Reflect Scientific Inc Announces Year-End Financial Results for 2022

Rhea-AI Summary

Reflect Scientific Inc (OTCQB: RSCF) reported a 27.5% decrease in revenue for 2022, totaling $2,041,297, down from $2,814,670 in 2021, primarily due to reduced freezer and chiller sales and supply chain delays. Gross profit margin fell to 59.7% from 68.6%, as costs of goods sold also decreased by 7.0% to $822,147. The net income dropped significantly to $89,396 compared to $939,065 in the previous year. Current assets exceeded liabilities by $2,179,237, with cash totaling $1,381,927. Management remains committed to improving sales and product offerings despite ongoing challenges.

Positive

• Gross profit margin at 59.7%, although down from 68.6% in 2021.
• Management actively seeks opportunities to improve sales and gross margins.
• Liquidity remains strong, with current assets exceeding liabilities by $2,179,237.

Negative

• Revenue decreased by 27.5% to $2,041,297 compared to $2,814,670 in 2021.
• Net income dropped significantly to $89,396 from $939,065 in 2021.
• Ongoing supply chain delays affecting sales.

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.” 

FAQ

What were Reflect Scientific's revenue figures for 2022?

Reflect Scientific reported a revenue of $2,041,297 for the year 2022, a decrease of 27.5% from $2,814,670 in 2021.

What is the current financial standing of Reflect Scientific as of December 31, 2022?

As of December 31, 2022, Reflect Scientific's current assets exceed current liabilities by $2,179,237, indicating a strong liquidity position.

How did Reflect Scientific's net income change in 2022?

Reflect Scientific's net income for 2022 was $89,396, a significant decrease from $939,065 in 2021.

What challenges did Reflect Scientific face in 2022?

Reflect Scientific faced challenges including reduced sales of freezers and chillers due to ongoing supply chain delays.

What steps is management taking to improve business at Reflect Scientific?

Management is focusing on increasing sales, enhancing gross margins, and controlling operating expenses.