Lifeloc (LCTC) 10-Q 12 Nov 24 2024 Q3 Quarterly report Financial data

Cover

Cover	9 Months Ended
	Sep. 30, 2024 shares
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
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	2,664,116

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
CURRENT ASSETS:
Cash	$ 841,621	$ 1,766,621
Accounts receivable, net	611,439	812,126
Inventories, net	3,160,200	3,024,834
Federal and state income taxes receivable	60,420	0
Prepaid expenses and other	89,049	105,967
Total current assets	4,762,729	5,709,548
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	1,349,839	1,154,803
Training courses	432,375	432,375
Office equipment, software and space modifications	254,333	216,618
Sales and marketing equipment and space modifications	226,356	226,356
Research and development equipment, software and space modifications	725,556	480,684
Research and development equipment, software and space modifications not in service	147,615	0
Less accumulated depreciation	(3,511,125)	(3,326,837)
Total property and equipment, net	2,441,124	2,000,174
OTHER ASSETS:
Patents, net	80,517	64,439
Deposits and other	12,261	111,157
Deferred taxes	1,046,493	806,652
Total other assets	1,139,271	982,248
Total assets	8,343,124	8,691,970
CURRENT LIABILITIES:
Accounts payable	328,528	402,231
Term loan payable, current portion	52,789	51,588
Income taxes payable	0	44,952
Customer deposits	28,940	195,719
Accrued expenses	270,932	329,311
Deferred revenue, current portion	56,090	79,036
Reserve for warranty expense	46,500	46,500
Total current liabilities	783,779	1,149,337
TERM LOAN PAYABLE, net of current portion and debt issuance costs	1,132,066	1,170,243
DEFERRED REVENUE, net of current portion	8,575	11,565
Total liabilities	1,924,420	2,331,145
COMMITMENTS AND CONTINGENCIES (Note 5)
STOCKHOLDERS' EQUITY:
Common stock, no par value; 50,000,000 shares authorized, 2,664,116 shares  outstanding at September 30, 2024 (2,454,116 outstanding at December 31, 2023)	5,466,014	4,668,014
Retained earnings	952,690	1,692,811
Total stockholders' equity	6,418,704	6,360,825
Total liabilities and stockholders' equity	$ 8,343,124	$ 8,691,970

Condensed Balance Sheets (Una_2

Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
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	2,664,116	2,454,116

Condensed Statements of Income

Condensed Statements of Income (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
REVENUES:
Product sales	$ 2,075,994	$ 2,676,872	$ 6,580,861	$ 7,056,638
Royalties	3,016	5,063	22,776	23,419
Rental income	8,316	13,573	24,462	60,351
Total	2,087,326	2,695,508	6,628,099	7,140,408
COST OF SALES	1,175,374	1,576,117	3,887,244	4,043,146
GROSS PROFIT	911,952	1,119,391	2,740,855	3,097,262
OPERATING EXPENSES:
Research and development	521,107	516,174	1,738,982	1,308,721
Sales and marketing	329,716	309,898	1,040,099	897,856
General and administrative	269,450	269,593	947,384	872,724
Total	1,120,273	1,095,665	3,726,465	3,079,301
OPERATING INCOME (LOSS)	(208,321)	23,726	(985,610)	17,961
OTHER INCOME (EXPENSE):
Interest income	9,525	17,678	35,874	46,678
Interest expense	(10,019)	(10,494)	(30,226)	(31,319)
Total	(494)	7,184	5,648	15,359
NET INCOME (LOSS) BEFORE BENEFIT FROM (PROVISION FOR) TAXES	(208,815)	30,910	(979,962)	33,320
BENEFIT FROM FEDERAL AND STATE INCOME TAXES	50,488	78,693	239,841	77,640
NET INCOME (LOSS)	$ (158,327)	$ 109,603	$ (740,121)	$ 110,960
NET INCOME (LOSS) PER SHARE, BASIC	$ (0.06)	$ 0.04	$ (0.30)	$ 0.05
NET INCOME (LOSS) PER SHARE, DILUTED	$ (0.06)	$ 0.04	$ (0.30)	$ 0.05
WEIGHTED AVERAGE SHARES, BASIC	2,611,616	2,454,116	2,506,999	2,454,116
WEIGHTED AVERAGE SHARES, DILUTED	2,611,616	2,454,116	2,506,999	2,454,116

Statements of Stockholders' Equ

Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2022	$ 4,668,014	$ 1,487,197	$ 6,155,211
Issuance of 210,000 shares at $3.80 per share
Net income (loss)		110,960	110,960
Ending balance, value at Sep. 30, 2023	4,668,014	1,598,157	6,266,171
Beginning balance, value at Jun. 30, 2023	4,668,014	1,488,554	6,156,568
Issuance of 210,000 shares at $3.80 per share
Net income (loss)		109,603	109,603
Ending balance, value at Sep. 30, 2023	4,668,014	1,598,157	6,266,171
Beginning balance, value at Dec. 31, 2023	4,668,014	1,692,811	6,360,825
Issuance of 210,000 shares at $3.80 per share	798,000
Net income (loss)		(740,121)	(740,121)
Ending balance, value at Sep. 30, 2024	5,466,014	952,690	6,418,704
Beginning balance, value at Jun. 30, 2024	4,668,014	1,111,017	5,779,031
Issuance of 210,000 shares at $3.80 per share	798,000
Net income (loss)		(158,327)	(158,327)
Ending balance, value at Sep. 30, 2024	$ 5,466,014	$ 952,690	$ 6,418,704

Statements of Stockholders' E_2

Statements of Stockholders' Equity (Unaudited) (Parenthetical)	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Statement of Stockholders' Equity [Abstract]
Isuance of shares | shares	210,000
Share price | $ / shares	$ 3.80

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (740,121)	$ 110,960
Adjustments to reconcile net income (loss) to net cash (used in) operating activities-
Depreciation and amortization	193,096	198,471
Provision for doubtful accounts, net change	1,000	0
Provision for inventory obsolescence, net change	52,500	0
Deferred taxes, net change	(239,841)	(114,116)
Changes in operating assets and liabilities-
Accounts receivable	199,687	(81,388)
Inventories	(187,866)	(179,943)
Federal and state income taxes receivable	(60,420)	107,575
Prepaid expenses and other	16,918	(207,149)
Deposits and other	98,896	0
Accounts payable	(73,703)	87,870
Income taxes payable	(44,952)	36,476
Customer deposits	(166,779)	(16,557)
Accrued expenses	(58,379)	(82,738)
Deferred revenue	(25,936)	(13,339)
Net cash (used in) operating activities	(1,035,900)	(153,878)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(477,623)	(21,611)
Purchases of research and development equipment, software, and space modifications not in service	(147,615)	0
Patent filing expense	(21,708)	(1,404)
Net cash (used in) investing activities	(646,946)	(23,015)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments made on term loan	(40,154)	(38,988)
Proceeds from issuance of 210,000 shares of common stock at $3.80 per share	798,000	0
Net cash provided by (used in) financing activities	757,846	(38,988)
NET (DECREASE) IN CASH	(925,000)	(215,881)
CASH, BEGINNING OF PERIOD	1,766,621	2,352,754
CASH, END OF PERIOD	841,621	2,136,873
SUPPLEMENTAL INFORMATION:
Cash paid for interest	27,048	28,091
Cash paid for income tax	$ 60,420	$ 0

Condensed Statements of Cash _2

Condensed Statements of Cash Flows (Unaudited) (Parenthetical)	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Statement of Cash Flows [Abstract]
Isuance of shares | shares	210,000
Share price | $ / shares	$ 3.80

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure [Table]
Net Income (Loss)	$ (158,327)	$ 109,603	$ (740,121)	$ 110,960

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

ORGANIZATION AND NATURE OF BUSI

ORGANIZATION AND NATURE OF BUSINESS	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
ORGANIZATION AND NATURE OF BUSINESS	1. ORGANIZATION AND NATURE OF BUSINESS Lifeloc Technologies, Inc. ("Lifeloc" or the "Company") is a Colorado-based developer, manufacturer and marketer of portable hand-held and fixed station breathalyzers and related accessories, supplies and education. We design, produce and sell fuel-cell based breath alcohol testing equipment. We compete in all major segments of the breath alcohol testing instrument market, including law enforcement, workplace, corrections, original equipment manufacturing ("OEM") and consumer markets. In addition, we offer a line of supplies, accessories, services, and training to support customers' alcohol testing programs. We sell globally through distributors as well as directly to users. We define our business as providing "near and remote sensing and monitoring" products and solutions. Today, the majority of our revenues are derived from products and services for alcohol detection and measurement. We remain committed to growing our breath alcohol testing business. In the future, we anticipate the commercialization of new sensing and measurement products that may allow Lifeloc to successfully expand our business into new growth areas where we do not presently compete or where no satisfactory product solutions exist today. Lifeloc incorporated in Colorado in December 1983. We filed a registration statement on Form 10 with the Securities and Exchange Commission, which became effective on May 31, 2011. Our fiscal year end is December 31. Our principal executive offices are located at 12441 West 49th Avenue, Unit 4, Wheat Ridge, Colorado 80033-3338. Our telephone number is (303) 431-9500. Our websites are www.lifeloc.com 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, 2024
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 Debt Issuance Costs 1,076 1,076 3,178 3,228 Inventories We reduce inventory for estimated obsolete or unmarketable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. At September 30, 2024 and December 31, 2023, inventory consisted of the following: Schedule of inventory 2024 2023 Raw materials & deposits $ 2,876,436 $ 2,696,659 Work-in-process 6,678 26,269 Finished goods 698,742 671,062 Total gross inventories 3,581,856 3,393,990 Less reserve for obsolescence (421,656 ) (369,156 ) Total net inventories $ 3,160,200 $ 3,024,834 Income Taxes Accounting for Income Taxes 21 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 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. 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. We lease 2,774 square feet ( 12 June 30, 2025 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. The following is 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, 2024 and September 30, 2023. Schedule of disaggregation of revenue Three Months Ended September 30, Product sales: 2024 2023 Product sales and supplies $ 1,898,001 $ 2,437,753 Training, certification and data recording 157,722 215,105 Service plans and equipment rental 20,271 24,014 Product sales subtotal 2,075,994 2,676,872 Royalties 3,016 5,063 Rental income 8,316 13,573 Total revenues $ 2,087,326 $ 2,695,508 Nine Months Ended September 30, Product sales: 2024 2023 Product sales and supplies $ 5,992,360 $ 6,376,364 Training, certification and data recording 528,882 620,367 Service plans and equipment rental 59,619 59,907 Product sales subtotal 6,580,861 7,056,638 Royalties 22,776 23,419 Rental income 24,462 60,351 Total revenues $ 6,628,099 $ 7,140,408 Deferred Revenue New Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, amending reportable segment disclosure requirements to include disclosure of incremental segment information on an annual and interim basis. Among the disclosure enhancements are new disclosures regarding significant segment expenses that are regularly provided to the chief operating decision-maker and included within each each reported measure of segment profit or loss, as well as other segment items bridging segment revenue to each reported measure of segment profit or loss. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, and are applied retrospectively. Early adoption is permitted. We are currently evaluating the impact of this update on our financial statements and disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, amending income tax disclosure requirements for the effective tax rate reconciliation and income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024 and are applied prospectively. Early adoption and retrospective application of the amendments are permitted. We continue to evaluate the impact of this update on our financial statements, but do not expect any changes to our current reportable segments.

BASIC AND DILUTED INCOME (LOSS)

BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE	9 Months Ended
	Sep. 30, 2024
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 September 30, 2024 and September 30, 2023, and for the nine months ended September 30, 2024 and September 30, 2023: Schedule of calculation of basic and diluted net income (loss) per common share Three Months Ended September 30, 2024 2023 Net income (loss) $ (158,327 ) $ 109,603 Weighted average shares-basic 2,611,616 2,454,116 Effect of dilutive potential common shares — — Weighted average shares-diluted 2,611,616 2,454,116 Net income (loss) per share-basic $ (0.06 ) $ 0.04 Net income (loss) per share-diluted $ (0.06 ) $ 0.04 Antidilutive employee stock options 122,000 — Nine Months Ended September 30, 2024 2023 Net income (loss) $ (740,121 ) $ 110,960 Weighted average shares-basic 2,506,999 2,454,116 Effect of dilutive potential common shares — — Weighted average shares-diluted 2,506,999 2,454,116 Net (loss) per share-basic $ (0.30 ) $ (.05 ) Net (loss) per share-diluted $ (0.30 ) $ (.05 ) Antidilutive employee stock options 122,000 —

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
STOCKHOLDERS' EQUITY	4. STOCKHOLDERS' EQUITY In July, 2024 we issued 210,000 3.80 798,000 2,664,116 No The following table summarizes information about employee stock options outstanding and exercisable at September 30, 2024: Schedule of employee 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 $ 3.80 122,000 0.81 $ 3.80 122,000 $ 3.80 As of September 30, 2024, no The aggregate intrinsic value of the options outstanding and exercisable at September 30, 2024 was $ 50,020 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, 2024
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 principal payments 2024 $ 13,583 2025 55,345 2026 57,000 2027 58,704 2028 – 2031 1,009,938 Total 1,194,570 Less financing cost (9,715 ) Net term loan payable 1,184,855 Less current portion (52,789 ) Long term portion $ 1,132,066 Employee Severance Benefits Contractual Commitments and Purchase Orders 2,843,637 Regulatory Commitments

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	6. 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 consist of the following. Schedule of provision for (benefit from) income taxes Three months Ended September 30, 2024 2023 Federal statutory rate $ (44,544 ) $ 6,491 Effect of: State taxes, net of federal tax benefit (9,507 ) 38,823 Other 3,563 (124,007 ) Total $ (50,488 ) $ (78,693 ) Nine months Ended September 30, 2024 2023 Federal statutory rate $ (206,538 ) $ 6,997 Effect of: State taxes, net of federal tax benefit (43,737 ) 36,525 Other 10,434 (121,162 ) Total $ (239,841 ) $ (77,640 )

BUSINESS SEGMENTS

BUSINESS SEGMENTS	9 Months Ended
	Sep. 30, 2024
Segment Reporting [Abstract]
BUSINESS SEGMENTS	7. BUSINESS SEGMENTS We currently have two operating segments, including our primary business which is as a developer, manufacturer and marketer of 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). As a result of purchasing our building on October 31, 2014, we have a second business segment consisting of renting portions of our building to one tenant, whose lease expires on June 30, 2025. 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 capital expenditures, operations and depreciation and amortization of the business segments for the three months ended September 30, 2024 and 2023. Schedule of capital expenditures, operations and depreciation and amortization of the business segments Capital expenditures: 2024 2023 Product sales $ 133,947 $ 6,800 Royalties — — Products subtotal 133,947 6,800 Rentals — — Total $ 133,947 $ 6,800 Revenues: 2024 2023 Product sales $ 2,075,994 $ 2,676,872 Royalties 3,016 5,063 Products subtotal 2,079,010 2,681,935 Rentals 8,316 13,573 Total $ 2,087,326 $ 2,695,508 Gross profit: 2024 2023 Product sales $ 911,047 $ 1,123,942 Royalties 3,016 5,063 Products subtotal 914,063 1,129,005 Rentals (2,111 ) (9,614 ) Total $ 911,952 $ 1,119,391 Depreciation and amortization: 2024 2023 Product sales $ 76,965 $ 61,973 Royalties — — Products subtotal 76,965 61,973 Rentals 1,512 4,410 Total $ 78,477 $ 66,383 Interest expense: 2024 2023 Product sales $ 8,954 $ 8,488 Royalties — — Products subtotal 8,954 8,488 Rentals 1,065 2,006 Total $ 10,019 $ 10,494 Net income (loss) before taxes: 2024 2023 Product sales $ (208,655 ) $ 37,467 Royalties 3,016 5,063 Products subtotal (205,639 ) 42,530 Rentals (3,176 ) (11,620 ) Total $ (208,815 ) $ 30,910 The following sets forth information about capital expenditures, operations and depreciation and amortization of the business segments for the nine months ended September 30, 2024 and 2023. Capital expenditures: 2024 2023 Product sales $ 625,238 $ 21,611 Royalties — — Products subtotal 625,238 21,611 Rentals — — Total $ 625,238 $ 21,611 Revenues: 2024 2023 Product sales $ 6,580,861 $ 7,056,638 Royalties 22,776 23,419 Products subtotal 6,603,637 7,080,057 Rentals 24,462 60,351 Total $ 6,628,099 $ 7,140,408 Gross profit: 2024 2023 Product sales $ 2,710,884 $ 3,047,143 Royalties 22,776 23,419 Products subtotal 2,733,660 3,070,562 Rentals 7,195 26,700 Total $ 2,740,855 $ 3,097,262 Depreciation and amortization: 2024 2023 Product sales $ 187,594 $ 185,241 Royalties — — Products subtotal 187,594 185,241 Rentals 5,502 13,230 Total $ 193,096 $ 198,471 Interest expense: 2024 2023 Product sales $ 26,813 $ 22,777 Royalties — — Products subtotal 26,813 22,777 Rentals 3,413 8,542 Total $ 30,226 $ 31,319 Net income (loss) before taxes: 2024 2023 Product sales $ (1,006,520 ) $ (8,257 ) Royalties 22,776 23,419 Products subtotal (983,744 ) 15,162 Rentals 3,782 18,158 Total $ (979,962 ) $ 33,320 There were no intersegment revenues. At September 30, 2024, $ 185,549 8,157,575

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2024
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
Debt Issuance Costs	Debt Issuance Costs 1,076 1,076 3,178 3,228
Inventories	Inventories We reduce inventory for estimated obsolete or unmarketable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. At September 30, 2024 and December 31, 2023, inventory consisted of the following: Schedule of inventory 2024 2023 Raw materials & deposits $ 2,876,436 $ 2,696,659 Work-in-process 6,678 26,269 Finished goods 698,742 671,062 Total gross inventories 3,581,856 3,393,990 Less reserve for obsolescence (421,656 ) (369,156 ) Total net inventories $ 3,160,200 $ 3,024,834
Income Taxes	Income Taxes Accounting for Income Taxes 21 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 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. 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. We lease 2,774 square feet ( 12 June 30, 2025 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. The following is 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, 2024 and September 30, 2023. Schedule of disaggregation of revenue Three Months Ended September 30, Product sales: 2024 2023 Product sales and supplies $ 1,898,001 $ 2,437,753 Training, certification and data recording 157,722 215,105 Service plans and equipment rental 20,271 24,014 Product sales subtotal 2,075,994 2,676,872 Royalties 3,016 5,063 Rental income 8,316 13,573 Total revenues $ 2,087,326 $ 2,695,508 Nine Months Ended September 30, Product sales: 2024 2023 Product sales and supplies $ 5,992,360 $ 6,376,364 Training, certification and data recording 528,882 620,367 Service plans and equipment rental 59,619 59,907 Product sales subtotal 6,580,861 7,056,638 Royalties 22,776 23,419 Rental income 24,462 60,351 Total revenues $ 6,628,099 $ 7,140,408
Deferred Revenue	Deferred Revenue
New Accounting Pronouncements	New Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, amending reportable segment disclosure requirements to include disclosure of incremental segment information on an annual and interim basis. Among the disclosure enhancements are new disclosures regarding significant segment expenses that are regularly provided to the chief operating decision-maker and included within each each reported measure of segment profit or loss, as well as other segment items bridging segment revenue to each reported measure of segment profit or loss. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, and are applied retrospectively. Early adoption is permitted. We are currently evaluating the impact of this update on our financial statements and disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, amending income tax disclosure requirements for the effective tax rate reconciliation and income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024 and are applied prospectively. Early adoption and retrospective application of the amendments are permitted. We continue to evaluate the impact of this update on our financial statements, but do not expect any changes to our current reportable segments.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Schedule of inventory	Schedule of inventory 2024 2023 Raw materials & deposits $ 2,876,436 $ 2,696,659 Work-in-process 6,678 26,269 Finished goods 698,742 671,062 Total gross inventories 3,581,856 3,393,990 Less reserve for obsolescence (421,656 ) (369,156 ) Total net inventories $ 3,160,200 $ 3,024,834
Schedule of disaggregation of revenue	Schedule of disaggregation of revenue Three Months Ended September 30, Product sales: 2024 2023 Product sales and supplies $ 1,898,001 $ 2,437,753 Training, certification and data recording 157,722 215,105 Service plans and equipment rental 20,271 24,014 Product sales subtotal 2,075,994 2,676,872 Royalties 3,016 5,063 Rental income 8,316 13,573 Total revenues $ 2,087,326 $ 2,695,508 Nine Months Ended September 30, Product sales: 2024 2023 Product sales and supplies $ 5,992,360 $ 6,376,364 Training, certification and data recording 528,882 620,367 Service plans and equipment rental 59,619 59,907 Product sales subtotal 6,580,861 7,056,638 Royalties 22,776 23,419 Rental income 24,462 60,351 Total revenues $ 6,628,099 $ 7,140,408

BASIC AND DILUTED INCOME (LOS_2

BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE (Tables)	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Schedule of calculation of basic and diluted net income (loss) per common share	Schedule of calculation of basic and diluted net income (loss) per common share Three Months Ended September 30, 2024 2023 Net income (loss) $ (158,327 ) $ 109,603 Weighted average shares-basic 2,611,616 2,454,116 Effect of dilutive potential common shares — — Weighted average shares-diluted 2,611,616 2,454,116 Net income (loss) per share-basic $ (0.06 ) $ 0.04 Net income (loss) per share-diluted $ (0.06 ) $ 0.04 Antidilutive employee stock options 122,000 — Nine Months Ended September 30, 2024 2023 Net income (loss) $ (740,121 ) $ 110,960 Weighted average shares-basic 2,506,999 2,454,116 Effect of dilutive potential common shares — — Weighted average shares-diluted 2,506,999 2,454,116 Net (loss) per share-basic $ (0.30 ) $ (.05 ) Net (loss) per share-diluted $ (0.30 ) $ (.05 ) Antidilutive employee stock options 122,000 —

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
Schedule of employee stock options outstanding and exercisable	Schedule of employee 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 $ 3.80 122,000 0.81 $ 3.80 122,000 $ 3.80

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Schedule of minimum future principal payments	Schedule of minimum future principal payments 2024 $ 13,583 2025 55,345 2026 57,000 2027 58,704 2028 – 2031 1,009,938 Total 1,194,570 Less financing cost (9,715 ) Net term loan payable 1,184,855 Less current portion (52,789 ) Long term portion $ 1,132,066

INCOME TAXES (Tables)

INCOME TAXES (Tables)	9 Months Ended
	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Schedule of provision for (benefit from) income taxes	Schedule of provision for (benefit from) income taxes Three months Ended September 30, 2024 2023 Federal statutory rate $ (44,544 ) $ 6,491 Effect of: State taxes, net of federal tax benefit (9,507 ) 38,823 Other 3,563 (124,007 ) Total $ (50,488 ) $ (78,693 ) Nine months Ended September 30, 2024 2023 Federal statutory rate $ (206,538 ) $ 6,997 Effect of: State taxes, net of federal tax benefit (43,737 ) 36,525 Other 10,434 (121,162 ) Total $ (239,841 ) $ (77,640 )

BUSINESS SEGMENTS (Tables)

BUSINESS SEGMENTS (Tables)	9 Months Ended
	Sep. 30, 2024
Segment Reporting [Abstract]
Schedule of capital expenditures, operations and depreciation and amortization of the business segments	Schedule of capital expenditures, operations and depreciation and amortization of the business segments Capital expenditures: 2024 2023 Product sales $ 133,947 $ 6,800 Royalties — — Products subtotal 133,947 6,800 Rentals — — Total $ 133,947 $ 6,800 Revenues: 2024 2023 Product sales $ 2,075,994 $ 2,676,872 Royalties 3,016 5,063 Products subtotal 2,079,010 2,681,935 Rentals 8,316 13,573 Total $ 2,087,326 $ 2,695,508 Gross profit: 2024 2023 Product sales $ 911,047 $ 1,123,942 Royalties 3,016 5,063 Products subtotal 914,063 1,129,005 Rentals (2,111 ) (9,614 ) Total $ 911,952 $ 1,119,391 Depreciation and amortization: 2024 2023 Product sales $ 76,965 $ 61,973 Royalties — — Products subtotal 76,965 61,973 Rentals 1,512 4,410 Total $ 78,477 $ 66,383 Interest expense: 2024 2023 Product sales $ 8,954 $ 8,488 Royalties — — Products subtotal 8,954 8,488 Rentals 1,065 2,006 Total $ 10,019 $ 10,494 Net income (loss) before taxes: 2024 2023 Product sales $ (208,655 ) $ 37,467 Royalties 3,016 5,063 Products subtotal (205,639 ) 42,530 Rentals (3,176 ) (11,620 ) Total $ (208,815 ) $ 30,910 The following sets forth information about capital expenditures, operations and depreciation and amortization of the business segments for the nine months ended September 30, 2024 and 2023. Capital expenditures: 2024 2023 Product sales $ 625,238 $ 21,611 Royalties — — Products subtotal 625,238 21,611 Rentals — — Total $ 625,238 $ 21,611 Revenues: 2024 2023 Product sales $ 6,580,861 $ 7,056,638 Royalties 22,776 23,419 Products subtotal 6,603,637 7,080,057 Rentals 24,462 60,351 Total $ 6,628,099 $ 7,140,408 Gross profit: 2024 2023 Product sales $ 2,710,884 $ 3,047,143 Royalties 22,776 23,419 Products subtotal 2,733,660 3,070,562 Rentals 7,195 26,700 Total $ 2,740,855 $ 3,097,262 Depreciation and amortization: 2024 2023 Product sales $ 187,594 $ 185,241 Royalties — — Products subtotal 187,594 185,241 Rentals 5,502 13,230 Total $ 193,096 $ 198,471 Interest expense: 2024 2023 Product sales $ 26,813 $ 22,777 Royalties — — Products subtotal 26,813 22,777 Rentals 3,413 8,542 Total $ 30,226 $ 31,319 Net income (loss) before taxes: 2024 2023 Product sales $ (1,006,520 ) $ (8,257 ) Royalties 22,776 23,419 Products subtotal (983,744 ) 15,162 Rentals 3,782 18,158 Total $ (979,962 ) $ 33,320

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Accounting Policies [Abstract]
Raw materials & deposits	$ 2,876,436	$ 2,696,659
Work-in-process	6,678	26,269
Finished goods	698,742	671,062
Total gross inventories	3,581,856	3,393,990
Less reserve for obsolescence	(421,656)	(369,156)
Total net inventories	$ 3,160,200	$ 3,024,834

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Product Information [Line Items]
Total revenues	$ 2,087,326	$ 2,695,508	$ 6,628,099	$ 7,140,408
Product Sales And Supplies [Member]
Product Information [Line Items]
Total revenues	1,898,001	2,437,753	5,992,360	6,376,364
Training Certification And Data Recording [Member]
Product Information [Line Items]
Total revenues	157,722	215,105	528,882	620,367
Service Plans And Equipment Rental [Member]
Product Information [Line Items]
Total revenues	20,271	24,014	59,619	59,907
Product Sales Subtotal [Member]
Product Information [Line Items]
Total revenues	2,075,994	2,676,872	6,580,861	7,056,638
Royalties [Member]
Product Information [Line Items]
Total revenues	3,016	5,063	22,776	23,419
Rental Income [Member]
Product Information [Line Items]
Total revenues	$ 8,316	$ 13,573	$ 24,462	$ 60,351

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Accounting Policies [Abstract]
Total debt amortization	$ 1,076	$ 1,076	$ 3,178	$ 3,228
Estimated annual effective tax rate			21%
Lease percentage	12%		12%
Lease expire date			Jun. 30, 2025

BASIC AND DILUTED INCOME (LOS_3

BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share [Abstract]
Net income (loss)	$ (158,327)	$ 109,603	$ (740,121)	$ 110,960
Weighted average shares-basic	2,611,616	2,454,116	2,506,999	2,454,116
Effect of dilutive potential common shares	0	0	0	0
Weighted average shares-diluted	2,611,616	2,454,116	2,506,999	2,454,116
Net (loss) per share-basic	$ (0.06)	$ 0.04	$ (0.30)	$ (0.05)
Net (loss) per share-diluted	$ (0.06)	$ 0.04	$ (0.30)	$ (0.05)
Antidilutive employee stock options	122,000	0	122,000	0

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - Price Range 1 [Member]	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 3.80
Stock option outstanding | shares	122,000
Weighted average remaining contractual life (in years)	9 months 21 days
Weighted average exercise price per share	$ 3.80
Number of options exercisable | shares	122,000
Weighted average exercise price per share, exercisable	$ 3.80

STOCKHOLDERS' EQUITY (Details N

STOCKHOLDERS' EQUITY (Details Narrative) - USD ($)	1 Months Ended	9 Months Ended
	Jul. 31, 2024	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Class of Stock [Line Items]
Number of shares issued, shares		210,000
Share price		$ 3.80
Common stock, shares outstanding		2,664,116		2,454,116
Intrinsic value of options outstanding and exercisable		$ 50,020
Options, exercised		0	0
Common stock, authorized shares		50,000,000		50,000,000
Plan 2013 [Member]
Class of Stock [Line Items]
Options available for grant		0
Common Stock [Member] | EDCO Partners LLLP [Member]
Class of Stock [Line Items]
Number of shares issued, shares	210,000
Share price	$ 3.80
Number of shares issued, value	$ 798,000
Common stock, shares outstanding	2,664,116
Common stock, shares issued			0

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
2024	$ 13,583
2025	55,345
2026	57,000
2027	58,704
2028 - 2031	1,009,938
Total	1,194,570
Less financing cost	(9,715)
Net term loan payable	1,184,855
Less current portion	(52,789)
Long term portion	$ 1,132,066	$ 1,170,243

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)			9 Months Ended
	Sep. 30, 2021	Oct. 31, 2014	Sep. 30, 2024
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Facilities purchased		$ 1,949,139
Periodic payment			$ 7,453
Final payment			773,727
Outstanding purchase orders issued to vendors			$ 2,843,637
Bank Of America [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Term loan		$ 1,581,106
Citywide Banks [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Principal amount	$ 1,350,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Federal statutory rate	$ (44,544)	$ 6,491	$ (206,538)	$ 6,997
State taxes, net of federal tax benefit	(9,507)	38,823	(43,737)	36,525
Other	3,563	(124,007)	10,434	(121,162)
Total	$ (50,488)	$ (78,693)	$ (239,841)	$ (77,640)

BUSINESS SEGMENTS (Details)

BUSINESS SEGMENTS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Net income (loss) before taxes	$ (208,815)	$ 30,910	$ (979,962)	$ 33,320
Product Sales [Member]
Segment Reporting Information [Line Items]
Capital expenditures	133,947	6,800	625,238	21,611
Revenues	2,075,994	2,676,872	6,580,861	7,056,638
Gross profit	911,047	1,123,942	2,710,884	3,047,143
Depreciation and amortization	76,965	61,973	187,594	185,241
Interest expense	8,954	8,488	26,813	22,777
Net income (loss) before taxes	(208,655)	37,467	(1,006,520)	(8,257)
Royalties [Member]
Segment Reporting Information [Line Items]
Capital expenditures	0	0	0	0
Revenues	3,016	5,063	22,776	23,419
Gross profit	3,016	5,063	22,776	23,419
Depreciation and amortization	0	0	0	0
Interest expense	0	0	0	0
Net income (loss) before taxes	3,016	5,063	22,776	23,419
Products Subtotal [Member]
Segment Reporting Information [Line Items]
Capital expenditures	133,947	6,800	625,238	21,611
Revenues	2,079,010	2,681,935	6,603,637	7,080,057
Gross profit	914,063	1,129,005	2,733,660	3,070,562
Depreciation and amortization	76,965	61,973	187,594	185,241
Interest expense	8,954	8,488	26,813	22,777
Net income (loss) before taxes	(205,639)	42,530	(983,744)	15,162
Rentals [Member]
Segment Reporting Information [Line Items]
Capital expenditures	0	0	0	0
Revenues	8,316	13,573	24,462	60,351
Gross profit	(2,111)	(9,614)	7,195	26,700
Depreciation and amortization	1,512	4,410	5,502	13,230
Interest expense	1,065	2,006	3,413	8,542
Net income (loss) before taxes	(3,176)	(11,620)	3,782	18,158
Total [Member]
Segment Reporting Information [Line Items]
Capital expenditures	133,947	6,800	625,238	21,611
Revenues	2,087,326	2,695,508	6,628,099	7,140,408
Gross profit	911,952	1,119,391	2,740,855	3,097,262
Depreciation and amortization	78,477	66,383	193,096	198,471
Interest expense	10,019	10,494	30,226	31,319
Net income (loss) before taxes	$ (208,815)	$ 30,910	$ (979,962)	$ 33,320

BUSINESS SEGMENTS (Details Narr

BUSINESS SEGMENTS (Details Narrative)	Sep. 30, 2024 USD ($)
Segment Reporting [Abstract]
Rentals segment	$ 185,549
Rentals segment remainder	$ 8,157,575