Lifeloc (LCTC) 10-Q 8 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover	6 Months Ended
	Jun. 30, 2023 shares
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
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 ($)	Jun. 30, 2023	Dec. 31, 2022
CURRENT ASSETS:
Cash	$ 1,913,499	$ 2,352,754
Accounts receivable, net	762,670	627,919
Inventories, net	2,904,064	2,732,463
Employee retention credit receivable		107,575
Prepaid expenses and other	207,778	58,203
Total current assets	5,788,011	5,878,914
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	1,162,803	1,147,992
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	480,684	480,684
Less accumulated depreciation	(3,199,561)	(3,072,961)
Total property and equipment, net	2,135,450	2,247,239
OTHER ASSETS:
Patents, net	67,747	69,679
Deposits and other	500	500
Deferred taxes	320,376	321,429
Total other assets	388,623	391,608
Total assets	8,312,084	8,517,761
CURRENT LIABILITIES:
Accounts payable	329,839	413,957
Term loan payable, current portion	50,652	50,028
Customer deposits	174,967	201,031
Accrued expenses	290,942	344,944
Deferred revenue, current portion	63,676	80,222
Reserve for warranty expense	46,500	46,500
Total current liabilities	956,576	1,136,682
TERM LOAN PAYABLE, net of current portion and debt issuance costs	1,195,158	1,219,677
DEFERRED REVENUE, net of current portion	3,782	6,191
Total liabilities	2,155,516	2,362,550
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, no par value; 50,000,000 shares authorized, 2,454,116 shares outstanding	4,668,014	4,668,014
Retained earnings	1,488,554	1,487,197
Total stockholders' equity	6,156,568	6,155,211
Total liabilities and stockholders' equity	$ 8,312,084	$ 8,517,761

Condensed Balance Sheets (Una_2

Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
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		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
REVENUES:
Product sales	$ 2,246,407	$ 2,144,813	$ 4,379,766	$ 4,256,570
Royalties	10,150	12,572	18,356	39,212
Rental income	23,789	22,639	46,778	44,878
Total	2,280,346	2,180,024	4,444,900	4,340,660
COST OF SALES	1,237,902	1,516,389	2,467,029	2,835,136
GROSS PROFIT	1,042,444	663,635	1,977,871	1,505,524
OPERATING EXPENSES:
Research and development	395,781	352,910	792,547	742,934
Sales and marketing	300,075	276,669	587,958	553,306
General and administrative	284,116	293,421	603,131	646,254
Total	979,972	923,000	1,983,636	1,942,494
OPERATING LOSS	62,472	(259,365)	(5,765)	(436,970)
OTHER INCOME (EXPENSE):
Interest income	19,200	1,190	29,000	1,622
Interest expense	(10,290)	(10,817)	(20,825)	(21,727)
Total	8,910	(9,627)	8,175	(20,105)
NET INCOME (LOSS) BEFORE PROVISION FOR TAXES	71,382	(268,992)	2,410	(457,075)
BENEFIT FROM (PROVISION FOR) FEDERAL AND STATE INCOME TAXES	(16,237)	67,462	(1,053)	111,037
NET INCOME (LOSS)	$ 55,145	$ (201,530)	$ 1,357	$ (346,038)
NET INCOME (LOSS) PER SHARE, BASIC	$ 0.02	$ (0.08)		$ (0.14)
NET INCOME (LOSS) PER SHARE, DILUTED	$ 0.02	$ (0.08)		$ (0.14)
WEIGHTED AVERAGE SHARES, BASIC	2,454,116	2,454,116	2,454,116	2,454,116
WEIGHTED AVERAGE SHARES, DILUTED	2,454,116	2,454,116	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, amount at Dec. 31, 2021	$ 4,650,812	$ 1,942,954	$ 6,593,766
Stock based compensation expense related to stock options	17,202
Net income (loss)		(346,038)	(346,038)
Ending balance, amount at Jun. 30, 2022	4,668,014	1,596,916	6,264,930
Beginning balance, amount at Mar. 31, 2022	4,668,014	1,798,446	6,466,460
Stock based compensation expense related to stock options
Net income (loss)		(201,530)	(201,530)
Ending balance, amount at Jun. 30, 2022	4,668,014	1,596,916	6,264,930
Beginning balance, amount at Dec. 31, 2022	4,668,014	1,487,197	6,155,211
Stock based compensation expense related to stock options
Net income (loss)		1,357	1,357
Ending balance, amount at Jun. 30, 2023	4,668,014	1,488,554	6,156,568
Beginning balance, amount at Mar. 31, 2023	4,668,014	1,433,409	6,101,423
Stock based compensation expense related to stock options
Net income (loss)		55,145	55,145
Ending balance, amount at Jun. 30, 2023	$ 4,668,014	$ 1,488,554	$ 6,156,568

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 1,357	$ (346,038)
Adjustments to reconcile net income to net cash  provided from operating activities-
Depreciation and amortization	132,088	267,455
Provision for inventory obsolescence, net change		94,578
Deferred taxes, net change	1,053	(111,037)
Stock based compensation expense related to stock options		17,202
Changes in operating assets and liabilities-
Accounts receivable	(134,751)	(173,583)
Inventories	(171,601)	273,224
Employee retention credit and income taxes receivable	107,575
Prepaid expenses and other	(149,575)	(67,884)
Accounts payable	(84,118)	(146,322)
Customer deposits	(26,064)	276
Accrued expenses	(54,002)	(58,337)
Deferred revenue	(18,955)	(3,990)
Net cash used in operating activities	(396,993)	(254,456)
CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchases of property and equipment	(14,811)	(40,753)
Patent filing expense	(1,404)
Net cash used in investing activities	(16,215)	(40,753)
CASH FLOWS USED IN FINANCING ACTIVITIES:
Principal payments made on term loan	(26,047)	(25,144)
Net cash used in financing activities	(26,047)	(25,144)
NET DECREASE IN CASH	(439,255)	(320,353)
CASH, BEGINNING OF PERIOD	2,352,754	2,571,668
CASH, END OF PERIOD	1,913,499	2,251,315
SUPPLEMENTAL INFORMATION:
Cash paid for interest	$ 18,673	$ 19,575

ORGANIZATION AND NATURE OF BUSI

ORGANIZATION AND NATURE OF BUSINESS	6 Months Ended
	Jun. 30, 2023
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 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	6 Months Ended
	Jun. 30, 2023
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 2023 2022 Raw materials & deposits $ 2,699,758 $ 2,509,661 Work-in-process 26,011 52,642 Finished goods 547,451 539,316 Total gross inventories 3,273,220 3,101,619 Less reserve for obsolescence (369,156 ) (369,156 ) Total net inventories $ 2,904,064 $ 2,732,463 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, or when agreed milestones are met in the case of product developments, 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 and for the six months ended June 30, 2023 and June 30, 2022. Schedule of Disaggregation of revenue Three Months Ended June 30, Product sales: 2023 2022 Product sales and supplies $ 2,037,783 $ 1,964,494 Training, certification and data recording 194,013 162,726 Service plans and equipment rental 14,611 17,593 Product sales subtotal 2,246,407 2,144,813 Royalties 10,150 12,572 Rental income 23,789 22,639 Total revenues $ 2,280,346 $ 2,180,024 Six Months Ended June 30, Product sales: 2023 2022 Product sales and supplies $ 3,938,611 $ 3,888,442 Training, certification and data recording 405,262 329,981 Service plans and equipment rental 35,893 38,147 Product sales subtotal 4,379,766 4,256,570 Royalties 18,356 39,212 Rental income 46,778 44,878 Total revenues $ 4,444,900 $ 4,340,660 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 June 30, 2023 and 2022 was $ 0 0 0 17,202 Segment Reporting

BASIC AND DILUTED INCOME (LOSS)

BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE	6 Months Ended
	Jun. 30, 2023
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 the three months ended June 30, 2023 and June 30, 2022, and for the six months ended June 30, 2023 and 2022: Schedule of Calculation of basic and diluted net income per common share Three Months Ended June 30, 2023 2022 Net income (loss) $ 55,145 $ (201,530 ) 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 $ 0.02 $ (0.08 ) Net income (loss) per share-diluted $ 0.02 $ (0.08 ) Antidilutive employee stock options — — Six Months Ended June 30, 2023 2022 Net income (loss) $ 1,357 $ (346,038 ) 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 $ — $ (0.14 ) Net income (loss) per share-diluted $ — $ (0.14 ) Antidilutive employee stock options — —

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
STOCKHOLDERS' EQUITY	4. STOCKHOLDERS' EQUITY The following table summarizes information about employee stock options outstanding and exercisable at June 30, 2023: 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 $ 3.80 123,000 2.05 $ 3.80 123,000 $ 3.80 The exercise price of all options granted through June 30, 2023 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 June 30, 2023, the 2013 Plan had expired and no No No 15,000 No The total number of authorized shares of common stock continues to be 50,000,000

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	5. COMMITMENTS AND CONTINGENCIES Mortgage Expense 1,949,139 1,581,106 1,350,000 The new note is payable in 119 equal monthly installments of $ 7,453 773,727 Schedule of Minimum future lease payments 2023 $ 26,130 2024 53,738 2025 55,345 2026 57,000 2027 – 2031 1,068,642 Total 1,260,855 Less financing cost (15,045 ) Net term loan payable 1,245,810 Less current portion (50,652 ) Long term portion $ 1,195,158 Employee Severance Benefits Contractual Commitments and Purchase Orders 2,303,395 Regulatory Commitments

LINE OF CREDIT

LINE OF CREDIT	6 Months Ended
	Jun. 30, 2023
Line Of Credit
LINE OF CREDIT	6. LINE OF CREDIT 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

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2023
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 June 30, 2023 2022 Federal statutory rate $ 14,990 $ (56,488 ) Effect of: State taxes, net of federal tax benefit (3,447 ) 12,279 Other 4,694 (23,253 ) Total $ 16,237 $ (67,462 ) Six Months Ended June 30, 2023 2022 Federal statutory rate $ 506 $ (95,985 ) Effect of: State taxes, net of federal tax benefit (2,298 ) 19,969 Other 2,845 (35,021 ) Total $ 1,053 $ (111,037 )

BUSINESS SEGMENTS

BUSINESS SEGMENTS	6 Months Ended
	Jun. 30, 2023
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 June 30, 2023 and 2022. Schedule of Operations of business segments 2023 2022 Product sales $ 2,246,407 $ 2,144,813 Royalties 10,150 12,572 Products subtotal 2,256,557 2,157,385 Rentals 23,789 22,639 Total 2,280,346 2,180,024 Gross profit: Product sales 1,013,737 637,244 Royalties 10,150 12,572 Products subtotal 1,023,887 649,816 Rentals 18,557 13,819 Total 1,042,444 663,635 Interest expense: Product sales 7,020 7,411 Royalties — — Products subtotal 7,020 7,411 Rentals 3,270 3,406 Total 10,290 10,817 Net income (loss) before taxes: Product sales 45,945 (291,977 ) Royalties 10,150 12,572 Products subtotal 56,095 (279,405 ) Rentals 15,287 10,413 Total $ 71,382 $ (268,992 ) The following sets forth information about the operations of the business segments for the six months ended June 30, 2023 and 2022. 2023 2022 Product sales $ 4,379,766 $ 4,256,570 Royalties 18,356 39,212 Products subtotal 4,398,122 4,295,782 Rentals 46,778 44,878 Total 4,444,900 4,340,660 Gross profit: Product sales 1,923,201 1,430,254 Royalties 18,356 39,212 Products subtotal 1,941,557 1,469,466 Rentals 36,314 36,058 Total 1,977,871 1,505,524 Interest expense: Product sales 14,289 14,879 Royalties — — Products subtotal 14,289 14,879 Rentals 6,536 6,848 Total 20,825 21,727 Net income (loss) before taxes: Product sales (45,724 ) (525,497 ) Royalties 18,356 39,212 Products subtotal (27,368 ) (486,285 ) Rentals 29,778 29,210 Total $ 2,410 $ (457,075 ) There were no intersegment revenues. At June 30, 2023, $ 558,427 7,753,657

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2023
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)	6 Months Ended
	Jun. 30, 2023
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 2023 2022 Raw materials & deposits $ 2,699,758 $ 2,509,661 Work-in-process 26,011 52,642 Finished goods 547,451 539,316 Total gross inventories 3,273,220 3,101,619 Less reserve for obsolescence (369,156 ) (369,156 ) Total net inventories $ 2,904,064 $ 2,732,463
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, or when agreed milestones are met in the case of product developments, 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 and for the six months ended June 30, 2023 and June 30, 2022. Schedule of Disaggregation of revenue Three Months Ended June 30, Product sales: 2023 2022 Product sales and supplies $ 2,037,783 $ 1,964,494 Training, certification and data recording 194,013 162,726 Service plans and equipment rental 14,611 17,593 Product sales subtotal 2,246,407 2,144,813 Royalties 10,150 12,572 Rental income 23,789 22,639 Total revenues $ 2,280,346 $ 2,180,024 Six Months Ended June 30, Product sales: 2023 2022 Product sales and supplies $ 3,938,611 $ 3,888,442 Training, certification and data recording 405,262 329,981 Service plans and equipment rental 35,893 38,147 Product sales subtotal 4,379,766 4,256,570 Royalties 18,356 39,212 Rental income 46,778 44,878 Total revenues $ 4,444,900 $ 4,340,660
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 June 30, 2023 and 2022 was $ 0 0 0 17,202
Segment Reporting	Segment Reporting

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Schedule of Inventories	Schedule of Inventories 2023 2022 Raw materials & deposits $ 2,699,758 $ 2,509,661 Work-in-process 26,011 52,642 Finished goods 547,451 539,316 Total gross inventories 3,273,220 3,101,619 Less reserve for obsolescence (369,156 ) (369,156 ) Total net inventories $ 2,904,064 $ 2,732,463
Schedule of Disaggregation of revenue	Schedule of Disaggregation of revenue Three Months Ended June 30, Product sales: 2023 2022 Product sales and supplies $ 2,037,783 $ 1,964,494 Training, certification and data recording 194,013 162,726 Service plans and equipment rental 14,611 17,593 Product sales subtotal 2,246,407 2,144,813 Royalties 10,150 12,572 Rental income 23,789 22,639 Total revenues $ 2,280,346 $ 2,180,024 Six Months Ended June 30, Product sales: 2023 2022 Product sales and supplies $ 3,938,611 $ 3,888,442 Training, certification and data recording 405,262 329,981 Service plans and equipment rental 35,893 38,147 Product sales subtotal 4,379,766 4,256,570 Royalties 18,356 39,212 Rental income 46,778 44,878 Total revenues $ 4,444,900 $ 4,340,660

BASIC AND DILUTED INCOME (LOS_2

BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE (Tables)	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Schedule of Calculation of basic and diluted net income per common share	Schedule of Calculation of basic and diluted net income per common share Three Months Ended June 30, 2023 2022 Net income (loss) $ 55,145 $ (201,530 ) 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 $ 0.02 $ (0.08 ) Net income (loss) per share-diluted $ 0.02 $ (0.08 ) Antidilutive employee stock options — — Six Months Ended June 30, 2023 2022 Net income (loss) $ 1,357 $ (346,038 ) 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 $ — $ (0.14 ) Net income (loss) per share-diluted $ — $ (0.14 ) Antidilutive employee stock options — —

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 2023
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 $ 3.80 123,000 2.05 $ 3.80 123,000 $ 3.80

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Schedule of Minimum future lease payments	Schedule of Minimum future lease payments 2023 $ 26,130 2024 53,738 2025 55,345 2026 57,000 2027 – 2031 1,068,642 Total 1,260,855 Less financing cost (15,045 ) Net term loan payable 1,245,810 Less current portion (50,652 ) Long term portion $ 1,195,158

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Schedule of income tax reconciliation	Schedule of income tax reconciliation Three Months Ended June 30, 2023 2022 Federal statutory rate $ 14,990 $ (56,488 ) Effect of: State taxes, net of federal tax benefit (3,447 ) 12,279 Other 4,694 (23,253 ) Total $ 16,237 $ (67,462 ) Six Months Ended June 30, 2023 2022 Federal statutory rate $ 506 $ (95,985 ) Effect of: State taxes, net of federal tax benefit (2,298 ) 19,969 Other 2,845 (35,021 ) Total $ 1,053 $ (111,037 )

BUSINESS SEGMENTS (Tables)

BUSINESS SEGMENTS (Tables)	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Schedule of Operations of business segments	Schedule of Operations of business segments 2023 2022 Product sales $ 2,246,407 $ 2,144,813 Royalties 10,150 12,572 Products subtotal 2,256,557 2,157,385 Rentals 23,789 22,639 Total 2,280,346 2,180,024 Gross profit: Product sales 1,013,737 637,244 Royalties 10,150 12,572 Products subtotal 1,023,887 649,816 Rentals 18,557 13,819 Total 1,042,444 663,635 Interest expense: Product sales 7,020 7,411 Royalties — — Products subtotal 7,020 7,411 Rentals 3,270 3,406 Total 10,290 10,817 Net income (loss) before taxes: Product sales 45,945 (291,977 ) Royalties 10,150 12,572 Products subtotal 56,095 (279,405 ) Rentals 15,287 10,413 Total $ 71,382 $ (268,992 ) The following sets forth information about the operations of the business segments for the six months ended June 30, 2023 and 2022. 2023 2022 Product sales $ 4,379,766 $ 4,256,570 Royalties 18,356 39,212 Products subtotal 4,398,122 4,295,782 Rentals 46,778 44,878 Total 4,444,900 4,340,660 Gross profit: Product sales 1,923,201 1,430,254 Royalties 18,356 39,212 Products subtotal 1,941,557 1,469,466 Rentals 36,314 36,058 Total 1,977,871 1,505,524 Interest expense: Product sales 14,289 14,879 Royalties — — Products subtotal 14,289 14,879 Rentals 6,536 6,848 Total 20,825 21,727 Net income (loss) before taxes: Product sales (45,724 ) (525,497 ) Royalties 18,356 39,212 Products subtotal (27,368 ) (486,285 ) Rentals 29,778 29,210 Total $ 2,410 $ (457,075 )

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Raw materials & deposits	$ 2,699,758	$ 2,509,661
Work-in-process	26,011	52,642
Finished goods	547,451	539,316
Total gross inventories	3,273,220	3,101,619
Less reserve for obsolescence	(369,156)	(369,156)
Total net inventories	$ 2,904,064	$ 2,732,463

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Product Information [Line Items]
Total revenues	$ 2,280,346	$ 2,180,024	$ 4,444,900	$ 4,340,660
Product Sales And Supplies [Member]
Product Information [Line Items]
Total revenues	2,037,783	1,964,494	3,938,611	3,888,442
Training Certification And Data Recording [Member]
Product Information [Line Items]
Total revenues	194,013	162,726	405,262	329,981
Service Plans And Equipment Rental [Member]
Product Information [Line Items]
Total revenues	14,611	17,593	35,893	38,147
Product Sales Subtotal [Member]
Product Information [Line Items]
Total revenues	2,246,407	2,144,813	4,379,766	4,256,570
Royalties [Member]
Product Information [Line Items]
Total revenues	10,150	12,572	18,356	39,212
Rental Income [Member]
Product Information [Line Items]
Total revenues	$ 23,789	$ 22,639	$ 46,778	$ 44,878

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Accounting Policies [Abstract]
Stock-based compensation expense	$ 0	$ 0	$ 0	$ 17,202

BASIC AND DILUTED INCOME (LOS_3

BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net income (loss)	$ 55,145	$ (201,530)	$ 1,357	$ (346,038)
Weighted average shares-basic	2,454,116	2,454,116	2,454,116	2,454,116
Effect of dilutive potential common shares
Weighted average shares-diluted	2,454,116	2,454,116	2,454,116	2,454,116
Net income (loss) per share-basic	$ 0.02	$ (0.08)		$ (0.14)
Net income (loss) per share-diluted	$ 0.02	$ (0.08)		$ (0.14)
Antidilutive employee stock options

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - Price Range 1 [Member]	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices	$ 3.80
Option outstanding | shares	123,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	2 years 18 days
Weighted average exercise price per share	$ 3.80
Number exercisable | shares	123,000
Weighted average exercise price per share	$ 3.80

STOCKHOLDERS' EQUITY (Details N

STOCKHOLDERS' EQUITY (Details Narrative) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options, granted		0
Options, exercised	0	0	0
Common stock, authorized shares		50,000,000		50,000,000
Two Employees [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options, granted			15,000
N 2013 Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options available for grant		0

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details)	Jun. 30, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2023	$ 26,130
2024	53,738
2025	55,345
2026	57,000
2027	1,068,642
Total	1,260,855
Less financing cost	(15,045)
Net term loan payable	1,245,810
Less current portion	(50,652)
Long term portion	$ 1,195,158

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)		1 Months Ended	6 Months Ended
	Oct. 31, 2014	Sep. 30, 2021	Jun. 30, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Facilities Purchased	$ 1,949,139
Proceeds from term loan		$ 1,350,000
Periodic Payment			$ 7,453
Final payment			773,727
Outstanding purchase orders issued to vendors			$ 2,303,395
Bank Of America [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Term Loan	$ 1,581,106

LINE OF CREDIT (Details Narrati

LINE OF CREDIT (Details Narrative)	6 Months Ended
	Jun. 30, 2023 USD ($)
Line Of Credit
Line of credit	$ 750,000
Maturity date	Sep. 28, 2021

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Federal statutory rate	$ 14,990	$ (56,488)	$ 506	$ (95,985)
State taxes, net of federal tax benefit	(3,447)	12,279	(2,298)	19,969
Other	4,694	(23,253)	2,845	(35,021)
Total	$ 16,237	$ (67,462)	$ 1,053	$ (111,037)

BUSINESS SEGMENTS (Details)

BUSINESS SEGMENTS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information [Line Items]
Revenues	$ 2,280,346	$ 2,180,024	$ 4,444,900	$ 4,340,660
Gross profit	1,042,444	663,635	1,977,871	1,505,524
Interest expense	10,290	10,817	20,825	21,727
Net income (loss) before taxes	71,382	(268,992)	2,410	(457,075)
Product Sales [Member]
Segment Reporting Information [Line Items]
Revenues	2,246,407	2,144,813	4,379,766	4,256,570
Gross profit	1,013,737	637,244	1,923,201	1,430,254
Interest expense	7,020	7,411	14,289	14,879
Net income (loss) before taxes	45,945	(291,977)	(45,724)	(525,497)
Royalties [Member]
Segment Reporting Information [Line Items]
Revenues	10,150	12,572	18,356	39,212
Gross profit	10,150	12,572	18,356	39,212
Interest expense
Net income (loss) before taxes	10,150	12,572	18,356	39,212
Products Subtotal [Member]
Segment Reporting Information [Line Items]
Revenues	2,256,557	2,157,385	4,398,122	4,295,782
Gross profit	1,023,887	649,816	1,941,557	1,469,466
Interest expense	7,020	7,411	14,289	14,879
Net income (loss) before taxes	56,095	(279,405)	(27,368)	(486,285)
Rentals [Member]
Segment Reporting Information [Line Items]
Revenues	23,789	22,639	46,778	44,878
Gross profit	18,557	13,819	36,314	36,058
Interest expense	3,270	3,406	6,536	6,848
Net income (loss) before taxes	$ 15,287	$ 10,413	$ 29,778	$ 29,210

BUSINESS SEGMENTS (Details Narr

BUSINESS SEGMENTS (Details Narrative)	Jun. 30, 2023 USD ($)
Segment Reporting [Abstract]
Rentals segment	$ 558,427
Rentals segment remainder	$ 7,753,657