10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

or

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT of 1934

For the transition period from __________ to __________

Commission File Number 000-31377

REFLECT SCIENTIFIC, INC.

(Exact name of registrant as specified in its charter)

Utah	87-0642556
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
1266 South 1380 West Orem, Utah 84058
(Address of principal executive offices) (Zip Code)
(801) 226-4100
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None.

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐  No ☒

Indicate by check mark whether the Registrant has submitted electronically on its corporate Web site, if any, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐

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Applicable Only to Issuers Involved in Bankruptcy Proceedings During the Preceding Five Years:

Indicate by check mark whether the Registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

Not applicable.

Applicable Only to Corporate Issuers:

Indicate the number of shares outstanding of each of the Registrant’s classes of common equity, as of the latest practicable date.

Class Outstanding as of November 15, 2021

84,739,086 shares of $0.01 par value common stock on November 15, 2021

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TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION
Item 1:Financial Statements​​	4
Condensed Consolidated Balance Sheets as of September 30, 2021 (unaudited), and December 31, 2020	5 - 6
Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2021 and 2020 (unaudited)	7
Condensed Consolidated Statement of Stockholders’ Equity for the three and nine months ended September 30, 2021 and 2020 (unaudited)	8 - 9
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 and 2020 (unaudited)	10
Notes to Condensed Consolidated Financial Statements	11

Item 2:Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3:Quantitative and Qualitative Disclosure about Market Risk	20
Item 4:Controls and Procedures	20
PART II – OTHER INFORMATION
Item 1:Legal Proceedings	20
Item 2:Unregistered Sales of Equity Securities and Use of Proceeds	20
Item 3:Defaults Upon Senior Securities	21
Item 4:Mine Safety Disclosure	21
Item 5:Other Information	21
Item 6:Exhibits	21 - 22
Signatures	23

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Part I - FINANCIAL INFORMATION

Item 1. Financial Statements

Reflect Scientific, Inc.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

September 30, 2021

The financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. However, in the opinion of management, all adjustments (which include only normal recurring accruals) necessary to present fairly the financial position and results of operations for the periods presented have been made. These financial statements should be read in conjunction with the 10-12 6/A for the period ended December 31, 2020, accompanying notes, and with the historical financial information of the Company.

4

REFLECT SCIENTIFIC, INC.

Condensed Consolidated Balance Sheets

ASSETS

	September 30,		December 31,
	2021		2020
	(Unaudited)
CURRENT ASSETS
Cash	$	1,143,998	$	642,542
Accounts receivable, net		147,688		340,427
Inventory, net		585,057		438,606
Prepaid assets		22,541		24,134
Total Current Assets		1,899,284		1,445,709
OTHER ASSETS
Operating lease right-of-use assets		124,089		167,641
Goodwill		60,000		60,000
Deposits		3,100		3,100
Total Other Assets		187,189		230,741
TOTAL ASSETS	$	2,086,473	$	1,676,450

The accompanying notes are an integral part of these condensed consolidated financial statements.

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REFLECT SCIENTIFIC, INC.

Condensed Consolidated Balance Sheets (Continued)

LIABILITIES AND STOCKHOLDERS’ EQUITY

	September 30,			December 31,
	2021			2020
	(Unaudited)
CURRENT LIABILITIES
Accounts payable and accrued expense	$	89,718		$	70,204
Contract liabilities		78,214			113,643
Operating lease liabilities – short term		54,901			58,682
Income taxes payable		-			100
Total Current Liabilities		222,833			242,629
LONG-TERM LIABILITIES
Operating lease liability – long-term		72,061			109,338
Loan – long-term		-			111,342
Total Liabilities		294,894			463,309
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value, authorized 5,000,000 shares; No shares issued and outstanding		-			-
Common stock, $0.01 par value, authorized 100,000,000 shares; 84,739,086 and 84,739,086 issued and outstanding, respectively		847,390			847,390
Additional paid in capital		20,201,931			20,201,931
Accumulated deficit		(19,257,742	)		(19,836,180	)
Total Stockholders’ Equity		1,791,579			1,213,141
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,086,473		$	1,676,450

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

REFLECT SCIENTIFIC, INC.

Condensed Consolidated Statements of Operations

(Unaudited)

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
REVENUES	$	716,145	$	610,085	$	1,985,640	$	2,096,799
COST OF GOODS SOLD		242,343		252,112		621,317		845,281
GROSS PROFIT		473,802		357,973		1,364,323		1,251,518
OPERATING EXPENSES
Salaries and wages		146,697		77,701		429,417		406,611
Research and development expense		17,544		754		45,697		190,610
General and administrative expense		149,672		75,330		422,036		309,836
Total Operating Expenses		313,913		153,785		897,150		907,057
OPERATING INCOME (LOSS)		159,889		204,188		467,173		344,461
OTHER INCOME (EXPENSE)
Gain on forgiveness of SBA loan		-		-		111,265		-
Other income		-		-		-		(132)
Total Other Income (Expenses)		-		-		111,265		(132)
NET INCOME (LOSS) BEFORE TAXES		159,889		204,188		578,438		344,329
Income tax benefit (expense)		-		-		-		-
NET INCOME (LOSS)	$	159,889	$	204,188	$	578,438	$	344,329
NET INCOME (LOSS) PER SHARE – BASIC AND DILUTED	$	0.00	$	0.00	$	0.01	$	0.00
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC AND DILUTED		84,739,086		84,739,086		84,739,086		84,739,086

The accompanying notes are an integral part of these condensed consolidated financial statements.

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REFLECT SCIENIFIC, INC.

Condensed Consolidated Statements of Stockholders’ Equity (Deficit)

For the Three and Nine Months Ended September 30, 2021

					Additional
	Common Stock				Paid-In		Accumulated
	Shares		Amount		Capital		Deficit		Total
Balance, December 31, 2020		84,739,086	$	847,390	$	20,201,931	$	(19,836,180)	$	1,213,141
Net income for the three-month period ended March 31, 2021		-		-		-		247,768		247,768
Balance, March 31, 2021		84,739,086		847,390		20,201,931		(19,588,412)		1,460,909
Net income for the three-month period ended June 30, 2021		-		-		-		170,781		170,781
Balance – June 30, 2021		84,739,086		847,390		20,201,931		(19,417,631)		1,631,690
Net income for the three-month period ended September 30, 2021		-		-		-		159,889		159,889
Balance, September 30, 2021		84,739,086	$	847,390	$	20,201,931	$	(19,257,742)	$	1,791,579

The accompanying notes are an integral part of these condensed consolidated financial statements.

8

REFLECT SCIENIFIC, INC.

Condensed Consolidated Statements of Stockholders’ Equity (Deficit)

For the Three and Nine Months Ended September 30, 2020

					Additional
	Common Stock				Paid-In		Accumulated
	Shares		Amount		Capital		Deficit		Total
Balance, December 31, 2019		84,739,086	$	847,390	$	20,201,931	$	(20,496,295)	$	553,026
Net income for the three-month period ended March 31, 2020		-		-		-		165,595		165,595
Balance, March 31, 2020		84,739,086		847,390		20,201,931		(20,330,700)		718,621
Net loss for the three-month period ended June 30, 2020		-		-		-		(25,454)		(25,454)
Balance – June 20, 2020		84,739,086		847,390		20,201,931		(20,356,154)		693,167
Net profit for the three-month period ended September 30, 2020		-		-		-		204,188		204,188
Balance, September 30, 2020		84,739,086	$	847,390	$	20,201,931	$	(20,151,966)	$	897,355

The accompanying notes are an integral part of these condensed consolidated financial statements.

9

REFLECT SCIENTIFIC, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	For the Nine Months Ended September 30,
	2021		2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	578,438	$	344,329
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation		-		2,985
Amortization of operating lease right-of-use asset		43,552		45,376
Gain on forgiveness of SBA loan		(111,265)		-
Changes in operating assets and liabilities:
Accounts receivable		192,739		(17,438)
Inventory		(146,451)		(59,237)
Prepaid expenses		1,493		21,221
Accounts payable and accrued expenses		19,437		(62,831)
Operating lease liabilities		(41,058)		(45,992)
Customer deposits		(35,429)		(325,902)
Net Cash provided by (used in) Operating Activities		501,456		(97,489)
CASH FLOWS FROM INVESTING ACTIVITIES		-		-
CASH FLOWS FROM FINANCING ACTIVITIES
Net funds received from PPP loan		-		121,297
Net funds received from line of credit		-		(8,238)
Net cash provided by financing activities		-		113,059
NET CHANGE IN CASH		501,456		15,570
CASH AT BEGINNING OF PERIOD		642,542		555,156
CASH AT END OF PERIOD	$	1,143,998	$	570,726
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash Paid For:
Interest	$	-	$	588
Income taxes	$	-	$	-

The accompanying notes are an integral part of these condensed consolidated financial statements.

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REFLECT SCIENTIFIC, INC.

Notes to the Condensed Consolidated Financial Statements

September 30, 2021

(Unaudited)

NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to accounting principles generally accepted in the United States of America. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted in accordance with rules and regulations of the Securities and Exchange Commission. The information furnished in the interim condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. Although management believes the disclosures and information presented are adequate to make the information not misleading, it is suggested that these interim condensed consolidated financial statements be read in conjunction with the Company’s most recent audited consolidated financial statements and notes thereto included in its December 31, 2020 financial statements. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021.

NOTE 2 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION AND LINE OF BUSINESS:

Reflect Scientific, Inc. (the Company) was incorporated under the laws of the State of Utah on November 3, 1999 as Cole, Inc. The Company was organized to engage in any lawful activity for which corporations may be organized under the Utah Revised Business Corporation Act. On December 30, 2003 the Company changed its name to Reflect Scientific, Inc.

Reflect Scientific designs, develops and sells scientific equipment for the Life Science and Manufacturing industries. The Company’s business activities include the manufacture and distribution of unique laboratory consumables and disposables such as filtration and purification products, customized sample handling vials, electronic wiring assemblies, high temperature silicone, graphite and vespel/graphite sealing components for use by original equipment manufacturers (“OEM”) in the chemical analysis industries, primarily in the field of gas/liquid chromatography.

SIGNIFICANT ACCOUNTING POLICIES:

PRINCIPLES OF CONSOLIDATION: The accompanying consolidated financial statements include the accounts of Reflect Scientific, Inc. and its wholly owned subsidiary, Cryometrix. Intercompany transactions and accounts have been eliminated in consolidation.

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USE OF ESTIMATES: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.

REVENUE RECOGNITION.

We have applied the new revenue standard to all contracts from the date of initial application. We recognize revenue when or as we satisfy a performance obligation. We generally satisfy performance obligations at a point in time upon shipment of goods or, with our freezers, upon final acceptance of the unit by the customer, in accordance with the terms of each contract with the customer.

A part of our customer base is made up of international customers. The table below allocates revenue between domestic and international customers.

	For the Three Months Ended				For the Three Months Ended
	September 30, 2021				September 30, 2020
Segments			Total				Total
Domestic	$	422,866	$	422,866	$	373,468	$	373,468
International		293,279		293,279		236,617		236,617
	$	716,145	$	716,145	$	610,085	$	610,085
Components	$	293,266	$	293,266	$	304,995	$	304,995
Equipment		422,879		422,879		305,090		305,090
	$	716,145	$	716,145	$	610,085	$	610,085

	For the Nine Months Ended				For the Nine Months Ended
	September 30, 2021				September 30, 2020
Segments			Total				Total
Domestic	$	1,023,314	$	1,023,314	$	1,523,545	$	1,523,545
International		962,326		962,326		573,254		573,254
	$	1,985,640	$	1,985,640	$	2,096,799	$	2,096,799
Components	$	735,539	$	735,539	$	768,409	$	768,409
Equipment		1,250,101		1,250,101		1,328,390		1,328,390
	$	1,985,640	$	1,985,640	$	2,096,799	$	2,096,799

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ACCOUNTS RECEIVABLE: Accounts receivables are presented net of an allowance for doubtful accounts. The Company maintains allowances for doubtful accounts for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. At September 30, 2021 and December 31, 2020, the Company had accounts receivable, net of the allowance, of $147,688 and $340,427, respectively. At September 30, 2021 and December 31, 2020, the allowance for doubtful accounts was $4,000 and $4,000, respectively.

INVENTORY: Inventories are presented net of an allowance for obsolescence and are stated at the lower of cost or market value based upon the average cost inventory method. The Company’s inventory consists of parts for scientific vial kits, refrigerant gases, components for detectors and ultra-low temperature freezers which it builds and other scientific items. At September 30, 2021 and December 31, 2020, the Company had inventory consisting of raw materials and finished goods, net of allowance, of $585,057 and $438,606, respectively. Of the total raw materials represented $5,353 at September 30, 2021 and $10,767 at December 31, 2020. At September 30, 2021 and December 31, 2020, the allowance for obsolescence was $106,044 and $106,044, respectively.

INTANGIBLE ASSETS: Costs to obtain or develop patents are capitalized and amortized over the life of the patents. Patents are amortized from the date the Company acquires or is awarded the patent over their estimated useful lives, which range from 5 to 15 years. An impairment charge is recognized if the carrying amount is not recoverable and the carrying amount exceeds the fair value of the intangible assets as determined by projected discounted net future cash flows. We perform an impairment analysis on an annual basis. The Company’s analysis did not indicate any impairment of intangible assets as of the impairment analysis conducted December 31, 2020. As of September 30, 2021 and December 31, 2020, all of the intangible assets were fully amortized.

GOODWILL: Goodwill represents the excess of the Company’s acquisition cost over the fair value of net assets of the acquisition. Goodwill is not amortized, but is tested for impairment annually, or when a triggering event occurs. As described in ACS 360, the Company has adopted the goodwill impairment analysis that includes quantitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. A fair-value-based test is applied at the overall Company level. The test compares the estimated fair value of the Company at the date of the analysis to the carrying value of its net assets. The analysis also requires various judgments and estimates, including general and macroeconomic conditions, industry and the Company’s targeted market conditions, as well as relevant entity-specific events, such as a change in the market for the Company’s products and services. After considering the qualitative factors that would indicate a need for interim impairment of goodwill and applying the two-step process described in ASC 360, management has determined that the value of Company’s assets is not more likely than not less than the carrying value of the Company including goodwill, and that no impairment charge needs be recognized during the reporting periods.

LEASES: The Company, in accordance with ASC 842, accounts for leases as right-of-use assets (“ROU”) and lease liabilities on the balance sheet. The Company elected not to separate lease and non-lease components, but to treat as single lease costs. We estimate our incremental borrowing rate, which is defined as the interest rate we would pay to borrow on a collateralized basis, considering such factors as length of lease term and the risks of the economic environment in which the leased asset operates. The lease term used to calculate ROU assets and lease liabilities only includes renewal and termination options that are deemed reasonably certain to be exercised.

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RESEARCH AND DEVELOPMENT - The Company accounts for research and development costs in accordance with the Financial Accounting Standards Board's Accounting Standard Codification Topic 730 “Research and Development". Under ASC 730, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and developments costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred.

NET INCOME (LOSS) PER SHARE: The computation of basic profit and loss per share of common stock is based on the weighted average number of shares outstanding during the period. Diluted EPS is computed by dividing net earnings by the weighted-average number of common shares and dilutive common stock equivalents during the period. Common stock equivalents are not used in calculating dilutive EPS when their inclusion would be anti-dilutive. At September 30, 2021 and 2020, the Company had no common stock equivalents.

RECENT ACCOUNTING PRONOUNCEMENTS: The Company has reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its consolidated results of operation, financial position and cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its current or future earnings or operations.

NOTE 3 - LEASES

We have operating leases for our office and warehouse facility as well as for an automobile. We used the lease termination dates of November 30, 2023 for the building and July 7, 2021 for the automobile to calculate right of use (“ROU”) assets and lease liabilities.

The following was included in our consolidated condensed balance sheet as of September 30, 2021:

Leases	As of September 30, 2021
Assets
ROU operating lease assets	$	124,089
Liabilities
Operating lease liabilities – current portion	$	54,901
Operating lease liabilities	$	72,061
Total operating lease liabilities	$	126,962

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We recognize lease expense on a straight-line basis over the term of the lease.

	Nine Months Ended
Lease Cost	September 30, 2021
Operating lease cost
Administrative expenses	$	5,661
Rent expense		43,259
Total operating lease cost	$	48,920

Our building lease does not specify an implicit rate of interest. Therefore, we estimate our incremental borrowing rate, which is defined as the interest rate we would pay to borrow on a collateralized basis, considering such factors as length of lease term and the risks of the economic environment in which the leased asset operates. As of September 30, 2021, the following disclosures for remaining lease term and incremental borrowing rates were applicable:

	Nine Months Ended
Supplemental Disclosures	September 30, 2021
Weighted average remaining lease term	2.17 years
Weighted average discount rate	5.25%

NOTE 4 - INVENTORY

Inventories are presented net of an allowance for obsolescence and are stated at the lower of cost or market value based upon the average cost inventory method. The Company’s inventory consists of parts for scientific vial kits, refrigerant gases, components for detectors and ultra-low temperature freezers which it builds and other scientific items. At September 30, 2021 and December 31, 2020, the Company had inventory consisting of finished goods, net of allowance, of $585,057 and $438,606, respectively. At September 30, 2021 and December 31, 2020, the allowance for obsolescence was $106,044 and $106,044, respectively.

NOTE 5 - NOTE PAYABLE

On April 5, 2020, we received approval from our bank Chase Bank for the Paycheck Protection Program Loan (“PPP”). The terms of the loan were for 24 months at 0.98% per annum. The Company received notification that the PPP loan was fully forgiven by the Small Business Administration on February 7, 2021, both as to principal and interest, resulting in a $111,265 gain.

NOTE 6 - SUBSEQUENT EVENTS

In accordance with ASC 855-10 management reviewed all material events through the date of this report. There are no material subsequent events to report.

15

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Special Note Regarding Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 (the “Act”) provides a safe harbor for forward-looking statements made by or on behalf of our Company. Our Company and our representatives may from time to time make written or oral statements that are “forward-looking,” including statements contained in this Annual Report and other filings with the Securities and Exchange Commission and in reports to our Company’s stockholders. Management believes that all statements that express expectations and projections with respect to future matters, as well as from developments beyond our Company’s control including changes in global economic conditions are forward-looking statements within the meaning of the Act. These statements are made on the basis of management’s views and assumptions, as of the time the statements are made, regarding future events and business performance. There can be no assurance however, that management’s expectations will necessarily come to pass. Factors that may affect forward- looking statements include a wide range of factors that could materially affect future developments and performance, including the following:

· Changes in Company-wide strategies, which may result in changes in the types or mix of businesses in which our Company is involved or chooses to invest;

· Changes in U.S., global or regional economic conditions;

· Changes in U.S. and global financial and equity markets, including significant interest rate fluctuations, which may impede our Company’s access to, or increase the cost of, external financing for our operations and investments;

· Increased competitive pressures, both domestically and internationally;

· Legal and regulatory developments, such as regulatory actions affecting environmental activities;

· The imposition by foreign countries of trade restrictions and changes in international tax laws or currency controls;

· Adverse weather conditions or natural disasters, such as hurricanes and earthquakes, labor disputes, which may lead to increased costs or disruption of operations.

This list of factors that may affect future performance and the accuracy of forward-looking statements are illustrative, but by no means exhaustive. Accordingly, all forward-looking statements should be evaluated with the understanding of their inherent uncertainty.

Critical Accounting Policies and Estimates

The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the unaudited Financial Statements and accompanying notes.  Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from these estimates under different assumptions or conditions.  The Company has adopted the new revenue recognition and lease accounting standards. The Company believes there have been no other significant changes during the nine-month period ended September 30, 2021, to the items disclosed as significant accounting policies in management's Notes to the Financial Statements in the Company's Form 10 for the year ended December 31, 2020.

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Plan of Operation and Business Growth

Our efforts continue to be focused on increasing the sales of our life science consumables while, at the same time, working to enhance the design of our liquid nitrogen refrigeration products. Of those liquid nitrogen refrigeration products, the ultra-low temperature freezer is receiving highest priority. We have received positive feedback of the improvements and enhancements made to the design of the ultra-low temperature freezer. We also continue work on the refrigerated trailer, or “reefer.”

We are receiving considerable interest in our latest product introduction, which is an ultra-cold chiller used in the manufacture of CBD oil. This unit improves the efficiency of the manufacturing process and enables the production of a higher purity in the CBD oil produced.

Concurrent with the development and commercialization of the above products, we have completed our on-line catalog and are making progress in enrolling new distributors for our consumable products.

An analysis of operating results for the three months ended September 30, 2021 and 2020 follows.

Results of Operations

Three Months Ended September 30, 2021 and 2020

		For the three months ended September 30,
		2021		2020		Change
Revenues	$	716,145	$	610,085	$	106,060
Cost of goods sold		242,343		252,112		(9,769)
Gross profit		473,802		357,973		115,829
Operating expenses		313,913		153,785		160,128
Net income (loss)	$	159,889	$	204,188	$	(44,299)

Revenues increased during the three-month period ended September 30, 2021, to $716,145 from $610,085 for the three-month period ended September 30, 2020, an increase of $106,060. The increase is attributable to the increased sales of ultra-low temperature freezers and chillers. We are continuing work to increase our market penetration in the ultra-low temperature freezer market and in the ultra-cold chiller.

Cost of goods decreased in the quarter ending September 30, 2021, as compared to September 30, 2020, to $242,343 from $2252,112, an decrease of $(9,769). We realized a gross profit percentage of 66% for the three months ended September 30, 2021, compared to 59% for the three months ended September 30, 2020. The gross profit percentage is dependent on the mix of product sales, which varies from quarter to quarter. The increased sale of freezers and chillers during 2021 period resulted in the slightly higher margins. We continue to actively work to obtain more favorable pricing from our vendors in order to increase the margins realized on all product lines.

Operating expenses were $313,913 for the three months ended September 30, 2021, a increase of $160,128 over the expenses of $153,785 incurred in the three-month period ended September 30, 2020. The decrease results primarily from the $16,790 decrease in research and development costs and a $68,996 reduction in salaries and wages and a $74,392 decrease in general and administrative expenses. While we continue to monitor and minimize operating costs, we also realize that certain levels of expenditures are required in order to commercialize the products and achieve market penetration.

17

Research and development expenses for the three months ended September 30, 2021 were $17,544, an increase of $754 in expenses for the same period in 2020, as the development work on the ultra-cold CBD oil chiller was escalated.

Salaries and wages for the three months ended September 30, 2021 were reduced by $74,342 as compared to the expense for the three month period ended September 30, 2020. The termination of two employees resulted in the lower expense level.

Net income for the three-month period ended September 30, 2021 was $159,889, a decrease of $44,299 from the $204,188 for the three-month period ended September 30, 2020. Management continues to look for opportunities to increase sales, improve gross margins and control ongoing operating expenses.

The net income of $159,889 for the three-month period ended September 30, 2021 represents income of $0.00 per share. This compares to net income of $204,188, or $0.00 per share, for the three months ended September 30, 2020.

Nine Months Ended September 30, 2021 and 2020

		For the nine months ended September 30,
		2021		2020		Change
Revenues	$	1,985,640	$	2,096,799	$	(111,159)
Cost of goods sold		621,317		845,281		(223,964)
Gross profit		1,364,323		1,251,518		112,805
Operating expenses		897,150		907,057		(9,907)
Other income (expense)		111,265		(132)		111,397
Net profit (loss)	$	578,438	$	344,329	$	234,109

Revenues decreased during the nine-month period ended September 30, 2021, to $1,985,640 from $2,096,799 for the nine-month period ended September 30, 2020, a decrease of $111,159. The decrease is attributable to the additional chillers shipped in 2020 as the backlog of orders resulting from delays in receiving component parts were assembled and shipped. We are continuing work to increase our market penetration in the ultra-low temperature freezer market and in the ultra-cold chiller.

Cost of goods decreased in the nine months ended September 30, 2021, as compared to September 30, 2020, to $621,317 from $845,281, a decrease of $223,964. We realized a gross profit percentage of 69% for the nine months ended September 30, 2021, compared to 58% for the nine months ended September 30, 2020.

18

The gross profit percentage is dependent on the mix of product sales, which varies from quarter to quarter. Work has been done to reduce the component and assembly costs of the freezers and chillers. We continue to actively work to obtain more favorable pricing from our vendors in order to increase the margins realized on all product lines.

Operating expenses were $897,150 for the nine months ended September 30, 2021, a decrease of $9,907 over the expenses of $907,057 incurred in the nine-month period ended September 30, 2020. The decrease results primarily from the $144,913 decrease in research and development costs and a $22,806 decrease in salaries and wages, offset in part by a $112,200 increase in general and administrative expenses. While we continue to monitor and minimize operating costs, we also realize that certain levels of expenditures are required in order to commercialize the products and achieve market penetration.

Research and development expenses for the nine months ended September 30, 2021 were $45,697, a decrease of $144,913 in expenses for the same period in 2020, as the development work on the ultra-cold CBD oil chiller was minimized.

Operating expenses were also reduced due to lower salaries and wages in the nine month period ended September 30, 2021 as compared to 2020. The $22,806 reduction resulted from the reduction of two full-time employees.

Net income for the nine-month period ended September 30, 2021 was $578,438, which compares to net income of $344,329 for the nine-month period ended September 30, 2020. Management continues to look for opportunities to increase sales, improve gross margins and control ongoing operating expenses.

The net income of $578,438 for the nine-month period ended September 30, 2021 represents income of $0.01 per share. This compares to net income of $344,329, or income of $0.00 per share, for the nine months ended September 30, 2020.

Seasonality and Cyclicality

We do not believe our business is cyclical.

Liquidity and Capital Resources

Our cash resources at September 30, 2021, were $1,143,998, with accounts receivable of $147,688, net of allowance, and inventory of $585,057, net of allowance. Our working capital on September 30, 2021, was $1,676,451. Working capital on December 31, 2020 was $1,203,080.

For the nine-month period ended September 30, 2021, net cash provided by operating activities was $501,456, which is an improvement of $598,944 over the $97,488 net cash used by operating activities for the nine-month period ended September 30, 2020.

Off-Balance Sheet Arrangements

None.

19

Item 3. Quantitative and Qualitative Disclosure about Market Risk

Not required.

Item 4. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures.

As of the end of the period covered by this Quarterly Report, we carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon this evaluation, our Chief Executive Officer and Principal Financial Officer concluded that information required to be disclosed is recorded, processed, summarized and reported within the specified periods, and is accumulated and communicated to management, including our Chief Executive Officer and Principal Financial Officer, to allow for timely decisions regarding required disclosure of material information required to be included in our periodic Securities and Exchange Commission reports. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives and our Chief Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures are not effective at that reasonable assurance level as of the end of the period covered by this report based upon our current level of transactions and staff. However, it should be noted that the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote

(b) Changes in Internal Control Over Financial Reporting.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act. Management reviewed our internal controls over financial reporting, and there have been no changes in our internal controls over financial reporting for the nine-month period ended September 30, 2021 that have materially affected, or are like to affect, our internal controls over financial reporting.

PART II - OTHER INFORMATION

ITEM 1. Legal Proceedings

None; not applicable.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

Recent Sales of Unregistered Securities

None; not applicable.

20

Use of Proceeds of Registered Securities

None; not applicable.

Purchases of Equity Securities by Us and Affiliated Purchasers

During the nine months ended September 30, 2021, we have not purchased any equity securities nor have any officers or directors of the Company.

ITEM 3. Defaults Upon Senior Securities

None

ITEM 4. Mine Safety Disclosure

Not applicable.

ITEM 5. Other Information.

None

21

ITEM 6. Exhibits

Exhibit No.	Title of Document	Location if other than attached hereto
31.1	302 Certification of Kim Boyce
31.2	302 Certification of Keith Merrell
32	906 Certification

22

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

			Reflect Scientific, Inc.
			(Registrant)
Date:	November 15, 2021	By:	/s/ Kim Boyce
			Kim Boyce, CEO, President and Director
Date:	November 15, 2021	By:	/s/ Tom Tait
			Tom Tait, Vice President and Director
Date:	November 15, 2021	By:	/s/ Kim Boyce
			Kim Boyce, CFO, Principal Financial Officer

23

EX-31

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

     I, Kim Boyce certify that:

     1.   I have reviewed this Quarterly Report on Form 10-Q of Reflect Scientific, Inc.;

     2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

     3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

     4.   The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;  

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)

Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)

Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

     5.   The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions);

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Dated: 11/15/2021                           Signature:/s/Kim Boyce

                                                         Kim Boyce

                                                         Chief Executive Officer and Director

EX-31

Exhibit 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

     I, Kim Boyce, certify that:

     1.   I have reviewed this Quarterly Report on Form 10-Q of Reflect Scientific, Inc.;

     2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

     3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

     4.   The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)

Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)

Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

     5.   The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions);

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Dated: 11/15/2021                            Signature:/s/Kim Boyce

                                                          Kim Boyce

                                                          Principal Financial Officer and CFO

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Reflect Scientific, Inc. (the “Company”) on Form 10-Q for the period ending September 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), We, Kim Boyce, our Chief Executive Officer and director and Kim Boyce, our Chief/Principal Financial Officer, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

     (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

     (2)  The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Dated: 11/15/2021                             /s/Kim Boyce

                                                           Kim Boyce

                                                           Chief Executive Officer and Director

Dated: 11/15/2021                            /s/Kim Boyce

               Kim Boyce

                                                          Principal Financial Officer and CFO

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Nov. 15, 2021
Cover [Abstract]
Entity Central Index Key	0001103090
Document Period End Date	Sep. 30, 2021
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-31377
Entity Registrant Name	REFLECT SCIENTIFIC INC
Entity Incorporation, State or Country Code	UT
Entity Tax Identification Number	87-0642556
Entity Address, Address Line One	1266 South 1380 West
Entity Address, City or Town	Orem
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84058
City Area Code	801
Local Phone Number	226-4100
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity Information, Former Legal or Registered Name	N/A
Entity Common Stock, Shares Outstanding		84,739,086

XML

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2021	Dec. 31, 2020
CURRENT ASSETS
Cash	$ 1,143,998	$ 642,542
Accounts receivable, net	147,688	340,427
Inventory, net	585,057	438,606
Prepaid assets	22,541	24,134
Total Current Assets	1,899,284	1,445,709
OTHER ASSETS
Operating lease right-of-use assets	124,089	167,641
Goodwill	60,000	60,000
Deposits	3,100	3,100
Total Other Assets	187,189	230,741
TOTAL ASSETS	2,086,473	1,676,450
CURRENT LIABILITIES
Accounts payable and accrued expense	89,718	70,204
Contract liabilities	78,214	113,643
Operating lease liabilities - short term	54,901	58,682
Income taxes payable		100
Total Current Liabilities	222,833	242,629
LONG-TERM LIABILITIES
Operating lease liability - long-term	72,061	109,338
Loan - long-term		111,342
Total Liabilities	294,894	463,309
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 par value, authorized 5,000,000 shares; No shares issued and outstanding
Common stock, $0.01 par value, authorized 100,000,000 shares; 84,739,086 and 84,739,086 issued and outstanding, respectively	847,390	847,390
Additional paid in capital	20,201,931	20,201,931
Accumulated deficit	(19,257,742)	(19,836,180)
Total Stockholders' Equity	1,791,579	1,213,141
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 2,086,473	$ 1,676,450

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares outstanding	0	0
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Outstanding	84,739,086	84,739,086
Common Stock, Shares, Issued	84,739,086	84,739,086

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
REVENUES	$ 716,145	$ 610,085	$ 1,985,640	$ 2,096,799
COST OF GOODS SOLD	242,343	252,112	621,317	845,281
GROSS PROFIT	473,802	357,973	1,364,323	1,251,518
OPERATING EXPENSES
Salaries and wages	146,697	77,701	429,417	406,611
Research and development expense	17,544	754	45,697	190,610
General and administrative expense	149,672	75,330	422,036	309,836
Total Operating Expenses	313,913	153,785	897,150	907,057
OPERATING INCOME (LOSS)	159,889	204,188	467,173	344,461
OTHER INCOME (EXPENSE)
Gain on forgiveness of SBA loan			111,265
Other income				(132)
Total Other Income (Expenses)			111,265	(132)
NET INCOME (LOSS) BEFORE TAXES	159,889	204,188	578,438	344,329
Income tax benefit (expense)
NET INCOME (LOSS)	$ 159,889	$ 204,188	$ 578,438	$ 344,329
NET INCOME (LOSS) PER SHARE - BASIC AND DILUTED	$ 0.00	$ 0.00	$ 0.01	$ 0.00
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC AND DILUTED	84,739,086	84,739,086	84,739,086	84,739,086

XML

Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2019	$ 847,390	$ 20,201,931	$ (20,496,295)	$ 553,026
Balance, shares at Dec. 31, 2019	84,739,086
Net income (loss)			165,595	165,595
Balance at Mar. 31, 2020	$ 847,390	20,201,931	(20,330,700)	718,621
Balance, shares at Mar. 31, 2020	84,739,086
Balance at Dec. 31, 2019	$ 847,390	20,201,931	(20,496,295)	553,026
Balance, shares at Dec. 31, 2019	84,739,086
Net income (loss)				344,329
Balance at Sep. 30, 2020	$ 847,390	20,201,931	(20,151,966)	897,355
Balance, shares at Sep. 30, 2020	84,739,086
Balance at Mar. 31, 2020	$ 847,390	20,201,931	(20,330,700)	718,621
Balance, shares at Mar. 31, 2020	84,739,086
Net income (loss)			(25,454)	(25,454)
Balance at Jun. 30, 2020	$ 847,390	20,201,931	(20,356,154)	693,167
Balance, shares at Jun. 30, 2020	84,739,086
Net income (loss)			204,188	204,188
Balance at Sep. 30, 2020	$ 847,390	20,201,931	(20,151,966)	897,355
Balance, shares at Sep. 30, 2020	84,739,086
Balance at Dec. 31, 2020	$ 847,390	20,201,931	(19,836,180)	$ 1,213,141
Balance, shares at Dec. 31, 2020	84,739,086			84,739,086
Net income (loss)			247,768	$ 247,768
Balance at Mar. 31, 2021	$ 847,390	20,201,931	(19,588,412)	1,460,909
Balance, shares at Mar. 31, 2021	84,739,086
Balance at Dec. 31, 2020	$ 847,390	20,201,931	(19,836,180)	$ 1,213,141
Balance, shares at Dec. 31, 2020	84,739,086			84,739,086
Net income (loss)				$ 578,438
Balance at Sep. 30, 2021	$ 847,390	20,201,931	(19,257,742)	$ 1,791,579
Balance, shares at Sep. 30, 2021	84,739,086			84,739,086
Balance at Mar. 31, 2021	$ 847,390	20,201,931	(19,588,412)	$ 1,460,909
Balance, shares at Mar. 31, 2021	84,739,086
Net income (loss)			170,781	170,781
Balance at Jun. 30, 2021	$ 847,390	20,201,931	(19,417,631)	1,631,690
Balance, shares at Jun. 30, 2021	84,739,086
Net income (loss)			159,889	159,889
Balance at Sep. 30, 2021	$ 847,390	$ 20,201,931	$ (19,257,742)	$ 1,791,579
Balance, shares at Sep. 30, 2021	84,739,086			84,739,086

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 578,438	$ 344,329
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation		2,985
Amortization of operating lease right-of-use asset	43,552	45,376
Gain on forgiveness of SBA loan	(111,265)
Changes in operating assets and liabilities:
Accounts receivable	192,739	(17,438)
Inventory	(146,451)	(59,237)
Prepaid expenses	1,493	21,221
Accounts payable and accrued expenses	19,437	(62,831)
Operating lease liabilities	(41,058)	(45,992)
Customer deposits	(35,429)	(325,902)
Net Cash provided by (used in) Operating Activities	501,456	(97,489)
CASH FLOWS FROM FINANCING ACTIVITIES
Net funds received from PPP loan		121,297
Net funds received from line of credit		(8,238)
Net cash provided by financing activities		113,059
NET CHANGE IN CASH	501,456	15,570
CASH AT BEGINNING OF PERIOD	642,542	555,156
CASH AT END OF PERIOD	1,143,998	570,726
Cash Paid For:
Interest		588
Income taxes

XML

BASIS OF FINANCIAL STATEMENT PRESENTATION

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF FINANCIAL STATEMENT PRESENTATION

NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to accounting principles generally accepted in the United States of America. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted in accordance with rules and regulations of the Securities and Exchange Commission. The information furnished in the interim condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. Although management believes the disclosures and information presented are adequate to make the information not misleading, it is suggested that these interim condensed consolidated financial statements be read in conjunction with the Company’s most recent audited consolidated financial statements and notes thereto included in its December 31, 2020 financial statements. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021.

XML

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION AND LINE OF BUSINESS:

Reflect Scientific, Inc. (the Company) was incorporated under the laws of the State of Utah on November 3, 1999 as Cole, Inc. The Company was organized to engage in any lawful activity for which corporations may be organized under the Utah Revised Business Corporation Act. On December 30, 2003 the Company changed its name to Reflect Scientific, Inc.

Reflect Scientific designs, develops and sells scientific equipment for the Life Science and Manufacturing industries. The Company’s business activities include the manufacture and distribution of unique laboratory consumables and disposables such as filtration and purification products, customized sample handling vials, electronic wiring assemblies, high temperature silicone, graphite and vespel/graphite sealing components for use by original equipment manufacturers (“OEM”) in the chemical analysis industries, primarily in the field of gas/liquid chromatography.

SIGNIFICANT ACCOUNTING POLICIES:

PRINCIPLES OF CONSOLIDATION: The accompanying consolidated financial statements include the accounts of Reflect Scientific, Inc. and its wholly owned subsidiary, Cryometrix. Intercompany transactions and accounts have been eliminated in consolidation.

11

USE OF ESTIMATES: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.

REVENUE RECOGNITION.

We have applied the new revenue standard to all contracts from the date of initial application. We recognize revenue when or as we satisfy a performance obligation. We generally satisfy performance obligations at a point in time upon shipment of goods or, with our freezers, upon final acceptance of the unit by the customer, in accordance with the terms of each contract with the customer.

A part of our customer base is made up of international customers. The table below allocates revenue between domestic and international customers.

	For the Three Months Ended				For the Three Months Ended
	September 30, 2021				September 30, 2020
Segments			Total				Total
Domestic	$	422,866	$	422,866	$	373,468	$	373,468
International		293,279		293,279		236,617		236,617
	$	716,145	$	716,145	$	610,085	$	610,085
Components	$	293,266	$	293,266	$	304,995	$	304,995
Equipment		422,879		422,879		305,090		305,090
	$	716,145	$	716,145	$	610,085	$	610,085

	For the Nine Months Ended				For the Nine Months Ended
	September 30, 2021				September 30, 2020
Segments			Total				Total
Domestic	$	1,023,314	$	1,023,314	$	1,523,545	$	1,523,545
International		962,326		962,326		573,254		573,254
	$	1,985,640	$	1,985,640	$	2,096,799	$	2,096,799
Components	$	735,539	$	735,539	$	768,409	$	768,409
Equipment		1,250,101		1,250,101		1,328,390		1,328,390
	$	1,985,640	$	1,985,640	$	2,096,799	$	2,096,799

12

ACCOUNTS RECEIVABLE: Accounts receivables are presented net of an allowance for doubtful accounts. The Company maintains allowances for doubtful accounts for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. At September 30, 2021 and December 31, 2020, the Company had accounts receivable, net of the allowance, of $147,688 and $340,427, respectively. At September 30, 2021 and December 31, 2020, the allowance for doubtful accounts was $4,000 and $4,000, respectively.

INVENTORY: Inventories are presented net of an allowance for obsolescence and are stated at the lower of cost or market value based upon the average cost inventory method. The Company’s inventory consists of parts for scientific vial kits, refrigerant gases, components for detectors and ultra-low temperature freezers which it builds and other scientific items. At September 30, 2021 and December 31, 2020, the Company had inventory consisting of raw materials and finished goods, net of allowance, of $585,057 and $438,606, respectively. Of the total raw materials represented $5,353 at September 30, 2021 and $10,767 at December 31, 2020. At September 30, 2021 and December 31, 2020, the allowance for obsolescence was $106,044 and $106,044, respectively.

INTANGIBLE ASSETS: Costs to obtain or develop patents are capitalized and amortized over the life of the patents. Patents are amortized from the date the Company acquires or is awarded the patent over their estimated useful lives, which range from 5 to 15 years. An impairment charge is recognized if the carrying amount is not recoverable and the carrying amount exceeds the fair value of the intangible assets as determined by projected discounted net future cash flows. We perform an impairment analysis on an annual basis. The Company’s analysis did not indicate any impairment of intangible assets as of the impairment analysis conducted December 31, 2020. As of September 30, 2021 and December 31, 2020, all of the intangible assets were fully amortized.

GOODWILL: Goodwill represents the excess of the Company’s acquisition cost over the fair value of net assets of the acquisition. Goodwill is not amortized, but is tested for impairment annually, or when a triggering event occurs. As described in ACS 360, the Company has adopted the goodwill impairment analysis that includes quantitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. A fair-value-based test is applied at the overall Company level. The test compares the estimated fair value of the Company at the date of the analysis to the carrying value of its net assets. The analysis also requires various judgments and estimates, including general and macroeconomic conditions, industry and the Company’s targeted market conditions, as well as relevant entity-specific events, such as a change in the market for the Company’s products and services. After considering the qualitative factors that would indicate a need for interim impairment of goodwill and applying the two-step process described in ASC 360, management has determined that the value of Company’s assets is not more likely than not less than the carrying value of the Company including goodwill, and that no impairment charge needs be recognized during the reporting periods.

LEASES: The Company, in accordance with ASC 842, accounts for leases as right-of-use assets (“ROU”) and lease liabilities on the balance sheet. The Company elected not to separate lease and non-lease components, but to treat as single lease costs. We estimate our incremental borrowing rate, which is defined as the interest rate we would pay to borrow on a collateralized basis, considering such factors as length of lease term and the risks of the economic environment in which the leased asset operates. The lease term used to calculate ROU assets and lease liabilities only includes renewal and termination options that are deemed reasonably certain to be exercised.

13

RESEARCH AND DEVELOPMENT - The Company accounts for research and development costs in accordance with the Financial Accounting Standards Board's Accounting Standard Codification Topic 730 “Research and Development". Under ASC 730, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and developments costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred.

NET INCOME (LOSS) PER SHARE: The computation of basic profit and loss per share of common stock is based on the weighted average number of shares outstanding during the period. Diluted EPS is computed by dividing net earnings by the weighted-average number of common shares and dilutive common stock equivalents during the period. Common stock equivalents are not used in calculating dilutive EPS when their inclusion would be anti-dilutive. At September 30, 2021 and 2020, the Company had no common stock equivalents.

RECENT ACCOUNTING PRONOUNCEMENTS: The Company has reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its consolidated results of operation, financial position and cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its current or future earnings or operations.

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LEASES

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

LEASES

NOTE 3 - LEASES

We have operating leases for our office and warehouse facility as well as for an automobile. We used the lease termination dates of November 30, 2023 for the building and July 7, 2021 for the automobile to calculate right of use (“ROU”) assets and lease liabilities.

The following was included in our consolidated condensed balance sheet as of September 30, 2021:

Leases	As of September 30, 2021
Assets
ROU operating lease assets	$	124,089
Liabilities
Operating lease liabilities – current portion	$	54,901
Operating lease liabilities	$	72,061
Total operating lease liabilities	$	126,962

14

We recognize lease expense on a straight-line basis over the term of the lease.

	Nine Months Ended
Lease Cost	September 30, 2021
Operating lease cost
Administrative expenses	$	5,661
Rent expense		43,259
Total operating lease cost	$	48,920

Our building lease does not specify an implicit rate of interest. Therefore, we estimate our incremental borrowing rate, which is defined as the interest rate we would pay to borrow on a collateralized basis, considering such factors as length of lease term and the risks of the economic environment in which the leased asset operates. As of September 30, 2021, the following disclosures for remaining lease term and incremental borrowing rates were applicable:

	Nine Months Ended
Supplemental Disclosures	September 30, 2021
Weighted average remaining lease term	2.17 years
Weighted average discount rate	5.25%

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INVENTORY

9 Months Ended

Sep. 30, 2021

Inventory, Net [Abstract]

INVENTORY

NOTE 4 - INVENTORY

Inventories are presented net of an allowance for obsolescence and are stated at the lower of cost or market value based upon the average cost inventory method. The Company’s inventory consists of parts for scientific vial kits, refrigerant gases, components for detectors and ultra-low temperature freezers which it builds and other scientific items. At September 30, 2021 and December 31, 2020, the Company had inventory consisting of finished goods, net of allowance, of $585,057 and $438,606, respectively. At September 30, 2021 and December 31, 2020, the allowance for obsolescence was $106,044 and $106,044, respectively.

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NOTE PAYABLE

9 Months Ended

Sep. 30, 2021

Notes Payable [Abstract]

NOTE PAYABLE

NOTE 5 - NOTE PAYABLE

On April 5, 2020, we received approval from our bank Chase Bank for the Paycheck Protection Program Loan (“PPP”). The terms of the loan were for 24 months at 0.98% per annum. The Company received notification that the PPP loan was fully forgiven by the Small Business Administration on February 7, 2021, both as to principal and interest, resulting in a $111,265 gain.

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SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2021

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 6 - SUBSEQUENT EVENTS

In accordance with ASC 855-10 management reviewed all material events through the date of this report. There are no material subsequent events to report.

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ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

PRINCIPLES OF CONSOLIDATION

PRINCIPLES OF CONSOLIDATION: The accompanying consolidated financial statements include the accounts of Reflect Scientific, Inc. and its wholly owned subsidiary, Cryometrix. Intercompany transactions and accounts have been eliminated in consolidation.

USE OF ESTIMATES

USE OF ESTIMATES: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.

REVENUE RECOGNITION

REVENUE RECOGNITION.

We have applied the new revenue standard to all contracts from the date of initial application. We recognize revenue when or as we satisfy a performance obligation. We generally satisfy performance obligations at a point in time upon shipment of goods or, with our freezers, upon final acceptance of the unit by the customer, in accordance with the terms of each contract with the customer.

A part of our customer base is made up of international customers. The table below allocates revenue between domestic and international customers.

	For the Three Months Ended				For the Three Months Ended
	September 30, 2021				September 30, 2020
Segments			Total				Total
Domestic	$	422,866	$	422,866	$	373,468	$	373,468
International		293,279		293,279		236,617		236,617
	$	716,145	$	716,145	$	610,085	$	610,085
Components	$	293,266	$	293,266	$	304,995	$	304,995
Equipment		422,879		422,879		305,090		305,090
	$	716,145	$	716,145	$	610,085	$	610,085

	For the Nine Months Ended				For the Nine Months Ended
	September 30, 2021				September 30, 2020
Segments			Total				Total
Domestic	$	1,023,314	$	1,023,314	$	1,523,545	$	1,523,545
International		962,326		962,326		573,254		573,254
	$	1,985,640	$	1,985,640	$	2,096,799	$	2,096,799
Components	$	735,539	$	735,539	$	768,409	$	768,409
Equipment		1,250,101		1,250,101		1,328,390		1,328,390
	$	1,985,640	$	1,985,640	$	2,096,799	$	2,096,799

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE: Accounts receivables are presented net of an allowance for doubtful accounts. The Company maintains allowances for doubtful accounts for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. At September 30, 2021 and December 31, 2020, the Company had accounts receivable, net of the allowance, of $147,688 and $340,427, respectively. At September 30, 2021 and December 31, 2020, the allowance for doubtful accounts was $4,000 and $4,000, respectively.

INVENTORY

INVENTORY: Inventories are presented net of an allowance for obsolescence and are stated at the lower of cost or market value based upon the average cost inventory method. The Company’s inventory consists of parts for scientific vial kits, refrigerant gases, components for detectors and ultra-low temperature freezers which it builds and other scientific items. At September 30, 2021 and December 31, 2020, the Company had inventory consisting of raw materials and finished goods, net of allowance, of $585,057 and $438,606, respectively. Of the total raw materials represented $5,353 at September 30, 2021 and $10,767 at December 31, 2020. At September 30, 2021 and December 31, 2020, the allowance for obsolescence was $106,044 and $106,044, respectively.

INTANGIBLE ASSETS

INTANGIBLE ASSETS: Costs to obtain or develop patents are capitalized and amortized over the life of the patents. Patents are amortized from the date the Company acquires or is awarded the patent over their estimated useful lives, which range from 5 to 15 years. An impairment charge is recognized if the carrying amount is not recoverable and the carrying amount exceeds the fair value of the intangible assets as determined by projected discounted net future cash flows. We perform an impairment analysis on an annual basis. The Company’s analysis did not indicate any impairment of intangible assets as of the impairment analysis conducted December 31, 2020. As of September 30, 2021 and December 31, 2020, all of the intangible assets were fully amortized.

GOODWILL

GOODWILL: Goodwill represents the excess of the Company’s acquisition cost over the fair value of net assets of the acquisition. Goodwill is not amortized, but is tested for impairment annually, or when a triggering event occurs. As described in ACS 360, the Company has adopted the goodwill impairment analysis that includes quantitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. A fair-value-based test is applied at the overall Company level. The test compares the estimated fair value of the Company at the date of the analysis to the carrying value of its net assets. The analysis also requires various judgments and estimates, including general and macroeconomic conditions, industry and the Company’s targeted market conditions, as well as relevant entity-specific events, such as a change in the market for the Company’s products and services. After considering the qualitative factors that would indicate a need for interim impairment of goodwill and applying the two-step process described in ASC 360, management has determined that the value of Company’s assets is not more likely than not less than the carrying value of the Company including goodwill, and that no impairment charge needs be recognized during the reporting periods.

LEASES

LEASES: The Company, in accordance with ASC 842, accounts for leases as right-of-use assets (“ROU”) and lease liabilities on the balance sheet. The Company elected not to separate lease and non-lease components, but to treat as single lease costs. We estimate our incremental borrowing rate, which is defined as the interest rate we would pay to borrow on a collateralized basis, considering such factors as length of lease term and the risks of the economic environment in which the leased asset operates. The lease term used to calculate ROU assets and lease liabilities only includes renewal and termination options that are deemed reasonably certain to be exercised.

RESEARCH AND DEVELOPMENT

RESEARCH AND DEVELOPMENT - The Company accounts for research and development costs in accordance with the Financial Accounting Standards Board's Accounting Standard Codification Topic 730 “Research and Development". Under ASC 730, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and developments costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred.

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE: The computation of basic profit and loss per share of common stock is based on the weighted average number of shares outstanding during the period. Diluted EPS is computed by dividing net earnings by the weighted-average number of common shares and dilutive common stock equivalents during the period. Common stock equivalents are not used in calculating dilutive EPS when their inclusion would be anti-dilutive. At September 30, 2021 and 2020, the Company had no common stock equivalents.

RECENT ACCOUNTING PRONOUNCEMENTS

RECENT ACCOUNTING PRONOUNCEMENTS: The Company has reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its consolidated results of operation, financial position and cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its current or future earnings or operations.

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ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Schedule of Disaggregated Revenues

A part of our customer base is made up of international customers. The table below allocates revenue between domestic and international customers.

	For the Three Months Ended				For the Three Months Ended
	September 30, 2021				September 30, 2020
Segments			Total				Total
Domestic	$	422,866	$	422,866	$	373,468	$	373,468
International		293,279		293,279		236,617		236,617
	$	716,145	$	716,145	$	610,085	$	610,085
Components	$	293,266	$	293,266	$	304,995	$	304,995
Equipment		422,879		422,879		305,090		305,090
	$	716,145	$	716,145	$	610,085	$	610,085

	For the Nine Months Ended				For the Nine Months Ended
	September 30, 2021				September 30, 2020
Segments			Total				Total
Domestic	$	1,023,314	$	1,023,314	$	1,523,545	$	1,523,545
International		962,326		962,326		573,254		573,254
	$	1,985,640	$	1,985,640	$	2,096,799	$	2,096,799
Components	$	735,539	$	735,539	$	768,409	$	768,409
Equipment		1,250,101		1,250,101		1,328,390		1,328,390
	$	1,985,640	$	1,985,640	$	2,096,799	$	2,096,799

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LEASES (Tables)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Schedule of Lessee Operating Lease Disclosure

The following was included in our consolidated condensed balance sheet as of September 30, 2021:

Leases	As of September 30, 2021
Assets
ROU operating lease assets	$	124,089
Liabilities
Operating lease liabilities – current portion	$	54,901
Operating lease liabilities	$	72,061
Total operating lease liabilities	$	126,962

Schedule of Lease Cost

We recognize lease expense on a straight-line basis over the term of the lease.

	Nine Months Ended
Lease Cost	September 30, 2021
Operating lease cost
Administrative expenses	$	5,661
Rent expense		43,259
Total operating lease cost	$	48,920

Schedule of Supplemental Disclosure

Our building lease does not specify an implicit rate of interest. Therefore, we estimate our incremental borrowing rate, which is defined as the interest rate we would pay to borrow on a collateralized basis, considering such factors as length of lease term and the risks of the economic environment in which the leased asset operates. As of September 30, 2021, the following disclosures for remaining lease term and incremental borrowing rates were applicable:

	Nine Months Ended
Supplemental Disclosures	September 30, 2021
Weighted average remaining lease term	2.17 years
Weighted average discount rate	5.25%

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ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Accounts receivable, net	$ 147,688	$ 340,427
Accounts Receivable, Allowance for Credit Loss	4,000	4,000
Inventory, net	585,057	438,606
Raw material	5,353	10,767
Inventory Adjustments	$ 106,044	$ 106,044
Minimum [Member]
Intangible asstes estimated useful lives	5 years
Maximum [Member]
Intangible asstes estimated useful lives	15 years

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ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Disaggregated Revenues) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Total revenues	$ 716,145	$ 610,085	$ 1,985,640	$ 2,096,799
Consumer Products [Member]
Disaggregation of Revenue [Line Items]
Total revenues	716,145	610,085	1,985,640	2,096,799
Domestic [Member]
Disaggregation of Revenue [Line Items]
Total revenues	422,866	373,468	1,023,314	1,523,545
Domestic [Member] | Consumer Products [Member]
Disaggregation of Revenue [Line Items]
Total revenues	422,866	373,468	1,023,314	1,523,545
International [Member]
Disaggregation of Revenue [Line Items]
Total revenues	293,279	236,617	962,326	573,254
International [Member] | Consumer Products [Member]
Disaggregation of Revenue [Line Items]
Total revenues	293,279	236,617	962,326	573,254
Components [Member]
Disaggregation of Revenue [Line Items]
Total revenues	293,266	304,995	735,539	768,409
Components [Member] | Consumer Products [Member]
Disaggregation of Revenue [Line Items]
Total revenues	293,266	304,995	735,539	768,409
Equipment [Member]
Disaggregation of Revenue [Line Items]
Total revenues	422,879	305,090	1,250,101	1,328,390
Equipment [Member] | Consumer Products [Member]
Disaggregation of Revenue [Line Items]
Total revenues	$ 422,879	$ 305,090	$ 1,250,101	$ 1,328,390

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LEASES (Narrative) (Details)	9 Months Ended
	Sep. 30, 2021
Lessee, Lease, Description [Line Items]
Lease expiration date	Nov. 30, 2023
Automobiles [Member]
Lessee, Lease, Description [Line Items]
Lease expiration date	Jul. 07, 2021

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LEASES (Schedule of Lessee Operating Lease Disclosure) (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Leases [Abstract]
ROU operating lease assets	$ 124,089	$ 167,641
Operating lease liabilities - current portion	54,901	58,682
Operating lease liabilities	72,061	$ 109,338
Total operating lease liabilities	$ 126,962

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LEASES (Schedule of Lease Cost) (Details)	9 Months Ended
	Sep. 30, 2021 USD ($)
Operating lease cost
Administrative expenses	$ 5,661
Rent expense	43,259
Total operating lease cost	$ 48,920

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LEASES (Schedule of Supplemental Disclosure) (Details)	Sep. 30, 2021
Leases [Abstract]
Weighted average remaining lease term	2 years 2 months 1 day
Weighted average discount rate	5.25%

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INVENTORY (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Inventory, Net [Abstract]
Inventory, net	$ 585,057	$ 438,606
Inventory allowance	$ 106,044	$ 106,044

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NOTE PAYABLE (Details) - USD ($)		3 Months Ended		9 Months Ended
	Apr. 05, 2020	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Debt Instrument [Line Items]
Gain on forgiveness of debt				$ 111,265
Paycheck Protection Program Loan [Member] | Chase Bank [Member]
Debt Instrument [Line Items]
Loan term	24 months
Loan interest rate	0.98%