Lifeloc (LCTC) 10-Q 8 Nov 23 2023 Q3 Quarterly report Financial data

Cover

Cover	9 Months Ended
	Sep. 30, 2023 shares
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Period Focus	Q3
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

Condensed Balance Sheets - USD ($)	Sep. 30, 2023	Dec. 31, 2022
CURRENT ASSETS:
Cash	$ 2,136,873	$ 2,352,754
Accounts receivable, net	709,307	627,919
Inventories, net	2,912,406	2,732,463
Employee retention credit receivable		107,575
Prepaid expenses and other	265,352	58,203
Total current assets	6,023,938	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	1,169,603	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	(3,263,200)	(3,072,961)
Total property and equipment, net	2,078,611	2,247,239
OTHER ASSETS:
Patents, net	66,079	69,679
Deposits and other	500	500
Deferred taxes	435,545	321,429
Total other assets	502,124	391,608
Total assets	8,604,673	8,517,761
CURRENT LIABILITIES:
Accounts payable	501,827	413,957
Term loan payable, current portion	51,194	50,028
Income taxes payable	36,476
Customer deposits	184,474	201,031
Accrued expenses	262,206	344,944
Deferred revenue, current portion	60,607	80,222
Reserve for warranty expense	46,500	46,500
Total current liabilities	1,143,284	1,136,682
TERM LOAN PAYABLE, net of current portion and debt issuance costs	1,182,751	1,219,677
DEFERRED REVENUE, net of current portion	12,467	6,191
Total liabilities	2,338,502	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	1,598,157	1,487,197
Total stockholders' equity	6,266,171	6,155,211
Total liabilities and stockholders' equity	$ 8,604,673	$ 8,517,761

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Sep. 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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
REVENUES:
Product sales	$ 2,676,872	$ 2,007,652	$ 7,056,638	$ 6,264,222
Royalties	5,063	1,225	23,419	40,437
Rental income	13,573	22,989	60,351	67,867
Total	2,695,508	2,031,866	7,140,408	6,372,526
COST OF SALES	1,576,117	1,263,951	4,043,146	4,099,087
GROSS PROFIT	1,119,391	767,915	3,097,262	2,273,439
OPERATING EXPENSES:
Research and development	516,174	313,092	1,308,721	1,056,026
Sales and marketing	309,898	268,515	897,856	821,821
General and administrative	269,593	296,806	872,724	943,060
Total	1,095,665	878,413	3,079,301	2,820,907
OPERATING INCOME (LOSS)	23,726	(110,498)	17,961	(547,468)
OTHER INCOME (EXPENSE):
Interest income	17,678	4,508	46,678	6,130
Interest expense	(10,494)	(10,724)	(31,319)	(32,451)
Total	7,184	(6,216)	15,359	(26,321)
NET INCOME (LOSS) BEFORE PROVISION FOR TAXES	30,910	(116,714)	33,320	(573,789)
BENEFIT FROM FEDERAL AND STATE INCOME TAXES	78,693	29,742	77,640	140,779
NET INCOME (LOSS)	$ 109,603	$ (86,972)	$ 110,960	$ (433,010)
NET INCOME (LOSS) PER SHARE, BASIC	$ 0.04	$ (0.04)	$ 0.05	$ (0.18)
NET INCOME (LOSS) PER SHARE, DILUTED	$ 0.04	$ (0.04)	$ 0.05	$ (0.18)
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)		(433,010)	(433,010)
Ending balance, amount at Sep. 30, 2022	4,668,014	1,509,944	6,177,958
Beginning balance, amount at Jun. 30, 2022	4,668,014	1,596,916	6,264,930
Stock based compensation expense related to stock options
Net income (loss)		(86,972)	(86,972)
Ending balance, amount at Sep. 30, 2022	4,668,014	1,509,944	6,177,958
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)		110,960	110,960
Ending balance, amount at Sep. 30, 2023	4,668,014	1,598,157	6,266,171
Beginning balance, amount at Jun. 30, 2023	4,668,014	1,488,554	6,156,568
Stock based compensation expense related to stock options
Net income (loss)		109,603	109,603
Ending balance, amount at Sep. 30, 2023	$ 4,668,014	$ 1,598,157	$ 6,266,171

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 110,960	$ (433,010)
Adjustments to reconcile net income to net cash provided from (used in) operating activities-
Depreciation and amortization	198,471	438,549
Provision for inventory obsolescence, net change		154,367
Deferred taxes, net change	(114,116)	(140,779)
Stock based compensation expense related to stock options		17,202
Changes in operating assets and liabilities-
Accounts receivable	(81,388)	(96,230)
Inventories	(179,943)	(180,535)
Employee retention credit and income taxes receivable	107,575
Prepaid expenses and other	(207,149)	(59,041)
Deposits and other		162,980
Accounts payable	87,870	(3,130)
Income taxes payable	36,476
Customer deposits	(16,557)	9,608
Accrued expenses	(82,738)	(63,917)
Deferred revenue	(13,339)	(11,787)
Net cash provided from (used in) operating activities	(153,878)	(205,723)
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Purchases of property and equipment	(21,611)	(201,870)
Patent filing expense	(1,404)	(1,687)
Net cash (used in) investing activities	(23,015)	(203,557)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Principal payments made on term loan	(38,988)	(37,857)
Net cash provided from (used in) financing activities	(38,988)	(37,857)
NET (DECREASE) IN CASH	(215,881)	(447,137)
CASH, BEGINNING OF PERIOD	2,352,754	2,571,668
CASH, END OF PERIOD	2,136,873	2,124,531
SUPPLEMENTAL INFORMATION:
Cash paid for interest	$ 28,091	$ 29,223

ORGANIZATION AND NATURE OF BUSI

ORGANIZATION AND NATURE OF BUSINESS	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 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 $ 2,645,642 $ 2,509,661 Work-in-process 34,365 52,642 Finished goods 601,555 539,316 Total gross inventories 3,281,562 3,101,619 Less reserve for obsolescence (369,156 ) (369,156 ) Total net inventories $ 2,912,406 $ 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 nine months ended September 30, 2023 and September 30, 2022. Schedule of disaggregation of revenue Three Months Ended September 30, Product sales: 2023 2022 Product sales and supplies $ 2,437,753 $ 1,832,037 Training, certification and data recording 215,105 159,052 Service plans and equipment rental 24,014 16,563 Product sales subtotal 2,676,872 2,007,652 Royalties 5,063 1,225 Rental income 13,573 22,989 Total revenues $ 2,695,508 $ 2,031,866 Nine Months Ended September 30, Product sales: 2023 2022 Product sales and supplies $ 6,376,364 $ 5,720,479 Training, certification and data recording 620,367 489,033 Service plans and equipment rental 59,907 54,710 Product sales subtotal 7,056,638 6,264,222 Royalties 23,419 40,437 Rental income 60,351 67,867 Total revenues $ 7,140,408 $ 6,372,526 Deferred Revenue Recent Accounting Pronouncements Stock-Based Compensation Compensation – Stock Compensation ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the accompanying statement of income. Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. We used the Black-Scholes option-pricing model to determine fair value. Our determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to our expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. Although the fair value of employee stock options is determined in accordance with ASC 718 using an option-pricing model, that value may not be indicative of the fair value observed in a willing buyer/willing seller market transaction. Stock-based compensation expense recognized under ASC 718 for the three months ended September 30, 2023 and 2022 was $ 0 0 0 17,202 Segment Reporting

BASIC AND DILUTED INCOME (LOSS)

BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE	9 Months Ended
	Sep. 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 three months ended September 30, 2023 and September 30, 2022, and for the nine months ended September 30, 2023 and 2022: Schedule of Calculation of basic and diluted net income per common share Three Months Ended September 30, 2023 2022 Net income (loss) $ 109,603 $ (86,972 ) 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 $ 0.04 $ (0.04 ) Net income (loss) per share-diluted $ 0.04 $ (0.04 ) Antidilutive employee stock options — — Nine Months Ended September 30, 2023 2022 Net income (loss) $ 110,960 $ (433,010 ) 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 $ .05 $ (0.18 ) Net income (loss) per share-diluted $ .05 $ (0.18 ) Antidilutive employee stock options — —

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
STOCKHOLDERS' EQUITY	4. STOCKHOLDERS' EQUITY The following table summarizes information about employee stock options outstanding and exercisable at September 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 September 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 September 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	9 Months Ended
	Sep. 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 $ 13,189 2024 53,738 2025 55,345 2026 57,000 2027 – 2031 1,068,642 Total 1,247,914 Less financing cost (13,969 ) Net term loan payable 1,233,945 Less current portion (51,194 ) Long term portion $ 1,182,751 Employee Severance Benefits Contractual Commitments and Purchase Orders 2,076,296 Regulatory Commitments

LINE OF CREDIT

LINE OF CREDIT	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 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 September 30, 2023 2022 Federal statutory rate $ 6,491 $ (24,510 ) Effect of: State taxes, net of federal tax benefit 38,823 5,255 Other (124,007 ) (10,487 ) Total $ (78,693 ) $ (29,742 ) Nine Months Ended September 30, 2023 2022 Federal statutory rate $ 6,997 $ (120,495 ) Effect of: State taxes, net of federal tax benefit 36,525 25,224 Other (121,162 ) (45,508 ) Total $ (77,640 ) $ (140,779 )

BUSINESS SEGMENTS

BUSINESS SEGMENTS	9 Months Ended
	Sep. 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 September 30, 2023 and 2022. Schedule of operations of business segments 2023 2022 Product sales $ 2,676,872 $ 2,007,652 Royalties 5,063 1,225 Products subtotal 2,681,935 2,008,877 Rentals 13,573 22,989 Total 2,695,508 2,031,866 Gross profit: Product sales 1,123,942 775,122 Royalties 5,063 1,225 Products subtotal 1,129,005 776,347 Rentals (9,614 ) (8,432 ) Total 1,119,391 767,915 Interest expense: Product sales 8,488 7,344 Royalties — — Products subtotal 8,488 7,344 Rentals 2,006 3,380 Total 10,494 10,724 Net income (loss) before taxes: Product sales 37,467 (117,474 ) Royalties 5,063 12,572 Products subtotal 45,230 (104,902 ) Rentals (11,620 ) (11,812 ) Total $ 30,910 $ (116,714 ) The following sets forth information about the operations of the business segments for the nine months ended September 30, 2023 and 2022. 2023 2022 Product sales $ 7,056,638 $ 6,264,222 Royalties 23,419 40,437 Products subtotal 7,080,057 6,304,659 Rentals 60,351 67,867 Total 7,140,408 6,372,526 Gross profit: Product sales 3,047,143 2,205,376 Royalties 23,419 40,437 Products subtotal 3,070,562 2,245,813 Rentals 26,700 27,626 Total 3,097,262 2,273,439 Interest expense: Product sales 22,777 22,223 Royalties — — Products subtotal 22,777 22,223 Rentals 8,542 10,228 Total 31,319 32,451 Net income (loss) before taxes: Product sales (8,257 ) (631,624 ) Royalties 23,419 40,437 Products subtotal 15,162 (591,187 ) Rentals 18,158 17,398 Total $ 33,320 $ (573,789 ) There were no intersegment revenues. At September 30, 2023, $ 191,461 8,413,212

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 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)	9 Months Ended
	Sep. 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 $ 2,645,642 $ 2,509,661 Work-in-process 34,365 52,642 Finished goods 601,555 539,316 Total gross inventories 3,281,562 3,101,619 Less reserve for obsolescence (369,156 ) (369,156 ) Total net inventories $ 2,912,406 $ 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 nine months ended September 30, 2023 and September 30, 2022. Schedule of disaggregation of revenue Three Months Ended September 30, Product sales: 2023 2022 Product sales and supplies $ 2,437,753 $ 1,832,037 Training, certification and data recording 215,105 159,052 Service plans and equipment rental 24,014 16,563 Product sales subtotal 2,676,872 2,007,652 Royalties 5,063 1,225 Rental income 13,573 22,989 Total revenues $ 2,695,508 $ 2,031,866 Nine Months Ended September 30, Product sales: 2023 2022 Product sales and supplies $ 6,376,364 $ 5,720,479 Training, certification and data recording 620,367 489,033 Service plans and equipment rental 59,907 54,710 Product sales subtotal 7,056,638 6,264,222 Royalties 23,419 40,437 Rental income 60,351 67,867 Total revenues $ 7,140,408 $ 6,372,526
Deferred Revenue	Deferred Revenue
Recent Accounting Pronouncements	Recent Accounting Pronouncements
Stock-Based Compensation	Stock-Based Compensation Compensation – Stock Compensation ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the accompanying statement of income. Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. We used the Black-Scholes option-pricing model to determine fair value. Our determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to our expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. Although the fair value of employee stock options is determined in accordance with ASC 718 using an option-pricing model, that value may not be indicative of the fair value observed in a willing buyer/willing seller market transaction. Stock-based compensation expense recognized under ASC 718 for the three months ended September 30, 2023 and 2022 was $ 0 0 0 17,202
Segment Reporting	Segment Reporting

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Schedule of Inventories	Schedule of Inventories 2023 2022 Raw materials & deposits $ 2,645,642 $ 2,509,661 Work-in-process 34,365 52,642 Finished goods 601,555 539,316 Total gross inventories 3,281,562 3,101,619 Less reserve for obsolescence (369,156 ) (369,156 ) Total net inventories $ 2,912,406 $ 2,732,463
Schedule of disaggregation of revenue	Schedule of disaggregation of revenue Three Months Ended September 30, Product sales: 2023 2022 Product sales and supplies $ 2,437,753 $ 1,832,037 Training, certification and data recording 215,105 159,052 Service plans and equipment rental 24,014 16,563 Product sales subtotal 2,676,872 2,007,652 Royalties 5,063 1,225 Rental income 13,573 22,989 Total revenues $ 2,695,508 $ 2,031,866 Nine Months Ended September 30, Product sales: 2023 2022 Product sales and supplies $ 6,376,364 $ 5,720,479 Training, certification and data recording 620,367 489,033 Service plans and equipment rental 59,907 54,710 Product sales subtotal 7,056,638 6,264,222 Royalties 23,419 40,437 Rental income 60,351 67,867 Total revenues $ 7,140,408 $ 6,372,526

BASIC AND DILUTED INCOME (LOS_2

BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE (Tables)	9 Months Ended
	Sep. 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 September 30, 2023 2022 Net income (loss) $ 109,603 $ (86,972 ) 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 $ 0.04 $ (0.04 ) Net income (loss) per share-diluted $ 0.04 $ (0.04 ) Antidilutive employee stock options — — Nine Months Ended September 30, 2023 2022 Net income (loss) $ 110,960 $ (433,010 ) 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 $ .05 $ (0.18 ) Net income (loss) per share-diluted $ .05 $ (0.18 ) Antidilutive employee stock options — —

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 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)	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Schedule of Minimum future lease payments	Schedule of Minimum future lease payments 2023 $ 13,189 2024 53,738 2025 55,345 2026 57,000 2027 – 2031 1,068,642 Total 1,247,914 Less financing cost (13,969 ) Net term loan payable 1,233,945 Less current portion (51,194 ) Long term portion $ 1,182,751

INCOME TAXES (Tables)

INCOME TAXES (Tables)	9 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Schedule of income tax reconciliation	Schedule of income tax reconciliation Three Months Ended September 30, 2023 2022 Federal statutory rate $ 6,491 $ (24,510 ) Effect of: State taxes, net of federal tax benefit 38,823 5,255 Other (124,007 ) (10,487 ) Total $ (78,693 ) $ (29,742 ) Nine Months Ended September 30, 2023 2022 Federal statutory rate $ 6,997 $ (120,495 ) Effect of: State taxes, net of federal tax benefit 36,525 25,224 Other (121,162 ) (45,508 ) Total $ (77,640 ) $ (140,779 )

BUSINESS SEGMENTS (Tables)

BUSINESS SEGMENTS (Tables)	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
Schedule of operations of business segments	Schedule of operations of business segments 2023 2022 Product sales $ 2,676,872 $ 2,007,652 Royalties 5,063 1,225 Products subtotal 2,681,935 2,008,877 Rentals 13,573 22,989 Total 2,695,508 2,031,866 Gross profit: Product sales 1,123,942 775,122 Royalties 5,063 1,225 Products subtotal 1,129,005 776,347 Rentals (9,614 ) (8,432 ) Total 1,119,391 767,915 Interest expense: Product sales 8,488 7,344 Royalties — — Products subtotal 8,488 7,344 Rentals 2,006 3,380 Total 10,494 10,724 Net income (loss) before taxes: Product sales 37,467 (117,474 ) Royalties 5,063 12,572 Products subtotal 45,230 (104,902 ) Rentals (11,620 ) (11,812 ) Total $ 30,910 $ (116,714 ) The following sets forth information about the operations of the business segments for the nine months ended September 30, 2023 and 2022. 2023 2022 Product sales $ 7,056,638 $ 6,264,222 Royalties 23,419 40,437 Products subtotal 7,080,057 6,304,659 Rentals 60,351 67,867 Total 7,140,408 6,372,526 Gross profit: Product sales 3,047,143 2,205,376 Royalties 23,419 40,437 Products subtotal 3,070,562 2,245,813 Rentals 26,700 27,626 Total 3,097,262 2,273,439 Interest expense: Product sales 22,777 22,223 Royalties — — Products subtotal 22,777 22,223 Rentals 8,542 10,228 Total 31,319 32,451 Net income (loss) before taxes: Product sales (8,257 ) (631,624 ) Royalties 23,419 40,437 Products subtotal 15,162 (591,187 ) Rentals 18,158 17,398 Total $ 33,320 $ (573,789 )

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Raw materials & deposits	$ 2,645,642	$ 2,509,661
Work-in-process	34,365	52,642
Finished goods	601,555	539,316
Total gross inventories	3,281,562	3,101,619
Less reserve for obsolescence	(369,156)	(369,156)
Total net inventories	$ 2,912,406	$ 2,732,463

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Product Information [Line Items]
Total revenues	$ 2,695,508	$ 2,031,866	$ 7,140,408	$ 6,372,526
Product Sales And Supplies [Member]
Product Information [Line Items]
Total revenues	2,437,753	1,832,037	6,376,364	5,720,479
Training Certification And Data Recording [Member]
Product Information [Line Items]
Total revenues	215,105	159,052	620,367	489,033
Service Plans And Equipment Rental [Member]
Product Information [Line Items]
Total revenues	24,014	16,563	59,907	54,710
Product Sales Subtotal [Member]
Product Information [Line Items]
Total revenues	2,676,872	2,007,652	7,056,638	6,264,222
Royalties [Member]
Product Information [Line Items]
Total revenues	5,063	1,225	23,419	40,437
Rental Income [Member]
Product Information [Line Items]
Total revenues	$ 13,573	$ 22,989	$ 60,351	$ 67,867

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Earnings Per Share [Abstract]
Net income (loss)	$ 109,603	$ (86,972)	$ 110,960	$ (433,010)
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	$ 0.04	$ (0.04)	$ 0.05	$ (0.18)
Net income (loss) per share-diluted	$ 0.04	$ (0.04)	$ 0.05	$ (0.18)
Antidilutive employee stock options

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - Price Range 1 [Member]	9 Months Ended
	Sep. 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
Weighted average remaining contractual life	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	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2023	Sep. 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)	Sep. 30, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2023	$ 13,189
2024	53,738
2025	55,345
2026	57,000
2027 - 2031	1,068,642
Total	1,247,914
Less financing cost	(13,969)
Net term loan payable	1,233,945
Less current portion	(51,194)
Long term portion	$ 1,182,751

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)		9 Months Ended
	Oct. 31, 2014	Sep. 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		$ 2,076,296
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)	9 Months Ended
	Sep. 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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Federal statutory rate	$ 6,491	$ (24,510)	$ 6,997	$ (120,495)
State taxes, net of federal tax benefit	38,823	5,255	36,525	25,224
Other	(124,007)	(10,487)	(121,162)	(45,508)
Total	$ (78,693)	$ (29,742)	$ (77,640)	$ (140,779)

BUSINESS SEGMENTS (Details)

BUSINESS SEGMENTS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues	$ 2,695,508	$ 2,031,866	$ 7,140,408	$ 6,372,526
Gross profit	1,119,391	767,915	3,097,262	2,273,439
Interest expense	10,494	10,724	31,319	32,451
Net income (loss) before taxes	30,910	(116,714)	33,320	(573,789)
Product Sales [Member]
Revenues	2,676,872	2,007,652	7,056,638	6,264,222
Gross profit	1,123,942	775,122	3,047,143	2,205,376
Interest expense	8,488	7,344	22,777	22,223
Net income (loss) before taxes	37,467	(117,474)	(8,257)	(631,624)
Royalties [Member]
Revenues	5,063	1,225	23,419	40,437
Gross profit	5,063	1,225	23,419	40,437
Interest expense
Net income (loss) before taxes	5,063	12,572	23,419	40,437
Products Subtotal [Member]
Revenues	2,681,935	2,008,877	7,080,057	6,304,659
Gross profit	1,129,005	776,347	3,070,562	2,245,813
Interest expense	8,488	7,344	22,777	22,223
Net income (loss) before taxes	45,230	(104,902)	15,162	(591,187)
Rentals [Member]
Revenues	13,573	22,989	60,351	67,867
Gross profit	(9,614)	(8,432)	26,700	27,626
Interest expense	2,006	3,380	8,542	10,228
Net income (loss) before taxes	$ (11,620)	$ (11,812)	$ 18,158	$ 17,398

BUSINESS SEGMENTS (Details Narr

BUSINESS SEGMENTS (Details Narrative)	Sep. 30, 2023 USD ($)
Segment Reporting [Abstract]
Rentals segment	$ 191,461
Rentals segment remainder	$ 8,413,212