued at $3.00 per share for these purposes. Royalty payments are only due for years where there are valid Carver Patents. As sales did not reach or exceed the triggering threshold, no royalty payments were made under the royalty agreement during 2016 and 2015.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2016
Notes
Stockholders' Equity	NOTE 7 - PREFERRED STOCK In November 2004 the Company amended its Articles of Incorporation so as to authorize 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, 2016 and 2015, 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 Upon the potential approval by the Board of Directors, 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. NOTE 8 - COMMON STOCK TRANSACTIONS During the years ended December 31, 2016 and 2015, the following stock transactions occurred: · During 2016, the Board of Directors approved the issuance of 100,000 shares of restricted common stock, valued at $6,000 to a Director of the Company. During 2016, the Board of Directors approved the issuance of 100,000 shares of restricted common stock, valued at $6,000 to a Director of the Company. During 2016, the Board of Directors approved the issuance of 81,000 shares of restricted common stock, valued at $4,860 to the CFO of the Company. During 2016, the Board of Directors approved the issuance of 225,000 shares of restricted common stock, valued at $13,500, to employees and 579,822 shares of restricted common stock, valued at $34,789, to consultants for services rendered. · During 2015, the Board of Directors approved the issuance of 139,000 shares of restricted common stock, valued at $6,672 to a Director of the Company. During 2015, the Board of Directors approved the issuance of 250,000 shares of restricted common stock, valued at $12,000 to a Director of the Company. During 2015, the Board of Directors approved the issuance of 53,333 shares of restricted common stock, valued at $2,560 to the CFO of the Company.. During 2015, the Board of Directors approved the issuance of 250,000 shares of restricted common stock, valued at $12,000, to employees and 563,680 shares of restricted common stock, valued at $22,057, to consultants for services rendered.

Common Stock Options

Common Stock Options	12 Months Ended
	Dec. 31, 2016
Notes
Common Stock Options	NOTE 12 – COMMON STOCK OPTIONS On December 31, 2007, the Company’s Board of Directors approved an equity plan. The equity plan known as the 2007 Equity Incentive Plan (the “Plan”) reserves up to 6,000,000 shares of the Company’s authorized common stock for issuance to officers, directors, employees and consultants under the terms of the Plan. On December 31, 2009, the Company’s board of directors amended the Plan to authorize 12,000,000 shares. The Plan permits the Board of Directors to issue stock options and restricted stock. At December 31, 2016 there were no options outstanding.

Concentrations of Risk

Concentrations of Risk	12 Months Ended
	Dec. 31, 2016
Notes
Concentrations of Risk	NOTE 9 - CONCENTRATIONS OF RISK Cash in Excess of Federally Insured Amount The Company, at December 31, 2016 and 2015, and at times during those years, had cash balances that may exceed federally insured limits. 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 three major customers who represent a significant portion of revenue. These three customers represented 49% and 57% of total sales revenue for the year ended December 31, 2016 and 2015, respectively. At December 31, 2016 and 2015, accounts receivable balances from these customers represent 46% and 81%, 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.

Line of Credit

Line of Credit	12 Months Ended
	Dec. 31, 2016
Notes
Line of Credit	NOTE 10 - 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, 2016, there was no balance due on that line of credit. The line automatically renews on April 1 of each year and the $100,000 credit amount was available at December 31, 2016. The Company has an additional credit line with a different commercial bank of $50,000 secured by its inventory and accounts receivable bearing a fixed interest rate, which was 7.75% 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, 2016, there was no balance due on that line of credit. The line automatically renews on June 7 of each year.

Convertible Debentures and Warr

Convertible Debentures and Warrants	12 Months Ended
	Dec. 31, 2016
Notes
Convertible Debentures and Warrants	NOTE 11 – CONVERTIBLE DEBENTURES AND WARRANTS On June 29, 2007, the Company entered into an agreement to sell $2,500,000 in 12% senior convertible debentures with a maturity date of June 29, 2009. The debentures are convertible at $0.65 per share. The agreement provided for the issuance of 1,923,077 A warrants and 1,923,077 B warrants. The warrants are exercisable at a price of $0.80 per share for the A warrants and $1.00 per share for the B warrants. As payment for services provided to bring this transaction to completion, the Company also issued 192,308 Series A warrants and 192,308 Series B. All outstanding unexercised warrants expired June 29, 2012. At December 31, 2014, the remaining outstanding indebtedness for the convertible debentures in default was $650,000, including the default penalty. The debentures carried an 18% interest rate. The Company had accrued $58,500 in interest during the six months ended June 30, 2015. The total accrued interest on this remaining debenture was $705,375 as of June 1, 2015. The holder of the debentures filed bankruptcy in 2009. No communication from the debenture holder has been received since that time. Under laws in the State of New York, which is the judicial jurisdiction of the agreement, written contracts have a statute of limitations of six years. As that six year period has passed, management made the decision, after receiving an opinion from legal counsel, to remove from its books the debentures and the related default penalty and accrued interest, the aggregate of which totals $1,355,375.

Intangible Assets and Goodwill

Intangible Assets and Goodwill	12 Months Ended
	Dec. 31, 2016
Notes
Intangible Assets and Goodwill	NOTE 13 – INTANGIBLE ASSETS Definite lived intangible assets are stated at cost and amortized using the straight-line method. The remaining lives over which the intangible assets will be amortized is approximately 2 years, at which time the intangible assets will become fully amortized. Intangible assets and related amortization and impairment for the period are as follows: December 31, 2016 Cost Accumulated Amortization Net Book Value Patents $1,403,045 $1,403,045 $0 Customer lists 414,532 414,532 0 Totals $1,817,577 $1,817,577 $0 December 31, 2015 Cost Accumulated Amortization Net Book Value Patents $1,403,045 $1,401,179 $1,866 Customer lists 414,532 411,082 3,450 Totals $1,817,577 $1,812,261 $5,316 Amortization expense for the years ended December 31, 2016, and 2015, was $5,316 and $28,727JAMWER»], respectively.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Notes
Income Taxes	NOTE 15 – INCOME TAXES The provision (benefit) for income taxes for the years ended December 31, 2016 and 2015 consist of the following: 2016 2015 Federal: Current $ 0 $ 0 Deferred (26,093) 548,820 State: Current 0 0 Deferred (807) 1,700 Valuation allowance 26,900 (550,520) Total $ 0 $ 0 Net deferred tax assets consist of the following components as of December 31, 2016 and 2015: 2016 2015 Deferred tax assets (liabilities): NOL Carryover $ 2,359,051 $ 2,233,958 Stock Based Compensation 158,854 89,485 Depreciation and Amortization (355,962) (184,846) Inventory Reserves (3,800) (7,354) R&D Tax Credits (39,667) (39,667) Debenture Interest Payable (474,381) (474,381) Other Reserves 19,884 19,884 Valuation Allowance (1,663,979) $ (1,637,079) Net deferred tax asset (liability) $ 0 0 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, 2016 and 2015 due to the following: 2016 2015 Tax at statutory rate $ (75,669) $ 292,578 Effects of: Debenture write-off 0 225,019 Meals and Entertainment (3,506) 0 Stock Based Compensation (69,369) (89,485) Depreciation and Amortization 125,853 115,054 Inventory Reserve (3,553) 7,354 Other, net (656) 0 Change in Valuation Allowance 26,900 $ (550,520) Total $ 0 0 At December 31, 2016, the Company had net operating loss carryforwards of approximately $6,740,147 that may be offset against future income from the year 2016 through 2036. No tax benefit has been reported in the December 31, 2016 consolidated financial statements since the potential tax benefit is offset by a valuation allowance of the same amount. The valuation allowance increased by $26,900 to $1,663,979 as of December 31, 2016.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2016
Notes
Related Party Transactions	NOTE 16 – RELATED PARTY TRANSACTIONS Stock Issuances In June 2016 the Board of Directors approved the issuance of 3,356,750 shares of restricted common stock to the President/CEO. In December 2016 the Board of Directors approved the issuance of 281,000 shares of restricted common stock to officers and directors.

Fourth Quarter Adjustments

Fourth Quarter Adjustments	12 Months Ended
	Dec. 31, 2016
Notes
Fourth Quarter Adjustments	NOTE 17 – FOURTH QUARTER ADJUSTMENTS In June 2016, the Board of Directors approved the issuance of 3,356,750 shares of restricted common stock, valued at $201,495, to the President/CEO. The total financial impact of this transaction was incorrectly recorded in the 4 th nd rd Three Months Ended 6/30/16 Three Months Ended 9/30/16 Net income (loss) as previously reported $ 81,795 $(49,920) Adjustment (26,672) (87,637) Net income (loss) as adjusted 55,123 (137,557) The adjustment did not have an effect on Earnings (loss) per share for either of the periods indicated above.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2016
Notes
Subsequent Events	NOTE 18 – SUBSEQUENT EVENTS None.

Organization, Consolidation a21

Organization, Consolidation and Presentation of Financial Statements (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Basis of Financial Statement Presentation	NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS Cole, Inc. (the Company) was incorporated under the laws of the State of Utah on November 3, 1999. 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 has two wholly owned subsidiaries, Cryometrix and Julie Martin Scientific Technology, which are described below. Reflect Scientific Reflect Scientific designs, develops and sells scientific equipment for the Life Science and Manufacturing industries. The Company’s business activities include the manufacture and distribution of unique laboratory consumables and disposables such as filtration and purification products, customized sample handling vials, electronic wiring assemblies, high temperature silicone, graphite and vespel/graphite sealing components for use by original equipment manufacturers (“OEM”) in the chemical analysis industries, primarily in the field of gas/liquid chromatography. The Company’s chemical detector products serve the analytical instrumentation sector of the Life Sciences market. These optically based chemical detection instruments provide a cost-effective, high-performance alternative for original equipment manufacturers (OEM). One major use for these detectors is the analysis of whole blood for metabolic diseases. Cryometrix The Company’s Cryometrix ultra low temperature freezers have technologies that provide energy savings and other critically important benefits to cryo-storage customers in the Life Science related industries. Ultra low temperature freezers are used in multiple industries for the storage of everything from blood to cancer vaccines. These types of freezers are used by companies such as hospitals and biotechnology research facilities. The adaptation of the freezer technology to refrigeration systems used on trailers (“reefers”) for transporting perishable items opens a significant new market. Trailers can easily be retrofit with the Cryogenix unit, which provides pollutant free and more efficient operations at a cost savings compared to the diesel powered units currently used. Julie Martin Scientific Technology (“JMST”) The Company manufactures and sells a line of chemical detectors which have broad application in research facilities and laboratories. The detectors have a price advantage over competitive products, making them affordable for use in laboratories at educational institutions. The sale of chemical detectors also generates follow on sales of consumable supplies.
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 Revenue is only recognized on product sales once the product has been shipped to the customer, persuasive evidence of an agreement exists, the price is fixed or determinable, and collectability is reasonably assured. The Company sells its products in both the US and internationally through direct sales and independent distributors.
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. The Company charged $ 0 to bad debt expense for the years ended December 31, 2016 and 2015. As the Company has historically experienced minimal bad debts, management feels the allowance for doubtful accounts balance of $ 4,000 at December 31, 2016 to be an adequate reserve based on the experience seen over multiple years.
Fixed Assets	f. Fixed Assets Fixed assets 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 fixed assets are depreciated range from 5 to 7 years, except for computer equipment, which is depreciated over a 3 year life.
Inventory	g. Inventory 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.
Advertising Expense	h. Advertising Expense The Company follows the policy of charging the costs of advertising to expense as incurred. The Company recognized $ 3,461 and $ 8,847 of advertising expense during the years ended December 31, 2016, and 2015, respectively.
Recent Accounting Pronouncements	i. Newly Issued Accounting Pronouncements In October 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“AASU”) 2016-16, Income Taxes (Topic 740); Intra-Entity Transfers of Assets Other Than Inventory. This ASU requires entities to recognize the income tax consequences of many intercompany asset transfers at the transaction date. The seller and buyer will immediately recognize the current and deferred income tax consequences of an intercompany transfer of an asset other than inventory. The tax consequences were previously deferred until the asset is sold to a third part or recovered through use. This guidance will become effective on January 1, 2018. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230); Classification of Certain Cash Receipts and Cash Payments. This ASU addresses the following eight specific cash flow issues: Debt costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This guidance will become effective on January 1, 2018. We do not expect the adoption of this ASU to have a material impact on our Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718); Improvements to Employee Share-Based Payments Accounting. The ASU changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as the classification of related matters in the statement of cash flows. This guidance will become effective January 1, 2017. We do not expect the adoption of this ASU to have a material impact on our Consolidated Financial Statements. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2016-02, “Leases.” The Company has reviewed all other 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	j. 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, 2016 and 2015, the Company had no common stock equivalents.
Shipping and Handling Fees and Costs	k. Shipping and Handling Fees and Costs The Company records all shipping and handling costs as operating costs. Freight paid on outgoing shipments in 2016 was $37,411 and is recorded in general and administrative expense.
Income Taxes	l. 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, 2016 and 2015, 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, 2016 and 2015 relating to unrecognized benefits.
Principles of Consolidation	m. 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	n. 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 $70,801 and $72,863 in research and product development for the years ended December 31, 2016 and 2015, respectively.
Stock Based Compensation	o. Stock-Based Compensation The Company applies the provisions of FASB ASC Topic 718 “Stock Based Compensation” which requires companies to measure all employee stock-based compensation awards using a fair value method and record such expense in their financial statements. The Company recorded $198,197 and $255,672 in stock compensation expense for the years ended December 31, 2016 and 2015.
Intangible Assets	p. 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. Accordingly, the Company recorded no impairment of long-lived assets during the years ended December 31, 2016 and 2015. q. Goodwill Goodwill represents the excess of purchase price of an acquisition 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 no impairment of goodwill for the years ended December 31, 2016 and 2015.
Reclassification of Financial Statement Accounts	r. Reclassification of Financial Statement Accounts Certain balances in previously issued financial statements have been reclassified to be consistent with the current period presentation.

Fixed Assets (Tables)

Fixed Assets (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Property, Plant and Equipment	December 31, 2016 December 31, 2015 Machinery and equipment $ 132,002 $ 132,002 Furniture and fixtures 2,697 2,697 Computer and office equipment 2,390 2,390 Leasehold improvements 10,164 10,164 Accumulated depreciation (147,253) (147,253) Total Fixed Assets $ 0 $ 0

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Inventories	December 31, 2016 December 31, 2015 Finished goods 226,967 206,409 Total Inventory $ 226,967 $ 206,409

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Schedule of Future Minimum Rental Payments for Operating Leases	Years ending December 31, Amount 2017 38,468 Thereafter 0 $ 38,468

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Intangible Assets	December 31, 2016 Cost Accumulated Amortization Net Book Value Patents $1,403,045 $1,403,045 $0 Customer lists 414,532 414,532 0 Totals $1,817,577 $1,817,577 $0 December 31, 2015 Cost Accumulated Amortization Net Book Value Patents $1,403,045 $1,401,179 $1,866 Customer lists 414,532 411,082 3,450 Totals $1,817,577 $1,812,261 $5,316

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Schedule of Components of Income Tax Expense (Benefit)	2016 2015 Federal: Current $ 0 $ 0 Deferred (26,093) 548,820 State: Current 0 0 Deferred (807) 1,700 Valuation allowance 26,900 (550,520) Total $ 0 $ 0
Schedule of Deferred Tax Assets	2016 2015 Deferred tax assets (liabilities): NOL Carryover $ 2,359,051 $ 2,233,958 Stock Based Compensation 158,854 89,485 Depreciation and Amortization (355,962) (184,846) Inventory Reserves (3,800) (7,354) R&D Tax Credits (39,667) (39,667) Debenture Interest Payable (474,381) (474,381) Other Reserves 19,884 19,884 Valuation Allowance (1,663,979) $ (1,637,079) Net deferred tax asset (liability) $ 0 0
Schedule of Effective Income Tax Rate Reconciliation	2016 2015 Tax at statutory rate $ (75,669) $ 292,578 Effects of: Debenture write-off 0 225,019 Meals and Entertainment (3,506) 0 Stock Based Compensation (69,369) (89,485) Depreciation and Amortization 125,853 115,054 Inventory Reserve (3,553) 7,354 Other, net (656) 0 Change in Valuation Allowance 26,900 $ (550,520) Total $ 0 0

Fourth Quarter Adjustments (Tab

Fourth Quarter Adjustments (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Schedule of Error Corrections and Prior Period Adjustments	Three Months Ended 6/30/16 Three Months Ended 9/30/16 Net income (loss) as previously reported $ 81,795 $(49,920) Adjustment (26,672) (87,637) Net income (loss) as adjusted 55,123 (137,557)

Organization, Consolidation a28

Organization, Consolidation and Presentation of Financial Statements (Details)	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Details
Cash Equivalents Maturity	90
Allowance for Doubtful Accounts Receivable	$ 0
Provision for Doubtful Accounts	$ 4,000
Property Plant And Equipment Usefule Life Minimum	5
Property Plant And Equipment Usefule Life Maximum	7
computer equipment useful life	3
Advertising Expense	$ 3,461	$ 8,847
Shipping, Handling and Transportation Costs	37,411
Research and development expense	70,801	72,863
common stock issued to employee amount	$ 198,197	$ 255,672

Going Concern (Details)

Going Concern (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Details
Accumulated deficit	$ 19,648,995	$ 19,432,799

Fixed Assets (Details)

Fixed Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Details
Machinery and Equipment, Gross	$ 132,002	$ 132,002
Furniture and Fixtures, Gross	2,697	2,697
Computer And Office Equipment	2,390	2,390
Leasehold Improvements, Gross	10,164	10,164
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	(147,253)	(147,253)
FIXED ASSETS, NET	0	0
Depreciation	$ 0	$ 0

Inventories (Details)

Inventories (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Details
Inventory, Finished Goods, Gross	$ 226,967	$ 206,409
Inventory, net	$ 226,967	$ 206,409

Commitments and Contingencies32

Commitments and Contingencies (Details) - USD ($)	12 Months Ended		35 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Nov. 30, 2017
Details
Rent expense	$ 34,250	$ 34,424	$ 3,100
Automobile lease 1 monthly payment	624
Automobile lease expense	7,490	$ 7,488
Operating Leases, Future Minimum Payments, Due in Rolling Year Two	38,468
Operating Leases, Future Minimum Payments, Due Thereafter	0
Operating Leases, Future Minimum Payments Due	38,468
RevenueThreshold for Carver Royalty Payment	$ 500,000
Carver Royalty Percent	2.50%
Royalty Percent On Gross Revenues In Excess Of $100,000	3.00%
Royalty On Gross Revenues In Excess Amount	$ 100,000
Additional Royalty Percent On Gross Revenues In Excess Of $600,000	2.00%
Additional Percent Royalty On Gross Revenues In Excess Amount	$ 600,000
Carver Common Stock SharesValue Per Share	$ 3

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Details
Preferred stock authorized	5,000,000	5,000,000
preferred stock shares authorized Series A	750,000
preferred Stock Dividend Rate Series A	8.00%
Preferred Stock Shares Annual Dividend Per Share Series A	$ 1
Preferred Stock, Conversion Basis	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.
total compensation shares issued	3,356,750	3,000,000
Value Of President and CEO Share Issuance	$ 201,495	$ 225,000
Director 1 Shares Issued	100,000	139,000
Value of Director 1 Share Issuance	$ 6,000	$ 6,672
Director 2 Shares Issued	100,000	250,000
Value of Director 2 Share Issuance	$ 6,000	$ 12,000
CFO Shares Issued	81,000	53,333
Value Of CFO Share Issuance	$ 4,860	$ 2,560
Shares Issued To Employees	225,000	250,000
Value Of Share Issuance To Employees	$ 13,500	$ 12,000
Shares Issued To Consultants	579,822	563,680
Value Of Share Issuance To Consultants	$ 34,789	$ 22,057

Common Stock Options (Details)

Common Stock Options (Details)	12 Months Ended
	Dec. 31, 2016shares
Details
Share-based Compensation Arrangement Previous Shares Authorized	6,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	12,000,000

Concentrations of Risk (Details

Concentrations of Risk (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Details
concentration risk revenue	49.00%	57.00%
concentration risk accounts receivable	46.00%	81.00%

Line of Credit (Details)

Line of Credit (Details)	12 Months Ended
	Dec. 31, 2016USD ($)
Details
Proceeds from Secured Lines of Credit	$ 100,000
Accounts Payable, Interest-bearing, Interest Rate	5.50%
additional credit line total amount	$ 50,000
additional credit line interest rate	7.75%

Convertible Debentures and Wa37

Convertible Debentures and Warrants (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Details
Debt Instrument, Convertible, Terms of Conversion Feature	On June 29, 2007, the Company entered into an agreement to sell $2,500,000 in 12% senior convertible debentures with a maturity date of June 29, 2009. The debentures are convertible at $0.65 per share. The agreement provided for the issuance of 1,923,077 A warrants and 1,923,077 B warrants. The warrants are exercisable at a price of $0.80 per share for the A warrants and $1.00 per share for the B warrants. As payment for services provided to bring this transaction to completion, the Company also issued 192,308 Series A warrants and 192,308 Series B. All outstanding unexercised warrants expired June 29, 2012.
Convertible Debt, Current			$ 650,000
Convertible Debentures Interest Rate	18.00%
Amount of Convertible Debentures accrued interest	$ 58,500
Remaining Outstanding Debenture Accrued Interest	705,375
Gain on extinguishment of debt	$ 0	$ 1,355,375

Intangible Assets and Goodwil38

Intangible Assets and Goodwill (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Details
Finite-Lived Patents, Gross	$ 1,403,045	$ 1,403,045
Accumulated Amortization Patents	1,403,045	1,401,179
Net Book Value Patents	0	1,866
Cost Customer Lists	414,532	414,532
Accumulated Amortization Customer Lists	414,532	411,082
Net Book Value Customer Lists	0	3,450
Finite-Lived Intangible Assets, Gross		1,817,577
Accumulated Amortization Total	1,817,577	1,812,261
Intangible assets, net	0	5,316
Amortization	$ 5,316	$ 28,727

Income Taxes (Details)

Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Details
Current Federal tax	$ 0	$ 0
Deferred Federal Income Tax Expense (Benefit)	(26,093)	548,820
Current State tax	0	0
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability	(807)	1,700
Change in Valuation Allowance	26,900	(550,520)
Other Income Tax Expense (Benefit), Continuing Operations	0	0
Operating Loss Carryforwards	2,359,051	2,233,958
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost	158,854	89,485
Deferred Tax Assets, Other	(355,962)	(184,846)
Deferred Tax Assets, Inventory	(3,800)	(7,354)
Deferred Tax Liabilities, Deferred Expense, Capitalized Research and Development Costs	(39,667)	(39,667)
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Asset Retirement Obligations	(474,381)	(474,381)
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Reserves	19,884	19,884
Deferred Tax Assets, Valuation Allowance	(1,663,979)	(1,637,079)
Deferred Tax Assets, Net	0	0
Tax at statutory rate	(75,669)	292,578
Debenture Write-off	0	225,019
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Meals and Entertainment, Amount	(3,506)	0
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Amount	(69,369)	(89,485)
Depreciation and Amortization	125,853	115,054
Effective Income Tax Rate Reconciliation, Deduction, Other, Amount	(3,553)	7,354
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount	(656)	0
Valuation Allowances and Reserves, Period Increase (Decrease)	26,900	(550,520)
Total	0	0
Operating Loss Carryforwards, Valuation Allowance	6,740,147
Deferred Tax Assets, Valuation Allowance	$ 1,663,979	$ 1,637,079

Related Party Transactions (Det

Related Party Transactions (Details) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Details
total compensation shares issued	3,356,750	3,000,000
Officer and Director Shares Issued	281,000

Fourth Quarter Adjustments (Det

Fourth Quarter Adjustments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Details
total compensation shares issued	3,356,750	3,000,000
Value Of President and CEO Share Issuance	$ 201,495	$ 225,000