Electronic Systems Technology (ELST) 10-Q 25 Oct 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 11, 2019
Details
Registrant CIK	0000752294
Fiscal Year End	--12-31
Registrant Name	Electronic Systems Technology Inc
SEC Form	10-Q
Period End date	Sep. 30, 2019
Trading Symbol	ELST
Trading Exchange	NONE
Tax Identification Number (TIN)	91-1238077
Number of common stock shares outstanding		4,946,502
Filer Category	Non-accelerated Filer
Current with reporting	Yes
Interactive Data Current	Yes
Shell Company	false
Small Business	true
Emerging Growth Company	false
Entity Incorporation, State or Country Code	WA
Entity File Number	000-27793
Entity Address, Address Line One	415 N. Quay St. Bldg B1
Entity Address, City or Town	Kennewick
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	99336
City Area Code	509
Local Phone Number	735-9092
Title of 12(g) Security	Common Stock, $0.001 par value
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Document Quarterly Report	true
Document Transition Report	false

Electronic Systems Technology,

Electronic Systems Technology, Inc. Balance Sheets (Interim period unaudited) - USD ($)		Sep. 30, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents		$ 199,615	$ 323,667
Certificates of deposit		800,000	900,000
Accounts receivable, net		171,253	57,156
Inventories		711,647	714,995
Prepaid expenses		21,882	21,353
Accrued interest receivable		9,992	13,300
Total current assets		1,914,389	2,030,471
Property and equipment, net of depreciation		14,390	20,368
Right to use - Lease, net of amortization	[1]	52,855	0
Total assets		1,981,634	2,050,839
Current liabilities
Accounts payable		12,505	71,257
Refundable deposits		2,070	10,310
Accrued wages and bonus		3,664	2,138
Accrued vacation pay		16,146	11,449
Lease liability, current portion	[1]	52,855	0
Other accrued liabilities		5,418	2,514
Total current liabilities		92,658	97,668
Total liabilities		92,658	97,668
Stockholders' equity
Additional paid-in capital		929,159	944,040
Retained earnings		954,870	1,004,145
Total stockholders' equity		1,888,976	1,953,171
Total liabilities and stockholders' equity		$ 1,981,634	$ 2,050,839
[1]	NOTE 6

Electronic Systems Technology_2

Electronic Systems Technology, Inc. Balance Sheets (Interim period unaudited) - Parenthetical - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Details
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	50,000,000	50,000,000
Common Stock, Shares, Issued	4,946,502	4,985,748
Common Stock, Shares, Outstanding	4,946,502	4,985,748

ELECTRONIC SYSTEMS TECHNOLOGY_3

ELECTRONIC SYSTEMS TECHNOLOGY, INC STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Details
Sales, net	$ 371,915	$ 299,003	$ 1,141,343	$ 1,078,744
Cost of sales	(163,041)	(142,138)	(528,415)	(520,335)
Gross profit	208,874	156,865	612,928	558,409
Operating Expenses
General and administrative	64,756	67,171	227,450	215,330
Research and development	48,445	42,965	165,397	134,392
Marketing and sales	89,414	85,121	286,621	290,125
Operating loss	202,615	195,257	679,468	639,847
Operating loss	6,259	(38,392)	(66,540)	(81,438)
Other income
Interest income	5,510	4,857	17,265	12,988
Total other income	5,510	4,857	17,265	12,988
Net loss before income tax	11,769	(33,535)	(49,275)	(68,450)
Benefit (provision) for income tax	0	0	0	0
Net loss	$ 11,769	$ (33,535)	$ (49,275)	$ (68,450)
Basic and diluted earnings per share	$ 0	$ (0.01)	$ (0.01)	$ (0.01)
Basic average shares	4,946,502	4,986,048	4,949,754	4,986,048
Diluted average shares	4,951,273	4,986,048	4,949,754	4,986,048

ELECTRONIC SYSTEMS TECHNOLOGY_4

ELECTRONIC SYSTEMS TECHNOLOGY, INC. STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Common Stock	Additional Paid-in Capital	Retained Earnings	Total
Equity balance at Dec. 31, 2017		$ 944,161	$ 1,120,244	$ 2,069,391
Shares outstanding at Dec. 31, 2017	4,986,048
Net Income/(Loss)	$ 0	0	(103,793)	(103,793)
Shares outstanding at Mar. 31, 2018	4,986,048
Equity balance at Mar. 31, 2018		944,161	1,016,451	1,965,598
Net Income/(Loss)	$ 0	0	68,878	68,678
Shares outstanding at Jun. 30, 2018	4,986,048
Equity balance at Jun. 30, 2018		944,161	1,085,329	2,034,476
Net Income/(Loss)	$ 0	0	(33,535)	(33,535)
Shares outstanding at Sep. 30, 2018	4,986,048
Equity balance at Sep. 30, 2018		944,161	1,051,794	2,000,941
Equity balance at Dec. 31, 2018		944,040	1,004,145	1,953,171
Shares outstanding at Dec. 31, 2018	4,985,748
Common stock repurchased	(39,246)
Common stock repurchased		(14,881)	0	(14,920)
Net Income/(Loss)	$ 0	0	(54,825)	(54,825)
Shares outstanding at Mar. 31, 2019	4,946,502
Equity balance at Mar. 31, 2019		929,159	943,320	1,883,426
Equity balance at Dec. 31, 2018		944,040	1,004,145	$ 1,953,171
Shares outstanding at Dec. 31, 2018	4,985,748
Common stock repurchased				39,246
Common stock repurchased				$ (14,920)
Shares outstanding at Sep. 30, 2019	4,946,502
Equity balance at Sep. 30, 2019		929,159	954,870	1,888,976
Equity balance at Mar. 31, 2019		929,159	943,320	1,883,426
Shares outstanding at Mar. 31, 2019	4,946,502
Net Income/(Loss)			(6,219)	(6,219)
Shares outstanding at Jun. 30, 2019	4,946,502
Equity balance at Jun. 30, 2019		929,159	943,101	1,877,207
Net Income/(Loss)	$ 0	0	11,769	11,769
Shares outstanding at Sep. 30, 2019	4,946,502
Equity balance at Sep. 30, 2019		$ 929,159	$ 954,870	$ 1,888,976

ELECTRONIC SYSTEMS TECHNOLOGY_5

ELECTRONIC SYSTEMS TECHNOLOGY, INC. STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities
Net loss	$ (49,275)	$ (68,450)
Noncash items included in net loss
Depreciation	5,978	8,307
Changes in operating assets and liabilities
Accounts receivable, net	(114,097)	(17,332)
Inventories	3,348	111,791
Accrued interest receivable	3,308	(4,442)
Prepaid expenses	(529)	(16,567)
Accounts payable	(58,752)	41,014
Refundable deposits	(8,240)	(3,937)
Other accrued liabilities	9,127	(2,079)
NET CASH PROVIDED (USED) IN OPERATING ACTIVITIES	(209,132)	48,305
CASH FLOWS FROM INVESTING ACTIVITIES:
Certificates of deposit redeemed	1,800,000	100,000
Certificates of deposit purchased	(1,700,000)
NET CASH PROVIDED FROM INVESTING ACTIVITIES	100,000	100,000
CASH FLOWS USED IN FINANCING ACTIVITIES:
Repurchase of shares of common stock	(14,920)	0
NET CASH USED IN FINANCING ACTIVITIES	(14,920)	0
NET INCREASE IN CASH AND CASH EQUIVALENTS	(124,052)	148,305
Cash and cash equivalents at beginning of period	323,667	208,101
Cash and cash equivalents at end of period	$ 199,615	$ 356,406

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	9 Months Ended
	Sep. 30, 2019
Notes
Note 1 - Basis of Presentation	NOTE 1 - BASIS OF PRESENTATION The financial statements, including notes, of Electronic Systems Technology, Inc. (the "Company") are representations of the Company’s management, which is responsible for their integrity and objectivity. The accompanying unaudited financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, as well as the instructions to Form 10-Q. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of September 30, 2019, and its results of operations, cash flows, and changes in stockholders’ equity for the three months and nine months ended September 30, 2019 and 2018. The balance sheet at December 31, 2018 was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. All amounts presented are in U.S. dollars. For further information, refer to the financial statements and footnotes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The results of operations for the three month and nine month period ended September 30, 2019 are not necessarily indicative of the results expected for the full fiscal year or for any other fiscal period. The Company estimates that for 2019 the anticipated effective annual federal income tax rate will be 0%. Accounting Standards Updates Adopted In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02 Leases (Topic 842). The update modifies the classification criteria and requires lessees to recognize the assets and liabilities on the balance sheet for most leases. The update is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company adopted the update on January 1, 2019. Upon implementation of the new guidance, the Company recognized a liability and right-of-use asset of $91,637 as of January 1, 2019 for its one operating lease. The Company elected the transition option to apply the new guidance at the effective date without adjusting comparative periods presented. (See Note 6). Accounting Standards Updates to Become Effective in Future Periods In August 2018, the FASB issued ASU No. 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The update removes, modifies and makes additions to the disclosure requirements on fair value measurements. The update is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of this update on our fair value measurement disclosures. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

Note 2 - Inventories

Note 2 - Inventories	9 Months Ended
	Sep. 30, 2019
Notes
Note 2 - Inventories	NOTE 2 - INVENTORIES Inventories are stated at lower of direct cost or net realizable value with cost determined using the FIFO (first in, first out) method. Inventories consist of the following: September 30, 2019 December 31, 2018 Parts $ 127,049 $ 133,809 Work in progress 289,679 243,081 Finished goods 294,919 338,105 Total inventories $ 711,647 $ 714,995

Note 3 - Earnings (Loss) Per Sh

Note 3 - Earnings (Loss) Per Share	9 Months Ended
	Sep. 30, 2019
Notes
Note 3 - Earnings (Loss) Per Share	NOTE 3 - EARNINGS (LOSS) PER SHARE Basic and diluted earnings per share are calculated by dividing net income (loss) by the weighted average number of common shares outstanding–basic and diluted. For the nine month period ending September 30, 2019 and the three and nine month periods ending September 30, 2018, all outstanding stock options (Note 4) were excluded from the computation of diluted loss per share because they were anti-dilutive due to net losses in those periods. For the three month period ending September 30, 2019, the calculation of the weighted average number of common shares outstanding–diluted included the common stock equivalents of the outstanding stock options.

Note 4 - Stock Options

Note 4 - Stock Options	9 Months Ended
	Sep. 30, 2019
Notes
Note 4 - Stock Options	NOTE 4 - STOCK OPTIONS As of September 30, 2019, the Company had outstanding stock options which have been granted periodically to individual employees and directors with no less than three years of continuous tenure with the Company. The Board of Directors did not issue stock options during the nine month period ended September 30, 2019. A summary of option activity during the quarter ended September 30, 2019 is as follows: Number Outstanding Weighted-Average Exercise Price Per Share Weighted-Average Remaining Life (Years) Approximate Aggregate Intrinsic Value Outstanding and Exercisable at December 31, 2018 120,000 $ 0.40 Granted - - Expired - - Outstanding and Exercisable at September 30, 2019 120,000 $ 0.40 1.1 $ 2,400

Note 5 - Revenue

Note 5 - Revenue	9 Months Ended
	Sep. 30, 2019
Notes
Note 5 - Revenue	NOTE 5 – REVENUE The Company’s product revenues are derived from sales of industrial wireless products and accessories such as antennas, power supplies and cable assemblies. The Company also provides direct site support and engineering services to customers, such as repair and upgrade of its products. During the three-month period ended September 30, 2019 and 2018, the Company’s revenues from products sales were $369,615 and $293,154, respectively. Revenues from site support and engineering services were $2,300 and $5,849 respectively, over the same periods. As of September 30, 2019, year to date sales from products increased to $1,106,066 as compared to $1,062,346 as of September 30, 2019 and 2018. Revenues from site support and engineering services for the nine months ended September 30, 2019 and 2018, were $35,277 and $16,398, respectively. The Company’s customers, to which trade credit terms are extended, consist of United States and local governments and foreign and domestic companies. Domestic sales for the three-month period ended September 30, 2019 were $348,419 compared to $271,976 in 2018. Sales to foreign customers for the three-month period ended September 30, 2019 were $23,496 compared to $27,027 in 2018. Domestic sales for the nine-month period ended September 30, 2019 were $978,290 compared to $1,021,153 in 2018. Sales to foreign customers for the nine-month period ended September 30, 2019 were $163,053 compared to $57,591 in 2018. For the three-month period ended September 30, 2019, sales to two customers represented more than 10% of total revenue; three customers represented more than 10% of total revenue for the same period in 2018. 2019 Sales 2019 % of Total Sales 2018 Sales 2018 % of Total Sales Domestic customer A $70,035 20% $43,616 15% Domestic customer B $44,341 12% For the nine-month period ended September 30, 2019, sales to one customer represented more than 10% of total revenue, one customer represented more than 10% of total revenue for the same period in 2018. 2019 Sales 2019 % of Total Sales 2018 Sales 2018 % of Total Sales Domestic customer A 152,450 13% 240,659 22% As of September 30, 2019 and 2018, the Company had a sales order backlog of $6,691 and $425, respectively.

Note 6 - Leases

Note 6 - Leases	9 Months Ended
	Sep. 30, 2019
Notes
Note 6 - Leases	NOTE 6 - LEASES In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842). The update modifies the classification criteria and requires lessees to recognize the assets and liabilities on the balance sheet for most leases. The update is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company implemented this standard effective January 1, 2019. Upon implementation of the new guidance, the Company recognized a liability and right-of-use asset of $91,637 as of January 1, 2019 for its one operating lease. To calculate the liability and right to use asset, the Company utilized a 4.0% incremental borrowing rate to discount the future rent payments and remaining lease term of 1.75 years. The Company leases its facilities from a port authority for $5,542 per month for three years, expiring in September 2020, with annual increases based upon the Consumer Price Index. The original lease was effective October 1, 2014 and contained a three-year renewal option and a provision for an annual increase of 2% per year, plus Leasehold Tax of 12.84%. On September 5, 2017, the Company exercised the three-year option. The first year of this option was not subject to the 2% increase. The current lease does not contain the option to extend the lease. However, the Company believes that a new lease agreement will be signed prior to the expiration of the current lease. At September 30, 2019, the remaining lease term is one year. For the three month and nine-month periods ended September 30, 2019 and 2018, lease expenses of $16,627 and $16,335, and $49,880 and $49,005 respectively, are included in the following expense classifications on the statement of operations: Three Months ended September 30, 2019 Three Months ended September 30, 2018 Nine Months ended September 30, 2019 Nine Months ended September 30, 2018 Cost of sales $ 3,325 $ 3,267 $ 9,976 $ 9,801 General and administrative 3,325 3,267 9,976 9,801 Research and development 3,325 3,267 9,976 9,801 Marketing and sales 6,652 6,534 19,952 19,602 Total $ 16,627 $ 16,335 $ 49,880 $ 49,005 As of September 30, 2019, total future lease payments are as follows: For the 12 months ended September 30, 2019 $ 14,993 2020 44,981 Total 59,974 Less imputed interest (7,119) Net lease liability 52,855 Current portion 52,855 Long-term portion $ -

Note 7 - Stock Repurchase

Note 7 - Stock Repurchase	9 Months Ended
	Sep. 30, 2019
Notes
Note 7 - Stock Repurchase	NOTE 7 – STOCK REPURCHASE On January 13, 2016, the Company’s Board of Directors approved a resolution authorizing the repurchase of up to $100,000 of the Company’s common stock at the price of $0.38 per share. The Company’s share repurchase program does not obligate it to acquire any specific number of shares. On March 2, 2016, the Company’s Board of Director approved a resolution authorizing the repurchase of an additional $150,000 of the Company’s common stock at the price of $0.38 per share. Under the program (the “Stock Repurchase Plan”), shares may be repurchased in open market transactions, complying with Rule 10b5-1 and Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Shares repurchased are retired. During the three-month period ended September 30, 2019 and 2018, no shares were repurchased. During the nine-month period ended September 30, 2019, the Company repurchased 39,246 shares for $14,920; no shares were repurchased in the nine month period ended September 30, 2018. Since inception of the Stock Repurchase Plan, the Company has repurchased 212,165 shares for a total of $80,622 through September 30, 2019 and $169,378 of the original $250,000 approved by the board remains to be utilized for share repurchases.

Note 2 - Inventories_ Schedule

Note 2 - Inventories: Schedule of Inventory, Current (Tables)	9 Months Ended
	Sep. 30, 2019
Tables/Schedules
Schedule of Inventory, Current	September 30, 2019 December 31, 2018 Parts $ 127,049 $ 133,809 Work in progress 289,679 243,081 Finished goods 294,919 338,105 Total inventories $ 711,647 $ 714,995

Note 4 - Stock Options_ Schedul

Note 4 - Stock Options: Schedule of Stock Options Roll Forward (Tables)	9 Months Ended
	Sep. 30, 2019
Tables/Schedules
Schedule of Stock Options Roll Forward	Number Outstanding Weighted-Average Exercise Price Per Share Weighted-Average Remaining Life (Years) Approximate Aggregate Intrinsic Value Outstanding and Exercisable at December 31, 2018 120,000 $ 0.40 Granted - - Expired - - Outstanding and Exercisable at September 30, 2019 120,000 $ 0.40 1.1 $ 2,400

Note 5 - Revenue_ Revenue from

Note 5 - Revenue: Revenue from External Customers by Products and Services (Tables)	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Tables/Schedules
Revenue from External Customers by Products and Services	2019 Sales 2019 % of Total Sales 2018 Sales 2018 % of Total Sales Domestic customer A $70,035 20% $43,616 15% Domestic customer B $44,341 12%	2019 Sales 2019 % of Total Sales 2018 Sales 2018 % of Total Sales Domestic customer A 152,450 13% 240,659 22%

Note 6 - Leases_ Schedule of di

Note 6 - Leases: Schedule of distribution of lease expense (Tables)	9 Months Ended
	Sep. 30, 2019
Tables/Schedules
Schedule of distribution of lease expense	Three Months ended September 30, 2019 Three Months ended September 30, 2018 Nine Months ended September 30, 2019 Nine Months ended September 30, 2018 Cost of sales $ 3,325 $ 3,267 $ 9,976 $ 9,801 General and administrative 3,325 3,267 9,976 9,801 Research and development 3,325 3,267 9,976 9,801 Marketing and sales 6,652 6,534 19,952 19,602 Total $ 16,627 $ 16,335 $ 49,880 $ 49,005

Note 6 - Leases_ Future Less Pa

Note 6 - Leases: Future Less Payments (Tables)	9 Months Ended
	Sep. 30, 2019
Tables/Schedules
Future Less Payments	For the 12 months ended September 30, 2019 $ 14,993 2020 44,981 Total 59,974 Less imputed interest (7,119) Net lease liability 52,855 Current portion 52,855 Long-term portion $ -

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation (Details)	9 Months Ended
	Sep. 30, 2019
Details
New Accounting Pronouncements and Changes in Accounting Principles	Financial
Description of New Accounting Pronouncements Not yet Adopted	FASB

Note 2 - Inventories_ Schedul_2

Note 2 - Inventories: Schedule of Inventory, Current (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Details
Inventory, Parts and Components, Net of Reserves	$ 127,049	$ 133,809
Inventory, Work in Process, Gross	289,679	243,081
Inventory, Finished Goods, Gross	294,919	338,105
Inventories	$ 711,647	$ 714,995

Note 4 - Stock Options_ Sched_2

Note 4 - Stock Options: Schedule of Stock Options Roll Forward (Details)	Sep. 30, 2019USD ($)$ / sharesshares	Dec. 31, 2018$ / sharesshares
Details
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares	120,000	120,000
Weighted Average Exercise Price | $ / shares	$ 0.40	$ 0.40
Weighted Average Remaining Life Years	1.1
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $	$ 2,400

Note 5 - Revenue (Details)

Note 5 - Revenue (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting Information, Description of Products and Services			The Company’s product revenues are derived from sales of industrial wireless products and accessories such as antennas, power supplies and cable assemblies. The Company also provides direct site support and engineering services to customers, such as repair and upgrade of its products
Sales, net	$ 371,915	$ 299,003	$ 1,141,343	$ 1,078,744
Domestic sales revenues	348,419	271,976	978,290	1,021,153
Foreign sales	23,496	27,027	163,053	57,591
Manufactured Product, Other
Sales, net	369,615	293,154	1,106,066	1,062,346
Technology Service
Sales, net	$ 2,300	$ 5,849	$ 35,277	$ 16,398

Note 5 - Revenue_ Revenue fro_2

Note 5 - Revenue: Revenue from External Customers by Products and Services (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Details
Customer A	$ 70,035	$ 43,616	$ 152,450	$ 240,659
Customer A	20.00%	15.00%	13.00%	22.00%
Customer B	$ 44,341
Customer B	12.00%

Note 6 - Leases (Details)

Note 6 - Leases (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Details
Description of operating lease			The Company leases its facilities from a port authority for $5,542 per month for three years, expiring in September 2020, with annual increases based upon the Consumer Price Index.
Operating lease expense distributed	$ 16,627	$ 16,335	$ 49,880	$ 49,005

Note 6 - Leases_ Schedule of _2

Note 6 - Leases: Schedule of distribution of lease expense (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Details
Cost of sales, lease expense	$ 3,325	$ 3,267	$ 9,976	$ 9,801
Cost of sales, general and administrative	3,325	3,267	9,976	9,801
Cost of sales, research and development	3,325	3,267	9,976	9,801
Cost of sales, marketing and sales	6,652	6,534	19,952	19,602
Operating lease expense distributied	$ 16,627	$ 16,335	$ 49,880	$ 49,005

Note 6 - Leases_ Future Less _2

Note 6 - Leases: Future Less Payments (Details) - USD ($)		Sep. 30, 2019	Dec. 31, 2018
Details
Operating Leases, Future Minimum Payments Due, Next Twelve Months		$ 14,993
Operating Leases, Future Minimum Payments, Due in Two Years		44,981
Operating Leases, Future Minimum Payments Due		59,974
Less imputed interest		(7,119)
Right to use - Lease, net of amortization	[1]	52,855	$ 0
Lease liability, current portion	[1]	52,855	$ 0
Lease liability, long-term portion payable	[1]	$ 0
[1]	NOTE 6

Note 7 - Stock Repurchase (Deta

Note 7 - Stock Repurchase (Details) - USD ($)	3 Months Ended	9 Months Ended	45 Months Ended
	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2019	Jan. 13, 2016
Details
Stock repurchase program		On January 13, 2016, the Company’s Board of Directors approved a resolution authorizing the repurchase of up to $100,000 of the Company’s common stock at the price of $0.38 per share. The Company’s share repurchase program does not obligate it to acquire any specific number of shares. On March 2, 2016, the Company’s Board of Director approved a resolution authorizing the repurchase of an additional $150,000 of the Company’s common stock at the price of $0.38 per share.
Common stock repurchased		39,246	212,165
Common stock repurchased	$ 14,920	$ 14,920	$ 80,622
Original Share Repurchase Authorized, Amount Remaining		$ 169,378	$ 169,378
Original Share Repurchase Authorized				$ 250,000