Electronic Systems Technology (ELST) 10-Q 29 Oct 21 2021 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Oct. 22, 2021
Details
Registrant CIK	0000752294
Fiscal Year End	--12-31
Document Type	10-Q
Document Period End Date	Sep. 30, 2021
Entity Registrant Name	ELECTRONIC SYSTEMS TECHNOLOGY INC
Entity Incorporation, State or Country Code	WA
Entity File Number	000-27793
Entity Tax Identification Number	91-1238077
Entity Address, Address Line One	415 N. Roosevelt St. STE 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
Trading Symbol	ELST
Security Exchange Name	NONE
Entity Current Reporting Status	Yes
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		4,946,502
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Document Quarterly Report	true
Document Transition Report	false

Electronic Systems Technology,

Electronic Systems Technology, Inc. Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 946,320	$ 308,110
Certificates of deposit	250,000	499,999
Accounts receivable, net	91,390	288,884
Inventories	534,278	631,707
Prepaid expenses	30,298	28,087
Accrued interest receivable	1,192	4,659
Total current assets	1,853,478	1,761,446
Property and equipment, net of depreciation	1,578	5,445
Right to use - Lease, net of amortization	38,372	65,230
Total assets	1,893,428	1,832,121
Current liabilities
Accounts payable	80,140	21,113
Accrued wages and bonus	24,907	2,699
Accrued vacation pay	20,872	17,631
Lease liability, current portion	39,005	36,753
Other accrued liabilities	6,736	6,720
CARES Act loan payable	13,911	0
Total current liabilities	185,571	84,916
Total liabilities	185,571	285,263
Stockholders' equity
Common stock, $0.001 par value 50,000,000 shares authorized 4,946,502 and 4,946,502 shares issued and outstanding respectively	4,947	4,947
Additional paid-in capital	932,412	931,442
Retained earnings	770,498	610,469
Total stockholders' equity	1,707,857	1,546,858
Total liabilities and stockholders' equity	1,893,428	1,832,121
Long-term liabilities
CARES Act loan payable	0	171,712
Lease liability	0	28,635
Total Long-term liabilities	$ 0	$ 200,347

Electronic Systems Technology_2

Electronic Systems Technology, Inc. Balance Sheets (Unaudited) - Parenthetical - $ / shares	Sep. 30, 2021	Dec. 31, 2020
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	4,946,502

Electronic Systems Technology_3

Electronic Systems Technology, Inc. Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Details
SALES - NET	$ 256,069	$ 202,869	$ 1,137,848	$ 722,333
Cost of sales	(152,834)	(105,410)	(546,568)	(387,035)
GROSS PROFIT	103,235	97,459	591,280	335,298
Operating Expenses
General and administrative	55,574	55,761	215,528	221,431
Research and development	46,534	49,739	153,483	154,850
Marketing and sales	122,960	90,229	344,594	264,420
Total Operating Expense	225,068	195,729	713,605	640,701
Operating Income (Loss)	(121,833)	(98,270)	(122,325)	(305,403)
Other income
Grant income (NOTE 8)	0	0	0	9,000
Gain on forgiveness of CARES Act loan	130,255	0	280,373	0
Interest income	555	2,444	1,981	8,396
TOTAL OTHER INCOME	130,810	2,444	282,354	17,396
NET INCOME (LOSS) BEFORE INCOME TAX	8,977	(95,826)	160,029	(288,007)
Benefit (provision) for income tax	0	0	0	0
Net Income (Loss)	$ 8,977	$ (95,826)	$ 160,029	$ (288,007)
Basic and diluted earnings per share	$ 0	$ (0.02)	$ 0.03	$ (0.06)
Basic and diluted weighted average shares used in computing income (loss) per share:	4,946,502	4,946,502	4,946,502	4,946,502

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, 2019	$ 4,947	$ 929,159	$ 813,188	$ 1,747,294
Shares outstanding at Dec. 31, 2019	4,946,502
Net income (loss)	$ 0	0	(110,306)	(110,306)
Stock based compensation	$ 0	2,282	0	2,282
Shares outstanding at Mar. 31, 2020	4,946,502
Equity balance at Mar. 31, 2020	$ 4,947	931,441	702,882	1,639,270
Equity balance at Dec. 31, 2019	$ 4,947	929,159	813,188	1,747,294
Shares outstanding at Dec. 31, 2019	4,946,502
Stock based compensation				2,282
Shares outstanding at Sep. 30, 2020	4,946,502
Equity balance at Sep. 30, 2020	$ 4,947	931,441	525,181	1,461,569
Equity balance at Mar. 31, 2020	$ 4,947	931,441	702,882	1,639,270
Shares outstanding at Mar. 31, 2020	4,946,502
Net income (loss)	$ 0	0	(81,875)	(81,875)
Shares outstanding at Jun. 30, 2020	4,946,502
Equity balance at Jun. 30, 2020	$ 4,947	931,441	621,007	1,557,395
Net income (loss)	$ 0	0	(95,826)	(95,826)
Shares outstanding at Sep. 30, 2020	4,946,502
Equity balance at Sep. 30, 2020	$ 4,947	931,441	525,181	1,461,569
Equity balance at Dec. 31, 2020	$ 4,947	931,442	610,469	1,546,858
Shares outstanding at Dec. 31, 2020	4,946,502
Net income (loss)	$ 0	0	4,682	4,682
Shares outstanding at Mar. 31, 2021	4,946,502
Equity balance at Mar. 31, 2021	$ 4,947	931,442	615,151	1,551,540
Equity balance at Dec. 31, 2020	$ 4,947	931,442	610,469	1,546,858
Shares outstanding at Dec. 31, 2020	4,946,502
Stock based compensation				970
Shares outstanding at Sep. 30, 2021	4,946,502
Equity balance at Sep. 30, 2021	$ 4,947	932,412	770,498	1,707,857
Equity balance at Mar. 31, 2021	$ 4,947	931,442	615,151	1,551,540
Shares outstanding at Mar. 31, 2021	4,946,502
Net income (loss)	$ 0	0	146,370	146,370
Shares outstanding at Jun. 30, 2021	4,946,502
Equity balance at Jun. 30, 2021	$ 4,947	931,442	761,521	1,697,910
Net income (loss)	0	0	8,977	8,977
Stock based compensation	$ 0	970	0	970
Shares outstanding at Sep. 30, 2021	4,946,502
Equity balance at Sep. 30, 2021	$ 4,947	$ 932,412	$ 770,498	$ 1,707,857

ELECTRONIC SYSTEMS TECHNOLOGY_5

ELECTRONIC SYSTEMS TECHNOLOGY, INC. STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities
Net loss	$ 160,029	$ (288,007)
Noncash items included in net income (loss)
Depreciation	3,867	5,214
Share based compensation	970	2,282
Gain on forgiveness of CARES Act loan	(280,373)	0
Changes in operating assets and liabilities:
Accounts receivable, net	197,494	(39,425)
Inventories	97,428	41,003
Accrued interest receivable	3,467	(477)
Prepaid expenses	(2,209)	(5,150)
Accounts payable	59,027	(79,713)
Other accrued liabilities	20,231	10,964
NET CASH PROVIDED (USED) IN OPERATING ACTIVITIES	259,931	(353,309)
CASH FLOWS FROM INVESTING ACTIVITIES:
Certificates of deposit redeemed	249,999	600,001
Certificates of deposit purchased	0	(550,000)
NET CASH PROVIDED FROM INVESTING ACTIVITIES	249,999	50,001
CASH FLOWS USED IN FINANCING ACTIVITIES:
Principal payments on CARES Act loan payable (round 1)	(1,975)	0
Proceeds from CARES Act loan payable (rounds 1 and 2)	130,255	171,712
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES	128,280	171,712
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS	638,210	(131,596)
Cash and cash equivalents at beginning of period	308,110	274,936
Cash and cash equivalents at end of period	$ 946,320	$ 143,340

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	9 Months Ended
	Sep. 30, 2021
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, 2021, and its results of operations, cash flows, and changes in stockholders’ equity for the three months and nine months ended September 30, 2021 and 2020. The balance sheet at December 31, 2020 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, 2020. The results of operations for the three month and nine-month period ended September 30, 2021 are not necessarily indicative of the results expected for the full fiscal year or for any other fiscal period. The Company estimates that for 2021 the anticipated effective annual federal income tax rate will be 0%. Accounting Standards Updates In August 2020, the Financial Accounting Standards Board (FASB) issued (Accounting Standards Update (ASU) No. 2019-12 Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The update is to address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. The update is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years and with early adoption permitted. Management does not expect adoption of this update to have a material impact on the Company’s financial statements. 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, 2021
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, 2021 December 31, 2020 Parts $ 84,001 $ 99,303 Work in progress 194,713 275,230 Finished goods 255,564 257,174 Total inventory $ 534,278 631,707

Note 3 - Earnings (Loss) Per Sh

Note 3 - Earnings (Loss) Per Share	9 Months Ended
	Sep. 30, 2021
Notes
Note 3 - Earnings (Loss) Per Share	NOTE 3 - EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share excludes dilution and is computed by dividing income (loss) available to common stockholders by the weighted-average number of shares of Common Stock outstanding for the period. Diluted earnings (loss) per share reflects potential dilution occurring if securities or other contracts to issue Common Stock were exercised or converted into Common Stock or resulted in the issuance of Common Stock that then shared in the earnings of the Company. At September 30, 2021 and 2020, the Company had 240,000 and 180,000 outstanding stock options, respectively, that could have a dilutive effect on future periods’ net income. The stock options were not included in the calculation of diluted earnings per share for either period as they were anti-dilutive.

Note 4 - Stock Options

Note 4 - Stock Options	9 Months Ended
	Sep. 30, 2021
Notes
Note 4 - Stock Options	NOTE 4 - STOCK OPTIONS The Company has outstanding stock options, which have been granted periodically to individual employees and directors. On March 13, 2020, the Board of Directors canceled all 120,000 outstanding stock options that were granted on August 7, 2017 and due to expire on August 6, 2020. In addition, on that date, the Board of Directors granted 180,000 options to employees. The new options have an exercise price of $0.40, a term of 5 years, and vested immediately. The fair value of the options was determined using the Black-Scholes model using the following variables: stock price of $0.40, volatility of 79.27%, expected term of 5 years with a forfeiture rate of 95%, and a discount factor of 0.72%. Share based compensation of $2,282 was recognized during the nine-month period ended September 30, 2020. On September 2, 2021, the Board of Directors granted 60,000 options to employees. The new options have an exercise price of $0.40, a term of 5 years, and vest immediately. The fair value of the options was determined using the Black-Scholes model using the following variables: stock price of $0.40, volatility of 107.7%, expected term of 5 years with a forfeiture rate of 95%, and a discount factor of 0.77%. Share based compensation of $970 was recognized during the three and nine month periods ended September 30, 2021. As of September 30, 2021, there were 240,000 options outstanding with a weighted average exercise price of $0.40 per share, a weighted average remaining life of 3.9 years and had intrinsic value of $14,400.

Note 5 - Revenue

Note 5 - Revenue	9 Months Ended
	Sep. 30, 2021
Notes
Note 5 - Revenue	NOTE 5 – REVENUE The Company product revenue includes 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, 2021 and 2020, the Company’s revenue from products sales was $230,869 and $195,119, respectively. Revenue from site support and engineering services was $25,200 and $7,750 respectively, over the same periods. During the nine-month period ended September 30, 2021 and 2020, the Company’s revenue from products sales was $1,100,948 and $692,483, respectively. Revenue from site support and engineering services was $36,900 and $29,850 respectively, over the same periods. 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 of products and services for the three-month period ended September 30, 2021 and September 30, 2020 were $227,001 and $193,158, respectively. Sales to foreign customers for the three-month period ended September 30, 2021 and September 30, 2020 were $29,068 and $9,711, respectively. NOTE 5 – REVENUE (continued) Domestic sales for the nine-month period ended September 30, 2021 and September 30, 2020 were $1,021,331 and $647,397, respectively. Sales to foreign customers for the nine-month period ended September 30, 2021 and September 30, 2020 were $116,517 and $74,936, respectively. For the three-month period ended September 30, 2021, sales to one customer represented more than 10% of total revenue, four customers represented more than 10% of total revenue for the same period in 2020. 2021 Sales 2021 %age of Total Sales 2020 Sales 2020 %age of Total Sales Domestic customer A $ 70,505 28% $ 26,875 13% Domestic customer B - - 25,640 13% Domestic customer C - - 24,864 12% Domestic customer D - - 22,093 11% For the nine-month period ended September 30, 2021, sales to two customers represented more than 10% of total revenue, one customer represented more than 10% of total revenue for the same period in 2020. 2021 Sales 2021 %age of Total Sales 2020 Sales 2020 %age of Total Sales Domestic customer A $203,623 18% $82,566 11% Domestic customer B 129,798 11% - - As of September 30, 2021 and 2020, the Company had a sales order backlog of $93,059 and $3,400, respectively.

Note 6 - Leases

Note 6 - Leases	9 Months Ended
	Sep. 30, 2021
Notes
Note 6 - Leases	NOTE 6 - LEASES On September 23, 2020, the Company signed a new two-year lease for its facilities. The base lease is $3,162 and $3,267 per month for years one and two, respectively. There is a leasehold tax applied to the base lease at 12.84%. The Company has the right to terminate the lease with 90 days’ notice. There is no renewal clause contained in the current lease. Upon signing the lease, the Company recognized a lease liability and right of use asset of $74,005 based on the two-year payment stream discounted using an estimated incremental borrowing rate of 4.0%. At September 30, 2021, the remaining lease term is twelve months. Prior to the new lease on September 23, 2020, the Company’s lease for its facilities was for $5,639 per month. For the three month and nine-month periods ended September 30, 2021 and 2020, lease expenses of $10,862 and $16,918, and $32,586 and $50,934 respectively, are included in the following expense classifications on the statement of operations: NOTE 6 – LEASES (continued) For the three-month period ending September 30, 2021 2020 Cost of sales Operating expenses Total Cost of sales Operating expenses Total Base rent pursuant to lease agreement $ 5,396 $ 4,248 $ 9,644 $ 2,998 $ 11,995 $ 14,993 Variable lease costs 682 536 1,218 385 1,540 1,925 Total lease costs $ 6,078 $ 4,784 $ 10,862 $ 3,383 $ 13,535 $ 16,918 For the nine-month period ending September 30, 2021 2020 Cost of sales Operating expenses Total Cost of sales Operating expenses Total Base rent pursuant to lease agreement $ 16,190 $ 12,742 $ 28,932 $ 8,996 $ 36,163 $ 45,159 Variable lease costs 2,045 1,609 3,654 1,155 4,620 5,775 Total lease costs $ 18,235 $ 14,351 $ 32,586 $ 10,151 $ 40,783 $ 50,934 As of September 30, 2021, total future lease payments are as follows: For the 12 months ending September 30, 2021 and 2022 2021 $ 9,802 2022 29,407 Total 39,209 Less imputed interest (204) Net lease liability 39,005 Current portion 39,005 Long-term portion $ -

Note 7 - Stock Repurchase

Note 7 - Stock Repurchase	9 Months Ended
	Sep. 30, 2021
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. Since inception of the Stock Repurchase Plan, the Company has repurchased 212,165 shares for a total of $80,622 through September 30, 2021 and $169,378 of the original $250,000 approved by the board remains. On April 23, 2020 repurchases were suspended indefinitely.

Note 8 - Cares Act Loans Payabl

Note 8 - Cares Act Loans Payable	9 Months Ended
	Sep. 30, 2021
Notes
Note 8 - Cares Act Loans Payable	NOTE 8 – CARES ACT LOANS PAYABLE On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (the “CARES Act”) Act was signed into United States law. In April 2020, the Company received a loan of $171,712 pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I, Section 1102 and 1106 of the CARES Act. The loan, which was in the form of a promissory note, has a maturity date of April 13, 2022 and bears interest at a rate of 1% per annum. $150,118 of this loan was forgiven in June 2021 which was recognized as a gain on forgiveness of CARES Act loan in the second quarter of 2021. A balance of $21,594 remained after the forgiveness. As of September 30, 2021, the balance remaining was $13,911. Monthly payments of $1,994 are due for the next seven months. In February 2021, the Company received a second loan of $130,255 pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I, Section 1102 and 1106 of the CARES Act. The loan, which was in the form of a promissory note, has a maturity date of February 21, 2023 and bears interest at a rate of 1% per annum. The Note may be prepaid by the Company at any time prior to maturity with no prepayment penalties. Under the terms of the PPP, certain amounts of the loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. Qualifying expenses include payroll costs, costs used to continue group health care benefits, mortgage payments, rent, and utilities. As of September 30, 2021, the Company has used funds from the loan to pay qualifying expenses. The second loan was forgiven and the Company recognized gain on forgiveness of CARES Act loan of $130,255 during the three month period ended September 30, 2021.

Note 2 - Inventories_ Schedule

Note 2 - Inventories: Schedule of Inventory, Current (Tables)	9 Months Ended
	Sep. 30, 2021
Tables/Schedules
Schedule of Inventory, Current	September 30, 2021 December 31, 2020 Parts $ 84,001 $ 99,303 Work in progress 194,713 275,230 Finished goods 255,564 257,174 Total inventory $ 534,278 631,707

Note 5 - Revenue_ Schedule of R

Note 5 - Revenue: Schedule of Revenue by source (Tables)	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Tables/Schedules
Schedule of Revenue by source	2021 Sales 2021 %age of Total Sales 2020 Sales 2020 %age of Total Sales Domestic customer A $ 70,505 28% $ 26,875 13% Domestic customer B - - 25,640 13% Domestic customer C - - 24,864 12% Domestic customer D - - 22,093 11%	2021 Sales 2021 %age of Total Sales 2020 Sales 2020 %age of Total Sales Domestic customer A $203,623 18% $82,566 11% Domestic customer B 129,798 11% - -

Note 6 - Leases_ Schedule of di

Note 6 - Leases: Schedule of distribution of lease expense (Tables)	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Tables/Schedules
Schedule of distribution of lease expense	For the three-month period ending September 30, 2021 2020 Cost of sales Operating expenses Total Cost of sales Operating expenses Total Base rent pursuant to lease agreement $ 5,396 $ 4,248 $ 9,644 $ 2,998 $ 11,995 $ 14,993 Variable lease costs 682 536 1,218 385 1,540 1,925 Total lease costs $ 6,078 $ 4,784 $ 10,862 $ 3,383 $ 13,535 $ 16,918	For the nine-month period ending September 30, 2021 2020 Cost of sales Operating expenses Total Cost of sales Operating expenses Total Base rent pursuant to lease agreement $ 16,190 $ 12,742 $ 28,932 $ 8,996 $ 36,163 $ 45,159 Variable lease costs 2,045 1,609 3,654 1,155 4,620 5,775 Total lease costs $ 18,235 $ 14,351 $ 32,586 $ 10,151 $ 40,783 $ 50,934

Note 6 - Leases_ Future Less Pa

Note 6 - Leases: Future Less Payments (Tables)	9 Months Ended
	Sep. 30, 2021
Tables/Schedules
Future Less Payments	For the 12 months ending September 30, 2021 and 2022 2021 $ 9,802 2022 29,407 Total 39,209 Less imputed interest (204) Net lease liability 39,005 Current portion 39,005 Long-term portion $ -

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation (Details)	9 Months Ended
	Sep. 30, 2021
Details
Accounting Standards Update and Change in Accounting Principle	In August 2020, the Financial Accounting Standards Board (FASB) issued (Accounting Standards Update (ASU) No. 2019-12 Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The update is to address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. The update is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years and with early adoption permitted. Management does not expect adoption of this update to have a material impact on the Company’s financial statements.

Note 2 - Inventories_ Schedul_2

Note 2 - Inventories: Schedule of Inventory, Current (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Details
Inventory, Parts and Components, Net of Reserves	$ 84,001	$ 99,303
Inventory, Work in Process, Gross	194,713	275,230
Inventory, Finished Goods, Gross	255,564	257,174
Inventories	$ 534,278	$ 631,707

Note 3 - Earnings (Loss) Per _2

Note 3 - Earnings (Loss) Per Share (Details) - shares	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Details
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	240,000	180,000

Note 4 - Stock Options (Details

Note 4 - Stock Options (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Details
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures			60,000	180,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price			$ 0.40	$ 0.40
Sale of Stock, Price Per Share	$ 0.40		$ 0.40	$ 0.40
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate			107.70%	79.27%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term, Simplified Method			5	5
Expected Forfeiture Rate			95.00%	95.00%
Fair value assumptions discount rate			0.77%	0.72%
Share based compensation	$ 970	$ 2,282	$ 970	$ 2,282
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	240,000		240,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 0.40		$ 0.40
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	$ 14,400		$ 14,400

Note 5 - Revenue (Details)

Note 5 - Revenue (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting Information, Description of Products and Services			The Company product revenue includes 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.
Product Sales	$ 230,869	$ 195,119	$ 1,100,948	$ 692,483
Site Support Sales	25,200	7,750	36,900	29,850
SALES - NET	256,069	202,869	1,137,848	722,333
Sales order backlog			93,059	3,400
Domestic
SALES - NET	227,001	193,158	1,021,331	647,397
Foreign
SALES - NET	$ 29,068	$ 9,711	$ 116,517	$ 74,936

Note 5 - Revenue_ Schedule of_2

Note 5 - Revenue: Schedule of Revenue by source (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Domestic customer A
Sales to customers in excess of 10 percent	70,505	26,875	203,623	82,566
Customers in excess of 10 percent, portion of total sales	28.00%	13.00%	18.00%	11.00%
Domestic customer B
Sales to customers in excess of 10 percent		25,640	129,798
Customers in excess of 10 percent, portion of total sales		13.00%	11.00%
Domestic customer C
Sales to customers in excess of 10 percent		24,864
Customers in excess of 10 percent, portion of total sales		12.00%
Domestic customer D
Sales to customers in excess of 10 percent		22,093
Customers in excess of 10 percent, portion of total sales		11.00%

Note 6 - Leases (Details)

Note 6 - Leases (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Leasehold tax percentage				12.84%
Leasehold tax	$ 74,005		$ 74,005
Prior year monthly lease expense				$ 5,639
Operating lease expense distributied	$ 10,862	$ 16,918	32,586	$ 50,934
Monthly rate year one
Operating Lease, Cost			3,162
Monthly rate year two
Operating Lease, Cost			$ 3,267

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, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Operating lease expense distributied	$ 10,862	$ 16,918	$ 32,586	$ 50,934
Cost of sales
Base rent pursuant to lease agreement	5,396	2,998	16,190	8,996
Variable lease costs	682	385	2,045	1,155
Operating lease expense distributied	6,078	3,383	18,235	10,151
Operating expenses
Base rent pursuant to lease agreement	4,248	11,995	12,742	36,163
Variable lease costs	536	1,540	1,609	4,620
Operating lease expense distributied	4,784	13,535	14,351	40,783
Total
Base rent pursuant to lease agreement	9,644	14,993	28,932	45,159
Variable lease costs	1,218	1,925	3,654	5,775
Operating lease expense distributied	$ 10,862	$ 16,918	$ 32,586	$ 50,934

Note 6 - Leases_ Future Less _2

Note 6 - Leases: Future Less Payments (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Details
Capital Leases, Future Minimum Payments Due in Two Years	$ 9,802
Capital Leases, Future Minimum Payments Due in Three Years	29,407
Capital Leases, Future Minimum Payments Due	39,209
Unrecorded Unconditional Purchase Obligation, Imputed Interest	(204)
Net Investment in Lease, before Allowance for Credit Loss, Current	39,005
Lease liability, current portion	39,005	$ 36,753
Lease liability	$ 0	$ 28,635

Note 7 - Stock Repurchase (Deta

Note 7 - Stock Repurchase (Details) - USD ($)	9 Months Ended	66 Months Ended	69 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Sep. 30, 2021	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.
Common stock repurchased		212,165
Stock Repurchased During Period, Value			$ 80,622
Original Share Repurchase Authorized				$ 250,000

Note 8 - Cares Act Loans Paya_2

Note 8 - Cares Act Loans Payable (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
CARES Act loan payable	$ 0	$ 171,712
PPP loan 1
CARES Act loan payable		$ 171,712
PPP loan 2
CARES Act loan payable	$ 130,255