Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 19, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-27793 | |
Entity Registrant Name | ELECTRONIC SYSTEMS TECHNOLOGY, INC. | |
Entity Central Index Key | 0000752294 | |
Entity Tax Identification Number | 91-1238077 | |
Entity Incorporation, State or Country Code | WA | |
Entity Address, Address Line One | 415 N. Roosevelt St. | |
Entity Address, Address Line Two | 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 | |
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 |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 592,417 | $ 751,118 |
Certificates of deposit | 251,699 | 251,699 |
Accounts receivable, net | 107,770 | 141,394 |
Inventories | 729,308 | 725,478 |
Prepaid expenses | 36,896 | 42,627 |
Employee retention tax credit receivable (NOTE 7) | 63,000 | 63,000 |
Accrued interest receivable | 682 | 808 |
Total current assets | 1,781,772 | 1,976,124 |
Property and equipment, net of depreciation | 9,876 | 914 |
Right to use – Lease, net of amortization (NOTE 6) | 59,984 | 69,419 |
Total assets | 1,851,632 | 2,046,457 |
Current liabilities | ||
Accounts payable | 64,084 | 138,996 |
Accrued wages | 2,904 | 24,777 |
Operating lease liability, current portion (NOTE 6) | 40,100 | 39,120 |
Accrued vacation pay | 22,220 | 16,846 |
Other accrued liabilities | 6,900 | 8,913 |
Total current liabilities | 136,208 | 228,652 |
Long-Term Liabilities | ||
Operating lease liability (NOTE 6) | 20,200 | 30,457 |
Total liabilities | 156,408 | 259,109 |
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 | 932,412 |
Retained earnings | 757,865 | 849,989 |
Total stockholders' equity | 1,695,224 | 1,787,348 |
Total liabilities and stockholders' equity | $ 1,851,632 | $ 2,046,457 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
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 |
Common Stock, Shares, Outstanding | 4,946,502 | 4,946,502 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
SALES - NET | $ 305,089 | $ 472,143 |
COST OF SALES | (139,560) | (209,883) |
GROSS PROFIT | 165,529 | 262,260 |
OPERATING EXPENSES | ||
General and administrative | 84,765 | 84,776 |
Research and development | 28,663 | 45,777 |
Marketing and sales | 148,227 | 137,159 |
Total operating expenses | 261,655 | 267,712 |
OPERATING LOSS | (96,126) | (5,452) |
OTHER INCOME | ||
Interest income | 4,002 | 491 |
Total other income | 4,002 | 491 |
NET LOSS BEFORE INCOME TAX | (92,124) | (4,961) |
Benefit (provision) for income tax | ||
NET LOSS | $ (92,124) | $ (4,961) |
CONDENSED STATEMENTS OF OPERA_2
CONDENSED STATEMENTS OF OPERATIONS (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Earnings (loss) per share - basic | $ (0.02) | $ 0 |
Earnings (loss) per share - diluted | $ (0.02) | $ 0 |
Weighted average shares - basic | 4,946,502 | 4,946,502 |
Weighted average shares - diluted | 4,946,502 | 4,946,502 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (92,124) | $ (4,961) |
Noncash items included in net loss: | ||
Depreciation | 38 | 111 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 33,624 | 24,977 |
Inventories | (3,830) | 66,997 |
Accrued interest receivable | 126 | (270) |
Prepaid expenses | 5,731 | (16,508) |
Accounts payable | (74,912) | (20,983) |
Other accrued liabilities, accrued wages and accrued vacation pay | (18,354) | 1,653 |
NET CASH PROVIDED (USED) IN OPERATING ACTIVITIES | (149,701) | 51,016 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Certificates of deposit redeemed | 300,000 | 150,000 |
Certificates of deposit purchases | (300,000) | |
Purchase of equipment | (9,000) | |
NET CASH PROVIDED (USED) FROM INVESTING ACTIVITIES | (9,000) | 150,000 |
CASH FLOWS USED IN FINANCING ACTIVITIES: | ||
Principal payments on CARES Act loan payable (round 1) | (5,968) | |
NET CASH USED IN FINANCING ACTIVITIES | (5,968) | |
NET INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS | (158,701) | 195,048 |
Cash and cash equivalents at beginning of period | 751,118 | 655,616 |
Cash and cash equivalents at end of period | $ 592,417 | $ 850,664 |
CONDENSED STATEMENTS OF CHANGES
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2021 | $ 4,947 | $ 932,412 | $ 703,458 | $ 1,640,817 |
Beginning Balance, Shares at Dec. 31, 2021 | 4,946,502 | |||
Net income (loss) | (4,961) | (4,961) | ||
Ending balance, value at Mar. 31, 2022 | $ 4,947 | 932,412 | 698,497 | 1,635,856 |
Ending Balance, Shares at Mar. 31, 2022 | 4,946,502 | |||
Beginning balance, value at Dec. 31, 2022 | $ 4,947 | 932,412 | 849,989 | 1,787,348 |
Beginning Balance, Shares at Dec. 31, 2022 | 4,946,502 | |||
Net income (loss) | (92,124) | (92,124) | ||
Ending balance, value at Mar. 31, 2023 | $ 4,947 | $ 932,412 | $ 757,865 | $ 1,695,224 |
Ending Balance, Shares at Mar. 31, 2023 | 4,946,502 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 - BASIS OF PRESENTATION The condensed 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 condensed 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 condensed financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of March 31, 2023, and its results of operations, cash flows, and changes in stockholders’ equity for the three months ended March 31, 2023 and 2022. The balance sheet at December 31, 2022 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, 2022. The results of operations for the three-month period ended March 31, 2023 are not necessarily indicative of the results expected for the full fiscal year or for any other fiscal period. The Company estimates that for 2023 the anticipated effective annual federal income tax rate will be 0%. New Accounting Pronouncements Accounting standards that have been issued by the Financial Accounting Standards Board that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
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: Schedule of inventories March 31, December 31, Parts $ 146,628 $ 172,190 Work in progress 247,223 336,298 Finished goods 335,457 216,990 Total inventory $ 729,308 $ 725,478 |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
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 common shares 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 March 31, 2023 and 2022, the Company had 180,000 240,000 |
STOCK OPTIONS
STOCK OPTIONS | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK OPTIONS | NOTE 4 - STOCK OPTIONS The Company has outstanding stock options, which have been granted periodically to individual employees and directors. No shared based compensation was recognized during the three-month periods ended March 31, 2023 and 2022. As of March 31, 2023 and 2022, there were 180,000 240,000 0.40 2.3 3.4 no |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
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 March 31, 2023 and 2022, the Company’s revenue from products sales was $ 297,589 461,843 7,500 10,300 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 March 31, 2023 and March 31, 2022 were $ 293,908 436,670 11,181 35,473 For the three-month period ended March 31, 2023 and 2022, sales to individual customers representing more than 10% of total revenue were as follows: Schedule of revenue For the three-month period ended March 31, 2023 2022 Sales %age of Total Sales Sales %age of Total Sales Domestic customer A $ 70,090 23 % $ 75,505 16 % Domestic customer B — — 72,683 15 % Domestic customer C — — 53,625 11 % As of March 31, 2023 Domestic customer A’s accounts receivable balance was $ 43,019 As of March 31, 2023 and 2022, the Company had a sales order backlog of $ 162,396 116,461 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
LEASES | NOTE 6 - LEASES On September 23, 2022, the Company signed a new two-year lease for its facilities. The base lease is $ 3,373 3,478 12.84 78,757 4.125 18 30,671 31,304 For the three-month periods ended March 31, 2023 and 2022, lease expense of $ 11,576 10,903 Schedule of lease expense 2023 2022 Cost of sales Operating expenses Total Cost of sales Operating expenses Total Base rent pursuant to lease agreement $ 5,751 $ 4,526 $ 10,277 $ 5,397 $ 4,247 $ 9,644 Variable lease costs 727 572 1,299 704 555 1,259 Total lease costs $ 6,478 $ 5,098 $ 11,576 $ 6,101 $ 4,802 $ 10,903 |
Cares Act Retention Credit
Cares Act Retention Credit | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Cares Act Retention Credit | NOTE 7 - Cares Act Retention Credit As at December 31, 2022 and March 31, 2023, the Company has an employee retention tax credit due of $ 63,000 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Schedule of inventories March 31, December 31, Parts $ 146,628 $ 172,190 Work in progress 247,223 336,298 Finished goods 335,457 216,990 Total inventory $ 729,308 $ 725,478 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenue | Schedule of revenue For the three-month period ended March 31, 2023 2022 Sales %age of Total Sales Sales %age of Total Sales Domestic customer A $ 70,090 23 % $ 75,505 16 % Domestic customer B — — 72,683 15 % Domestic customer C — — 53,625 11 % |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of lease expense | Schedule of lease expense 2023 2022 Cost of sales Operating expenses Total Cost of sales Operating expenses Total Base rent pursuant to lease agreement $ 5,751 $ 4,526 $ 10,277 $ 5,397 $ 4,247 $ 9,644 Variable lease costs 727 572 1,299 704 555 1,259 Total lease costs $ 6,478 $ 5,098 $ 11,576 $ 6,101 $ 4,802 $ 10,903 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Parts | $ 146,628 | $ 172,190 |
Work in progress | 247,223 | 336,298 |
Finished goods | 335,457 | 216,990 |
Inventory, Net | $ 729,308 | $ 725,478 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details Narrative) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive shares | 180,000 | 240,000 |
STOCK OPTIONS (Details Narrativ
STOCK OPTIONS (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Options outstanding shares | 180,000 | 240,000 |
Weighted average exercise price | $ 0.40 | $ 0.40 |
Weighted average remaining life | 2 years 3 months 18 days | 3 years 4 months 24 days |
Intrinsic value | $ 0 | $ 0 |
REVENUE (Details)
REVENUE (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 305,089 | $ 472,143 |
Geographic Distribution, Domestic [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 293,908 | 436,670 |
Customer A [Member] | Geographic Distribution, Domestic [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 70,090 | $ 75,505 |
Revenues | 23% | 16% |
Customer B [Member] | Geographic Distribution, Domestic [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 72,683 | |
Revenues | 15% | |
Customer C [Member] | Geographic Distribution, Domestic [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 53,625 | |
Revenues | 11% |
REVENUE (Details Narrative)
REVENUE (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 305,089 | $ 472,143 |
Sales order backlog | 162,396 | 116,461 |
Geographic Distribution, Domestic [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 293,908 | 436,670 |
Geographic Distribution, Domestic [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer A [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Account receivable | 43,019 | |
Geographic Distribution, Foreign [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 11,181 | 35,473 |
Product [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 297,589 | 461,843 |
Maintenance [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 7,500 | $ 10,300 |
LEASES (Details)
LEASES (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Base rent pursuant to lease agreement | $ 10,277 | $ 9,644 |
Variable lease costs | 1,299 | 1,259 |
Total lease costs | 11,576 | 10,903 |
Cost of Sales [Member] | ||
Base rent pursuant to lease agreement | 5,751 | 5,397 |
Variable lease costs | 727 | 704 |
Total lease costs | 6,478 | 6,101 |
Operating Expense [Member] | ||
Base rent pursuant to lease agreement | 4,526 | 4,247 |
Variable lease costs | 572 | 555 |
Total lease costs | $ 5,098 | $ 4,802 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 3 Months Ended | ||
Sep. 23, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Lease, Cost | $ 10,277 | $ 9,644 | |
Leasehold tax percentage | 12.84% | ||
Leasehold tax | $ 78,757 | ||
Incremental borrowing rate | 4.125% | ||
Remaining lease term | 18 months | ||
Future payments - 2023 | $ 30,671 | ||
Future payments - 2024 | 31,304 | ||
Lease expense | $ 11,576 | $ 10,903 | |
Monthly rate year one | |||
Operating Lease, Cost | $ 3,373 | ||
Monthly rate year two | |||
Operating Lease, Cost | $ 3,478 |
Cares Act Retention Credit (Det
Cares Act Retention Credit (Details Narrative) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Employee retention tax credit | $ 63,000 | $ 63,000 |