0001548123-20-000114.txt : 20200814 0001548123-20-000114.hdr.sgml : 20200814 20200814160734 ACCESSION NUMBER: 0001548123-20-000114 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 43 CONFORMED PERIOD OF REPORT: 20200630 FILED AS OF DATE: 20200814 DATE AS OF CHANGE: 20200814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FLEXPOINT SENSOR SYSTEMS INC CENTRAL INDEX KEY: 0000925660 STANDARD INDUSTRIAL CLASSIFICATION: MEASURING & CONTROLLING DEVICES, NEC [3829] IRS NUMBER: 870620425 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-24368 FILM NUMBER: 201105058 BUSINESS ADDRESS: STREET 1: 12184 S. BUSINESS PARK DRIVE STREET 2: SUITE C CITY: DRAPER STATE: UT ZIP: 84020 BUSINESS PHONE: 801-568-5111 MAIL ADDRESS: STREET 1: 12184 S. BUSINESS PARK DRIVE STREET 2: SUITE C CITY: DRAPER STATE: UT ZIP: 84020 FORMER COMPANY: FORMER CONFORMED NAME: MICROPOINT INC DATE OF NAME CHANGE: 19980424 FORMER COMPANY: FORMER CONFORMED NAME: NANOTECH CORP DATE OF NAME CHANGE: 19940620 10-Q 1 f2020flxt10-q-q2v3clean.htm QUARTERLY REPORT ON FORM 10Q FOR THE QUARTER ENDED JUNE 30, 2020 10QSB 1 flx06q3e

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-Q


[X]

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For quarterly period ended June 30, 2020


[   ]

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


For the transition period from _____ to _____


Commission file number: No. 0-24368


FLEXPOINT SENSOR SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

Delaware

87-0620425

 (State of incorporation)

(I.R.S.  Employer Identification No.)

     

12184 South Business Park Drive, Suite C, Draper, Utah  84020

(Address of principal executive offices)


801-568-5111

(Registrant’s telephone number)


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

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

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 [X]   No [  ]


Indicate by check mark whether the registrant has submitted electronically 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 [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 [  ]


Non-accelerated filer [X]

Accelerated filer [  ]

Smaller 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.                           [   ]





1




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

            Yes [   ]     No [X]


The number of shares outstanding of the registrant’s common stock was 99,713,464 as of August 14, 2020.



2




TABLE OF CONTENTS


PART I: FINANCIAL INFORMATION


Item 1.

Condensed Financial Statements

3

 

 

 

Condensed Consolidated Balance Sheets (Unaudited) at June 30, 2020 and

4

 

 

December 31, 2019

 

 

 

 

Condensed Consolidated Statements of Operations for the Three and Six

5

 

 

Months Ended June 30, 2020 and 2019 (Unaudited)

 

 

 

 

 

 

Condensed Statement of Stockholders’ Equity for the Three and Six Months

6

 

 

Ended June 30, 2020 and 2019 (Unaudited)

 

 

 

 

Condensed Consolidated Statements of Cash Flows  for the

7

 

 

Six Months Ended June 30, 2020 and 2019 (Unaudited)

 

 

 

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

8

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

14

 

 

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 1A.

Risk Factors

20

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

20

 

 

 

Item 3.

Defaults upon Senior Securities

21

 

 

 

Item 4

Mine Safety Disclosures

21

 

 

 

Item 5.

Other Information

21

 

 

 

Item 6.

Exhibits

21

 

 

Signatures

22


PART I - FINANCIAL INFORMATION


ITEM 1.  CONDENSED FINANCIAL STATEMENTS

The financial information set forth below with respect to our condensed consolidated financial position as of June 30, 2020, the condensed consolidated statements of operations for the three and six months ended June 30, 2020 and 2019, the condensed consolidated statement of stockholders’ equity for the three and six months ended June 30, 2020 and 2019 and the condensed consolidated statements of cash flows for the six months ended June 30, 2020 and 2019 are unaudited. The information presented below for the condensed consolidated financial position as of December 31, 2019 was audited and reported as part of our annual filing of our Form 10-K, filed with Securities and Exchange Commission on March 30, 2020.  The results of operations for the three and six months ended June 30, 2020 and 2019, respectively, are not necessarily indicative of results to be expected for any subsequent periods.



3




FLEXPOINT SENSOR SYSTEMS, INC. AND SUBSIDIARIES

 CONDENSED CONSOLIDATED BALANCE SHEETS


 

 June 30,

2020 (Unaudited)

 

December 31, 2019

ASSETS

 

 

 

Current Assets

 

 

 

Cash and cash equivalents

$                  -

 

 $        170,004

Accounts receivable, net of allowance for bad debts of $114,991

    and $114,991

67,364

 

            26,471

Deposits and prepaid expenses

30,664

 

            26,517

Total Current Assets

98,029

 

          222,992

Long-Term Deposits

6,550

 

              6,550

Property and Equipment, net of accumulated depreciation

 

 

 

of $596,604 and $593,484

                2,570

 

             3,690

Goodwill

4,896,917

 

        4,896,917

Total Assets

$   5,004,066

 

 $     5,130,149

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

Current Liabilities

 

 

 

Bank overdraft

$          6,381

 

$                   -

Accounts payable

       218,547

 

        177,647

Accounts payable – related party

-

 

2,197

Accrued liabilities

1,819,890

 

         1,616,951

Note payable, current

32,081

 

-

Convertible notes payable, net of discount of $-0- and $-0-

930,000

 

         930,000

Convertible notes payable to related party, net of discount of  $-0- and $-0-

218,513

 

            -

Total Current Liabilities

3,225,412

 

    2,726,795

Long-term Liabilities

 

 

 

Long-term notes payable, net of current portion

27,419

 

-

Convertible notes payable to related party, net of discount of $-0- and $-0-

-

 

218,513

Total Liabilities

3,252,831

 

2,945,308

 

 

 

 

Stockholders' Equity

 

 

 

Preferred stock – $0.001 par value; 1,000,000 shares authorized;

 

 

 

no shares issued or outstanding

                  -

 

                  -

Common stock – $0.001 par value; 200,000,000 shares authorized;

 

 

99,713,464 shares issued and outstanding

99,713

 

            99,713

Additional paid-in capital

30,872,733

 

     30,872,733

Accumulated deficit

(29,211,211)

 

    (28,787,605)

Total Stockholders' Equity

1,751,235

 

        2,184,841

Total Liabilities and Stockholders' Equity

$    5,004,066

 

 $     5,130,149


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



4





FLEXPOINT SENSOR SYSTEMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)


 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months

 

For the Six Months

 

 

Ended June 30,

 

Ended June 30,

 

 

2020

 

2019

 

2020

 

2019

 

 

 

 

 

 

 

 

 

Design, Contract and Testing  Revenue

 

$     42,195

 

$       572,446

 

$       81,298

 

$       637,041

 

 

 

 

 

 

 

 

 

Operating Costs and Expenses

 

 

 

 

 

 

 

 

Amortization of patents and proprietary technology

 

 

6,823

 

-

 

13,645

 Cost of revenue

 

    21,333

 

    9,868

 

29,502

 

20,661

Administrative and marketing expense

 

         89,868

 

         129,560

 

         260,259

 

         253,486

Research and development expense

 

           70,820

 

           74,306

 

         147,619

 

         153,458

 

 

 

 

 

 

 

 

 

Total Operating Costs and Expenses

 

         182,021

 

         220,557

 

         437,380

 

         441,250

 

 

 

 

 

 

 

 

 

Net Operating Income (Loss)

 

(139,826)

 

351,889

 

(356,082)

 

195,791

 

 

 

 

 

 

 

 

 

Other Income and Expenses

 

 

 

 

 

 

 

 

Interest expense

 

        (39,153)

 

        (80,583)

 

   (77,792)

 

   (156,782)

Interest income

 

36

 

11

 

268

 

23

Gain (Loss) on extinguishment of debt

 

-

 

90,325

 

-

 

90,325

Gain(Loss) on derivative

 

-

 

(254,157)

 

         -

 

         (288,694)

 

 

 

 

 

 

 

 

 

Net Other Income (Expense)

 

        (39,117)

 

        (244,404)

 

        (77,524)

 

        (355,128)

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$    (178,943)

 

$    107,485

 

$    (433,606)

 

$    (159,337)

 

 

 

 

 

 

 

 

 

Basic and Diluted Earnings per Common Share

$           (0.00)

 

$        (0.00)

 

$          (0.00)

 

$           (0.00)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted Weighted-Average Common Shares

 

 

 

 

 

 

 

 

Outstanding

 

    99,713,464

 

    95,704,123

 

    99,713,464

 

    94,291,641


 






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



5





FLEXPOINT SENSOR SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the Three and Six Months Ended June 30, 2020 and 2019



 

 

 

 

 

 

 

 

Common

Stock

Additional

 

 

Total

 

 

 

Paid-in

 

Accumulated

Stockholder

 

Shares

Amount

Capital

 

Deficit

Equity

Balance - December 31, 2019

99,713,464

$ 99,713

$ 30,872,733

 

$  (28,787,605)

$  2,184,841

 

 

 

 

 

 

 

Net loss – three months ended

March 31, 2020

-

-

-

 

(254,663)

(254,663)

 

 

 

 

 

 

 

Balance – March 31, 2020

99,713,464

99,713

30,872,733

 

(29,042,268)

1,930,178

 

 

 

 

 

 

 

Net loss – three months ended

June 30, 2020

-

-

-

 

(178,943)

(178,943)

Balance – June 30, 2020

 99,713,464

$ 99,713

   $30,872,733

 

 $(29,221,211)

    $1,751,235


 

 

 

 

 

 

 

 

Common

Stock

Additional

 

 

Total

 

 

 

Paid-in

 

Accumulated

Stockholder

 

Shares

Amount

Capital

 

Deficit

Equity

Balance - December 31, 2018

92,863,464

$ 92,863

$ 29,785,568

 

$  (28,212,547)

$  1,665,884

 

 

 

 

 

 

 

Net loss – three months ended

March 31, 2019

-

-

-

 

(266,822)

(266,822)

 

 

 

 

 

 

 

Balance – March 31, 2019

92,863,464

92,863

29,785,568

 

(28,479,369)

1,399,062

 

 

 

 

 

 

 

Conversion of notes payable to common stock

6,850,000

6,850

332,237

 

-

339,087

Net income – three months ended

June 30, 2019

-

-

-

 

107,485

107,485

Balance – June 30, 2019

 99,713,464

$ 99,713

   $30,117,805

 

 $(28,371,884)

    $1,845,634





















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





6




FLEXPOINT SENSOR SYSTEMS, INC. AND SUBSIDIARIES

 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)


 

For the Six Months

 

Ended June 30,

 

2020

 

2019

 Cash Flows from Operating Activities: 

 

 

 

    Net loss

$   (433,606)

 

$   (159,337)

    Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

        Amortization of patents and proprietary technology

-

 

13,644

        Amortization of discount on note payable

-

 

66,685

        Depreciation

1,120

 

1,120

        Gain on settlement of debt

-

 

(90,325)

        Gain (loss) on change in fair value of derivative liabilities

-

 

288,694

   Changes in operating assets and liabilities:

 

 

 

        Accounts receivable

(40,893)

 

3,578

        Prepaid expenses and other assets

(4,148)

 

2,537

        Accounts payable

  40,900

 

(68,824)

        Accounts payable – related parties

(2,197)

 

19,000

        Accrued liabilities

202,939

 

188,873

 Net Cash Provided by (Used) in Operating Activities 

(235,885)

 

265,645


 Cash Flows from Financing Activities:

 

 

 

        Proceeds from borrowings under note payable

59,500

 

-

           Proceeds from bank overdrafts

6,381   

-   

        Proceeds from borrowings under convertible note payable

-

 

100,000

 Net Cash Provided by Financing Activities 

65,881

 

100,000

 

 

 

 

 Net Change in Cash and Cash Equivalents

(170,004)

 

365,645

 Cash and Cash Equivalents at Beginning of Period

170,004

 

17,798

 Cash and Cash Equivalents at End of Period

$                   -

 

$    383,443

 

 

 

 

 Supplemental Cash Flow Information:

 

 

 

    Cash paid for income taxes

$                    -

 

$                -

    Cash paid for interest

$                    -

 

$                -

 

 

 

 

 Supplemental Disclosure on Noncash Investing and

   Financing Activities

 

 

 

    Recognition of discounts on convertible notes payable

$                     -

 

$       86,332

    Conversion of note payable and accrued interest to common stock

$                     -

 

$     410,890

    Conversion of due to related party to convertible notes

$                     -

 

$      39 ,000

    Gain on settlement of debt

$                     -

 

$       90,325









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



7




FLEXPOINT SENSOR SYSTEMS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)


NOTE 1SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Condensed Consolidated Interim Financial Statements – The accompanying unaudited condensed consolidated financial statements include the accounts of Flexpoint Sensor Systems, Inc. (the “Company”). These financial statements are condensed and, therefore, do not include all disclosures normally required by accounting principles generally accepted in the United States of America. Therefore, these statements should be read in conjunction with the most recent annual consolidated financial statements of Flexpoint Sensor Systems, Inc. for the year ended December 31, 2019 included in the Company’s Form 10-K filed with the Securities and Exchange Commission on March 30, 2020. In particular, the Company’s significant accounting principles were presented as Note 1 to the Consolidated Financial Statements in that report. In the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying condensed consolidated financial statements and consist of only normal recurring adjustments. The results of operations presented in the accompanying condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020.


Nature of Operations – Flexpoint Sensor Systems, Inc. (the Company) is located in Draper, Utah. The Company’s activities to date have included acquiring equipment and enhancing technology, obtaining financing, limited production and seeking long-term manufacturing contracts. The Company’s operations are in designing, engineering, manufacturing and selling sensor technology and equipment using flexible potentiometer technology. Through June 30, 2020, the Company continued to manufacture products and sensors to fill customer orders and provide engineering and design work.

 

The recent COVID 19 Pandemic (“the Pandemic”) has had a dramatic effect on our business as well as the business of our customers.  The wide ranging effects on the World Wide business market has led to a general reluctance for businesses to move forward with entering into major commitments until their future markets have been clarified. Because of this, we have experienced a significant slowdown in the size and number of orders received and, while we cannot predict when the influence of the Pandemic will end, we expect that orders will return to their former levels and increase following a return to normal business operations. 


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.


Cash and Cash Equivalents – Cash and cash equivalents are considered to be cash and highly liquid securities with original maturities of three months or less.


Fair Value MeasurementsThe fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk, including the party’s own credit risk.

 

Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories:

 

Level 1: Quoted market prices in active markets for identical assets or liabilities.

 

Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.

 

Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities.

 

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value



8




hierarchy within which the fair value measurement is disclosed and is determined based on the lowest level input that is significant to the fair value measurement.

 

The carrying value of the Company’s cash, accounts payable, short-term borrowings (including convertible notes payable), and other current assets and liabilities approximate fair value because of their short-term maturity.

 

The Company has classified the inputs used in valuing its derivative liabilities as Level 3 inputs. The Company valued its derivatives using the binomial lattice model. While the Company believes that its valuation methods are appropriate and consistent with other market participants, it recognizes that the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. The primary assumptions that would significantly affect the fair values using the methods discussed below are that of volatility and market price of the underlying common stock of the Company.


Accounts Receivable – Trade accounts receivable are recorded at the time product is shipped or services are provided including any shipping and handling fees. Contracts associated with design and development engineering generally require a deposit of 50% of the quoted price prior to the commencement of work. The deposit is considered deferred income until the entire project is completed and accepted by the customer, at which time the entire contract price is billed to the customer and the deposit applied. The Company has established an allowance for bad debts based on a historical experience and an analysis of risk associated with the account balances.  The balance in the allowance account was $114,991 and $114,991 in the periods ended June 30, 2020 and December 31, 2019, respectively.  


Inventories – The Company does not currently have inventory.  However, as production levels increase inventories will be carried on the balance sheet.  Inventories will be stated at the lower of cost or market or net realizable value. Cost is determined by using the first in, first out (FIFO) method.  


Property and Equipment Property and equipment are stated at cost.  Additions and major improvements are capitalized while maintenance and repairs are charged to operations.  Upon trade-in, sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is recognized. Depreciation is computed using the straight-line method and is recognized over the estimated useful lives of the property and equipment, which range from three to ten years.


Valuation of Long-lived Assets – The carrying values of the Company’s long-lived assets are reviewed for impairment annually and whenever events or changes in circumstances indicate that they may not be recoverable. When projections indicate that the carrying value of the long-lived asset is not recoverable, the carrying value is reduced by the estimated excess of the carrying value over the projected discounted cash flows. Under similar analysis no impairment charge was taken during the six-month period ended June 30, 2020 and during the year ended December 31, 2019.  Impairment tests will be conducted on an annual basis and, should they indicate a carrying value in excess of fair value, additional impairment charges may be required.


Intangible Assets – Costs to obtain or develop patents are capitalized and amortized over the remaining life of the patents, and technology rights are amortized over their estimated useful lives. The Company currently has the right to several patents and proprietary technology.  Patents and technology are amortized from the date the Company acquires or is awarded the patent or technology right, 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.  Under similar analysis there was no impairment charge taken during the six-month period ended June 30, 2020 and during year ended December 31, 2019.


Research and Development – Research and development costs are recognized as an expense during the period incurred, which is until the conceptual formulation, design, and testing of a process is completed and the process has been determined to be commercially viable.


Lease Obligations – While the Company has adopted ASC 842 the Company has no leases at the date of this report that are required to be reported under ASC 842.  As the Company enters into such leases it will record obligations under all leases it has entered into pursuant to the reporting requirements under ASC 842, allocating such obligations between current and long term.  


Goodwill – Goodwill represents the excess of the Company’s reorganization value over the fair value of net assets of the Company upon emergence from bankruptcy. Goodwill is not amortized, but is tested for impairment annually, or



9




at interim periods when a triggering event occurs using a fair value approach. According to Accounting Standards Codification (or “ASC”) 350-20 Intangibles – Goodwill and Other, a fair-value-based test is applied at the overall Company level. The test compares the fair value of the Company to the carrying value of its net assets. This test requires various judgments and estimates. The fair value of the Company is allocated to the Company’s assets and liabilities based upon their fair values with the excess fair value allocated to goodwill. An impairment of goodwill is measured as the excess of the carrying amount of goodwill over the determined fair value.


Revenue Recognition – On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers, and all of the related amendments (“new revenue standard”).  We have applied the new revenue standard to all contracts as of the date of the initial adoption.  The new revenue standard establishes five steps whereby a transaction is analyzed to determine if revenue has been earned and can be recognized.  The adoption of the new revenue standard did not have any effect on our financial statements.  The vast majority of our sales are made to order, for which orders we require a deposit of 50% of the value of the order.  That amount is put in a customer deposit account until the entire order has been manufactured and shipped.  At the ship date, the Company has no further obligations under the contract and the revenue from the sale is recognized.


A part of our customer base is made up of international customers.  The table below allocates revenue between domestic and international customers.  The following table presents Flexpoint Sensor Systems revenues disaggregated by region and product type:


Three months ended:

 

June 30,

 

 

 

June 30,

 

 

 

2020

 

 

 

2019

 

 

 

Long-term

 

 

 

Long-term

 

 

 

Consumer

 

 

 

 

 

Consumer

 

 

Segments

 

 

Products

Contract

Total

 

 

 

Products

Contract

Total

Domestic

 

$

1,386

-

1,386

 

 

$

519,103

-

519,103

International

 

 

40,809

-

40,809

 

 

 

53,546

-

53,546

 

 

$

42,195

-

42,195

 

 

$

572,649

-

572,649

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Components

 

 

39,631

-

39,631

 

 

 

54,669

-

54,669

Engineering Services

 

 

2,564

-

2,564

 

 

 

67,980

-

67,980

Licensing fee

 

 

-

-

-

 

 

 

450,000

-

450,000

 

 

$

42,195

-

42,195

 

 

$

572,649

-

572,649


Six months ended:

 

 

June 30,

 

 

 

June 30,

 

 

 

2020

 

 

 

2019

 

 

 

Consumer

Long-term

 

 

 

 

Consumer

Long-term

 

Segments

 

 

Products

Contract

Total

 

 

 

Products

Contract

Total

Domestic

 

$

28,720

-

28,720

 

 

$

535,151

-

535,151

International

 

 

52,578

-

52,578

 

 

 

101,890

-

101,890

 

 

$

81,298

-

81,298

 

 

$

637,041

-

637,041

 

 

 

 

 

 

 

 

 

 

 

 

Components

 

 

60,735

-

60,735

 

 

 

112,638

-

112,638

Engineering Services

 

 

20,563

-

20,563

 

 

 

74,403

-

74,403

Licensing fee

 

 

-

-

-

 

 

 

450,000

-

450,000

 

 

$

81,298

-

81,298

 

 

$

637,041

-

637,041


Basic and Diluted Loss Per Share – Basic loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period.  Diluted loss per share is computed by dividing net loss by the weighted-average number of common shares and dilutive potential common shares outstanding during the period. At June 30, 2020 and 2019 there were outstanding common share equivalents (options and convertible notes payable) which amounted to 25,196,690 and 22,248,463 of common stock, respectively. These common share



10




equivalents were not included in the computation of diluted earnings per share for the six-month periods ended June 30, 2020 and 2019 as their effect would have been anti-dilutive, thereby decreasing loss per common share.


Concentrations and Credit Risk - The Company has a few major customers who represent a significant portion of revenue, accounts receivable and notes receivable.  During the six-month period ended June 30, 2020, four customers represented 85% of sales and three other customers represented 94% of accounts receivable.  The Company has a strong ongoing relationship with these customers with scheduled delivery extending through the year and does not believe this concentration poses a significant risk, as their products are based entirely on the Company’s technologies.  


Income Taxes - The Company accounts for income taxes in accordance with Statement of Financial Accounting Standards Board Accounting Codification (ASC) 740: Income Taxes.  Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the differences are expected to reverse.  Deferred tax assets will be reflected on the balance sheet when it is determined that it is more likely than not that the asset will be realized


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 2 – GOING CONCERN


The Company continues to accumulate significant operating losses and has an accumulated deficit of $29,221,211 at June 30, 2020.  These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.


Management is seeking additional funding to provide operating capital for its operations until such time as revenues are sufficient to sustain our level of operations.  However, there is no assurance that additional funding will be available on acceptable terms, if at all.


NOTE 3 – DERIVATIVE INSTRUMENTS


The Company had no derivative liability as of June 30, 2020 and December 31, 2019.  


During prior years, the Company issued convertible promissory notes which are convertible into common stock. Due to the Company’s lack of authorized shares necessary to settle all convertible instruments, in accordance with ASC 815-40-25, the Company determined that the conversion features related to these notes are derivative to settle all convertible instruments.  


The Company filed an amendment to its Articles of Incorporation during the fourth quarter of 2019, increasing the number of shares authorized, which authorization was approved by a vote of its shareholders.  The increased number of authorized shares would enable all convertible notes and stock options to be converted.  Therefore, the treatment of these financial instruments as derivatives is no longer required.

 

NOTE 4 – NOTES PAYABLE


The Company applied for and received a Small Business Administration loan under the Paycheck Protection Program in the amount of $59,500.  The loan was funded on April 30, 2020, bears an interest rate of 1% per annum and has a maturity date of April 30, 2025.  Under the terms of the borrowing it is expected that this entire loan amount will be forgiven at such time as the lending institution published the form under which the request for forgiveness of the loan can be filed.  The funds obtained under this loan were used for the payment of salaries, health insurance costs, rent and utilities, all of which expenses qualify for the loan forgiveness under the terms of the loan.




11




NOTE 5 – CONVERTIBLE NOTES PAYABLE


Convertible Note Payable


At June 30, 2020, there are notes outstanding with principal balances which total $930,000. Of the notes, $890,000 are convertible notes bearing a 10% annual rate of interest (with a 15% default rate) and are convertible into shares of common stock at the rate of $0.05 to $0.07 per share.  $40,000 is a convertible note entered into on August 8, 2011 with a former Company Director, at a rate of $0.20 per share.  That note was due on December 31, 2015, and bears a default interest rate of 10%.


Convertible Note Payable - Related Party


At June 30, 2020, there are notes outstanding with two directors of the Company with balances of $164,257 and $54,256, respectively.  The notes bear an 8% annual rate of interest with a 12% default rate, and are convertible into shares of restricted common stock. Of the notes, $114,513 is convertible into shares of restricted common stock at $0.07 per share and $104,000 of the notes are convertible at $0.06 per share.  All of these notes have a maturity date of March 31, 2021.


NOTE 6 STOCK OPTION PLANS


On August 25, 2005, the Board of Directors of the Company approved and adopted the 2005 Stock Incentive Plan (the Plan). The Plan became effective upon its adoption by the Board and continued in effect for ten years, terminating on August 25, 2015.  This plan was approved by the stockholders of the Company at their annual meeting of shareholders on November 22, 2005. Under the Plan, the exercise price for all options issued will not be less than the average quoted closing market price of the Company’s trading common stock for the thirty-day period immediately preceding the grant date plus a premium of ten percent. The maximum aggregate number of shares that may be awarded under the plan is 2,500,000 shares.  The Company continues to utilize the Black-Scholes option-pricing model for calculating the fair value of the options granted as defined by ASC Topic 718, which is an acceptable valuation approach under ASC 718. This model requires the input of subjective assumptions, including the expected price volatility of the underlying stock.


On August 24, 2015, the Board of Directors approved the issuance of options to purchase 2,185,000 shares of the Company’s common stock.  Of the total issued, 1,960,000 options were issued to replace options held by directors and employees, which were to expire, and 225,000 options were issued to new employees.  Of the options issued, 640,000 have an option price of $0.14 per share, 500,000 have an option price of $0.15 per share, 995,000 have an option price of $0.20 per share, and 50,000 have an option price of $0.25 per share.  Options issued as replacement options for shares surrendered shall have immediate vesting terms. Options which are not replacements vested over a two year four month period in equal installments on the last day of 2015, 2016 and 2017, respectively.  


Projected data related to the expected volatility and expected life of stock options is based upon historical and other information, and notably, the Company's common stock has limited trading history. Changes in these subjective assumptions can materially affect the fair value of the estimate, and therefore, the existing valuation models do not provide a precise measure of the fair value of the Company's employee stock options.


Between August 25, 2005 and August 25, 2019, the Company granted options to employees to purchase an aggregate 3,096,000 shares of common stock at exercise prices ranging from $0.15 to $2.07 per share.  The options all vested by December 31, 2017 and expire 10 years from the date of grant.  


As of the years ended December 31, 2005 through 2019, the Company recognized a total of $2,443,768 of stock-based compensation expense, which includes charges of $0 in 2019 and $9 in 2018, leaving $0 in unrecognized expense as of December 31, 2019. There were 2,185,000 and 2,185,000 employee stock options outstanding at June 30, 2020 and December 31, 2019, respectively.  




12




A summary of all employee options outstanding and exercisable under the plan as of June 30, 2020, and changes during the three months then ended is set forth below:


 

 

 

 

 

Options

Shares

Weighted Average Exercise Price

Weighted Average Remaining Contractual  Life (Years)

Aggregate Intrinsic Value

 

 

 

 

 

Outstanding at the beginning of period

         2,185,000

 $                0.17

             5.65

 $              --

   Granted

                     --

                             --

                   --

                 --

   Expired

                     --

                             --

                   --

                 --

   Forfeited

                     --

                             --

                   --

                 --

Outstanding at the end of Period

       2,185,000

 $                 0.17

             5.16

$               --

Exercisable at the end of Period

2,185,000

 $                 0.17

           5.16

$               --


NOTE 7 – CAPITAL STOCK


Preferred Stock – There are 1,000,000 shares of preferred stock with a par value of $0.001 per share authorized.  At June 30, 2020 and December 31, 2019, there were no shares of preferred stock issued or outstanding.


Common Stock – There are 200,000,000 shares of common stock with a par value of $0.001 per share authorized.  At June 30, 2020 and December 31, 2019, there were 99,713,464 shares of common stock issued and outstanding.  The Company issued no stock during the six months ended June 30, 2020.


NOTE 8 – COMMITMENTS AND CONTINGENCIES


The Company currently occupies approximately 12,548 square feet of office and manufacturing space from F.G.B.P. LLC.  The building is located in a business park in Draper, Utah that consists primarily of high tech manufacturing firms and is located adjacent to Utah’s main interstate highway.  The Company entered into a new lease in 2019 for this facility.  The lease entered into is a month-to-month lease with a 90-day termination clause and includes a basic lease payment as well as an additional component for building costs and taxes.  The basic lease rate for Year 1 is $12,000 a month; it increases 3% each year thereafter.  With the basic and additional component, the Company expects to pay a total lease payment of approximately $14,635 per month in 2020.  The Company evaluated the lease under the new lease accounting standard and determined that it was a short-term lease due to the month-to-month provision and the 90-day notice of termination clause.


NOTE 9 – RELATED PARTY TRANSACTIONS


At June 30, 2020, there was no amount payable to related parties.  At December 31, 2019, the Company had amounts of $2,197 payable to its Chief Executive Officer for expense reports which had been submitted for payment but were unpaid at December 31, 2019.  


In May 2019, the Company converted the amounts payable to officers to convertible notes in the amounts of $22,000 and $17,000.  The notes bear interest at the rate of 8% per annum with a default rate of 12%, are convertible into shares of common stock at $0.06 per share, and have a maturity date of March 31, 2021.


At June 30, 2020 and December 31, 2019, the Company had outstanding notes payable to an officer in the amount of $164,257 and outstanding notes payable to a director in the amount of $54,256.


NOTE 10 – SUBSEQUENT EVENTS


The Company has evaluated subsequent events pursuant to ASC Topic 855 and has determined that there are no events that require disclosure as of the date of issuance.


The majority of non-essential businesses are still closed or operating on a limited basis.  It is therefore anticipated that revenue will continue to be negatively impacted through at a minimum the third quarter of 2020.  Our ability to generate revenue will be dependent upon the pace at which businesses are allowed to resume operations.



13




In this quarterly report references to “Flexpoint", "the Company," “we,” “us,” and “our” refer to Flexpoint Sensor Systems, Inc. and its subsidiaries.


FORWARD LOOKING STATEMENTS


The U.S. Securities and Exchange Commission (“SEC”) encourages reporting companies to disclose forward-looking information so that investors can better understand future prospects and make informed investment decisions.  This report contains these types of statements. Words such as “may,” “expect,” “believe,” “anticipate,” “estimate,” “project,” or “continue” or comparable terminology used in connection with any discussion of future operating results or financial performance identify forward-looking statements.  You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report.  All forward-looking statements reflect our present expectation of future events and are subject to a number of important factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.



ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


EXECUTIVE OVERVIEW


Flexpoint Sensor Systems, Inc. is a company engaged principally in improving its unique sensor technology, expanding its suite of products, developing new sensor applications, obtaining financing and seeking long-term sustainable manufacturing contracts.  Our operations have not yet commenced to a commercially sustainable level and include designing, engineering, manufacturing and selling sensor technology and products featuring our Bend Sensor® technology and equipment.


The recent COVID 19 Pandemic (“the Pandemic”) has had a dramatic effect on our business as well as the business of our customers.  The wide ranging effects on the World Wide business market has led to a general reluctance for businesses to move forward with entering into major commitments until their future markets have been clarified. Because of this, we have experienced a significant slowdown in the size and number of orders received and, while we cannot predict when the influence of the Pandemic will end, we expect that orders will return to their former levels and increase following a return to normal business operations.  


On August 20, 2019 the Company announced the development of the world’s first digital bend sensor capable of automatically compensating for changes in the environment, thus guaranteeing consistent performance across temperature and humidity variables. Easily integrated into multiple applications, the data gathered by the sensor will be digitally converted and transmitted, enhancing performance.


The Bend Sensor has traditionally been offered in analog form, but most engineers prefer sensors with digital interfaces such as accelerometers. More attractive to online catalog distributors, Flexpoint’s Digital Bend Sensor (DBS) has an intuitive nature, is more easily integrated with existing products, simplifies design and more importantly, reduces time to market.  


The Company feels that with the ease and simplicity of the digital bend sensor technology, the soon to be released product will bring new opportunities and create various additional applications for Flexpoint’s Bend Sensor Technology.


On July 25, 2019  the Company announced that they had filed a provisional patent for the new “Swell Sensor” designed to detect and stop a Lithium ion or Lithium Polymer battery from charging or discharging, preventing a thermal runway; one of the major ways battery fires occur.


Li-ion and Li-polymer batteries are used today in everything from phones to electric cars. Flexpoint’s technology included in the provisional patent provides a method to protect these batteries, their products and those who use them every day, measuring the expansion or swelling of the battery effectively stopping a potentially dangerous state.




14




Batteries become over heated, over charged, or simply fail due to old age. When this occurs, it is possible for the inner cells of the battery to outgas a flammable electrolyte mixture, causing the battery to swell. The Flexpoint Sensor addresses the swollen battery effect, as batteries are designed to contain as a failsafe the measure of out gassing. The Flexpoint Swell Sensor detects the condition, effectively shutting down the short circuit.  Without this type of detection, some batteries can eventually reach temperatures over 1000º F. Designed to detect the dangerous expansion and stop a Lithium ion or Lithium polymer battery from charging or discharging, the Flexpoint battery expansion sensor was created to prevent thermal runaway—how most battery fires occur. The battery expansion sensor can detect a swollen battery and take appropriate action, effectively shutting it down and sending a notice to the user that the battery is no longer safe.


The Company is currently collaborating with three Fortune 100 companies involving the battery expansion sensor. The overall testing phases range from six to nine months. With confidentiality agreements in place, Flexpoint is now in development with these and other companies to integrate the Battery Expansion Sensor (BXS) into their products. Flexpoint Sensor Systems, Inc. has designed a low cost, viable solution.


During a conference call announcing second quarter 2019 operating results representatives of the Company announced that with the agreements that had been signed and the projects they were pursuing, it was transitioning from a development company to a sales and marketing company.  This represents a significant change for the Company.


On June 20, 2019, the Company announced our exclusive development and licensing agreement with Audio Technology company subVo, LLC introducing a new wave of near perfect sound reproduction for everyday smart and slim devices. Tracking movement in real time, the Bend Sensor® used in the subVo® system knows the exact position of the cone at any given moment, allowing for the amplifier to calibrate, correct, and produce near-perfect sound reproduction, with zero lag time. The Bend Sensor® provides low distortion, flat frequency response, and fast impulse response. In addition to the licensing agreement, the company received income for the previous work for the design and development of the system.


The Flexpoint Bend Sensor® technology will be utilized in subVo’s KlaraT® speaker compensation technology and software algorithm. The sensor, when added to, or printed directly onto the diaphragm of a speaker, enables perfect synergistic motion, sensing precise movements throughout the audible spectrum. The Bend Sensor works with the KlaraT proprietary software, allowing the feedback control and speaker protection algorithms to push speakers to their limits, without distortion or damage. This combined with the auto-calibration algorithm will remove all variability due to tolerances incurred in the manufacturing process, saving time and ultimately cost.  The KlaraT calibration compensates for changes in temperature, humidity, and wear of the speaker itself over time.


On October 18, 2018, the Company announced it had signed a five year manufacturing and supply agreement with Counted LLC.  Counted LLC conceived of a medication delivery monitoring system and dispensing monitoring system.  Flexpoint designed and produced the monitoring system with Flexpoint features, Flexpoint technology and Flexpoint designed electronics to track and report the dispensing of medications in real time.  The information has the potential to be transmitted to physicians, pharmacists and government agencies.  Prototypes have been built and successfully tested with additional production and testing continuing through 2019 and the first quarter of 2020. Currently Counted has announced that they do not have sufficient funding to continue with the project and the company is pursuing other avenues to provide the funding or transfer the technology to another entity.  


In the rapidly growing and emerging wearables space, Flexpoint has recently received additional purchase orders from multiple glove manufacturers across various market sub-segments, including medical, gaming and virtual reality. The “speed to market” commercialization plans of these companies are driving this increased order volume.  Flexpoint is aggressively going after this evolving market. The recent Pandemic has slowed the orders and, while we cannot predict when the influence of the Pandemic will end, we expect this pattern to continue and increase throughout the remainder of 2020 following a return to business.  In aggregate, Bend Sensor® wearables order volumes are expected to number in the tens of thousands in 2020. The wearables market segment is clearly one where our technology is easily adapted and truly illustrates our technological differentiation.  Flexpoint’s willingness and ability to customize sensors for these innovative companies and deliver them at a competitive price point allows us to deliver real value to our customers.  Again the Global Covid 19 Pandemic has had a dramatic impact on the orders we have received, however in this quarter we received a significant purchase order from Manus and fulfilled the first sensors from that order before the end of the quarter.  It is expected that the balance of the purchase order will be fulfilled during the next quarter.    




15




These groundbreaking glove systems, combined with unique, leading edge software applications, also adapt to a wide range of other applications, including health rehabilitation, unmanned systems control, smartphone interaction and professional training across multiple industries.  In addition to producing an array of Bend Sensors®, the Company is under agreement to supply integrated assemblies comprised of multiple sensor types and associated electronics.


In the VR/VA marketspace, orders of increasing size and frequency were received during 2019 from Manus VR and Neofect as they strive to fulfill production orders.  Flexpoint also received orders from other global VR/AR customers during the quarter.


Finalizing long-term, constant revenue generating production contracts with our existing and other customers remains our greatest challenge because our on-going business is dependent on the types of revenues and cash flows generated by such contracts. Cash flow and cash requirement risks are closely tied to and are dependent upon our ability to attract significant long-term production contracts.  This process has been impacted by the recent Pandemic and we are unable to determine what the long term effect of these impacts will be at this time. We must continue to obtain funding to operate and expand our operations so that we can deliver our unique Bend Sensor® and Bend Sensor® related technologies and products to the market.  Management believes that even though we are making positive strides forward with our business plan we will need to raise additional operating capital.


LIQUIDITY AND CAPITAL RESOURCES


The challenges posed by the Pandemic in the United States and global economies increased significantly as the first quarter progressed.  Since the onset of the Pandemic, our top priority has been the health and safety of our employees.  During this difficult time we have worked to insure that our customers continue to receive quality, personalized service.  


The Pandemic negatively impacted our revenue during the first two quarters of 2020, and has extended into the third quarter as well.  At this time it is impossible to accurately predict when this will end.  Many of our clients, to protect their employees, have sharply curtailed operations and have most employees working from home.  The long-term impact of the Pandemic is difficult to assess at this point, as it will be dependent on how rapidly our clients can resume their business operations and place orders with us for the needed sensors incorporated into their products.  Currently our revenue is primarily from product licensing, development, manufacturing and recurring sales with additional contributions to income from design contract, testing and limited production services for prototypes and samples, and is currently at a level to support our operations.  Depending upon the world returning to some form of normalcy following the end of the Pandemic, we believe, based upon current orders and projected orders over the next twelve months, that we could be producing sensors under long-term contracts in the future that will help support our existing operations and potential future growth. Management recognizes such contracts usually go through a long negotiation process and there can be no guarantee that we will be successful in our negotiations or that such contracts will be sufficient to support our current operations in the near future.


In 2019, we relied on the proceeds of convertible loans from existing shareholders, private placements of our common stock, and fees obtained under licensing agreements.  The balances of the convertible notes have a combined total of $1,148,513 as of June 30, 2020. The notes have an annual interest rate of 8% to 10% and default rates of 10% to 15%, have various maturity dates, and are secured by the Company’s business assets.


Management believes that our current cash burn rate is approximately $60,000 per month.  If the Pandemic ends and business returns to pre-pandemic levels, with proceeds from additional convertible notes and estimated revenues for manufacturing, production, engineering design and prototype products should be sufficient to fund the next twelve months of operations.  Our auditors have expressed doubt about our ability to continue as a going concern and that we may not realize significant revenue or become profitable within the next twelve months. We will require additional financing to fund our short-term cash needs. We will have to rely on additional debt financing, loans from existing shareholders and private placements of common stock for additional funding. Based upon our anticipated purchase orders over the next twelve months the revenue generated will not be sufficient to cover our operating expenses, based on our current burn rate. However, we cannot assure you that we will be able to obtain short-term financing, or that sources of such financing, if any, will continue to be available, and if available, that they will be on terms favorable to us. Nor is there any guarantee that the projected volume of purchase orders will meet the volumes that we anticipate.




16




As we enter into new agreements, we must ensure that those agreements provide adequate funding for any pre-production research and development and manufacturing costs. If we are successful in establishing agreements with adequate initial funding, management believes that our operations for the long term will be funded by revenues, licensing fees and/or royalties related to these agreements. However, we have formalized only a few agreements during the past four years and there can be no assurance that the agreements will generate sufficient revenues or be profitable in the future or that a desired technological application will be successful enough to produce the volumes and profits necessary to fund our operations.  


FINANCIAL OBLIGATIONS AND CONTINGENT LIABILITIES


Our principal commitments at June 30, 2020 consisted of our operating lease of $14,635 per month, and total liabilities of $3,252,831, which includes $1,148,513 of convertible notes payable.  Accrued liabilities at June 30, 2020, were $1,819,890 and were related to payroll, payroll tax liabilities, accrued professional expenses, accrued insurance expense, accrued interest expense on notes and accrued paid time off.  


The Company has a few major customers who represent a significant portion of revenue and accounts receivable. During the six months ended June 30, 2020, four customers represented 85% of sales and three other customers represented 94% of accounts receivable.  The Company has a strong ongoing relationship with these customers with scheduled product deliveries extending through the year and does not believe this concentration poses a significant risk, as their products are based entirely on the Company’s technologies.


OFF-BALANCE SHEET ARRANGEMENTS


We have not entered into any 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 and would be considered material to investors.


CRITICAL ACCOUNTING ESTIMATES


The preparation of financial statements 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 consolidated financial statements and accompanying notes. Estimates of particular significance in our financial statements include goodwill and the annual tests for impairment of goodwill and long-lived assets and valuing stock option compensation.  


The Company's goodwill represents the excess of its reorganization value over the fair value of the net assets upon emergence from bankruptcy. Goodwill is not amortized, therefore we test our goodwill for impairment annually or when a triggering event occur using a fair value approach. A fair value based test is applied at the overall Company level. The test compares the fair value of the Company to the carrying value of its nets assets. The test requires various judgments and estimates. During 2019 and for the six months ended June 30, 2020, the Company recorded no impairment charge to reduce the carrying value of the goodwill to its estimated fair value. As part of the impairment testing performed at December 31, 2019, the Company considered factors such as the global market volatility, variables in the economy, and the overall uncertainty in the markets that has resulted in a decline in the market price of the Company's stock price and market capitalization for a sustained period, as indicators for potential goodwill impairment.


We test long-lived assets for impairment annually or when a triggering event occurs. Impairment is indicated if undiscounted cash flows are less than the carrying value of the assets. The amount of impairment is measured using a discounted-cash-flows model considering future revenues, operating costs and risk-adjusted discount rate and other factors. The analysis compares the present value of projected net cash flows for the remaining current year and next two years against the carrying value of the long-lived assets. If the carrying values of the long-lived assets exceed the present value of the discounted projected revenues an impairment expense would be recognized in the period and the carrying value of the assets would be adjusted accordingly. Impairment tests are conducted on an annual basis and, should they indicate a carrying value in excess of fair value, a charge may be required.


Financial accounting standards require that recognition of the cost of employee services received in exchange for stock options and awards of equity instruments be based on the grant-date fair value of such options and awards and is recognized as an expense in operations over the period they vest. The fair value of the options we have granted is estimated at the date of grant using the Black-Scholes American option-pricing model. Option pricing 



17




models require the input of highly sensitive assumptions, including expected stock volatility. In addition, our stock options have characteristics significantly different from those of traded options, and changes in the subjective input assumptions can materially affect the fair value estimate.  Management believes the best input assumptions available were used to value the options and that the resulting option values are reasonable. For the six month periods ended June 30, 2020 and 2019, we recognized $0 and $0, respectively, of stock-based compensation expense for our stock options and there is no additional unrecognized compensation cost related to employee stock options at the current time.


RESULTS OF OPERATIONS


The Company continues to concentrate its marketing resources on a limited number of customers that have the greatest potential to generate the most short-term revenue while still building relationships with our larger customers. Management believes this approach has the highest potential to bring long-term commercially viable products to market and will provide sustainable cash flow to fund the Company's operations in the future. Currently, overall revenues are not sufficient to sustain our operations.  The recent Pandemic has had a dramatic effect on our business as well as the business of our customers.  The wide ranging effects on the World Wide business market has led to a general reluctance for businesses to move forward with entering into major commitments until their future markets have been clarified. Because of this, we have experienced a significant slowdown in the size and number of orders received and, while we cannot predict when the influence of the Pandemic will end, we expect that orders will return to their former levels and increase throughout the remainder of 2020 following a return to normal business operations.  Following a return to normal business operations in the world, Management anticipates that revenues will increase as we continue to execute our long-term business plan and cultivate larger customer bases with our existing product offering. However, until the Pandemic ends and a long-term production contract is in place there is no guarantee that our current customer base will order in sufficient volumes to sustain our operations. Therefore, management continues to work with larger companies and industries and is hopeful that in the near future we will sign a long-term licensing or manufacturing contract.


We recognized revenue from repeat orders from our existing customers, design contract, and development engineering.  Revenue is recognized using the ASC 606 five step detailed in Note 1 to the financial statements. Revenue from the sale of a product is recorded at the time of shipment to the customer.  Revenue from the license agreements was recognized in the period the agreement was concluded, as it is a right of use license and the Company has no further obligations to perform under the terms of the agreement.  Revenue from research and development engineering contracts is recognized as the services are provided and accepted by the customer. Revenue from contracts to license technology to others is deferred until all conditions under the contract are met and then the sale is recognized as licensing royalty revenue over the remaining term of the contract.


The following discussions are based on the consolidated operations of Flexpoint Sensor Systems, Inc. and should be read in conjunction with our unaudited financial statements for the three and six months ended June 30, 2020 and 2019, included in Part I, Item 1, above, and the audited financial statements included in the Company’s annual report on Form 10-K for the years ended December 31, 2019 and 2018.


THREE MONTH PERIODS ENDED JUNE 30, 2020 AND 2019:


SUMMARY OF OPERATING RESULTS

 

Three month period ended

 

June 30, 2020

 

June 30, 2019

Manufacturing, design, licensing and contract revenue

$            42,195

 


$            572,446

Total operating costs and expenses

182,020

 

220,557

Net other income (expense)

(39,117)

 

(244,404)

Net income (loss)

(178,943)

 

107,485

Basic and diluted loss per common share

$              (0.00)

 

$                (0.00)


For the three months ending June 30, 2020 revenue was $42,195, a decrease of $530,251 when compared to the same period in 2019. The majority of the revenue variance for this period is from a $450,000 licensing agreement recognized in 2019.  The remaining part of the variance is attributable to the business slowdown created by the Pandemic.




18




Of the $182,021 and $220,557 total operating costs and expense for the three months ending June 30, 2020 and 2019, respectively, $70,280 and $74,306 were for direct research and development cost, respectively. For the three months ended June 30, 2020, total operating expenses decreased by $38,536 when compared to the same period in 2019.  The decrease resulted from a $43,905 decrease in rent expense due to the Company charging rent for customers it has provided both office and warehouse space in their building.  This rent sharing arrangement will continue, which will lower operating expenses going forward.   


Other expense for the three month period ended June 30, 2020 was $39,117, a $205,287 decrease compared to the same period in 2019.  The decrease is attributable to a loss of $254,157 on the change in fair value of derivative liabilities recorded in 2019, offset in part by a $90,325 gain on extinguishment of debt.  No similar gains or losses were incurred in 2020.


A net loss of $178,943 was realized for the three months ended June 30, 2020.  Net income of $107,485 was realized for the three month period ended June 30, 2019 due to the other income items previously discussed.


SIX MONTH PERIODS ENDED JUNE 30, 2020 AND 2019:


SUMMARY OF OPERATING RESULTS

 

Six month period ended

 

June 30, 2020

 

June 30, 2019

Manufacturing, design, and contract revenue

$            81,298

 

$            637,041

Total operating costs and expenses

437,380

 

441,250

Net other income (expense)

(77,524)

 

(355,128)

Net income (loss)

(433,606)

 

(159,337)

Basic and diluted income (loss) per common share

$              (0.00)

 

$                (0.00)


For the six months ending June 30, 2020 revenue was $81,298, a decrease of $555,743 when compared to the same period in 2019. The majority of the revenue variance for this period is attributable to the $450,000 license agreement revenue recognized in 2019. As earlier discussed, follow on orders from our customers have slowed as the economy has been negatively impacted by the current Pandemic.


Of the $437,380 and $441,250 total operating costs and expense for the six months ending June 30, 2020 and 2019, respectively, $147,619 and $153,458 were for direct research and development cost, respectively. For the six months ended June 30, 2020, total operating expenses decreased by $3,870 when compared to the same period in 2019, due primarily to a reduction in building rent.  


Other expense for the six month period ended June 30, 2020 was $77,524, a $277,604 decrease compared to the same period in 2019.  The decrease is primarily attributable to the loss of $288,694 on the change in fair value of derivative liabilities and a $90,325 gain on extinguishment of debt recorded in 2019 while in 2020 interest expense was reduced by $78,990.


A net loss of $433,606 was realized for the six months ended June 30, 2020.  A net loss of $159,337 was realized for the Six month period ended June 30, 2019.


The chart below represents a summary of our condensed consolidated balance sheets at June 30, 2020 and December 31, 2019.

SUMMARY OF BALANCE SHEET INFORMATION

 

 

 

 

 

June 30, 2020

 

December 31, 2019

Cash and cash equivalents

$                        - 

 

$             170,004 

Total current assets

98,029 

 

222,992 

Total assets

            5,004,066

 

            5,130,149

Total liabilities

              3,252,831

 

              2,945,308

Accumulated deficit

         (29,221,211)

 

         (28,787,605)

Total stockholder’s equity

 $           1,751,235

 

 $           2,184,841




19




Cash and cash equivalents decreased by $170,004 at June 30, 2020 compared to December 31, 2019. The decrease in cash is due to the payment of operating costs and the operating loss sustained for the six month period, offset in part by the proceeds from the SBA loan obtained.  Our non-current assets decreased at June 30, 2020 due to the depreciation of property and equipment.


Total liabilities increased by $307,523 at June 30, 2020.  The increase was due primarily to the $59,500 note entered into, coupled with accruals made for marketing services, interest on notes and payroll accruals.


INFLATION


We do not expect the impact of inflation on our operations to be significant for the next twelve months.


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


Not applicable to smaller reporting companies.


ITEM 4.  CONTROLS AND PROCEDURES


(a)

Disclosure Controls and Procedures


As of the end of the period covered by this quarterly report we carried out an evaluation of the effectiveness of our disclosure controls and procedures under the supervision and with the participation of our Chief Executive Officer, who also serves as our Principal Financial Officer.  Our controls and procedures are designed to allow information required to be disclosed in our reports to be recorded, processed, summarized and reported within the specified periods, and accumulated and communicated to management to allow for timely decisions regarding required disclosure of material information.  Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives.  Based upon the evaluation, our Chief Executive Officer concluded that our disclosure controls and procedures were not effective at that reasonable assurance level as of the end of the six-month period ended June 30, 2020.  


The material weaknesses relate to the limited number of persons responsible for the recording and reporting of financial information, the lack of separation of financial reporting duties, and the limited size of our management team in general. We are in the process of evaluating methods of improving our internal control over financial reporting, including the possible addition of financial reporting staff and the increased separation of financial reporting responsibility, and intend to implement such steps as are necessary and possible to correct these material weaknesses


(b)

Changes in Internal Control over Financial Reporting


There have been no changes in internal control over financial reporting during the six months of 2020 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 1A.  RISK FACTORS


We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and, as such, are not required to provide the information under this Item.


ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS


None.




20




ITEM 3.  DEFAULTS UPON SENIOR SECURITIES


None.


ITEM 4.  MINE SAFETY DISCLOSURES


Not applicable.


ITEM 5.  OTHER INFORMATION


None.


ITEM 6. EXHIBITS


Part I Exhibits


No.

Description

31.1

Certification of Clark M. Mower pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2

Certification of Clark M. Mower pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32

Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley


Part II Exhibits


No.

Description

3.1

Certificate of Incorporation of Flexpoint Sensor, as amended (Incorporated by reference to exhibit 3.1 for Form 10-QSB, filed August 4, 2006)

3.2

Bylaws of Flexpoint Sensor, as amended (Incorporated by reference to exhibit 3.4 of Form 10-QSB, filed May 3, 2004)

10.1

Addendum to Lease Agreement between Flexpoint Sensor and Handstands, dated January 1, 2015.  (Incorporated by reference to exhibit 10.3 of Form 10-K, filed April 14, 2016)

10.2

Exclusive License Agreement between Flexpoint Sensor Systems and subVo, LLC, dated June 19, 2019.  (Incorporated by reference to exhibit 10.2 of Form 10-Q, filed August 14, 2019)

101.SCH

XBRL Taxonomy Extension Schema Document

101.CAL

XBRL Taxonomy Calculation Linkbase Document

101.DEF

XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

XBRL Taxonomy Label Linkbase Document

101.PRE

XBRL Taxonomy Presentation Linkbase Document



21




SIGNATURES


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


FLEXPOINT SENSOR SYSTEMS, INC.


Date:   August 14, 2020


/s/ Clark M. Mower

Clark M. Mower

President, Chief Executive Officer and Director,

Principal Financial Officer



22



EX-31 2 ex31-1.htm 302 CERTIFICATION OF CLARK MOWER Exhibit 31

Exhibit 31.1


CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002


     I, Clark M. Mower certify that:


     1.   I have reviewed this quarterly report on Form 10-Q of Flexpoint Sensor Systems, 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 my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me 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 cause 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 general accepted accounting principles;


c)

evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my 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:  August 14, 2020

/s/ Clark M. Mower

Clark M. Mower

Chief Executive Officer




EX-31 3 ex31-2.htm 302 CERTIFICATION OF CLARK MOWER Converted by EDGARwiz

Exhibit 31.2


CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002


     I, Clark M. Mower, certify that:


    1.   I have reviewed this quarterly report on Form 10-Q of Flexpoint Sensor Systems, 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 my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me 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 cause 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 general accepted accounting principles;


c)

evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my 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:  August 14, 2020

/s/ Clark M. Mower

Clark M. Mower

Principal Financial Officer




EX-32 4 ex32.htm 906 CERTIFICATION Converted by EDGARwiz

    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 on Form 10-Q of Flexpoint Sensor Systems, Inc. (the “Company”) for the period ending June 30, 2020 as filed with the Securities and Exchange Commission (the “Report”), I, Clark M. Mower, Chief Executive Officer and 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:  August 14, 2020

/s/ Clark M. Mower

Clark M. Mower

Chief Executive Officer

Principal Financial Officer




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(the &#147;Company&#148;). These financial statements are condensed and, therefore, do not include all disclosures normally required by accounting principles generally accepted in the United States of America. Therefore, these statements should be read in conjunction with the most recent annual consolidated financial statements of Flexpoint Sensor Systems, Inc. for the year ended December 31, 2019 included in the Company&#146;s Form 10-K filed with the Securities and Exchange Commission on March 30, 2020. In particular, the Company&#146;s significant accounting principles were presented as Note 1 to the Consolidated Financial Statements in that report.&#160;In the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying condensed consolidated financial statements and consist of only normal recurring adjustments. 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The financial statements do not include any adjustments that might result from the outcome of these uncertainties.</p> <p style="margin: 0px"><br /></p> <p style="margin: 0px">Management is seeking additional funding to provide operating capital for its operations until such time as revenues are sufficient to sustain our level of operations.&#160; However, there is no assurance that additional funding will be available on acceptable terms, if at all.</p></div> <div style="width: 624px"><p style="margin: 0px; page-break-before: always; line-height: 10.65pt"><b>NOTE 4 &#150; CONVERTIBLE NOTES PAYABLE</b></p> <p style="margin: 0px; line-height: 10.65pt"><br /></p> <p style="margin: 0px; line-height: 10pt"><i><u>Convertible Note Payable</u></i></p> <p style="margin: 0px; line-height: 10.65pt"><br /></p> <p style="margin: 0px; line-height: 10pt">At June 30, 2020, there are notes outstanding with principal balances which total $930,000. 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COMMITMENTS AND CONTINGENCIES</b></p> <p style="margin: 0px"><br /></p> <p style="margin: 0px">The Company currently occupies approximately 12,548 square feet of office and manufacturing space from F.G.B.P. LLC. &#160;The building is located in a business park in Draper, Utah that consists primarily of high tech manufacturing firms and is located adjacent to Utah&#146;s main interstate highway. &#160;The Company entered into a new lease in 2019 for this facility. &#160;The lease entered into is a month-to-month lease with a 90-day termination clause and includes a basic lease payment as well as an additional component for building costs and taxes. &#160;The basic lease rate for Year 1 is $12,000 a month; it increases 3% each year thereafter. &#160;With the basic and additional component, the Company expects to pay a total lease payment of approximately $14,635 per month in 2020. &#160;The Company evaluated the lease under the new lease accounting standard and determined that it was a short-term lease due to the month-to-month provision and the 90-day notice of termination clause.</p></div> <div style="width: 624px"><p style="margin: 0px"><b>NOTE 8 &#150; RELATED PARTY TRANSACTIONS</b></p> <p style="margin: 0px"><br /></p> <p style="margin: 0px; line-height: 12pt">At June 30, 2020, there was no amount payable to related parties. &#160;At December 31, 2019, the Company had amounts of $2,197 payable to its Chief Executive Officer for expense reports which had been submitted for payment but were unpaid at December 31, 2019. &#160;</p> <p style="margin: 0px; line-height: 12pt"><br /></p> <p style="margin: 0px; line-height: 12pt">In May 2019, the Company converted the amounts payable to officers to convertible notes in the amounts of $22,000 and $17,000. &#160;The notes bear interest at the rate of 8% per annum with a default rate of 12%, are convertible into shares of common stock at $0.06 per share, and have a maturity date of March 31, 2021.</p> <p style="margin: 0px; line-height: 12pt"><br /></p> <p style="margin: 0px; line-height: 12pt">At June 30, 2020 and December 31, 2019, the Company had outstanding notes payable to an officer in the amount of $164,257 and outstanding notes payable to a director in the amount of $54,256.</p></div> <div style="width: 624px"><p style="margin: 0px"></p> <p style="margin: 0px"><b>NOTE 9 &#150; SUBSEQUENT EVENTS</b></p> <p style="margin: 0px"><br /></p> <p style="margin: 0px; text-align: justify">The Company has evaluated subsequent events pursuant to ASC Topic 855 and has determined that there are no events that require disclosure as of the date of issuance.</p> <p style="margin: 0px"><br /></p> <p style="margin: 0px">The majority of non-essential businesses are still closed or operating on a limited basis. &#160;It is therefore anticipated that revenue will continue to be negatively impacted through at a minimum the third quarter of 2020. &#160;Our ability to generate revenue will be dependent upon the pace at which businesses are allowed to resume operations.</p></div> <p style="margin: 0px; line-height: 10.65pt"><b><i>Nature of Operations</i></b> &#150; Flexpoint Sensor Systems, Inc. (the Company) is located in Draper, Utah. The Company&#146;s activities to date have included acquiring equipment and enhancing technology, obtaining financing, limited production and seeking long-term manufacturing contracts. The Company&#146;s operations are in designing, engineering, manufacturing and selling sensor technology and equipment using flexible potentiometer technology. Through June 30, 2020, the Company continued to manufacture products and sensors to fill customer orders and provide engineering and design work.</p> <p style="margin: 0px; line-height: 10.65pt">&#160;</p> <p style="margin: 0in 0in 0pt; line-height: 12pt"><font style="font-size: 10pt; color: black">The recent COVID 19 Pandemic (&#147;the Pandemic&#148;) has had a dramatic effect on our business as well as the business of our customers.&#160; The wide ranging effects on the World Wide business market has led to a general reluctance for businesses to move forward with entering into major commitments until their future markets have been clarified. 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The fair value hierarchy is defined into the following three categories:</p> <p style="margin: 0px; text-indent: 48px">&#160;</p> <p style="margin: 0px; padding-left: 48px">Level 1: Quoted market prices in active markets for identical assets or liabilities.</p> <p style="margin: 0px">&#160;</p> <p style="margin: 0px; padding-left: 48px">Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.</p> <p style="margin: 0px">&#160;</p> <p style="margin: 0px; padding-left: 48px">Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities.</p> <p style="margin: 0px; text-align: justify">&#160;</p> <p style="margin: 0px">To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed and is determined based on the lowest level input that is significant to the fair value measurement.</p> <p style="margin: 0px">&#160;</p> <p style="margin: 0px">The carrying value of the Company&#146;s cash, accounts payable, short-term borrowings (including convertible notes payable), and other current assets and liabilities approximate fair value because of their short-term maturity.</p> <p style="margin: 0px; line-height: 10.65pt"><b><i>Accounts Receivable &#150; </i></b>Trade accounts receivable are recorded at the time product is shipped or services are provided including any shipping and handling fees. Contracts associated with design and development engineering generally require a deposit of 50% of the quoted price prior to the commencement of work. The deposit is considered deferred income until the entire project is completed and accepted by the customer, at which time the entire contract price is billed to the customer and the deposit applied. The Company has established an allowance for bad debts based on a historical experience and an analysis of risk associated with the account balances. &#160;The balance in the allowance account was $114,991 and $114,991 in the periods ended June 30, 2020 and December 31, 2019, respectively. &#160;</p> <p style="margin: 0px; line-height: 10.65pt"><b><i>Inventories &#150; </i></b>The Company does not currently have inventory. &#160;However, as production levels increase inventories will be carried on the balance sheet. &#160;Inventories will be stated at the lower of cost or market or net realizable value. 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</i>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p> <p style="margin: 0px; line-height: 12pt"><br /></p> <p style="margin: 0px"><b><i>Condensed Consolidated Interim Financial Statements &#150; </i></b>The accompanying unaudited condensed consolidated financial statements include the accounts of Flexpoint Sensor Systems, Inc. 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Because of this, we have experienced a significant slowdown in the size and number of orders received and, while we cannot predict when the influence of the Pandemic will end, we expect that orders will return to their former levels and increase following a return to normal business operations.</p> <p style="margin: 0px; line-height: 10.65pt"><br /></p> <p style="margin: 0px; line-height: 10.65pt"><b><i>Use of Estimates &#150; </i></b>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. &#160;Actual results could differ from those estimates.</p> <p style="margin: 0px; line-height: 10.65pt"><br /></p> <p style="margin: 0px; line-height: 10.65pt"><b><i>Cash and Cash Equivalents &#150; </i></b>Cash and cash equivalents are considered to be cash and highly liquid securities with original maturities of three months or less. </p> <p style="margin: 0px; line-height: 10.65pt"><br /></p> <p style="margin: 0px"><b><i>Fair Value Measurements</i> -&#160;</b>The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. 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The fair value hierarchy is defined into the following three categories:</p> <p style="margin: 0px; text-indent: 48px">&#160;</p> <p style="margin: 0px; padding-left: 48px">Level 1: Quoted market prices in active markets for identical assets or liabilities.</p> <p style="margin: 0px">&#160;</p> <p style="margin: 0px; padding-left: 48px">Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.</p> <p style="margin: 0px">&#160;</p> <p style="margin: 0px; padding-left: 48px">Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities.</p> <p style="margin: 0px; text-align: justify">&#160;</p> <p style="margin: 0px">To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed and is determined based on the lowest level input that is significant to the fair value measurement.</p> <p style="margin: 0px">&#160;</p> <p style="margin: 0px">The carrying value of the Company&#146;s cash, accounts payable, short-term borrowings (including convertible notes payable), and other current assets and liabilities approximate fair value because of their short-term maturity.</p> <p style="margin: 0px">&#160;</p> <p style="margin: 0px"><b><i>Accounts Receivable &#150; </i></b>Trade accounts receivable are recorded at the time product is shipped or services are provided including any shipping and handling fees. Contracts associated with design and development engineering generally require a deposit of 50% of the quoted price prior to the commencement of work. The deposit is considered deferred income until the entire project is completed and accepted by the customer, at which time the entire contract price is billed to the customer and the deposit applied. The Company has established an allowance for bad debts based on a historical experience and an analysis of risk associated with the account balances. &#160;The balance in the allowance account was $114,991 and $114,991 in the periods ended June 30, 2020 and December 31, 2019, respectively. &#160;</p> <p style="margin: 0px; line-height: 10.65pt"><br /></p> <p style="margin: 0px; line-height: 10.65pt"><b><i>Inventories &#150; </i></b>The Company does not currently have inventory. &#160;However, as production levels increase inventories will be carried on the balance sheet. &#160;Inventories will be stated at the lower of cost or market or net realizable value. Cost is determined by using the first in, first out (FIFO) method. &#160;</p> <p style="margin: 0px; line-height: 10.65pt"><br /></p> <p style="margin: 0px; line-height: 10.65pt"><b><i>Property and Equipment</i> <i>&#150;</i></b> Property and equipment are stated at cost. &#160;Additions and major improvements are capitalized while maintenance and repairs are charged to operations. &#160;Upon trade-in, sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is recognized. Depreciation is computed using the straight-line method and is recognized over the estimated useful lives of the property and equipment, which range from three to ten years.</p> <p style="margin: 0px; line-height: 10.65pt"><br /></p> <p style="margin: 0px"><b><i>Valuation of Long-lived Assets</i></b> &#150; The carrying values of the Company&#146;s long-lived assets are reviewed for impairment annually and whenever events or changes in circumstances indicate that they may not be recoverable. When projections indicate that the carrying value of the long-lived asset is not recoverable, the carrying value is reduced by the estimated excess of the carrying value over the projected discounted cash flows. Under similar analysis no impairment charge was taken during the six-month period ended June 30, 2020 and during the year ended December 31, 2019. &#160;Impairment tests will be conducted on an annual basis and, should they indicate a carrying value in excess of fair value, additional impairment charges may be required.</p> <p style="margin: 0px; line-height: 12pt"><br /></p> <p style="margin: 0px; line-height: 10.65pt"><b><i>Intangible Assets</i></b> &#150; Costs to obtain or develop patents are capitalized and amortized over the remaining life of the patents, and technology rights are amortized over their estimated useful lives. The Company currently has the right to several patents and proprietary technology. &#160;Patents and technology are amortized from the date the Company acquires or is awarded the patent or technology right, over their estimated useful lives, which range from 5 to 15 years. &#160;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. &#160;Under similar analysis there was no impairment charge taken during the six-month period ended June 30, 2020 and during year ended December 31, 2019. </p> <p style="margin: 0px; line-height: 10pt"><br /></p> <p style="margin: 0px; line-height: 10.65pt"><b><i>Research and Development</i></b> &#150; Research and development costs are recognized as an expense during the period incurred, which is until the conceptual formulation, design, and testing of a process is completed and the process has been determined to be commercially viable.</p> <p style="margin: 0px; line-height: 12pt"><br /></p> <p style="margin: 0px"><b><i>Lease Obligations</i></b> &#150; While the Company has adopted ASC 842 the Company has no leases at the date of this report that are required to be reported under ASC 842. &#160;As the Company enters into such leases it will record obligations under all leases it has entered into pursuant to the reporting requirements under ASC 842, allocating such obligations between current and long term. &#160;</p> <p style="margin: 0px; line-height: 12pt"><br /></p> <p style="margin: 0px"><b><i>Goodwill</i> </b>&#150; Goodwill represents the excess of the Company&#146;s reorganization value over the fair value of net assets of the Company upon emergence from bankruptcy. 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An impairment of goodwill is measured as the excess of the carrying amount of goodwill over the determined fair value. </p> <p style="margin: 0px"><br /></p> <p style="margin: 0px"><b><i>Revenue Recognition &#150; </i></b>On January 1, 2018, the Company adopted ASC 606, <i>Revenue from Contracts with Customers</i>, and all of the related amendments (&#147;new revenue standard&#148;). &#160;We have applied the new revenue standard to all contracts as of the date of the initial adoption. &#160;The new revenue standard establishes five steps whereby a transaction is analyzed to determine if revenue has been earned and can be recognized. &#160;The adoption of the new revenue standard did not have any effect on our financial statements. &#160;The vast majority of our sales are made to order, for which orders we require a deposit of 50% of the value of the order. &#160;That amount is put in a customer deposit account until the entire order has been manufactured and shipped. &#160;At the ship date, the Company has no further obligations under the contract and the revenue from the sale is recognized.</p> <p style="margin: 0px"><br /></p> <p style="margin: 0px">A part of our customer base is made up of international customers. &#160;The table below allocates revenue between domestic and international customers. &#160;<font style="background-color: #ffffff">The following table presents Flexpoint Sensor Systems revenues disaggregated by region and product type:</font></p> <p style="margin: 0px; text-align: justify"><br /></p> <table cellpadding="0" cellspacing="0" align="center" style="font-size: 10pt; margin-top: 0px"> <tr> <td colspan="2" style="padding: 0px 9px; width: 148px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt">Three months ended:</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="5" style="padding: 0px 9px; width: 180px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">June 30,</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="6" style="padding: 0px 9px; width: 187px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">June 30,</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="5" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 180px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">2020</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="6" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 187px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">2019</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="5" style="padding: 0px 9px; width: 180px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Long-term</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="6" style="padding: 0px 9px; width: 187px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Long-term</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Consumer</p></td> <td colspan="3" style="padding: 0px 9px; width: 60px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 51px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Consumer</p></td> <td colspan="3" style="padding: 0px 9px; width: 63px; margin-top: 0px; vertical-align: top"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 54px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td></tr> <tr> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">Segments</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Products</p></td> <td colspan="3" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Contract</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 51px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Total</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Products</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Contract</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Total</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">Domestic</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">$</p></td> <td style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">1,386</p></td> <td colspan="3" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">-</p></td> <td style="padding: 0px 9px; width: 51px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">1,386</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">$</p></td> <td colspan="2" style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">519,103</p></td> <td colspan="2" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">519,103</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">International</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">40,809</p></td> <td colspan="3" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 51px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">40,809</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">53,546</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">53,546</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">$</p></td> <td style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">42,195</p></td> <td colspan="3" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td style="padding: 0px 9px; width: 51px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">42,195</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">$</p></td> <td colspan="2" style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">572,649</p></td> <td colspan="2" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">572,649</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 73px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 55px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="3" style="padding: 0px 9px; width: 53px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; 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line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td></tr> <tr> <td style="border-top: #000000 1px solid; padding: 0px 9px; width: 130px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="border-top: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="border-top: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-top: #000000 1px solid; padding: 0px 9px; width: 73px; 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padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-top: #000000 1px solid; padding: 0px 9px; width: 24px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-top: #000000 1px solid; padding: 0px 9px; width: 65px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="border-top: #000000 1px solid; padding: 0px 9px; width: 59px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-top: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td></tr> <tr> <td style="padding: 0px 9px; 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width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">54,669</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt">Engineering&#160;Services</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 73px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">2,564</p></td> <td style="padding: 0px 9px; 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width: 65px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">67,980</p></td> <td style="padding: 0px 9px; width: 59px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">67,980</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt">Licensing fee</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 73px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">-</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 55px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="3" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 53px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">-</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 24px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">450,000</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 59px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; 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padding: 0px 9px; width: 53px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">42,195</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 24px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">$</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; 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width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="5" style="padding: 0px 9px; width: 187px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">June 30,</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="8" style="padding: 0px 9px; width: 187px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; 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margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="8" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 187px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">2019</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Consumer</p></td> <td colspan="2" style="padding: 0px 9px; width: 60px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Long-term</p></td> <td style="padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="3" style="padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Consumer</p></td> <td colspan="3" style="padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Long-term</p></td> <td colspan="2" style="padding: 0px 9px; width: 49px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td></tr> <tr> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">Segments</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Products</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Contract</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Total</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="3" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Products</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Contract</p></td> <td colspan="3" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Total</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">Domestic</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">$</p></td> <td colspan="2" style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">28,720</p></td> <td colspan="2" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">-</p></td> <td style="padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">28,720</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">$</p></td> <td colspan="3" style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">535,151</p></td> <td colspan="2" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="3" style="padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">535,151</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">International</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">52,578</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">52,578</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="3" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">101,890</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="3" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">101,890</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">$</p></td> <td colspan="2" style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">81,298</p></td> <td colspan="2" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td style="padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">81,298</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">$</p></td> <td colspan="3" style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">637,041</p></td> <td colspan="2" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="3" style="padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">637,041</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 19px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 23px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 58px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 24px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="4" style="padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">Components</p></td> <td colspan="2" style="padding: 0px 9px; width: 19px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 23px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">60,735</p></td> <td style="padding: 0px 9px; width: 58px; margin-top: 0px"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">60,735</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 24px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">112,638</p></td> <td colspan="2" style="padding: 0px 9px; width: 59px; margin-top: 0px"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="4" style="padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">112,638</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt">Engineering&#160;Services</p></td> <td colspan="2" style="padding: 0px 9px; width: 19px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 23px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 65px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">20,563</p></td> <td style="padding: 0px 9px; width: 58px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="padding: 0px 9px; width: 59px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">20,563</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 24px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 65px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">74,403</p></td> <td colspan="2" style="padding: 0px 9px; width: 59px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="4" style="padding: 0px 9px; width: 59px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">74,403</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt">Licensing fee</p></td> <td colspan="2" style="padding: 0px 9px; width: 19px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 23px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">-</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 58px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">-</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 24px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">450,000</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 59px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="4" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">450,000</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 19px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 23px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">$</p></td> <td style="border-bottom: #000000 3px double; padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">81,298</p></td> <td style="border-bottom: #000000 3px double; padding: 0px 9px; width: 58px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">81,298</p></td> <td style="border-bottom: #000000 3px double; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="border-bottom: #000000 3px double; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 24px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">$</p></td> <td style="border-bottom: #000000 3px double; padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">637,041</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 59px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="4" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">637,041</p></td></tr> </table> <p style="margin: 0px; text-align: justify"><br /></p> <p style="margin: 0px"><b><i>Basic and Diluted Loss Per Share &#150;</i></b> Basic loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. &#160;Diluted loss per share is computed by dividing net loss by the weighted-average number of common shares and dilutive potential common shares outstanding during the period. At June 30, 2020 and 2019 there were outstanding common share equivalents (options and convertible notes payable) which amounted to 25,196,690 and 22,248,463 of common stock, respectively. These common share equivalents were not included in the computation of diluted earnings per share for the six-month periods ended June 30, 2020 and 2019 as their effect would have been anti-dilutive, thereby decreasing loss per common share. </p> <p style="margin: 0px"><br /></p> <p style="margin: 0px"><b><i>Concentrations and Credit Risk - </i></b>The Company has a few major customers who represent a significant portion of revenue, accounts receivable and notes receivable. &#160;During the six-month period ended June 30, 2020, four customers represented 85% of sales and three other customers represented 94% of accounts receivable. &#160;The Company has a strong ongoing relationship with these customers with scheduled delivery extending through the year and does not believe this concentration poses a significant risk, as their products are based entirely on the Company&#146;s technologies. &#160;</p> <p style="margin: 0px"><br /></p> <p style="margin: 0px"><b><i>Income Taxes - </i></b>The Company accounts for income taxes in accordance with Statement of Financial Accounting Standards Board Accounting Codification (ASC) 740: Income Taxes. &#160;Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the differences are expected to reverse. &#160;Deferred tax assets will be reflected on the balance sheet when it is determined that it is more likely than not that the asset will be realized</p> <p style="margin: 0px"><br /></p> <p style="margin: 0px"><b><i>Recent Accounting Pronouncements</i></b> - 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. &#160;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. </p> <p style="margin: 0px"></p> <p style="margin: 0px"><b><i>Revenue Recognition &#150; </i></b>On January 1, 2018, the Company adopted ASC 606, <i>Revenue from Contracts with Customers</i>, and all of the related amendments (&#147;new revenue standard&#148;). &#160;We have applied the new revenue standard to all contracts as of the date of the initial adoption. &#160;The new revenue standard establishes five steps whereby a transaction is analyzed to determine if revenue has been earned and can be recognized. &#160;The adoption of the new revenue standard did not have any effect on our financial statements. &#160;The vast majority of our sales are made to order, for which orders we require a deposit of 50% of the value of the order. &#160;That amount is put in a customer deposit account until the entire order has been manufactured and shipped. &#160;At the ship date, the Company has no further obligations under the contract and the revenue from the sale is recognized.</p> <p style="margin: 0px"><br /></p> <p style="margin: 0px">A part of our customer base is made up of international customers. &#160;The table below allocates revenue between domestic and international customers. &#160;<font style="background-color: #ffffff">The following table presents Flexpoint Sensor Systems revenues disaggregated by region and product type:</font></p> <p style="margin: 0px; text-align: justify"><br /></p> <table cellpadding="0" cellspacing="0" align="center" style="font-size: 10pt; margin-top: 0px"> <tr> <td colspan="2" style="padding: 0px 9px; width: 148px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt">Three months ended:</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="5" style="padding: 0px 9px; width: 180px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">June 30,</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="6" style="padding: 0px 9px; width: 187px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">June 30,</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="5" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 180px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">2020</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="6" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 187px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">2019</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="5" style="padding: 0px 9px; width: 180px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Long-term</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="6" style="padding: 0px 9px; width: 187px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Long-term</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Consumer</p></td> <td colspan="3" style="padding: 0px 9px; width: 60px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 51px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Consumer</p></td> <td colspan="3" style="padding: 0px 9px; width: 63px; margin-top: 0px; vertical-align: top"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 54px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td></tr> <tr> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">Segments</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Products</p></td> <td colspan="3" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Contract</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 51px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Total</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Products</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Contract</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Total</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">Domestic</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">$</p></td> <td style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">1,386</p></td> <td colspan="3" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">-</p></td> <td style="padding: 0px 9px; width: 51px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">1,386</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">$</p></td> <td colspan="2" style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">519,103</p></td> <td colspan="2" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">519,103</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">International</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">40,809</p></td> <td colspan="3" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 51px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">40,809</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">53,546</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">53,546</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">$</p></td> <td style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">42,195</p></td> <td colspan="3" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td style="padding: 0px 9px; width: 51px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">42,195</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">$</p></td> <td colspan="2" style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">572,649</p></td> <td colspan="2" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">572,649</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 73px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 55px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="3" style="padding: 0px 9px; width: 53px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 24px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td></tr> <tr> <td style="border-top: #000000 1px solid; padding: 0px 9px; width: 130px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="border-top: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="border-top: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-top: #000000 1px solid; padding: 0px 9px; width: 73px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="border-top: #000000 1px solid; padding: 0px 9px; width: 55px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="3" style="border-top: #000000 1px solid; padding: 0px 9px; width: 53px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-top: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-top: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-top: #000000 1px solid; padding: 0px 9px; width: 24px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-top: #000000 1px solid; padding: 0px 9px; width: 65px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="border-top: #000000 1px solid; padding: 0px 9px; width: 59px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-top: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">Components</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 73px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">39,631</p></td> <td style="padding: 0px 9px; width: 55px; margin-top: 0px"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="3" style="padding: 0px 9px; width: 53px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">39,631</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 24px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">54,669</p></td> <td style="padding: 0px 9px; width: 59px; margin-top: 0px"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">54,669</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt">Engineering&#160;Services</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 73px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">2,564</p></td> <td style="padding: 0px 9px; width: 55px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="3" style="padding: 0px 9px; width: 53px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">2,564</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 24px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 65px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">67,980</p></td> <td style="padding: 0px 9px; width: 59px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">67,980</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt">Licensing fee</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 73px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">-</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 55px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="3" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 53px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">-</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 24px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">450,000</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 59px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">450,000</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="border-bottom: #000000 3px double; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">$</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 73px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">42,195</p></td> <td style="border-bottom: #000000 3px double; padding: 0px 9px; width: 55px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="3" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 53px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">42,195</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 24px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">$</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">572,649</p></td> <td style="border-bottom: #000000 3px double; padding: 0px 9px; width: 59px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">572,649</p></td></tr> </table> <p style="margin: 0px; text-align: justify"><br /></p> <table cellpadding="0" cellspacing="0" align="center" style="font-size: 10pt; margin-top: 0px"> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">Six months ended:</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="5" style="padding: 0px 9px; width: 187px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">June 30,</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="8" style="padding: 0px 9px; width: 187px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">June 30,</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="5" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 187px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">2020</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="8" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 187px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">2019</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Consumer</p></td> <td colspan="2" style="padding: 0px 9px; width: 60px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Long-term</p></td> <td style="padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="3" style="padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Consumer</p></td> <td colspan="3" style="padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Long-term</p></td> <td colspan="2" style="padding: 0px 9px; width: 49px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td></tr> <tr> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">Segments</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Products</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Contract</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Total</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="3" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Products</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Contract</p></td> <td colspan="3" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Total</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">Domestic</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">$</p></td> <td colspan="2" style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">28,720</p></td> <td colspan="2" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">-</p></td> <td style="padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">28,720</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">$</p></td> <td colspan="3" style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">535,151</p></td> <td colspan="2" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="3" style="padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">535,151</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">International</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">52,578</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">52,578</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="3" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">101,890</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="3" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">101,890</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">$</p></td> <td colspan="2" style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">81,298</p></td> <td colspan="2" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td style="padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">81,298</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">$</p></td> <td colspan="3" style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">637,041</p></td> <td colspan="2" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="3" style="padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">637,041</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 19px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 23px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 58px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 24px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="4" style="padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">Components</p></td> <td colspan="2" style="padding: 0px 9px; width: 19px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 23px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">60,735</p></td> <td style="padding: 0px 9px; width: 58px; margin-top: 0px"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">60,735</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 24px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">112,638</p></td> <td colspan="2" style="padding: 0px 9px; width: 59px; margin-top: 0px"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="4" style="padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">112,638</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt">Engineering&#160;Services</p></td> <td colspan="2" style="padding: 0px 9px; width: 19px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 23px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 65px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">20,563</p></td> <td style="padding: 0px 9px; width: 58px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="padding: 0px 9px; width: 59px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">20,563</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 24px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 65px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">74,403</p></td> <td colspan="2" style="padding: 0px 9px; width: 59px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="4" style="padding: 0px 9px; width: 59px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">74,403</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt">Licensing fee</p></td> <td colspan="2" style="padding: 0px 9px; width: 19px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 23px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">-</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 58px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">-</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 24px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">450,000</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 59px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="4" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">450,000</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 19px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 23px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">$</p></td> <td style="border-bottom: #000000 3px double; padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">81,298</p></td> <td style="border-bottom: #000000 3px double; padding: 0px 9px; width: 58px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">81,298</p></td> <td style="border-bottom: #000000 3px double; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="border-bottom: #000000 3px double; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 24px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">$</p></td> <td style="border-bottom: #000000 3px double; padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">637,041</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 59px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="4" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">637,041</p></td></tr> </table> <p style="margin: 0px">A part of our customer base is made up of international customers. 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style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="6" style="padding: 0px 9px; width: 187px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">June 30,</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="5" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 180px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">2020</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="6" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 187px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">2019</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="5" style="padding: 0px 9px; width: 180px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Long-term</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="6" style="padding: 0px 9px; width: 187px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Long-term</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Consumer</p></td> <td colspan="3" style="padding: 0px 9px; width: 60px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 51px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Consumer</p></td> <td colspan="3" style="padding: 0px 9px; width: 63px; margin-top: 0px; vertical-align: top"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 54px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td></tr> <tr> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">Segments</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Products</p></td> <td colspan="3" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Contract</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 51px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Total</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Products</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Contract</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Total</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">Domestic</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">$</p></td> <td style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">1,386</p></td> <td colspan="3" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">-</p></td> <td style="padding: 0px 9px; width: 51px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">1,386</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">$</p></td> <td colspan="2" style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">519,103</p></td> <td colspan="2" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">519,103</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">International</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">40,809</p></td> <td colspan="3" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 51px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">40,809</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">53,546</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">53,546</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">$</p></td> <td style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">42,195</p></td> <td colspan="3" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td style="padding: 0px 9px; width: 51px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">42,195</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">$</p></td> <td colspan="2" style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">572,649</p></td> <td colspan="2" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">572,649</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 73px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 55px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="3" style="padding: 0px 9px; width: 53px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 24px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td></tr> <tr> <td style="border-top: #000000 1px solid; padding: 0px 9px; width: 130px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="border-top: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="border-top: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-top: #000000 1px solid; padding: 0px 9px; width: 73px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="border-top: #000000 1px solid; padding: 0px 9px; width: 55px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="3" style="border-top: #000000 1px solid; padding: 0px 9px; width: 53px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-top: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-top: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-top: #000000 1px solid; padding: 0px 9px; width: 24px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-top: #000000 1px solid; padding: 0px 9px; width: 65px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="border-top: #000000 1px solid; padding: 0px 9px; width: 59px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-top: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">Components</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 73px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">39,631</p></td> <td style="padding: 0px 9px; width: 55px; margin-top: 0px"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="3" style="padding: 0px 9px; width: 53px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">39,631</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 24px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">54,669</p></td> <td style="padding: 0px 9px; width: 59px; margin-top: 0px"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">54,669</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt">Engineering&#160;Services</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 73px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">2,564</p></td> <td style="padding: 0px 9px; width: 55px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="3" style="padding: 0px 9px; width: 53px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">2,564</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 24px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 65px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">67,980</p></td> <td style="padding: 0px 9px; width: 59px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">67,980</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt">Licensing fee</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 73px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">-</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 55px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="3" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 53px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">-</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 24px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">450,000</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 59px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">450,000</p></td></tr> <tr> <td style="padding: 0px 9px; width: 130px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td style="border-bottom: #000000 3px double; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">$</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 73px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">42,195</p></td> <td style="border-bottom: #000000 3px double; padding: 0px 9px; width: 55px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="3" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 53px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">42,195</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin: 0px; padding-left: 9px; padding-right: 9px">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 24px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">$</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">572,649</p></td> <td style="border-bottom: #000000 3px double; padding: 0px 9px; width: 59px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="2" style="border-bottom: #000000 3px double; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">572,649</p></td></tr> </table> <p style="margin: 0px; text-align: justify"><br /></p> <table cellpadding="0" cellspacing="0" align="center" style="font-size: 10pt; margin-top: 0px"> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">Six months ended:</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="5" style="padding: 0px 9px; width: 187px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">June 30,</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="8" style="padding: 0px 9px; width: 187px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">June 30,</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="5" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 187px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">2020</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="8" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 187px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">2019</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Consumer</p></td> <td colspan="2" style="padding: 0px 9px; width: 60px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Long-term</p></td> <td style="padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="3" style="padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Consumer</p></td> <td colspan="3" style="padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Long-term</p></td> <td colspan="2" style="padding: 0px 9px; width: 49px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td></tr> <tr> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">Segments</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Products</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Contract</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Total</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">&#160;</p></td> <td colspan="3" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Products</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px; vertical-align: top"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Contract</p></td> <td colspan="3" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">Total</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">Domestic</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">$</p></td> <td colspan="2" style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">28,720</p></td> <td colspan="2" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: center">-</p></td> <td style="padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">28,720</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">$</p></td> <td colspan="3" style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">535,151</p></td> <td colspan="2" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="3" style="padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">535,151</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">International</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">52,578</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">52,578</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 21px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="3" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 69px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">101,890</p></td> <td colspan="2" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 60px; margin-top: 0px"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="3" style="border-bottom: #000000 1px solid; padding: 0px 9px; width: 57px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">101,890</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">$</p></td> <td colspan="2" style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">81,298</p></td> <td colspan="2" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td style="padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">81,298</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 21px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">$</p></td> <td colspan="3" style="padding: 0px 9px; width: 69px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">637,041</p></td> <td colspan="2" style="padding: 0px 9px; width: 60px; margin-top: 0px; background-color: #dbe5f1"> <p style="margin: 0px; line-height: 13.5pt; text-align: center">-</p></td> <td colspan="3" style="padding: 0px 9px; width: 57px; margin-top: 0px; background-color: #dbe5f1; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">637,041</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 19px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 23px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 58px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 17px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 24px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td style="padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td> <td colspan="4" style="padding: 0px 9px; width: 59px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: right">&#160;</p></td></tr> <tr> <td style="padding: 0px 9px; width: 128px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">Components</p></td> <td colspan="2" style="padding: 0px 9px; width: 19px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td colspan="2" style="padding: 0px 9px; width: 23px; margin-top: 0px; vertical-align: bottom"> <p style="margin-bottom: 5px; margin-top: 5px; line-height: 13.5pt; text-align: justify">&#160;</p></td> <td style="padding: 0px 9px; width: 65px; margin-top: 0px; vertical-align: bottom"> <p 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Document and Entity Information - shares
6 Months Ended
Jun. 30, 2020
Aug. 14, 2020
Document And Entity Information    
Entity Registrant Name FLEXPOINT SENSOR SYSTEMS INC  
Entity Central Index Key 0000925660  
Document Type 10-Q  
Document Period End Date Jun. 30, 2020  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Shell Company false  
Entity Emerging Growth Company false  
Entity Common Stock, Shares Outstanding   99,713,464
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2020  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Incorporation, State or Country Code DE  
Entity File Number 0-24368  
Document Quarterly Report true  
Document Transition Report false  
XML 12 R2.htm IDEA: XBRL DOCUMENT v3.20.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Jun. 30, 2020
Dec. 31, 2019
Current Assets    
Cash and cash equivalents $ 170,004
Accounts receivable, net of allowance for bad debts of $114,991 and $114,991 67,364 26,471
Deposits and prepaid expenses 30,664 26,517
Total Current Assets 98,029 222,992
Long-Term Deposits 6,550 6,550
Property and Equipment, net of accumulated depreciation of $596,604 and $593,484 2,570 3,690
Goodwill 4,896,917 4,896,917
Total Assets 5,004,066 5,130,149
Current Liabilities    
Bank overdraft 6,381
Accounts payable 218,547 177,647
Accounts payable - related party 2,197
Accrued liabilities 1,819,890 1,616,951
Note payable, current 32,081
Convertible notes payable, net of discount of $-0- and $-0- 930,000 930,000
Convertible notes payable to related party, net of discount of $-0- and $-0- 218,513
Total Current Liabilities 3,225,412 2,726,795
Long-term Liabilities    
Notes payable, net of current portion 27,419
Convertible notes payable to related party, net of discount of $-0- and $-0- 218,513
Total Liabilities 3,252,831 2,945,308
Stockholders' Equity    
Preferred stock - $0.001 par value; 1,000,000 shares authorized; no shares issued or outstanding
Common stock - $0.001 par value; 200,000,000 shares authorized; 99,713,464 shares issued and outstanding 99,713 99,713
Additional paid-in capital 30,872,733 30,872,733
Accumulated deficit (29,211,211) (28,787,605)
Total Stockholders' Equity 1,751,235 2,184,841
Total Liabilities and Stockholders' Equity $ 5,004,066 $ 5,130,149
XML 13 R3.htm IDEA: XBRL DOCUMENT v3.20.2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
Jun. 30, 2020
Dec. 31, 2019
Statement of Financial Position [Abstract]    
Accounts receivable, allowance for bad debts $ 114,991 $ 114,991
Property and Equipment, accumulated depreciation 596,604 593,484
Convertible notes payable, discount 0 0
Convertible notes payable to related party, current discount 0 0
Convertible notes payable to related party, non-current discount $ 0 $ 0
Preferred stock, par value per share $ 0.001 $ 0.001
Preferred stock, shares authorized 1,000,000 1,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value per share $ 0.001 $ 0.001
Common stock, shares authorized 200,000,000 200,000,000
Common stock, shares issued 99,713,464 99,713,464
Common stock, shares outstanding 99,713,464 99,713,464
XML 14 R4.htm IDEA: XBRL DOCUMENT v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Income Statement [Abstract]        
Design, Contract and Testing Revenue $ 42,195 $ 572,446 $ 81,298 $ 637,041
Operating Costs and Expenses        
Amortization of patents and proprietary technology 6,823 13,645
Cost of revenue 21,333 9,868 29,502 20,661
Administrative and marketing expense 89,868 129,560 260,259 253,486
Research and development expense 70,820 74,306 147,619 153,458
Total Operating Costs and Expenses 182,021 220,557 437,380 441,250
Net Operating Income (Loss) (139,826) 351,889 (356,082) 195,791
Other Income and Expenses        
Interest expense (39,153) (80,583) (77,792) (156,782)
Interest income 36 11 268 23
Gain (Loss) on extinguishment of debt 90,325 90,325
Gain(Loss) on derivative (254,157) (288,694)
Total Other Income (Expense) (39,117) (244,404) (77,524) (355,128)
Net Income (Loss) $ (178,943) $ 107,485 $ (433,606) $ (159,337)
Basic and Diluted Earnings per Common Share $ (0.00) $ (0.00) $ (0.00) $ (0.00)
Basic and Diluted Weighted-Average Common Shares Outstanding 99,713,464 95,704,123 99,713,464 94,291,641
XML 15 R5.htm IDEA: XBRL DOCUMENT v3.20.2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Deficit [Member]
Total
Beginning balance at Dec. 31, 2018 $ 92,863 $ 29,785,568 $ (28,212,547) $ 1,665,884
Beginning balance, shares at Dec. 31, 2018 92,863,464      
Net income (loss) (266,822) (266,822)
Ending balance at Mar. 31, 2019 $ 92,863 29,785,568 (28,479,369) 1,399,062
Ending balance, shares at Mar. 31, 2019 92,863,464      
Conversion of notes payable to common stock $ 6,850 332,237 339,087
Conversion of notes payable to common stock, shares 6,850,000      
Net income (loss) 107,485 107,485
Ending balance at Jun. 30, 2019 $ 99,713 30,117,805 (28,371,884) 1,845,634
Ending balance, shares at Jun. 30, 2019 99,713,464      
Beginning balance at Dec. 31, 2019 $ 99,713 30,872,733 (28,787,605) $ 2,184,841
Beginning balance, shares at Dec. 31, 2019 99,713,464     99,713,464
Net income (loss) (254,663) $ (254,663)
Ending balance at Mar. 31, 2020 $ 99,713 30,872,733 (29,042,268) 1,930,178
Ending balance, shares at Mar. 31, 2020 99,713,464      
Net income (loss) (178,943) (178,943)
Ending balance at Jun. 30, 2020 $ 99,713 $ 30,872,733 $ (29,221,211) $ 1,751,235
Ending balance, shares at Jun. 30, 2020 99,713,464     99,713,464
XML 16 R6.htm IDEA: XBRL DOCUMENT v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Cash Flows from Operating Activities:    
Net loss $ (433,606) $ (159,337)
Adjustments to reconcile net loss to net cash used in operating activities:    
Amortization of patents and proprietary technology 13,645
Amortization of discount on note payable 66,685
Depreciation 1,120 1,120
Gain on settlement of debt (90,325)
Gain (loss) on change in fair value of derivative liabilities 288,694
Changes in operating assets and liabilities:    
Accounts receivable (40,893) 3,578
Prepaid expenses and other assets (4,148) 2,537
Accounts payable 40,900 (68,824)
Accounts payable - related parties (2,197) 19,000
Accrued liabilities 202,939 188,873
Net Cash Provided by (Used) in Operating Activities (235,885) 265,645
Cash Flows from Financing Activities:    
Proceeds from borrowings under note payable 59,500
Proceeds from bank overdrafts 6,381
Proceeds from borrowings under convertible note payable 100,000
Net Cash Provided by Financing Activities 65,881 100,000
Net Change in Cash and Cash Equivalents (170,004) 365,645
Cash and Cash Equivalents at Beginning of Period 170,004 17,798
Cash and Cash Equivalents at End of Period 383,443
Supplemental Cash Flow Information:    
Cash paid for income taxes
Cash paid for interest
Supplemental Disclosure on Noncash Investing and Financing Activities    
Recognition of discounts on convertible notes payable 86,332
Conversion of note payable and accrued interest to common stock 410,890
Conversion of due to related party to convertible notes 39,000
Gain on settlement of debt $ 90,325
XML 17 R7.htm IDEA: XBRL DOCUMENT v3.20.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
6 Months Ended
Jun. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Condensed Consolidated Interim Financial Statements – The accompanying unaudited condensed consolidated financial statements include the accounts of Flexpoint Sensor Systems, Inc. (the “Company”). These financial statements are condensed and, therefore, do not include all disclosures normally required by accounting principles generally accepted in the United States of America. Therefore, these statements should be read in conjunction with the most recent annual consolidated financial statements of Flexpoint Sensor Systems, Inc. for the year ended December 31, 2019 included in the Company’s Form 10-K filed with the Securities and Exchange Commission on March 30, 2020. In particular, the Company’s significant accounting principles were presented as Note 1 to the Consolidated Financial Statements in that report. In the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying condensed consolidated financial statements and consist of only normal recurring adjustments. The results of operations presented in the accompanying condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020.


Nature of Operations – Flexpoint Sensor Systems, Inc. (the Company) is located in Draper, Utah. The Company’s activities to date have included acquiring equipment and enhancing technology, obtaining financing, limited production and seeking long-term manufacturing contracts. The Company’s operations are in designing, engineering, manufacturing and selling sensor technology and equipment using flexible potentiometer technology. Through June 30, 2020, the Company continued to manufacture products and sensors to fill customer orders and provide engineering and design work.

 

The recent COVID 19 Pandemic (“the Pandemic”) has had a dramatic effect on our business as well as the business of our customers.  The wide ranging effects on the World Wide business market has led to a general reluctance for businesses to move forward with entering into major commitments until their future markets have been clarified. Because of this, we have experienced a significant slowdown in the size and number of orders received and, while we cannot predict when the influence of the Pandemic will end, we expect that orders will return to their former levels and increase following a return to normal business operations.


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.


Cash and Cash Equivalents – Cash and cash equivalents are considered to be cash and highly liquid securities with original maturities of three months or less.


Fair Value MeasurementsThe fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk, including the party’s own credit risk.

 

Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories:

 

Level 1: Quoted market prices in active markets for identical assets or liabilities.

 

Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.

 

Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities.

 

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed and is determined based on the lowest level input that is significant to the fair value measurement.

 

The carrying value of the Company’s cash, accounts payable, short-term borrowings (including convertible notes payable), and other current assets and liabilities approximate fair value because of their short-term maturity.

 

Accounts Receivable – Trade accounts receivable are recorded at the time product is shipped or services are provided including any shipping and handling fees. Contracts associated with design and development engineering generally require a deposit of 50% of the quoted price prior to the commencement of work. The deposit is considered deferred income until the entire project is completed and accepted by the customer, at which time the entire contract price is billed to the customer and the deposit applied. The Company has established an allowance for bad debts based on a historical experience and an analysis of risk associated with the account balances.  The balance in the allowance account was $114,991 and $114,991 in the periods ended June 30, 2020 and December 31, 2019, respectively.  


Inventories – The Company does not currently have inventory.  However, as production levels increase inventories will be carried on the balance sheet.  Inventories will be stated at the lower of cost or market or net realizable value. Cost is determined by using the first in, first out (FIFO) method.  


Property and Equipment Property and equipment are stated at cost.  Additions and major improvements are capitalized while maintenance and repairs are charged to operations.  Upon trade-in, sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is recognized. Depreciation is computed using the straight-line method and is recognized over the estimated useful lives of the property and equipment, which range from three to ten years.


Valuation of Long-lived Assets – The carrying values of the Company’s long-lived assets are reviewed for impairment annually and whenever events or changes in circumstances indicate that they may not be recoverable. When projections indicate that the carrying value of the long-lived asset is not recoverable, the carrying value is reduced by the estimated excess of the carrying value over the projected discounted cash flows. Under similar analysis no impairment charge was taken during the six-month period ended June 30, 2020 and during the year ended December 31, 2019.  Impairment tests will be conducted on an annual basis and, should they indicate a carrying value in excess of fair value, additional impairment charges may be required.


Intangible Assets – Costs to obtain or develop patents are capitalized and amortized over the remaining life of the patents, and technology rights are amortized over their estimated useful lives. The Company currently has the right to several patents and proprietary technology.  Patents and technology are amortized from the date the Company acquires or is awarded the patent or technology right, 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.  Under similar analysis there was no impairment charge taken during the six-month period ended June 30, 2020 and during year ended December 31, 2019.


Research and Development – Research and development costs are recognized as an expense during the period incurred, which is until the conceptual formulation, design, and testing of a process is completed and the process has been determined to be commercially viable.


Lease Obligations – While the Company has adopted ASC 842 the Company has no leases at the date of this report that are required to be reported under ASC 842.  As the Company enters into such leases it will record obligations under all leases it has entered into pursuant to the reporting requirements under ASC 842, allocating such obligations between current and long term.  


Goodwill – Goodwill represents the excess of the Company’s reorganization value over the fair value of net assets of the Company upon emergence from bankruptcy. Goodwill is not amortized, but is tested for impairment annually, or at interim periods when a triggering event occurs using a fair value approach. According to Accounting Standards Codification (or “ASC”) 350-20 Intangibles – Goodwill and Other, a fair-value-based test is applied at the overall Company level. The test compares the fair value of the Company to the carrying value of its net assets. This test requires various judgments and estimates. The fair value of the Company is allocated to the Company’s assets and liabilities based upon their fair values with the excess fair value allocated to goodwill. An impairment of goodwill is measured as the excess of the carrying amount of goodwill over the determined fair value.


Revenue Recognition – On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers, and all of the related amendments (“new revenue standard”).  We have applied the new revenue standard to all contracts as of the date of the initial adoption.  The new revenue standard establishes five steps whereby a transaction is analyzed to determine if revenue has been earned and can be recognized.  The adoption of the new revenue standard did not have any effect on our financial statements.  The vast majority of our sales are made to order, for which orders we require a deposit of 50% of the value of the order.  That amount is put in a customer deposit account until the entire order has been manufactured and shipped.  At the ship date, the Company has no further obligations under the contract and the revenue from the sale is recognized.


A part of our customer base is made up of international customers.  The table below allocates revenue between domestic and international customers.  The following table presents Flexpoint Sensor Systems revenues disaggregated by region and product type:


Three months ended:

 

June 30,

 

 

 

June 30,

 

 

 

2020

 

 

 

2019

 

 

 

Long-term

 

 

 

Long-term

 

 

 

Consumer

 

 

 

 

 

Consumer

 

 

Segments

 

 

Products

Contract

Total

 

 

 

Products

Contract

Total

Domestic

 

$

1,386

-

1,386

 

 

$

519,103

-

519,103

International

 

 

40,809

-

40,809

 

 

 

53,546

-

53,546

 

 

$

42,195

-

42,195

 

 

$

572,649

-

572,649

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Components

 

 

39,631

-

39,631

 

 

 

54,669

-

54,669

Engineering Services

 

 

2,564

-

2,564

 

 

 

67,980

-

67,980

Licensing fee

 

 

-

-

-

 

 

 

450,000

-

450,000

 

 

$

42,195

-

42,195

 

 

$

572,649

-

572,649


Six months ended:

 

 

June 30,

 

 

 

June 30,

 

 

 

2020

 

 

 

2019

 

 

 

Consumer

Long-term

 

 

 

 

Consumer

Long-term

 

Segments

 

 

Products

Contract

Total

 

 

 

Products

Contract

Total

Domestic

 

$

28,720

-

28,720

 

 

$

535,151

-

535,151

International

 

 

52,578

-

52,578

 

 

 

101,890

-

101,890

 

 

$

81,298

-

81,298

 

 

$

637,041

-

637,041

 

 

 

 

 

 

 

 

 

 

 

 

Components

 

 

60,735

-

60,735

 

 

 

112,638

-

112,638

Engineering Services

 

 

20,563

-

20,563

 

 

 

74,403

-

74,403

Licensing fee

 

 

-

-

-

 

 

 

450,000

-

450,000

 

 

$

81,298

-

81,298

 

 

$

637,041

-

637,041


Basic and Diluted Loss Per Share – Basic loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period.  Diluted loss per share is computed by dividing net loss by the weighted-average number of common shares and dilutive potential common shares outstanding during the period. At June 30, 2020 and 2019 there were outstanding common share equivalents (options and convertible notes payable) which amounted to 25,196,690 and 22,248,463 of common stock, respectively. These common share equivalents were not included in the computation of diluted earnings per share for the six-month periods ended June 30, 2020 and 2019 as their effect would have been anti-dilutive, thereby decreasing loss per common share.


Concentrations and Credit Risk - The Company has a few major customers who represent a significant portion of revenue, accounts receivable and notes receivable.  During the six-month period ended June 30, 2020, four customers represented 85% of sales and three other customers represented 94% of accounts receivable.  The Company has a strong ongoing relationship with these customers with scheduled delivery extending through the year and does not believe this concentration poses a significant risk, as their products are based entirely on the Company’s technologies.  


Income Taxes - The Company accounts for income taxes in accordance with Statement of Financial Accounting Standards Board Accounting Codification (ASC) 740: Income Taxes.  Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the differences are expected to reverse.  Deferred tax assets will be reflected on the balance sheet when it is determined that it is more likely than not that the asset will be realized


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.

XML 18 R8.htm IDEA: XBRL DOCUMENT v3.20.2
GOING CONCERN
6 Months Ended
Jun. 30, 2020
GOING CONCERN[Abstract]  
GOING CONCERN

NOTE 2 – GOING CONCERN


The Company continues to accumulate significant operating losses and has an accumulated deficit of $29,221,211 at June 30, 2020.  These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.


Management is seeking additional funding to provide operating capital for its operations until such time as revenues are sufficient to sustain our level of operations.  However, there is no assurance that additional funding will be available on acceptable terms, if at all.

XML 19 R9.htm IDEA: XBRL DOCUMENT v3.20.2
NOTES PAYABLE
6 Months Ended
Jun. 30, 2020
Notes Payable [Abstract]  
NOTES PAYABLE

NOTE 3 – NOTES PAYABLE


The Company applied for and received a Small Business Administration loan under the Paycheck Protection Program in the amount of $59,500.  The loan was funded on April 30, 2020, bears an interest rate of 1% per annum and has a maturity date of April 30, 2022.  Under the terms of the borrowing it is expected that this entire loan amount will be forgiven at such time as the lending institution published the form under which the request for forgiveness of the loan can be filed.  The funds obtained under this loan were used for the payment of salaries, health insurance costs, rent and utilities, all of which expenses qualify for the loan forgiveness under the terms of the loan.

XML 20 R10.htm IDEA: XBRL DOCUMENT v3.20.2
CONVERTIBLE NOTES PAYABLE
6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
CONVERTIBLE NOTES PAYABLE

NOTE 4 – CONVERTIBLE NOTES PAYABLE


Convertible Note Payable


At June 30, 2020, there are notes outstanding with principal balances which total $930,000. Of the notes, $890,000 are convertible notes bearing a 10% annual rate of interest (with a 15% default rate) and are convertible into shares of common stock at the rate of $0.05 to $0.07 per share.  $40,000 is a convertible note entered into on August 8, 2011 with a former Company Director, at a rate of $0.20 per share.  That note was due on December 31, 2015 and bears a default interest rate of 10%.


Convertible Note Payable - Related Party


At June 30, 2020, there are notes outstanding with two directors of the Company with balances of $164,257 and $54,256, respectively.  The notes bear an 8% annual rate of interest with a 12% default rate and are convertible into shares of restricted common stock. Of the notes, $114,513 is convertible into shares of restricted common stock at $0.07 per share and $104,000 of the notes are convertible at $0.06 per share.  All of these notes have a maturity date of March 31, 2021.

XML 21 R11.htm IDEA: XBRL DOCUMENT v3.20.2
STOCK OPTION PLANS
6 Months Ended
Jun. 30, 2020
STOCK OPTION PLANS [Abstract]  
STOCK OPTION PLANS

NOTE 5 STOCK OPTION PLANS


On August 25, 2005, the Board of Directors of the Company approved and adopted the 2005 Stock Incentive Plan (the Plan). The Plan became effective upon its adoption by the Board and continued in effect for ten years, terminating on August 25, 2015.  This plan was approved by the stockholders of the Company at their annual meeting of shareholders on November 22, 2005. Under the Plan, the exercise price for all options issued will not be less than the average quoted closing market price of the Company’s trading common stock for the thirty-day period immediately preceding the grant date plus a premium of ten percent. The maximum aggregate number of shares that may be awarded under the plan is 2,500,000 shares.  The Company continues to utilize the Black-Scholes option-pricing model for calculating the fair value of the options granted as defined by ASC Topic 718, which is an acceptable valuation approach under ASC 718. This model requires the input of subjective assumptions, including the expected price volatility of the underlying stock.


On August 24, 2015, the Board of Directors approved the issuance of options to purchase 2,185,000 shares of the Company’s common stock.  Of the total issued, 1,960,000 options were issued to replace options held by directors and employees, which were to expire, and 225,000 options were issued to new employees.  Of the options issued, 640,000 have an option price of $0.14 per share, 500,000 have an option price of $0.15 per share, 995,000 have an option price of $0.20 per share, and 50,000 have an option price of $0.25 per share.  Options issued as replacement options for shares surrendered shall have immediate vesting terms. Options which are not replacements vested over a two year four month period in equal installments on the last day of 2015, 2016 and 2017, respectively.  


Projected data related to the expected volatility and expected life of stock options is based upon historical and other information, and notably, the Company's common stock has limited trading history. Changes in these subjective assumptions can materially affect the fair value of the estimate, and therefore, the existing valuation models do not provide a precise measure of the fair value of the Company's employee stock options.


Between August 25, 2005 and August 25, 2019, the Company granted options to employees to purchase an aggregate 3,096,000 shares of common stock at exercise prices ranging from $0.15 to $2.07 per share.  The options all vested by December 31, 2017 and expire 10 years from the date of grant.  


As of the years ended December 31, 2005 through 2019, the Company recognized a total of $2,443,768 of stock-based compensation expense, which includes charges of $0 in 2019 and $9 in 2018, leaving $0 in unrecognized expense as of December 31, 2019. There were 2,185,000 and 2,185,000 employee stock options outstanding at June 30, 2020 and December 31, 2019, respectively.  

A summary of all employee options outstanding and exercisable under the plan as of June 30, 2020, and changes during the three months then ended is set forth below:


 

 

 

 

 

Options

Shares

Weighted Average Exercise Price

Weighted Average Remaining Contractual  Life (Years)

Aggregate Intrinsic Value

 

 

 

 

 

Outstanding at the beginning of period

         2,185,000

 $                0.17

             5.65

 $              --

   Granted

                     --

                             --

                   --

                 --

   Expired

                     --

                             --

                   --

                 --

   Forfeited

                     --

                             --

                   --

                 --

Outstanding at the end of Period

       2,185,000

 $                 0.17

             5.16

$               --

Exercisable at the end of Period

2,185,000

 $                 0.17

           5.16

$               --

XML 22 R12.htm IDEA: XBRL DOCUMENT v3.20.2
CAPITAL STOCK
6 Months Ended
Jun. 30, 2020
CAPITAL STOCK [Abstract]  
CAPITAL STOCK

NOTE 6 – CAPITAL STOCK


Preferred Stock – There are 1,000,000 shares of preferred stock with a par value of $0.001 per share authorized.  At June 30, 2020 and December 31, 2019, there were no shares of preferred stock issued or outstanding.


Common Stock – There are 200,000,000 shares of common stock with a par value of $0.001 per share authorized.  At June 30, 2020 and December 31, 2019, there were 99,713,464 shares of common stock issued and outstanding.  The Company issued no stock during the six months ended June 30, 2020.

XML 23 R13.htm IDEA: XBRL DOCUMENT v3.20.2
COMMITMENTS AND CONTINGENCIES
6 Months Ended
Jun. 30, 2020
COMMITMENTS AND CONTINGENCIES [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 7 – COMMITMENTS AND CONTINGENCIES


The Company currently occupies approximately 12,548 square feet of office and manufacturing space from F.G.B.P. LLC.  The building is located in a business park in Draper, Utah that consists primarily of high tech manufacturing firms and is located adjacent to Utah’s main interstate highway.  The Company entered into a new lease in 2019 for this facility.  The lease entered into is a month-to-month lease with a 90-day termination clause and includes a basic lease payment as well as an additional component for building costs and taxes.  The basic lease rate for Year 1 is $12,000 a month; it increases 3% each year thereafter.  With the basic and additional component, the Company expects to pay a total lease payment of approximately $14,635 per month in 2020.  The Company evaluated the lease under the new lease accounting standard and determined that it was a short-term lease due to the month-to-month provision and the 90-day notice of termination clause.

XML 24 R14.htm IDEA: XBRL DOCUMENT v3.20.2
RELATED PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2020
RELATED PARTY TRANSACTIONS [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 8 – RELATED PARTY TRANSACTIONS


At June 30, 2020, there was no amount payable to related parties.  At December 31, 2019, the Company had amounts of $2,197 payable to its Chief Executive Officer for expense reports which had been submitted for payment but were unpaid at December 31, 2019.  


In May 2019, the Company converted the amounts payable to officers to convertible notes in the amounts of $22,000 and $17,000.  The notes bear interest at the rate of 8% per annum with a default rate of 12%, are convertible into shares of common stock at $0.06 per share, and have a maturity date of March 31, 2021.


At June 30, 2020 and December 31, 2019, the Company had outstanding notes payable to an officer in the amount of $164,257 and outstanding notes payable to a director in the amount of $54,256.

XML 25 R15.htm IDEA: XBRL DOCUMENT v3.20.2
SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2020
SUBSEQUENT EVENTS [Abstract]  
SUBSEQUENT EVENTS

NOTE 9 – SUBSEQUENT EVENTS


The Company has evaluated subsequent events pursuant to ASC Topic 855 and has determined that there are no events that require disclosure as of the date of issuance.


The majority of non-essential businesses are still closed or operating on a limited basis.  It is therefore anticipated that revenue will continue to be negatively impacted through at a minimum the third quarter of 2020.  Our ability to generate revenue will be dependent upon the pace at which businesses are allowed to resume operations.

XML 26 R16.htm IDEA: XBRL DOCUMENT v3.20.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
6 Months Ended
Jun. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]  
Condensed Consolidated Interim Financial Statements

Condensed Consolidated Interim Financial Statements – The accompanying unaudited condensed consolidated financial statements include the accounts of Flexpoint Sensor Systems, Inc. (the “Company”). These financial statements are condensed and, therefore, do not include all disclosures normally required by accounting principles generally accepted in the United States of America. Therefore, these statements should be read in conjunction with the most recent annual consolidated financial statements of Flexpoint Sensor Systems, Inc. for the year ended December 31, 2019 included in the Company’s Form 10-K filed with the Securities and Exchange Commission on March 30, 2020. In particular, the Company’s significant accounting principles were presented as Note 1 to the Consolidated Financial Statements in that report. In the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying condensed consolidated financial statements and consist of only normal recurring adjustments. The results of operations presented in the accompanying condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020.

Nature of Operations

Nature of Operations – Flexpoint Sensor Systems, Inc. (the Company) is located in Draper, Utah. The Company’s activities to date have included acquiring equipment and enhancing technology, obtaining financing, limited production and seeking long-term manufacturing contracts. The Company’s operations are in designing, engineering, manufacturing and selling sensor technology and equipment using flexible potentiometer technology. Through June 30, 2020, the Company continued to manufacture products and sensors to fill customer orders and provide engineering and design work.

 

The recent COVID 19 Pandemic (“the Pandemic”) has had a dramatic effect on our business as well as the business of our customers.  The wide ranging effects on the World Wide business market has led to a general reluctance for businesses to move forward with entering into major commitments until their future markets have been clarified. Because of this, we have experienced a significant slowdown in the size and number of orders received and, while we cannot predict when the influence of the Pandemic will end, we expect that orders will return to their former levels and increase following a return to normal business operations. 

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.

Cash and Cash Equivalents

Cash and Cash Equivalents – Cash and cash equivalents are considered to be cash and highly liquid securities with original maturities of three months or less.

Fair Value Measurements

Fair Value MeasurementsThe fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk, including the party’s own credit risk.

 

Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories:

 

Level 1: Quoted market prices in active markets for identical assets or liabilities.

 

Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.

 

Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities.

 

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed and is determined based on the lowest level input that is significant to the fair value measurement.

 

The carrying value of the Company’s cash, accounts payable, short-term borrowings (including convertible notes payable), and other current assets and liabilities approximate fair value because of their short-term maturity.

Accounts Receivable

Accounts Receivable – Trade accounts receivable are recorded at the time product is shipped or services are provided including any shipping and handling fees. Contracts associated with design and development engineering generally require a deposit of 50% of the quoted price prior to the commencement of work. The deposit is considered deferred income until the entire project is completed and accepted by the customer, at which time the entire contract price is billed to the customer and the deposit applied. The Company has established an allowance for bad debts based on a historical experience and an analysis of risk associated with the account balances.  The balance in the allowance account was $114,991 and $114,991 in the periods ended June 30, 2020 and December 31, 2019, respectively.  

Inventories

Inventories – The Company does not currently have inventory.  However, as production levels increase inventories will be carried on the balance sheet.  Inventories will be stated at the lower of cost or market or net realizable value. Cost is determined by using the first in, first out (FIFO) method.  

Property and Equipment

Property and Equipment Property and equipment are stated at cost.  Additions and major improvements are capitalized while maintenance and repairs are charged to operations.  Upon trade-in, sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is recognized. Depreciation is computed using the straight-line method and is recognized over the estimated useful lives of the property and equipment, which range from three to ten years.

Valuation of Long-lived Assets

Valuation of Long-lived Assets – The carrying values of the Company’s long-lived assets are reviewed for impairment annually and whenever events or changes in circumstances indicate that they may not be recoverable. When projections indicate that the carrying value of the long-lived asset is not recoverable, the carrying value is reduced by the estimated excess of the carrying value over the projected discounted cash flows. Under similar analysis no impairment charge was taken during the six-month period ended June 30, 2020 and during the year ended December 31, 2019.  Impairment tests will be conducted on an annual basis and, should they indicate a carrying value in excess of fair value, additional impairment charges may be required.

Intangible Assets

Intangible Assets – Costs to obtain or develop patents are capitalized and amortized over the remaining life of the patents, and technology rights are amortized over their estimated useful lives. The Company currently has the right to several patents and proprietary technology.  Patents and technology are amortized from the date the Company acquires or is awarded the patent or technology right, 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.  Under similar analysis there was no impairment charge taken during the six-month period ended June 30, 2020 and during year ended December 31, 2019.

Research and Development

Research and Development – Research and development costs are recognized as an expense during the period incurred, which is until the conceptual formulation, design, and testing of a process is completed and the process has been determined to be commercially viable.

Lease Obligations

Lease Obligations – While the Company has adopted ASC 842 the Company has no leases at the date of this report that are required to be reported under ASC 842.  As the Company enters into such leases it will record obligations under all leases it has entered into pursuant to the reporting requirements under ASC 842, allocating such obligations between current and long term.

Goodwill

Goodwill – Goodwill represents the excess of the Company’s reorganization value over the fair value of net assets of the Company upon emergence from bankruptcy. Goodwill is not amortized, but is tested for impairment annually, or at interim periods when a triggering event occurs using a fair value approach. According to Accounting Standards Codification (or “ASC”) 350-20 Intangibles – Goodwill and Other, a fair-value-based test is applied at the overall Company level. The test compares the fair value of the Company to the carrying value of its net assets. This test requires various judgments and estimates. The fair value of the Company is allocated to the Company’s assets and liabilities based upon their fair values with the excess fair value allocated to goodwill. An impairment of goodwill is measured as the excess of the carrying amount of goodwill over the determined fair value.

Revenue Recognition

Revenue Recognition – On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers, and all of the related amendments (“new revenue standard”).  We have applied the new revenue standard to all contracts as of the date of the initial adoption.  The new revenue standard establishes five steps whereby a transaction is analyzed to determine if revenue has been earned and can be recognized.  The adoption of the new revenue standard did not have any effect on our financial statements.  The vast majority of our sales are made to order, for which orders we require a deposit of 50% of the value of the order.  That amount is put in a customer deposit account until the entire order has been manufactured and shipped.  At the ship date, the Company has no further obligations under the contract and the revenue from the sale is recognized.


A part of our customer base is made up of international customers.  The table below allocates revenue between domestic and international customers.  The following table presents Flexpoint Sensor Systems revenues disaggregated by region and product type:


Three months ended:

 

June 30,

 

 

 

June 30,

 

 

 

2020

 

 

 

2019

 

 

 

Long-term

 

 

 

Long-term

 

 

 

Consumer

 

 

 

 

 

Consumer

 

 

Segments

 

 

Products

Contract

Total

 

 

 

Products

Contract

Total

Domestic

 

$

1,386

-

1,386

 

 

$

519,103

-

519,103

International

 

 

40,809

-

40,809

 

 

 

53,546

-

53,546

 

 

$

42,195

-

42,195

 

 

$

572,649

-

572,649

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Components

 

 

39,631

-

39,631

 

 

 

54,669

-

54,669

Engineering Services

 

 

2,564

-

2,564

 

 

 

67,980

-

67,980

Licensing fee

 

 

-

-

-

 

 

 

450,000

-

450,000

 

 

$

42,195

-

42,195

 

 

$

572,649

-

572,649


Six months ended:

 

 

June 30,

 

 

 

June 30,

 

 

 

2020

 

 

 

2019

 

 

 

Consumer

Long-term

 

 

 

 

Consumer

Long-term

 

Segments

 

 

Products

Contract

Total

 

 

 

Products

Contract

Total

Domestic

 

$

28,720

-

28,720

 

 

$

535,151

-

535,151

International

 

 

52,578

-

52,578

 

 

 

101,890

-

101,890

 

 

$

81,298

-

81,298

 

 

$

637,041

-

637,041

 

 

 

 

 

 

 

 

 

 

 

 

Components

 

 

60,735

-

60,735

 

 

 

112,638

-

112,638

Engineering Services

 

 

20,563

-

20,563

 

 

 

74,403

-

74,403

Licensing fee

 

 

-

-

-

 

 

 

450,000

-

450,000

 

 

$

81,298

-

81,298

 

 

$

637,041

-

637,041

Basic and Diluted Loss Per Share

Basic and Diluted Loss Per Share – Basic loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period.  Diluted loss per share is computed by dividing net loss by the weighted-average number of common shares and dilutive potential common shares outstanding during the period. At June 30, 2020 and 2019 there were outstanding common share equivalents (options and convertible notes payable) which amounted to 25,196,690 and 22,248,463 of common stock, respectively. These common share equivalents were not included in the computation of diluted earnings per share for the six-month periods ended June 30, 2020 and 2019 as their effect would have been anti-dilutive, thereby decreasing loss per common share.

Concentrations and Credit Risk

Concentrations and Credit Risk - The Company has a few major customers who represent a significant portion of revenue, accounts receivable and notes receivable.  During the six-month period ended June 30, 2020, four customers represented 85% of sales and three other customers represented 94% of accounts receivable.  The Company has a strong ongoing relationship with these customers with scheduled delivery extending through the year and does not believe this concentration poses a significant risk, as their products are based entirely on the Company’s technologies.  

Income Taxes

Income Taxes - The Company accounts for income taxes in accordance with Statement of Financial Accounting Standards Board Accounting Codification (ASC) 740: Income Taxes.  Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the differences are expected to reverse.  Deferred tax assets will be reflected on the balance sheet when it is determined that it is more likely than not that the asset will be realized

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.

XML 27 R17.htm IDEA: XBRL DOCUMENT v3.20.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
6 Months Ended
Jun. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]  
Schedule of Disaggregated Revenue

A part of our customer base is made up of international customers. The table below allocates revenue between domestic and international customers.  The following table presents Flexpoint Sensor Systems revenues disaggregated by region and product type:


Three months ended:

 

June 30,

 

 

 

June 30,

 

 

 

2020

 

 

 

2019

 

 

 

Long-term

 

 

 

Long-term

 

 

 

Consumer

 

 

 

 

 

Consumer

 

 

Segments

 

 

Products

Contract

Total

 

 

 

Products

Contract

Total

Domestic

 

$

1,386

-

1,386

 

 

$

519,103

-

519,103

International

 

 

40,809

-

40,809

 

 

 

53,546

-

53,546

 

 

$

42,195

-

42,195

 

 

$

572,649

-

572,649

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Components

 

 

39,631

-

39,631

 

 

 

54,669

-

54,669

Engineering Services

 

 

2,564

-

2,564

 

 

 

67,980

-

67,980

Licensing fee

 

 

-

-

-

 

 

 

450,000

-

450,000

 

 

$

42,195

-

42,195

 

 

$

572,649

-

572,649


Six months ended:

 

 

June 30,

 

 

 

June 30,

 

 

 

2020

 

 

 

2019

 

 

 

Consumer

Long-term

 

 

 

 

Consumer

Long-term

 

Segments

 

 

Products

Contract

Total

 

 

 

Products

Contract

Total

Domestic

 

$

28,720

-

28,720

 

 

$

535,151

-

535,151

International

 

 

52,578

-

52,578

 

 

 

101,890

-

101,890

 

 

$

81,298

-

81,298

 

 

$

637,041

-

637,041

 

 

 

 

 

 

 

 

 

 

 

 

Components

 

 

60,735

-

60,735

 

 

 

112,638

-

112,638

Engineering Services

 

 

20,563

-

20,563

 

 

 

74,403

-

74,403

Licensing fee

 

 

-

-

-

 

 

 

450,000

-

450,000

 

 

$

81,298

-

81,298

 

 

$

637,041

-

637,041

XML 28 R18.htm IDEA: XBRL DOCUMENT v3.20.2
STOCK OPTION PLANS (Tables)
6 Months Ended
Jun. 30, 2020
STOCK OPTION PLANS [Abstract]  
Schedule of Stock Option Activity

A summary of all employee options outstanding and exercisable under the plan as of June 30, 2020, and changes during the three months then ended is set forth below:


 

 

 

 

 

Options

Shares

Weighted Average Exercise Price

Weighted Average Remaining Contractual  Life (Years)

Aggregate Intrinsic Value

 

 

 

 

 

Outstanding at the beginning of period

         2,185,000

 $                0.17

             5.65

 $              --

   Granted

                     --

                             --

                   --

                 --

   Expired

                     --

                             --

                   --

                 --

   Forfeited

                     --

                             --

                   --

                 --

Outstanding at the end of Period

       2,185,000

 $                 0.17

             5.16

$               --

Exercisable at the end of Period

2,185,000

 $                 0.17

           5.16

$               --

XML 29 R19.htm IDEA: XBRL DOCUMENT v3.20.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Nature Of Business [Line Items]      
Anti-dilutive securities excluded from computation of earnings per share amount 25,196,690 22,248,463  
Percentage of value of order in vast majority of sales 50.00%    
Accounts receivable, allowance for bad debts $ 114,991   $ 114,991
Sales [Member] | Customer Four [Member]      
Nature Of Business [Line Items]      
Risk percentage 85.00%    
Accounts Receivable [Member] | Customer Three [Member]      
Nature Of Business [Line Items]      
Risk percentage 94.00%    
Minimum [Member]      
Nature Of Business [Line Items]      
Property and equipment, useful lives 3 years    
Intangible assets, useful lives 5 years    
Maximum [Member]      
Nature Of Business [Line Items]      
Property and equipment, useful lives 10 years    
Intangible assets, useful lives 15 years    
XML 30 R20.htm IDEA: XBRL DOCUMENT v3.20.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Disaggregated Revenues) (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Nature Of Business [Line Items]        
Engineering, Contract and Testing Revenue $ 42,195 $ 572,446 $ 81,298 $ 637,041
Domestic [Member]        
Nature Of Business [Line Items]        
Engineering, Contract and Testing Revenue 1,386 519,103 28,720 535,151
International [Member]        
Nature Of Business [Line Items]        
Engineering, Contract and Testing Revenue 40,809 53,546 52,578 101,890
Components [Member]        
Nature Of Business [Line Items]        
Engineering, Contract and Testing Revenue 39,631 54,669 60,735 112,638
Engineering Services [Member]        
Nature Of Business [Line Items]        
Engineering, Contract and Testing Revenue 2,564 67,980 20,563 74,403
Licensing fee [Member]        
Nature Of Business [Line Items]        
Engineering, Contract and Testing Revenue $ 450,000 $ 450,000
XML 31 R21.htm IDEA: XBRL DOCUMENT v3.20.2
GOING CONCERN (Details) - USD ($)
Jun. 30, 2020
Dec. 31, 2019
Going Concern Details Abstract    
Accumulated deficit $ 29,211,211 $ 28,787,605
XML 32 R22.htm IDEA: XBRL DOCUMENT v3.20.2
NOTES PAYABLE (Details) - USD ($)
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Short-term Debt [Line Items]    
Loan received $ 59,500
Small Business Administration Loan [Member] | Paycheck Protection Program [Member]    
Short-term Debt [Line Items]    
Loan received $ 59,500  
Loan funded date Apr. 30, 2020  
Interest rate of loan 1.00%  
Maturity date of loan Apr. 30, 2022  
XML 33 R23.htm IDEA: XBRL DOCUMENT v3.20.2
CONVERTIBLE NOTES PAYABLE (Narrative) (Details) - USD ($)
1 Months Ended 6 Months Ended
May 31, 2019
Jun. 30, 2020
Aug. 08, 2011
Debt Instrument [Line Items]      
Convertible notes payable, principal amount outstanding   $ 930,000  
Convertible Notes Payable [Member]      
Debt Instrument [Line Items]      
Debt instrument, interest rate 8.00%    
Debt instrument, default rate 12.00%    
Debt instrument, conversion price $ 0.06    
Debt instrument, maturity date Mar. 31, 2021 Dec. 31, 2015  
Convertible Notes Payable [Member] | Minimum [Member]      
Debt Instrument [Line Items]      
Debt instrument, conversion price   $ 0.05  
Convertible Notes Payable [Member] | Maximum [Member]      
Debt Instrument [Line Items]      
Debt instrument, conversion price   $ 0.07  
Convertible Notes Payable [Member] | Director [Member]      
Debt Instrument [Line Items]      
Debt instrument, interest rate     10.00%
Convertible notes payable, balance     $ 40,000
Debt instrument, conversion price     $ 0.20
Convertible Debt [Member]      
Debt Instrument [Line Items]      
Convertible notes payable, principal amount outstanding   $ 890,000  
Debt instrument, interest rate   10.00%  
Debt instrument, default rate   15.00%  
Convertible Notes Payable to Related Party [Member] | Restricted Stock [Member]      
Debt Instrument [Line Items]      
Convertible notes payable, balance   $ 114,513  
Debt instrument, conversion price   $ 0.07  
Convertible notes payable, rest balance conversion   $ 104,000  
Convertible notes payable, rest balance conversion price   $ 0.06  
Debt instrument, maturity date   Mar. 31, 2021  
Convertible Notes Payable to Related Party [Member] | Director [Member]      
Debt Instrument [Line Items]      
Debt instrument, interest rate   8.00%  
Debt instrument, default rate   12.00%  
Convertible Notes Payable to Related Party [Member] | One Director [Member]      
Debt Instrument [Line Items]      
Convertible notes payable, principal amount outstanding   $ 164,257  
Convertible Notes Payable to Related Party [Member] | Two Director [Member]      
Debt Instrument [Line Items]      
Convertible notes payable, principal amount outstanding   $ 54,256  
XML 34 R24.htm IDEA: XBRL DOCUMENT v3.20.2
STOCK OPTION PLANS (Narrative) (Details) - USD ($)
6 Months Ended 12 Months Ended 168 Months Ended
Aug. 24, 2015
Jun. 30, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2019
Aug. 25, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Options granted during period          
Option pricing assumptions            
Stock-based compensation expense     $ 0 $ 9 $ 2,443,768  
Options outstanding   2,185,000 2,185,000   2,185,000  
Unrecognized compensation cost related to employee stock options     $ 0   $ 0  
2005 Stock Incentive Plan [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Effective term   10 years        
Shares authorized   2,500,000        
2005 Stock Incentive Plan [Member] | Stock Options [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Issuance of options for purchase of common shares 2,185,000          
Options granted during period           3,096,000
Exercise price of stock options granted, minimum           $ 0.15
Exercise price of stock options granted, maximum           $ 2.07
Option vesting period 2 years 4 months          
Option expiration period           10 years
2005 Stock Incentive Plan [Member] | Stock Options [Member] | Exercise Price Range One [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Issuance of options for purchase of common shares 640,000          
Exercise price of stock options granted $ 0.14          
2005 Stock Incentive Plan [Member] | Stock Options [Member] | Exercise Price Range Two [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Issuance of options for purchase of common shares 500,000          
Exercise price of stock options granted $ 0.15          
2005 Stock Incentive Plan [Member] | Stock Options [Member] | Exercise Price Range Three [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Issuance of options for purchase of common shares 995,000          
Exercise price of stock options granted $ 0.20          
2005 Stock Incentive Plan [Member] | Stock Options [Member] | Exercise Price Range Four [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Issuance of options for purchase of common shares 50,000          
Exercise price of stock options granted $ 0.25          
2005 Stock Incentive Plan [Member] | Stock Options [Member] | Employee [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Issuance of options for purchase of common shares 225,000          
2005 Stock Incentive Plan [Member] | Stock Options [Member] | Director [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Issuance of options for purchase of common shares 1,960,000          
XML 35 R25.htm IDEA: XBRL DOCUMENT v3.20.2
STOCK OPTION PLANS (Schedule of Stock Option Activity) (Details)
6 Months Ended
Jun. 30, 2020
USD ($)
$ / shares
shares
Shares  
Outstanding at the beginning of period | shares 2,185,000
Granted | shares
Expired | shares
Forfeited | shares
Outstanding at the end of Period | shares 2,185,000
Exercisable at the end of Period | shares 2,185,000
Weighted Average Exercise Price  
Outstanding at the beginning of period | $ / shares $ 0.17
Granted | $ / shares
Expired | $ / shares
Forfeited | $ / shares
Outstanding at the end of Period | $ / shares 0.17
Exercisable at the end of Period | $ / shares $ 0.17
Weighted Average Remaining Contractual Life (Years)  
Outstanding at the beginning of period 5 years 7 months 24 days
Outstanding at the end of Period 5 years 1 month 27 days
Exercisable at the end of Period 5 years 1 month 27 days
Aggregate Intrinsic Value  
Outstanding at the beginning of period | $
Granted | $
Expired | $
Forfeited | $
Outstanding at the end of Period | $
Exercisable at the end of Period | $
XML 36 R26.htm IDEA: XBRL DOCUMENT v3.20.2
CAPITAL STOCK (Details) - $ / shares
6 Months Ended
Jun. 30, 2020
Dec. 31, 2019
CAPITAL STOCK [Abstract]    
Preferred stock, shares authorized 1,000,000 1,000,000
Preferred stock, par value per share $ 0.001 $ 0.001
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, shares authorized 200,000,000 200,000,000
Common stock, par value per share $ 0.001 $ 0.001
Stock issued  
Common stock, shares issued 99,713,464 99,713,464
Common stock, shares outstanding 99,713,464 99,713,464
XML 37 R27.htm IDEA: XBRL DOCUMENT v3.20.2
COMMITMENTS AND CONTINGENCIES (Details)
Jun. 30, 2020
USD ($)
ft²
Lessee, Lease, Description [Line Items]  
Lease, monthly payment in 2019 $ 12,000
Lease, monthly payment in 2020 $ 14,635
Increase lease rate percentage 3.00%
F.G.B.P. LLC [Member]  
Lessee, Lease, Description [Line Items]  
Area of office and manufacturing space | ft² 12,548
XML 38 R28.htm IDEA: XBRL DOCUMENT v3.20.2
RELATED PARTY TRANSACTIONS (Details) - USD ($)
1 Months Ended 6 Months Ended
May 31, 2019
Jun. 30, 2020
Dec. 31, 2019
Related Party Transaction [Line Items]      
Accounts payable - related party   $ 2,197
Convertible Notes Payable to Related Party [Member] | Officer [Member]      
Related Party Transaction [Line Items]      
Convertible notes payable, balance $ 22,000    
New Convertible Notes Payable [Member] | Officer [Member]      
Related Party Transaction [Line Items]      
Convertible notes payable, balance $ 17,000    
Convertible Notes Payable [Member]      
Related Party Transaction [Line Items]      
Debt instrument, interest rate 8.00%    
Debt instrument, default rate 12.00%    
Conversion price $ 0.06    
Debt instrument, maturity date Mar. 31, 2021 Dec. 31, 2015  
Chief Executive Officer [Member]      
Related Party Transaction [Line Items]      
Accounts payable - related party   2,197
Officer [Member]      
Related Party Transaction [Line Items]      
Outstanding notes payable amount   164,257 164,257
Director [Member]      
Related Party Transaction [Line Items]      
Outstanding notes payable amount   $ 54,256 $ 54,256
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