UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWASHINGTON D.C. 20549FORM 10-QSB

 

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

| For the quarterly period ended:
September 30 2005
Commission File Number:
000-27793
 
**ELECTRONIC SYSTEMS TECHNOLOGY, INC.(A Washington Corporation)****
I.R.S. Employer    Identification no.
91-1238077
 

415 N. Quay St., Building BKennewick 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 30,2005 was 5,148,667.

 
**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, 2005
September 30, 2004Sales
$ 1,780,378
$ 1,789,944Other Revenues
27,393
16,861Gross Profit
954,104
1,011,359 Net Income (Loss) Before Taxes 
139,823
218,401Net Income (Loss) After Taxes
86,193
144,151 Earnings (Loss) Per Share Before    TaxesBasic
$ 0.03
$ 0.04Diluted
0.03
0.04 Earnings (Loss) Per Share After    TaxesBasic
$ 0.02
$ 0.03Diluted
0.02
0.03 Weighted Average Shares    Outstanding Primary
5,148,667
5,098,667Diluted
5,227,891
5,268,324 Total Assets
$ 2,978,294
$ 2,870,903 Long-Term Debt and Capital Lease Obligations
$ 0
$ 0 Shareholders' Equity
$ 2,735,351
$ 2,651,522 Shareholders' Equity Per Share
$ 0.53
$ 0.52 Working Capital
$ 2,540,385
$ 2,472,977 Current Ratio
15.5:1
16.5:1 Equity To Total Assets
92%
92%
 

 

 

 

 
**ELECTRONIC SYSTEMS TECHNOLOGY, INC.BALANCE SHEETS(as prepared by Management)(Unaudited)

September 30,    2005
December 31,    2004ASSETSCURRENT ASSETS Cash and Cash Equivalents
$ 392,228
$ 488,480 Short Term Certificates of Deposit Investments
449,370
--Available for Sale Marketable Securities
925,934
1,344,619Accounts Receivable, Net of Allowance for    Uncollectibles
311,966
257,080 Inventory
587,272
605,159 Accrued Interest
4,065
--Prepaid Expenses
26,089
12,578Prepaid Software/Network Services-current    portion
18,104
--Total Current Assets
2,715,028
2,707,916 PROPERTY & EQUIPMENT Net of    Depreciation of $524,968 at September 30, 2005 and $476,185 at December 31, 2004
217,196
253,456 OTHER ASSETS
2,486
4,624Deferred Income Tax Benefit
15,700
17,300PREPAID SOFTWARE/NETWORK SERVICES-long term    portion
27,884
--TOTAL ASSETS
$ 2,978,294
$ 2,983,296 LIABILITIES & STOCKHOLDERS'    EQUITY CURRENT LIABILITIESAccounts Payable
68,827
96,949Refundable Deposits
7,667
3,630Accrued Liabilities
37,949 
69,255 Federal Income Taxes Payable
60,200
39,201Total Current Liabilities 
174,643
209,035 Deferred Income Taxes
68,300
75,500 STOCKHOLDERS' EQUITY    Common Stock, $.001 Par Value 50,000,000 Shares Authorized 5,148,667 Shares Issued And    Outstanding 
5,149
5,149 Additional Paid-in Capital
966,184
966,184 Retained Earnings
1,777,958
1,743,252Accumulated Other Comprehensive Gain (Loss)
(13,940)
(15,824)
2,735,351
2,698,761 TOTAL LIABILITIES AND    STOCKHOLDERS' EQUITY
$ 2,978,294
$ 2,983,296 
(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, 2005
September 30, 2004
September 30, 2005
September 30, 2004SALES
$ 650,195
$ 457,485
$ 1,780,378
$ 1,789,944COST OF SALES
277,890
220,707
826,274
778,585Gross Profit
372,305
236,778
954,104
1,011,359 OPERATING EXPENSESFinance/Administration
43,044
40,379
181,743
154,053Research & Development
66,934
85,858
203,285
237,586Marketing
129,057
94,702
363,823
321,076Customer Service
22,324
24,882
78,552
90,138Total Operating Expense
261,359
245,821
827,403
802,853OPERATING INCOME (LOSS)
110,946
(9,043)
126,701
208,506 Other Income (Expenses)Interest/Investment Income
11,259
5,916
27,393
14,603Realized Loss on Marketable Securities
--
--
(7,140)
--Management Fee, Marketable Securities
(2,344)
(2,312)
(6,999)
(6,962)Uncollectible Amounts Recovered
--
81
--
2,258Loss on Asset Disposal
--
--
(132)
(4)Net Other Income (Expense)
8,915
3,685
13,122
9,895 INCOME (LOSS) BEFORE TAX
119,861
( 5,358)
139,823
218,401Provision For Income Tax
(38,914)
1,822
(53,630)
(74,250) NET INCOME (LOSS)
$ 80,947
$ (3,536)
$ 86,193
$ 144,151 Basic Earnings (Loss) Per Share    Before Tax
$ 0.02
$ ( 0.00)
$    0.03$ 0.04Basic Earnings (Loss) Per Share    After Tax
$ 0.02
$ ( 0.00)
$ 0.02
$ 0.03 Diluted Earnings (Loss) Per Share    Before Tax
$ 0.02
$ ( 0.00)
$    0.03
$ 0.04Diluted Earnings (Loss) Per Share    After Tax
$ 0.02
$ ( 0.00)
$    0.02
$ 0.03
(See "Notes to Financial Statements") 

 

 

 
**STATEMENTS OF COMPREHENSIVE INCOME (LOSS)(as prepared by Management)(Unaudited)
 
Three Months    Ended
Nine Months    Ended
September    30, 2005
September    30, 2004
September    30, 2005
September    30, 2004NET INCOME (LOSS)
$ 80,947
$ (3,536)
$ 86,193
$ 144,151 OTHER COMPREHENSIVE GAIN (LOSS):Unrealized gain (loss) on securities arising    during period (net of tax effect)
( 2,080)
3,094
( 2,829)
( 2,420)COMPREHENSIVE INCOME (LOSS)
$ 78,867
$ ( 442)
$ 83,364
$ 141,731
(See "Notes To Financial Statements")
**ELECTRONIC SYSTEMS TECHNOLOGY, INC.STATEMENTS OF CASH FLOWS(as prepared by Management)(Unaudited)****Nine Months Ended
September 30,    2005
September 30, 2004 CASH FLOWS PROVIDED (USED) IN OPERATING    ACTIVITIES:Net Income (Loss)
$86,193
$144,151Noncash items included in income:Depreciation
53,178
40,450Amortization
2,138
3,192Loss on Disposition of Assets
132
4Loss on Marketable Securities
7,140
--Provision for Federal Income Taxes
(969)
29,433Accrued Interest
(4,065)
-- DECREASE (INCREASE) IN CURRENT ASSETS:Accounts Receivable Net
(54,886)
41,683Certificates of Deposit Purchased
(720,000)
--Marketable Securities Investments Purchased
--
(12,749)Marketable Securities Investments Sold
685,028
--Inventory
17,887
(76,822)Prepaid Software and Network Services
(18,104)
--Deferred Tax Benefit
1,600 Prepaid Expenses
(13,511)
(13,876) DECREASE (INCREASE) IN LONG TERM ASSETS:Prepaid Software and Network    Services
(27,884)
-- INCREASE (DECREASE) IN CURRENT    LIABILITIES:Accounts Payable and Accrued Expenses 
(59,428)
(18,347)Refundable Deposits
4,037
(42,666)Deferred Tax Liability
(7,200)
--Accrued Federal Income Taxes
(20,999)
44,817Deferred Income
--
(25,088)
(27,715)
114,182 CASH FLOWS PROVIDED (USED) IN INVESTING    ACTIVITIES:Deposits Applied to Property and Equipment
--
18,605Additions To Property And Equipment
(17,050)
(35,436)
(17,050)
(16,831)CASH FLOWS PROVIDED (USED) IN FINANCING    ACTIVITIES:Cash Distribution Paid to Shareholders
(51,487)
(50,987)
(51,487)************ |
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