OREM, Utah, March 31, 2023 (GLOBE NEWSWIRE) -- Reflect Scientific Inc (OTCQB: RSCF), a provider of ultra-low temperature freezers and chillers for the biotech, pharmaceutical, and cannabis industries, today announced its financial results for the year ended December 31, 2022.
Revenue for the year decreased by 27.5% to $2,041,297, compared to $2,814,670 in 2021, primarily due to a significant decrease in freezer and chiller sales during the third quarter and ongoing supply chain delays with manufacturers. However, the cost of goods sold decreased by 7.0% to $822,147, resulting in a gross profit margin of 59.7% for the year, compared to 68.6% in 2021.
Reflect Scientific's net income for the year was $89,396, compared to $939,065 in 2021. Management is actively seeking opportunities to increase sales, improve gross margins and control ongoing operating expenses.
Reflect Scientific's liquidity and capital resources remain strong, with current assets exceeding current liabilities by $2,179,237 and cash and cash equivalents totaling $1,381,927.
"We are pleased with the resilience of our business during these challenging times, and remain committed to expanding our product offerings and strengthening our position in the ultra-low temperature market," said Kim Boyce, CEO of Reflect Scientific. "Despite the ongoing supply chain issues, we have made significant progress in enhancing our ultra-cold freezer product line and believe this will provide a solid foundation for future growth."
Reflect Scientific remains focused on providing innovative solutions for the biotech, pharmaceutical, and cannabis industries, and continues to invest in research and development to support this goal.
Reflect Scientific's audited financial statements for the calendar year ended December 31, 2022, are included in its Form 10 Registration Statement, and all financial highlights contained in this press release are modified in their entirety by reference to such financial statements. Additional information about Reflect Scientific's business and operations may also be found in the Form 10. A link to the Form 10 as filed with the SEC is also available on the "SEC Documents" link on the "Corporate Profile" dropdown menu of Reflect Scientific's website at www.reflectscientific.com.
*Numbers may be rounded.
| REFLECT SCIENTIFIC, INC. CONSOLIDATED STATEMENTS OF INCOME | |||||||
| Years Ended December 31, | |||||||
| 2022 | 2021 | ||||||
| Revenues | $ | 2,041,297 | $ | 2,814,670 | |||
| Cost of goods sold | 822,147 | 884,066 | |||||
| Gross profit | 1,219,150 | 1,930,604 | |||||
| Operating Expenses | |||||||
| Salaries and wages | 636,038 | 608,065 | |||||
| General and administrative | 419,589 | 436,399 | |||||
| Research and development | 73,425 | 58,340 | |||||
| Total Operating Expenses | 1,129,052 | 1,102,804 | |||||
| INCOME FROM OPERATIONS | 90,098 | 827,800 | |||||
| Other Income | |||||||
| Gain on forgiveness of debt | - | 111,265 | |||||
| Total Other Income | - | 111,265 | |||||
| NET INCOME BEFORE INCOME TAXES | 90,098 | 939,065 | |||||
| INCOME TAX EXPENSE | (702 | ) | - | ||||
| NET INCOME | $ | 89,396 | $ | 939,065 | |||
| Earnings per common share | |||||||
| Basic | $ | 0.00 | $ | 0.01 | |||
| Diluted | $ | 0.00 | $ | 0.01 | |||
| Weighted average shares outstanding | |||||||
| Basic | 84,990,935 | 84,739,770 | |||||
| Diluted | 85,440,935 | 85,489,770 | |||||
| REFLECT SCIENTIFIC, INC. CONSOLIDATED BALANCE SHEETS | |||||||
| December 31, 2022 | December 31, 2021 | ||||||
| ASSETS | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 1,381,927 | $ | 1,473,924 | |||
| Accounts receivable, net | 129,329 | 175,649 | |||||
| Inventories, net | 797,352 | 624,486 | |||||
| Prepaid expenses and other current assets | 20,221 | 31,306 | |||||
| Total Current Assets | 2,328,829 | 2,305,365 | |||||
| Operating lease right-of-use assets | 54,265 | 110,483 | |||||
| Goodwill | 60,000 | 60,000 | |||||
| Other long-term assets | 3,100 | 3,100 | |||||
| TOTAL ASSETS | $ | 2,446,194 | $ | 2,478,948 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current Liabilities | |||||||
| Accounts payable and accrued expenses | $ | 78,969 | $ | 66,837 | |||
| Customer deposits | 13,230 | 118,566 | |||||
| Current portion of operating lease liabilities | 57,393 | 56,446 | |||||
| Total Current Liabilities | 149,592 | 241,849 | |||||
| Operating lease liabilities, net of current portion | - | 57,393 | |||||
| TOTAL LIABILITIES | 149,592 | 299,242 | |||||
| Stockholders' Equity | |||||||
| Preferred Stock, $0.01 par value, 5,000,000 shares authorized; none issued and outstanding | - | - | |||||
| Common stock, $0.01 par value, 100,000,000 shares authorized; 85,214,086 and 84,989,086 shares issued and outstanding as of December 31, 2022 and 2021, respectively | 852,140 | 849,890 | |||||
| Additional paid-in capital | 20,252,181 | 20,226,931 | |||||
| Accumulated deficit | (18,807,719 | ) | (18,897,115 | ) | |||
| TOTAL STOCKHOLDERS' EQUITY | 2,296,602 | 2,179,706 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 2,446,194 | $ | 2,478,948 | |||
About Reflect Scientific, Inc.
Reflect Scientific, Inc., based in Orem, Utah, develops and markets innovative, proprietary technologies in cryogenic cooling for the biotechnology, pharmaceutical, medical, and transportation markets. Among Reflect Scientific's products are low-temperature freezers and refrigerated systems for laboratory, transportation, and computer server room uses. Visit www.reflectscientific.com for more information. See us on Twitter @ReflectSci and LinkedIn www.linkedin.com/company/reflect-scientific.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this press release. This press release should be considered in light of the disclosures contained in the filings of the Company that are contained in the OTC Markets Group, LLC under the trading symbol "RSCF" and related prior filings by the Company that are referenced therein and contained in the EDGAR Archives of the Securities and Exchange Commission under the heading "Disclosure," including those identified in such filings as "forward-looking statements."
