Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 10, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
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 ($) | Mar. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Cash | $ 2,018,828 | $ 2,571,668 |
Accounts receivable, net | 798,748 | 562,092 |
Inventories, net | 2,514,112 | 2,668,789 |
Prepaid expenses and other | 167,006 | 56,897 |
Total current assets | 5,498,694 | 5,859,446 |
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 | 467,485 | 456,685 |
Less accumulated depreciation | (2,628,470) | (2,518,966) |
Total property and equipment, net | 2,489,324 | 2,588,028 |
OTHER ASSETS: | ||
Patents, net | 115,920 | 134,428 |
Deposits and other | 163,480 | 163,480 |
Deferred taxes | 248,024 | 204,449 |
Total other assets | 527,424 | 502,357 |
Total assets | 8,515,442 | 8,949,831 |
CURRENT LIABILITIES: | ||
Accounts payable | 295,523 | 445,985 |
Term loan payable, current portion | 48,887 | 48,513 |
Customer deposits | 166,100 | 170,952 |
Accrued expenses | 155,299 | 298,530 |
Deferred revenue, current portion | 74,460 | 71,604 |
Reserve for warranty expense | 46,500 | 46,500 |
Total current liabilities | 786,769 | 1,082,084 |
debt issuance costs | 1,255,727 | 1,267,551 |
DEFERRED REVENUE, net of current portion | 6,486 | 6,430 |
Total liabilities | 2,048,982 | 2,356,065 |
STOCKHOLDERS' EQUITY: | ||
authorized, 2,454,116 shares outstanding | 4,668,014 | 4,650,812 |
Retained earnings | 1,798,446 | 1,942,954 |
Total stockholders' equity | 6,466,460 | 6,593,766 |
Total liabilities and stockholders' equity | $ 8,515,442 | $ 8,949,831 |
Condensed Balance Sheets (Una_2
Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
REVENUES: | ||
Product sales | $ 2,111,757 | $ 1,775,447 |
Royalties | 26,640 | 12,564 |
Rental income | 22,239 | 21,532 |
Total | 2,160,636 | 1,809,543 |
COST OF SALES | 1,318,747 | 985,666 |
GROSS PROFIT | 841,889 | 823,877 |
OPERATING EXPENSES: | ||
Research and development | 390,024 | 307,212 |
Sales and marketing | 276,637 | 230,478 |
General and administrative | 352,833 | 350,120 |
Total | 1,019,494 | 887,810 |
OPERATING INCOME (LOSS) | (177,605) | (63,933) |
OTHER INCOME (EXPENSE): | ||
Forgiveness of Paycheck Protection loan | 465,097 | |
Interest income | 432 | 499 |
Interest expense | (10,910) | (13,517) |
Total | (10,478) | 452,079 |
NET INCOME (LOSS) BEFORE PROVISION FOR TAXES | (188,083) | 388,146 |
BENEFIT FROM (PROVISION FOR) FEDERAL AND STATE INCOME TAXES | 43,575 | 15,325 |
NET INCOME (LOSS) | $ (144,508) | $ 403,471 |
NET INCOME (LOSS) PER SHARE, BASIC | $ (0.06) | $ 0.16 |
NET INCOME (LOSS) PER SHARE, DILUTED | $ (0.06) | $ 0.16 |
WEIGHTED AVERAGE SHARES, BASIC | 2,454,116 | 2,454,116 |
WEIGHTED AVERAGE SHARES, DILUTED | 2,454,116 | 2,454,116 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Retained Earnings [Member] | Total |
Beginning Balance at Dec. 31, 2020 | $ 4,633,655 | $ 1,266,987 | $ 5,900,642 |
Stock based compensation expense relatedto stock options, shares | 17,157 | ||
Net income (loss) | 403,471 | 403,471 | |
Ending balance, amount at Mar. 31, 2021 | 4,650,812 | 1,670,458 | 6,321,270 |
Beginning Balance at Dec. 31, 2021 | 4,650,812 | 1,942,954 | 6,593,766 |
Stock based compensation expense relatedto stock options, shares | 17,202 | ||
Net income (loss) | (144,508) | (144,508) | |
Ending balance, amount at Mar. 31, 2022 | $ 4,668,014 | $ 1,798,446 | $ 6,466,460 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (144,508) | $ 403,471 |
Adjustments to reconcile net income to net cash | ||
Forgiveness of Paycheck Protection loan (round 1) | 465,097 | |
Depreciation and amortization | 129,088 | 66,828 |
Provision for inventory obsolescence, net change | 34,789 | |
Deferred taxes, net change | (43,575) | (1,441) |
stock options | 17,202 | 17,157 |
Changes in operating assets and liabilities- | ||
Accounts receivable | 236,656 | 169,622 |
Inventories | (119,888) | 82,022 |
Income taxes receivable | 13,884 | |
Prepaid expenses and other | 110,109 | 20,606 |
Accounts payable | (150,462) | 21,968 |
Customer deposits | (4,852) | 6,170 |
Accrued expenses | (143,231) | (102,547) |
Deferred revenue | 2,912 | 2,249 |
operating activities | (529,514) | (337,376) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (10,800) | |
Net cash (used in) investing activities | (10,800) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from Paycheck Protection loan (round 2) | 471,347 | |
Principal payments made on term loan | (12,526) | (12,006) |
activities | (12,526) | 459,341 |
NET INCREASE (DECREASE) IN CASH | (552,840) | 121,965 |
CASH, BEGINNING OF PERIOD | 2,571,668 | 2,195,070 |
CASH, END OF PERIOD | 2,018,828 | 2,317,035 |
SUPPLEMENTAL INFORMATION: | ||
Cash paid for interest | $ 9,834 | $ 13,246 |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 3 Months Ended |
Mar. 31, 2022 | |
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 | 3 Months Ended |
Mar. 31, 2022 | |
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 2022 2021 Raw materials & deposits $ 2,001,374 $ 2,179,332 Work-in-process 61,718 84,963 Finished goods 640,809 559,494 Total gross inventories 2,703,901 2,823,789 Less reserve for obsolescence (189,789 ) (155,000 ) Total net inventories $ 2,514,112 $ 2,668,789 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 months ended March 31, 2022 and March 31, 2021. Schedule of Disaggregation of revenue Product sales: 2022 2021 Product sales and supplies $ 1,923,948 $ 1,626,160 Training, certification and data recording 167,255 135,922 Service plans and equipment rental 20,554 13,365 Products subtotal 2,111,757 1,775,447 Royalties 26,640 12,564 Building rentals 22,239 21,532 Total revenues $ 2,160,636 $ 1,809,543 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 March 31, 2022 and 2021 was $ 17,202 17,157 Segment Reporting |
BASIC AND DILUTED INCOME (LOSS)
BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2022 | |
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 months ended March 31, 2022 and March 31, 2021: Schedule of Calculation of basic and diluted net income per common share 2022 2021 Net income (loss) $ (144,508 ) $ 403,471 Weighted average shares-basic 2,454,116 2,454,116 Effect of dilutive potential common shares — — Weighted average shares-diluted 2,454,116 2,454,116 Net income (loss) per share-basic $ (0.06 ) $ 0.16 Net income (loss) per share-diluted $ (0.06 ) $ 0.16 Antidilutive employee stock options — — |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | 4. STOCKHOLDERS' EQUITY The following table summarizes information about employee stock options outstanding and exercisable at March 31, 2022: 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 $3.80 113,000 3.29 $3.80 113,000 $3.80 The exercise price of all options granted through March 31, 2022 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 March 31, 2022, 25,300 We granted 50,000 25,000 0 A total of 15,000 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 | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 5. COMMITMENTS AND CONTINGENCIES Mortgage Expense 1,949,139 1,581,106 4.00 8,417 1,138,104 Schedule of Minimum future lease payments 2022 $ 38,137 2023 52,178 2024 53,738 2025 55,345 2026 57,000 2027 – 2031 1,068,641 Total 1,325,039 Less financing cost (20,425 ) Net term loan payable 1,304,614 Less current portion (48,887 ) Long term portion $ 1,255,727 Employee Severance Benefits Contractual Commitments and Purchase Orders 601,095 Regulatory Commitments |
LINE OF CREDIT AND PAYCHECK PRO
LINE OF CREDIT AND PAYCHECK PROTECTION LOAN | 3 Months Ended |
Mar. 31, 2022 | |
Line Of Credit And Paycheck Protection Loan | |
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 | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 2021 Federal statutory rate $ (39,497 ) $ 81,511 Effect of: State taxes, net of federal tax benefit 7,690 2,769 Other (11,768 ) (99,605 ) Total $ (43,575 ) $ (15,325 ) |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 3 Months Ended |
Mar. 31, 2022 | |
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 were commonly used by all business segments and were indistinguishable. The following sets forth information about the operations of the business segments for the three months ended March 31, 2022 and 2021. Schedule of Operations of business segments 2022 2021 Product sales $ 2,111,757 $ 1,775,447 Royalties 26,640 12,564 Products subtotal 2,138,397 1,788,011 Rentals 22,239 21,532 Total $ 2,160,636 $ 1,809,543 Gross profit: Product sales $ 793,010 $ 796,424 Royalties 26,640 12,564 Products subtotal 819,650 808,988 Rentals 22,239 14,889 Total $ 841,889 $ 823,877 Interest expense: Product sales $ 7,468 $ 8,881 Royalties — — Products subtotal 7,468 8,881 Rentals 3,442 4,636 Total $ 10,910 $ 13,517 Net income (loss) before taxes: Product sales $ (233,520 ) $ 365,329 Royalties 26,640 12,564 Products subtotal (206,880 ) 377,893 Rentals 18,797 10,253 Total $ (188,083 ) $ 388,146 There were no intersegment revenues. At March 31, 2022, $ 575,671 7,939,771 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2022 | |
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) | 3 Months Ended |
Mar. 31, 2022 | |
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 2022 2021 Raw materials & deposits $ 2,001,374 $ 2,179,332 Work-in-process 61,718 84,963 Finished goods 640,809 559,494 Total gross inventories 2,703,901 2,823,789 Less reserve for obsolescence (189,789 ) (155,000 ) Total net inventories $ 2,514,112 $ 2,668,789 |
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 months ended March 31, 2022 and March 31, 2021. Schedule of Disaggregation of revenue Product sales: 2022 2021 Product sales and supplies $ 1,923,948 $ 1,626,160 Training, certification and data recording 167,255 135,922 Service plans and equipment rental 20,554 13,365 Products subtotal 2,111,757 1,775,447 Royalties 26,640 12,564 Building rentals 22,239 21,532 Total revenues $ 2,160,636 $ 1,809,543 |
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 March 31, 2022 and 2021 was $ 17,202 17,157 |
Segment Reporting | Segment Reporting |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Inventories | Schedule of Inventories 2022 2021 Raw materials & deposits $ 2,001,374 $ 2,179,332 Work-in-process 61,718 84,963 Finished goods 640,809 559,494 Total gross inventories 2,703,901 2,823,789 Less reserve for obsolescence (189,789 ) (155,000 ) Total net inventories $ 2,514,112 $ 2,668,789 |
Schedule of Disaggregation of revenue | Schedule of Disaggregation of revenue Product sales: 2022 2021 Product sales and supplies $ 1,923,948 $ 1,626,160 Training, certification and data recording 167,255 135,922 Service plans and equipment rental 20,554 13,365 Products subtotal 2,111,757 1,775,447 Royalties 26,640 12,564 Building rentals 22,239 21,532 Total revenues $ 2,160,636 $ 1,809,543 |
BASIC AND DILUTED INCOME (LOS_2
BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 2022 2021 Net income (loss) $ (144,508 ) $ 403,471 Weighted average shares-basic 2,454,116 2,454,116 Effect of dilutive potential common shares — — Weighted average shares-diluted 2,454,116 2,454,116 Net income (loss) per share-basic $ (0.06 ) $ 0.16 Net income (loss) per share-diluted $ (0.06 ) $ 0.16 Antidilutive employee stock options — — |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 $3.80 113,000 3.29 $3.80 113,000 $3.80 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum future lease payments | Schedule of Minimum future lease payments 2022 $ 38,137 2023 52,178 2024 53,738 2025 55,345 2026 57,000 2027 – 2031 1,068,641 Total 1,325,039 Less financing cost (20,425 ) Net term loan payable 1,304,614 Less current portion (48,887 ) Long term portion $ 1,255,727 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax reconciliation | Schedule of income tax reconciliation Three Months Ended March 31, 2022 2021 Federal statutory rate $ (39,497 ) $ 81,511 Effect of: State taxes, net of federal tax benefit 7,690 2,769 Other (11,768 ) (99,605 ) Total $ (43,575 ) $ (15,325 ) |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Operations of business segments | Schedule of Operations of business segments 2022 2021 Product sales $ 2,111,757 $ 1,775,447 Royalties 26,640 12,564 Products subtotal 2,138,397 1,788,011 Rentals 22,239 21,532 Total $ 2,160,636 $ 1,809,543 Gross profit: Product sales $ 793,010 $ 796,424 Royalties 26,640 12,564 Products subtotal 819,650 808,988 Rentals 22,239 14,889 Total $ 841,889 $ 823,877 Interest expense: Product sales $ 7,468 $ 8,881 Royalties — — Products subtotal 7,468 8,881 Rentals 3,442 4,636 Total $ 10,910 $ 13,517 Net income (loss) before taxes: Product sales $ (233,520 ) $ 365,329 Royalties 26,640 12,564 Products subtotal (206,880 ) 377,893 Rentals 18,797 10,253 Total $ (188,083 ) $ 388,146 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Raw materials & deposits | $ 2,001,374 | $ 2,179,332 |
Work-in-process | 61,718 | 84,963 |
Finished goods | 640,809 | 559,494 |
Total gross inventories | 2,703,901 | 2,823,789 |
Less reserve for obsolescence | (189,789) | (155,000) |
Total net inventories | $ 2,514,112 | $ 2,668,789 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Product Information [Line Items] | ||
Total revenues | $ 2,160,636 | $ 1,809,543 |
Product Sales And Supplies [Member] | ||
Product Information [Line Items] | ||
Total revenues | 1,923,948 | 1,626,160 |
Training Certification And Data Recording [Member] | ||
Product Information [Line Items] | ||
Total revenues | 167,255 | 135,922 |
Service Plans And Equipment Rental [Member] | ||
Product Information [Line Items] | ||
Total revenues | 20,554 | 13,365 |
Product Sales Subtotal [Member] | ||
Product Information [Line Items] | ||
Total revenues | 2,111,757 | 1,775,447 |
Royalties [Member] | ||
Product Information [Line Items] | ||
Total revenues | 26,640 | 12,564 |
Rental Income [Member] | ||
Product Information [Line Items] | ||
Total revenues | $ 22,239 | $ 21,532 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accounting Policies [Abstract] | ||
Stock-based compensation expense | $ 17,202 | $ 17,157 |
BASIC AND DILUTED INCOME (LOS_3
BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ (144,508) | $ 403,471 |
Weighted average shares-basic | 2,454,116 | 2,454,116 |
Effect of dilutive potential common shares | ||
Weighted average shares-diluted | 2,454,116 | 2,454,116 |
Net income (loss) per share-basic | $ (0.06) | $ 0.16 |
Net income (loss) per share-diluted | $ (0.06) | $ 0.16 |
Antidilutive employee stock options |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - Price Range 1 [Member] | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 3.80 |
Option outstanding | shares | 113,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 3 years 3 months 14 days |
Weighted average exercise price per share | $ 3.80 |
Number exercisable | shares | 113,000 |
Weighted average exercise price per share | $ 3.80 |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) - shares | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2016 | Dec. 31, 2021 | |
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 Employees [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Options, granted | 15,000 | |||||
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) | Mar. 31, 2022USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 | $ 38,137 |
2022 | 52,178 |
2023 | 53,738 |
2024 | 55,345 |
2025 | 57,000 |
[custom:OperatingLeasesFutureMinimumPaymentsDueInSixYears-0] | 1,068,641 |
Total | 1,325,039 |
Less financing cost | (20,425) |
Net term loan payable | 1,304,614 |
Less current portion | (48,887) |
Long term portion | $ 1,255,727 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 3 Months Ended | 10 Months Ended | |
Mar. 31, 2022 | Oct. 30, 2016 | Oct. 31, 2014 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Facilities Purchased | $ 1,949,139 | ||
Periodic Payment | $ 8,417 | ||
Final payment | 1,138,104 | ||
Outstanding purchase orders issued to vendors | $ 601,095 | ||
Bank Of America [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Term Loan | $ 1,581,106 | ||
Debt Instrument, Interest Rate During Period | 4.00% |
LINE OF CREDIT AND PAYCHECK P_2
LINE OF CREDIT AND PAYCHECK PROTECTION LOAN (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Line Of Credit And Paycheck Protection Loan | ||
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory rate | $ (39,497) | $ 81,511 |
State taxes, net of federal tax benefit | 7,690 | 2,769 |
Other | (11,768) | (99,605) |
Total | $ (43,575) | $ (15,325) |
BUSINESS SEGMENTS (Details)
BUSINESS SEGMENTS (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 2,160,636 | $ 1,809,543 |
Gross profit | 841,889 | 823,877 |
Interest expense | 10,910 | 13,517 |
Net income (loss) before taxes | (188,083) | 388,146 |
Product Sales [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,111,757 | 1,775,447 |
Gross profit | 793,010 | 796,424 |
Interest expense | 7,468 | 8,881 |
Net income (loss) before taxes | (233,520) | 365,329 |
Royalties [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 26,640 | 12,564 |
Gross profit | 26,640 | 12,564 |
Interest expense | ||
Net income (loss) before taxes | 26,640 | 12,564 |
Products Subtotal [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,138,397 | 1,788,011 |
Gross profit | 819,650 | 808,988 |
Interest expense | 7,468 | 8,881 |
Net income (loss) before taxes | (206,880) | 377,893 |
Rentals [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 22,239 | 21,532 |
Gross profit | 22,239 | 14,889 |
Interest expense | 3,442 | 4,636 |
Net income (loss) before taxes | $ 18,797 | $ 10,253 |
BUSINESS SEGMENTS (Details Narr
BUSINESS SEGMENTS (Details Narrative) | Mar. 31, 2022USD ($) |
Segment Reporting [Abstract] | |
Rentals segment | $ 575,671 |
Rentals segment remainder | $ 7,939,771 |