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 September 30, 2022. 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 $487,160 for the third quarter
of 2022 as compared to $256,069 in the third quarter of 2021, reflecting an
increase of 90.2%. Management believes the increase in sales revenues is due to
the improvement of supply chain deliveries  of materials needed by our customers
to compete projects. Year to date total revenues from sales increased to
$1,376,195 in 2022 as compared to $1,137,848 in 2021, reflecting an increase of
20.9%. Management believes the increase in sales revenues is due the Company
increased inventory level and the ability to ship orders in a timely manner.



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 three- and nine-month periods ended September 30, 2022, and
2021 are as follows:



                                   Three Months      Three Months       Nine Months       Nine Months
                                       ended             ended             ended             ended
                                   September 30,     September 30,     September 30,     September 30,
                                       2022              2021              2022              2021
Domestic Sales                                86 %              89 %              90 %              90 %
Export Sales                                  14 %              11 %              10 %              10 %




BACKLOG:



As of September 30, 2022, the Company had a sales order backlog of $141,066. 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.





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COST OF SALES:




Cost of sales percentages for the third quarters of 2022 and 2021 were 43% and
60% of respective net sales. The cost of sales percentage decreased in the third
quarter of 2022 is the result of the product mix sold during the same quarter of
2021. Cost of sales percentages for the nine-month periods ended September 30,
2022 and 2021 were 44% and 48%. The cost of sales percentage increase in the
first nine-months of 2022 is the result of the product mix sold during the

same
period of 2021.



OPERATING EXPENSES:

The following is a delineation of operating expenses:





                                      Three Months Ended                              Nine Month Ended
                                   Sept. 30,      Sept. 30,          Increase     Sept. 30,      Sept. 30,          Increase
                                      2022           2021          (Decrease)        2022           2021          (Decrease)

General and administrative $ 60,784 $ 55,574 $ 5,210 $ 212,308 $ 215,528 $ (3,220 ) Research and development

               40,029         46,534

(6,505 ) 131,662 153,483 (21,821 ) Marketing and sales

                   104,293        122,960          (18,667 )      373,694        344,594           29,100
Total operating expenses           $  205,106     $  225,068     $    (19,962 )   $  717,664     $  713,605     $      4,059




General and administrative: For the third quarter of 2022, general and
administrative expenses increased $5,210 to $60,785, due to increased wages when
compared with the same quarter of 2022. For the nine-month period, general and
administrative expenses decreased by $3,220 to $212,308 due to decreased
professional services. General and administrative expenses were 12.5% of sales
revenue for the third quarter of 2022 compared to 21.7% in the same period 2021
and 15.4% of sales revenue for nine-month period ended September 30,
2022compared to 18.9% in the same period 2021.



Research and development: Research and development expenses decreased $6,505 to
$40,029 during the third quarter of 2022 due to decreased expenses related to
consulting services when compared with the same quarter of 2021. For the
nine-month period, research and development expenses decreased by $21,821 to
$131,662, due to decreased prototype build costs. Research and development
expenses were 8.2% of sales revenue for the third quarter of 2022 compared to
18.2% in the same period 2021 and 9.6% of sales revenue for nine-month period
ending September 30, 2022 compared to 13.5% in the same period 2021.



Marketing and sales: During the third quarter of 2022, marketing and sales
expenses decreased $18,668 to $104,293 when compared with the same period of
2021, due to decreased payroll. For the nine-month period, marketing and sales
expenses increased by $29,100 to $373,594, due to increased payroll. Marketing
and sales expenses were 21.4% of sales revenue for the third quarter of 2022
compared to 48.0% in the same period 2021 and 27.2% of sales revenue for
nine-month period ended September 30, 2022 compared to 30.3% in the same period
2021.



OTHER INCOME:



The Company earned $1,373 in interest income during the quarter ended September
30, 2022 and $2,459 for the nine-month period. Sources of this income were money
market accounts and certificates of deposit. During the quarter and nine-months
ended September 30, 2021, the Company recognized a gain on forgiveness of debt
in the amount of $130,555 and $280,373, respectively, for CARES Act loans.






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NET INCOME(LOSS):



The Company had net income of $73,731 for the third quarter of 2022 compared to
net income of $8,977 for the same quarter of 2021. For the nine-month period
ended September 30, 2022, the Company recorded net income of $49,614 compared
with net income of $160,029 for the same period of 2021. The increase in net
income during 2022 is the result of increased sales revenues and gross profit.



12







B.    FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES



The Corporation's current asset to current liabilities ratio at September 30,
2022 was 16.0 compared to 12.7 at December 31, 2021. The increase in current
ratio is due to the decrease of accounts payable at September 30, 2022 as
compared to December 31, 2021.

At September 30, 2022, the Company had cash and cash equivalents of $561,605 as compared to cash and cash equivalent of $655,616 at December 31, 2021.







Cash provided from operating activities decreased by $347,389 for the nine-month
period ended September 30, 2022 when compared to the same period in 2021. The
decrease is attributable to a decrease in net income for the period being
$110,415 lower than the same period in 2021. The reduction from the nine-month
period ended September 30, 2021 in the change in accounts receivable and
accounts payable balances contributed ($193,850) and ($103,830), respectively,
to the decrease.




Net cash used in investing was $250,583 due to the purchase and rollover of
certificates of deposits maturing during the nine months of 2022. Cash use from
financing activities was $5,968, which were payments paid on the CARES Act

loan
(round 1).




In management's opinion, the Company's cash and cash equivalents and other
working capital at September 30, 2022 is sufficient to satisfy requirements for
operations, capital expenditures, and other expenditures as may arise during
2022 and through 2023.



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.

OFF-BALANCE SHEET ARRANGEMENTS


The 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.

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