Reflect Scientific Inc. Ends 2020 with Significant Increase in Revenues and Profits; Files Form 10 for Registration of Securities

Rhea-AI Summary

Reflect Scientific, Inc. (RSCF) reported impressive financial results for the year ended December 31, 2020, posting total revenues of $2.79 million, a 74% increase from $1.61 million in 2019. The ultra-low temperature (ULT) freezers and solvent chillers generated $1.95 million in revenue, marking a 166% growth. Despite a slight 3.9% decline in chromatography supply revenue due to pandemic-related disruptions, net income improved to $660,000 compared to a loss of $196,000 in 2019. The company filed a Form 10 with the SEC to regain “fully reporting” status.

Positive

• Total revenue increased 74% to $2.79 million in 2020 from $1.61 million in 2019.
• ULT freezers and solvent chillers revenue grew by 166%, reaching $1.95 million.
• Net income rose to $660,000 in 2020, compared to a loss of $196,000 in 2019.
• Operating costs decreased by $116,000, totaling $1.07 million for 2020.

Negative

• Chromatography supplies revenue fell by 3.9% to $843,000 due to COVID-19-related supply issues.

OREM, Utah, March 30, 2021 (GLOBE NEWSWIRE) -- Reflect Scientific, Inc. (Symbol: RSCF), a provider of diverse products and services for biotechnology, pharmaceutical, and transportation industries, today announced financial results for the twelve months ended December 31, 2020.

“I am pleased to report that the 2020 end of year sales figures for Reflect Scientific Inc. were significantly higher than for 2019. Our team has worked hard to achieve those sales by providing market-driven low-temperature refrigeration solutions to our customers and maintaining a steady supplies business. Heading into 2021, we are leveraging our momentum and increasing our market presence to achieve even greater success,” stated Mr. Kim Boyce, CEO of Reflect Scientific.

Our full year 2020 revenue as compared to 2019 was as follows:

Total revenues
		Years Ended December 31
(in thousands)		2020			2019		% Change
ULT Freezers/chillers	$	1,950		$	732		166	%
Chromatography	$	843		$	877		-3.9	%
Total revenues	$	2,793		$	1,609		74	%

ULT Freezers/Solvent Chillers

The ultra-low temperature (ULT) freezers and solvent chillers have been the engine for the growth of Reflect Scientific and will continue to be in the foreseeable future. The fiscal year 2020 ended with total revenue for the ULT freezer/solvent chiller products of $1.95 million, a 166% increase in revenue over the fiscal year 2019.

Cryometrix brand blast freezers have enabled many new technologies introduced by pharmaceutical companies to achieve significant cost savings, production throughput, and storage efficiency. The extremely rapid cooling of large payloads while maintaining precise temperature control makes our Cryometrix brand ULT freezers stand out as an exceptional product in the ULT freezer market. As the demand for biopharmaceuticals grows, we expect a parallel growth of the Cryometrix brand ULT freezers.

Reflect Scientific continues to innovate in the ULT freezer market, introducing several new models and configurations in 2020. Because of their unique ability to cool to very low temperatures without using mechanical refrigeration pumps, the Cryometrix brand ULT freezers address many unmet needs in the cold chain management market. We have responded by providing new air and land transportation designs and will continue to innovate in 2021.

Solvent chillers were rapidly adopted in 2020 by the CBD market to extract cannabinoids from hemp plants. The Cryometrix solvent chiller can rapidly cool extraction solvents to a temperature that makes for more efficient extraction of the desired product from the plant material. It is cost-effective and easy to incorporate into the manufacturing process. We expect this product line to expand into other areas of natural product extraction in 2021.

Chromatography Supplies

The supplies market is a steady source of revenue for Reflect Scientific. Much of the 4% decrease in revenue can be attributed to supply issues and distribution disruption caused by the COVID-19 pandemic. We expect this product segment to remain steady throughout 2021, barring any continued consequences of the pandemic.

Intellectual Property

Reflect Scientific maintains a robust program of intellectual property protection. A total of 29 patents have been issued or assigned to Reflect Scientific, with several more expected in 2021.

Financial Highlights*

• Total revenue for the full year 2020 increased to $2.79 million compared to $1.61 million for the full year 2019, a year-over-year gain of 74%.
• The supplies business ended the full year 2020 at $843,000 a slight decrease of 3.9% from the full-year revenue of $877,000 in 2019.
• The gross margin was 62% for the full year 2020, unchanged from the full year 2019.
• Operating costs and expenses decreased by $116,000 to $1.07 million for the full year 2020 compared to $1.19 million in the prior year.
• Net income of $660,000 for the full year 2020 compared to a loss of $196,000 for the prior year.
• Reflect Scientific reported $643,000 in cash, cash equivalents, and short-term investments as of December 31, 2020, compared with $555,000 as of December 31, 2019.
• On March 30, 2021, Reflect Scientific filed a Registration Statement on Form 10 with the Securities and Exchange Commission (the “SEC”), which Registration Statement is subject to SEC review and amendment by Reflect Scientific in response to any SEC comments.  Upon effectiveness of the Form 10, which we expect to occur 60 days after the filing date, Reflect Scientific will return to “fully reporting” status with the SEC.  The Form 10 is available for viewing on the SEC website (www.sec.gov) under the Reflect Scientific name and ticker (RSCF).

Reflect Scientific’s audited financial statements for the calendar year ended December 31, 2020, 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 are rounded.

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.”

REFLECT SCIENTIFIC, INC. AND SUBSIDIARIES
Consolidated Statements of Operations

		For the Years Ended December 31,
		2020				2019
REVENUES	$	2,792,623			$	1,609,241
COST OF GOODS SOLD		1,071,321				617,599
GROSS PROFIT		1,721,302				991,642
OPERATING EXPENSES
Salaries and wages		534,525				568,102
Research and development expense		185,295				210,014
General and administrative expense		350,477				408,359
Total Operating Expenses		1,070,297				1,186,475
INCOME (LOSS) FROM OPERATIONS		651,005				(194,833	)
OTHER INCOME (EXPENSE)
Gain on EIDL Grant		10,000				-
Interest expense		(890	)			(755	)
Total Other Income (Expenses)		9,110				(755	)
INCOME (LOSS) BEFORE INCOME TAX EXPENSE		660,115				(195,588	)
Income tax expense		-				-
NET INCOME (LOSS)	$	660,115			$	(195,588	)
NET INCOME (LOSS) PER SHARE – BASIC AND DILUTED	$	0.01			$	(0.00	)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING – BASIC AND DILUTED		84,739,086				79,115,705

REFLECT SCIENTIFIC, INC. AND SUBSIDIARIES
Consolidated Balance Sheets

ASSETS

		December 31, 2020				December 31, 2019
CURRENT ASSETS
Cash	$	642,542			$	555,156
Accounts receivable, net		340,427				118,455
Inventory, net		438,606				252,851
Prepaid assets		24,134				27,483
Total Current Assets		1,445,709				953,945
FIXED ASSETS, NET		-				3,786
OTHER ASSETS
Operating lease right-of-use assets		167,641				57,949
Goodwill		60,000				60,000
Deposits		3,100				3,100
Total Other Assets		230,741				121,049
TOTAL ASSETS	$	1,676,450			$	1,078,780

LIABILITIES AND SHAREHOLDERS’ EQUITY

		December 31, 2020				December 31, 2019
CURRENT LIABILITIES
Accounts payable and accrued expenses	$	70,214			$	108,607
Loan - Short-term portion		-				8,738
Contract liabilities		113,643				349,441
Amortization of operating lease liability – short-term		58,682				46,318
Income taxes payable		100				100
Total Current Liabilities		242,629				513,204
LONG-TERM LIABILITIES
Operating lease liability – long-term		109,838				12,550
Loan - long - term		111,342
Total Liabilities		463,409				525,754
Commitments and contingencies		-				-
SHAREHOLDERS’ EQUITY
Preferred stock, $0.01 par value, authorized  5,000,000 shares; no shares issued and outstanding		-				-
Common stock, $0.01 par value, authorized  100,000,000  shares; 84,739,086 shares issued and outstanding		847,390				847,390
Additional paid in capital		20,201,931				20,201,931
Accumulated deficit		(19,836,180	)			(20,496,295	)
Total Shareholders’ Equity		1,213,141				553,026
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,676,450			$	1,078,780

FAQ

What were Reflect Scientific's revenue figures for 2020?

Reflect Scientific reported total revenues of $2.79 million for 2020, a 74% increase from $1.61 million in 2019.

What is the main driver of revenue growth for Reflect Scientific?

The main driver of revenue growth for Reflect Scientific is the ultra-low temperature (ULT) freezers and solvent chillers, which generated $1.95 million, a 166% increase from 2019.

What is Reflect Scientific's net income for 2020?

Reflect Scientific's net income for 2020 was $660,000, compared to a net loss of $196,000 in 2019.

What challenges did Reflect Scientific face in 2020?

Reflect Scientific faced challenges with a 3.9% decline in chromatography supplies revenue, attributed to supply disruptions caused by the COVID-19 pandemic.

What is the significance of the Form 10 filed by Reflect Scientific?

The Form 10 filed by Reflect Scientific with the SEC is significant as it allows the company to regain its 'fully reporting' status.