Reflect Scientific (RSCF) 10-Q 19 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 18, 2019
Details
Registrant CIK	0001103090
Fiscal Year End	--12-31
Registrant Name	REFLECT SCIENTIFIC INC
SEC Form	10-Q
Period End date	Sep. 30, 2019
Tax Identification Number (TIN)	87-0642556
Number of common stock shares outstanding		79,108,086
Filer Category	Non-accelerated Filer
Current with reporting	Yes
Interactive Data Current	Yes
Shell Company	false
Small Business	true
Emerging Growth Company	false
Entity File Number	000-31377
Entity Incorporation, State or Country Code	UT
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
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Document Quarterly Report	true
Document Transition Report	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2019	Dec. 31, 2018
CURRENT ASSETS
Cash	$ 457,094	$ 220,427
Accounts receivable, net	40,689	155,543
Inventory, net	182,724	142,325
Prepaid assets	3,510	3,510
Total Current Assets	684,017	521,805
FIXED ASSETS, NET	4,781	7,766
OTHER ASSETS
Operating lease right-of-use assets	61,137	0
Goodwill	60,000	60,000
Deposits	3,100	3,100
Total Other Assets	124,237	63,100
TOTAL ASSETS	813,035	592,671
CURRENT LIABILITIES
Accounts payable and accrued expense	61,053	52,450
Short-term lines of credit	9,010	9,878
Customer deposits	185,731	12,500
Operating lease liabilities - current portion	48,765	0
Income taxes payable	100	100
Total Current Liabilities	304,659	74,928
Operating lease liabilities - long term	12,877	0
Total Liabilities	317,536	74,928
STOCKHOLDERS' 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; 79,108,086 and 79,108,086 issued and outstanding, respectively	791,081	791,081
Additional paid in capital	20,027,369	20,027,369
Accumulated deficit	(20,322,951)	(20,300,707)
Total Stockholders' Equity	495,499	517,743
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 813,035	$ 592,671

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets - Parenthetical - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Details
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	0	0
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Outstanding	79,108,086	79,108,086
Common Stock, Shares, Issued	79,108,086	79,108,086

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Details
REVENUES	$ 366,431	$ 359,151	$ 977,312	$ 1,119,491
COST OF GOODS SOLD	101,366	151,178	300,901	381,015
GROSS PROFIT	265,065	207,973	676,411	738,476
OPERATING EXPENSES
Salaries and wages	113,611	128,339	343,924	400,873
Rent expense	8,977	6,379	28,173	27,830
Research and development expense	75,417	34,542	105,040	49,447
General and administrative expense	63,823	80,832	220,935	421,469
Total Operating Expenses	261,828	250,090	698,072	899,619
OPERATING INCOME (LOSS)	3,237	(42,117)	(21,661)	(161,143)
OTHER EXPENSE
Total Other Income (Expenses)	(1,716)	(456)	(583)	(456)
NET INCOME (LOSS) BEFORE TAXES	1,521	(42,573)	(22,244)	(161,599)
Provision for income taxes	0	0	0	0
NET INCOME (LOSS)	$ 1,521	$ (42,573)	$ (22,244)	$ (161,599)
NET INCOME (LOSS) PER SHARE - BASIC AND DILUTED	$ 0	$ 0	$ 0	$ 0
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC AND DILUTED	79,108,086	76,512,086	79,108,086	73,959,705

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($)	Total	Common Stock	Additional Paid-in Capital	Retained Earnings
Common Stock, Shares, Outstanding		71,312,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 455,426	$ 713,121	$ 19,793,489	$ (20,051,184)
Balance, December 31, 2017 at Dec. 31, 2017	455,426	$ 713,121	19,793,489	(20,051,184)
Balance, December 31, 2017 at Dec. 31, 2017		71,312,086
Net income (loss)	98,721	$ 0	0	98,721
Common Stock, Shares, Outstanding		71,312,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	455,426	$ 713,121	19,793,489	(20,051,184)
Common Stock, Shares, Outstanding, Ending Balance at Mar. 31, 2018		71,312,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Mar. 31, 2018	554,147	$ 713,121	19,793,489	(19,952,463)
Balance, December 31, 2017 at Dec. 31, 2017	455,426	$ 713,121	19,793,489	(20,051,184)
Balance, December 31, 2017 at Dec. 31, 2017		71,312,086
Net income (loss)	(161,599)
Stock issued for compensation	40,000
Common Stock, Shares, Outstanding		71,312,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	455,426	$ 713,121	19,793,489	(20,051,184)
Common Stock, Shares, Outstanding, Ending Balance at Sep. 30, 2018		76,512,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Sep. 30, 2018	501,827	$ 765,121	19,949,489	(20,212,783)
Common Stock, Shares, Outstanding		71,312,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	554,147	$ 713,121	19,793,489	(19,952,463)
Balance, December 31, 2017 at Mar. 31, 2018	554,147	$ 713,121	19,793,489	(19,952,463)
Balance, December 31, 2017 at Mar. 31, 2018		71,312,086
Net income (loss)	(217,747)			(217,747)
Stock issued for consulting services	168,000	$ 42,000	126,000	0
Stock issued for consulting services		4,200,000
Stock issued for compensation	40,000	$ 10,000	30,000	0
Stock issued for compensation		1,000,000
Common Stock, Shares, Outstanding		71,312,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	554,147	$ 713,121	19,793,489	(19,952,463)
Common Stock, Shares, Outstanding, Ending Balance at Jun. 30, 2018		76,512,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Jun. 30, 2018	544,400	$ 765,121	19,949,489	(20,170,210)
Common Stock, Shares, Outstanding		76,512,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	544,400	$ 765,121	19,949,489	(20,170,210)
Net income (loss)	(42,573)			(42,573)
Common Stock, Shares, Outstanding		76,512,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	544,400	$ 765,121	19,949,489	(20,170,210)
Common Stock, Shares, Outstanding, Ending Balance at Sep. 30, 2018		76,512,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Sep. 30, 2018	501,827	$ 765,121	19,949,489	(20,212,783)
Common Stock, Shares, Outstanding		76,512,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 501,827	$ 765,121	19,949,489	(20,212,783)
Common Stock, Shares, Outstanding	79,108,086	79,108,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 517,743	$ 791,080	20,027,369	(20,300,707)
Balance, December 31, 2017 at Dec. 31, 2018	$ 517,743	$ 791,080	20,027,369	(20,300,707)
Balance, December 31, 2017 at Dec. 31, 2018	79,108,086	79,108,086
Net income (loss)	$ (5,535)	$ 0	0	(5,535)
Common Stock, Shares, Outstanding	79,108,086	79,108,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 517,743	$ 791,080	20,027,369	(20,300,707)
Common Stock, Shares, Outstanding, Ending Balance at Mar. 31, 2019		79,108,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Mar. 31, 2019	512,208	$ 791,080	20,027,369	(20,306,242)
Balance, December 31, 2017 at Dec. 31, 2018	$ 517,743	$ 791,080	20,027,369	(20,300,707)
Balance, December 31, 2017 at Dec. 31, 2018	79,108,086	79,108,086
Net income (loss)	$ (22,244)
Stock issued for compensation	$ 0
Common Stock, Shares, Outstanding	79,108,086	79,108,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 517,743	$ 791,080	20,027,369	(20,300,707)
Common Stock, Shares, Outstanding, Ending Balance at Sep. 30, 2019	79,108,086	79,108,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Sep. 30, 2019	$ 495,499	$ 791,081	20,027,369	(20,322,951)
Common Stock, Shares, Outstanding		79,108,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	512,208	$ 791,080	20,027,369	(20,306,242)
Balance, December 31, 2017 at Mar. 31, 2019	512,208	$ 791,080	20,027,369	(20,306,242)
Balance, December 31, 2017 at Mar. 31, 2019		79,108,086
Net income (loss)	(18,230)	$ 0	0	(18,230)
Common Stock, Shares, Outstanding		79,108,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	512,208	$ 791,080	20,027,369	(20,306,242)
Common Stock, Shares, Outstanding, Ending Balance at Jun. 30, 2019		79,108,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Jun. 30, 2019	493,978	$ 791,081	20,027,369	(20,324,472)
Common Stock, Shares, Outstanding		79,108,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	493,978	$ 791,081	20,027,369	(20,324,472)
Net income (loss)	$ 1,521			1,521
Common Stock, Shares, Outstanding	79,108,086	79,108,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 493,978	$ 791,081	20,027,369	(20,324,472)
Common Stock, Shares, Outstanding, Ending Balance at Sep. 30, 2019	79,108,086	79,108,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Sep. 30, 2019	$ 495,499	$ 791,081	20,027,369	(20,322,951)
Common Stock, Shares, Outstanding	79,108,086	79,108,086
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 495,499	$ 791,081	$ 20,027,369	$ (20,322,951)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (22,244)	$ (161,599)
Adjustments to reconcile net income to net cash used in operating activities:
Common stock issued for services	0	158,322
Stock issued for compensation	0	40,000
Depreciation	2,985	0
Accounts receivable	114,854	(67,554)
Inventory	(40,399)	12,542
Common stock issued for services	0	(11,159)
Accounts payable and accrued expenses	8,603	20,860
Operating lease right-of-use asset	33,950	0
Operating lease liabilities	(34,445)	0
Customer deposits	173,231	(55,783)
Net Cash (used in) provided by Operating Activities	237,535	(67,371)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments on short-term line of credit	(868)	0
Net Cash used in investing Activities	(868)	0
CASH FLOWS FROM FINANCING ACTIVITIES
Net funds received from line of credit	0	10,177
Net Cash provided by Financing Activities	0	10,177
NET CHANGE IN CASH	236,667	(57,194)
CASH AT BEGINNING OF PERIOD	220,427	235,858
CASH AT END OF PERIOD	457,094	178,664
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest	588	203
Income taxes	0	0
Operating lease right of use assets obtained for operating lease liabilities	$ 95,087	$ 0

Organization, Consolidation and

Organization, Consolidation and Presentation of Financial Statements	9 Months Ended
	Sep. 30, 2019
Notes
Organization, Consolidation and Presentation of Financial Statements	NOTE 1 - The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to accounting principles generally accepted in the United States of America. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted in accordance with rules and regulations of the Securities and Exchange Commission. The information furnished in the interim condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. Although management believes the disclosures and information presented are adequate to make the information not misleading, it is suggested that these interim condensed consolidated financial statements be read in conjunction with the Company’s most recent audited consolidated financial statements and notes thereto included in its December 31, 2018 financial statements. Operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. NOTE 2 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION AND LINE 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 Scientific designs, develops and sells scientific equipment for the Life Science and Manufacturing industries. The Company’s business activities include the manufacture and distribution of unique laboratory consumables and disposables such as filtration and purification products, customized sample handling vials, electronic wiring assemblies, high temperature silicone, graphite and vespel/graphite sealing components for use by original equipment manufacturers (“OEM”) in the chemical analysis industries, primarily in the field of gas/liquid chromatography. SIGNIFICANT ACCOUNTING POLICIES: PRINCIPLES OF CONSOLIDATION: USE OF ESTIMATES: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. REVENUE RECOGNITION. We have applied the new revenue standard to all contracts from the date of initial application. We recognize revenue when or as we satisfy a performance obligation. We generally satisfy performance obligations at a point in time upon shipment of goods or, with our freezers, upon final acceptance of the unit by the customer, in accordance with the terms of each contract with the customer. A part of our customer base is made up of international customers. The table below allocates revenue between domestic and international customers. September 30, 2019 September 30, 2018 Segments Consumer Products Long-term Contracts Total Consumer Products Long-term Contracts Total Domestic $ 735,566 -- 735,566 $ 845,216 -- 845,216 International 241,746 -- 241,746 274,275 -- 274,275 $ 977,312 -- 977,312 $ 1,119,491 -- 1,119,491 Components 682,537 -- 682,537 $ 792,376 -- 792,376 Engineering services 229,425 -- 229,425 327,115 -- 327,115 $ 977,312 -- 977,312 $ 1,119,491 -- 1,119,491 ACCOUNTS RECEIVABLE: Accounts receivables are presented net of an allowance for doubtful accounts. The Company maintains allowances for doubtful accounts for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. At September 30, 2019 and December 31, 2018, the Company had accounts receivable, net of the allowance, of $40,689 and $155,543, respectively. At September 30, 2019 and December 31, 2018, the allowance for doubtful accounts was $4,000 and $4,000, respectively. INVENTORY: Inventories are presented net of an allowance for obsolescence and are stated at the lower of cost or market value based upon the average cost inventory method. The Company’s inventory consists of parts for scientific vial kits, refrigerant gases, components for detectors and ultra-low temperature freezers which it builds and other scientific items. At September 30, 2019 and December 31, 2018, the Company had inventory consisting of finished goods, net of allowance, of $182,724 and $142,325, respectively. At September 30, 2019 and December 31, 2018, the allowance for obsolescence was $86,339 and $86,339, respectively. INTANGIBLE ASSETS: Costs to obtain or develop patents are capitalized and amortized over the life of the patents. Patents are amortized from the date the Company acquires or is awarded the patent over their estimated useful lives, which range from 5 to 15 years. An impairment charge is recognized if the carrying amount is not recoverable and the carrying amount exceeds the fair value of the intangible assets as determined by projected discounted net future cash flows. As of September 30, 2019 and December 31, 2018, all of the intangible assets were fully amortized. GOODWILL: Goodwill represents the excess of the Company’s acquisition cost over the fair value of net assets of the acquisition. Goodwill is not amortized, but is tested for impairment annually, or when a triggering event occurs. As described in ACS 360, the Company has adopted the goodwill impairment analysis that includes quantitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. A fair-value-based test is applied at the overall Company level. The test compares the estimated fair value of the Company at the date of the analysis to the carrying value of its net assets. The analysis also requires various judgments and estimates, including general and macroeconomic conditions, industry and the Company’s targeted market conditions, as well as relevant entity-specific events, such as a change in the market for the Company’s products and services. After considering the qualitative factors that would indicate a need for interim impairment of goodwill and applying the two-step process described in ASC 360, management has determined that the value of Company’s assets is not more likely than not less than the carrying value of the Company including goodwill, and that no impairment charge needs be recognized during the reporting periods. LEASES: In February of 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-02 - Leases (Topic 842), which significantly amends the way companies are required to account for leases. Under the updated leasing guidance, some leases that did not have to be reported previously are now required to be presented as an asset and liability on the balance sheet. In addition, for certain leases, what was previously classified as an operating expense must now be allocated between amortization expense and interest expense. The Company adopted this update as of January 1, 2019 using the modified retrospective transition method. Prior periods have not been restated. Upon implementation, the Company recognized an initial right-of-use asset of $95,087 and lease liability of $95,087. Due to the simplistic nature of the Company's leases, no change to retained earnings was required. See Note 4 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. NET INCOME (LOSS) PER SHARE: The computation of basic profit and loss per share of common stock is based on the weighted average number of shares outstanding during the period. Diluted EPS is computed by dividing net earnings by the weighted-average number of common shares and dilutive common stock equivalents during the period. Common stock equivalents are not used in calculating dilutive EPS when their inclusion would be anti-dilutive. At September 30, 2019 and 2018, the Company had no common stock equivalents. RECENT ACCOUNTING PRONOUNCEMENTS: Leases Leases June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting Compensation - Stock Compensation The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its consolidated results of operation, financial position and cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its current or future earnings or operations.

Going Concern

Going Concern	9 Months Ended
	Sep. 30, 2019
Notes
Going Concern	NOTE 3 – GOING CONCERN The Company continues to accumulate significant operating losses and has an accumulated deficit of $20,322,951 at September 30, 2019. These factors raise substantial doubt about the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial statements. 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.

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Notes
Leases	NOTE 4 - LEASES We adopted ASC 842 using the modified retrospective approach, which allows us not to restate our comparative periods prior to the adoption of the standard on January 1, 2019. As a result, prior period presented before this adoption are not adjusted to reflect the effect of this new standard. We have operating leases for our office and warehouse facility as well as for an automobile. We used the lease termination dates of November 30, 2020 for the building and July 7, 2021 for the automobile to calculate right of use (“ROU”) assets and lease liabilities. The following was included in our consolidated condensed balance sheet as of September 30, 2019: Leases As of September 30, 2019 Assets ROU operating lease assets $ 61,137 Liabilities Operating lease liabilities – current portion $ 48,765 Operating lease liabilities 12,877 Total operating lease liabilities $ 61,642 We recognize lease expense on a straight-line basis over the term of the lease. Lease Cost Nine Months Ended September 30, 2019 Operating lease cost Administrative expenses $ 5,754 Rent expense 28,173 Total operating lease cost $ 33,927 Our building lease does not specify an implicit rate of interest. Therefore, we estimate our incremental borrowing rate, which is defined as the interest rate we would pay to borrow on a collateralized basis, considering such factors as length of lease term and the risks of the economic environment in which the leased asset operates. As of September 30, 2019, the following disclosures for remaining lease term and incremental borrowing rates were applicable: Supplemental Disclosures Nine Months Ended September 30, 2019 Weighted average remaining lease term 1.29 years Weighted average discount rate 7% years As of September 30, 2019, maturities of operating lease liabilities were the following: Years ended December 31, Amounts under operating leases Remaining 2019 $ 12,749 2020 48,160 2021 3,774 Total lease payments 64,682 Less imputed interest (3,040) Total $ 61,642

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2019
Notes
Subsequent Events	NOTE 5 – SUBSEQUENT EVENTS In accordance with ASC 855-10 management reviewed all material events through the date of this report. There are no material subsequent events to report.

Organization, Consolidation a_2

Organization, Consolidation and Presentation of Financial Statements (Policies)	9 Months Ended
	Sep. 30, 2019
Policies
PRINCIPLES OF CONSOLIDATION	PRINCIPLES OF CONSOLIDATION:
Estimates	USE OF ESTIMATES: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.
Revenue Recognition Accounting	REVENUE RECOGNITION. We have applied the new revenue standard to all contracts from the date of initial application. We recognize revenue when or as we satisfy a performance obligation. We generally satisfy performance obligations at a point in time upon shipment of goods or, with our freezers, upon final acceptance of the unit by the customer, in accordance with the terms of each contract with the customer. A part of our customer base is made up of international customers. The table below allocates revenue between domestic and international customers. September 30, 2019 September 30, 2018 Segments Consumer Products Long-term Contracts Total Consumer Products Long-term Contracts Total Domestic $ 735,566 -- 735,566 $ 845,216 -- 845,216 International 241,746 -- 241,746 274,275 -- 274,275 $ 977,312 -- 977,312 $ 1,119,491 -- 1,119,491 Components 682,537 -- 682,537 $ 792,376 -- 792,376 Engineering services 229,425 -- 229,425 327,115 -- 327,115 $ 977,312 -- 977,312 $ 1,119,491 -- 1,119,491
Accounts Receivable	ACCOUNTS RECEIVABLE: Accounts receivables are presented net of an allowance for doubtful accounts. The Company maintains allowances for doubtful accounts for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. At September 30, 2019 and December 31, 2018, the Company had accounts receivable, net of the allowance, of $40,689 and $155,543, respectively. At September 30, 2019 and December 31, 2018, the allowance for doubtful accounts was $4,000 and $4,000, respectively.
Inventory	INVENTORY: Inventories are presented net of an allowance for obsolescence and are stated at the lower of cost or market value based upon the average cost inventory method. The Company’s inventory consists of parts for scientific vial kits, refrigerant gases, components for detectors and ultra-low temperature freezers which it builds and other scientific items. At September 30, 2019 and December 31, 2018, the Company had inventory consisting of finished goods, net of allowance, of $182,724 and $142,325, respectively. At September 30, 2019 and December 31, 2018, the allowance for obsolescence was $86,339 and $86,339, respectively.
Intangible Assets	INTANGIBLE ASSETS: Costs to obtain or develop patents are capitalized and amortized over the life of the patents. Patents are amortized from the date the Company acquires or is awarded the patent over their estimated useful lives, which range from 5 to 15 years. An impairment charge is recognized if the carrying amount is not recoverable and the carrying amount exceeds the fair value of the intangible assets as determined by projected discounted net future cash flows. As of September 30, 2019 and December 31, 2018, all of the intangible assets were fully amortized. GOODWILL: Goodwill represents the excess of the Company’s acquisition cost over the fair value of net assets of the acquisition. Goodwill is not amortized, but is tested for impairment annually, or when a triggering event occurs. As described in ACS 360, the Company has adopted the goodwill impairment analysis that includes quantitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. A fair-value-based test is applied at the overall Company level. The test compares the estimated fair value of the Company at the date of the analysis to the carrying value of its net assets. The analysis also requires various judgments and estimates, including general and macroeconomic conditions, industry and the Company’s targeted market conditions, as well as relevant entity-specific events, such as a change in the market for the Company’s products and services. After considering the qualitative factors that would indicate a need for interim impairment of goodwill and applying the two-step process described in ASC 360, management has determined that the value of Company’s assets is not more likely than not less than the carrying value of the Company including goodwill, and that no impairment charge needs be recognized during the reporting periods.
Leases	LEASES: In February of 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-02 - Leases (Topic 842), which significantly amends the way companies are required to account for leases. Under the updated leasing guidance, some leases that did not have to be reported previously are now required to be presented as an asset and liability on the balance sheet. In addition, for certain leases, what was previously classified as an operating expense must now be allocated between amortization expense and interest expense. The Company adopted this update as of January 1, 2019 using the modified retrospective transition method. Prior periods have not been restated. Upon implementation, the Company recognized an initial right-of-use asset of $95,087 and lease liability of $95,087. Due to the simplistic nature of the Company's leases, no change to retained earnings was required. See Note 4
Research and Development Expense	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.
Earnings Per Share	NET INCOME (LOSS) PER SHARE: The computation of basic profit and loss per share of common stock is based on the weighted average number of shares outstanding during the period. Diluted EPS is computed by dividing net earnings by the weighted-average number of common shares and dilutive common stock equivalents during the period. Common stock equivalents are not used in calculating dilutive EPS when their inclusion would be anti-dilutive. At September 30, 2019 and 2018, the Company had no common stock equivalents.
Recent Accounting Pronouncements	RECENT ACCOUNTING PRONOUNCEMENTS: Leases Leases June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting Compensation - Stock Compensation The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its consolidated results of operation, financial position and cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its current or future earnings or operations.

Organization, Consolidation a_3

Organization, Consolidation and Presentation of Financial Statements (Tables)	9 Months Ended
	Sep. 30, 2019
Tables/Schedules
Disaggregation of Revenue	September 30, 2019 September 30, 2018 Segments Consumer Products Long-term Contracts Total Consumer Products Long-term Contracts Total Domestic $ 735,566 -- 735,566 $ 845,216 -- 845,216 International 241,746 -- 241,746 274,275 -- 274,275 $ 977,312 -- 977,312 $ 1,119,491 -- 1,119,491 Components 682,537 -- 682,537 $ 792,376 -- 792,376 Engineering services 229,425 -- 229,425 327,115 -- 327,115 $ 977,312 -- 977,312 $ 1,119,491 -- 1,119,491

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Tables/Schedules
Lessee, Operating Lease, Disclosure	Leases As of September 30, 2019 Assets ROU operating lease assets $ 61,137 Liabilities Operating lease liabilities – current portion $ 48,765 Operating lease liabilities 12,877 Total operating lease liabilities $ 61,642
Lease, Cost	Lease Cost Nine Months Ended September 30, 2019 Operating lease cost Administrative expenses $ 5,754 Rent expense 28,173 Total operating lease cost $ 33,927
Lessee, Operating Lease, Liability, Maturity	Years ended December 31, Amounts under operating leases Remaining 2019 $ 12,749 2020 48,160 2021 3,774 Total lease payments 64,682 Less imputed interest (3,040) Total $ 61,642

Organization, Consolidation a_4

Organization, Consolidation and Presentation of Financial Statements (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Domestic revenues			$ 735,566	$ 845,216
International revenues			241,746	274,275
REVENUES	$ 366,431	$ 359,151	977,312	1,119,491
Components revenues			682,537	792,376
Engineering services revenues			229,425	$ 327,115
Accounts receivable, net	40,689		40,689		$ 155,543
Accounts Receivable, Allowance for Credit Loss	4,000		4,000		4,000
Inventory, net	182,724		182,724		142,325
Inventory Adjustments	86,339		86,339		$ 86,339
Initial operating lease liability	$ 95,087		$ 95,087

Going Concern (Details)

Going Concern (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Details
Accumulated deficit	$ 20,322,951	$ 20,300,707

Leases (Details)

Leases (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Details
Operating lease right-of-use assets	$ 61,137		$ 61,137		$ 0
Operating lease liabilities - current portion	48,765		48,765		0
Operating lease liabilities - long term	12,877		12,877		$ 0
Operating Lease, Liability	61,642		61,642
Operating Lease, Expense			5,754
Rent expense	$ 8,977	$ 6,379	28,173	$ 27,830
Operating Lease, Cost			$ 33,927
Operating Lease, Weighted Average Remaining Lease Term	1 year 3 months 14 days		1 year 3 months 14 days
Operating Lease, Weighted Average Discount Rate, Percent	7.00%		7.00%
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year	$ 12,749		$ 12,749
Lessee, Operating Lease, Liability, Payments, Due Year Two	48,160		48,160
Lessee, Operating Lease, Liability, Payments, Due Year Three	3,774		3,774
Lessee, Operating Lease, Liability, Payments, Due	$ 64,682		64,682
Finance Lease, Interest Payment on Liability			$ (3,040)