Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 02, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Period Focus | FY | ||
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 W 49th Ave. | ||
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 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
Entity Current Reporting Status | Yes | ||
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 Public Float | $ 1,803,937 | ||
Entity Common Stock, Shares Outstanding | 2,454,116 | ||
Auditor Firm ID | 6778 | ||
Auditor Firm Id One | 647 | ||
Auditor Name | Gries & Associates, LLC | ||
Auditor Name One | Causey Demgen & Moore P.C. | ||
Auditor Location | Colorado | ||
Auditor Location One | Colorado |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash | $ 2,571,668 | $ 2,195,070 |
Accounts receivable, net | 562,092 | 523,603 |
Inventories, net | 2,668,789 | 2,498,126 |
Income taxes receivable | 0 | 220,657 |
Prepaid expenses and other | 56,897 | 77,962 |
Total current assets | 5,859,446 | 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 | 456,685 | 190,818 |
Less accumulated depreciation | (2,518,966) | (2,277,839) |
Total property and equipment, net | 2,588,028 | 2,563,288 |
OTHER ASSETS: | ||
Patents, net | 134,428 | 144,702 |
Deposits and other | 163,480 | 164,798 |
Deferred taxes | 204,449 | 148,142 |
Total other assets | 502,357 | 457,642 |
Total assets | 8,949,831 | 8,536,348 |
CURRENT LIABILITIES: | ||
Accounts payable | 445,985 | 333,851 |
Term loan payable, current portion | 48,513 | 46,936 |
Paycheck Protection Program loan payable | 0 | 465,097 |
Customer deposits | 170,952 | 155,295 |
Accrued expenses | 298,530 | 266,266 |
Deferred revenue, current portion | 71,604 | 41,053 |
Reserve for warranty expense | 46,500 | 46,500 |
Total current liabilities | 1,082,084 | 1,354,998 |
TERM LOAN PAYABLE, net of current portion and debt issuance costs | 1,267,551 | 1,277,531 |
DEFERRED REVENUE, net of current portion | 6,430 | 3,177 |
Total liabilities | 2,356,065 | 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 | 1,942,954 | 1,266,987 |
Total stockholders' equity | 6,593,766 | 5,900,642 |
Total liabilities and stockholders' equity | $ 8,949,831 | $ 8,536,348 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0 | $ 0 |
Common stock, authorized shares | 50,000,000 | 50,000,000 |
Common stock, outstanding shares | 2,454,116 | 2,454,116 |
Statements of Income
Statements of Income - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
REVENUES: | ||
Product sales | $ 6,898,955 | $ 6,122,348 |
Royalties | 67,526 | 148,398 |
Rental income | 87,949 | 85,956 |
Total | 7,054,430 | 6,356,702 |
COST OF SALES | 3,994,334 | 4,176,156 |
GROSS PROFIT | 3,060,096 | 2,180,546 |
OPERATING EXPENSES: | ||
Research and development | 1,213,482 | 1,007,297 |
Sales and marketing | 1,003,983 | 1,074,249 |
General and administrative | 1,111,544 | 1,254,503 |
Total | 3,329,009 | 3,336,049 |
OPERATING INCOME (LOSS) | (268,913) | (1,155,503) |
OTHER INCOME (EXPENSE): | ||
Forgiveness of Paycheck Protection loan | 936,444 | |
Interest income | 3,401 | 14,294 |
Interest expense | (51,272) | (56,129) |
Total | 888,573 | (41,835) |
NET INCOME (LOSS) BEFORE PROVISION FOR TAXES | 619,660 | (1,197,338) |
BENEFIT FROM (PROVISION FOR) FEDERAL AND STATE INCOME TAXES | 56,307 | 275,408 |
NET INCOME (LOSS) | $ 675,967 | $ (921,930) |
NET INCOME (LOSS) PER SHARE, BASIC | $ 0.28 | $ (0.38) |
NET INCOME (LOSS) PER SHARE, DILUTED | $ 0.27 | $ (0.38) |
WEIGHTED AVERAGE SHARES, BASIC | 2,454,116 | 2,454,116 |
WEIGHTED AVERAGE SHARES, DILUTED | 2,518,895 | 2,454,116 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Retained Earnings [Member] | Total |
Beginning balance at Dec. 31, 2019 | $ 4,603,304 | $ 2,188,917 | $ 6,792,221 |
Stock based compensation expense related to stock options | 30,351 | ||
Net income loss | (921,930) | ||
Stockholders equity at Dec. 31, 2020 | 4,633,655 | 1,266,987 | 5,900,642 |
Stock based compensation expense related to stock options | 17,157 | ||
Net income loss | 675,967 | ||
Stockholders equity at Dec. 31, 2021 | $ 4,650,812 | $ 1,942,954 | $ 6,593,766 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 675,967 | $ (921,930) |
Adjustments to reconcile net income (loss) to net cash provided from operating activities | ||
Forgiveness of Paycheck Protection loans | (936,444) | 0 |
Depreciation and amortization | 254,823 | 364,336 |
Provision for doubtful accounts, net change | (49,000) | 24,000 |
Provision for inventory obsolescence, net change | (5,000) | 20,000 |
Deferred taxes, net change | (56,307) | (61,484) |
Reserve for warranty expense, net change | 0 | 1,500 |
Stock based compensation expense related to stock options | 17,157 | 30,351 |
Changes in operating assets and liabilities- | ||
Accounts receivable | 10,511 | 93,636 |
Inventories | (165,663) | (531,827) |
Income taxes receivable | 220,657 | (213,907) |
Prepaid expenses and other | 21,065 | (59,105) |
Deposits and other | 1,318 | (90,771) |
Accounts payable | 112,134 | 72,053 |
Customer deposits | 15,657 | (58,736) |
Accrued expenses | 32,264 | (24,192) |
Deferred revenue | 33,804 | (7,710) |
Net cash provided from (used in) operating activities | 182,943 | (1,363,786) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, equipment and space modifications | (265,867) | (27,477) |
Patent filing expense | (2,609) | (18,796) |
Net cash (used in) investing activities | (268,476) | (46,273) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal payments made on term loans | (1,341,059) | (45,964) |
Proceeds from refinancing term loan | 1,350,000 | 0 |
Cost of refinancing term loan | (18,157) | 0 |
Proceeds from Paycheck Protection loan | 471,347 | 465,097 |
Net cash provided from (used in) financing activities | 462,131 | 419,133 |
NET INCREASE (DECREASE) IN CASH | 376,598 | (990,926) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 2,195,070 | 3,185,996 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 2,571,668 | 2,195,070 |
SUPPLEMENTAL INFORMATION: | ||
Cash paid for interest | $ 50,458 | $ 55,045 |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 12 Months Ended |
Dec. 31, 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 and monitoring" 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.stsfirst.com and www.lifeguardbreathtester.com. Information contained on our websites does not constitute part of this Form 10-K. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates in the Preparation of Financial Statements Debt Issuance Costs Simplifying the Presentation of Debt Issuance Costs Deferred Taxes Balance Sheet Classification of Deferred Taxes ( 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. Cash and Cash Equivalents Fair Value of Financial Instruments Concentration of Credit Risk 250,000 993,331 214,830 360,478 We have no significant off-balance sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements. Accounts Receivable Schedule of allowance for doubtful accounts Years Ended December 31 2021 2020 Balance, beginning of year $ 54,000 $ 30,000 Provision for estimated losses (48,712 ) 25,042 Recovery (write-off) of uncollectible accounts (288 ) (1,042 ) Balance, end of year $ 5,000 $ 54,000 The net accounts receivable balance at December 31, 2021 of $ 562,092 71,522 57,500 523,603 182,510 67,183 Inventories Inventories 2021 2020 Raw materials & deposits $ 2,179,332 $ 2,116,389 Work-in-process 84,963 16,862 Finished goods 559,494 524,875 Total gross inventories 2,823,789 2,658,126 Less reserve for obsolescence (155,000 ) (160,000 ) Total net inventories $ 2,668,789 $ 2,498,126 A summary of the activity in our inventory reserve for obsolescence is as follows: Inventory reserve Years Ended December 31 2021 2020 Balance, beginning of year $ 160,000 $ 140,000 Provision for estimated obsolescence 23,585 64,753 Write-off of obsolete inventory (28,585 ) (44,753 ) Balance, end of year $ 155,000 $ 160,000 Property and Equipment 254,010 343,834 Long-Lived Assets No Patents 12,883 19,417 12,932 0 5,990 Patents 2021 2020 Patents issued $ 190,508 $ 190,508 Patent applications 30,905 28,296 Accumulated amortization (86,985 ) (74,102 ) Total net patents $ 134,428 $ 144,702 Deposits and Other Assets Accrued Expenses Accrued expenses 2021 2020 Compensation $ 187,729 $ 165,686 Property and other taxes 68,514 69,109 Rebates 42,287 31,471 Total accrued expenses $ 298,530 $ 266,266 Product Warranty Reserve Product warranty reserve Years Ended December 31 2021 2020 Balance, beginning of year $ 46,500 $ 45,000 Provision for estimated warranty claims 25,818 27,279 Claims made (25,818 ) (25,779 ) Balance, end of year $ 46,500 $ 46,500 Income Taxes Accounting for Income Taxes ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements, uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. For the years ended December 31, 2021 and 2020, we did not have any interest or penalties or any significant uncertain tax positions. 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, or when agreed milestones are met in the case of product developments, 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. Disaggregation of revenue Year Ended December 31, Product sales: 2021 2020 Product sales and supplies $ 5,992,880 $ 5,509,424 Training, certification and data recording 624,167 541,580 Service plans and equipment rental 281,908 71,344 Product sales subtotal 6,898,955 6,122,348 Royalties 67,526 148,398 Rental income 87,949 85,956 Total revenues $ 7,054,430 $ 6,356,702 Deferred Revenue Paycheck Protection Loans 465,097 471,347 Rebates Recent Accounting Pronouncements Research and Development Expenses. 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 ("Black-Scholes 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 years 2021 and 2020 was $ 17,157 30,351 Segment Reporting Basic and Diluted Income and Loss per Common Share Earnings Per Share 0.01 0 |
BASIC AND DILUTED INCOME AND LO
BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE | 3. BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE We report both basic and diluted net income or loss per common share. Basic net income or loss per common share is computed by dividing net income or loss for the period by the weighted average number of common shares outstanding for the period. Diluted net income or loss per common share is computed by dividing the net income or 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 following table presents the calculation of basic and diluted net income per common share: basic and diluted net income per common share Years Ended December 31, 2021 2020 Net income (loss) $ 675,967 $ (921,930 ) Weighted average shares-basic 2,454,116 2,454,116 Effect of dilutive potential common shares 64,779 — Weighted average shares-diluted 2,518,895 2,454,116 Net income (loss) per share-basic $ 0.28 $ (0.38 ) Net income (loss) per share-diluted $ 0.27 $ (0.38 ) Antidilutive employee stock options — — |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | 4. STOCKHOLDERS' EQUITY Stock Option Plan. 150,000 Under ASC 718, the value of each employee stock option was estimated on the date of grant using the Black-Scholes model for the purpose of financial information in accordance with ASC 718. The use of a Black-Scholes model requires the use of actual employee exercise behavior data and the use of a number of assumptions including expected volatility, risk-free interest rate and expected dividends. Options to purchase 50,000 shares of stock at $6.00 apiece were granted in 2017 with vesting conditioned on meeting performance standards. An additional total of 110,500 48,000 48,000 No Cumulative compensation cost recognized in net income or loss with respect to options that are forfeited prior to vesting is adjusted as a reduction of compensation expense in the period of forfeiture. The volatility of the stock is based on a comparable public company's historical volatility since our stock is rarely traded. Fair value computations are highly sensitive to the volatility factor; the greater the volatility, the higher the computed fair value of options granted. The Black-Scholes model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. In addition, option valuation models require the use of assumptions, including the expected stock price volatility. Because our employee stock options have characteristics significantly different than those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management's opinion, the existing models do not necessarily provide a reliable single measure of the fair value of our employee stock options. A summary of our stock option activity and related information for equity compensation plans approved by security holders for each of the fiscal years ended December 31, 2021 and 2020 is as follows: Summary of our stock option activity STOCK OPTIONS OUTSTANDING Number Outstanding Weighted Average Exercise Price Per Share BALANCE AT DECEMBER 31, 2019 28,000 $ 5.95 Granted 110,500 3.80 Exercised — — Forfeited/expired (39,750 ) — BALANCE AT DECEMBER 31, 2020 98,750 $ 4.09 Granted 20,500 3.80 Exercised — — Forfeited/expired (6,250 ) — BALANCE AT DECEMBER 31, 2021 113,000 $ 3 .80 The following table summarizes information about employee stock options outstanding and exercisable at December 31, 2021: 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 3.80 113,000 3.33 $ 3.80 113,000 $ 3.80 The exercise price of all options granted through December 31, 2021 has been equal to or greater than the fair market value as of the date of grant, as determined by the Board. As of December 31, 2021, 30,300 Options to purchase 50,000 shares of stock at $8.83 apiece were granted during the year ended December 31, 2016. These options were forfeited and replaced with options to purchase 50,000 shares of stock at $6.00 apiece in 2018 in conjunction with the amendment of an employment agreement. In accordance with the terms of the grant, the number of options was reduced to 25,000 on December 31, 2019, and further reduced to 0 on December 31, 2020 as vesting of these options is subject to performance that was not achieved. The provisions of ASC 718-10-55 require the measurement and recognition of compensation expense for all share-based payment awards made to our employees and directors, including employee stock options, based on estimated fair values. Share-based compensation cost for stock options is measured at the grant date, based on the fair value as calculated by the Black-Scholes-Merton ("BSM") option-pricing model. The BSM option pricing model requires the use of actual employee exercise behavior data and the application of a number of assumptions, including expected volatility, risk free interest rate and expected dividends. For the options granted in 2020, the pricing model assumptions were: risk-free interest rate . 88 5 23 0 85 5 24 0 17,157 92,698 17,157 30,351 No options were exercised during the years ended December 31, 2021 and 2020. The total number of authorized shares of common stock continues to be 50,000,000 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 5. COMMITMENTS AND CONTINGENCIES Mortgage Expense 1,949,139 1,581,106 4.45 4.00 1,350,000 The new note is payable in 119 equal monthly installments of $ 7,453 786,607 Minimum future lease payments 2022 $ 50,663 2023 52,178 2024 53,738 2025 55,345 2026 57,000 2027 – 2031 1,068,642 Total 1,337,566 Less financing cost (21,501 ) Net term loan payable 1,316,065 Less current portion (48,513 ) Long term portion $ 1,267,552 Employee Severance Benefits Contractual Commitments and Purchase Orders 811,534 Regulatory Commitments |
LINE OF CREDIT AND PAYCHECK PRO
LINE OF CREDIT AND PAYCHECK PROTECTION LOAN | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
LINE OF CREDIT AND PAYCHECK PROTECTION LOAN | 6. LINE OF CREDIT AND PAYCHECK PROTECTION LOAN 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 | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 7. INCOME TAXES We account for income taxes under ASC 740, which requires the use of the liability method. ASC 740 provides that deferred taxassets and liabilities are recorded based on the differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, referred to as temporary differences. Deferred tax assets and liabilities at the end of each period are determined using the currently enacted tax rates applied to taxable income in the periods in which the deferred tax assets and liabilities are expected to be settled or realized. The CARES Act provided for carrying back our 2020 net operating loss, which resulted in previous Federal General Business Credits being eliminated, and a carryover available for 2021 of $179.426. After various adjustments, including the exclusion from taxable income of forgiveness of the Paycheck Protection loans, we reported a loss for tax purposes of $259,180 in 2021. Thus the Federal General Business Credit carryover is increased by unused 2021 credits of $71,341, making $250,767 available for 2022. Our income tax (benefit) provision is summarized below: Schedule of income tax provision Years Ended December 31, 2021 December 31, 2020 Current: Federal $ — $ (213,924 ) State — — Total current — (213,924 ) Deferred: Federal (47,940 ) (9,227 ) State (8,367 ) (52,257 ) Total deferred (56,307 ) (61,484 ) Total $ (56,307 ) $ (275,408 ) The items accounting for the difference between income taxes computed at the federal statutory rate and the (benefit) provision for income taxes consists of the following: Schedule of income tax reconciliation Years Ended December 31, 2021 December 31, 2020 Federal statutory rate $ 130,129 $ (194,152 ) Effect of: State taxes, net of federal tax benefit (2,335 ) (52,258 ) Research & development credit — — Paycheck Protection loan forgiveness and other (184,101 ) (28,998 ) Total $ (56,307 ) $ (275,408 ) The components of the deferred tax asset are as follows: Schedule of components of the deferred tax asset Current Deferred Tax Assets: December 31, 2021 December 31, 2020 Bad debt reserve $ 1,275 $ 13,840 Inventory reserve 39,525 41,008 Accrued vacation 16,988 19,816 Deferred income 19,899 11,336 Warranty reserve 11,858 11,918 Federal and State net operating loss carry forward 114,904 50,224 Total $ 204,449 $ 148,142 Our income tax returns are no longer subject to Federal or state tax examinations by tax authorities for years before 2016. |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS | 8. LEGAL PROCEEDINGS We were not involved or party to any legal proceedings at December 31, 2021 or December 31, 2020, and therefore made no accruals for legal proceedings in either 2021 or 2020. |
MAJOR CUSTOMERS_SUPPLIERS
MAJOR CUSTOMERS/SUPPLIERS | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
MAJOR CUSTOMERS/SUPPLIERS | 9. MAJOR CUSTOMERS/SUPPLIERS We depend on sales that are generated from our customers' ongoing usage of alcohol testing instruments. One customer contributed 4 % ($ 300,103 ) to our product sales in 2021, a second customer contributed 3 % ($ 228,162 ), a third customer contributed 3 % ($ 204,512 ), and no other customer contributed more than 3%. One customer contributed 6 % ($ 380,990 ) to our total sales in 2020, a second customer contributed 4 236,735 4 222,656 In 2021, we depended upon three vendors for approximately 21 21 |
DEFINED CONTRIBUTION EMPLOYEE B
DEFINED CONTRIBUTION EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
DEFINED CONTRIBUTION EMPLOYEE BENEFIT PLAN | 10. DEFINED CONTRIBUTION EMPLOYEE BENEFIT PLAN We have adopted a 401(k) Profit Sharing Plan ("401(k) Plan") which covers all full-time employees who have completed 3 months of full-time continuous service and are age eighteen or older. Participants may defer up to 100% of their gross pay up to 401(k) Plan limits. Participants are immediately vested in their contributions. We make monthly discretionary matching contributions of 3 8,731 31,853 |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | 11. 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 were commonly used by all business segments and were indistinguishable. The following sets forth information about the operations of the business segments for the years ended December 31, 2021 and 2020. Operations of business segments 2021 2020 Product sales $ 6,898,955 $ 6,122,348 Royalties 67,526 148,398 Products subtotal 6,966,481 6,270,746 Rentals 87,949 85,956 Total $ 7,054,430 $ 6,356,702 Gross profit: Product sales $ 2,952,410 $ 2,002,161 Royalties 67,526 148,398 Products subtotal 3,019,936 2,150,559 Rentals 40,160 29,987 Total $ 3,060,096 $ 2,180,546 Interest expense: Product sales $ 33,612 $ 36,863 Royalties — — Products subtotal 33,612 36,863 Rentals 17,660 19,266 Total $ 51,272 $ 56,129 Net income (loss) before taxes: Product sales $ 529,634 $ (1,356,457 ) Royalties 67,526 148,398 Products subtotal 597,160 (1,208,059 ) Rentals 22,500 10,721 Total $ 619,660 $ (1,197,338 ) There were no intersegment revenues. At December 31, 2021, $ 575,671 8,374,160 Future rental income and related expenses will depend on whether existing leases are renewed. Minimum base rents for leases in place at December 31, 2021 are scheduled to be $54,956 in 2022 and $15,378 in 2023. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 12. 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, except as follows. On February 3, 2022 we granted 15,000 5 The factors used to estimate the value of the revised option grant on February 3, 2022 and the resulting fair market value, are as follows. Assumptions used for stock option grants Stock price $3.80 Exercise price per share $3.80 Original term (years) 5 Volatility 31.00 Annual rate of quarterly dividends None Risk free interest rate 1.66 Fair market value of options $ 17,202 The above fair market value of these options will be a charge to our statement of income, with an offsetting credit to capital, for the quarter ending March 31, 2022. |
QUARTERLY RESULTS (UNAUDITED)
QUARTERLY RESULTS (UNAUDITED) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY RESULTS (UNAUDITED) | 13. QUARTERLY RESULTS (UNAUDITED) Schedule of quarterly results 2021 Q1 Q2 Q3 Q4 Revenues $ 1,809,543 $ 1,729,636 $ 1,887,488 $ 1,627,763 Gross profit 823,877 605,418 934,051 696,750 Net income (loss)(1) 403,471 (109,712 ) 522,660 (140,452 ) Basic earnings (loss) per share 0.16 (0.04 ) 0.21 (0.05 ) Diluted earnings (loss) per share $ 0.16 $ (0.04 ) $ 0.21 $ (0.05 ) 2020 Q1 Q2 Q3 Q4 Revenues $ 2,018,336 $ 1,320,038 $ 1,555,068 $ 1,463,260 Gross profit 778,076 328,069 597,104 477,297 Net income (loss) (165,306 ) (349,592 ) (212,766 ) (194,266 ) Basic earnings (loss) per share (0.07 ) (0.14 ) (0.09 ) (0.08 ) Diluted earnings (loss) per share $ (0.07 ) $ (0.14 ) $ (0.09 ) $ (0.08 ) (1) Includes PPP loan forgiveness of $465,097 in Q1. Includes PPP loan forgiveness of $471,347 in Q3. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements |
Debt Issuance Costs | Debt Issuance Costs Simplifying the Presentation of Debt Issuance Costs |
Deferred Taxes | Deferred Taxes Balance Sheet Classification of Deferred Taxes ( |
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. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Concentration of Credit Risk | Concentration of Credit Risk 250,000 993,331 214,830 360,478 We have no significant off-balance sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements. |
Accounts Receivable | Accounts Receivable Schedule of allowance for doubtful accounts Years Ended December 31 2021 2020 Balance, beginning of year $ 54,000 $ 30,000 Provision for estimated losses (48,712 ) 25,042 Recovery (write-off) of uncollectible accounts (288 ) (1,042 ) Balance, end of year $ 5,000 $ 54,000 The net accounts receivable balance at December 31, 2021 of $ 562,092 71,522 57,500 523,603 182,510 67,183 |
Inventories | Inventories Inventories 2021 2020 Raw materials & deposits $ 2,179,332 $ 2,116,389 Work-in-process 84,963 16,862 Finished goods 559,494 524,875 Total gross inventories 2,823,789 2,658,126 Less reserve for obsolescence (155,000 ) (160,000 ) Total net inventories $ 2,668,789 $ 2,498,126 A summary of the activity in our inventory reserve for obsolescence is as follows: Inventory reserve Years Ended December 31 2021 2020 Balance, beginning of year $ 160,000 $ 140,000 Provision for estimated obsolescence 23,585 64,753 Write-off of obsolete inventory (28,585 ) (44,753 ) Balance, end of year $ 155,000 $ 160,000 |
Property and Equipment | Property and Equipment 254,010 343,834 |
Long-Lived Assets | Long-Lived Assets No |
Patents | Patents 12,883 19,417 12,932 0 5,990 Patents 2021 2020 Patents issued $ 190,508 $ 190,508 Patent applications 30,905 28,296 Accumulated amortization (86,985 ) (74,102 ) Total net patents $ 134,428 $ 144,702 |
Deposits and Other Assets | Deposits and Other Assets |
Accrued Expenses | Accrued Expenses Accrued expenses 2021 2020 Compensation $ 187,729 $ 165,686 Property and other taxes 68,514 69,109 Rebates 42,287 31,471 Total accrued expenses $ 298,530 $ 266,266 |
Product Warranty Reserve | Product Warranty Reserve Product warranty reserve Years Ended December 31 2021 2020 Balance, beginning of year $ 46,500 $ 45,000 Provision for estimated warranty claims 25,818 27,279 Claims made (25,818 ) (25,779 ) Balance, end of year $ 46,500 $ 46,500 |
Income Taxes | Income Taxes Accounting for Income Taxes ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements, uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. For the years ended December 31, 2021 and 2020, we did not have any interest or penalties or any significant uncertain tax positions. |
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, or when agreed milestones are met in the case of product developments, 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. Disaggregation of revenue Year Ended December 31, Product sales: 2021 2020 Product sales and supplies $ 5,992,880 $ 5,509,424 Training, certification and data recording 624,167 541,580 Service plans and equipment rental 281,908 71,344 Product sales subtotal 6,898,955 6,122,348 Royalties 67,526 148,398 Rental income 87,949 85,956 Total revenues $ 7,054,430 $ 6,356,702 |
Deferred Revenue | Deferred Revenue |
Paycheck Protection Loans | Paycheck Protection Loans 465,097 471,347 |
Rebates | Rebates |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
Research and Development Expenses. | Research and Development Expenses. |
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 ("Black-Scholes 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 years 2021 and 2020 was $ 17,157 30,351 |
Segment Reporting | Segment Reporting |
Basic and Diluted Income and Loss per Common Share | Basic and Diluted Income and Loss per Common Share Earnings Per Share 0.01 0 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of allowance for doubtful accounts | Schedule of allowance for doubtful accounts Years Ended December 31 2021 2020 Balance, beginning of year $ 54,000 $ 30,000 Provision for estimated losses (48,712 ) 25,042 Recovery (write-off) of uncollectible accounts (288 ) (1,042 ) Balance, end of year $ 5,000 $ 54,000 |
Inventories | Inventories 2021 2020 Raw materials & deposits $ 2,179,332 $ 2,116,389 Work-in-process 84,963 16,862 Finished goods 559,494 524,875 Total gross inventories 2,823,789 2,658,126 Less reserve for obsolescence (155,000 ) (160,000 ) Total net inventories $ 2,668,789 $ 2,498,126 |
Inventory reserve | Inventory reserve Years Ended December 31 2021 2020 Balance, beginning of year $ 160,000 $ 140,000 Provision for estimated obsolescence 23,585 64,753 Write-off of obsolete inventory (28,585 ) (44,753 ) Balance, end of year $ 155,000 $ 160,000 |
Patents | Patents 2021 2020 Patents issued $ 190,508 $ 190,508 Patent applications 30,905 28,296 Accumulated amortization (86,985 ) (74,102 ) Total net patents $ 134,428 $ 144,702 |
Accrued expenses | Accrued expenses 2021 2020 Compensation $ 187,729 $ 165,686 Property and other taxes 68,514 69,109 Rebates 42,287 31,471 Total accrued expenses $ 298,530 $ 266,266 |
Product warranty reserve | Product warranty reserve Years Ended December 31 2021 2020 Balance, beginning of year $ 46,500 $ 45,000 Provision for estimated warranty claims 25,818 27,279 Claims made (25,818 ) (25,779 ) Balance, end of year $ 46,500 $ 46,500 |
Disaggregation of revenue | Disaggregation of revenue Year Ended December 31, Product sales: 2021 2020 Product sales and supplies $ 5,992,880 $ 5,509,424 Training, certification and data recording 624,167 541,580 Service plans and equipment rental 281,908 71,344 Product sales subtotal 6,898,955 6,122,348 Royalties 67,526 148,398 Rental income 87,949 85,956 Total revenues $ 7,054,430 $ 6,356,702 |
BASIC AND DILUTED INCOME AND _2
BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
basic and diluted net income per common share | basic and diluted net income per common share Years Ended December 31, 2021 2020 Net income (loss) $ 675,967 $ (921,930 ) Weighted average shares-basic 2,454,116 2,454,116 Effect of dilutive potential common shares 64,779 — Weighted average shares-diluted 2,518,895 2,454,116 Net income (loss) per share-basic $ 0.28 $ (0.38 ) Net income (loss) per share-diluted $ 0.27 $ (0.38 ) Antidilutive employee stock options — — |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Summary of our stock option activity | Summary of our stock option activity STOCK OPTIONS OUTSTANDING Number Outstanding Weighted Average Exercise Price Per Share BALANCE AT DECEMBER 31, 2019 28,000 $ 5.95 Granted 110,500 3.80 Exercised — — Forfeited/expired (39,750 ) — BALANCE AT DECEMBER 31, 2020 98,750 $ 4.09 Granted 20,500 3.80 Exercised — — Forfeited/expired (6,250 ) — BALANCE AT DECEMBER 31, 2021 113,000 $ 3 .80 |
Stock options outstanding and exercisable | 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 3.80 113,000 3.33 $ 3.80 113,000 $ 3.80 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum future lease payments | Minimum future lease payments 2022 $ 50,663 2023 52,178 2024 53,738 2025 55,345 2026 57,000 2027 – 2031 1,068,642 Total 1,337,566 Less financing cost (21,501 ) Net term loan payable 1,316,065 Less current portion (48,513 ) Long term portion $ 1,267,552 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax provision | Schedule of income tax provision Years Ended December 31, 2021 December 31, 2020 Current: Federal $ — $ (213,924 ) State — — Total current — (213,924 ) Deferred: Federal (47,940 ) (9,227 ) State (8,367 ) (52,257 ) Total deferred (56,307 ) (61,484 ) Total $ (56,307 ) $ (275,408 ) |
Schedule of income tax reconciliation | Schedule of income tax reconciliation Years Ended December 31, 2021 December 31, 2020 Federal statutory rate $ 130,129 $ (194,152 ) Effect of: State taxes, net of federal tax benefit (2,335 ) (52,258 ) Research & development credit — — Paycheck Protection loan forgiveness and other (184,101 ) (28,998 ) Total $ (56,307 ) $ (275,408 ) |
Schedule of components of the deferred tax asset | Schedule of components of the deferred tax asset Current Deferred Tax Assets: December 31, 2021 December 31, 2020 Bad debt reserve $ 1,275 $ 13,840 Inventory reserve 39,525 41,008 Accrued vacation 16,988 19,816 Deferred income 19,899 11,336 Warranty reserve 11,858 11,918 Federal and State net operating loss carry forward 114,904 50,224 Total $ 204,449 $ 148,142 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Operations of business segments | Operations of business segments 2021 2020 Product sales $ 6,898,955 $ 6,122,348 Royalties 67,526 148,398 Products subtotal 6,966,481 6,270,746 Rentals 87,949 85,956 Total $ 7,054,430 $ 6,356,702 Gross profit: Product sales $ 2,952,410 $ 2,002,161 Royalties 67,526 148,398 Products subtotal 3,019,936 2,150,559 Rentals 40,160 29,987 Total $ 3,060,096 $ 2,180,546 Interest expense: Product sales $ 33,612 $ 36,863 Royalties — — Products subtotal 33,612 36,863 Rentals 17,660 19,266 Total $ 51,272 $ 56,129 Net income (loss) before taxes: Product sales $ 529,634 $ (1,356,457 ) Royalties 67,526 148,398 Products subtotal 597,160 (1,208,059 ) Rentals 22,500 10,721 Total $ 619,660 $ (1,197,338 ) |
SUBSEQUENT EVENTS (Tables)
SUBSEQUENT EVENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Assumptions used for stock option grants | Assumptions used for stock option grants Stock price $3.80 Exercise price per share $3.80 Original term (years) 5 Volatility 31.00 Annual rate of quarterly dividends None Risk free interest rate 1.66 Fair market value of options $ 17,202 |
QUARTERLY RESULTS (UNAUDITED) (
QUARTERLY RESULTS (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly results | Schedule of quarterly results 2021 Q1 Q2 Q3 Q4 Revenues $ 1,809,543 $ 1,729,636 $ 1,887,488 $ 1,627,763 Gross profit 823,877 605,418 934,051 696,750 Net income (loss)(1) 403,471 (109,712 ) 522,660 (140,452 ) Basic earnings (loss) per share 0.16 (0.04 ) 0.21 (0.05 ) Diluted earnings (loss) per share $ 0.16 $ (0.04 ) $ 0.21 $ (0.05 ) 2020 Q1 Q2 Q3 Q4 Revenues $ 2,018,336 $ 1,320,038 $ 1,555,068 $ 1,463,260 Gross profit 778,076 328,069 597,104 477,297 Net income (loss) (165,306 ) (349,592 ) (212,766 ) (194,266 ) Basic earnings (loss) per share (0.07 ) (0.14 ) (0.09 ) (0.08 ) Diluted earnings (loss) per share $ (0.07 ) $ (0.14 ) $ (0.09 ) $ (0.08 ) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Balance, beginning of year | $ 54,000 | $ 30,000 |
Provision for estimated losses | (48,712) | 25,042 |
Write-off of uncollectible accounts | (288) | (1,042) |
Balance, end of year | $ 5,000 | $ 54,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | |||
Raw materials & deposits | $ 2,179,332 | $ 2,116,389 | |
Work-in-process | 84,963 | 16,862 | |
Finished goods | 559,494 | 524,875 | |
Total gross inventories | 2,823,789 | 2,658,126 | |
Less reserve for obsolescence | (155,000) | (160,000) | $ (140,000) |
Total net inventories | $ 2,668,789 | $ 2,498,126 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Inventory reserve for obsolescence, end of year | $ 160,000 | $ 140,000 |
Provision for estimated obsolescence | 23,585 | 64,753 |
Write-off of obsolete inventory | (28,585) | (44,753) |
Inventory reserve for obsolescence, end of year | $ 155,000 | $ 160,000 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Patents issued | $ 190,508 | $ 190,508 |
Patent applications | 30,905 | 28,296 |
Accumulated amortization | (86,985) | (74,102) |
Total net patents | $ 134,428 | $ 144,702 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Compensation | $ 187,729 | $ 165,686 |
Property and other taxes | 68,514 | 69,109 |
Rebates | 42,287 | 31,471 |
Total accrued expenses | $ 298,530 | $ 266,266 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Product warranty reserve, end of year | $ 46,500 | $ 45,000 |
Provision for estimated warranty claims | 25,818 | 27,279 |
Claims made | (25,818) | (25,779) |
Product warranty reserve, end of year | $ 46,500 | $ 46,500 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 6) - USD ($) | May 04, 2020 | May 04, 2020 | Feb. 29, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Product Information [Line Items] | |||||
Total revenues | $ 7,054,430 | $ 6,356,702 | |||
Proceeds from loan | $ 465,097 | $ 471,347 | $ 465,097 | ||
Dilution from potential common shares outstanding | $ 0.01 | $ 0 | |||
PPP Loan [Member] | |||||
Product Information [Line Items] | |||||
Proceeds from loan | $ 465,097 | $ 471,347 | $ 471,347 | ||
Product sales and supplies | |||||
Product Information [Line Items] | |||||
Total revenues | 5,992,880 | $ 5,509,424 | |||
Training, certification and data recording | |||||
Product Information [Line Items] | |||||
Total revenues | 624,167 | 541,580 | |||
Service plans and equipment rental | |||||
Product Information [Line Items] | |||||
Total revenues | 281,908 | 71,344 | |||
Product sales subtotal | |||||
Product Information [Line Items] | |||||
Total revenues | 6,898,955 | 6,122,348 | |||
Royalties | |||||
Product Information [Line Items] | |||||
Total revenues | 67,526 | 148,398 | |||
Rental income | |||||
Product Information [Line Items] | |||||
Total revenues | $ 87,949 | $ 85,956 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Insured cash | $ 250,000 | |
Accounts receivable, net | 562,092 | $ 523,603 |
Depreciation expense | 254,010 | 343,834 |
Impairment of patents | 0 | 0 |
Amortization of patents | 12,883 | 19,417 |
Amortization of debt issuance costs | 12,932 | |
Impairments (included in) amortization expense | 0 | 5,990 |
Stock-based compensation expense | 17,157 | 30,351 |
Customer One | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Accounts receivable, net | 71,522 | 182,510 |
Customer Two | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Accounts receivable, net | 57,500 | $ 67,183 |
One Financial Institution [Member] | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Insured cash | 993,331 | |
Second Financial Institution [Member] | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Insured cash | 214,830 | |
Third Financial Institution [Member] | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Insured cash | $ 360,478 |
BASIC AND DILUTED INCOME AND _3
BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ 675,967 | $ (921,930) |
Weighted average shares-basic | 2,454,116 | 2,454,116 |
Effect of dilutive potential common shares | 64,779 | 0 |
Weighted average shares-diluted | 2,518,895 | 2,454,116 |
Net income (loss) per share-basic | $ 0.28 | $ (0.38) |
Net income (loss) per share-diluted | $ 0.27 | $ (0.38) |
Antidilutive employee stock options | 0 | 0 |
STOCKHOLDERS' EQUITY (Details 1
STOCKHOLDERS' EQUITY (Details 1) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||
Options outstanding, beginning | 98,750 | 28,000 |
Weighted-average exercise price per share, beginning | $ 4.09 | $ 5.95 |
Options granted | 20,500 | 110,500 |
Weighted-average exercise price per share granted | $ 3.80 | $ 3.80 |
Options exercised | ||
Weighted-average exercise price per share exercised | ||
Options forfeited/expired | (6,250) | (39,750) |
Weighted-average exercise price per share forfeited/expired | ||
Options outstanding, ending | 113,000 | 98,750 |
Weighted-average exercise price per share, ending | $ 3 | $ 4.09 |
STOCKHOLDERS' EQUITY (Details 2
STOCKHOLDERS' EQUITY (Details 2) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Option outstanding | 113,000 | 98,750 | 28,000 |
Weighted average exercise price per share | $ 3 | $ 4.09 | $ 5.95 |
Price range $3.80 | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Range of Exercise Prices | $ 3.80 | ||
Option outstanding | 113,000 | ||
Weighted average remaining contractual life (in years) | 3 years 3 months 29 days | ||
Weighted average exercise price per share | $ 3.80 | ||
Number exercisable | 113,000 | ||
Weighted average exercise price per share | $ 3.80 |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options, granted | 110,500 | |
Options, exercised | 0 | 0 |
Risk free interest rate | 85.00% | 88.00% |
Original term (years) | 5 years | 5 years |
Volatility | 24.00% | 23.00% |
Dividend | 0.00% | 0.00% |
Fair market value of options | $ 17,157 | $ 92,698 |
Share based compensation | $ 17,157 | $ 30,351 |
Common stock, authorized shares | 50,000,000 | 50,000,000 |
Two Officers And Three Directors [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options, granted | 48,000 | |
2013 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock, shares reserved | 150,000 | |
Options available for grant | 30,300 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 50,663 |
2023 | 52,178 |
2024 | 53,738 |
2025 | 55,345 |
2026 | 57,000 |
2027 – 2031 | 1,068,642 |
Total | 1,337,566 |
Less financing cost | (21,501) |
Net term loan payable | 1,316,065 |
Less current portion | (48,513) |
Long term portion | $ 1,267,552 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 6 Months Ended | 9 Months Ended | 10 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Sep. 30, 2021 | Oct. 31, 2014 | Dec. 31, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Facilities Purchased | $ 1,949,139 | |||
Periodic Payment | $ 7,453 | |||
Final payment | $ 786,607 | |||
Outstanding purchase orders issued to vendors | $ 811,534 | |||
Bank Of America [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Term Loan | $ 1,581,106 | |||
Debt Instrument, Interest Rate During Period | 4.45% | |||
Citywide Banks [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Debt Instrument, Interest Rate During Period | 4.00% | |||
Proceeds from term loan | $ 1,350,000 |
LINE OF CREDIT AND PAYCHECK P_2
LINE OF CREDIT AND PAYCHECK PROTECTION LOAN (Details Narrative) - USD ($) | May 04, 2020 | May 04, 2020 | Feb. 29, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||||
Line of credit | $ 750,000 | ||||
Maturity date | Sep. 28, 2021 | ||||
Line of credit facility | $ 0 | 0 | |||
Proceeds from loans | $ 465,097 | 471,347 | $ 465,097 | ||
PPP Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from loans | $ 465,097 | $ 471,347 | $ 471,347 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | ||
Federal | $ (213,924) | |
State | ||
Total current | (213,924) | |
Deferred: | ||
Federal | (47,940) | (9,227) |
State | (8,367) | (52,257) |
Total deferred | (56,307) | (61,484) |
Total | $ (56,307) | $ (275,408) |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory rate | $ 130,129 | $ (194,152) |
State taxes, net of federal tax benefit | (2,335) | (52,258) |
Research & development credit | ||
Other | (184,101) | (28,998) |
Total | $ (56,307) | $ (275,408) |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current Deferred Tax Assets: | ||
Bad debt reserve | $ 1,275 | $ 13,840 |
Inventory reserve | 39,525 | 41,008 |
Accrued vacation | 16,988 | 19,816 |
Deferred income | 19,899 | 11,336 |
Warranty reserve | 11,858 | 11,918 |
Federal and State net operating loss carry forward | 114,904 | 50,224 |
Total | $ 204,449 | $ 148,142 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income tax, description | After various adjustments, including the exclusion from taxable income of forgiveness of the Paycheck Protection loans, we reported a loss for tax purposes of $259,180 in 2021. Thus the Federal General Business Credit carryover is increased by unused 2021 credits of $71,341, making $250,767 available for 2022. |
MAJOR CUSTOMERS_SUPPLIERS (Deta
MAJOR CUSTOMERS/SUPPLIERS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue Not from Contract with Customer | $ 7,054,430 | $ 6,356,702 |
Customer One | ||
Concentration risk, percentage | 4.00% | 6.00% |
Revenue Not from Contract with Customer | $ 300,103 | $ 380,990 |
Customer Two | ||
Concentration risk, percentage | 3.00% | 4.00% |
Revenue Not from Contract with Customer | $ 228,162 | $ 236,735 |
Customer Three | ||
Concentration risk, percentage | 3.00% | 4.00% |
Revenue Not from Contract with Customer | $ 204,512 | $ 222,656 |
Vendor | ||
Concentration risk, percentage | 21.00% | 21.00% |
DEFINED CONTRIBUTION EMPLOYEE_2
DEFINED CONTRIBUTION EMPLOYEE BENEFIT PLAN (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | ||
Percentage of payroll to discretionary contribution | 3.00% | 3.00% |
Discretionary contributions amount | $ 8,731 | $ 31,853 |
BUSINESS SEGMENTS (Details)
BUSINESS SEGMENTS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 7,054,430 | $ 6,356,702 |
Gross profit | 3,060,096 | 2,180,546 |
Interest expense | 51,272 | 56,129 |
Net income (loss) before taxes | 619,660 | (1,197,338) |
Product Concentration Risk [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 6,898,955 | 6,122,348 |
Gross profit | 2,952,410 | 2,002,161 |
Interest expense | 33,612 | 36,863 |
Net income (loss) before taxes | 529,634 | (1,356,457) |
Royalties | ||
Segment Reporting Information [Line Items] | ||
Revenues | 67,526 | 148,398 |
Gross profit | 67,526 | 148,398 |
Interest expense | ||
Net income (loss) before taxes | 67,526 | 148,398 |
Products Subtotal | ||
Segment Reporting Information [Line Items] | ||
Revenues | 6,966,481 | 6,270,746 |
Gross profit | 3,019,936 | 2,150,559 |
Interest expense | 33,612 | 36,863 |
Net income (loss) before taxes | 597,160 | (1,208,059) |
Rentals | ||
Segment Reporting Information [Line Items] | ||
Revenues | 87,949 | 85,956 |
Gross profit | 40,160 | 29,987 |
Interest expense | 17,660 | 19,266 |
Net income (loss) before taxes | $ 22,500 | $ 10,721 |
BUSINESS SEGMENTS (Details Narr
BUSINESS SEGMENTS (Details Narrative) | Dec. 31, 2021USD ($) |
Segment Reporting [Abstract] | |
Rentals segment | $ 575,671 |
Rentals segment remainder | $ 8,374,160 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Feb. 03, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Subsequent Event [Line Items] | |||
Original term (years) | 5 years | 5 years | |
Volatility | 24.00% | 23.00% | |
Annual rate of quarterly dividends | 0.00% | 0.00% | |
Risk free interest rate | 85.00% | 88.00% | |
Fair market value of options | $ 17,157 | $ 92,698 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Stock price | $ 3.80 | ||
Exercise price per share | $ 3.80 | ||
Original term (years) | 5 years | ||
Volatility | 31.00% | ||
Annual rate of quarterly dividends | 0.00% | ||
Risk free interest rate | 1.66% | ||
Fair market value of options | $ 17,202 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - Employees [Member] | Feb. 03, 2022shares |
Subsequent Event [Line Items] | |
Options granted | 15,000 |
Options term | 5 years |
QUARTERLY RESULTS (UNAUDITED)_2
QUARTERLY RESULTS (UNAUDITED) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Revenues | $ 1,627,763 | $ 1,887,488 | $ 1,729,636 | $ 1,809,543 | $ 1,463,260 | $ 1,555,068 | $ 1,320,038 | $ 2,018,336 | $ 7,054,430 | $ 6,356,702 | ||||
Gross profit | 696,750 | 934,051 | 605,418 | 823,877 | 477,297 | 597,104 | 328,069 | 778,076 | 3,060,096 | 2,180,546 | ||||
Net income (loss) | $ (140,452) | [1] | $ 522,660 | [1] | $ (109,712) | [1] | $ 403,471 | [1] | $ (194,266) | $ (212,766) | $ (349,592) | $ (165,306) | $ 675,967 | $ (921,930) |
Basic earnings (loss) per share | $ (0.05) | $ 0.21 | $ (0.04) | $ 0.16 | $ (0.08) | $ (0.09) | $ (0.14) | $ (0.07) | $ 0.28 | $ (0.38) | ||||
Diluted earnings (loss) per share | $ (0.05) | $ 0.21 | $ (0.04) | $ 0.16 | $ (0.08) | $ (0.09) | $ (0.14) | $ (0.07) | $ 0.27 | $ (0.38) | ||||
[1] | Includes PPP loan forgiveness of $465,097 in Q1. Includes PPP loan forgiveness of $471,347 in Q3. |