10-Q 1 elst_10q-033124.htm FORM 10-Q
false 2024 Q1 --12-31 0000752294 0000752294 2024-01-01 2024-03-31 0000752294 2024-04-18 0000752294 2024-03-31 0000752294 2023-12-31 0000752294 2023-01-01 2023-03-31 0000752294 2022-12-31 0000752294 2023-03-31 0000752294 us-gaap:CommonStockMember 2022-12-31 0000752294 us-gaap:AdditionalPaidInCapitalMember 2022-12-31 0000752294 us-gaap:RetainedEarningsMember 2022-12-31 0000752294 us-gaap:CommonStockMember 2023-12-31 0000752294 us-gaap:AdditionalPaidInCapitalMember 2023-12-31 0000752294 us-gaap:RetainedEarningsMember 2023-12-31 0000752294 us-gaap:CommonStockMember 2023-01-01 2023-03-31 0000752294 us-gaap:AdditionalPaidInCapitalMember 2023-01-01 2023-03-31 0000752294 us-gaap:RetainedEarningsMember 2023-01-01 2023-03-31 0000752294 us-gaap:CommonStockMember 2024-01-01 2024-03-31 0000752294 us-gaap:AdditionalPaidInCapitalMember 2024-01-01 2024-03-31 0000752294 us-gaap:RetainedEarningsMember 2024-01-01 2024-03-31 0000752294 us-gaap:CommonStockMember 2023-03-31 0000752294 us-gaap:AdditionalPaidInCapitalMember 2023-03-31 0000752294 us-gaap:RetainedEarningsMember 2023-03-31 0000752294 us-gaap:CommonStockMember 2024-03-31 0000752294 us-gaap:AdditionalPaidInCapitalMember 2024-03-31 0000752294 us-gaap:RetainedEarningsMember 2024-03-31 0000752294 us-gaap:EmployeeStockOptionMember 2024-03-31 0000752294 us-gaap:EmployeeStockOptionMember 2023-12-31 0000752294 us-gaap:EmployeeStockOptionMember 2024-01-01 2024-03-31 0000752294 us-gaap:EmployeeStockOptionMember 2023-01-01 2023-12-31 0000752294 us-gaap:ProductMember 2024-01-01 2024-03-31 0000752294 us-gaap:ProductMember 2023-01-01 2023-03-31 0000752294 us-gaap:MaintenanceMember 2024-01-01 2024-03-31 0000752294 us-gaap:MaintenanceMember 2023-01-01 2023-03-31 0000752294 us-gaap:GeographicDistributionDomesticMember 2024-01-01 2024-03-31 0000752294 us-gaap:GeographicDistributionDomesticMember 2023-01-01 2023-03-31 0000752294 us-gaap:GeographicDistributionForeignMember 2024-01-01 2024-03-31 0000752294 us-gaap:GeographicDistributionForeignMember 2023-01-01 2023-03-31 0000752294 ELST:CustomerAMember us-gaap:GeographicDistributionDomesticMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2024-01-01 2024-03-31 0000752294 ELST:CustomerAMember us-gaap:GeographicDistributionDomesticMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-03-31 0000752294 ELST:CustomerBMember us-gaap:GeographicDistributionDomesticMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2024-01-01 2024-03-31 0000752294 ELST:CustomerBMember us-gaap:GeographicDistributionDomesticMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-03-31 0000752294 ELST:CustomerCMember us-gaap:GeographicDistributionDomesticMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2024-01-01 2024-03-31 0000752294 ELST:CustomerCMember us-gaap:GeographicDistributionDomesticMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-03-31 0000752294 ELST:CustomerDMember us-gaap:GeographicDistributionForeignMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2024-01-01 2024-03-31 0000752294 ELST:CustomerDMember us-gaap:GeographicDistributionForeignMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-03-31 0000752294 ELST:CustomerAMember us-gaap:GeographicDistributionDomesticMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2024-03-31 0000752294 ELST:CustomerBMember us-gaap:GeographicDistributionDomesticMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2024-03-31 0000752294 ELST:CustomerCMember us-gaap:GeographicDistributionDomesticMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2024-03-31 0000752294 ELST:CustomerDMember us-gaap:GeographicDistributionForeignMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2024-03-31 0000752294 2023-10-01 2023-12-31 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

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

For the quarterly period ended March 31, 2024

 

OR

 

  ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

 

From ________________ to ________________

 

 

ELECTRONIC SYSTEMS TECHNOLOGY, INC.

(Exact name of registrant as specified in its charter)

 

Washington 000-27793 91-1238077
(State or other jurisdiction of incorporation) (Commission File  Number) (IRS Employer Identification No.)

 

415 N. Roosevelt St. STE B1 Kennewick WA   99336
(Address of principal executive offices)   (Zip Code)

  

(509) 735-9092

(Registrant's telephone number, including area code)

 

N/A

(Former name, former address & former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(g) of the Act:

Title of Each Class Trading Symbol(s) Name of Each Exchange on Which Registered
Common Stock, $0.001 par value ELST OTCQB

 

Indicate by check mark whether the registrant (1) has filed all documents and reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filings for the past 90 days. Yes ☒  No ☐

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ☒  No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

 

Large Accelerated Filer   ☐ Accelerated Filer  ☐

Non-Accelerated Filer ☒

 

Small Reporting Company ☒

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐  No ☒

 

APPLICABLE ONLY TO CORPORATE ISSUERS:

 

As of April, 18 2024, the number of the Company's shares of common stock par value $0.001, outstanding was 4,946,502.

 

 
 

 

PART I

FINANCIAL INFORMATION

 

Item 1. Financial Statements.

 

ELECTRONIC SYSTEMS TECHNOLOGY, INC.
CONDENSED BALANCE SHEETS
(Unaudited)

 

         
   March 31,   December 31, 
   2024   2023 
ASSETS          
Current assets          
Cash and cash equivalents  $435,181   $486,252 
Certificates of deposit   400,000    400,000 
Accounts receivable, net   111,866    52,592 
Inventories   629,606    722,457 
Prepaid expenses   17,354    19,278 
Accrued interest receivable   1,331    1,906 
Total current assets   1,595,338    1,682,485 
           
Property and equipment, net of depreciation   17,249    18,225 
           
Right to use – Lease, net of amortization   20,620    30,298 
           
   Total assets  $1,633,207   $1,731,038 
           
LIABILITIES and STOCKHOLDERS' EQUITY          
Current liabilities          
Accounts payable  $30,778   $37,355 
Accrued wages   5,655    4,188 
Operating lease liability, current portion   20,937    30,773 
Accrued vacation pay   27,004    21,243 
Other accrued liabilities   7,149    10,221 
   Total liabilities   91,523    103,780 
           
Stockholders' equity          
Common stock, $0.001 par value 50,000,000 shares authorized 4,946,502 and 4,946,502 shares issued and outstanding respectively   4,947    4,947 
Additional paid-in capital   933,105    933,105 
Retained earnings   603,632    689,206 
Total stockholders' equity   1,541,684    1,627,258 
   Total liabilities and stockholders' equity  $1,633,207   $1,731,038 

 

 

See Notes to Financial Statements.

 

 

1 
 

 

 

ELECTRONIC SYSTEMS TECHNOLOGY, INC.

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

 

         
   Three Months Ended 
   March 31,   March 31, 
   2024   2023 
         
SALES - NET  $356,061   $305,089 
COST OF SALES   (160,715)   (139,560)
GROSS PROFIT   195,346    165,529 
           
OPERATING EXPENSES          
     General and administrative   88,778    84,765 
     Research and development   28,947    28,663 
     Marketing and sales   168,665    148,227 
Total operating expenses   286,390    261,655 
OPERATING LOSS   (91,044)   (96,126)
           
OTHER INCOME          
     Interest income   5,470    4,002 
Total other income   5,470    4,002 
           
NET LOSS BEFORE INCOME TAX   (85,574)   (92,124)
     Benefit (provision) for income tax   —    — 
NET LOSS  $(85,574)  $(92,124)
           
Earnings (loss) per share – basic and diluted  $(0.02)  $(0.02 
           
Weighted average shares – basic and diluted   4,946,502    4,946,502 

 

 

  

 

See Notes to Financial Statements.

 

 

2 
 

 

  

ELECTRONIC SYSTEMS TECHNOLOGY, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

 

         
   Three Months Ended 
   March 31,   March 31, 
   2024   2023 
         
CASH FLOWS FROM OPERATING ACTIVITIES:          
           
Net loss  $(85,574)  $(92,124)
           
Noncash items included in net loss:          
Depreciation   93    38 
Amortization   913    — 
Changes in operating assets and liabilities:          
Accounts receivable, net   (59,274)   33,624 
Inventories   92,851    (3,830 
Accrued interest receivable   575    126 
Prepaid expenses   1,924    5,731 
Accounts payable   (6,577)   (74,912)
Other accrued liabilities, accrued wages and accrued vacation pay   3,998    (18,354)
NET CASH USED IN OPERATING ACTIVITIES   (51,071)   (149,701)
           
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
Certificates of deposit redeemed   300,000    300,000 
Certificates of deposit purchases   (300,000)   (300,000 
Purchase of equipment   —    (9,000)
NET CASH USED FROM INVESTING ACTIVITIES   —    (9,000)
           
NET DECREASE IN CASH AND CASH EQUIVALENTS   (51,071)   (158,701)
Cash and cash equivalents at beginning of period   486,252    751,118 
Cash and cash equivalents at end of period  $435,181   $592,417 

 

See Notes to Financial Statements.

 

 

3 
 

  

ELECTRONIC SYSTEMS TECHNOLOGY, INC.

DBA ESTEEM WIRELESS MODEMS

 

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)

 

 

                          
   Shares   Amount   Additional
Paid-In
Capital		   Retained
Earnings		   Total 
                     
Balances, January 1, 2023   4,946,502   $4,947   $932,412   $849,989   $1,787,348 
                          
   Net income (loss)   —    —    —    (92,124)   (92,124)
                          
BALANCES AT March 31, 2023   4,946,502   $4,947   $932,412   $757,865   $1,695,224 
                          
Balances, January 1, 2024   4,946,502   $4,947   $933,105   $689,206   $1,627,258 
                          
   Net income (loss)   —    —    —    (85,574)   (85,574)
                          
BALANCES AT MARCH 31, 2024   4,946,502   $4,947   $933,105   $603,632   $1,541,684 

 

 

  

 

See Notes to Financial Statements.

 

4 
 

  

ELECTRONIC SYSTEMS TECHNOLOGY, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

 

NOTE 1 - BASIS OF PRESENTATION

 

The condensed financial statements, including notes, of Electronic Systems Technology, Inc. (the "Company") are representations of the Company’s management, which is responsible for their integrity and objectivity. The accompanying unaudited condensed financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, as well as the instructions to Form 10-Q. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of March 31, 2024, and its results of operations, cash flows, and changes in stockholders’ equity for the three months ended March 31, 2024 and 2023. The balance sheet at December 31, 2023 was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. All amounts presented are in U.S. dollars. For further information, refer to the financial statements and footnotes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

 

The results of operations for the three-month period ended March 31, 2024 are not necessarily indicative of the results expected for the full fiscal year or for any other fiscal period. The Company estimates that for 2024 the anticipated effective annual federal income tax rate will be 0%.

 

New Accounting Pronouncements

 

Accounting standards that have been issued by the Financial Accounting Standards Board that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

 

NOTE 2 - INVENTORIES

 

Inventories are stated at lower of direct cost or net realizable value with cost determined using the FIFO (first in, first out) method. Inventories consist of the following:

 

          
   March 31,
2024		   December 31,
2023		 
Parts  $108,085   $118,472 
Work in progress   227,871    313,597 
Finished goods   293,650    290,388 
Total inventory  $629,606   $722,457 

 

NOTE 3 - EARNINGS (LOSS) PER SHARE

 

Basic earnings (loss) per share excludes dilution and is computed by dividing income (loss) available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings (loss) per share reflects potential dilution occurring if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. At March 31, 2024 and 2023, the Company had 225,000 and 180,000 outstanding stock options, respectively, that could have a dilutive effect on future periods’ net income. The stock options were not included in the calculation of diluted earnings per share for either period as they were anti-dilutive.

 

5 
 

 

 

 

NOTE 4 - STOCK OPTIONS

 

The Company has outstanding stock options, which have been granted periodically to individual employees and directors. No shared based compensation was recognized during the three-month periods ended March 31, 2024 and 2023.

 

As of March 31, 2024 and December 31, 2023, there were 225,000 and 180,000 options outstanding respectively with a weighted average exercise price of $0.40 per share, a weighted average remaining life of 1.5 and no intrinsic value.

 

NOTE 5 – REVENUE

 

The Company’s product revenue includes industrial wireless products and accessories such as antennas, power supplies and cable assemblies. The Company also provides direct site support and engineering services to customers, such as repair and upgrade of its products. During the three-month period ended March 31, 2024 and 2023, the Company’s revenue from products sales was $345,161 and $297,589, respectively. Revenue from site support and engineering services was $10,900 and $7,500 respectively, over the same periods.

 

The Company’s customers, to which trade credit terms are extended, consist of United States and local governments and foreign and domestic companies. Domestic sales for the three-month period ended March 31, 2024 and March 31, 2023 were $313,240 and $293,908, respectively. Sales to foreign customers for the three-month period ended March 31, 2024 and March 31, 2023 were $42,821 and $11,181, respectively.

 

For the three-month period ended March 31, 2024 and 2023, sales to individual customers representing more than 10% of total revenue were as follows:

 

                    
   For the three-month period ended March 31, 
   2024   2023 
   Sales   %age of Total Sales   Sales   %age of Total Sales 
Domestic customer A  $53,487    15%  $70,090    23%
Domestic customer B   43,419    12%   —    — 
Domestic customer C   36,791    10%   —    — 
Foreign customer D   36,376    10%   —    — 

 

As of March 31, 2024 the amounts outstanding for these customer are listed below.

 

     
  

AR Balance
At March 31, 2024

 
Domestic customer A  $3,586 
Domestic customer B   19,501 
Domestic customer C   31,741 
Foreign customer D   — 

 

As of March 31, 2024 and 2023, the Company had a sales order backlog of $10,346 and $162,396, respectively.

 

 

6 
 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATION

 

Management's discussion and analysis is intended to be read in conjunction with the Company's unaudited financial statements and the integral notes thereto for the quarter ended March 31, 2024. The following statements may be forward looking in nature and actual results may differ materially.

 

A.       RESULTS OF OPERATIONS

 

REVENUES: Total revenues from sales increased to $356,061 for the first quarter of 2024 as compared to $305,089 in the first quarter of 2023, reflecting an increase of 16.7%. Management believes the increase in sales revenues is due to increased product demand from foreign customers and a reduction in the sales order backlog.

 

The Company's revenues have historically fluctuated from quarter to quarter due to timing factors such as product shipments to customers, customer order placement, customer buying trends, and changes in the general economic environment. The procurement process regarding plant and project automation, or project development, which usually surrounds the decision to purchase ESTeem products, can be lengthy. This procurement process may involve bid activities unrelated to the ESTeem products, such as additional systems and subcontract work, as well as capital budget considerations on the part of the customer. Because of the complexity of this procurement process, forecasts with regard to the Company's revenues are difficult to predict.

 

A percentage breakdown of the Company’s market segments of Domestic and Foreign Export sales for the first quarter of 2024 and 2023 are as follows:

 

   2024   2023 
Domestic Sales   88%   96%
Export Sales   12%   4%

 

 

BACKLOG:

 

As of March 31, 2024, the Company had a sales order backlog of $10,346. The Company’s customers generally place orders on an "as needed basis". Shipment for most of the Company’s products is generally made within 1 to 5 working days after receipt of customer orders, with the exception of ongoing, scheduled projects, and custom designed equipment.

 

COST OF SALES:

 

Cost of sales percentages for the first quarters of 2024 and 2023 were 43.3 % and 44.3% of respective net sales and are calculated excluding site support expenses of $6,677 and $4,541 respectively. The cost of sales percentage decrease in the first quarter of 2024 is the result of the product mix sold during the same quarter of 2023.

 

 

7 
 

 

OPERATING EXPENSES:

 

Operating expenses for the first quarter of 2024 increased $24,736 from the first quarter of 2023 levels. The following is a delineation of operating expenses:

 

   March 31,
2024		   March 31,
2023		   Increase
(Decrease)		 
General and administrative  $88,778   $84,765   $4,013 
Research and development   28,947    28,663    284 
Marketing and sales   168,665    148,227    20,438 
Total operating expenses  $286,390   $261,655   $24,735 

 

General and administrative: For the first quarter of 2024, general and administrative expenses increased $4,013 to $88,778, due to increased payroll related expenses and purchased services when compared with the same quarter of 2023.

 

Research and development: Research and development expenses increased $284 to $28,947 during the first quarter of 2024 due to increased payroll expenses when compared with the same quarter of 2023.

 

Marketing and sales: During the first quarter of 2024, marketing and sales expenses increased $20,438 to $168,665 when compared with the same period of 2023, due to increased payroll, taxes, benefits, advertising, and trade shows during the first quarter of 2024.

 

INTEREST INCOME:

 

The Company earned $5,470 in interest income during the quarter ended March 31, 2024 compared to $4,002 during the same period in 2023. Sources of this income were money market accounts and certificates of deposit.

 

NET INCOME (LOSS):

 

The Company had a net loss of $85,574 for the first quarter of 2024 compared to a net loss of $92,124 for the same quarter of 2023. The decrease in net loss during 2024 is the result of increased sales and operating expenses.

 

B.       FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

 

The Company's current asset to current liabilities ratio at March 31, 2024 was 17.4:1 compared to 16.2:1 at December 31, 2023. The increase in current ratio is due to the decrease in accounts payable liability at March 31, 2024 as compared to December 31, 2023.

 

At March 31, 2024, the Company had cash and cash equivalents of $435,181 as compared to cash and cash equivalent of $486,252 at December 31, 2023, primarily reflecting a decrease in accounts payable and the decrease in net loss.

 

For the three-month period ended March 31, 2024, cash used by operating activities was $51,071 compared to $149,701 for the same period in 2023. This change was driven by a net loss of $85,574 during the three months ended March 31, 2024 compared to a net loss of $92,124 in the three months ended March 31, 2023 and the decrease in inventory of $92,851.

 

In management's opinion, the Company's cash and cash equivalents and other working capital at March 31, 2024 is sufficient to satisfy requirements for operations, capital expenditures, and other expenditures as may arise during 2024.

 

FORWARD LOOKING STATEMENTS: The above discussion may contain forward looking statements that involve a number of risks and uncertainties. In addition to the factors discussed above, among other factors that could cause actual results to differ materially are the following: competitive factors such as rival wireless architectures and price pressures; availability of third party component products at reasonable prices; inventory risks due to shifts in market demand and/or price erosion of purchased components; change in product mix, and risk factors that are listed in the Company's reports and registration statements filed with the Securities and Exchange Commission.

 

8 
 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

 

There is no established market for trading the common stock of the Company. The market for the Company’s common stock is limited, and as such shareholders may have difficulty reselling their shares when desired or at attractive market prices. The Common Stock is not regularly quoted in the automated quotation system of a registered securities system or association. Our common stock, par value $0.001 per share, is quoted on the OTC Markets Group QB (OTCQB) under the symbol “ELST”. The OTCQB is a network of security dealers who buy and sell stock. The dealers are connected by a computer network which provides information on current “bids” and “asks” as well as volume information. The OTCQB is not considered a “national exchange”. The “over-the-counter” quotations do not reflect inter-dealer prices, retail mark-ups commissions or actual transactions. The Company’s common stock has continued to trade in low volumes and at low prices. Some investors view low-priced stocks as unduly speculative and therefore not appropriate candidates for investment. Many institutional investors have internal policies prohibiting the purchase or maintenance of positions in low-priced stocks.

 

Item 4. Controls and Procedures

 

An evaluation has been performed under the supervision and with the participation of our management, including our Chief Executive Officer and Principal Accounting Officer, of the effectiveness of the design and the operation of our "disclosure controls and procedures" (as such term is defined in Rules 13a-15(e) under the Securities Exchange Act of 1934) as of March 31, 2024. Based on that evaluation, our principal executive officer and our principal financial officer concluded that the design and operation of our disclosure controls and procedures were effective as of March 31, 2024.

 

The design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote. However, management believes that our system of disclosure controls and procedures are designed to provide a reasonable level of assurance that the objectives of the system will be met.

 

Changes in Internal Control Over Financial Reporting

 

There have not been any changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 

9 
 

 

 

PART II—OTHER INFORMATION

 

Item 5. Other Information

 

During the three months ended December 31, 2023, no director or officer of the Company adopted, modified, or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act or any “non-Rule 10b5-1 arrangement” as defined in Item 408(c) of Regulation S-K.

 

Item 6. Exhibits 

 

        Incorporation by Reference    
Exhibit Number   Description   Form   Exhibit   Filing
Date		   Filed/Furnished Herewith
                     
31.1*   Certification of Principal Executive Officer Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002               X
31.2*   Certification of Principal Financial Officer Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                X
32.1+   Certification of Principal Executive Officer pursuant to 18 U.S. C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                XX
32.2+   Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                XX
101.INS*   Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)                X
101.SCH*   XBRL Taxonomy Extension Schema Document.                X
101.CAL*   XBRL Taxonomy Extension Calculation Linkbase Document                X
101.DEF*   XBRL Taxonomy Extension Definition Linkbase Document                X
101.LAB*   XBRL Taxonomy Extension Label Linkbase Document                X
101.PRE*   XBRL Taxonomy Extension Presentation Linkbase Document                X
104*   Cover Page Interactive Date File (embedded with the Inline XBRL document)                X
                     
X   Filed herewith                
XX   Furnished herewith                

 

 

 

10 
 

 

 

 

SIGNATURES

 

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

  ELECTRONIC SYSTEMS TECHNOLOGY, INC.
   
   
 

By: /s/ Daniel M. Tolley 

Date:  April 22, 2024 Name:  Daniel M. Tolley
  Title:  President
(Principal Executive Officer)

 

 

 

 

By: /s/ Michael W. Eller 

Date:  April 22, 2024 Name:  Michael W. Eller
  Title:  President
(Principal Accounting Officer)

 

 

 

 

 

 

 

11