UNITED STATES SECURITIES AND EXCHANGE
COMMISSION Washington, D.C. 20549  FORM 10-Q   [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934  For the quarterly
period ended June 30, 2008   [   ] TRANSITION REPORT UNDER SECTION 13 OR
15(d) OF THE EXCHANGE ACT  For the transition
period from __________ to __________  Commission File Number 000-31377  Reflect Scientific, Inc. (Exact name of registrant as specified in
its charter)  Utah 87-0642556 (State or
other jurisdiction of (IRS Employer Identification No.) incorporation or organization)  1270 South 1380 West Orem, Utah
  84058 (Address of principal executive
offices) (Zip Code)  (801) 226-4100 (Registrants telephone number,
including area code)  Indicate by check mark whether the
registrant (1) has filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes [X]   No [   ]  Indicate by check mark whether the
registrant is a large accelerated filer, an accelerated filer, a non-accelerated
filer, or a smaller reporting company.  See definitions of large
accelerated filer, accelerated filer, and smaller reporting company in Rule
12b-2 of the Exchange Act.  Large
Accelerated filer  ̈ Accelerated filer  ̈ Non-accelerated
filer   ̈ (Do not check if a
smaller reporting company) Smaller reporting company x  Indicate by check mark whether the registrant is a shell
company (as defined in Rule 12b-2 of the Exchange Act). Yes [  ]
  No [X]  Indicate the number of shares outstanding of each of the
issuers classes of common equity, as of the latest practicable date. 34,423,802 shares of $0.01 par value
common stock on August 4, 2008  Transitional Small Business Disclosure Format (Check
One): Yes [  ]    No [X]


Part I -
FINANCIAL INFORMATION  Item 1. Financial Statements Reflect Scientific, Inc. FINANCIAL STATEMENTS (UNAUDITED) June 30, 2008  The financial statements
included herein have been prepared by the Company, without audit, pursuant to
the rules and regulations of the Securities and Exchange Commission.
 Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted.  However, in the opinion of
management, all adjustments (which include only normal recurring accruals)
necessary to present fairly the financial position and results of operations for
the periods presented have been made.  These financial statements should be
read in conjunction with the accompanying notes, and with the historical
financial information of the Company.   REFLECT SCIENTIFIC, INC.  CONSOLIDATED CONDENSED FINANCIAL STATEMENTS  June
30, 2008       REFLECT SCIENTIFIC, INC. Condensed Consolidated Balance Sheets   ASSETS   June 30,
2008

December 31,
2007(Unaudited)CURRENT
ASSETSCash
$
820,652
$
1,154,162Accounts
receivable

1,493,480

1,371,770Other
receivables

35,902

28,517Inventory

1,285,257

727,970Prepaid
assets

167,315

168,396Total
Current Assets

3,802,606

3,450,815FIXED ASSETS,
NET

268,776

259,884OTHER
ASSETSIntangible
assets, net

5,669,268

5,849,036Deferred
tax asset

38,000

38,000Cost
and estimated earnings in excess of billings on uncompleted
contracts

236,561

-Long
term prepaid asset

108,889

190,555Deposits

29,944

29,945Total
Other Assets

6,082,662

6,107,536TOTAL
ASSETS
$
10,154,044
$
9,818,235           The
accompanying notes are an integral part of these consolidated financial
statements. 2   REFLECT SCIENTIFIC, INC. Condensed Consolidated Balance Sheets (Continued)  LIABILITIES AND SHAREHOLDERS EQUITY  June 30,
2008

December 31,
2007(Unaudited)CURRENT
LIABILITIESAccounts
payable
$
655,570
$
432,392Short
term loan

158,050

147,530Royalty
payable

6,714

53,565Capital
leases  short-term portion

18,837

20,016Interest
payable

71,223

-Accrued
expenses

33,896

179,778Contract
billings in excess of costs and estimated earnings

297,707

82,708Income
taxes payable

400

400Total
Current Liabilities

1,242,397

916,389LONG-TERM
LIABILITIESDebentures,
net of Discount Warrant of $822,629
And
Discount of Beneficial Conversion Feature
of $432,121

1,082,250

618,750Capital
leases  long-term portion

29,734

40,147Total
Long-Term Liabilities

1,111,984

658,897Total
Liabilities

2,354,381

1,575,286SHAREHOLDERS
EQUITYPreferred
stock, $0.01 par value, authorized
5,000,000
shares; No shares issued and Outstanding

-

-Common
stock, $0.01 par value, authorized
50,000,000
shares; 34,418,075 and 34,100,538
shares issued
and outstanding respectively

344,181

341,006Additional
paid in capital

16,750,523

16,512,094Accumulated
deficit

(9,295,041)

(8,610,151)Total
Shareholders Equity

7,799,663

8,242,949TOTAL
LIABILITIES AND SHAREHOLDERS EQUITY
$
10,154,044

9,818,235 The
accompanying notes are an integral part of these consolidated financial
statements. 3   REFLECT SCIENTIFIC, INC. Condensed Consolidated Statements of Operations (Unaudited)   For
the Three Months Ended
June 30,
For the Six Months Ended
June 30,2008

2007

2008

2007REVENUES
$
3,270,806
$
3,387,617

5,241,085

4,555,637COST OF GOODS
SOLD

1,679,410

1,643,579

2,623,435

2,400,567GROSS
PROFIT

1,591,396

1,744,038

2,617,650

2,155,070OPERATING
EXPENSESSalaries
and wages

534,380

449,020

1,151,641

793,812Rent
expense

64,538

52,924

130,344

96,595General
and administrative expense

789,893

1,774,715

1,264,748

2,194,578Total
Operating Expenses

1,388,811

2,276,659

2,546,733

3,084,985OPERATING INCOME
(LOSS)

202,585

(532,621)

70,917

(929,915)OTHER INCOME
(EXPENSE)Interest
income

1,763

-

8,346

-Interest
expense

(381,612)

(484,784)

(764,154)

(484,845)Total
Other Expenses

(379,849)

(484,784)

(755,808)

(484,845)NET LOSS BEFORE
INCOME TAXES

(177,264)

(1,017,405)

(684,891)

(1,414,760)Income tax
benefit (expense)

-

-

-

-NET LOSS
$
(177,264)
$
(1,017,405)
$
(684,891)
$
(1,414,760)BASIC AND FULLY
DILUTED LOSS PER SHARE
$
(0.01)
$
(0.03)
$
(0.02)
$
(0.05)WEIGHTED AVERAGE
NUMBER OF SHARES OUTSTANDING

34,316,690

34,613,003

34,225,921

30,718,815  The accompanying notes are an integral part of these
consolidated financial statements. 4    REFLECT
SCIENTIFIC, INC. Condensed Consolidated Statements of Cash Flows (Unaudited) For the Six Months Ended June 30,2008

2007Net loss
$
(684,891)
$
(1,414,760)Adjustments to reconcile net loss to net cashfrom operating activities:Depreciation

29,319

25,741Amortization of debenture discount and
intangibles

781,268

165,249Fair value of options issued

29,943

-Common stock issued for services

-

484,574Common stock issued for prepaid
services

-

490,000Changes in operating assets and liabilities:Increase in accounts receivable

(121,711)

(1,012,422)Increase in inventory

(557,287)

(234,191)Increase in costs and estimated
earnings in excess of billings on uncompleted contracts

(236,561)

-Increase in other receivables

(7,385)

-Decrease in income tax
receivable

-

1,187(Increase) in prepaid asset

82,748

(134,785)Decrease in other assets

-

10,300Increase in accounts payable and
accrued expense

404,894

130,675Net Cash
From Operating Activities

(279,663)

(1,488,432)CASH FLOWS FROM INVESTING ACTIVITIESCash paid for fixed assets

(38,211)

(11,327)Net Cash From Investing
Activities

(38,211)

(11,327)CASH FLOWS FROM FINANCING ACTIVITIESProceeds/(Payments) on notes
payable

(11,593)

166,549Lines of credit

(4,043)

-Proceeds from issuance of
debenture

-

2,500,000Proceeds from common stock
issuance

-

447,605Net Cash
from Financing Activities

(15,636)

3,114,154NET INCREASE (DECREASE) IN CASH

(333,510)

1,614,395CASH AT BEGINNING OF PERIOD

1,154,162

271,038CASH AT END OF PERIOD
$
820,652
$
1,885,433 The accompanying notes are an integral
part of these consolidated financial statements. 5       REFLECT
SCIENTIFIC, INC. Condensed Consolidated Statements of Cash Flows (continued) (Unaudited)    For
the Six Months Ended June 30,SUPPLEMENTAL CASH FLOW INFORMATION:
2008

2007Cash Paid For:Interest
$
91,431
$
8,859Income taxes
$
-
$
-NON-CASH FINANCING ACTIVITIES:Stock issued pursuant to Company
mergers
$
-
$
2,435,870Common stock issued for
services
$
-
$
484,574Common stock issued for prepaid
services
$
-
$
490,000Common stock issued for accrued
interest
$
73,660
$
-Conversion of debt to
equity
$
138,000
$
-                      The accompanying notes are
an integral part of these consolidated financial statements. 6   REFLECT SCIENTIFIC, INC. Notes to
the Condensed Consolidated Financial Statements June 30,
2008   NOTE 1-BASIS
OF FINANCIAL STATEMENT PRESENTATION  The accompanying unaudited condensed consolidated
financial statements have been prepared by the Company pursuant to accounting
principles generally accepted in the United States of America. Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with accounting principles generally accepted in the
United States of America have been condensed or omitted in accordance with rules
and regulations of the Securities and Exchange Commission.  The information
furnished in the interim condensed consolidated financial statements include
normal recurring adjustments and reflects all adjustments, which, in the opinion
of management, are necessary for a fair presentation of such financial
statements.  Although management believes the disclosures and information
presented are adequate to make the information not misleading, it is suggested
that these interim condensed consolidated financial statements be read in
conjunction with the Companys most recent audited consolidated financial
statements and notes thereto included in its December 31, 2007 financial
statements.  Operating results for the three and six months ended June 30,
2008 are not necessarily indicative of the results that may be expected for the
year ending December 31, 2008.  NOTE 2 - ORGANIZATION
AND DESCRIPTION OF BUSINESS  Cole, Inc. (the Company) was incorporated under the laws
of the State of Utah on November 3, 1999. The Company was organized to engage in
any lawful activity for which corporations may be organized under the Utah
Revised Business Corporation Act.  On December 30, 2003 the Company changed
its name to Reflect Scientific, Inc.  Reflect Scientific, Inc. a California corporation, was
incorporated on September 14, 1993, under the laws of California to engage in
the manufacture of test kits for use in scientific studies.  On December 30, 2003, pursuant to an
Agreement and Plan of Reorganization, the Company completed a reverse merger
with the shareholders of Reflect Scientific, Inc. in which it acquired 100% of
Reflect Scientific, Inc., a California corporation in exchange for 22,914,949
common shares of the Company.  The terms of the acquisition are detailed in
an 8-K filing dated December 31, 2003.  Under the terms of the agreement,
the President of Reflect Scientific, Inc. became the President of the Company
and was elected to the Board of Directors.  The acquisition was accounted
for as a recapitalization of Reflect Scientific, Inc. because the members of
Reflect Scientific, Inc. controlled the Company after the acquisition.
 Reflect Scientific, Inc. was treated as the acquiring entity for
accounting purposes and Cole, Inc. was the surviving entity for legal purposes.
 There was no adjustment to the carrying values of the assets or
liabilities of Reflect Scientific, Inc. and no goodwill was recorded. The
operations for the year ended December 31, 2007 and 2006 are those of Reflect
Scientific, Inc.  Effective January 19, 2007 the Company finalized an
Agreement and Plan of Merger agreement with All Temp Engineering, Inc.
 Effective March 6, 2007, the Company finalized an Agreement and Plan of
Merger agreement with Image Labs, International.  The terms of the
agreements are detailed in a 10-QSB filing dated June 30, 2007.  The
Company entered into these mergers after considering All Temps and Image Labs
business history, financial condition, and intellectual property. The Company
has a desire to expand its services, attract and retain talented technical
personnel, and the Company believed there were strategic and financial
advantages to combining the businesses.  7    REFLECT SCIENTIFIC, INC. Notes to
the Condensed Consolidated Financial Statements June 30,
2008   NOTE 3  CONVERTIBLE DEBENTURES AND WARRANTS  On June 29, 2007, the Company entered
into an agreement to sell $2,500,000 in 12% senior convertible debentures with a
maturity date of June 29, 2009, with interest due quarterly.   At the
closing, the Company prepaid the first quarterly interest payment out of the
proceeds of the offering from escrow and placed in escrow the second quarterly
interest payment for a total of $150,000.  The agreement allows for the
Company to pay the interest in cash or in duly authorized, validly issued, fully
paid and non-assessable shares of common stock at the interest conversion rate,
or a combination thereof.  The debentures have a conversion price
of $0.65.  If the Company, at any time while the debenture is outstanding,
pays stock dividends, subdivides outstanding shares, sells or grants any option
to purchase or dispose of common stock at an effective price lower than the
conversion price, issue rights, options or warrants at a price lower than the
conversion price, etc., the Company shall promptly deliver to each Holder a
notice setting forth the conversion price after such adjustment and provide a
brief statement of facts requiring such adjustment.   In addition, if
the volume weighted average price for each of any 20 consecutive trading days
exceeds 250% of the conversion price, the Company may, within one trading day
deliver a written notice to the holder and force the holder to convert a
principal amount of the debenture equal to all or part of the holders portion
of the forced conversion amount.  The agreement also provides for the
issuance of 1,923,077 A warrants and 1,923,077 B warrants.  The warrants
are exercisable at a price of $0.80 per share for the A warrant and $1.00 per
share for the B warrant and expire June 29, 2012.  The Company valued the
warrants using the Black-Scholes option pricing model.  For the purpose of
the valuation of the warrants, the Company calculated a volatility of 66.48% on
its common stock and used the U. S. Treasury bill rate of 4.94% for its risk
free rate.  Then the Company allocated a portion of the proceeds to the
warrants, based on the relative fair value basis, in the amount of $1,639,029
which is recognized as a contra liability account and will be amortized as
interest expense over the 2 year term of the agreement.  The intrinsic
value of beneficial conversion of the debentures was valued at $5,677,491, which
exceeds the effective value of the debentures of $860,971.  Therefore, the
discount assigned to the beneficial conversion feature is limited to $860,971
and is recognized as a contra liability account and will be amortized as
interest expense over the 2 year term of the agreement.  As payment for services provided, the
Company also issued 192,308 A warrants and 192,308 B warrants which were valued
at $475,925 using the Black-Scholes option pricing model and expensed in the
current period. 8   REFLECT SCIENTIFIC, INC. Notes to the Condensed
Consolidated Financial Statements June 30, 2008   NOTE 3  CONVERTIBLE DEBENTURES AND WARRANTS
(continued)  The debentures and warrants have
anti-dilution protections, and the Company has agreed to certain registration
rights for the resale of the shares of common stock underlying the debentures
and warrants.  A summary of the status of the
Companys outstanding stock warrants as of June 30, 2008 and changes during the
period then ended is presented below:  2008Shares

Weighted Average Exercise PriceOutstanding, beginning of year
4,230,770

$
.90Granted
-


-Expired/Cancelled
-


-Exercised
-


-Outstanding June 30, 2008
4,230,770

$
.90Exercisable
4,230,770

$
.90  Outstanding

ExercisableRange of Exercise Prices

Number outstanding at June 30,
2008

Weighted Average Remaining
Contractual Life

Number Exercisable at June 30,
2008$
0.80

2,115,385

4.00

2,115,3851.00

2,115,385

4.00

2,115,3854,230,770



4,230,770  NOTE 4  EQUITY TRANSACTIONS  During the six month period ended June
30, 2008, the Company issued 212,307 shares of its common stock for the
conversion of $138,000 debt pursuant to the convertible debenture agreement
dated June 29, 2007.  During the six month period ended June
30, 2008, the Company issued 105,230 shares of its common stock for interest
payable.    REFLECT SCIENTIFIC, INC. Notes to
the Condensed Consolidated Financial Statements June 30,
2008 NOTE 5  COMMON STOCK OPTIONS  On December 31, 2007, the Companys
board of directors approved an equity plan.  The equity plan known as the
2007 Equity Incentive Plan (the Plan) reserves up to 6,000,000 shares of the
Companys authorized common stock for issuance to officers, directors, employees
and consultants under the terms of the Plan.  The Plan permits the board of
directors to issue stock options and restricted stock.  In conjunction with its employee stock
option plan, the Company issued 66,660 options to employees.  These options
had a fair value of $29,930 and were expensed when issued.  The options
were issued in June 2008.  The fair value of each option granted
under the Plan is estimated on the date of grant, using the Black-Scholes option
pricing model, based on the following weighted average assumptions: June 30, 2008Expected life (years)

5.0Expected stock price
volatility

65.74 - 66.27
%Expected dividend yield

0.0
%Risk-free interest rate

3.38  3.41
%  The risk-free interest rate is based
upon the U.S. Treasury yield curve at the time of grant for the respective
expected life of the option. The expected life (estimated period of time
outstanding) of options was estimated.  The expected volatility of the
Companys options was calculated using historical data. Expected dividend yield
was not considered in the option pricing formula since the Company does not pay
dividends and has no current plans to do so in the future. If actual periods of
time outstanding and rate of forfeitures differs from the expected rates, the
Company may be required to make additional adjustments to compensation expense
in future periods.  A summary of the status of the
Companys outstanding stock options as of June 30, 2008 and changes during the
period then ended is presented below:  2008Shares

Weighted Average Exercise
PriceOutstanding, beginning of
year
5,000,000

$
1.32Granted
66,660


.94Expired/Cancelled
-


-Exercised
-


-Outstanding at June 30,
2008
5,066,660

$
1.31Exercisable
5,066,660

$
1.31     Outstanding

ExercisableRange of Exercise Prices

Number outstanding at June 30,
2008

Weighted Average Remaining
Contractual Life

Number Exercisable at June 30,
2008$
1.32

4,800,000

4.50

4,800,0001.20

200,000

4.50

200,0000.85

52,660

5.00

52,6601.30

14,000

5.00

14,0005,066,660



5,066,660  The total fair value of options vested
was $3,383,487 as of June 30, 2008.  As of June 30, 2008, there was no
unrecognized compensation cost related to non-vested stock options granted under
the Plan  NOTE 6  RECENT ACCOUNTING PRONOUNCEMENTS  In December 2007, the FASB issued SFAS
No. 141(R), Business Combinations.  SFAS No. 141(R) changes the
accounting for and reporting of business combination transactions in the
following way:  Recognition with certain exceptions, of 100% of the fair
values of assets acquired, liabilities assumed, and non controlling interests of
acquired businesses; measurement of all acquirer shares issued in consideration
for a business combination at fair value on the acquisition date; recognition of
contingent consideration arrangements at their acquisition date fair values,
with subsequent changes in fair value generally reflected in earnings;
recognition of pre-acquisition gain and loss contingencies at their acquisition
date fair value; capitalization of in-process research and development
(IPR&D) assets acquired at acquisition date fair value; recognition of
acquisition-related transaction costs as expense when incurred; recognition of
acquisition-related restructuring cost accruals in acquisition accounting only
if the criteria in Statement No. 146 are met as of the acquisition date; and
recognition of changes in the acquirers income tax valuation allowance
resulting from the business combination separately from the business combination
as adjustments to income tax expense.  SFAS No. 141(R) is effective
for the first annual reporting period beginning on or after December 15, 2008
with earlier adoption prohibited.  The adoption of SFAS No. 141(R)
will affect valuation of business acquisitions made in 2009 and
forward.  In December 2007, the FASB issued SFAS
No. 160 "Noncontrolling Interest in Consolidated Financial Statements  an
Amendment of ARB 51" (SFAS 160).  SFAS 160 clarifies that a
noncontrolling interest in a subsidiary is an ownership interest in the
consolidated entity that should be reported as equity in the consolidated
financial statements.  It also requires consolidated net income to be
reported at amounts that include the amounts attributable to both the parent and
the noncontrolling interest, and requires disclosure, on the face of the
consolidated statement of income, of the amounts of consolidated net income
attributable to the parent and to the noncontrolling interest.  SAFS
160 is effective for fiscal years, and interim periods within those fiscal
years, beginning on or after December 15, 2008.  Earlier adoption is
prohibited.  We do not anticipate a material impact upon adoption.    REFLECT SCIENTIFIC, INC. Notes to
the Condensed Consolidated Financial Statements June 30,
2008  NOTE 6  RECENT ACCOUNTING PRONOUNCEMENTS (Continued)  In March 2008, the FSAB issued FASS
No. 161, Disclosures about Derivative Instruments and Hedging
Activities.  SFAS 161 is intended to improve financial reporting
about derivative instruments and hedging activities by requiring enhanced
disclosures to enable investors to better understand their effects on an
entity's financial position, financial performance, and cash
flows.  SFAS 161 is effective for financial statements issued for
fiscal years and interim periods beginning after November 15, 2008, with early
application encouraged.  We do not anticipate a material impact upon
adoption.  In May 2008,the FASB issued SFAS No.
162, "The Hierarchy of Generally Accepted Accounting Principles." This statement
identifies the sources of accounting principles and the framework for selecting
the principles to be used in the preparation of financial statements of
nongovernmental entities that are presented in conformity with generally
accepted accounting principles ("GAAP") in the United States (the "GAAP
hierarchy"). This statement is effective 60 days following the SEC's approval of
the Public Company Accounting Oversight Board amendments to AU Section 411, "The
Meaning of Present Fairly in Conformity With Generally Accepted Accounting
Principles". The Company does not expect this statement to have any effect on
our financial position or results of operations.  In May 2008, FASB issued SFAS 163,
Accounting for Financial Guarantee Insurance Contracts - an interpretation of
FASB Statement No. 60. SFAS 163 clarifies how Statement 60 applies to financial
guarantee insurance contracts, including the recognition and measurement of
premium revenue and claim liabilities. This Statement also requires expanded
disclosures about financial guarantee insurance contracts.  SFAS 163 is
effective for fiscal years beginning on or after December 15, 2008, and interim
periods within those fiscal years. The Company does not expect that the adoption
of SFAS 163 will have a material impact on its consolidated financial
statements.  NOTE 7  SUBSEQUENT EVENT  On July 2, 2008 the company issued
5,727 shares of its common stock for interest payable. 9                  Item
2. Managements Discussion and Analysis of Financial Condition and Results of
Operations  Special Note Regarding Forward-Looking
Statements  This periodic report contains certain
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 with respect to the Plan of Operations provided
below, including information regarding the Companys financial condition,
results of operations, business strategies, operating efficiencies or synergies,
competitive positions, growth opportunities, and the plans and objectives of
management. The statements made as part of the Plan of Operations that are not
historical facts are hereby identified as "forward-looking statements." Critical
Accounting Policies and Estimates  The preparation of financial statements and
related disclosures in conformity with accounting principles generally accepted
in the United States of America requires management to make estimates and
assumptions that affect the amounts reported in the unaudited Financial
Statements and accompanying notes.  Management bases its estimates on
historical experience and on various other assumptions that are believed to be
reasonable under the circumstances. Actual results could differ from these
estimates under different assumptions or conditions.  The Company
believes there have been no significant changes during the six month
periods ended June 30, 2008 and 2007, to the items disclosed as significant
accounting policies in management's Notes to the Financial Statements in the
Company's Annual Report on Form 10-KSB for the year ended December 31, 2007.  Plan of Operation and Business Growth  Over the next twelve months our focus will
be on the commercialization of products acquired and developed over the last
several years.  Included in this focus will be the continued development
and commercialization of our ultra low temperature refrigerator line.
 Additionally, we will continue to develop and expand our focus on
solutions and services to retrofit server and computer rooms to help reduce the
cost of cooling such rooms as well as provide a more reliable way to cool such
rooms.   We also will continue to focus on the expansion of our
detector line and contract manufacturing operations.  Management focus over the last several
years was on the acquisition and development of our product lines.
 Management now feels they have the core product lines in place to now
refocus its efforts on the commercialization of the product lines.  As such
much of the focus over the next twelve months will be on marketing our products
and expanding our customer base.  Results of Operations  June 30, 2008 and
2007  Our revenues decreased from the quarter
ended June 30, 2007, of $3,387,617 to $3,270,806 for the quarter ended June 30,
2008.  Our quarter ended June 30, 2007 was an exceptional quarter, in which
a few of our larger sales took place.  This small decrease for the quarter
does not reflect the direction of our Company and as noted below the six months
ended June 2008 reflects an increase in revenues over the six months ended June
30, 2007.  Our cost of goods sold increased in the
quarter ending June 30, 2008, as compared to June 30, 2007 to $1,679,410 from
$1,643,579.   Overall, as a percentage of sales, our cost of goods
sold was approximately 51% for the three months ended June 30, 2008 compared to
49% for the quarter ended June 30, 2007.  This gives us gross profit
percentages of 49% and 51%, respectively.  We anticipate the cost of goods
sold percentage and gross profit percentage to vary by quarter depending on
which products make up the largest percentage of sales during the quarter.
 We anticipate these percentages to become more stable as our sales for all
products continue to increase.  Although sales increased for the six month
period, the increase was not sufficient to offset additional expenses as we
again expanded our operations during the quarter ended June 30, 2008.
 Salaries and wages increased to   $534,380 during
the quarter ended June 30, 2008, compared to $449,020 for the quarter ended June
30, 2007.  This increase reflects the closing of all of our acquisitions
and the hiring of additional personnel.  We felt it was necessary to retain
additional personnel in an effort to effectively market our products and take
advantage of business opportunities.  Rent expense also increased as we
began covering the expenses of businesses acquired in the first quarter of 2007.  With the decrease in operating expenses
from $2,276,659 for the quarter ended June 30, 2007 to $1,388,811 for the
quarter ended June 30, 2008, our net loss decreased to $177,264 from $1,017,405
for the comparable period in 2007.  We expect that as sales continue to
increase, we will be able to continue to reduce our net loss this year.  Interest expense was $381,612 for the
quarter ended June 30, 2008.  This interest expense related to interest on
our debentures of $87,007 for the quarter and $292,125 related to the
amortization of the discounts on the debenture.  Seasonality and
Cyclicality  We do not believe our business is cyclical.  Liquidity and Capital Resources  Our cash resources at June 30, 2008, were
$820,652, with accounts receivable of $1,493,480 and inventory of $1,285,257. We
have relied on revenues and sales of equity and debt securities for cash
resources.   Our working capital on June 30, 2008, was $2,560,209
compared to $2,534,426 on December 31, 2007.  To complete acquisitions and
to fund our expanding operations, much of the working capital was used in the
first part of 2007 requiring us to raise additional capital which was completed
in June 2007. This capital was used to increase our manufacturing resulting in
increased inventory.  We anticipate devoting some of the available cash to
marketing programs that will increase sales over the next twelve months.  Historically, we have financed our working
capital requirements through capital funding which have generated sufficient
funds to offset shortfalls and cover losses.  As we continue to expand our
operations, we anticipate seeking additional capital through the sale of equity
securities.  It is highly likely, we will again seek additional capital in
the equity markets. At this time we do not know the extent of the overall
financing will need in the future.  Financing will depend on how well our
products are received in the marketplace.  Our long term liabilities were $1,111,984
on June 30, 2008.  This reflects a debenture of $2,337,000,  although
only $1,082,250  is reflected because of the  discounts on the
debenture.  In June 2009, the debenture will be due and the total amount
owed will be $2,337,000, less any future conversions.    If the
debentures are not converted, we would probably have to seek some additional
debt or equity financing to help repay the debenture.  The amount of debt
or equity financing required will be dependent on how our operations perform
over the next twelve months.  If sales continue to increase, we may be able
to repay part of the debentures with operating profits.  For the quarter ended June 30, 2008, our
net cash used by operating activities was approximately $279,663 which was down
from $1,488,432 for the quarter ended June 30, 2007.  We were pleased with
this reduction as it reflects our business operations are starting to cover our
cash needs.  We anticipate losses to continue as we
expand our sales efforts.  Since the products are new to the marketplace,
we cannot predict with certainty how sales will be in upcoming quarters but we
expect they will continue to increase and should start covering our
expenses.  Off-Balance Sheet Arrangements  We have no off balance sheet arrangements as of June 30,
2008.    Forward-looking
Statements  The Private Securities Litigation Reform
Act of 1995 (the Act) provides a safe harbor for forward-looking statements
made by or on behalf of our Company. Our Company and our representatives may
from time to time make written or oral statements that are forward-looking,
including statements contained in this Annual Report and other filings with the
Securities and Exchange Commission and in reports to our Companys stockholders.
Management believes that all statements that express expectations and
projections with respect to future matters, as well as from developments beyond
our Companys control including changes in global economic conditions are
forward-looking statements within the meaning of the Act. These statements are
made on the basis of managements views and assumptions, as of the time the
statements are made, regarding future events and business performance. There can
be no assurance, however, that managements expectations will necessarily come
to pass. Factors that may affect forward- looking statements include a wide
range of factors that could materially affect future developments and
performance, including the following:  Changes in Company-wide strategies, which
may result in changes in the types or mix of businesses in which our Company is
involved or chooses to invest; changes in U.S., global or regional economic
conditions, changes in U.S. and global financial and equity markets, including
significant interest rate fluctuations, which may impede our Companys access
to, or increase the cost of, external financing for our operations and
investments; increased competitive pressures, both domestically and
internationally, legal and regulatory developments, such as regulatory actions
affecting environmental activities, the imposition by foreign countries of trade
restrictions and changes in international tax laws or currency controls; adverse
weather conditions or natural disasters, such as hurricanes and earthquakes,
labor disputes, which may lead to increased costs or disruption of
operations.  This list of factors that may affect future
performance and the accuracy of forward-looking statements are illustrative, but
by no means exhaustive. Accordingly, all forward-looking statements should be
evaluated with the understanding of their inherent uncertainty.  Item 3.  Quantitative and Qualitative Disclosures
About Market Risk.  This item is not required for Small
Reporting Companies.  Item 4T.  Controls and Procedures.  Evaluation of Disclosure Controls and
Procedures  Our
management, with the participation of our President and CFO, evaluated the
effectiveness of our disclosure controls and procedures as of the end of the
period covered by this report. Based on that evaluation, our President and CFO
concluded that our disclosure controls and procedures as of the end of the
period covered by this report were effective such that the information required
to be disclosed by us in reports filed under the Exchange Act is
(i) recorded, processed, summarized and reported within the time periods
specified in the SECs rules and forms and (ii) accumulated and
communicated to our management, including our President and CFO, as appropriate
to allow timely decisions regarding disclosure. A controls system cannot provide
absolute assurance, however, that the objectives of the controls system are met,
and no evaluation of controls can provide absolute assurance that all control
issues and instances of fraud, if any, within a company have been detected.   Managements Report on Internal Control
over Financial Reporting  Our
management is responsible for establishing and maintaining adequate internal
control over financial reporting (as defined in Rule 13a-15(f) under the
Exchange Act). Our internal control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes of
accounting principles generally accepted in the United States.   Because of its inherent limitations, internal
control over financial reporting may not prevent or detect misstatements.
Therefore, even those systems determined to be effective can provide only
reasonable assurance of achieving their control objectives.     Our
management, with the participation of the President and CFO, evaluated the
effectiveness of our internal control over financial reporting as of June 30,
2008.  Based on this evaluation, our management, with the participation of
the President and CFO, concluded that, as of June 30, 2008, our internal control
over financial reporting was effective.  Changes in internal control over
financial reporting  There have been no changes in internal control over
financial reporting.  PART II - OTHER INFORMATION  ITEM 1.  Legal Proceedings   None  ITEM 2.  Unregistered Sales of Equity Securities
and Use of Proceeds  Recent Sales of Unregistered
Securities  We have not sold any restricted securities during the six
months ended June 30, 2008.  Use of Proceeds of Registered Securities  None; not applicable.  Purchases of Equity Securities by Us and Affiliated
Purchasers  During the six months ended June 30, 2008, we have not
purchased any equity securities nor have any officers or directors of the
Company.  ITEM 3.  Defaults Upon Senior Securities  We are not aware of any defaults upon senior
securities.  ITEM 4.  Submission of Matters to a Vote of
Security Holders  No matters were submitted to a vote of security holders
during the quarter ended June 30, 2008.  ITEM 5.  Other Information.  None  ITEM 6.  Exhibits  (a) Exhibits.  Exhibit No.
Title of Document
Location if other than attached hereto3.1
Articles of Incorporation
10-SB Registration Statement*3.2
Articles of Amendment to Articles of
Incorporation
10-SB Registration Statement*3.3
By-Laws
10-SB Registration Statement*3.4
Articles of Amendment to Articles of
Incorporation
8-K Current Report dated December 31,
2003*    3.5
Articles of Amendment to Articles of
Incorporation
8-K Current Report dated December 31,
2003*3.6
Articles of Amendment
September 30, 2004 10-QSB Quarterly
Report*3.7
By-Laws Amendment
September 30, 2004 10-QSB Quarterly
Report*4.1
Debenture
8-K Current Report dated June 29, 2007*4.2
Form of Purchasers Warrant
8-K Current Report dated June 29, 2007*4.3
Registration Rights Agreement
8-K Current Report dated June 29, 2007*4.4
Form of Placement Agreement
8-K Current Report dated June 29, 2007*10.1
Securities Purchase Agreement
8-K Current Report dated June 29, 2007*10.2
Placement Agent Agreement
8-K Current Report dated June 29, 2007*14
Code of Ethics
December 31, 2003 10-KSB Annual Report*21
Subsidiaries of the Company
December 31, 2004 10-KSB Annual Report*31.1
302 Certification of Kim Boyce31.2
302 Certification of David Strate32
906 Certification Exhibits  Additional Exhibits Incorporated by Reference *
Reflect California Reorganization
8-K Current Report dated December 31,
2003*
JMST Acquisition
8-K Current Report dated April 4, 2006*
Cryomastor Reorganization
8-K Current Report dated September 27,
2006*
Image Labs Merger Agreement Signing
8-K Current Report dated November 15,
2006*
All Temp Merger Agreement Signing
8-K Current Report dated November 17,
2006*
All Temp Merger Agreement Closing
8-KA Current Report dated November 17,
2006*
Image Labs Merger Agreement Closing
8-KA Current Report dated November 15,
2006  * Previously filed and incorporated by
reference.  SIGNATURES  Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.  Reflect Scientific, Inc. (Registrant)  Date:     
August 14, 2008 _____________________ By:  /s/ Kim Boyce Kim
Boyce, CEO, President and Director  Date:     
August 14, 2008 _______________________ By:  /s/ Tom Tait Tom
Tait, Vice President and Director  Date:     
August 14, 2008 _______________________ By:  /s/ David Strate David
Strate, CFO