REFLECT SCIENTIFIC INC
For the period ended Sep 30, 2024. Filed Nov 12, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 12, 2024
RSCFStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-13.
0001548123-24-000101
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-12.
0001548123-24-000126
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 47 previous paragraphs and 48 current paragraphs.
27 unchanged; 17 reworded; 4 added; 3 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
Revenues. Revenues decreased by $11,851, or -2.3%, to $514,023 for the three months ended September 30, 2024, as compared to $525,874 for the three months ended September 30, 2023. Revenues were consistent between years due to freezer and chiller sales driven by customer needs.
Current report
Cost of goods sold. Cost of goods sold decreased by $9,691, or -4.9%, to $186,197 for the three months ended September 30, 2024, as compared to $195,888 for the three months ended September 30, 2023. Decrease was primarily due to slightly lower revenues for the same time period.
Current report
Comparison of the Nine Months Ended September 30, 2024 and 2023
Current report
Other income. Other income was $29,968 for the nine months ended September 30, 2024, as compared to $5,368 for the nine months ended September 30, 2023. The increase is from interest income earned on business money market savings accounts. These were opened during the third quarter of 2023.
Removed paragraphs (3)
Previous report
Revenues. Revenues increased by $465,687, or 374.4%, to $590,071 for the three months ended June 30, 2024, as compared to $124,384 for the three months ended June 30, 2023. Such increase was primarily due to a heightened demand for freezer and chiller sales, driven by increased customer capital expenditures during the current period.
Previous report
Cost of goods sold. Cost of goods sold increased by $167,664, or 263%, to $231,514 for the three months ended June 30, 2024, as compared to $63,850 for the three months ended June 30, 2023. Such increase was primarily due to increased freezer and chillers sales during the current period.
Previous report
Comparison of the Six Months Ended June 30, 2024 and 2023
Reworded paragraphs (17)
Previous wording
During the three months and six months ended June 30, 2024, there were no significant changes in our accounting policies and estimates.
Current wording
During the three months and nine months ended September 30, 2024, there were no significant changes in our accounting policies and estimates.
Previous wording
Gross profit. Our gross profit as a percentage of sales increased to 60.8% for the three months ended June 30, 2024, as compared to 48.7% for the three months ended June 30, 2023. The increase in gross profit percentage was primarily due to the increase in freezer and chiller sales during the current period, which have better margins than other products. This was partially offset by increased product costs during the current period.
Current wording
Gross profit. Our gross profit as a percentage of sales increased to 63.8%for the three months ended September 30, 2024, as compared to 62.8% for the three months ended September 30, 2023. The increase in gross profit percentage was primarily due to the margins in freezer and chiller sales during the current period.
Previous wording
Salaries and wages. Salaries and wages decreased by $6,515, or 4.2%, to $148,054 for the three months ended June 30, 2024, as compared to $154,569 for the three months ended June 30, 2023. Such decrease was primarily due to no stock-based compensation during the current period and decreased employee headcount.
Current wording
Salaries and wages. Salaries and wages decreased by $17,334, or -11.4%, to $137,943 for the three months ended September 30, 2024, as compared to $155,677 for the three months ended September 30, 2023. Decrease was primarily due reduction of hours during the current period and decreased employee headcount.
Previous wording
General and administrative. General and administrative expenses increased by $26,194 or 32.2%, to $107,555 for the three months ended June 30, 2024, as compared to $81,361 for the three months ended June 30, 2023. Such increase was primarily due to increased advertising and marketing, professional fees, public filing costs, and rent expense during the current period.
Current wording
General and administrative. General and administrative expenses increased by $3,221 or 3.8%, to $87,552 for the three months ended September 30, 2024, as compared to $84,331 for the three months ended September 30, 2023. Increase was primarily due to increased advertising and marketing during the current period.
Previous wording
Research and development. Research and development expenses decreased by $775, or 14.4%, to $4,605 for the three months ended June 30, 2024, as compared to $5,380 for the three months ended June 30, 2023. Such decrease was primarily a result of resource allocation to marketing and production.
Current wording
Research and development. Research and development expenses decreased by $5,990, or -66.0%, to $3,092 for the three months ended September 30, 2024, as compared to $9,082 for the three months ended September 30, 2023. Such decrease was primarily a result of resource allocation to marketing and production.
Previous wording
Other income. Other income was $10,644 for the three months ended June 30, 2024, as compared to $0 for the three months ended June 30, 2023. The increase in the current period was from interest income earned on our business money market savings accounts, which were opened during the fourth quarter of 2023.
Current wording
Other income. Other income was $10,791 for the three months ended September 30, 2024, as compared to $5,368 for the three months ended September 30, 2023. The increase is from interest income earned on business money market savings accounts. These were opened during the third quarter of 2023.
Previous wording
Net income. As a result of the cumulative effect of the factors described above, our net income was $108,987 for the three months ended June 30, 2024, as compared to a net loss of $181,088 for the three months ended June 30, 2023. Management continues to look for opportunities to increase sales, improve gross margins and control ongoing operating expenses.
Current wording
Net income. As a result of the cumulative effect of the factors described above, our net income was $109,930 for the three months ended September 30, 2024, as compared to a net income of $86,264 for the three months ended September 30, 2023. Management continues to look for opportunities to increase sales, improve gross margins and control ongoing operating expenses.
Previous wording
The following table sets forth key components of our results of operations during the six months ended June 30, 2024 and 2023, both in dollars and as a percentage of our revenues.
Current wording
The following table sets forth key components of our results of operations during the nine months ended September 30, 2024 and 2023, both in dollars and as a percentage of our revenues.
Previous wording
Revenues. Revenues increased by $653,315, or 178.7%, to $1,018,826 for the six months ended June 30, 2024, from $365,511 for the six months ended June 30, 2023. Such increase was primarily due to a significant increase in freezer and chiller sales.
Current wording
Revenues. Revenues increased by $641,464 or 72.0%, to $1,532,849 for the nine months ended September 30, 2024, from $891,385 for the nine months ended September 30, 2023. Such increase was primarily due to a significant increase in freezer and chiller sales throughout the year.
Previous wording
Cost of goods sold. Cost of goods sold increased by $240,997 or 135.8%, to $418,480 for the six months ended June 30, 2024, from $177,483 for the six months ended June 30, 2023. Such increase was primarily due to increased freezer and chillers sales, as well as increased production costs.
Current wording
Cost of goods sold. Cost of goods sold increased by $231,306 or 62.0%, to $604,677 for the nine months ended September 30, 2024, from $373,371 for the nine months ended September 30, 2023. Such increase was primarily due to increased revenue and increased production.
Previous wording
Gross profit. Our gross profit as a percentage of sales increased to 58.9% for the six months ended June 30, 2024, compared to 51.4% for the six months ended June 30, 2023. The increase in gross profit percentage was primarily due to the increase in freezer and chiller sales, which have better margins than other products
Current wording
Gross profit. Our gross profit as a percentage of sales increased to 60.6% for the nine months ended September 30, 2024, compared to 58.1% for the nine months ended June 30, 2023. The increase in gross profit percentage was primarily due to the increase in freezer and chiller sales, which have higher margins than other products.
Previous wording
Salaries and wages. Salaries and wages decreased by $26,176, or 8.3%, to $290,668 for the six months ended June 30, 2024, from $316,844 for the six months ended June 30, 2023. Such decrease was primarily due to decreased headcount.
Current wording
Salaries and wages. Salaries and wages decreased by $43,910, or -9.3%, to $428,611 for the nine months ended September 30, 2024, from $472,521 for the nine months ended September 30, 2023. Such decrease was primarily due to decreased headcount and reduction in hours.
Previous wording
General and administrative. General and administrative expenses increased by $51,506, or 27.3%, to $239,859 for the six months ended June 30, 2024, from $188,353 for the six months ended June 30, 2023. Such increase was primarily due to the increased in public filing and insurance costs.
Current wording
General and administrative. General and administrative expenses increased by $54,727, or 20.1%, to $327,411 for the nine months ended September 30, 2024, from $272,684 for the nine months ended September 30, 2023. Such increase was primarily due to the increased in public filing and insurance costs.
Previous wording
Research and development. Research and development expenses increased by $534, or 4.7%, to $11,980 for the six months ended June 30, 2024, from $11,446 for the six months ended June 30, 2023. Such increase was primarily a result of increased costs.
Current wording
Research and development. Research and development expenses decreased by $5,456, or -26.6%, to $15,072 for the nine months ended September 30, 2024, from $20,528 for the nine months ended September 30, 2023. Such decrease was primarily a result of a shift in company priorities.
Previous wording
Net income (loss). As a result of the cumulative effect of the factors described above, our net income was $77,016 for the six months ended June 30, 2024, as compared to net loss of $328,927 for the six months ended June 30, 2023. Management has looked for opportunities to increase sales, improve gross margins and control ongoing operating expenses.
Current wording
Net income (loss). As a result of the cumulative effect of the factors described above, our net income was $186,946 for the nine months ended September 30, 2024, as compared to net loss of $242,663 for the nine months ended September 30, 2023. Management has looked for opportunities to increase sales, improve gross margins and control ongoing operating expenses.
Previous wording
As of June 30, 2024 and December 31, 2023, our current assets exceeded current liabilities by $1,847,430 and $1,773,784, respectively, and we had cash and cash equivalents of $1,102,696 and $1,277,951, respectively. To date, we have financed our operations primarily through revenue generated from operations, cash proceeds from financing activities, borrowings, and equity contributions by our shareholders.
Current wording
As of September 30, 2024 and December 31, 2023, our current assets exceeded current liabilities by $1,954,096 and $1,773,784, respectively, and we had cash and cash equivalents of $1,030,408 and $1,277,951, respectively. To date, we have financed our operations primarily through revenue generated from operations, cash proceeds from financing activities, borrowings, and equity contributions by our shareholders.
Previous wording
Net cash used in operating activities was $175,255 and provided by operating activities $26,831 for the six months ended June 30, 2024 and 2023, respectively. Significant factors affecting operating cash flows were primarily a result of increased accounts receivable during the current period.
Current wording
Net cash used in operating activities was $247,543 and used in operating activities $42,481 for the nine months ended September 30, 2024 and 2023, respectively. Significant factors affecting operating cash flows were primarily a result of increased accounts receivable during the current period.