Electronic Systems Technology

0001052918-19-000291.txt : 20191025 0001052918-19-000291.hdr.sgml : 20191025 20191025154659 ACCESSION NUMBER: 0001052918-19-000291 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 43 CONFORMED PERIOD OF REPORT: 20190930 FILED AS OF DATE: 20191025 DATE AS OF CHANGE: 20191025 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ELECTRONIC SYSTEMS TECHNOLOGY INC CENTRAL INDEX KEY: 0000752294 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRONIC COMPONENTS & ACCESSORIES [3670] IRS NUMBER: 911238077 STATE OF INCORPORATION: WA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-27793 FILM NUMBER: 191169764 BUSINESS ADDRESS: STREET 1: 415 N QUAY ST., BLDG B CITY: KENNEWICK STATE: WA ZIP: 99336 BUSINESS PHONE: 5097359092 MAIL ADDRESS: STREET 1: 415 N QUAY ST., BLDG B CITY: KENNEWICK STATE: WA ZIP: 99336 10-Q 1 elst10qoct22-19.htm ELECTRONIC SYSTEMS TECHNOLOGY INC FORM 10Q Electronic Systems Technology

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019

¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

From ________________ to ________________

ELECTRONIC SYSTEMS TECHNOLOGY, INC.

(Exact name of registrant as specified in its charter)

Washington	000-27793	91-1238077
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

415 N. Quay St. Bldg B1 Kennewick WA		99336
(Address of principal executive offices)		(Zip Code)

(509) 735-9092

(Registrant's telephone number, including area code)

N/A

(Former name, former address & former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(g) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, $0.001 par value	ELST	OTCQB

Indicate by check mark whether the registrant (1) has filed all documents and reports required to be filed by Sections 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 filings for the past 90 days. YES x NO ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).

YES x NO ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions 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 ¨

Small Reporting Company x

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 x

APPLICABLE ONLY TO CORPORATE ISSUERS:

As of October 11, 2019, the number of the Company's shares of common stock par value $0.001, outstanding was 4,946,502.

PART I

FINANCIAL INFORMATION

Item 1. Financial Statements.

ELECTRONIC SYSTEMS TECHNOLOGY, INC. BALANCE SHEETS (Unaudited)
	September 30,	December 31,
	2019	2018

ASSETS
Current assets
Cash and cash equivalents	$ 199,615	$ 323,667
Certificates of deposit	800,000	900,000
Accounts receivable, net	171,253	57,156
Inventories	711,647	714,995
Prepaid expenses	21,882	21,353
Accrued interest receivable	9,992	13,300
Total current assets	1,914,389	2,030,471

Property and equipment, net of depreciation	14,390	20,368

Right to use – Lease, net of amortization (NOTE 6)	52,855	-

Total assets	$ 1,981,634	$ 2,050,839

LIABILITIES and STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$ 12,505	$ 71,257
Refundable deposits	2,070	10,310
Accrued wages and bonus	3,664	2,138
Accrued vacation pay	16,146	11,449
Lease liability, current (NOTE 6)	52,855	-
Other accrued liabilities	5,418	2,514
Total current liabilities	92,658	97,668

Total liabilities	92,658	97,668

Stockholders' equity
Common stock, $0.001 par value 50,000,000 shares authorized 4,946,502 and 4,985,748 shares issued and outstanding respectively	4,947	4,986
Additional paid-in capital	929,159	944,040
Retained earnings	954,870	1,004,145
Total stockholders' equity	1,888,976	1,953,171
Total liabilities and stockholders' equity	$ 1,981,634	$ 2,050,839

See Notes to Financial Statements

ELECTRONIC SYSTEMS TECHNOLOGY, INC. STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended September 30, 2019	Three Months Ended September 30, 2018	Nine Months Ended September 30, 2019	Nine Months Ended September 30, 2018
SALES - NET	$ 371,915	$ 299,003	$ 1,141,343	$ 1,078,744
COST OF SALES	(163,041)	(142,138)	(528,415)	(520,335)
GROSS PROFIT	208,874	156,865	612,928	558,409

Operating Expenses
General and administrative	64,756	67,171	227,450	215,330
Research and development	48,445	42,965	165,397	134,392
Marketing and sales	89,414	85,121	286,621	290,125
TOTAL OPERATING EXPENSE	202,615	195,257	679,468	639,847

OPERATING INCOME (LOSS)	6,259	(38,392)	(66,540)	(81,438)

OTHER INCOME
Interest income	5,510	4,857	17,265	12,988
TOTAL OTHER INCOME	5,510	4,857	17,265	12,988

NET INCOME (LOSS) BEFORE INCOME TAX	11,769	(33,535)	(49,275)	(68,450)
Benefit (provision) for income tax	-	-	-	-
NET INCOME (LOSS)	$ 11,769	$ (33,535)	$ (49,275)	$ (68,450)

Basic and diluted earnings per share	$0.00	($0.01)	($0.01)	$ (0.01)

Weighted average shares used in computing income (loss) per share:
Basic average shares	4,946,502	4,986,048	4,949,754	4,986,048
Diluted average shares	4,951,273	4,986,048	4,949,754	4,986,048

See Notes to Financial Statements

ELECTRONIC SYSTEMS TECHNOLOGY, INC. STATEMENTS OF CASH FLOWS (Unaudited)
	Nine Months Ended
	September 30,	September 30,
	2019	2018

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss	$ (49,275)	$ (68,450)

Noncash items included in net loss:
Depreciation	5,978	8,307

Changes in operating assets and liabilities:
Accounts receivable, net	(114,097)	(17,332)
Inventories	3,348	111,791
Accrued interest receivable	3,308	(4,442)
Prepaid expenses	(529)	(16,567)
Accounts payable	(58,752)	41,014
Refundable deposits	(8,240)	(3,937)
Other accrued liabilities	9,127	(2,079)
NET CASH PROVIDED (USED) IN OPERATING ACTIVITIES	(209,132)	48,305


CASH FLOWS FROM INVESTING ACTIVITIES:
Certificates of deposit redeemed	1,800,000	100,000
Certificates of deposit purchased	(1,700,000)
NET CASH PROVIDED FROM INVESTING ACTIVITIES	100,000	100,000

CASH FLOWS USED IN FINANCING ACTIVITIES:
Repurchase of shares of common stock	(14,920)	-
NET CASH USED IN FINANCING ACTIVITIES	(14,920)	-

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS	(124,052)	148,305
Cash and cash equivalents at beginning of period	323,667	208,101
Cash and cash equivalents at end of period	$ 199,615	$ 356,406

See Notes to Financial Statements

ELECTRONIC SYSTEMS TECHNOLOGY, INC. STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited)
	Shares		Amount		Additional Paid-In Capital		Retained Earnings		Total
Balances, January 1, 2018	4,986,048	$	4,986	$	944,161	$	1,120,244	$	2,069,391

Net Income/(Loss)	-		-		-		(103,793)		(103,793)


Balance at March 31, 2018	4,986,048	$	4,986	$	944,161	$	1,016,451	$	1,965,598

Net Income/(Loss)	-		-		-		68,878		68,678

Balance at June 30, 2018	4,986,048	$	4,986	$	944,161	$	1,085,329	$	2,034,476

Net Income/(Loss)	-		-		-		(33,535)		(33,535)

Balance at September 30, 2018	4,986,048	$	4,986	$	944,161	$	1,051,794	$	2,000,941

Balances, January 1, 2019	4,985,748	$	4,986	$	944,040	$	1,004,145	$	$1,953,171

Net Income/(Loss)	-		-		-		(54,825)		(54,825)

Common stock repurchased	(39,246)		(39)		(14,881)		-		(14,920)

Balance at March 31, 2019	4,946,502	$	4,947	$	929,159	$	943,320	$	1,883,426

Net Income/(Loss)							(6,219)		(6,219)

Balance at June 30, 2019	4,946,502	$	4,947	$	929,159	$	943,101	$	1,877,207

Net Income/(Loss)	-		-		-		11,769		11,769

Balance at September 30, 2019	4,946,502	$	4,947	$	929,159	$	954,870	$	1,888,976

See Notes to Financial Statements

ELECTRONIC SYSTEMS TECHNOLOGY, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

NOTE 1 - BASIS OF PRESENTATION

The financial statements, including notes, of Electronic Systems Technology, Inc. (the "Company") are representations of the Company’s management, which is responsible for their integrity and objectivity. The accompanying unaudited financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, as well as the instructions to Form 10-Q. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of September 30, 2019, and its results of operations, cash flows, and changes in stockholders’ equity for the three months and nine months ended September 30, 2019 and 2018. The balance sheet at December 31, 2018 was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. All amounts presented are in U.S. dollars. For further information, refer to the financial statements and footnotes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

The results of operations for the three month and nine month period ended September 30, 2019 are not necessarily indicative of the results expected for the full fiscal year or for any other fiscal period. The Company estimates that for 2019 the anticipated effective annual federal income tax rate will be 0%.

Accounting Standards Updates Adopted

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02 Leases (Topic 842). The update modifies the classification criteria and requires lessees to recognize the assets and liabilities on the balance sheet for most leases. The update is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company adopted the update on January 1, 2019. Upon implementation of the new guidance, the Company recognized a liability and right-of-use asset of $91,637 as of January 1, 2019 for its one operating lease. The Company elected the transition option to apply the new guidance at the effective date without adjusting comparative periods presented. (See Note 6).

Accounting Standards Updates to Become Effective in Future Periods

In August 2018, the FASB issued ASU No. 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The update removes, modifies and makes additions to the disclosure requirements on fair value measurements. The update is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of this update on our fair value measurement disclosures.

Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

ELECTRONIC SYSTEMS TECHNOLOGY, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 - INVENTORIES

Inventories are stated at lower of direct cost or net realizable value with cost determined using the FIFO (first in, first out) method. Inventories consist of the following:

	September 30, 2019	December 31, 2018
Parts	$ 127,049	$ 133,809
Work in progress	289,679	243,081
Finished goods	294,919	338,105
Total inventories	$ 711,647	$ 714,995

NOTE 3 - EARNINGS (LOSS) PER SHARE

Basic and diluted earnings per share are calculated by dividing net income (loss) by the weighted average number of common shares outstanding–basic and diluted. For the nine month period ending September 30, 2019 and the three and nine month periods ending September 30, 2018, all outstanding stock options (Note 4) were excluded from the computation of diluted loss per share because they were anti-dilutive due to net losses in those periods. For the three month period ending September 30, 2019, the calculation of the weighted average number of common shares outstanding–diluted included the common stock equivalents of the outstanding stock options.

NOTE 4 - STOCK OPTIONS

As of September 30, 2019, the Company had outstanding stock options which have been granted periodically to individual employees and directors with no less than three years of continuous tenure with the Company. The Board of Directors did not issue stock options during the nine month period ended September 30, 2019.

A summary of option activity during the quarter ended September 30, 2019 is as follows:

	Number Outstanding	Weighted-Average Exercise Price Per Share	Weighted-Average Remaining Life (Years)	Approximate Aggregate Intrinsic Value
Outstanding and Exercisable at December 31, 2018	120,000	$0.40
Granted	-	-
Expired	-	-
Outstanding and Exercisable at September 30, 2019	120,000	$0.40	1.1	$2,400

NOTE 5 – REVENUE

The Company’s product revenues are derived from sales of industrial wireless products and accessories such as antennas, power supplies and cable assemblies. The Company also provides direct site support and engineering services to customers, such as repair and upgrade of its products. During the three-month period ended September 30, 2019 and 2018, the Company’s revenues from products sales were $369,615 and $293,154, respectively. Revenues from site support and engineering services were $2,300 and $5,849 respectively, over the same periods. As of September 30, 2019, year to date sales from products increased to $1,106,066 as compared to $1,062,346 as of September 30, 2019 and 2018. Revenues from site support and engineering services for the nine months ended September 30, 2019 and 2018, were $35,277 and $16,398, respectively.

ELECTRONIC SYSTEMS TECHNOLOGY, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

NOTE 5 – REVENUE (Cont.)

The Company’s customers, to which trade credit terms are extended, consist of United States and local governments and foreign and domestic companies. Domestic sales for the three-month period ended September 30, 2019 were $348,419 compared to $271,976 in 2018. Sales to foreign customers for the three-month period ended September 30, 2019 were $23,496 compared to $27,027 in 2018. Domestic sales for the nine-month period ended September 30, 2019 were $978,290 compared to $1,021,153 in 2018. Sales to foreign customers for the nine-month period ended September 30, 2019 were $163,053 compared to $57,591 in 2018.

For the three-month period ended September 30, 2019, sales to two customers represented more than 10% of total revenue; three customers represented more than 10% of total revenue for the same period in 2018.

	2019 Sales	2019 % of Total Sales	2018 Sales	2018 % of Total Sales
Domestic customer A	$70,035	20%	$43,616	15%
Domestic customer B	$44,341	12%

For the nine-month period ended September 30, 2019, sales to one customer represented more than 10% of total revenue, one customer represented more than 10% of total revenue for the same period in 2018.

	2019 Sales	2019 % of Total Sales	2018 Sales	2018 % of Total Sales
Domestic customer A	152,450	13%	240,659	22%

As of September 30, 2019 and 2018, the Company had a sales order backlog of $6,691 and $425, respectively.

NOTE 6 - LEASES

In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842). The update modifies the classification criteria and requires lessees to recognize the assets and liabilities on the balance sheet for most leases. The update is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company implemented this standard effective January 1, 2019. Upon implementation of the new guidance, the Company recognized a liability and right-of-use asset of $91,637 as of January 1, 2019 for its one operating lease. To calculate the liability and right to use asset, the Company utilized a 4.0% incremental borrowing rate to discount the future rent payments and remaining lease term of 1.75 years.

The Company leases its facilities from a port authority for $5,542 per month for three years, expiring in September 2020, with annual increases based upon the Consumer Price Index.

The original lease was effective October 1, 2014 and contained a three-year renewal option and a provision for an annual increase of 2% per year, plus Leasehold Tax of 12.84%. On September 5, 2017, the Company exercised the three-year option. The first year of this option was not subject to the 2% increase. The current lease does not contain the option to extend the lease. However, the Company believes that a new lease agreement will be signed prior to the expiration of the current lease. At September 30, 2019, the remaining lease term is one year.

ELECTRONIC SYSTEMS TECHNOLOGY, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

NOTE 6 – LEASES (Cont.)

For the three month and nine-month periods ended September 30, 2019 and 2018, lease expenses of $16,627 and $16,335, and $49,880 and $49,005 respectively, are included in the following expense classifications on the statement of operations:

	Three Months ended September 30, 2019	Three Months ended September 30, 2018	Nine Months ended September 30, 2019	Nine Months ended September 30, 2018
Cost of sales	$ 3,325	$ 3,267	$ 9,976	$ 9,801
General and administrative	3,325	3,267	9,976	9,801
Research and development	3,325	3,267	9,976	9,801
Marketing and sales	6,652	6,534	19,952	19,602
Total	$ 16,627	$ 16,335	$ 49,880	$ 49,005

As of September 30, 2019, total future lease payments are as follows:

For the 12 months ended September 30,
2019	$	14,993
2020		44,981
Total		59,974
Less imputed interest		(7,119)
Net lease liability		52,885
Current portion		52,885
Long-term portion	$	-

NOTE 7 – STOCK REPURCHASE

On January 13, 2016, the Company’s Board of Directors approved a resolution authorizing the repurchase of up to $100,000 of the Company’s common stock at the price of $0.38 per share. The Company’s share repurchase program does not obligate it to acquire any specific number of shares. On March 2, 2016, the Company’s Board of Director approved a resolution authorizing the repurchase of an additional $150,000 of the Company’s common stock at the price of $0.38 per share. Under the program (the “Stock Repurchase Plan”), shares may be repurchased in open market transactions, complying with Rule 10b5-1 and Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Shares repurchased are retired. During the three-month period ended September 30, 2019 and 2018, no shares were repurchased. During the nine-month period ended September 30, 2019, the Company repurchased 39,246 shares for $14,920; no shares were repurchased in the nine month period ended September 30, 2018. Since inception of the Stock Repurchase Plan, the Company has repurchased 212,165 shares for a total of $80,622 through September 30, 2019 and $169,378 of the original $250,000 approved by the board remains to be utilized for share repurchases.

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

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATION

Management's discussion and analysis is intended to be read in conjunction with the Company's unaudited financial statements and the integral notes thereto for the quarter ended September 30, 2019. The following statements may be forward looking in nature and actual results may differ materially.

FORWARD LOOKING STATEMENTS: The above discussion may contain forward looking statements that involve a number of risks and uncertainties. In addition to the factors discussed above, among other factors that could cause actual results to differ materially are the following: competitive factors such as rival wireless architectures and price pressures; availability of third party component products at reasonable prices; inventory risks due to shifts in market demand and/or price erosion of purchased components; change in product mix, and risk factors that are listed in the Company's reports and registration statements filed with the Securities and Exchange Commission.

A.RESULTS OF OPERATIONS

REVENUES: Total revenues from sales increased to $371,915 for the third quarter of 2019 as compared to $299,003 in the third quarter of 2018, reflecting an increase of 24%. Management believes the increase in sales revenues is due to increased domestic sales during third quarter of 2019 when compared with the same quarter of 2018. Year to date total revenues from sales increased to $1,141,343 in 2019 as compared to $1,078,744 in 2018, reflecting an increase of 6%. Management believes the increase in sales revenues is due to increased foreign sales demand, driven by larger automation projects during nine-month period ended September 30, 2019 when compared with the same period of 2018.

The Company's revenues have historically fluctuated from quarter to quarter due to timing factors such as product shipments to customers, customer order placement, customer buying trends, and changes in the general economic environment. The procurement process regarding plant and project automation, or project development, which usually surrounds the decision to purchase ESTeem products, can be lengthy. This procurement process may involve bid activities unrelated to the ESTeem products, such as additional systems and subcontract work, as well as capital budget considerations on the part of the customer. Because of the complexity of this procurement process, forecasts with regard to the Company's revenues are difficult to predict.

A percentage breakdown of the Company’s market segments of Domestic and Foreign Export sales for the three and nine-month periods ended September 30, 2019 and 2018 are as follows:

Three Months ended September 30, 2019

Three Months ended September 30, 2018

Nine Months ended September 30, 2019

Nine Months ended September 30, 2018

Domestic Sales

94%

91%

86%

95%

Export Sales

14%

BACKLOG:

As of September 30, 2019, the Company had a sales order backlog of $6,991. The Company’s customers generally place orders on an "as needed basis". Shipment for most of the Company’s products is generally made within 1 to 5 working days after receipt of customer orders, with the exception of ongoing, scheduled projects, and custom designed equipment.

COST OF SALES:

Cost of sales percentages for the third quarters of 2019 and 2018 were 44% and 47% of respective net sales. The cost of sales percentage decrease in the third quarter of 2019 is the result of the product mix sold during the same quarter of 2018. Cost of sales percentages for the nine-month periods ended September 30, 2019 and 2018 were 46% and 48% of respective net sales. The cost of sales percentage decrease in the third quarter of 2019 is the result of the product mix sold during the same period of 2018.

OPERATING EXPENSES:

Operating expenses for the third quarter and the first nine months of 2019 increased from third quarter of 2018 levels. The following is a delineation of operating expenses:

	Three Months Ended			Nine Month Ended
	September 30, 2019	September 30, 2018	Increase (Decrease)	September 30, 2019	September 30, 2018	Increase (Decrease)
General and administrative	$ 64,756	$ 67,171	$ (2,415)	$ 227,450	$ 215,330	$ 12,120
Research and development	48,445	42,965	5,480	165,397	134,392	31,005
Marketing and sales	89,414	85,121	4,293	286,621	290,125	(3,504)
Total operating expenses	$ 202,615	$ 195,257	$ 7,358	$ 679,468	$ 639,847	$ 39,621

General and administrative: For the third quarter of 2019, general and administrative expenses decreased $2,415 to $64,756, due to decreased professional services when compared with the same quarter of 2018. For the nine-month period, general and administrative expenses increased by $12,120 to $227,450, due to increased wages and professional services.

Research and development: Research and development expenses increased $5,480 to $48,445 during the third quarter of 2019 due to increased expenses related to payroll and decreased prototype build costs when compared with the same quarter of 2018. For the nine-month period, research and development expenses increased by $31,005 to $165,397, due to increased wages and prototype build costs.

Marketing and sales: During the third quarter of 2019, marketing and sales expenses increased $4,293 to $89,414 when compared with the same period of 2018, due to decreased payroll and increased travel expense related to sales efforts during the third quarter of 2018. For the nine-month period, marketing and sales expenses decreased by $3,504 to $286,621, due to decreased wages and an increase in travel and trade shows in 2018.

INTEREST INCOME:

The Company earned $5,510 in interest income during the quarter ended September 30, 2019 and $17,265 for the nine-month period. Sources of this income were money market accounts and certificates of deposit.

NET LOSS:

The Company had net income of $11,769 for the third quarter of 2019 compared to net loss of $33,535 for the same quarter of 2018. For the nine-month period ended September 30, 2019, the Company recorded a net loss of $49,275 compared with a net loss of $68,450 for the same period of 2018. The decrease in net loss during 2019 is the result of increased sales revenues and increased operating expenses offset by increase in interest income.

B.FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

The Corporation's current asset to current liabilities ratio at September 30, 2019 was 20.7 compared to 20.8 at December 31, 2018. The decrease in current ratio is due to the current portion of lease liability at September 30, 2019 as compared to December 31, 2018.

At September 30, 2019, the Company had cash and cash equivalents of $199,615 as compared to cash and cash equivalent of $323,667 at December 31, 2018, primarily reflecting cash used in operating activities.

Cash used in operating activities increased by $257,438 for the nine-month period ended September 30, 2019 when compared to the same period in 2018. The increase is attributable to more cash being utilized in paying accounts payable during the period as compared to prior year, an increase of $99,766. The change in accounts receivable increased by $96,765 during the same period as compared to the prior year.

Cash provided from investing was $100,000 due to the net redemption of CD’s maturing during the first nine months of 2019. Cash used in financing activities was $14,920 for the repurchase of the Company’s common stock during the nine-month period ended September 30, 2019.

In Management's opinion, the Company's cash and cash equivalents and other working capital at September 30, 2019 is sufficient to satisfy requirements for operations, capital expenditures, and other expenditures as may arise during 2019.

OFF-BALANCE SHEET ARRANGEMENTS

The Company has no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to its stockholders.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

There is no established market for trading the common stock of the Company. The market for the Company’s common stock is limited, and as such shareholders may have difficulty reselling their shares when desired or at attractive market prices. The Common Stock is not regularly quoted in the automated quotation system of a registered securities system or association. Our common stock, par value $0.001 per share, is quoted on the OTC Markets Group QB (OTCQB) under the symbol “ELST”. The OTCQB is a network of security dealers who buy and sell stock. The dealers are connected by a computer network which provides information on current “bids” and “asks” as well as volume information. The OTCQB is not considered a “national exchange”. The “over-the-counter” quotations do not reflect inter-dealer prices, retail mark-ups commissions or actual transactions. The Company’s common stock has continued to trade in low volumes and at low prices. Some investors view low-priced stocks as unduly speculative and therefore not appropriate candidates for investment. Many institutional investors have internal policies prohibiting the purchase or maintenance of positions in low-priced stocks.

Item 4. Controls and Procedures

An evaluation has been performed under the supervision and with the participation of our management, including our Chief Executive Officer and Principal Accounting Officer, of the effectiveness of the design and the operation of our "disclosure controls and procedures" (as such term is defined in Rules 13a-15(e) under the Securities Exchange Act of 1934) as of September 30, 2019. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have determined that there was a material weakness affecting our internal control over financial reporting and, as a result of that weakness, our disclosure controls and procedures were not effective as of September 30, 2019.

The material weakness is as follows:

We did not maintain effective controls to ensure appropriate segregation of duties as the same officer and employee was responsible for the initiating and recording of transactions, thereby creating segregation of

duties weaknesses. Due to the (1) significance of segregation of duties to the preparation of reliable financial statements; (2) the significance of potential misstatement that could have resulted due to the deficient controls; and, (3) the absence of sufficient other mitigating controls; we determined that this control deficiency resulted in more than a remote likelihood that a material misstatement or lack of disclosure within the annual or interim financial statements will not be prevented or detected.

Changes in Internal Control Over Financial Reporting

There have not been any changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II—OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 2. Unregistered Sales of Securities

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not Applicable

Item 5. Other Information

On June 25, 2019, Molex opted to terminate the MDA that was executed on June 13, 2017 and an 8K filed on June 17, 2017. Sales for neither party were material. The Company had immaterial expenses related to this agreement and had not invested any capital resources to fulfill its obligations to the agreement.

Item 6. Exhibits

EXHIBIT NUMBER	DESCRIPTION
31.1	Section 302 Certification, CEO
31.2	Section 302 Certification, CFO
32.1	Section 906 Certification, CEO
32.2	Section 906 Certification, CFO
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

ELECTRONIC SYSTEMS TECHNOLOGY, INC.

	By: /s/ Michael W. Eller
Date: October 25, 2019	Name: Michael W. Eller
	Title: President
	(Principal Executive Officer)

	By: /s/ Michael W. Eller
Date: October 25, 2019	Name: Michael W. Eller
	Title: President
	(Principal Accounting Officer)

EX-31 2 ex311.htm CERTIFICATION Certification

Exhibit 31.1

CERTIFICATION

I, Michael Eller, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Electronic Systems Technology, 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 (fourth 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 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:

(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.

/s/ Michael Eller

Michael Eller

President

(Chief Executive Officer)

Date: October 25, 2019

A signed original of this written statement has been provided to the registrant and will be retained by the registrant to be furnished to the Securities and Exchange Commission or its staff upon request.

EX-31 3 ex312.htm CERTIFICATION Certification

Exhibit 31.2

CERTIFICATION

I, Michael Eller, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Electronic Systems Technology, Inc.;

(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.

/s/ Michael Eller

Michael Eller

President

Principal Accounting Officer

Date: October 25, 2019

EX-32 4 ex321.htm CERTIFICATION Exhibit 32

Exhibit 32.1 – CEO Certification

CERTIFICATION

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
(18 U.S.C. 1350)

In connection with the quarterly report of Electronic Systems Technology Inc. (the "Company") on Form 10-Q for the quarter ended September 30, 2019 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Michael Eller, 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 results of operations of the Company.

/s/ Michael Eller

Michael Eller

President

(Chief Executive Officer)

Date: October 25, 2019

This certification is being furnished to the Securities and Exchange Commission as an exhibit to the Quarterly Report and shall not be deemed filed by the Company for purposes of §18 of the Securities Exchange Act of 1934, as amended; and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

A signed original of this written statement has been provided to the Registrant and will be retained by the Registrant to be furnished to the Securities and Exchange Commission or its staff upon request.

EX-32 5 ex322.htm CERTIFICATION Exhibit 32

Exhibit 32.2 – CFO Certification

CERTIFICATION

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
(18 U.S.C. 1350)

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 results of operations of the Company.

/s/ Michael Eller

Michael Eller

President

(Principal Accounting Officer)

Date: October 25, 2019

This certification is being furnished to the Securities and Exchange Commission as an exhibit to the Quarterly Report and shall not be deemed filed by the Company for purposes of §18 of the Securities Exchange Act of 1934, as amended.; and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

EX-101.INS 6 elst-20190930.xml 0000752294 --12-31 Electronic Systems Technology Inc 10-Q 2019-09-30 NONE Non-accelerated Filer Yes Yes false true false WA 000-27793 91-1238077 415 N. Quay St. Bldg B1 Kennewick WA 99336 509 735-9092 Common Stock, $0.001 par value ELST 4946502 false 2019 Q3 true false

NOTE 3 - EARNINGS (LOSS) PER SHARE   Basic and diluted earnings per share are calculated by dividing net income (loss) by the weighted average number of common shares outstandingbasic and diluted.  For the nine month period ending September 30, 2019 and the three and nine month periods ending September 30, 2018, all outstanding stock options (Note 4) were excluded from the computation of diluted loss per share because they were anti-dilutive due to net losses in those periods. For the three month period ending September 30, 2019, the calculation of the weighted average number of common shares outstandingdiluted included the common stock equivalents of the outstanding stock options.

The Companys product revenues are derived from sales of industrial wireless products and accessories such as antennas, power supplies and cable assemblies. The Company also provides direct site support and engineering services to customers, such as repair and upgrade of its products

348419 271976 23496 27027 978290 1021153 163053 57591

70035 0.2000 43616 0.1500 44341 0.1200

152450 0.1300 240659 0.2200

The Company leases its facilities from a port authority for $5,542 per month for three years, expiring in September 2020, with annual increases based upon the Consumer Price Index.

NOTE 7 STOCK REPURCHASE   On January 13, 2016, the Companys Board of Directors approved a resolution authorizing the repurchase of up to $100,000 of the Companys common stock at the price of $0.38 per share. The Companys share repurchase program does not obligate it to acquire any specific number of shares. On March 2, 2016, the Companys Board of Director approved a resolution authorizing the repurchase of an additional $150,000 of the Companys common stock at the price of $0.38 per share. Under the program (the Stock Repurchase Plan), shares may be repurchased in open market transactions, complying with Rule 10b5-1 and Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the Exchange Act). Shares repurchased are retired. During the three-month period ended September 30, 2019 and 2018, no shares were repurchased. During the nine-month period ended September 30, 2019, the Company repurchased 39,246 shares for $14,920; no shares were repurchased in the nine month period ended September 30, 2018. Since inception of the Stock Repurchase Plan, the Company has repurchased 212,165 shares for a total of $80,622 through September 30, 2019 and $169,378 of the original $250,000 approved by the board remains to be utilized for share repurchases.

On January 13, 2016, the Companys Board of Directors approved a resolution authorizing the repurchase of up to $100,000 of the Companys common stock at the price of $0.38 per share. The Companys share repurchase program does not obligate it to acquire any specific number of shares. On March 2, 2016, the Companys Board of Director approved a resolution authorizing the repurchase of an additional $150,000 of the Companys common stock at the price of $0.38 per share.

Note 4 - Stock Options: Schedule of Stock Options Roll Forward (Details)	Sep. 30, 2019 USD ($) $ / shares shares	Dec. 31, 2018 $ / shares shares
Details
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number \| shares	120,000	120,000
Weighted Average Exercise Price \| $ / shares	$ 0.40	$ 0.40
Weighted Average Remaining Life Years	1.1
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value \| $	$ 2,400

XML 13 R2.htm IDEA: XBRL DOCUMENT

Electronic Systems Technology, Inc. Balance Sheets (Interim period unaudited) - USD ($)

Sep. 30, 2019

Dec. 31, 2018

Current assets

Cash and cash equivalents

$ 199,615

$ 323,667

Certificates of deposit

800,000

900,000

Accounts receivable, net

Accrued interest receivable

Property and equipment, net of depreciation

14,390

20,368

Right to use - Lease, net of amortization

^[1]

Current liabilities

Accrued wages and bonus

Lease liability, current portion

^[1]

52,855

Other accrued liabilities

5,418

2,514

Total current liabilities

Stockholders' equity

Additional paid-in capital

Total stockholders' equity

1,888,976

1,953,171

Total liabilities and stockholders' equity

XML 14 R6.htm IDEA: XBRL DOCUMENT

ELECTRONIC SYSTEMS TECHNOLOGY, INC. STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities
Net loss	$ (49,275)	$ (68,450)
Noncash items included in net loss
Depreciation	5,978	8,307
Changes in operating assets and liabilities
Accounts receivable, net	(114,097)	(17,332)
Inventories	3,348	111,791
Accrued interest receivable	3,308	(4,442)
Prepaid expenses	(529)	(16,567)
Accounts payable	(58,752)	41,014
Refundable deposits	(8,240)	(3,937)
Other accrued liabilities	9,127	(2,079)
NET CASH PROVIDED (USED) IN OPERATING ACTIVITIES	(209,132)	48,305
CASH FLOWS FROM INVESTING ACTIVITIES:
Certificates of deposit redeemed	1,800,000	100,000
Certificates of deposit purchased	(1,700,000)
NET CASH PROVIDED FROM INVESTING ACTIVITIES	100,000	100,000
CASH FLOWS USED IN FINANCING ACTIVITIES:
Repurchase of shares of common stock	(14,920)	0
NET CASH USED IN FINANCING ACTIVITIES	(14,920)	0
NET INCREASE IN CASH AND CASH EQUIVALENTS	(124,052)	148,305
Cash and cash equivalents at beginning of period	323,667	208,101
Cash and cash equivalents at end of period	$ 199,615	$ 356,406

XML 15 R25.htm IDEA: XBRL DOCUMENT

Note 6 - Leases: Schedule of distribution of lease expense (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Details
Cost of sales, lease expense	$ 3,325	$ 3,267	$ 9,976	$ 9,801
Cost of sales, general and administrative	3,325	3,267	9,976	9,801
Cost of sales, research and development	3,325	3,267	9,976	9,801
Cost of sales, marketing and sales	6,652	6,534	19,952	19,602
Operating lease expense distributied	$ 16,627	$ 16,335	$ 49,880	$ 49,005

XML 16 R13.htm IDEA: XBRL DOCUMENT

Note 7 - Stock Repurchase

9 Months Ended

Sep. 30, 2019

Notes

Note 7 - Stock Repurchase

NOTE 7 – STOCK REPURCHASE

XML 17 R17.htm IDEA: XBRL DOCUMENT

Note 6 - Leases: Schedule of distribution of lease expense (Tables)

9 Months Ended

Sep. 30, 2019

Tables/Schedules

Schedule of distribution of lease expense

	Three Months ended September 30, 2019	Three Months ended September 30, 2018	Nine Months ended September 30, 2019	Nine Months ended September 30, 2018
Cost of sales	$ 3,325	$ 3,267	$ 9,976	$ 9,801
General and administrative	3,325	3,267	9,976	9,801
Research and development	3,325	3,267	9,976	9,801
Marketing and sales	6,652	6,534	19,952	19,602
Total	$ 16,627	$ 16,335	$ 49,880	$ 49,005

Note 6 - Leases

9 Months Ended

Sep. 30, 2019

Notes

Note 6 - Leases

NOTE 6 - LEASES

The Company leases its facilities from a port authority for $5,542 per month for three years, expiring in September 2020, with annual increases based upon the Consumer Price Index.

	Three Months ended September 30, 2019	Three Months ended September 30, 2018	Nine Months ended September 30, 2019	Nine Months ended September 30, 2018
Cost of sales	$ 3,325	$ 3,267	$ 9,976	$ 9,801
General and administrative	3,325	3,267	9,976	9,801
Research and development	3,325	3,267	9,976	9,801
Marketing and sales	6,652	6,534	19,952	19,602
Total	$ 16,627	$ 16,335	$ 49,880	$ 49,005

As of September 30, 2019, total future lease payments are as follows:

For the 12 months ended September 30,
2019	$	14,993
2020		44,981
Total		59,974
Less imputed interest		(7,119)
Net lease liability		52,855
Current portion		52,855
Long-term portion	$	-

XML 20 R16.htm IDEA: XBRL DOCUMENT

Note 5 - Revenue: Revenue from External Customers by Products and Services (Tables)

Revenue from External Customers by Products and Services

	2019 Sales	2019 % of Total Sales	2018 Sales	2018 % of Total Sales
Domestic customer A	$70,035	20%	$43,616	15%
Domestic customer B	$44,341	12%

	2019 Sales	2019 % of Total Sales	2018 Sales	2018 % of Total Sales
Domestic customer A	152,450	13%	240,659	22%

XML 21 R20.htm IDEA: XBRL DOCUMENT

Note 2 - Inventories: Schedule of Inventory, Current (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Details
Inventory, Parts and Components, Net of Reserves	$ 127,049	$ 133,809
Inventory, Work in Process, Gross	289,679	243,081
Inventory, Finished Goods, Gross	294,919	338,105
Inventories	$ 711,647	$ 714,995

XML 22 R3.htm IDEA: XBRL DOCUMENT

Electronic Systems Technology, Inc. Balance Sheets (Interim period unaudited) - Parenthetical - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Details
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	50,000,000	50,000,000
Common Stock, Shares, Issued	4,946,502	4,985,748
Common Stock, Shares, Outstanding	4,946,502	4,985,748

XML 23 R7.htm IDEA: XBRL DOCUMENT

Note 1 - Basis of Presentation

9 Months Ended

Sep. 30, 2019

Notes

Note 1 - Basis of Presentation

NOTE 1 - BASIS OF PRESENTATION

Accounting Standards Updates Adopted

Accounting Standards Updates to Become Effective in Future Periods

XML 24 R24.htm IDEA: XBRL DOCUMENT

Note 6 - Leases (Details) - USD ($)	3 Months Ended		9 Months Ended
Note 6 - Leases (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Details
Description of operating lease			The Company leases its facilities from a port authority for $5,542 per month for three years, expiring in September 2020, with annual increases based upon the Consumer Price Index.
Operating lease expense distributed	$ 16,627	$ 16,335	$ 49,880	$ 49,005

XML 25 R10.htm IDEA: XBRL DOCUMENT

Note 4 - Stock Options

9 Months Ended

Sep. 30, 2019

Notes

Note 4 - Stock Options

NOTE 4 - STOCK OPTIONS

A summary of option activity during the quarter ended September 30, 2019 is as follows:

	Number Outstanding	Weighted-Average Exercise Price Per Share	Weighted-Average Remaining Life (Years)	Approximate Aggregate Intrinsic Value
Outstanding and Exercisable at December 31, 2018	120,000	$0.40
Granted	-	-
Expired	-	-
Outstanding and Exercisable at September 30, 2019	120,000	$0.40	1.1	$2,400

XML 26 R14.htm IDEA: XBRL DOCUMENT

Note 2 - Inventories: Schedule of Inventory, Current (Tables)

9 Months Ended

Sep. 30, 2019

Tables/Schedules

Schedule of Inventory, Current

	September 30, 2019	December 31, 2018
Parts	$ 127,049	$ 133,809
Work in progress	289,679	243,081
Finished goods	294,919	338,105
Total inventories	$ 711,647	$ 714,995

XML 27 R18.htm IDEA: XBRL DOCUMENT

Note 6 - Leases: Future Less Payments (Tables)

For the 12 months ended September 30,
2019	$	14,993
2020		44,981
Total		59,974
Less imputed interest		(7,119)
Net lease liability		52,855
Current portion		52,855
Long-term portion	$	-

Note 3 - Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2019

Notes

Note 3 - Earnings (Loss) Per Share

NOTE 3 - EARNINGS (LOSS) PER SHARE

Note 5 - Revenue (Details) - USD ($)	3 Months Ended		9 Months Ended
Note 5 - Revenue (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting Information, Description of Products and Services			The Company’s product revenues are derived from sales of industrial wireless products and accessories such as antennas, power supplies and cable assemblies. The Company also provides direct site support and engineering services to customers, such as repair and upgrade of its products
Sales, net	$ 371,915	$ 299,003	$ 1,141,343	$ 1,078,744
Domestic sales revenues	348,419	271,976	978,290	1,021,153
Foreign sales	23,496	27,027	163,053	57,591
Manufactured Product, Other
Sales, net	369,615	293,154	1,106,066	1,062,346
Technology Service
Sales, net	$ 2,300	$ 5,849	$ 35,277	$ 16,398

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2019	Oct. 11, 2019
Details
Registrant CIK	0000752294
Fiscal Year End	--12-31
Registrant Name	Electronic Systems Technology Inc
SEC Form	10-Q
Period End date	Sep. 30, 2019
Trading Symbol	ELST
Trading Exchange	NONE
Tax Identification Number (TIN)	91-1238077
Number of common stock shares outstanding		4,946,502
Filer Category	Non-accelerated Filer
Current with reporting	Yes
Interactive Data Current	Yes
Shell Company	false
Small Business	true
Emerging Growth Company	false
Entity Incorporation, State or Country Code	WA
Entity File Number	000-27793
Entity Address, Address Line One	415 N. Quay St. Bldg B1
Entity Address, City or Town	Kennewick
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	99336
City Area Code	509
Local Phone Number	735-9092
Title of 12(g) Security	Common Stock, $0.001 par value
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Document Quarterly Report	true
Document Transition Report	false

ELECTRONIC SYSTEMS TECHNOLOGY, INC. STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Common Stock	Additional Paid-in Capital	Retained Earnings	Total
Equity balance at Dec. 31, 2017		$ 944,161	$ 1,120,244	$ 2,069,391
Shares outstanding at Dec. 31, 2017	4,986,048
Net Income/(Loss)	$ 0	0	(103,793)	(103,793)
Shares outstanding at Mar. 31, 2018	4,986,048
Equity balance at Mar. 31, 2018		944,161	1,016,451	1,965,598
Net Income/(Loss)	$ 0	0	68,878	68,678
Shares outstanding at Jun. 30, 2018	4,986,048
Equity balance at Jun. 30, 2018		944,161	1,085,329	2,034,476
Net Income/(Loss)	$ 0	0	(33,535)	(33,535)
Shares outstanding at Sep. 30, 2018	4,986,048
Equity balance at Sep. 30, 2018		944,161	1,051,794	2,000,941
Equity balance at Dec. 31, 2018		944,040	1,004,145	1,953,171
Shares outstanding at Dec. 31, 2018	4,985,748
Common stock repurchased	(39,246)
Common stock repurchased		(14,881)	0	(14,920)
Net Income/(Loss)	$ 0	0	(54,825)	(54,825)
Shares outstanding at Mar. 31, 2019	4,946,502
Equity balance at Mar. 31, 2019		929,159	943,320	1,883,426
Equity balance at Dec. 31, 2018		944,040	1,004,145	$ 1,953,171
Shares outstanding at Dec. 31, 2018	4,985,748
Common stock repurchased				39,246
Common stock repurchased				$ (14,920)
Shares outstanding at Sep. 30, 2019	4,946,502
Equity balance at Sep. 30, 2019		929,159	954,870	1,888,976
Equity balance at Mar. 31, 2019		929,159	943,320	1,883,426
Shares outstanding at Mar. 31, 2019	4,946,502
Net Income/(Loss)			(6,219)	(6,219)
Shares outstanding at Jun. 30, 2019	4,946,502
Equity balance at Jun. 30, 2019		929,159	943,101	1,877,207
Net Income/(Loss)	$ 0	0	11,769	11,769
Shares outstanding at Sep. 30, 2019	4,946,502
Equity balance at Sep. 30, 2019		$ 929,159	$ 954,870	$ 1,888,976

Note 7 - Stock Repurchase (Details) - USD ($)	3 Months Ended	9 Months Ended	45 Months Ended
Note 7 - Stock Repurchase (Details) - USD ($)	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2019	Jan. 13, 2016
Details
Stock repurchase program		On January 13, 2016, the Company’s Board of Directors approved a resolution authorizing the repurchase of up to $100,000 of the Company’s common stock at the price of $0.38 per share. The Company’s share repurchase program does not obligate it to acquire any specific number of shares. On March 2, 2016, the Company’s Board of Director approved a resolution authorizing the repurchase of an additional $150,000 of the Company’s common stock at the price of $0.38 per share.
Common stock repurchased		39,246	212,165
Common stock repurchased	$ 14,920	$ 14,920	$ 80,622
Original Share Repurchase Authorized, Amount Remaining		$ 169,378	$ 169,378
Original Share Repurchase Authorized				$ 250,000

Note 1 - Basis of Presentation (Details)	9 Months Ended
Note 1 - Basis of Presentation (Details)	Sep. 30, 2019
Details
New Accounting Pronouncements and Changes in Accounting Principles	Financial
Description of New Accounting Pronouncements Not yet Adopted	FASB