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

March 30, 2021 9:00 AM EDT

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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 SUBSIDIARIESConsolidated Statements of Operations

  For the Years EndedDecember 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 SUBSIDIARIESConsolidated 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
Thomas Tait
801-607-1039
investor_relations@reflectscientific.com

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Source: Reflect Scientific Inc.


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