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 | |||