Reflect Scientific (RSCF) 10-Q 15 Nov 21 2021 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Nov. 15, 2021
Cover [Abstract]
Entity Central Index Key	0001103090
Document Period End Date	Sep. 30, 2021
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-31377
Entity Registrant Name	REFLECT SCIENTIFIC INC
Entity Incorporation, State or Country Code	UT
Entity Tax Identification Number	87-0642556
Entity Address, Address Line One	1266 South 1380 West
Entity Address, City or Town	Orem
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84058
City Area Code	801
Local Phone Number	226-4100
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity Information, Former Legal or Registered Name	N/A
Entity Common Stock, Shares Outstanding		84,739,086

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2021	Dec. 31, 2020
CURRENT ASSETS
Cash	$ 1,143,998	$ 642,542
Accounts receivable, net	147,688	340,427
Inventory, net	585,057	438,606
Prepaid assets	22,541	24,134
Total Current Assets	1,899,284	1,445,709
OTHER ASSETS
Operating lease right-of-use assets	124,089	167,641
Goodwill	60,000	60,000
Deposits	3,100	3,100
Total Other Assets	187,189	230,741
TOTAL ASSETS	2,086,473	1,676,450
CURRENT LIABILITIES
Accounts payable and accrued expense	89,718	70,204
Contract liabilities	78,214	113,643
Operating lease liabilities - short term	54,901	58,682
Income taxes payable		100
Total Current Liabilities	222,833	242,629
LONG-TERM LIABILITIES
Operating lease liability - long-term	72,061	109,338
Loan - long-term		111,342
Total Liabilities	294,894	463,309
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 par value, authorized 5,000,000 shares; No shares issued and outstanding
Common stock, $0.01 par value, authorized 100,000,000 shares; 84,739,086 and 84,739,086 issued and outstanding, respectively	847,390	847,390
Additional paid in capital	20,201,931	20,201,931
Accumulated deficit	(19,257,742)	(19,836,180)
Total Stockholders' Equity	1,791,579	1,213,141
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 2,086,473	$ 1,676,450

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares outstanding	0	0
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Outstanding	84,739,086	84,739,086
Common Stock, Shares, Issued	84,739,086	84,739,086

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
REVENUES	$ 716,145	$ 610,085	$ 1,985,640	$ 2,096,799
COST OF GOODS SOLD	242,343	252,112	621,317	845,281
GROSS PROFIT	473,802	357,973	1,364,323	1,251,518
OPERATING EXPENSES
Salaries and wages	146,697	77,701	429,417	406,611
Research and development expense	17,544	754	45,697	190,610
General and administrative expense	149,672	75,330	422,036	309,836
Total Operating Expenses	313,913	153,785	897,150	907,057
OPERATING INCOME (LOSS)	159,889	204,188	467,173	344,461
OTHER INCOME (EXPENSE)
Gain on forgiveness of SBA loan			111,265
Other income				(132)
Total Other Income (Expenses)			111,265	(132)
NET INCOME (LOSS) BEFORE TAXES	159,889	204,188	578,438	344,329
Income tax benefit (expense)
NET INCOME (LOSS)	$ 159,889	$ 204,188	$ 578,438	$ 344,329
NET INCOME (LOSS) PER SHARE - BASIC AND DILUTED	$ 0	$ 0	$ 0.01	$ 0
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC AND DILUTED	84,739,086	84,739,086	84,739,086	84,739,086

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2019	$ 847,390	$ 20,201,931	$ (20,496,295)	$ 553,026
Balance, shares at Dec. 31, 2019	84,739,086
Net income (loss)			165,595	165,595
Balance at Mar. 31, 2020	$ 847,390	20,201,931	(20,330,700)	718,621
Balance, shares at Mar. 31, 2020	84,739,086
Balance at Dec. 31, 2019	$ 847,390	20,201,931	(20,496,295)	553,026
Balance, shares at Dec. 31, 2019	84,739,086
Net income (loss)				344,329
Balance at Sep. 30, 2020	$ 847,390	20,201,931	(20,151,966)	897,355
Balance, shares at Sep. 30, 2020	84,739,086
Balance at Mar. 31, 2020	$ 847,390	20,201,931	(20,330,700)	718,621
Balance, shares at Mar. 31, 2020	84,739,086
Net income (loss)			(25,454)	(25,454)
Balance at Jun. 30, 2020	$ 847,390	20,201,931	(20,356,154)	693,167
Balance, shares at Jun. 30, 2020	84,739,086
Net income (loss)			204,188	204,188
Balance at Sep. 30, 2020	$ 847,390	20,201,931	(20,151,966)	897,355
Balance, shares at Sep. 30, 2020	84,739,086
Balance at Dec. 31, 2020	$ 847,390	20,201,931	(19,836,180)	$ 1,213,141
Balance, shares at Dec. 31, 2020	84,739,086			84,739,086
Net income (loss)			247,768	$ 247,768
Balance at Mar. 31, 2021	$ 847,390	20,201,931	(19,588,412)	1,460,909
Balance, shares at Mar. 31, 2021	84,739,086
Balance at Dec. 31, 2020	$ 847,390	20,201,931	(19,836,180)	$ 1,213,141
Balance, shares at Dec. 31, 2020	84,739,086			84,739,086
Net income (loss)				$ 578,438
Balance at Sep. 30, 2021	$ 847,390	20,201,931	(19,257,742)	$ 1,791,579
Balance, shares at Sep. 30, 2021	84,739,086			84,739,086
Balance at Mar. 31, 2021	$ 847,390	20,201,931	(19,588,412)	$ 1,460,909
Balance, shares at Mar. 31, 2021	84,739,086
Net income (loss)			170,781	170,781
Balance at Jun. 30, 2021	$ 847,390	20,201,931	(19,417,631)	1,631,690
Balance, shares at Jun. 30, 2021	84,739,086
Net income (loss)			159,889	159,889
Balance at Sep. 30, 2021	$ 847,390	$ 20,201,931	$ (19,257,742)	$ 1,791,579
Balance, shares at Sep. 30, 2021	84,739,086			84,739,086

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 578,438	$ 344,329
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation		2,985
Amortization of operating lease right-of-use asset	43,552	45,376
Gain on forgiveness of SBA loan	(111,265)
Changes in operating assets and liabilities:
Accounts receivable	192,739	(17,438)
Inventory	(146,451)	(59,237)
Prepaid expenses	1,493	21,221
Accounts payable and accrued expenses	19,437	(62,831)
Operating lease liabilities	(41,058)	(45,992)
Customer deposits	(35,429)	(325,902)
Net Cash provided by (used in) Operating Activities	501,456	(97,489)
CASH FLOWS FROM FINANCING ACTIVITIES
Net funds received from PPP loan		121,297
Net funds received from line of credit		(8,238)
Net cash provided by financing activities		113,059
NET CHANGE IN CASH	501,456	15,570
CASH AT BEGINNING OF PERIOD	642,542	555,156
CASH AT END OF PERIOD	1,143,998	570,726
Cash Paid For:
Interest		588
Income taxes

BASIS OF FINANCIAL STATEMENT PR

BASIS OF FINANCIAL STATEMENT PRESENTATION	9 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF FINANCIAL STATEMENT PRESENTATION	NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION 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, 2020 financial statements. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021.

ORGANIZATION AND SUMMARY OF SIG

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION AND LINE OF BUSINESS: Reflect Scientific, Inc. (the Company) was incorporated under the laws of the State of Utah on November 3, 1999 as Cole, Inc. The Company was organized to engage in any lawful activity for which corporations may be organized under the Utah Revised Business Corporation Act. On December 30, 2003 the Company changed its name to Reflect Scientific, Inc. Reflect Scientific 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: The accompanying consolidated financial statements include the accounts of Reflect Scientific, Inc. and its wholly owned subsidiary, Cryometrix. Intercompany transactions and accounts have been eliminated in consolidation. 11 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. For the Three Months Ended For the Three Months Ended September 30, 2021 September 30, 2020 Segments Total Total Domestic $ 422,866 $ 422,866 $ 373,468 $ 373,468 International 293,279 293,279 236,617 236,617 $ 716,145 $ 716,145 $ 610,085 $ 610,085 Components $ 293,266 $ 293,266 $ 304,995 $ 304,995 Equipment 422,879 422,879 305,090 305,090 $ 716,145 $ 716,145 $ 610,085 $ 610,085 For the Nine Months Ended For the Nine Months Ended September 30, 2021 September 30, 2020 Segments Total Total Domestic $ 1,023,314 $ 1,023,314 $ 1,523,545 $ 1,523,545 International 962,326 962,326 573,254 573,254 $ 1,985,640 $ 1,985,640 $ 2,096,799 $ 2,096,799 Components $ 735,539 $ 735,539 $ 768,409 $ 768,409 Equipment 1,250,101 1,250,101 1,328,390 1,328,390 $ 1,985,640 $ 1,985,640 $ 2,096,799 $ 2,096,799 12 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, 2021 and December 31, 2020, the Company had accounts receivable, net of the allowance, of $147,688 and $340,427, respectively. At September 30, 2021 and December 31, 2020, 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, 2021 and December 31, 2020, the Company had inventory consisting of raw materials and finished goods, net of allowance, of $585,057 and $438,606, respectively. Of the total raw materials represented $5,353 at September 30, 2021 and $10,767 at December 31, 2020. At September 30, 2021 and December 31, 2020, the allowance for obsolescence was $106,044 and $106,044, 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. We perform an impairment analysis on an annual basis. The Company’s analysis did not indicate any impairment of intangible assets as of the impairment analysis conducted December 31, 2020. As of September 30, 2021 and December 31, 2020, 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: The Company, in accordance with ASC 842, accounts for leases as right-of-use assets (“ROU”) and lease liabilities on the balance sheet. The Company elected not to separate lease and non-lease components, but to treat as single lease costs. 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. The lease term used to calculate ROU assets and lease liabilities only includes renewal and termination options that are deemed reasonably certain to be exercised. 13 RESEARCH AND DEVELOPMENT - 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, 2021 and 2020, the Company had no common stock equivalents. RECENT ACCOUNTING PRONOUNCEMENTS: The Company has reviewed all 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.

LEASES

LEASES	9 Months Ended
	Sep. 30, 2021
Leases [Abstract]
LEASES	NOTE 3 - LEASES 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, 2023 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, 2021: Leases As of September 30, 2021 Assets ROU operating lease assets $ 124,089 Liabilities Operating lease liabilities – current portion $ 54,901 Operating lease liabilities $ 72,061 Total operating lease liabilities $ 126,962 14 We recognize lease expense on a straight-line basis over the term of the lease. Nine Months Ended Lease Cost September 30, 2021 Operating lease cost Administrative expenses $ 5,661 Rent expense 43,259 Total operating lease cost $ 48,920 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, 2021, the following disclosures for remaining lease term and incremental borrowing rates were applicable: Nine Months Ended Supplemental Disclosures September 30, 2021 Weighted average remaining lease term 2.17 years Weighted average discount rate 5.25%

INVENTORY

INVENTORY	9 Months Ended
	Sep. 30, 2021
Inventory, Net [Abstract]
INVENTORY	NOTE 4 - 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, 2021 and December 31, 2020, the Company had inventory consisting of finished goods, net of allowance, of $585,057 and $438,606, respectively. At September 30, 2021 and December 31, 2020, the allowance for obsolescence was $106,044 and $106,044, respectively.

NOTE PAYABLE

NOTE PAYABLE	9 Months Ended
	Sep. 30, 2021
Notes Payable [Abstract]
NOTE PAYABLE	NOTE 5 - NOTE PAYABLE On April 5, 2020, we received approval from our bank Chase Bank for the Paycheck Protection Program Loan (“PPP”). The terms of the loan were for 24 months at 0.98% per annum. The Company received notification that the PPP loan was fully forgiven by the Small Business Administration on February 7, 2021, both as to principal and interest, resulting in a $111,265 gain.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 6 - 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 AND SUMMARY OF S_2

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
PRINCIPLES OF CONSOLIDATION	PRINCIPLES OF CONSOLIDATION: The accompanying consolidated financial statements include the accounts of Reflect Scientific, Inc. and its wholly owned subsidiary, Cryometrix. Intercompany transactions and accounts have been eliminated in consolidation.
USE OF 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	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. For the Three Months Ended For the Three Months Ended September 30, 2021 September 30, 2020 Segments Total Total Domestic $ 422,866 $ 422,866 $ 373,468 $ 373,468 International 293,279 293,279 236,617 236,617 $ 716,145 $ 716,145 $ 610,085 $ 610,085 Components $ 293,266 $ 293,266 $ 304,995 $ 304,995 Equipment 422,879 422,879 305,090 305,090 $ 716,145 $ 716,145 $ 610,085 $ 610,085 For the Nine Months Ended For the Nine Months Ended September 30, 2021 September 30, 2020 Segments Total Total Domestic $ 1,023,314 $ 1,023,314 $ 1,523,545 $ 1,523,545 International 962,326 962,326 573,254 573,254 $ 1,985,640 $ 1,985,640 $ 2,096,799 $ 2,096,799 Components $ 735,539 $ 735,539 $ 768,409 $ 768,409 Equipment 1,250,101 1,250,101 1,328,390 1,328,390 $ 1,985,640 $ 1,985,640 $ 2,096,799 $ 2,096,799
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, 2021 and December 31, 2020, the Company had accounts receivable, net of the allowance, of $147,688 and $340,427, respectively. At September 30, 2021 and December 31, 2020, 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, 2021 and December 31, 2020, the Company had inventory consisting of raw materials and finished goods, net of allowance, of $585,057 and $438,606, respectively. Of the total raw materials represented $5,353 at September 30, 2021 and $10,767 at December 31, 2020. At September 30, 2021 and December 31, 2020, the allowance for obsolescence was $106,044 and $106,044, 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. We perform an impairment analysis on an annual basis. The Company’s analysis did not indicate any impairment of intangible assets as of the impairment analysis conducted December 31, 2020. As of September 30, 2021 and December 31, 2020, all of the intangible assets were fully amortized.
GOODWILL	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: The Company, in accordance with ASC 842, accounts for leases as right-of-use assets (“ROU”) and lease liabilities on the balance sheet. The Company elected not to separate lease and non-lease components, but to treat as single lease costs. 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. The lease term used to calculate ROU assets and lease liabilities only includes renewal and termination options that are deemed reasonably certain to be exercised.
RESEARCH AND DEVELOPMENT	RESEARCH AND DEVELOPMENT - 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	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, 2021 and 2020, the Company had no common stock equivalents.
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS: The Company has reviewed all 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 AND SUMMARY OF S_3

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Schedule of Disaggregated Revenues	A part of our customer base is made up of international customers. The table below allocates revenue between domestic and international customers. For the Three Months Ended For the Three Months Ended September 30, 2021 September 30, 2020 Segments Total Total Domestic $ 422,866 $ 422,866 $ 373,468 $ 373,468 International 293,279 293,279 236,617 236,617 $ 716,145 $ 716,145 $ 610,085 $ 610,085 Components $ 293,266 $ 293,266 $ 304,995 $ 304,995 Equipment 422,879 422,879 305,090 305,090 $ 716,145 $ 716,145 $ 610,085 $ 610,085 For the Nine Months Ended For the Nine Months Ended September 30, 2021 September 30, 2020 Segments Total Total Domestic $ 1,023,314 $ 1,023,314 $ 1,523,545 $ 1,523,545 International 962,326 962,326 573,254 573,254 $ 1,985,640 $ 1,985,640 $ 2,096,799 $ 2,096,799 Components $ 735,539 $ 735,539 $ 768,409 $ 768,409 Equipment 1,250,101 1,250,101 1,328,390 1,328,390 $ 1,985,640 $ 1,985,640 $ 2,096,799 $ 2,096,799

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2021
Leases [Abstract]
Schedule of Lessee Operating Lease Disclosure	The following was included in our consolidated condensed balance sheet as of September 30, 2021: Leases As of September 30, 2021 Assets ROU operating lease assets $ 124,089 Liabilities Operating lease liabilities – current portion $ 54,901 Operating lease liabilities $ 72,061 Total operating lease liabilities $ 126,962
Schedule of Lease Cost	We recognize lease expense on a straight-line basis over the term of the lease. Nine Months Ended Lease Cost September 30, 2021 Operating lease cost Administrative expenses $ 5,661 Rent expense 43,259 Total operating lease cost $ 48,920
Schedule of Supplemental Disclosure	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, 2021, the following disclosures for remaining lease term and incremental borrowing rates were applicable: Nine Months Ended Supplemental Disclosures September 30, 2021 Weighted average remaining lease term 2.17 years Weighted average discount rate 5.25%

ORGANIZATION AND SUMMARY OF S_4

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Accounts receivable, net	$ 147,688	$ 340,427
Accounts Receivable, Allowance for Credit Loss	4,000	4,000
Inventory, net	585,057	438,606
Raw material	5,353	10,767
Inventory Adjustments	$ 106,044	$ 106,044
Minimum [Member]
Intangible asstes estimated useful lives	5 years
Maximum [Member]
Intangible asstes estimated useful lives	15 years

ORGANIZATION AND SUMMARY OF S_5

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Disaggregated Revenues) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Total revenues	$ 716,145	$ 610,085	$ 1,985,640	$ 2,096,799
Consumer Products [Member]
Disaggregation of Revenue [Line Items]
Total revenues	716,145	610,085	1,985,640	2,096,799
Domestic [Member]
Disaggregation of Revenue [Line Items]
Total revenues	422,866	373,468	1,023,314	1,523,545
Domestic [Member] | Consumer Products [Member]
Disaggregation of Revenue [Line Items]
Total revenues	422,866	373,468	1,023,314	1,523,545
International [Member]
Disaggregation of Revenue [Line Items]
Total revenues	293,279	236,617	962,326	573,254
International [Member] | Consumer Products [Member]
Disaggregation of Revenue [Line Items]
Total revenues	293,279	236,617	962,326	573,254
Components [Member]
Disaggregation of Revenue [Line Items]
Total revenues	293,266	304,995	735,539	768,409
Components [Member] | Consumer Products [Member]
Disaggregation of Revenue [Line Items]
Total revenues	293,266	304,995	735,539	768,409
Equipment [Member]
Disaggregation of Revenue [Line Items]
Total revenues	422,879	305,090	1,250,101	1,328,390
Equipment [Member] | Consumer Products [Member]
Disaggregation of Revenue [Line Items]
Total revenues	$ 422,879	$ 305,090	$ 1,250,101	$ 1,328,390

LEASES (Narrative) (Details)

LEASES (Narrative) (Details)	9 Months Ended
	Sep. 30, 2021
Lessee, Lease, Description [Line Items]
Lease expiration date	Nov. 30, 2023
Automobiles [Member]
Lessee, Lease, Description [Line Items]
Lease expiration date	Jul. 7, 2021

LEASES (Schedule of Lessee Oper

LEASES (Schedule of Lessee Operating Lease Disclosure) (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Leases [Abstract]
ROU operating lease assets	$ 124,089	$ 167,641
Operating lease liabilities - current portion	54,901	58,682
Operating lease liabilities	72,061	$ 109,338
Total operating lease liabilities	$ 126,962

LEASES (Schedule of Lease Cost)

LEASES (Schedule of Lease Cost) (Details)	9 Months Ended
	Sep. 30, 2021USD ($)
Operating lease cost
Administrative expenses	$ 5,661
Rent expense	43,259
Total operating lease cost	$ 48,920

LEASES (Schedule of Supplementa

LEASES (Schedule of Supplemental Disclosure) (Details)	Sep. 30, 2021
Leases [Abstract]
Weighted average remaining lease term	2 years 2 months 1 day
Weighted average discount rate	5.25%

INVENTORY (Details)

INVENTORY (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Inventory, Net [Abstract]
Inventory, net	$ 585,057	$ 438,606
Inventory allowance	$ 106,044	$ 106,044

NOTE PAYABLE (Details)

NOTE PAYABLE (Details) - USD ($)	Apr. 05, 2020	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Debt Instrument [Line Items]
Gain on forgiveness of debt				$ 111,265
Paycheck Protection Program Loan [Member] | Chase Bank [Member]
Debt Instrument [Line Items]
Loan term	24 months
Loan interest rate	0.98%