REFLECT SCIENTIFIC INC
For the period ended Sep 30, 2024. Filed Nov 12, 2024.
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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
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 1. FINANCIAL STATEMENTS
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| Page | |
|---|---|
| Condensed Consolidated Balance Sheets as of September 30, 2024 (Unaudited) and December 31, 2023 | 5 |
| Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) | 6 |
| Condensed Consolidated Statements of Stockholders’ Equity for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) | 7 |
| Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 (Unaudited) | 8 |
| Notes to Condensed Consolidated Financial Statements (Unaudited) | 9 |
CONDENSED CONSOLIDATED BALANCE SHEETS
| September 30, 2024 | December 31, 2023 | |
|---|---|---|
| ASSETS · (Unaudited) | ||
| Current Assets | ||
| Cash and cash equivalents | $1,030,408 | $1,277,951 |
| Accounts receivable, net | 272,098 | 108,191 |
| Inventories, net | 775,676 | 972,293 |
| Prepaid expenses and other current assets | 15,166 | 11,715 |
| Total Current Assets | 2,093,348 | 2,370,150 |
| Operating lease right-of-use assets | 181,618 | 235,653 |
| Goodwill | 60,000 | 60,000 |
| Other long-term assets | 3,100 | 3,100 |
| TOTAL ASSETS | $2,338,066 | $2,668,903 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities | ||
| Accounts payable and accrued expenses | $61,187 | $86,241 |
| Customer deposits | - | 447,444 |
| Current portion of operating lease liabilities | 78,065 | 62,681 |
| Total Current Liabilities | 139,252 | 596,366 |
| Operating lease liabilities, net of current portion | 119,294 | 179,963 |
| TOTAL LIABILITIES | 258,546 | 776,329 |
| Stockholders' Equity | ||
| Preferred Stock, $0.01 par value, 5,000,000 shares authorized; none issued and outstanding as of September 30, 2024 and December 31, 2023 | - | - |
| Common stock, $0.01 par value, 100,000,000 shares authorized; 85,664,086 shares issued and outstanding as of September 30, 2024 and December 31, 2023 | 856,640 | 856,640 |
| Additional paid-in capital | 20,302,681 | 20,302,681 |
| Accumulated deficit | (19,079,801) | (19,266,747) |
| TOTAL STOCKHOLDERS’ EQUITY | 2,079,520 | 1,892,574 |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $2,338,066 | $2,668,903 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Revenues | $514,023 | $525,874 | $1,532,849 | $891,385 |
| Cost of goods sold | 186,197 | 195,888 | 604,677 | 373,371 |
| Gross profit | 327,826 | 329,986 | 928,172 | 518,014 |
| Operating Expenses | ||||
| Salaries and wages | 137,943 | 155,677 | 428,611 | 472,521 |
| General and administrative | 87,552 | 84,331 | 327,411 | 272,684 |
| Research and development | 3,092 | 9,082 | 15,072 | 20,528 |
| Total Operating Expenses | 228,587 | 249,090 | 771,094 | 765,733 |
| INCOME (LOSS) FROM OPERATIONS | 99,239 | 80,896 | 157,078 | (247,719) |
| Other Income (Expense) | 10,791 | 5,368 | 29,968 | 5,368 |
| NET INCOME (LOSS) BEFORE INCOME TAXES | 110,030 | 86,264 | 187,046 | (242,351) |
| INCOME TAX EXPENSE | (100) | - | (100) | (312) |
| NET INCOME (LOSS) | $109,930 | $86,264 | $186,946 | $(242,663) |
| Income (loss) per common share | ||||
| Basic | $0.00 | $0.00 | $0.00 | $0.00 |
| Diluted | $0.00 | $0.00 | $0.00 | $0.00 |
| Weighted average shares outstanding | ||||
| Basic | 85,664,086 | 85,214,086 | 85,664,086 | 85,214,086 |
| Diluted | 85,664,086 | 85,664,086 | 85,664,086 | 85,214,086 |
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Three and Nine Months Ended September 30, 2024
| Common Shares · Additional Paid-In · Accumulated · Total Stockholders' | |||||
|---|---|---|---|---|---|
| Shares | Amount | Capital | Deficit | Equity | |
| Balance at December 31, 2023 | 85,664,086 | $856,640 | $20,302,681 | $(19,266,747) | $1,892,574 |
| Net loss | - | - | - | (31,971) | (31,971) |
| Balance at March 31, 2024 | 85,664,086 | $856,640 | $20,302,681 | $(19,298,718) | $1,860,603 |
| Net income | - | - | - | 108,987 | 108,987 |
| Balance at June 30, 2024 | 85,664,086 | $856,640 | $20,302,681 | $(19,189,731) | $1,969,590 |
| Net income | 109,930 | 109,930 | |||
| Balance at September 30, 2024 | 85,664,086 | 856,640 | 20,302,681 | (19,079,801) | 2,079,520 |
Three and Nine Months Ended September 30, 2023
| Common Shares · Additional Paid-In · Accumulated · Total Stockholders' | |||||
|---|---|---|---|---|---|
| Shares | Amount | Capital | Deficit | Equity | |
| Balance at December 31, 2022 | 85,214,086 | $852,140 | $20,252,181 | $(18,807,719) | $2,296,602 |
| Stock-based compensation | - | - | 6,875 | - | 6,875 |
| Net loss | - | - | - | (147,839) | (147,839) |
| Balance at March 31, 2023 | 85,214,086 | $852,140 | $20,259,056 | $(18,955,558) | $2,155,638 |
| Stock-based compensation | - | - | 6,875 | - | 6,875 |
| Net loss | - | - | - | (181,088) | (181,088) |
| Balance at June 30, 2023 | 85,214,086 | $852,140 | $20,265,931 | $(19,136,646) | $1,981,425 |
| Stock-based compensation | - | - | 6,875 | - | 6,875 |
| Net income | - | - | - | 86,264 | 86,264 |
| Balance at September 30, 2023 | 85,214,086 | $852,140 | $20,272,806 | $(19,050,382) | $2,074,564 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Nine Months Ended September 30, | ||||
|---|---|---|---|---|
| 2024 · 2023 | ||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||
| Net income (loss) | $186,946 | $(242,663) | ||
| Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||
| Stock-based compensation | - | 20,625 | ||
| Amortization of right-of-use assets | 54,035 | 44,192 | ||
| Changes in operating assets and liabilities: | ||||
| Accounts receivable | (163,907) | 9,147 | ||
| Inventories | 196,617 | (123,602) | ||
| Prepaid expenses and other current assets | (3,451) | 10,528 | ||
| Accounts payable and accrued expenses | (25,054) | 25,307 | ||
| Customer deposits | (447,444) | 260,604 | ||
| Operating lease liabilities | (45,285) | (46,619) | ||
| Net cash (used in) provided by operating activities | (247,543) | (42,481) | ||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||
| Net cash from investing activities | - | |||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||
| Net cash from financing activities | - | - | ||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | (247,543) | (42,481) | ||
| CASH AND CASH EQUIVALENTS | ||||
| Beginning of the period | 1,277,951 | 1,381,927 | ||
| End of the period | $1,030,408 | $1,339,446 | ||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||
| Cash paid for interest | $ | - | $ | - |
| Cash paid for income taxes | - | - | ||
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1—BASIS OF PRESENTATION AND OTHER INFORMATION
The accompanying unaudited condensed consolidated financial statements of Reflect Scientific, Inc. (the “Company,” “we,” “us,” or “our”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q of Regulation S-X. They do not include all the information and footnotes required by GAAP for complete financial statements. The December 31, 2023 consolidated balance sheet data was derived from audited financial statements but do not include all disclosures required by GAAP. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on March 29, 2024. The interim unaudited condensed consolidated financial statements should be read in conjunction with those consolidated financial statements included in the Form 10-K. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements, consisting solely of normal recurring adjustments, have been made. Operating results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.
Recently Issued Accounting Pronouncements
In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about reportable segment’s profit or loss and assets that are currently required annually. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact this standard will have on its condensed consolidated financial statements.
In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which enhances the transparency and decision usefulness of income tax disclosures by requiring; (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2025, with early adoption permitted. These amendments are to be applied prospectively, with retrospective application permitted. The Company is currently evaluating the impact this standard will have on its condensed consolidated financial statements.
The Company currently believes there are no other issued and not yet effective accounting standards that are materially relevant to our condensed consolidated financial statements.
NOTE 2—DISAGGREGATION OF REVENUES
Our revenue is disaggregated based on product category and geographical region. We recognize revenue from the sale of scientific equipment for the life sciences and manufacturing industries. Our products include non-mechanical Cyrometrix freezers, chillers, and original equipment manufacturer (“OEM”) value-added products and components for the life sciences industry.
The Company’s revenues for the three months ended September 30, 2024 and 2023 are disaggregated as follows:
| For the Three Months Ended September 30, 2024 | ||||
|---|---|---|---|---|
| United States · International · Total | ||||
| Revenues | ||||
| Freezers and chillers | $ | - | $225,600 | $225,600 |
| OEM and other | 211,252 | 77,171 | 288,423 | |
| Total Revenues | $211,252 | $302,771 | $514,023 | |
| For the Three Months Ended September 30, 2023 | ||||
|---|---|---|---|---|
| United States · International · Total | ||||
| Revenues | ||||
| Freezers and chillers | $355,561 | $ | - | $355,561 |
| OEM and other | 122,980 | 47,333 | 170,313 | |
| Total Revenues | $478,541 | $47,333 | $525,874 | |
The Company’s revenues for the nine months ended September 30, 2024 and 2023 are disaggregated as follows:
| For the Nine Months Ended September 30, 2024 | |||
|---|---|---|---|
| United States | International | Total | |
| Revenues | |||
| Freezers and chillers | $655,468 | $225,600 | $881,068 |
| OEM and other | 508,433 | 143,348 | 651,781 |
| Total Revenues | $1,163,901 | $368,948 | $1,532,849 |
| For the Nine Months Ended September 30, 2023 | ||||
|---|---|---|---|---|
| United States · International · Total | ||||
| Revenues | ||||
| Freezers and chillers | $411,319 | $ | - | $411,319 |
| OEM and other | 332,015 | 148,051 | 480,066 | |
| Total Revenues | $743,334 | $148,051 | $891,385 | |
NOTE 3—INVENTORIES
Inventories at September 30, 2024 and December 31, 2023 consisted of the following:
| September 30, 2024 | December 31, 2023 | |
|---|---|---|
| Finish goods | $126,629 | $493,565 |
| Raw material | 755,091 | 584,772 |
| Total inventories | 881,720 | 1,078,337 |
| Less reserve for obsolescence | (106,044) | (106,044) |
| Total inventories, net | $775,676 | $972,293 |
Inventory balances are composed of finished goods and raw materials. Work in process inventory is immaterial to the condensed consolidated financial statements.
NOTE 4—LEASES
The following was included in our condensed consolidated balance sheets at September 30, 2024 and December 31, 2023:
| September 30, | December 31, | |
|---|---|---|
| 2024 | 2023 | |
| Operating lease right-of-use assets | $181,618 | $235,653 |
| Lease liabilities, current portion | 78,065 | 62,681 |
| Lease liabilities, long-term | 119,294 | 179,963 |
| Total operating lease liabilities | $197,359 | $242,644 |
| Weighted-average remaining lease term (months) | 26 | 35 |
| Weighted average discount rate | 10.5% | 10.5% |
Total lease expense for the three and nine months ended September 30, 2024 and 2023 is as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Operating lease expense | $23,878 | $15,216 | $71,628 | $45,648 |
| Variable lease expense | 2,598 | 5,300 | 2,598 | 16,939 |
| Total lease expense | $26,476 | $20,516 | $74,226 | $62,587 |
Cash payments included in the measurement of our operating lease liabilities were $21,878 and $16,267 for the three months ended and $62,880 and $48,075 for the nine months ended September 30, 2024 and 2023, respectively.
As of September 30, 2024, maturities of operating lease liabilities were as follows:
| Year Ending December 31, | Amount |
|---|---|
| 2024 | $22,429 |
| 2025 | 98,532 |
| 2026 | 101,708 |
| Total | 222,669 |
| Less: imputed interest | (25,310) |
| Total operating lease liabilities | $197,359 |
NOTE 5—STOCKHOLDERS’ EQUITY
Common Stock
As of September 30, 2024 and December 31, 2023, the Company was authorized to issue 100,000,000 common shares, of which 85,664,086 common shares were issued and outstanding.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.