Electronic Systems Technology (ELST) 10-Q 23 Jul 24 2024 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2024	Jul. 23, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
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
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	ELST
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 (Unaud

CONDENSED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 322,634	$ 486,252
Certificates of deposit	400,000	400,000
Accounts receivable, net	76,322	52,592
Inventories	748,344	722,457
Prepaid expenses	20,961	19,278
Accrued interest receivable	1,235	1,906
Total current assets	1,569,496	1,682,485
Property and equipment, net of depreciation	17,502	18,255
Right to use – Lease, net of amortization	10,363	30,298
Total assets	1,597,361	1,731,038
Current liabilities
Accounts payable	74,117	37,355
Accrued wages	9,527	4,188
Operating lease liability, current portion	10,521	30,773
Accrued vacation pay	25,631	21,243
Other accrued liabilities	6,741	10,221
Total liabilities	126,537	103,780
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	933,105	933,105
Retained earnings	532,772	689,206
Total stockholders' equity	1,470,824	1,627,258
Total liabilities and stockholders' equity	$ 1,597,361	$ 1,731,038

CONDENSED BALANCE SHEETS (Una_2

CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock, par value	$ 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 (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
SALES - NET	$ 333,569	$ 585,206	$ 689,630	$ 890,295
COST OF SALES	(155,809)	(268,636)	(316,524)	(408,196)
GROSS PROFIT	177,760	316,570	373,106	482,099
Operating Expenses
General and administrative	62,670	61,492	151,448	146,257
Research and development	35,080	28,021	64,027	56,684
Marketing and sales	156,462	173,368	325,127	321,595
TOTAL OPERATING EXPENSE	254,212	262,881	540,602	524,536
OPERATING INCOME (LOSS)	(76,452)	53,689	(167,496)	(42,437)
OTHER INCOME
Interest income	5,592	5,181	11,062	9,183
TOTAL OTHER INCOME	5,592	5,181	11,062	9,183
NET INCOME (LOSS) BEFORE INCOME TAX	(70,860)	58,870	(156,434)	(33,254)
Benefit (provision) for income tax	0	0	0	0
NET INCOME (LOSS)	$ (70,860)	$ 58,870	$ (156,434)	$ (33,254)
Basic earnings per share	$ (0.01)	$ 0.01	$ (0.03)	$ (0.01)
Diluted earnings per share	$ (0.01)	$ 0.01	$ (0.03)	$ (0.01)
Basic weighted average shares used in computing income (loss) per share:	4,946,502	4,946,502	4,946,502	4,946,502
Diluted weighted average shares used in computing income (loss) per share:	4,946,502	4,946,502	4,946,502	4,946,502

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (156,434)	$ (33,254)
Noncash items included in net loss:
Depreciation and amortization	2,057	418
Stock based compensation	0	693
Changes in operating assets and liabilities:
Accounts receivable, net	(23,730)	(36,474)
Inventories	(25,887)	(115,095)
Accrued interest receivable	671	109
Prepaid expenses	(1,683)	22,901
Accounts payable	36,762	(45,207)
Other accrued liabilities	5,930	4,956
NET CASH USED IN OPERATING ACTIVITIES	(162,314)	(200,953)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of fixed assets	(1,304)	(19,769)
Certificates of deposit redeemed	700,000	751,699
Certificates of deposit purchased	(700,000)	(900,000)
NET CASH USED IN INVESTING ACTIVITIES	(1,304)	(168,070)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(163,618)	(369,023)
Cash and cash equivalents at beginning of period	486,252	751,118
Cash and cash equivalents at end of period	$ 322,634	$ 382,095

CONDENSED STATEMENTS OF CHANGES

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
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
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)				(33,254)
Ending balance, value at Jun. 30, 2023	$ 4,947	933,105	816,735	1,754,787
Ending balance, shares at Jun. 30, 2023	4,946,502
Beginning balance, value at Mar. 31, 2023	$ 4,947	932,412	757,865	1,695,224
Beginning balance, shares at Mar. 31, 2023	4,946,502
Net income (loss)			58,870	58,870
Stock based compensation		693		693
Ending balance, value at Jun. 30, 2023	$ 4,947	933,105	816,735	1,754,787
Ending balance, shares at Jun. 30, 2023	4,946,502
Beginning balance, value at Dec. 31, 2023	$ 4,947	933,105	689,206	1,627,258
Beginning balance, shares at Dec. 31, 2023	4,946,502
Net income (loss)			(85,574)	(85,574)
Ending balance, value at Mar. 31, 2024	$ 4,947	933,105	603,632	1,541,684
Ending balance, shares at Mar. 31, 2024	4,946,502
Beginning balance, value at Dec. 31, 2023	$ 4,947	933,105	689,206	1,627,258
Beginning balance, shares at Dec. 31, 2023	4,946,502
Net income (loss)				(156,434)
Ending balance, value at Jun. 30, 2024	$ 4,947	933,105	532,772	1,470,824
Ending balance, shares at Jun. 30, 2024	4,946,502
Beginning balance, value at Mar. 31, 2024	$ 4,947	933,105	603,632	1,541,684
Beginning balance, shares at Mar. 31, 2024	4,946,502
Net income (loss)			(70,860)	(70,860)
Ending balance, value at Jun. 30, 2024	$ 4,947	$ 933,105	$ 532,772	$ 1,470,824
Ending balance, shares at Jun. 30, 2024	4,946,502

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure [Table]
Net Income (Loss)	$ (70,860)	$ (85,574)	$ 58,870	$ (92,124)	$ (156,434)	$ (33,254)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 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

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2024
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 June 30, 2024, and its results of operations, cash flows, and changes in stockholders’ equity for the three and six months ended June 30, 2024 and 2023. The balance sheet at December 31, 2023 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, 2023. The results of operations for the three and six-month periods ended June 30, 2024 are not necessarily indicative of the results expected for the full fiscal year or for any other fiscal period. The Company estimates that for 2024 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	6 Months Ended
	Jun. 30, 2024
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 June 30, December 31, Parts $ 102,952 $ 118,472 Work in progress 386,694 313,597 Finished goods 258,698 290,388 Total inventories $ 748,344 $ 722,457

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE	6 Months Ended
	Jun. 30, 2024
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 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 June 30, 2024 and 2023, the Company had 225,000 225,000

STOCK OPTIONS

STOCK OPTIONS	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
STOCK OPTIONS	NOTE 4 - STOCK OPTIONS On June 9, 2023, the Board of Directors granted 45,000 0.40 5 0.24 104.1 5 95 3.92 693 534 159 As of June 30, 2024, there were 225,000 0.40 1.3 11,250

REVENUE

REVENUE	6 Months Ended
	Jun. 30, 2024
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 periods ended June 30, 2024 and 2023, the Company’s revenue from products sales was $ 326,469 575,306 7,100 9,900 During the six-month periods ended June 30, 2024 and 2023, the Company’s revenue from products sales was $ 671,630 872,895 18,000 17,400 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 June 30, 2024 and June 30, 2023 were $ 269,355 575,683 64,214 9,523 Domestic sales for the six-month period ended June 30, 2024 and June 30, 2023 were $ 582,595 869,591 107,035 20,704 For the three-month period ended June 30, 2024, 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 2023. Schedule of revenue 2024 Sales 2024 %age of Total Sales 2023 Sales 2023 %age of Total Sales Customer A $ 36,342 11 % $ 134,604 23 % Customer B 32,996 10 % 76,993 13 % Customer C 56,861 10 % For the six-month period ended June 30, 2024, sales to two customers represented more than 10% of total revenue, two customers represented more than 10% of total revenue for the same period in 2023. 2024 Sales 2024 %age of Total Sales 2023 Sales 2023 %age of Total Sales Customer A $ 73,534 11 % $ 204,694 23 % Customer B 72,717 11 % 91,821 10 %

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2024
Inventory Disclosure [Abstract]
Schedule of inventories	Schedule of inventories June 30, December 31, Parts $ 102,952 $ 118,472 Work in progress 386,694 313,597 Finished goods 258,698 290,388 Total inventories $ 748,344 $ 722,457

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of revenue	Schedule of revenue 2024 Sales 2024 %age of Total Sales 2023 Sales 2023 %age of Total Sales Customer A $ 36,342 11 % $ 134,604 23 % Customer B 32,996 10 % 76,993 13 % Customer C 56,861 10 % For the six-month period ended June 30, 2024, sales to two customers represented more than 10% of total revenue, two customers represented more than 10% of total revenue for the same period in 2023. 2024 Sales 2024 %age of Total Sales 2023 Sales 2023 %age of Total Sales Customer A $ 73,534 11 % $ 204,694 23 % Customer B 72,717 11 % 91,821 10 %

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Parts	$ 102,952	$ 118,472
Work in progress	386,694	313,597
Finished goods	258,698	290,388
Total inventories	$ 748,344	$ 722,457

EARNINGS (LOSS) PER SHARE (Deta

EARNINGS (LOSS) PER SHARE (Details Narrative) - shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Outstanding stock options	225,000	225,000

STOCK OPTIONS (Details Narrativ

STOCK OPTIONS (Details Narrative) - USD ($)		3 Months Ended	6 Months Ended
	Jun. 09, 2023	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share based compensation		$ 693	$ 0	$ 693
Marketing And Sales [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share based compensation		534		534
General and Administrative Expense [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share based compensation		$ 159		$ 159
Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares, granted	45,000
Weighted average exercise price	$ 0.40		$ 0.40
Vesting term	5 years
Stock price	$ 0.24
Volatility rate	104.10%
Expected term	5 years
Forfeiture rate	95%
Discount factor	3.92%
Options outstanding			225,000
Weighted average remaining life			1 year 3 months 18 days
Intrinsic value			$ 11,250

REVENUE (Details)

REVENUE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Sales	$ 333,569	$ 585,206	$ 689,630	$ 890,295
Customer A [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Disaggregation of Revenue [Line Items]
Sales	$ 36,342	$ 134,604	$ 73,534	$ 204,694
% age of total sales	11%	23%	11%	23%
Customer B [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Disaggregation of Revenue [Line Items]
Sales	$ 32,996	$ 76,993	$ 72,717	$ 91,821
% age of total sales	10%	13%	11%	10%
Customer C [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Disaggregation of Revenue [Line Items]
Sales		$ 56,861
% age of total sales		10%

REVENUE (Details Narrative)

REVENUE (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 333,569	$ 585,206	$ 689,630	$ 890,295
Geographic Distribution, Domestic [Member]
Disaggregation of Revenue [Line Items]
Revenue	269,355	575,683	582,595	869,591
Geographic Distribution, Foreign [Member]
Disaggregation of Revenue [Line Items]
Revenue	64,214	9,523	107,035	20,704
Product [Member]
Disaggregation of Revenue [Line Items]
Revenue	326,469	575,306	671,630	872,895
Maintenance [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 7,100	$ 9,900	$ 18,000	$ 17,400