Lifeloc (LCTC) 10-Q 29 Oct 21 2021 Q3 Quarterly report Financial data

Cover

Cover	9 Months Ended
	Sep. 30, 2021shares
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity File Number	000-54319
Entity Registrant Name	LIFELOC TECHNOLOGIES, INC.
Entity Central Index Key	0001493137
Entity Tax Identification Number	84-1053680
Entity Incorporation, State or Country Code	CO
Entity Address, Address Line One	12441 West 49th Ave.
Entity Address, Address Line Two	Unit 4
Entity Address, City or Town	Wheat Ridge
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80033
City Area Code	(303)
Local Phone Number	431-9500
Title of 12(b) Security	Common Stock
Trading Symbol	LCTC
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	2,454,116

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
CURRENT ASSETS:
Cash	$ 2,556,282	$ 2,195,070
Accounts receivable, net	600,068	523,603
Inventories, net	2,586,117	2,498,126
Income taxes receivable	45,288	220,657
Prepaid expenses and other	89,392	77,962
Total current assets	5,877,147	5,515,418
PROPERTY AND EQUIPMENT, at cost:
Land	317,932	317,932
Building	1,928,795	1,928,795
Real-time Alcohol Detection And Recognition equipment and software	569,448	569,448
Production equipment, software and space modifications	958,785	958,785
Training courses	432,375	432,375
Office equipment, software and space modifications	216,618	216,618
Sales and marketing equipment and space modifications	226,356	226,356
Research and development equipment, software and space modifications	255,072	190,818
Less accumulated depreciation	(2,474,356)	(2,277,839)
Total property and equipment, net	2,431,025	2,563,288
OTHER ASSETS:
Patents, net	136,471	144,702
Deposits and other	163,480	164,798
Deferred taxes	135,215	148,142
Total other assets	435,166	457,642
Total assets	8,743,338	8,536,348
CURRENT LIABILITIES:
Accounts payable	230,572	333,851
Term loan payable, current portion	48,141	46,936
Paycheck Protection loan payable		465,097
Customer deposits	158,375	155,295
Accrued expenses	194,486	266,266
Deferred revenue, current portion	45,731	41,053
Reserve for warranty expense	46,500	46,500
Total current liabilities	723,805	1,354,998
TERM LOAN PAYABLE, net of current portion and debt issuance costs	1,280,358	1,277,531
DEFERRED REVENUE, net of current portion	4,957	3,177
Total liabilities	2,009,120	2,635,706
STOCKHOLDERS' EQUITY:
Common stock, no par value; 50,000,000 shares authorized, 2,454,116 shares outstanding	4,650,812	4,633,655
Retained earnings	2,083,406	1,266,987
Total stockholders' equity	6,734,218	5,900,642
Total liabilities and stockholders' equity	$ 8,743,338	$ 8,536,348

Condensed Balance Sheets (Una_2

Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Common stock, par value	$ 0	$ 0
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares outstanding	2,454,116	2,454,116

Condensed Statements of Income

Condensed Statements of Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
REVENUES:
Product sales	$ 1,855,308	$ 1,502,034	$ 5,304,800	$ 4,705,598
Royalties	9,941	31,395	56,157	123,527
Rental income	22,239	21,639	65,710	64,317
Total	1,887,488	1,555,068	5,426,667	4,893,442
COST OF SALES	953,437	957,964	3,063,321	3,190,193
GROSS PROFIT	934,051	597,104	2,363,346	1,703,249
OPERATING EXPENSES:
Research and development	299,653	335,075	873,498	814,457
Sales and marketing	306,664	235,733	751,266	837,077
General and administrative	245,970	297,128	852,998	978,056
Total	852,287	867,936	2,477,762	2,629,590
OPERATING INCOME (LOSS)	81,764	(270,832)	(114,416)	(926,341)
OTHER INCOME (EXPENSE):
Forgiveness of Paycheck Protection loans	471,347		936,444
Interest income	1,347	2,598	2,659	13,016
Interest expense	(13,568)	(14,051)	(40,629)	(42,198)
Total	459,126	(11,453)	898,474	(29,182)
NET INCOME (LOSS) BEFORE PROVISION FOR TAXES	540,890	(282,285)	784,058	(955,523)
BENEFIT FROM (PROVISION FOR) FEDERAL AND STATE INCOME TAXES	(18,230)	69,519	32,361	227,859
NET INCOME (LOSS)	$ 522,660	$ (212,766)	$ 816,419	$ (727,664)
NET INCOME (LOSS) PER SHARE, BASIC	$ 0.21	$ (0.09)	$ 0.33	$ (0.30)
NET INCOME (LOSS) PER SHARE, DILUTED	$ 0.21	$ (0.09)	$ 0.33	$ (0.30)
WEIGHTED AVERAGE SHARES, BASIC	2,454,116	2,454,116	2,454,116	2,454,116
WEIGHTED AVERAGE SHARES, DILUTED	2,501,034	2,454,116	2,493,492	2,454,116

Statements of Stockholders' Equ

Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Retained Earnings [Member]	Total
Beginning balance, amount at Dec. 31, 2019	$ 4,603,304	$ 2,188,917	$ 6,792,221
Net income (loss)		(727,664)	(727,664)
Stock based compensation expense related to stock options	32,734		32,734
Ending balance, amount at Sep. 30, 2020	4,636,038	1,461,253	6,097,291
Beginning balance, amount at Jun. 30, 2020	4,635,727	1,674,019	6,309,746
Net income (loss)		(212,766)	(212,766)
Stock based compensation expense related to stock options	311		311
Ending balance, amount at Sep. 30, 2020	4,636,038	1,461,253	6,097,291
Beginning balance, amount at Dec. 31, 2020	4,633,655	1,266,987	5,900,642
Net income (loss)		816,419	816,419
Stock based compensation expense related to stock options	17,157		17,157
Ending balance, amount at Sep. 30, 2021	4,650,812	2,083,406	6,734,218
Beginning balance, amount at Jun. 30, 2021	4,650,812	1,560,746	6,211,558
Net income (loss)		522,660	522,660
Stock based compensation expense related to stock options
Ending balance, amount at Sep. 30, 2021	$ 4,650,812	$ 2,083,406	$ 6,734,218

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 816,419	$ (727,664)
Adjustments to reconcile net income (loss) to net cash provided from (used in) operating activities-
Forgiveness of Paycheck Protection loans	(936,444)
Depreciation and amortization	206,222	270,984
Provision for doubtful accounts, net change	(49,000)	3,899
Provision for inventory obsolescence, net change	(5,000)	48,943
Deferred taxes, net change	12,927	(11,188)
Reserve for warranty expense, net change		1,500
Stock based compensation expense related to stock options	17,157	32,734
Changes in operating assets and liabilities-
Accounts receivable	(27,465)	119,722
Inventories	(82,991)	(581,640)
Income taxes receivable	175,369	(216,654)
Prepaid expenses and other	(11,430)	(49,059)
Deposits and other	1,318	(89,453)
Accounts payable	(103,279)	(4,055)
Customer deposits	3,080	(31,221)
Accrued expenses	(71,780)	(78,099)
Deferred revenue	6,458	(12,723)
Net cash provided from (used in) operating activities	(48,439)	(1,323,974)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(64,254)	(9,088)
Patent filing expense	(661)	(18,772)
Net cash provided from (used in) investing activities	(64,915)	(27,860)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments made on term loan	(1,328,625)	(34,372)
Proceeds from refinancing term loan	1,350,000
Cost of refinancing term loan	(18,156)
Proceeds from Paycheck Protection loan (round 2)	471,347	465,097
Net cash provided from (used in) financing activities	474,566	430,725
NET INCREASE (DECREASE) IN CASH	361,212	(921,109)
CASH, BEGINNING OF PERIOD	2,195,070	3,185,996
CASH, END OF PERIOD	2,556,282	2,264,887
SUPPLEMENTAL INFORMATION:
Cash paid for interest	39,815	41,384
Cash paid for income tax		$ 20,063

ORGANIZATION AND NATURE OF BUSI

ORGANIZATION AND NATURE OF BUSINESS	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
ORGANIZATION AND NATURE OF BUSINESS	1. ORGANIZATION AND NATURE OF BUSINESS Lifeloc Technologies, Inc. ("Lifeloc" or the "Company") is a Colorado-based developer, manufacturer and marketer of portable hand-held and fixed station breathalyzers and related accessories, supplies and education. We design, produce and sell fuel-cell based breath alcohol testing equipment. We compete in all major segments of the breath alcohol testing instrument market, including law enforcement, workplace, corrections, original equipment manufacturing ("OEM") and consumer markets. In addition, we offer a line of supplies, accessories, services, and training to support customers' alcohol testing programs. We sell globally through distributors as well as directly to users. We define our business as providing "near and remote sensing" products and solutions. Today, the majority of our revenues are derived from products and services for alcohol detection and measurement. We remain committed to growing our breath alcohol testing business. In the future, we anticipate the commercialization of new sensing and measurement products that may allow Lifeloc to successfully expand our business into new growth areas where we do not presently compete or where no satisfactory product solutions exist today. Lifeloc incorporated in Colorado in December 1983. We filed a registration statement on Form 10 with the Securities and Exchange Commission, which became effective on May 31, 2011. Our fiscal year end is December 31. Our principal executive offices are located at 12441 West 49th Avenue, Unit 4, Wheat Ridge, Colorado 80033-3338. Our telephone number is (303) 431-9500. Our websites are www.lifeloc.com, www.lifeguardbreathtester.com, and www.stsfirst.com. Information contained on our websites does not constitute part of this Form 10-Q.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Use of Estimates in the Preparation of Financial Statements Fair Value Measurement Fair Value Measurements and Disclosures Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equity securities listed on the New York Stock Exchange. Level 2 - Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts or priced with models using highly observable inputs. Level 3 - Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights. Inventories   Schedule of Inventories 2021 2020 Raw materials & deposits $ 2,147,100 $ 2,116,389 Work-in-process 26,566 16,862 Finished goods 567,451 524,875 Total gross inventories 2,741,117 2,658,126 Less reserve for obsolescence (155,000 ) (160,000 ) Total net inventories $ 2,586,117 $ 2,498,126 Income Taxes Accounting for Income Taxes The estimated annual effective tax rate is applied to the year-to-date ordinary income (loss) at the end of the interim period. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This pronouncement also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. Revenue Recognition. Revenue from Contracts with Customers (Topic 606). Revenue from product sales and supplies is generally recorded when we ship the product and title has passed to the customer, provided that we have evidence of a customer arrangement and can conclude that collection is probable. The prices at which we sell our products are fixed and determinable at the time we accept a customer's order. We recognize revenue from sales to stocking distributors when there is no right of return, other than for normal warranty claims, and generally have no ongoing obligations related to product sales, except for normal warranty. The sales of licenses to our training courses are recognized as revenue at the time of sale. Training and certification revenues are recognized at the time the training and certification occurs. Data recording revenue is recognized based on each day’s usage of enrolled devices. Revenues arising from extended warranty contracts are booked as sales over their life on a straight-line basis. We have discontinued arranging for customer financing and leasing through unrelated third parties and instead are providing for customer financing and leasing ourselves, which we recognize as revenue over the applicable lease term. Occasionally, we rent used equipment to customers, and in those cases, we recognize the revenues as they are earned over the life of the contract. Royalty income is recognized in accordance with agreed upon terms, when performance obligations are satisfied, the amount is fixed or determinable and collectability is reasonably assured. Rental income from space leased to our tenants is recognized in the month in which it is due, which approximates if it were recognized on a straight-line basis over the term of the related lease. On occasion we receive customer deposits for future product orders and product developments. Customer deposits are initially recorded as a liability and recognized as revenue when the product is shipped and title has passed to the customer, or when agreed milestones are met in the case of product developments. Topic 606 requires the disaggregation of revenue into broad categories, which we have defined as shown below for the three and nine months ended September 30, 2021 and September 30, 2020. Schedule of Disaggregation of revenue Three Months Ended September 30, Product sales: 2021 2020 Product sales and supplies $ 1,677,666 $ 1,341,071 Training, certification and data recording 164,158 146,712 Service plans and equipment rental 13,484 14,251 Products subtotal 1,855,308 1,502,034 Royalties 9,941 31,395 Building rentals 22,239 21,639 Total revenues $ 1,887,488 $ 1,555,068 Nine months Ended September 30, Product sales: 2021 2020 Product sales and supplies $ 4,794,804 $ 4,240,139 Training, certification and data recording 466,218 411,603 Service plans and equipment rental 43,778 53,856 Products subtotal 5,304,800 4,705,598 Royalties 56,157 123,527 Building rentals 65,710 64,317 Total revenues $ 5,426,667 $ 4,893,442 Deferred Revenue. Recent Accounting Pronouncements Stock-Based Compensation Compensation – Stock Compensation ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the accompanying statement of income. Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. We used the Black-Scholes option-pricing model to determine fair value. Our determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to our expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. Although the fair value of employee stock options is determined in accordance with ASC 718 using an option-pricing model, that value may not be indicative of the fair value observed in a willing buyer/willing seller market transaction. Stock-based compensation expense recognized under ASC 718 for the three months ended September 30, 2021 and 2020 was $ 0 311 17,157 32,734 Segment Reporting

BASIC AND DILUTED INCOME (LOSS)

BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE	3. BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE We report both basic and diluted net income (loss) per common share. Basic net income (loss) per common share is computed by dividing net income (loss) for the period by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per common share is computed by dividing the net income (loss) for the period by the weighted average number of common and potential common shares outstanding during the period if the effect of the potential common shares is dilutive. The shares used in the calculation of dilutive potential common shares exclude options to purchase shares where the exercise price was greater than the average market price of common shares for the period. The shares used in the calculation of dilutive potential common shares exclude options to purchase shares in loss periods since they are anti-dilutive. The following table presents the calculation of basic and diluted net income (loss) per common share for three and nine months ended September 30, 2021 and September 30, 2020: Schedule of Calculation of basic and diluted net income per common share Three Months Ended September 30, 2021 2020 Net income (loss) $ 522,660 $ (212,766 ) Weighted average shares-basic 2,454,116 2,454,116 Effect of dilutive potential common shares 46,918 — Weighted average shares-diluted 2,501,034 2,454,116 Net income (loss) per share-basic $ 0.21 $ (0.09 ) Net income (loss) per share-diluted $ 0.21 $ (0.09 ) Antidilutive employee stock options — 12,500 Nine months Ended September 30, 2021 2020 Net income (loss) $ 816,419 $ (727,664 ) Weighted average shares-basic 2,454,116 2,454,116 Effect of dilutive potential common shares 39,376 — Weighted average shares-diluted 2,493,492 2,454,116 Net income (loss) per share-basic $ 0.33 $ (0.30 ) Net income (loss) per share-diluted $ 0.33 $ (0.30 ) Antidilutive employee stock options — 12,500

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2021
Equity [Abstract]
STOCKHOLDERS' EQUITY	4. STOCKHOLDERS' EQUITY The following table summarizes information about employee stock options outstanding and exercisable at September 30, 2021: Schedule of Stock options outstanding and exercisable STOCK OPTIONS OUTSTANDING STOCK OPTIONS EXERCISABLE Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life (in Years) Weighted-Average Exercise Price per Share Number Exercisable Weighted-Average Exercise Price per Share $5.51 3,000 2.83 $5.51 3,000 $5.51 $3.80 94,500 3.42 $3.80 94,500 $3.80 $43.80 20,500 4.42 $3.80 20,500 $3.80 The exercise price of all options granted through September 30, 2021 has been equal to or greater than the fair market value of the Company's common stock at the time the options were issued. As of September 30, 2021, 25,300 We granted 50,000 25,000 0 A total of 20,500 4,500 A total of 110,500 48,000 37,500 7,500 1,000 No The total number of authorized shares of common stock continues to be 50,000,000

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	5. COMMITMENTS AND CONTINGENCIES Mortgage Expense 1,949,139 1,581,106 4.00 1,350,000 2.95 7,453 786,607 th Schedule of Minimum future lease payments 2021 $ 12,434 2022 50,663 2023 52,178 2024 53,738 2025 55,345 2026 - 2031 1,125,642 Total 1,350,000 Less financing cost (21,501 ) Net term loan payable 1,328,499 Less current portion (48,141 ) Long term portion $ 1,280,358 Employee Severance Benefits Contractual Commitments and Purchase Orders 593,772 Regulatory Commitments

LINE OF CREDIT AND PAYCHECK PRO

LINE OF CREDIT AND PAYCHECK PROTECTION LOANS	9 Months Ended
	Sep. 30, 2021
Line Of Credit And Paycheck Protection Loans
LINE OF CREDIT AND PAYCHECK PROTECTION LOANS	6. LINE OF CREDIT AND PAYCHECK PROTECTION LOANS As part of the long-term financing of our property purchased on October 31, 2014, we obtained a one-year $250,000 revolving line of credit facility with Bank of America, which matured on October 31, 2015 and was extended to June 30, 2018. The agreement was amended to increase the amount of the line to $ 750,000 September 28, 2021 no The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program (“PPP”), the initiative provides federally guaranteed loans to small businesses. A portion or all of these loans may be forgiven if borrowers comply with certain PPP guidelines including spending the funds on authorized expenses and maintaining their payrolls during the crisis or restore their payrolls afterward. On May 4, 2020, the Company received proceeds of $ 465,097 471,347

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
INCOME TAXES	7. INCOME TAXES The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for (benefit from) income taxes consists of the following. Schedule of income tax reconciliation Three Months Ended September 30, 2021 2020 Federal statutory rate $ 113,587 $ (59,280 ) Effect of: State taxes, net of federal tax benefit (3,407 ) 13,056 Paycheck Protection loan forgiveness and other (91,950 ) (23,295 ) Total $ 18,230 $ (69,519 ) Nine months Ended September 30, 2021 2020 Federal statutory rate $ 164,653 $ (200,660 ) Effect of: State taxes, net of federal tax benefit 6,070 42,706 Paycheck Protection loan forgiveness and other (203,084 ) (69,905 ) Total $ (32,361 ) $ (227,859 )

BUSINESS SEGMENTS

BUSINESS SEGMENTS	9 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
BUSINESS SEGMENTS	8. BUSINESS SEGMENTS We currently have two business segments: (i) the sale of physical products, including portable hand-held breathalyzers and related accessories, supplies, education, training ("Product Sales"), and royalties from development contracts with OEM manufacturers ("Royalties" and, together with Product Sales, the "Products" segment), and (ii) rental of a portion of our building (the "Rentals" segment). The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 2. Operating profits for these segments exclude unallocated corporate items. Administrative and staff costs are commonly used by all business segments and are indistinguishable. The following sets forth information about the operations of the business segments for the three months ended September 30, 2021 and 2020. Schedule of Operations of business segments 2021 2020 Product sales $ 1,855,308 $ 1,502,034 Royalties 9,941 31,395 Products subtotal 1,865,249 1,533,429 Rentals 22,239 21,639 Total $ 1,887,488 $ 1,555,068 Gross profit: Product sales $ 914,458 $ 556,045 Royalties 9,941 31,395 Products subtotal 924,399 587,440 Rentals 9,652 9,664 Total $ 934,051 $ 597,104 Interest expense: Product sales $ 8,914 $ 9,228 Royalties — — Products subtotal 8,914 9,228 Rentals 4,654 4,823 Total $ 13,568 $ 14,051 Net income (loss) before taxes: Product sales $ 525,951 $ (318,521 ) Royalties 9,941 31,395 Products subtotal 535,892 (287,126 ) Rentals 4,998 4,841 Total $ 540,890 $ (282,285 ) The following sets forth information about the operations of the business segments for the nine months ended September 30, 2021 and 2020. 2021 2020 Product sales $ 5,304,800 $ 4,705,598 Royalties 56,157 123,527 Products subtotal 5,360,957 4,829,125 Rentals 65,710 64,317 Total $ 5,426,667 $ 4,893,442 Gross profit: Product sales $ 2,276,049 $ 1,556,229 Royalties 56,157 123,527 Products subtotal 2,332,206 1,679,756 Rentals 31,140 23,493 Total $ 2,363,346 $ 1,703,249 Interest expense: Product sales $ 26,694 $ 27,713 Royalties — — Products subtotal 26,694 27,713 Rentals 13,935 14,485 Total $ 40,629 $ 42,198 Net income (loss) before taxes: Product sales $ 710,696 $ (1,088,058 ) Royalties 56,157 123,527 Products subtotal 766,853 (964,531 ) Rentals 17,205 9,008 Total $ 784,058 $ (955,523 ) There were no intersegment revenues. At September 30, 2021, $ 579,974 8,163,364

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	9. SUBSEQUENT EVENTS We evaluated all of our activity and concluded that no subsequent events have occurred that would require recognition in our financial statements or disclosure in the notes to our financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements
Fair Value Measurement	Fair Value Measurement Fair Value Measurements and Disclosures Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equity securities listed on the New York Stock Exchange. Level 2 - Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts or priced with models using highly observable inputs. Level 3 - Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights.
Inventories	Inventories   Schedule of Inventories 2021 2020 Raw materials & deposits $ 2,147,100 $ 2,116,389 Work-in-process 26,566 16,862 Finished goods 567,451 524,875 Total gross inventories 2,741,117 2,658,126 Less reserve for obsolescence (155,000 ) (160,000 ) Total net inventories $ 2,586,117 $ 2,498,126
Income Taxes	Income Taxes Accounting for Income Taxes The estimated annual effective tax rate is applied to the year-to-date ordinary income (loss) at the end of the interim period. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This pronouncement also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.
Revenue Recognition.	Revenue Recognition. Revenue from Contracts with Customers (Topic 606). Revenue from product sales and supplies is generally recorded when we ship the product and title has passed to the customer, provided that we have evidence of a customer arrangement and can conclude that collection is probable. The prices at which we sell our products are fixed and determinable at the time we accept a customer's order. We recognize revenue from sales to stocking distributors when there is no right of return, other than for normal warranty claims, and generally have no ongoing obligations related to product sales, except for normal warranty. The sales of licenses to our training courses are recognized as revenue at the time of sale. Training and certification revenues are recognized at the time the training and certification occurs. Data recording revenue is recognized based on each day’s usage of enrolled devices. Revenues arising from extended warranty contracts are booked as sales over their life on a straight-line basis. We have discontinued arranging for customer financing and leasing through unrelated third parties and instead are providing for customer financing and leasing ourselves, which we recognize as revenue over the applicable lease term. Occasionally, we rent used equipment to customers, and in those cases, we recognize the revenues as they are earned over the life of the contract. Royalty income is recognized in accordance with agreed upon terms, when performance obligations are satisfied, the amount is fixed or determinable and collectability is reasonably assured. Rental income from space leased to our tenants is recognized in the month in which it is due, which approximates if it were recognized on a straight-line basis over the term of the related lease. On occasion we receive customer deposits for future product orders and product developments. Customer deposits are initially recorded as a liability and recognized as revenue when the product is shipped and title has passed to the customer, or when agreed milestones are met in the case of product developments. Topic 606 requires the disaggregation of revenue into broad categories, which we have defined as shown below for the three and nine months ended September 30, 2021 and September 30, 2020. Schedule of Disaggregation of revenue Three Months Ended September 30, Product sales: 2021 2020 Product sales and supplies $ 1,677,666 $ 1,341,071 Training, certification and data recording 164,158 146,712 Service plans and equipment rental 13,484 14,251 Products subtotal 1,855,308 1,502,034 Royalties 9,941 31,395 Building rentals 22,239 21,639 Total revenues $ 1,887,488 $ 1,555,068 Nine months Ended September 30, Product sales: 2021 2020 Product sales and supplies $ 4,794,804 $ 4,240,139 Training, certification and data recording 466,218 411,603 Service plans and equipment rental 43,778 53,856 Products subtotal 5,304,800 4,705,598 Royalties 56,157 123,527 Building rentals 65,710 64,317 Total revenues $ 5,426,667 $ 4,893,442
Deferred Revenue.	Deferred Revenue.
Recent Accounting Pronouncements	Recent Accounting Pronouncements
Stock-Based Compensation	Stock-Based Compensation Compensation – Stock Compensation ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the accompanying statement of income. Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. We used the Black-Scholes option-pricing model to determine fair value. Our determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to our expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. Although the fair value of employee stock options is determined in accordance with ASC 718 using an option-pricing model, that value may not be indicative of the fair value observed in a willing buyer/willing seller market transaction. Stock-based compensation expense recognized under ASC 718 for the three months ended September 30, 2021 and 2020 was $ 0 311 17,157 32,734
Segment Reporting	Segment Reporting

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Schedule of Inventories	Schedule of Inventories 2021 2020 Raw materials & deposits $ 2,147,100 $ 2,116,389 Work-in-process 26,566 16,862 Finished goods 567,451 524,875 Total gross inventories 2,741,117 2,658,126 Less reserve for obsolescence (155,000 ) (160,000 ) Total net inventories $ 2,586,117 $ 2,498,126
Schedule of Disaggregation of revenue	Schedule of Disaggregation of revenue Three Months Ended September 30, Product sales: 2021 2020 Product sales and supplies $ 1,677,666 $ 1,341,071 Training, certification and data recording 164,158 146,712 Service plans and equipment rental 13,484 14,251 Products subtotal 1,855,308 1,502,034 Royalties 9,941 31,395 Building rentals 22,239 21,639 Total revenues $ 1,887,488 $ 1,555,068 Nine months Ended September 30, Product sales: 2021 2020 Product sales and supplies $ 4,794,804 $ 4,240,139 Training, certification and data recording 466,218 411,603 Service plans and equipment rental 43,778 53,856 Products subtotal 5,304,800 4,705,598 Royalties 56,157 123,527 Building rentals 65,710 64,317 Total revenues $ 5,426,667 $ 4,893,442

BASIC AND DILUTED INCOME (LOS_2

BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE (Tables)	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Schedule of Calculation of basic and diluted net income per common share	Schedule of Calculation of basic and diluted net income per common share Three Months Ended September 30, 2021 2020 Net income (loss) $ 522,660 $ (212,766 ) Weighted average shares-basic 2,454,116 2,454,116 Effect of dilutive potential common shares 46,918 — Weighted average shares-diluted 2,501,034 2,454,116 Net income (loss) per share-basic $ 0.21 $ (0.09 ) Net income (loss) per share-diluted $ 0.21 $ (0.09 ) Antidilutive employee stock options — 12,500

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 30, 2021
Equity [Abstract]
Schedule of Stock options outstanding and exercisable	Schedule of Stock options outstanding and exercisable STOCK OPTIONS OUTSTANDING STOCK OPTIONS EXERCISABLE Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life (in Years) Weighted-Average Exercise Price per Share Number Exercisable Weighted-Average Exercise Price per Share $5.51 3,000 2.83 $5.51 3,000 $5.51 $3.80 94,500 3.42 $3.80 94,500 $3.80 $43.80 20,500 4.42 $3.80 20,500 $3.80

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Schedule of Minimum future lease payments	Schedule of Minimum future lease payments 2021 $ 12,434 2022 50,663 2023 52,178 2024 53,738 2025 55,345 2026 - 2031 1,125,642 Total 1,350,000 Less financing cost (21,501 ) Net term loan payable 1,328,499 Less current portion (48,141 ) Long term portion $ 1,280,358

INCOME TAXES (Tables)

INCOME TAXES (Tables)	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Schedule of income tax reconciliation	Schedule of income tax reconciliation Three Months Ended September 30, 2021 2020 Federal statutory rate $ 113,587 $ (59,280 ) Effect of: State taxes, net of federal tax benefit (3,407 ) 13,056 Paycheck Protection loan forgiveness and other (91,950 ) (23,295 ) Total $ 18,230 $ (69,519 )

BUSINESS SEGMENTS (Tables)

BUSINESS SEGMENTS (Tables)	9 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Schedule of Operations of business segments	Schedule of Operations of business segments 2021 2020 Product sales $ 1,855,308 $ 1,502,034 Royalties 9,941 31,395 Products subtotal 1,865,249 1,533,429 Rentals 22,239 21,639 Total $ 1,887,488 $ 1,555,068 Gross profit: Product sales $ 914,458 $ 556,045 Royalties 9,941 31,395 Products subtotal 924,399 587,440 Rentals 9,652 9,664 Total $ 934,051 $ 597,104 Interest expense: Product sales $ 8,914 $ 9,228 Royalties — — Products subtotal 8,914 9,228 Rentals 4,654 4,823 Total $ 13,568 $ 14,051 Net income (loss) before taxes: Product sales $ 525,951 $ (318,521 ) Royalties 9,941 31,395 Products subtotal 535,892 (287,126 ) Rentals 4,998 4,841 Total $ 540,890 $ (282,285 )

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Raw materials & deposits	$ 2,147,100	$ 2,116,389
Work-in-process	26,566	16,862
Finished goods	567,451	524,875
Total gross inventories	2,741,117	2,658,126
Less reserve for obsolescence	(155,000)	(160,000)
Total net inventories	$ 2,586,117	$ 2,498,126

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Product Information [Line Items]
Total revenues	$ 1,887,488	$ 1,555,068	$ 5,426,667	$ 4,893,442
Product Sales And Supplies [Member]
Product Information [Line Items]
Total revenues	1,677,666	1,341,071	4,794,804	4,240,139
Training Certification And Data Recording [Member]
Product Information [Line Items]
Total revenues	164,158	146,712	466,218	411,603
Service Plans And Equipment Rental [Member]
Product Information [Line Items]
Total revenues	13,484	14,251	43,778	53,856
Product Sales Subtotal [Member]
Product Information [Line Items]
Total revenues	1,855,308	1,502,034	5,304,800	4,705,598
Royalties [Member]
Product Information [Line Items]
Total revenues	9,941	31,395	56,157	123,527
Rental Income [Member]
Product Information [Line Items]
Total revenues	$ 22,239	$ 21,639	$ 65,710	$ 64,317

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Accounting Policies [Abstract]
Stock-based compensation expense	$ 0	$ 311	$ 17,157	$ 32,734

BASIC AND DILUTED INCOME (LOS_3

BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share [Abstract]
Net income (loss)	$ 522,660	$ (212,766)	$ 816,419	$ (727,664)
Weighted average shares-basic	2,454,116	2,454,116	2,454,116	2,454,116
Effect of dilutive potential common shares	46,918	0	39,376	0
Weighted average shares-diluted	2,501,034	2,454,116	2,493,492	2,454,116
Net income (loss) per share-basic	$ 0.21	$ (0.09)	$ 0.33	$ (0.30)
Net income (loss) per share-diluted	$ 0.21	$ (0.09)	$ 0.33	$ (0.30)
Antidilutive employee stock options	0	12,500	0	12,500

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details)	9 Months Ended
	Sep. 30, 2021$ / sharesshares
$5.51
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices	$ 5.51
Option outstanding | shares	3,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	2 years 9 months 29 days
Weighted average exercise price per share	$ 5.51
Number exercisable | shares	3,000
Weighted average exercise price per share	$ 5.51
$3.80
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices	$ 3.80
Option outstanding | shares	94,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	3 years 5 months 1 day
Weighted average exercise price per share	$ 3.80
Number exercisable | shares	94,500
Weighted average exercise price per share	$ 3.80
$43.80
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices	$ 43.80
Option outstanding | shares	20,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	4 years 5 months 1 day
Weighted average exercise price per share	$ 3.80
Number exercisable | shares	20,500
Weighted average exercise price per share	$ 3.80

STOCKHOLDERS' EQUITY (Details N

STOCKHOLDERS' EQUITY (Details Narrative) - shares	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, granted	110,500
Options, exercised		0	0
Common stock, authorized shares		50,000,000		50,000,000
Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, granted				0	25,000	50,000
Two Officers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, granted		20,500
Two Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, granted		4,500
Two Officers And Three Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, granted	48,000
Officers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, granted		37,500	7,500
Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, granted		1,000
N 2013 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options available for grant		25,300

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details)	Sep. 30, 2021USD ($)
Commitments and Contingencies Disclosure [Abstract]
2021	$ 12,434
2022	50,663
2023	52,178
2024	53,738
2025	55,345
2026 - 2031	1,125,642
Total	1,350,000
Less financing cost	(21,501)
Net term loan payable	1,328,499
Less current portion	(48,141)
Long term portion	$ 1,280,358

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	9 Months Ended	10 Months Ended
	Sep. 30, 2021	Oct. 30, 2016	Oct. 31, 2014
Repurchase Agreement Counterparty [Line Items]
Facilities Purchased			$ 1,949,139
Periodic Payment	$ 7,453
Final payment	786,607
Outstanding purchase orders issued to vendors	$ 593,772
Bank Of America [Member]
Repurchase Agreement Counterparty [Line Items]
Term Loan			$ 1,581,106
Debt Instrument, Interest Rate During Period		4.00%
Citywide Banks [Member]
Repurchase Agreement Counterparty [Line Items]
Debt Instrument, Interest Rate During Period	2.95%
Proceeds from term loan	$ 1,350,000

LINE OF CREDIT AND PAYCHECK P_2

LINE OF CREDIT AND PAYCHECK PROTECTION LOANS (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Line Of Credit And Paycheck Protection Loans
Line of credit	$ 750,000
Maturity date	Sep. 28, 2021
Line of credit facility	$ 0		$ 0
Proceeds from loans	$ 471,347	$ 465,097

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Federal statutory rate	$ 113,587	$ (59,280)	$ 164,653	$ (200,660)
State taxes, net of federal tax benefit	(3,407)	13,056	6,070	42,706
Paycheck Protection loan forgiveness and other	(91,950)	(23,295)	(203,084)	(69,905)
Total	$ 18,230	$ (69,519)	$ (32,361)	$ (227,859)

BUSINESS SEGMENTS (Details)

BUSINESS SEGMENTS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting Information [Line Items]
Revenues	$ 1,887,488	$ 1,555,068	$ 5,426,667	$ 4,893,442
Gross profit	934,051	597,104	2,363,346	1,703,249
Interest expense	13,568	14,051	40,629	42,198
Net income (loss) before taxes	540,890	(282,285)	784,058	(955,523)
Product Concentration Risk [Member]
Segment Reporting Information [Line Items]
Revenues	1,855,308	1,502,034	5,304,800	4,705,598
Gross profit	914,458	556,045	2,276,049	1,556,229
Interest expense	8,914	9,228	26,694	27,713
Net income (loss) before taxes	525,951	(318,521)	710,696	(1,088,058)
Royalties [Member]
Segment Reporting Information [Line Items]
Revenues	9,941	31,395	56,157	123,527
Gross profit	9,941	31,395	56,157	123,527
Interest expense
Net income (loss) before taxes	9,941	31,395	56,157	123,527
Products Subtotal [Member]
Segment Reporting Information [Line Items]
Revenues	1,865,249	1,533,429	5,360,957	4,829,125
Gross profit	924,399	587,440	2,332,206	1,679,756
Interest expense	8,914	9,228	26,694	27,713
Net income (loss) before taxes	535,892	(287,126)	766,853	(964,531)
Rentals [Member]
Segment Reporting Information [Line Items]
Revenues	22,239	21,639	65,710	64,317
Gross profit	9,652	9,664	31,140	23,493
Interest expense	4,654	4,823	13,935	14,485
Net income (loss) before taxes	$ 4,998	$ 4,841	$ 17,205	$ 9,008

BUSINESS SEGMENTS (Details Narr

BUSINESS SEGMENTS (Details Narrative)	Sep. 30, 2021USD ($)
Segment Reporting [Abstract]
Rentals segment	$ 579,974
Rentals segment remainder	$ 8,163,364