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

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




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

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  
CONTACT: Contact
Thomas Tait
801-607-1039
investor_relations@reflectscientific.com