Reflect Scientific, Inc. Announces Strategic Cost-Cutting Initiative to Reduce SG&A Expenses by Up to 35% in 2025

Rhea-AI Summary

Reflect Scientific (RSCF) has announced a major cost-cutting initiative aimed at reducing SG&A expenses by up to 35% in 2025. The strategy focuses on three key areas: AI integration across business functions, expanded contract manufacturing partnerships, and operational streamlining. The company plans to implement AI solutions in customer service, inventory management, and administrative processes. Initial benefits are expected in Q2 2025, with the savings being redirected toward core R&D activities. Reflect Scientific, based in Orem, Utah, specializes in cryogenic cooling technologies for biotechnology, pharmaceutical, medical, and transportation markets.

Positive

• Projected 35% reduction in SG&A expenses through AI implementation and operational optimization
• Strategic expansion of contract manufacturing relationships to reduce overhead costs
• Planned reinvestment of savings into core R&D activities
• Initial benefits expected as early as Q2 2025

Negative

• Significant organizational restructuring may cause temporary operational disruptions
• Heavy reliance on contract manufacturers could impact quality control
• Implementation costs and risks associated with AI integration

OREM, Utah, May 27, 2025 (GLOBE NEWSWIRE) -- Reflect Scientific, Inc. (Symbol: RSCF), a leading innovator in cryogenic cooling technologies, today announced a comprehensive initiative to reduce Selling, General & Administrative (SG&A) expenses by up to 35% in the fiscal year 2025. This strategic move will be driven by integrating artificial intelligence solutions across business operations and expanding the Company's contract manufacturing relationships.

"By leveraging cutting-edge AI technology and optimizing our manufacturing partnerships, we expect to significantly streamline our operational costs while maintaining the high-quality products and services our customers rely on," said Mr. Kim Boyce, Chief Executive Officer of Reflect Scientific. "This initiative represents a pivotal step in our ongoing commitment to enhance shareholder value and strengthen our competitive position in the market."

Key Components of the Cost Reduction Strategy:

• AI Integration: Implementation of artificial intelligence solutions across multiple business functions, including customer service, inventory management, and administrative processes
• Expanded Contract Manufacturing: Strategic partnerships with additional contract manufacturers to optimize production efficiency and reduce overhead costs
• Operational Streamlining: Reorganization of internal processes to eliminate redundancies and improve workflow efficiency
  

The Company anticipates that these measures will result in annual SG&A savings of up to 35% compared to 2024 levels, with initial benefits expected to be realized in the second quarter of 2025.

This cost-cutting initiative will allow the Company to redirect resources toward core research and development activities. The changes are expected to improve the bottom line and enable Reflect Scientific to serve customers better through continued innovation in cryogenic technologies.

About Reflect Scientific, Inc.

Reflect Scientific, Inc., based in Orem, Utah, develops and markets innovative, proprietary technologies in cryogenic cooling for the biotechnology, pharmaceutical, medical, and transportation markets. Among Reflect Scientific's products are low-temperature freezers and refrigerated systems for laboratory, transportation, and computer server room uses. Visit reflectscientific.com for more information. See us on Twitter @ReflectSci and LinkedIn www.linkedin.com/company/reflect-scientific.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this press release. This press release should be considered in light of the disclosures contained in the filings of the Company that are contained in the OTC Markets Group, LLC under the trading symbol "RSCF" and related prior filings by the Company that are referenced therein and contained in the EDGAR Archives of the Securities and Exchange Commission under the heading "Disclosure," including those identified in such filings as "forward-looking statements."

Contact
Investor Relations
801-607-1039
info@reflectscientific.com

FAQ

What is RSCF's target for cost reduction in 2025?

Reflect Scientific aims to reduce Selling, General & Administrative (SG&A) expenses by up to 35% in fiscal year 2025.

How will Reflect Scientific (RSCF) achieve its cost-cutting goals?

The company will implement AI solutions across business functions, expand contract manufacturing partnerships, and streamline operational processes.

When will RSCF start seeing benefits from the cost-cutting initiative?

Initial benefits are expected to be realized in the second quarter of 2025.

What will Reflect Scientific do with the cost savings?

The company plans to redirect the savings toward core research and development activities.

Which areas will implement AI integration at Reflect Scientific?

AI will be integrated into customer service, inventory management, and administrative processes.