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 ~~June~~September 30, 2023

☐

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 x 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 x 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 x

APPLICABLE ONLY TO CORPORATE ISSUERS:

As of ~~July~~October 26, 2023, 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)

	June 30,		December 31,
	September 30,		December 31,
	2023		2022
ASSETS
Current assets
Cash and cash equivalents	$	~~382~~421,~~095~~493	$	751,118
Certificates of deposit		400,000		251,699
Accounts receivable, net		~~177~~96,~~868~~178		141,394
Inventories		~~840~~809,~~573~~877		725,478
Prepaid expenses		1932,~~726~~436		42,627
Employee retention tax credit receivable (NOTE 7)		~~63,000~~—		63,000
Accrued interest receivable		~~699~~2,274		808
Total current assets		1,~~883~~762,~~961~~258		1,976,124
Property and equipment, net of depreciation		2019,~~265~~260		914
Right to use – Lease, net of amortization (NOTE 6)		5040,~~452~~821		69,419
Total assets	$	1,~~954~~822,~~678~~339	$	2,046,457
LIABILITIES and STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	9332,~~789~~582	$	138,996
Accrued wages and bonus		214,~~470~~465		24,777
Accrued vacation pay		2624,~~366~~382		16,846
Lease liability, current (NOTE 6)		4041,~~878~~453		39,120
Other accrued liabilities		7,~~340~~175		8,913
Total current liabilities		~~189~~110,~~843~~057		228,652
Long-Term Liabilities
Operating lease liability (NOTE 6)		~~10,048~~—		30,457
Total liabilities		~~199~~110,~~892~~057		259,109
Stockholder 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		932,412
Retained earnings		~~816~~774,~~735~~230		849,989
Total stockholders' equity		1,~~754~~712,~~787~~282		1,787,348
Total liabilities and stockholders' equity	$	1,~~954~~822,~~678~~339	$	2,046,457

See Notes to Condensed Financial Statements.

ELECTRONIC SYSTEMS TECHNOLOGY, INC. CONDENSED STATEMENTS OF OPERATIONS (Unaudited)

CONDENSED STATEMENTS OF OPERATIONS


		Three Months Ended September 30, 2023			Three Months Ended September 30, 2022			Nine Months Ended September 30, 2023			Nine Months Ended September 30, 2022

SALES - NET	$	342,721		$	487,160		$	1,233,016		$	1,376,195
COST OF SALES		(178,435	)		(210,056	)		(586,631	)		(611,376	)
GROSS PROFIT		164,286			277,104			646,385			764,819

Operating Expenses
General and administrative		55,829			60,784			202,086			212,308
Research and development		26,114			40,029			82,798			131,662
Marketing and sales		133,223			104,293			454,819			373,694
TOTAL OPERATING EXPENSE		215,166			205,106			739,703			717,664

OPERATING INCOME (LOSS)		(50,880	)		71,998			(93,318	)		47,155

OTHER INCOME
Interest income		8,375			1,373			17,559			2,459
TOTAL OTHER INCOME		8,375			1,373			17,559			2,459

NET INCOME (LOSS) BEFORE INCOME TAX		(42,505	)		73,371			(75,759	)		49,614
Benefit (provision) for income tax		—			—			—			—
NET INCOME (LOSS)	$	(42,505	)	$	73,371		$	(75,759	)	$	49,614

Basic and diluted earnings per share	$	(0.01	)	$	0.01		$	(0.02	)	$	0.01

Basic and diluted weighted average shares used in computing income (loss) per share:		4,946,502			4,946,502			4,946,502			4,946,502

~~(Unaudited)~~See Notes to Condensed Financial Statements.

		Three Months Ended June 30, 2023			Three Months Ended June 30, 2022			Six Months Ended June 30, 2023			Six Months Ended June 30, 2022
SALES - NET	$	585,206		$	416,892		$	890,295		$	889,035
COST OF SALES		(268,636	)		(191,437	)		(408,196	)		(401,321	)
GROSS PROFIT		316,570			225,455			482,099			487,714
Operating Expenses
General and administrative		61,492			66,747			146,257			151,522
Research and development		28,021			45,856			56,684			91,633
Marketing and sales		173,368			132,242			321,595			269,401
TOTAL OPERATING EXPENSE		262,881			244,845			524,536			512,556
OPERATING INCOME (LOSS)		53,689			(19,390	)		(42,437	)		(24,842	)
OTHER INCOME
Interest income		5,181			594			9,183			1,085
TOTAL OTHER INCOME		5,181			594			9,183			1,085
NET INCOME (LOSS) BEFORE INCOME TAX		58,870			(18,796	)		(33,254	)		(23,757	)
Benefit (provision) for income tax		—			—			—			—
NET INCOME (LOSS)	$	58,870		$	(18,796	)	$	(33,254	)	$	(23,757	)
Basic and diluted earnings per share	$	0.01		$	(0.00	)	$	(0.01	)	$	(0.00	)
Basic and diluted weighted average shares used in computing income (loss) per share:		4,946,502			4,946,502			4,946,502			4,946,502

~~See~~ELECTRONIC ~~Notes~~SYSTEMS toTECHNOLOGY, ~~Condensed Financial Statements~~INC. CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)


	Nine Months Ended
	September 30,			September 30,
	2023			2022

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)	$	(75,759	)	$	49,614

Noncash items included in net loss:
Depreciation and amortization		1,423			333
Stock based compensation		693			—
Changes in operating assets and liabilities:
Accounts receivable, net		45,216			3,644
Inventories		(84,399	)		(56,601	)
Accrued interest receivable		(1,466	)		(794	)
Prepaid expenses		10,191			(53,377	)
Employee retention tax credit receivable		63,000			—
Accounts payable		(106,414	)		(44,803	)
Other accrued liabilities		(14,040	)		14,525
NET CASH USED IN OPERATING ACTIVITIES		(161,555	)		(87,459	)


CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of fixed assets		(19,769	)		—
Certificates of deposit redeemed		1,001,699			850,000
Certificates of deposit purchased		(1,150,000	)		(850,584	)
NET CASH USED IN INVESTING ACTIVITIES		(168,070	)		(584	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on CARES Act loan payable (round 1)		—			(5,968	)
NET CASH USED IN FINANCING ACTIVITIES		—			(5,968	)

NET DECREASE IN CASH AND CASH EQUIVALENTS		(329,625	)		(94,011	)
Cash and cash equivalents at beginning of period		751,118			655,616
Cash and cash equivalents at end of period	$	421,493		$	561,605

~~ELECTRONIC~~See ~~SYSTEMS TECHNOLOGY,~~Notes ~~INC.~~to ~~CONDENSED~~Condensed Financial ~~STATEMENTS OF CASH FLOWS (Unaudited)~~ Statements.

	Six Months Ended
	June 30,			June 30,
	2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(33,254	)	$	(23,757	)
Noncash items included in net loss:
Depreciation and amortization		418			222
Stock based compensation		693			—
Changes in operating assets and liabilities:
Accounts receivable, net		(36,474	)		6,835
Inventories		(115,095	)		(27,252	)
Accrued interest receivable		109			(641	)
Prepaid expenses		22,901			6,304
Accounts payable		(45,207	)		(31,151	)
Other accrued liabilities		4,956			(1,187	)
NET CASH USED IN OPERATING ACTIVITIES		(200,953	)		(70,627	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of fixed assets		(19,769	)
Certificates of deposit redeemed		751,699			300,000
Certificates of deposit purchased		(900,000	)		(300,000	)
NET CASH USED IN INVESTING ACTIVITIES		(168,070	)		—
CASH FLOWS USED IN FINANCING ACTIVITIES:
Principal payments on CARES Act loan payable (round 1)		—			(5,968	)
NET CASH USED IN FINANCING ACTIVITIES		—			(5,968	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(369,023	)		(76,595	)
Cash and cash equivalents at beginning of period		751,118			655,616
Cash and cash equivalents at end of period	$	382,095		$	579,021

~~See~~ELECTRONIC ~~Notes~~SYSTEMS toTECHNOLOGY, ~~Condensed Financial Statements~~INC. DBA ESTEEM WIRELESS MODEMS CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited)


	Common Stock				Additional Paid-In		Retained
	Shares		Amount		Capital		Earnings			Total

Balance, January 1, 2022		4,946,502	$	4,947	$	932,412	$	703,458		$	1,640,817

Net income (loss)		—		—		—		(4,961	)		(4,961	)

Balance at March 31, 2022		4,946,502		4,947		932,412		698,497			1,635,856

Net income (loss)		—		—		—		(18,796	)		(18,796	)

Balance at June 30, 2022		4,946,502		4,947		932,412		679,701			1,617,060

Net income (loss)		—		—		—		73,371			73,371

Balance at September 30, 2022		4,946,502	$	4,947	$	932,412	$	753,072		$	1,690,431

Balance, January 1, 2023		4,946,502	$	4,947	$	932,412		849,989		$	1,787,348

Net income (loss)		—		—		—		(92,124	)		(92,124	)

Balance at March 31, 2023		4,946,502		4,947		932,412		757,865			1,695,224

Net income (loss)		—		—		—		58,870			58,870

Stock based compensation						693		—			693

Balance at June 30, 2023		4,946,502		4,947		933,105		816,735			1,754,787
Net income (loss)		—		—		—		(42,505	)		(42,505	)

Balance at September 30, 2023		4,946,502	$	4,947	$	933,105	$	774,230		$	1,712,282

~~ELECTRONIC~~See ~~SYSTEMS~~Notes ~~TECHNOLOGY,~~to ~~INC.~~Condensed ~~DBA~~Financial ~~ESTEEM WIRELESS MODEMS CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited)~~ Statements.

	Common Stock				Additional Paid-In		Retained
	Shares		Amount		Capital		Earnings			Total
Balances, January 1, 2022		4,946,502	$	4,947	$	932,412	$	703,458		$	1,640,817
Net income (loss)		—		—		—		(4,961	)		(4,961	)
Balance at March 31, 2022		4,946,502	$	4,947	$	932,412	$	698,497		$	1,635,856
Net income (loss)		—		—		—		(18,796	)		(18,796	)
Balance at June 30, 2022		4,946,502	$	4,947	$	932,412	$	679,701		$	1,617,060
Balances, January 1, 2023		4,946,502	$	4,947	$	932,412		849,989		$	1,787,348
Net income (loss)		—		—		—		(92,124	)		(92,124	)
Balance at March 31, 2023		4,946,502	$	4,947	$	932,412	$	757,865		$	1,695,224
Net income (loss)		—		—		—		58,870			58,870
Stock based compensation		—		—		693		—			693
Balance at June 30, 2023		4,946,502	$	4,947	$	933,105	$	816,735		$	1,754,787

~~See~~ELECTRONIC ~~Notes~~SYSTEMS toTECHNOLOGY, ~~Condensed Financial Statements~~INC.

5NOTES TO CONDENSED FINANCIAL STATEMENTS

~~ELECTRONIC SYSTEMS TECHNOLOGY, INC.~~(Unaudited)

~~NOTES~~NOTE 1 TO- ~~CONDENSED FINANCIAL~~BASIS ~~STATEMENTS~~OF PRESENTATION

The unaudited condensed financial statements, including notes, of Electronic Systems Technology, Inc. (~~Unaudited~~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 September 30, 2023 and its results of operations, cash flows, and changes in stockholders’ equity for the three and nine months ended September 30, 2023, and 2022. The balance sheet at December 31, 2022 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, 2022.

~~NOTE~~The results 1of operations for the three and nine-month ~~BASIS~~period OFended ~~PRESENTATION~~September 30, 2023 are not necessarily indicative of the results expected for the full fiscal year or for any other fiscal period. The Company estimates that for 2023 the anticipated effective annual federal income tax rate will be 0%.

~~The condensed financial~~New ~~statements,~~Accounting 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 June 30, 2023, and its results of operations, cash flows, and changes in stockholders’ equity for the six months ended June 30, 2023, and 2022. The balance sheet at December 31, 2022 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, 2022.Pronouncements

~~The results of operations~~Accounting ~~for~~standards ~~the~~that ~~three~~have ~~month~~been ~~and~~issued ~~six-month~~by ~~period~~the ~~ended~~Financial ~~June~~Accounting ~~30,~~Standards ~~2023~~Board ~~are~~that do not ~~necessarily~~require ~~indicative~~adoption ofuntil ~~the~~a ~~results~~future ~~expected~~date ~~for~~are ~~the full fiscal~~not ~~year~~expected orto ~~for~~have ~~any~~a ~~other~~material ~~fiscal~~impact ~~period.~~on ~~The Company estimates that for 2023~~ the ~~anticipated~~financial ~~effective~~statements ~~annual~~upon ~~federal income tax rate will be 0%~~adoption.

~~New~~NOTE 2 ~~Accounting~~- ~~Pronouncements~~INVENTORIES

~~Accounting standards~~Inventories ~~that~~are ~~have~~stated ~~been~~at ~~issued~~lower byof ~~the~~direct ~~Financial~~cost ~~Accounting~~or ~~Standards~~net ~~Board~~realizable ~~that~~value dowith ~~not~~cost ~~require~~determined ~~adoption~~using ~~until~~the aFIFO ~~future~~(first ~~date~~in, ~~are~~first ~~not~~out) ~~expected~~method. toInventories ~~have~~consist aof ~~material impact on~~ the ~~financial statements upon adoption.~~following:

NOTE 2 - INVENTORIES

Schedule of inventories
	September 30, 2023		December 31, 2022
Parts	$	125,555	$	172,190
Work in progress		366,887		336,298
Finished goods		317,435		216,990
Total inventories	$	809,877	$	725,478

~~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:~~5

Schedule of inventories
	June 30, 2023		December 31, 2022
Parts	$	124,215	$	172,190
Work in progress		380,562		336,298
Finished goods		335,796		216,990
Total inventories	$	840,573	$	725,478

NOTE 3 - EARNINGS (LOSS) PER SHARE

6Basic earnings (loss) per share excludes dilution and is computed by dividing income (loss) available to common stockholders by the weighted-average number of shares of common stock 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 September 30, 2023 and 2022, the Company had 225,000 and 210,000 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.

~~ELECTRONIC~~NOTE 4 ~~SYSTEMS~~- ~~TECHNOLOGY,~~STOCK ~~INC.~~OPTIONS

~~NOTES~~On June TO9, ~~CONDENSED~~2023, the Board of Directors granted 45,000 options to employees. The new options have an exercise price of $0.40, a term of ~~FINANCIAL~~5 ~~STATEMENTS~~years, and vest immediately. The fair value of the options was determined using the Black-Scholes model using the following variables: stock price of $0.24, volatility of 104.1%, expected term of 5 years with a forfeiture rate of 95%, and a discount factor of 3.92%. Share based compensation of $693 ($534 in marketing and sales and $159 in general and administrative in the condensed statement of operations) was recognized during the nine-month period ended September 30, 2023.

~~(Unaudited)~~As of September 30, 2023, there were 225,000 options outstanding with a weighted average exercise price of $0.40 per share, a weighted average remaining life of 2.0 years and had intrinsic value of nil.

NOTE 5 3– ~~- EARNINGS (LOSS) PER SHARE~~ REVENUE

~~Basic earnings (loss)~~The ~~per~~Company ~~share~~product ~~excludes~~revenue ~~dilution~~includes ~~and~~industrial iswireless ~~computed~~products byand ~~dividing~~accessories ~~income~~such ~~(loss)~~as ~~available~~antennas, topower ~~common~~supplies ~~stockholders~~and bycable ~~the weighted-average number~~assemblies. ofThe ~~shares~~Company ofalso ~~common~~provides ~~stock~~direct ~~outstanding~~site ~~for~~support ~~the~~and ~~period.~~engineering ~~Diluted~~services ~~earnings (loss) per share reflects potential dilution occurring if securities or other contracts~~ to ~~issue~~customers, ~~common~~such ~~stock~~as ~~were~~repair ~~exercised~~and orupgrade ~~converted into Common Stock or resulted in the issuance~~ of ~~common~~its ~~stock~~products. ~~that~~During ~~then shared in~~ the ~~earnings~~three-month ofperiods ~~the~~ended ~~Company.~~September ~~At June~~ 30, 2023 and 2022, the Company’s ~~had~~revenue ~~225,000~~from ~~and~~products ~~210,000~~sales ~~outstanding~~was ~~stock~~$336,621 ~~options~~and $480,260, respectively,. ~~that~~Revenue ~~could~~from ~~have~~site asupport ~~dilutive~~and ~~effect~~engineering onservices ~~future~~was ~~periods’~~$6,100 ~~net~~and ~~income.~~$6,900 ~~The~~respectively, ~~stock~~over ~~options were not included in~~ the ~~calculation of~~same ~~diluted earnings per share for either period as they were anti-dilutive~~periods.

~~NOTE~~During the 4 nine-month ~~STOCK~~periods ~~OPTIONS~~ended September 30, 2023 and 2022, the Company’s revenue from products sales was $1,209,516 and $1,351,495, respectively. Revenue from site support and engineering services was $23,500 and $24,700 respectively, over the same periods.

~~On June 9, 2023, the~~The ~~Board~~Company’s ~~of Directors granted 45~~customers,~~000~~ ~~options~~ to ~~employees.~~which ~~The~~trade ~~new~~credit ~~options~~terms ~~have~~are anextended, ~~exercise~~consist ~~price~~ of ~~$0.40,~~United aStates ~~term~~and oflocal 5governments ~~years,~~and foreign and ~~vest~~domestic ~~immediately~~companies. ~~The~~Domestic ~~fair~~sales ~~value~~for of the ~~options was determined using the Black~~three-~~Scholes~~month ~~model~~period ~~using~~ended ~~the~~September ~~following~~30, ~~variables:~~2023 ~~stock~~and ~~price~~September ~~of $0.24~~30, ~~volatility~~2022 ofwere ~~104.1%~~$338,948 ~~expected~~and ~~term of 5 years with a forfeiture rate of 95%~~$419,164, ~~and a discount factor of 3~~respectively.~~92%. Share based compensation~~ ofSales ~~$693~~to ~~($534~~foreign incustomers ~~marketing~~for ~~and~~the ~~sales~~three-month ~~and~~period ~~$159~~ended inSeptember ~~general~~30, 2023 and ~~administrative~~September in30, ~~the~~2022 ~~condensed~~were ~~statement~~$3,773 ~~of operations) was recognized during the three~~ and ~~six-month periods ended June 30~~$67,996, ~~2023~~respectively.

AsDomestic sales offor ~~June~~the ~~30, 2023,~~nine-month ~~there~~period ~~were~~ended ~~225~~September 30,~~000 options~~ ~~outstanding~~2023 ~~with~~and aSeptember ~~weighted~~30, ~~average~~2022 ~~exercise~~were ~~price~~$1,208,539 ofand $01,234,793, respectively.40 Sales to ~~per~~foreign ~~share,~~customers afor ~~weighted~~the ~~average~~nine-month ~~remaining~~period ~~life~~ended ofSeptember ~~2.2 years~~30, 2023 and ~~had~~September ~~intrinsic~~30, ~~value~~2022 ofwere 0$24,477 ~~nil~~and $141,402, respectively.

~~NOTE 5 – REVENUE~~6

~~The Company product~~For 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 ~~periods~~ period ended ~~June~~September 30, 2023 ~~and 2022~~, ~~the~~sales ~~Company’s~~to ~~revenue~~three ~~from~~customers ~~products~~represented ~~sales~~more ~~was~~than ~~$575,306~~10% ~~and~~of ~~$409~~total revenue,~~392,~~ ~~respectively.~~three ~~Revenue~~customers ~~from~~represented ~~site~~more ~~support~~than ~~and~~10% ~~engineering~~of ~~services~~total ~~was~~revenue ~~$9,900~~for ~~and $7,500 respectively, over~~ the same ~~periods~~period in 2022.

During the six-month periods ended June 30, 2023 and 2022, the Company’s revenue from products sales was $872,895 and $871,235, respectively. Revenue from site support and engineering services was $17,400 and $17,800 respectively, over the same periods.

Schedule of revenue
	2023 Sales		2023 %age of Total Sales			2022 Sales		2022%age of Total Sales
Domestic customer A	$	64,698		19	%	$	60,130		12	%
Domestic customer B		57,456		17	%		58,167		12	%
Domestic customer C		33,119		10	%		46,703		10	%

~~The Company’s~~For ~~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~~nine-month period ended ~~June~~September 30, 2023 ~~and June 30~~, ~~2022~~sales ~~were~~to ~~$575,683~~one ~~and~~customer ~~$378,959,~~represented ~~respectively.~~more ~~Sales~~than to10% ~~foreign customers~~of ~~for~~total ~~the~~revenue, ~~three-month~~two ~~period~~customers ~~ended~~represented more ~~June~~than ~~30,~~10% ~~2023~~of ~~and~~total ~~June~~revenue ~~30,~~for ~~2022~~the ~~were~~same ~~$9,523~~period ~~and~~in ~~$37,933, respectively~~2022.

Domestic sales for the six-month period ended June 30, 2023 and June 30, 2022 were $869,591 and $815,629, respectively. Sales to foreign customers for the six-month period ended June 30, 2023 and June 30, 2022 were $20,704 and $73,406, respectively.

	2023 Sales		2023 %age of Total Sales			2022 Sales		2022 %age of Total Sales
Domestic customer A	$	262,149		21	%	$	165,621		12	%
Domestic customer B		—		—			137,346		10	%
Domestic customer C		—		—			—		—

~~For the three-month~~As ~~period~~of ~~ended~~September ~~June~~ 30, 2023, ~~sales~~and to2022, ~~three~~the ~~customers~~Company ~~represented~~had ~~more~~a ~~than~~sales ~~10%~~order backlog of ~~total revenue~~$124,125 ~~three~~and ~~customers~~$141,066, ~~represented more than 10% of total revenue for the same period in 2022~~respectively.

7NOTE 6 - LEASES

~~ELECTRONIC~~On ~~SYSTEMS~~September ~~TECHNOLOGY~~23, ~~INC~~2022, the Company signed a new two-year lease for its facilities. The base lease is $3,373 and $3,478 per month for years one and two, respectively. There is a leasehold tax applied to the base lease at 12.84%. The Company has the right to terminate the lease with 90 days’ notice. There is no renewal clause contained in the current lease. Upon signing the lease, the Company recognized a lease liability and right of use asset of $78,757 based on the two-year payment stream discounted using an estimated incremental borrowing rate of 4.125%. At September 30, 2023, the remaining lease term is 12 months. As of September 30, 2023, future payments on this lease of $10,435 and $31,304 will be paid in 2023 and 2024 respectively.

~~NOTES TO CONDENSED FINANCIAL STATEMENTS~~7

~~(Unaudited)~~For the three and nine-month periods ended September 30, 2023 and 2022, lease expenses of $11,576 and $11,616 and $34,727 and $34,849, respectively, are included in the following expense classifications on the statement of operations:

Schedule of revenue
Schedule of lease expense
	2023 Sales		2023 %age of Total Sales			2022 Sales		2022%age of Total Sales
	For the three-month period ended September 30,
Domestic customer A	$	134,604		23	%	$	54,436		13	%
	2023							2022
Domestic customer B		76,993		13	%		53,880		13	%
	Cost of sales		Operating expenses			Total		Cost of sales			Operating expenses		Total
Domestic customer C		56,861		10	%		49,031		12	%
Base rent pursuant to lease agreement	$	5,751	$	4,526		$	10,277	$	5,751		$	4,526	$	10,277
Variable lease costs		727		572			1,299		749			590		1,339
Total lease costs	$	6,478	$	5,098		$	11,576	$	6,500		$	5,116	$	11,616

For the six-month period ended June 30, 2023, sales to two customers represented more than 10% of total revenue, three customers represented more than 10% of total revenue for the same period in 2022.

	For the nine-month period ended September 30,
	2023						2022
	Cost of sales		Operating expenses		Total		Cost of sales		Operating expenses		Total
Base rent pursuant to lease agreement	$	17,252	$	13,578	$	30,830	$	17,252	$	13,578	$	30,830
Variable lease costs		2,181		1,716		3,897		2,249		1,770		4,019
Total lease costs	$	19,433	$	15,294	$	34,727	$	19,501	$	15,348	$	34,849

	2023 Sales		2023 %age of Total Sales			2022 Sales		2022 %age of Total Sales
Domestic customer A	$	204,694		23	%	$	121,715		14	%
Domestic customer B		91,821		10	%		107,505		12	%
Domestic customer C							100,693		11	%

NOTE 7 - CARES ACT RETENTION CREDIT

As of ~~June~~December 3031, ~~2023 and~~ 2022, the Company ~~had~~has aan ~~sales~~employee ~~order~~retention ~~backlog~~tax credit due of $~~109~~63,~~844~~000. ~~and~~The ~~$24,857,~~amount ~~respectively~~to be received is a refund of qualified payroll taxes the Company paid in connection with employee payroll during the COVID 19 pandemic. The credit was received in July 2023.

~~NOTE 6 - LEASES~~8

~~On September 23, 2022,~~Item ~~the Company signed a new two-year lease for its facilities~~2. The base lease is $3,373 and $3,478 per month for years one and two, respectively. There is a leasehold tax applied to the base lease at 12.84%. The Company has the right to terminate the lease with 90 daysManagement’s ~~notice. There~~Discussion ~~is no renewal clause contained in the current lease. Upon signing the lease, the Company recognized a lease liability~~ and ~~right of~~Analysis ~~use asset~~ of ~~$78,757~~Financial ~~based~~Condition onand ~~the~~Results ~~two-year payment stream discounted using an estimated incremental borrowing rate~~ of 4Operations.~~125%. At June 30, 2023, the remaining lease term is 15 months. As of June 30, 2023, future payments on this lease of $19,679 and $30,772 will be paid in 2023 and 2024 respectively.~~

8MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

~~For the three month~~CONDITION ~~and~~AND ~~six-month~~RESULTS ~~periods~~OF ~~ended June 30, 2023 and 2022, lease expenses of $11,576 and $10,903 and $23,151 and $21,805, respectively, are included in the following expense classifications on the statement of operations:~~OPERATION

Schedule of lease expense
	For the three-month period ended June 30,
	2023						2022
	Cost of sales		Operating expenses		Total		Cost of sales		Operating expenses		Total
Base rent pursuant to lease agreement	$	5,751	$	4,526	$	10,277	$	5,397	$	4,248	$	9,645
Variable lease costs		727		572		1,299		704		554		1,258
Total lease costs	$	6,478	$	5,098	$	11,576	$	6,101	$	4,802	$	10,903

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 September 30, 2023. The following statements may be forward looking in nature and actual results may differ materially.

	For the six-month period ended June 30,
	2023						2022
	Cost of sales		Operating expenses		Total		Cost of sales		Operating expenses		Total
Base rent pursuant to lease agreement	$	11,501	$	9,052	$	20,553	$	10,793	$	8,495	$	19,288
Variable lease costs		1,454		1,144		2,598		1,408		1,109		2,517
Total lease costs	$	12,955	$	10,196	$	23,151	$	12,201	$	9,604	$	21,805

RESULTS OF OPERATIONS

~~NOTE~~REVENUES: Total 7revenues -from ~~CARES~~sales ~~ACT~~decreased to $342,721 for the third quarter of 2023 as compared to $487,160 in the third quarter of 2022, reflecting ~~RETENTION~~a ~~CREDIT~~decrease of 29.6%. Management believes the decrease in sales revenues is due to the decrease in customer demand. Year to date total revenues from sales decreased to $1,233,016 in 2023 as compared to $1,376,195 in 2022, reflecting a decrease of 10.4%. Management believes the decrease in sales revenues is due to a decrease in customer demand and the ability to ship orders in a timely manner. Although the inventory levels have increased compared to last year, ancillary goods are being impacted by delays in the supply chain resulting in a $124K backlog.

AsThe Company's atrevenues ~~December~~have 31historically fluctuated from quarter to quarter due to timing factors such as product shipments to customers, ~~2022~~customer ~~and~~order ~~June 30~~placement, ~~2023~~customer buying trends, and changes in the ~~Company~~general ~~has~~economic anenvironment. ~~employee~~The ~~retention~~procurement ~~tax~~process ~~credit~~regarding plant ~~due~~and ofproject ~~$63~~automation,~~000.~~ ~~The~~or ~~amount~~project development, which usually surrounds the decision to purchase ESTeem products, can be ~~received~~lengthy. This isprocurement aprocess ~~refund~~may ofinvolve ~~qualified payroll~~bid ~~taxes~~activities unrelated to the ~~Company~~ESTeem ~~paid~~products, insuch ~~connection~~as ~~with~~additional ~~employee~~systems ~~payroll~~and ~~during~~subcontract work, as well as capital budget considerations on the ~~COVID~~part 19of ~~pandemic~~the customer. ~~The~~Because ~~credit~~of ~~was~~the ~~received~~complexity inof ~~July~~this ~~2023~~procurement process, forecasts with regard to the Company's revenues are difficult to predict.

9A percentage breakdown of the Company’s market segments of Domestic and Foreign Export sales for the three- and nine-month periods ended September 30, 2023 and 2022 are as follows:

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

	Three Months ended September 30, 2023			Three Months ended September 30, 2022			Nine Months ended September 30, 2023			Nine Months ended September 30, 2022
Domestic Sales		99	%		86	%		98	%		90	%
Export Sales		1	%		14	%		2	%		10	%

~~MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL~~BACKLOG:

~~CONDITION~~As of ~~AND~~September ~~RESULTS~~30, 2023, the Company had a sales order backlog of $124,125. The Company’s customers generally place orders on an OF"as ~~OPERATION~~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.

~~Management's~~COST ~~discussion~~OF 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 June 30, 2023. The following statements may be forward looking in nature and actual results may differ materially.SALES:

ACost of sales percentages for the third quarters of 2023 and 2022 were 52.1% ~~RESULTS~~and OF43.1% ~~OPERATIONS~~of respective net sales. Cost of sales percentages for the nine-month periods ended September 30, 2023 and 2022 were 47.6% and 44.4%, respectively. The cost of sales percentage increase for the nine-month period ended September 30, 2023 is the result of the product mix sold during the same period of 2022.

REVENUES: Total revenues from sales increased to $585,206 for the first six-months of 2023 as compared to $416,892 in the second quarter of 2022, reflecting an increase of 40.4%. Management believes the increase in sales revenues is due to the increase in customer demand. Year to date total revenues from sales increased to $890,295 in 2023 as compared to $889,035 in 2022, reflecting an increase of 0.1%. Management believes the increase in sales revenues is due to the Company’s increased inventory level and the ability to ship orders in a timely manner.9

~~The Company's revenues~~OPERATING 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.EXPENSES:

~~A percentage breakdown~~The offollowing ~~the~~is ~~Company’s~~a ~~market~~delineation ~~segments~~ of ~~Domestic~~operating ~~and Foreign Export sales for the three- and six-month periods ended June 30, 2023 and 2022 are as follows~~expenses:

	Three Months ended June 30, 2023			Three Months ended June 30, 2022			Six Months ended June 30, 2023			Six Months ended June 30, 2022
	Three Months Ended									Nine Month Ended
Domestic Sales		98	%		91	%		98	%		92	%
	September 30, 2023			September 30, 2022			Increase (Decrease)			September 30, 2023			September 30, 2022		Increase (Decrease)
Export Sales		2	%		9	%		2	%		8	%
General and administrative	$	55,829		$	60,784		$	(4,955	)	$	202,086		$	212,308	$	(10,222	)
Research and development		26,114			40,029			(13,915	)		82,798			131,662		(48,864	)
Marketing and sales		133,223			104,293			28,930			454,819			373,694		81,125
Total operating expenses	$	215,166		$	205,106		$	10,060		$	739,703		$	717,664	$	22,039

~~BACKLOG~~General and administrative: For the third quarter of 2023, general and administrative expenses decreased $4,955 to $55,829, due to decreased wages when compared with the same quarter of 2022. For the nine-month period ended September 30, 2023, general and administrative expenses decreased by $10,222, to $202,086, due to decreased payroll and increased services purchased. General and administrative expenses were 16.3% compared to 12.5% of sales revenue for the third quarter of 2023 and 2022 respectively and 16.4% compared to 15.4% of sales revenue for nine-month period ended September 30, 2023 and 2022 respectively.

AsResearch and ofdevelopment: ~~June~~Research 30and development expenses decreased $13,915 ~~2023~~to $26, 114 during the ~~Company~~third ~~had~~quarter aof ~~sales~~2023 ~~order~~due ~~backlog~~to decreased services purchased expenses when compared with the same quarter of ~~$109,844~~2022. ~~The~~For ~~Company’s~~the ~~customers~~nine-month ~~generally~~period, ~~place~~research ~~orders~~and ondevelopment anexpenses decreased ~~"as~~by ~~needed~~$48,864 ~~basis". Shipment~~to ~~for~~$82,798, ~~most~~due ofto ~~the~~decreased ~~Company’s~~services ~~products~~purchased. isResearch ~~generally~~and ~~made~~development ~~within~~expense 1was 7.6% compared to 58.2% ~~working~~of ~~days~~sales revenue ~~after~~for ~~receipt~~the third quarter of ~~customer~~2023 ~~orders,~~and ~~with the~~2022 ~~exception~~respectively and 6.7% compared to 9.6% of ~~ongoing,~~sales ~~scheduled~~revenue ~~projects~~for nine-month period ended September 30, 2023 and ~~custom~~2022 ~~designed equipment~~respectively.

~~COST~~Marketing and ~~OF SALES~~sales: During the third quarter of 2023, marketing and sales expenses increased $28,930 to $133,223 when compared with the same period of 2022, due to increased payroll, benefits expense, and travel. For the nine-month period, marketing and sales expenses increased by $81,125 to $454,819, due to increased payroll, benefits, and travel expenses. Marketing and sales expenses were 38.9% compared to 21.4% of sales revenue for the third quarter of 2023 and 2022 respectively and 36.9% compared to 27.3 % of sales revenue for the nine-month period ended September 30, 2023 2022 respectively.

~~Cost of sales percentages~~OTHER for the second quarters of 2023 and 2022 were 45.9% and 45.9% of respective net sales. Cost of sales percentages for the six-month periods ended June 30, 2023 and 2022 were 45.8% and 45.1%, respectively. The cost of sales percentage increase for the six month period ended June 3, 2023 is the result of the product mix sold during the same period of 2022.INCOME:

10The Company earned $8,375 in interest income during the quarter ended September 30, 2023 and $17,559 for the nine-month period. Sources of this income were money market accounts, certificates of deposit, and interest from the U.S. Treasury. The interest from the U.S. Treasury was for the delay in issuing the check for the tax credit.

~~OPERATING EXPENSES~~NET LOSS:

The Company ~~following~~had isa net loss of $42,505 for the third quarter of 2023 compared to net income of $73,371 for the same quarter of 2022. For the nine-month period ended September 30, 2023, the Company recorded a net loss of $75,759 compared with net income of $49,614 for the same ~~delineation~~period of 2022. The decrease in net income during 2023 is the result of increased operating expenses: and lower sales.

	Three Months Ended							Six Month Ended
	June 30, 2023		June 30, 2022		Increase (Decrease)			June 30, 2023		June 30, 2022		Increase (Decrease)
General and administrative	$	61,492	$	66,747	$	(5,255	)	$	146,257	$	151,522	$	(5,265	)
Research and development		28,021		45,856		(17,835	)		56,684		91,633		(34,949	)
Marketing and sales		173,368		132,242		41,126			321,595		269,401		52,194
Total operating expenses	$	262,881	$	244,845	$	18,036		$	524,536	$	512,556	$	11,980

~~General and administrative: For the second quarter of 2023, general and administrative expenses decreased $5,255 to $61,492, due to decreased wages when compared with the same quarter of 2022~~B. ~~For the six-month period ended June 30, 2023, general and administrative expenses decreased by $5,265,~~ FINANCIAL ~~to $146~~CONDITION,~~257,~~ ~~due~~LIQUIDITY toAND ~~decreased~~CAPITAL payroll and increased services purchased. General and administrative expenses were 10.5% compared to 16.0% of sales revenue for the second quarter of 2023 and 16.4% compared to 17.0% of sales revenue for six-month period ended June 30, 2023.RESOURCES

~~Research and development:~~The ~~Research~~Corporation's ~~and~~current ~~development~~asset ~~expenses decreased $17,835~~ to ~~$28,021~~current ~~during~~liabilities ~~the~~ratio ~~second~~at ~~quarter~~September of30, 2023 ~~due~~was to16.0 ~~decreased services purchased expenses when~~ compared ~~with~~to ~~the~~8.6 ~~same~~at ~~quarter~~December of31, 2022. ~~For~~The ~~the~~increase in ~~six-month~~current ~~period,~~ratio ~~research~~is ~~and development expenses decreased by $34,949 to $56,684,~~ due to ~~decreased~~the ~~services~~decrease ~~purchased.~~of ~~Research~~accounts payable and ~~development~~increase ~~expense~~in ~~was~~inventory ~~4.8%~~at ~~compared~~September to30, ~~11.0% of sales revenue for the second quarter of~~ 2023 ~~and~~as ~~6.4%~~ compared to ~~10.3%~~December ~~of sales revenue for six-month period ended June 30~~31, ~~2023~~ 2022.

~~Marketing and sales:~~At ~~During~~September ~~the~~30, ~~second quarter of~~ 2023, ~~marketing and sales expenses increased $41,126 to $173,368 when compared with~~ the ~~same~~Company ~~period of~~had ~~2022,~~cash ~~due to increased payroll, benefits expense,~~ and ~~travel.~~cash ~~For~~equivalents ~~the~~including ~~six-month~~certificates ~~period,~~of ~~marketing~~deposit ~~and~~of ~~sales expenses increased by~~ $52821,~~194~~493 toas ~~$321,595,~~compared ~~due~~ to ~~increased~~cash ~~payroll, benefits,~~ and ~~travel expenses. Marketing and sales expenses were 29.6% compared to 31.7%~~cash ofequivalent ~~sales revenue for the second quarter~~ of ~~2023 and 36.~~$1%,002,817 ~~compared~~at toDecember ~~30.3% of sales revenue for the six-month period ended June 30~~31, ~~2023~~ 2022.

~~OTHER~~Cash used ~~INCOME:~~from operating activities decreased by $74,096 for the nine-month period ended September 30, 2023 when compared to the same period in 2022. The decrease is attributable to a decrease in net income for the period being $125,373 less than the same period in 2022. The increase in the change in accounts receivable, accounts payable, and inventory balances contributed $41,572, $(61,611) and $(27,798) respectively.

~~The~~In management's opinion, the Company's ~~earned $5,181~~cash inand ~~interest~~cash ~~income~~equivalents ~~during~~and ~~the~~other ~~quarter~~working ~~ended~~capital ~~June~~at September 30, 2023 ~~and~~is ~~$9,183~~sufficient to satisfy requirements for ~~the~~operations, ~~six-month~~capital ~~period.~~expenditures, ~~Sources~~and ofother ~~this~~expenditures ~~income~~as ~~were~~may ~~money market~~arise ~~accounts~~during 2023 and ~~certificates~~into the first half of ~~deposit~~2024.

~~NET~~FORWARD LOOKING ~~LOSS~~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.

~~The Company had net income of $58,870 for the second quarter of 2023 compared to a net loss of $18,976 for the same quarter of 2022. For the six~~OFF-~~month period~~BALANCE ~~ended~~SHEET ~~June~~ARRANGEMENTS 30, 2023, the Company recorded a net loss of $33,254 compared with a net loss of $23,757 for the same period of 2022. The decrease in net income during 2023 is the result of increased operating expenses.

11The Company has no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to its stockholders.

~~B. FINANCIAL~~Item ~~CONDITION,~~1. ~~LIQUIDITY~~Controls ~~AND~~and ~~CAPITAL RESOURCES~~Procedures

~~The~~An evaluation ~~Corporation's~~has ~~current asset~~been toperformed ~~current~~under ~~liabilities~~the ~~ratio~~supervision atand ~~June~~with ~~30,~~the ~~2023~~participation ~~was~~of ~~9.9~~our ~~compared~~management, toincluding ~~8.6~~our atChief ~~December~~Executive ~~31,~~Officer and ~~2022.~~Principal ~~The~~Accounting ~~increase~~Officer, inof ~~current~~the ~~ratio~~effectiveness isof ~~due to~~the design and the ~~decrease~~operation of ~~accounts~~our ~~payable~~"disclosure controls and ~~increase~~procedures" (as such term is defined in ~~inventory~~Rules at13a-15(e) ~~June~~under the Securities Exchange Act of 1934) as of September 30, 2023. asBased ~~compared~~on tothat ~~December~~evaluation, our 31principal executive officer and our principal financial officer concluded that the design and operation of our disclosure controls and procedures were effective as of September 30, ~~2022~~2023.

AtThe design ~~June~~of ~~30,~~any ~~2023,~~system of controls is based in part upon certain assumptions about the ~~Company~~ ~~had~~likelihood ~~cash~~of future events, and ~~cash~~there ~~equivalents~~can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of ~~$782~~how remote. However,~~095~~ asmanagement ~~compared~~believes tothat ~~cash~~our system of disclosure controls and ~~cash~~procedures ~~equivalent~~are designed to provide a reasonable level of ~~$1,002,817~~assurance that atthe ~~December~~objectives ~~31,~~of ~~2022~~the system will be met.

~~Cash used from operating~~Changes ~~activities decreased by $130,326 for the six-month period ended June 30, 2023 when compared to the same period~~ in ~~2022.~~Internal ~~The~~Control ~~decrease is~~Over ~~attributable~~Financial to a decrease in net income for the period being $9,497 less than the same period in 2022. The increase in the change in accounts receivable and inventory balances contributed $43,309 and $87,843 respectively.Reporting

~~In management's opinion,~~There ~~the~~have ~~Company's~~not ~~cash~~been ~~and~~any ~~cash~~changes ~~equivalents~~in ~~and~~our ~~other~~internal ~~working~~control ~~capital~~over atfinancial ~~June~~reporting ~~30,~~(as ~~2023~~such term is ~~sufficient~~defined toin ~~satisfy~~Rules ~~requirements~~13a-15(e) ~~for~~and ~~operations,~~15d-15(e) ~~capital~~under ~~expenditures,~~the ~~and~~Exchange ~~other~~Act) ~~expenditures~~during asthe ~~may~~most ~~arise~~recent ~~during~~fiscal ~~2023~~quarter ~~and~~that ~~into~~have ~~the~~materially ~~first~~affected, ~~half~~or ofare ~~2024~~reasonably likely to materially affect, our internal control over financial reporting.

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. 11

~~OFF-BALANCE SHEET~~PART ~~ARRANGEMENTS~~II—OTHER INFORMATION

~~The Company has no~~Item ~~significant~~1. ~~off-balance~~Legal sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to its stockholders.Proceedings

~~Item 1~~None. ~~Controls and Procedures~~

~~An evaluation has been performed under the~~Item 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 June 30, 20232. ~~Based~~Unregistered onSales ~~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 June 30, 2023.~~Securities

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 remoteNone. ~~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~~Item 3. inDefaults ~~Internal~~Upon ~~Control~~Senior ~~Over Financial Reporting~~Securities

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 reportingNone.

~~Changes in Internal~~Item ~~Control~~4. ~~Over~~Mine ~~Financial~~Safety ~~Reporting~~Disclosures

~~There have not been~~Not 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.Applicable

12Item 5. Other Information

~~PART II—OTHER INFORMATION~~None.

~~Item 1. Legal Proceedings~~12

~~None~~Item 6. Exhibits

Item 2. Unregistered Sales of Securities

EXHIBIT NUMBER	DESCRIPTION
31.1	Section 302 Certification, CEO
31.2	Section 302 Certification, CFO
32.1	Section 906 Certification, CEO
32.2	Section 906 Certification, CFO
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

~~None.~~13

~~Item 3. Defaults Upon Senior Securities~~SIGNATURES

~~None~~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.

~~Item~~ELECTRONIC SYSTEMS 4.TECHNOLOGY, ~~Mine Safety Disclosures~~INC.

Not Applicable

	By: /s/ Daniel M. Tolley
Date: October 25, 2023	Name: Daniel M. Tolley
	Title: President
	(Principal Executive Officer)

Item 5. Other Information

	By: /s/ Michael W. Eller
Date: October 25, 2023	Name: Michael W. Eller
	Title: Vice President Administration
	(Principal Accounting Officer)

~~None.~~14

Item 6. Exhibits

EXHIBIT NUMBER	DESCRIPTION
31.1	Section 302 Certification, CEO
31.2	Section 302 Certification, CFO
32.1	Section 906 Certification, CEO
32.2	Section 906 Certification, CFO
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

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: July 27, 2023	Name: Daniel M. Tolley
	Title: President
	(Principal Executive Officer)

	By: /s/ Michael W. Eller
Date: July 27, 2023	Name: Michael W. Eller
	Title: Vice President Administration
	(Principal Accounting Officer)

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