UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWASHINGTON D.C. 20549

FORM 10-QSB

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

| For the quarterly period ended:
September 30 2004
Commission File Number:
000-27793
 
**ELECTRONIC SYSTEMS TECHNOLOGY, INC.(A Washington Corporation)****
I.R.S. Employer    Identification no.
91-1238077
 

415 N. Quay St., #4Kennewick WA 99336
Registrant’s telephone number, including area code:(509) 735-9092
 

 

Check whether the issuer (1) has filed all reports required to be filedby Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorterperiod that the registrant was required to file such reports), and (2) has been subject tosuch filing requirements for the past 90 days. Yes [ X ] No [ ] 

 

The number of shares outstanding of common stock as of September 30,2004 was 5,098,667.

 

 

 

 

 
**PART I - FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS.

ELECTRONIC SYSTEMS TECHNOLOGY, INC.(as prepared by Management)(Unaudited)****
SELECTED FINANCIAL DATA

 
Nine Months Ended
September 30, 2004
September 30, 2003Sales
$ 1,711,303
$ 1,556,664Other Revenues
95,502
99,859Gross Profit
997,830
858,887 Net Income (Loss) Before Taxes 
218,401
133,777Net Income (Loss) After Taxes
144,151
88,293 Earnings (Loss) Per Share Before    TaxesBasic
$ 0.04
$ 0.02Diluted
0.04
0.02 Earnings (Loss) Per Share After    TaxesBasic
$ 0.03
$ 0.02Diluted
0.03
0.02 Weighted Average Shares    Outstanding Primary
5,654,239
5,625,064Diluted
5,653,667
5,628,667 Total Assets
$ 2,870,903
$ 2,704,981 Long-Term Debt and Capital Lease Obligations
$ 0
$ 0 Shareholders' Equity
$ 2,651,522
$ 2,534,405 Shareholders' Equity Per Share
$ 0.52
$ 0.50 Working Capital
$ 2,472,977
$ 2,280,587 Current Ratio
16.5:1
14.4:1 Equity To Total Assets
92%
94%
 

 

 

 

 
**ELECTRONIC SYSTEMS TECHNOLOGY, INC.

BALANCE SHEETS(as prepared by Management)(Unaudited)****
September 30,    2004
December 31,    2003ASSETSCURRENT ASSETS Cash and Cash Equivalents
$ 424,467
$ 378,103 Available for Sale Marketable Securities
1,350,574
1,341,491Accounts Receivable, Net of Allowance for    Uncollectibles
243,289
284,972 Inventory
588,794
511,972 Prepaid Expenses
25,834
11,958Prepaid Federal Income Taxes
--
29,433Total Current Assets
2,632,958
2,557,929 PROPERTY & EQUIPMENT Net of    Depreciation of $460,790 at September 30, 2004 and $420,337 at December 31, 2003
217,657
222,674 OTHER ASSETS
5,688
27,486Deferred Income Tax Benefit
14,600
14,600TOTAL ASSETS
$ 2,870,903
$ 2,822,689 LIABILITIES & STOCKHOLDERS' EQUITY CURRENT LIABILITIESAccounts Payable
47,894
44,848Refundable Deposits
37,706
80,372Accrued Liabilities
30,810 
52,203 Deferred Income
--
25,088Federal Income Taxes Payable
43,571
--Total Current Liabilities 
159,981
202,511 Deferred Income Taxes
59,400
59,400 STOCKHOLDERS' EQUITY    Common Stock, $.001 Par Value 50,000,000 Shares Authorized 5,098,667 Shares Issued And    Outstanding 
5,099
5,099 Additional Paid-in Capital
945,734
945,734 Retained Earnings
1,712,583
1,619,419Accumulated Other Comprehensive Gain (Loss)
(11,894)
(9,474)
2,651,522
2,560,778 TOTAL LIABILITIES AND    STOCKHOLDERS' EQUITY
$ 2,870,903
$ 2,822,689 
(See "Notes to Financial Statements")
** 

ELECTRONIC SYSTEMS TECHNOLOGY, INC.

STATEMENTS OF OPERATIONS(as prepared by Management)(Unaudited)**** 
Three Months    Ended
Nine Months    Ended
September 30,    2004
September 30,    2003
September 30, 2004
September 30,    2003SALES
$ 429,008
$ 645,752
$ 1,711,303
$ 1,556,664COST OF SALESBeginning Inventory
490,526
583,420
511,972
569,424Purchases and Allocated Costs
293,606
240,956
790,295
658,425 
784,132
824,376
1,302,267
1,227,849Ending Inventory
588,794
530,072
588,794
530,072Total Cost of Sales
195,338
294,304
713,473
697,777Gross Profit
233,670
351,448
997,830
858,887 OPERATING EXPENSESFinance/Administration
40,379
40,769
154,053
179,565Research & Development
85,858
72,691
237,586
179,164Marketing
94,702
91,282
321,076
314,574Customer Service
24,882
32,158
90,138
80,759Total Operating Expense
245,821
236,900
802,853
754,062OPERATING INCOME (LOSS)
(12,151)
114,548
194,977
104,825 Other Income (Expenses)Interest/Investment Income
5,916
4,377
14,603
18,014Realized Loss on Marketable Securities
--
--
--
(2,334)Management Fee, Marketable Securities
(2,312)
(2,067)
(6,962)
(6,176)Uncollectible Amounts Recovered
81
--
2,258
--Loss on Asset Disposal
--
--
(4)
(1,245)Engineering Services
28,477
12,355
78,641
81,845Engineering Support
(25,369)
(11,132)
(65,112)
(61,152)Net Other Income (Expense)
6,793
3,533
23,424
28,952 INCOME (LOSS) BEFORE TAX
( 5,358)
118,081
218,401
133,777Provision For Income Tax
1,822
(40,147)
(74,250)
(45,484) NET INCOME (LOSS)
$ (3,536)
$ 77,934
$ 144,151
$ 88,293 Basic Earnings (Loss)    Per Share Before Tax
$ ( 0.00)
$ 0.02
$ 0.04
$ 0.02Basic Earnings (Loss) Per Share    After Tax
$ ( 0.00)
$ 0.01
$ 0.03
$ 0.02 Diluted Earnings (Loss) Per Share    Before Tax
$ (    0.00)
$ 0.02
$ 0.04
$ 0.02Diluted Earnings (Loss) Per Share    After Tax
$ (    0.00)
$ 0.01
$ 0.03
$ 0.02
(See "Notes to Financial Statements") 
** 

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)(as prepared by Management)(Unaudited)**** 
Three Months    Ended
Nine Months    Ended
September 30, 2004
September 30, 2003
September 30, 2004
September 30, 2003NET INCOME (LOSS)
$ (3,536)
$ 77,934
$ 144,151
$ 88,293 OTHER COMPREHENSIVE GAIN (LOSS):Unrealized gain (loss) on securities arising    during period (net of tax effect)
3,094
(1,479)
( 2,420)
2,874COMPREHENSIVE INCOME (LOSS)
$ ( 442)
$ 76,455
$ 141,731
$ 91,168
 

 

 

 

 

 

 

 

(See "Notes To Financial Statements")

 

 
**ELECTRONIC SYSTEMS TECHNOLOGY, INC.

STATEMENTS OF CASH FLOWS(as prepared by Management)(Unaudited)****Nine Months Ended
September 30,    2004
September 30, 2003 CASH FLOWS PROVIDED (USED) IN    OPERATING ACTIVITIES:Net Income (Loss)
$144,151
$88,293Noncash items included in income:Depreciation
40,450
33,118Amortization
3,193
3,302Loss on Disposition of Assets
4
1,245Loss on Marketable Securities
--
2,334Provision for Federal Income Taxes
29,433
(8,516) DECREASE (INCREASE) IN CURRENT    ASSETS:Accounts Receivable Net
41,683
15,782Marketable Securities Investments Purchased
(12,749)
(802,000)Marketable Securities Investments Sold
--
803,666Inventory
(76,822)
39,352Prepaid Expenses
(13,876)
(14,259) INCREASE (DECREASE) IN    CURRENT LIABILITIES:Accounts Payable and Accrued Expenses 
(18,347)
65,682Refundable Deposits
(42,666)
(15,346)Accrued Federal Income Taxes
44,817
(104,594)Deferred Income
(25,088)
--
114,182
108,059 CASH FLOWS PROVIDED (USED) IN    INVESTING ACTIVITIES:Deposits Applied to Property and Equipment
18,605************ |
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