Micron Solutions (MICRD) 10-Q 12 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 10, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	MICRON SOLUTIONS INC /DE/
Entity Central Index Key	819,689
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		2,820,999

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 265,142	$ 380,381
Trade accounts receivable, net of allowance for doubtful accounts of $36,000 at March 31, 2017 and $30,000 at December 31, 2016	3,241,771	2,276,608
Inventories	3,353,283	3,060,085
Prepaid expenses and other current assets	577,146	614,362
Total current assets	7,437,342	6,331,436
Property, plant and equipment, net	6,528,482	6,440,911
Assets held for sale, net	688,750	688,750
Intangible assets, net	34,935	30,093
Other assets	135,345	156,231
Total assets	14,824,854	13,647,421
Current liabilities:
Revolving line of credit	2,610,795	1,785,795
Equipment line of credit	416,949	102,500
Term notes payable, current portion	478,144	487,468
Accounts payable	2,076,887	1,744,261
Accrued expenses and other current liabilities	434,847	333,361
Customer deposits	93,642	122,290
Deferred revenue, current	186,764	224,988
Total current liabilities	6,298,028	4,800,663
Long-term liabilities:
Term notes payable, non-current portion	1,860,208	1,970,863
Subordinated promissory notes	434,229	432,011
Deferred revenue, non-current portion	132,953	156,953
Total long-term liabilities	2,427,390	2,559,827
Total liabilities	8,725,418	7,360,490
Commitments and Contingencies
Shareholders' equity:
Preferred stock, $0.001 par value; 2,000,000 shares authorized, none issued
Common stock, $0.01 par value; 10,000,000 shares authorized; 3,926,491 issued, 2,820,999 outstanding at March 31, 2017 and 3,926,491 issued, 2,816,639 outstanding at December 31, 2016	39,265	39,265
Additional paid-in-capital	11,471,643	11,457,320
Treasury stock at cost, 1,105,492 shares at March 31, 2017 and 1,109,852 shares at December 31, 2016	(3,016,667)	(3,028,564)
Accumulated deficit	(2,394,805)	(2,181,090)
Total shareholders’ equity	6,099,436	6,286,931
Total liabilities and shareholders’ equity	$ 14,824,854	$ 13,647,421

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Condensed Consolidated Balance Sheets [Abstract]
Allowance for doubtful accounts receivable, current	$ 36,000	$ 30,000
Preferred stock, par value per share	$ 0.001	$ 0.001
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Common stock, par value per share	$ 0.01	$ 0.01
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	3,926,491	3,926,491
Common stock, shares outstanding	2,820,999	2,816,639
Treasury stock, shares	1,105,492	1,109,852

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Condensed Consolidated Statements of Operations [Abstract]
Net sales	$ 5,264,977	$ 4,983,281
Cost of sales	4,526,882	4,298,162
Gross profit	738,095	685,119
Selling and marketing	265,873	293,346
General and administrative	616,829	690,635
Research and development	29,296	25,843
Total operating expenses	911,998	1,009,824
Net loss from operations	(173,903)	(324,705)
Other expense:
Interest expense	(63,901)	(60,220)
Other income, net	24,089	777
Total other expense, net	(39,812)	(59,443)
Loss before income tax provision (benefit)	(213,715)	(384,148)
Income tax provision (benefit)
Net loss	$ (213,715)	$ (384,148)
Earnings (loss) per share - basic and diluted	$ (0.08)	$ (0.14)
Weighted average common shares outstanding - basic and diluted	2,818,819	2,816,144

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net loss	$ (213,715)	$ (384,148)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Gain on sale of property, plant and equipment	(12,315)
Depreciation and amortization	395,559	361,440
Non-cash interest expense	8,364	6,921
Changes in allowance for doubtful accounts	(6,000)
Share-based compensation expense	26,221	15,133
Changes in operating assets and liabilities:
Accounts receivable	(959,163)	(541,196)
Inventories	(293,198)	3,641
Prepaid expenses and other current assets	37,216	(23,400)
Other non-current assets	20,886	29,355
Accounts payable	332,626	118,143
Accrued expenses and other current liabilities	101,485	98,993
Customer deposits	(28,648)	266,255
Deferred revenue, current	(38,224)	(14,294)
Other non-current liabilities	(24,000)	8,097
Net cash provided by (used in) operating activities of continuing operations	(652,906)	(55,060)
Cash flows from investing activities:
Purchases of property, plant and equipment	(493,576)	(373,259)
Proceeds from sale of property, plant and equipment	23,200
Cash paid for patents and trademarks	(5,281)
Net cash provided by (used in) investing activities from continuing operations	(475,657)	(373,259)
Cash flows from financing activities:
Proceeds from (payments on) revolving line of credit, net	825,000	470,000
Proceeds from equipment line of credit	314,449
Payments on term notes payable	(126,125)	(144,823)
Proceeds from stock option exercises		51,150
Net cash provided by (used in) financing activities from continuing operations	1,013,324	376,327
Net increase (decrease) in cash and cash equivalents	(115,239)	(51,992)
Cash and cash equivalents, beginning of period	380,381	272,291
Cash and cash equivalents, end of period	265,142	220,299
Supplemental Cash Flow Information
Cash paid for interest	59,086	$ 55,579
Non-cash activities:
Issuance of Treasury Stock for Directors Fees	$ 11,250

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Basis of Presentation [Abstract]
Basis of Presentation	1. Ba sis of Presentation  The consolidated financial statements (the "financial statements") include the accounts of Micron Solutions , Inc. ® (“ Micron Solutions ”) and its subsidiary, Micron Products, Inc. ® ("Micron" and together with Micron Solutions , the “Company”). All intercompany balances and transactions have been eliminated in consolidation.  The unaudited interim condensed consolidated financial statements and related notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Accordingly, certain information and footnote disclosures normally included in complete financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been omitted pursuant to such rules and regulations. These financial statements and related notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on March 22, 2017 .  The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The Company's balance sheet at December 31, 2016 has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by GAAP for complete financial statements.  The information presented reflects, in the opinion of the management of the Company, all adjustments necessary for a fair presentation of the financial results for the interim periods presented. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.  Operating matters and liquidity  At March 31, 2017, the outstanding balance on the Company’s revolver under its credit facility was $2,610,795. The revolver has a maturity date of June 2017 (see Note 6). On May 9, 2017, the bank approved the renewal of the revolver for a one year term, expiring June 30, 2018 under substantially the same terms as the current revolver (see Note 10). While the Company has experienced net losses in seven of its last nine quarters, the Company believes that the renewal of the revolver, cash flows from its operations, together with its existing working capital, increased booked orders and other resources will be sufficient to fund operations at current levels and repay debt obligations over the next twelve months; however, there can be no assurance that the Company will be able to do so.  Assessment of going concern  The Company follows accounting standard ASU No. 2014-15, ―Presentation of Financial Statements - Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The new accounting standard requires management to evaluate whether there are conditions that give rise to substantial doubt as to the Company’s ability to continue as a going concern within one year from the date of issuance of these financial statements. Substantial doubt exists when conditions and events, considered in the aggregate, indicate that it is probable that a company will be unable to meet its obligations as they become due within one year after the financial statement issuance date. Management evaluations include identifying relevant conditions and events that were known and reasonably knowable as of the date these financial statements have been issued.  At December 31, 2016, the Company identified certain conditions and events which in the aggregate required management to perform an assessment of the Company’s ability to continue as a going concern. These conditions included the Company’s ability to renew the revolver which matures in June 2017 negative financial history and the Company’s limited liquidity to meet the working capital needs to support the Company’s operations. Similar conditions exist as of March 31, 2017.  Management’s assessment included an analysis of the Company’s financial forecasts. Management’s assessment also considered the Company’s history of meeting financial covenants and being able to renew and refinance its debt obligations. Based on the renewal of the Company’s revolver (see Note 10), cash forecasts, expected fulfillment of booked orders from existing customers, new customer prospects, and the closing on the sale of certain real estate held for sale, the Company expects to continue to meet its financial covenants and its obligations for the next year.

Earnings Per Share ("EPS")

Earnings Per Share ("EPS")	3 Months Ended
	Mar. 31, 2017
Earnings Per Share ("EPS") [Abstract]
Earnings Per Share ("EPS")	2. Earnings per Share ("EPS")  Basic earnings (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding. The computation of diluted earnings (loss) per share is similar to the computation of basic earnings (loss) per share except that the denominator is increased to include the average number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. In addition, the numerator is adjusted for any changes in net income (loss) that would result from the assumed conversions of those potential shares. For the three months ended March 31, 2017 and 2016 all shares are anti-dilutive. For this reason the EPS table has been removed.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2017
Inventories [Abstract]
Inventories	3. Inventories  Inventories consist of the following:      March 31, December 31,  2017 2016  Raw materials $ 1,055,210 $ 1,027,474  Work-in-process 726,121 537,858  Finished goods 1,571,952 1,494,753  Total $ 3,353,283 $ 3,060,085  Silver included in raw materials, work-in-process and finished goods inventory had an estimated cost of $600,092 and $521,746 as of March 31, 2017 and December 31, 2016 , respectively.

Property, Plant and Equipment,

Property, Plant and Equipment, net	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment, net [Abstract]
Property, Plant and Equipment, net	4. Property, Plant and Equipment, net  Property, plant and equipment, net consist of the following:      Asset Lives March 31, December 31,  (in years) 2017 2016  Machinery and equipment 3 to 15 $ 17,085,287 $ 16,647,302  Building and improvements 5 to 25 3,986,715 3,986,715  Vehicles 3 to 5 90,713 90,713  Furniture, fixtures, computers and software 3 to 5 1,508,342 1,504,776  Construction in progress 115,145 402,099  Total property, plant and equipment 22,786,202 22,631,605  Less: accumulated depreciation (16,257,720) (16,190,694)  Property, plant and equipment, net $ 6,528,482 $ 6,440,911  For the three months ended March 31, 2017 and 2016 , the Company recorded depreciation expense of $395,120 and $361,001 , respectively. I n January 2016, the Company entered into a Purchase and Sale Agreement ( Agreement) with a Buyer (collectively the “ Parties ”) to sell two unoccupied buildings, with approximately 52,000 square feet, and land, at its Fitchburg, Massachusetts campus.  In December 2016, the Parties entered into a First Amendment to the Purchase and Sale Agreement (the First Amendment) which extended the time to close to January 13, 2018 . As part of the consideration for extending the Agreement the Buyer agreed to pay certain extension fees. In January 2017, the Parties entered into a Second Amendment to the Purchase and Sale Agreement (the Second Amendment ) to further extend the time to close to July 2018. The Second Amendment permits the Buyer to assign the Agreement to a third party and extends the extension fees through July 2018 or the culmination of the agreement.  At March 31, 2017 and December 31, 2016, the real estate under agreement was classified as Assets Held for Sale valued at $688,750 . The carrying value approximated the fair value less the cost to sell.

Intangible Assets, net

Intangible Assets, net	3 Months Ended
	Mar. 31, 2017
Intangible Assets, net [Abstract]
Intangibles Assets, net	5. Intangible Assets, net  The Company assesses the impairment of long-lived assets and intangible assets with finite lives annually or whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable. For the three months ended March 31, 2017 and 2016, the Company did not impair any intangible assets.  Intangible assets consist of the following:      Estimated March 31, 2017 December 31, 2016  Useful Life Accumulated Accumulated  (in years) Gross Amortization Net Gross Amortization Net  Patents and trademarks 10 $ 26,290 $ 10,177 $ 16,113 $ 26,290 $ 9,738 $ 16,552  Patents and trademarks pending — 18,822 — 18,822 13,541 — 13,541  Total intangible assets $ 45,112 $ 10,177 $ 34,935 $ 39,831 $ 9,738 $ 30,093  For the three months ended March 31, 2017 and 2016 , the Company recorded amortization expense of $439 .

Debt

Debt	3 Months Ended
	Mar. 31, 2017
Debt [Abstract]
Debt	6. Debt  The following table sets forth the items which comprise debt for the Company:     March 31, December 31,  2017 2016  Revolving line of credit $ 2,610,795 $ 1,785,795  Equipment line of credit $ 416,949 $ 102,500  Subordinated promissory notes $ 434,229 $ 432,011   Term notes payable:  Commercial term loan $ 2,293,498 $ 2,398,870  Equipment notes 44,854 59,461  Total term notes payable $ 2,338,352 $ 2,458,331   Total Debt $ 5,800,325 $ 4,778,637    Bank Debt  The Company has a multi-year credit facility with a Massachusetts based bank. T his credit facili ty consists of a revolving line of credit (the "revolver"), a commercial term loan and an equipment line of credit. The debt is secured by substantially all assets of the Company with the exception of real property.  Revolver  The revolver provides for borrowings up to 80% of eligible accounts receivable and 50% of eligible raw materials inventory. The interest rate on the revolver is calculated at the bank's prime rate plus 0.25% ( 3.75% at March 31, 2017 ). The revolver has a maturity date of June 2017 . Amounts available to borrow under the revolver are $848,719 at March 31, 2017.  On May 9, 2017, the Company’s bank approved the renewal of the Company’s revolver for a one year term, expiring June 30, 2018, under substantially the same terms as the current revolver, subject to certain closing requirements. The Company expects to close on the renewal prior to the end of June 2017.  Commercial term loan  In November 2016, the Company refinanced its bank term debt, including the commercial term loan and three equipment term loans, along with $500,000 from the revolver, into a new $2,481,943 consolidated five year commercial term loan with a maturity date in November 2021. The interest rate on the loan is a fixed 4.65% per annum and the loan requires monthly payments of principal and interest of approximately $46,500 .  Equipment line of credit  In November 2016, the Company entered into an equipment line of credit that allows for advances of up to $1.0 million under the Company's multi-year credit facility. The term of this equipment line of credit is six years, maturing in November 2022, inclusive of a maximum one -year draw period. Repayment shall consist of monthly interest only payments, equal to the bank's prime rate plus 0.25% as to each advance commencing on the date of the loan through the earlier of: (i) one year from the date of the loan or (ii) the date upon which the equipment line of credit is fully advanced (the “Conversion Date”). On the Conversion Date, principal and interest payments will be due and payable monthly in an amount sufficient to pay the loan in full based upon an amortization schedule commensurate with the remaining term of the loan.  At March 31, 2017, $416,949 has been drawn on the equipment line of credit. At December 31, 2016, $102,500 had been drawn on the equipment line of credit.  Debt issuance costs  The amount of the commercial term loan presented in the table above is net of debt issuance costs of $ 39,712 and $ 45,858 at March 31, 2017 and December 31, 2016 respectively.  Bank covenants  The bank facility contains both financial and non-financial covenants. The financial covenants include maintaining certain debt coverage and leverage ratios. The non-financial covenants relate to various matters including notice prior to executing further borrowings and security interests, mergers or consolidations, acquisitions, guarantees, sales of assets other than in the normal course of business, leasing, changes in ownership and payment of dividends. The Company was in compliance with all bank covenants as of March 31, 2017.  Other Debt  Equipment notes  In January 2013, the Company entered into two equipment notes totaling $272,500 with a financing company to acquire production equipment. The notes bear interest at the fixed rate of 4.66% and require monthly payments of principal and interest of approximately $5,000 over a five year term maturing in January 2018.  Subordinated promissory notes  In December 2013, the Company completed a private offering in which the Company sold an aggregate of $500,000 in subordinated promissory notes. The unsecured notes required quarterly interest-only payments at a rate of 10% per annum for the first two years. In December 2015, the interest rate increased to 12% per annum. The Company’s two largest beneficial owners of stock and a director participated in the private offering as follows: REF Securities, LLP, beneficial owner of approximately 13% of the Company’s common stock, invested $100,000 in the offering; the Chambers Medical Foundation (the “Foundation”), beneficial owner of approximately 10% of the Company’s common stock, invested $100,000 in the offering; and Mr. E.P. Marinos, a director, invested $50,000 in the offering. The Company’s Chairman of the Board is a co-trustee of the Foundation but has held no dispositive powers since his appointment as such. In October 2016, the Company and six of the seven investors in the private offering, aggregating $450,000 of the notes, including the three related parties holding $250,000 of the notes, agreed to extend the maturity dates of the notes to December 31, 2018 at a rate of 10% per annum. One investor did not extend the maturity date and that $50,000 note was paid at maturity in December 2016. The notes are subordinated to all indebtedness of the Company pursuant to its multi-year bank credit facility.  In connection with the subordinated promissory notes, the Company issued 100,000 warrants to purchase the Company's common stock, including 20,000 warrants to REF Securities, LLP, 20,000 warrants to the Foundation and 10,000 warrants to Mr. Marinos. The warrants were exercisable through December 2016 at an exercise price of $3.51 per share. In 2014, 30,000 warrants were exercised, including 20,000 by the Foundation. No warrants were exercised in 2015 or 2016. In October 2016, in connection with the extension of the maturity dates of the subordinated promissory notes, the expiration date of the remaining 70,000 warrants was extended to December 31, 2018. The exercise price remained unchanged at $3.51 per share. The 70,000 warrants remain unexercised at March 31, 2017.  In the fourth quarter of 2016, the Company calculated the incremental fair value of extending the expiration date of the Notes and Warrants and determined that the amendment represented a debt modification in accordance with the guidance outlined in ASC-470, “Debt”. Using the Black-Scholes model, and the 10% test, the Company determined that the incremental fair value of the warrants to be $18,310 which was recorded as a reduction against the Notes and an increase in Additional Paid-in Capital.  The discount on the notes is being recognized as non-cash interest expense over the term of the notes. The Company recorded $2,218 and $6,921 for three months ended March 31, 2017 and 2016 of non-cash interest expense related to the amortization of the discount. The unamortized discount which is net against the outstanding balance of the subordinated promissory notes is $15,771 at March 31, 2017 and $17,989 at December 31, 2016 .

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2017
Income Taxes [Abstract]
Income Taxes	7. Income Taxes  No provision for income taxes has been recorded in the three months ended March 31, 2017 or 2016, respectively. The Company has a full valuation allowance against its deferred tax assets as of March 31, 2017 and December 31, 2016.  At March 31, 2017 t he Company has federal and state net operating loss carryforwards totaling $9,124,000 and $10,780,000 , respectively, which begin to expi re in 2030. The Company also has federal and state tax credit carryovers of $30 5 , 8 00 and $188,000 respectively. The federal and state tax credits begin to expire in 20 26 and 2027 , respectively. 

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies [Abstract]
Commitments and Contingencies	8. Commitments and Contingencies  Legal matters  In the ordinary course of its business, the Company is involved in various legal proceedings involving a variety of matters. The Company does not believe there are any pending legal proceedings that will have a material impact on the Company’s financial position or results of operations.  Off-balance sheet arrangements  In the second quarter of 2016 the Company consolidated its operating leases. Lease expense under all operating leases was approximately $7,230 and $3,322 for the three months ended March 31, 2017 and 201 6 , respectively. 

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2017
Shareholders' Equity [Abstract]
Shareholders' Equity	9. Shareholders’ Equity  Stock o ptions and share-based incentive plan  The following table sets forth the stock option transactions for the three months ended March 31, 2017 :      Weighted  Weighted average  Average remaining Aggregate  Number of Exercise contractual Intrinsic  options Price term (in years) Value  Outstanding at December 31, 2016 214,500 $ 5.96 7.12 $ 17,340  Granted — —  Exercised — —  Forfeited — —  Expired — —  Outstanding at March 31, 2017 214,500 $ 5.96 6.87 $ 30,470  Exercisable at March 31, 2017 115,495 $ 6.92 5.37 $ 14,280  Exercisable at December 31, 2016 109,495 $ 6.90 5.47 $ 8,880  For the three months ended March 31, 2017 and 2016 , share-based compensation expense related to stock options amounted to $14,971 and $15,133 , respectively, and is included in general and administrative expenses.  For the three months ended March 31, 2017 , no options were granted, exercised, forfeited or expired.  For the three months ended March 31, 2016 , no options were granted, forfeited or expired . For the three months ended March 31, 2016 , 1 5,000 options were exercised generating proceeds of $ 51,150 .  Warrants  For the three months ended March 31, 2017 and 2016 , there were no warrants exercised. As of March 31, 2017 , 70,000 warrants remain unexercised including 20,000 by the Company’s largest beneficial owner, REF Securities, LLP, and 10,000 by Mr. E. P. Marino, a director of the Company . The warrants expire in December 2018.  Common Stock  For the three months ended March 31, 2017, the Company granted 4,360 shares of the Company’s common stock with a fair value of $11,250 for director fess in lieu of cash payments. For the three months ended March 31, 2016 there were no such stock grants.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	10. Subsequent Events  Bank debt  In May 2017, the Company’s bank approved the renewal of the Company’s revolving line of credit for a one year term, maturing in June 2018, under substantially the same terms as the current revolver, subject to the Company meeting certain closing requirements. The Company expects to receive a commitment letter from the bank in May 2017 and expects to close on the renewal in June 2017.

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2017
Inventories [Abstract]
Inventories	   March 31, December 31,  2017 2016  Raw materials $ 1,055,210 $ 1,027,474  Work-in-process 726,121 537,858  Finished goods 1,571,952 1,494,753  Total $ 3,353,283 $ 3,060,085 

Property, Plant and Equipment17

Property, Plant and Equipment, net (Tables)	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment, net [Abstract]
Property, Plant and Equipment, net	   Asset Lives March 31, December 31,  (in years) 2017 2016  Machinery and equipment 3 to 15 $ 17,085,287 $ 16,647,302  Building and improvements 5 to 25 3,986,715 3,986,715  Vehicles 3 to 5 90,713 90,713  Furniture, fixtures, computers and software 3 to 5 1,508,342 1,504,776  Construction in progress 115,145 402,099  Total property, plant and equipment 22,786,202 22,631,605  Less: accumulated depreciation (16,257,720) (16,190,694)  Property, plant and equipment, net $ 6,528,482 $ 6,440,911 

Intangible Assets, net (Tables)

Intangible Assets, net (Tables)	3 Months Ended
	Mar. 31, 2017
Intangible Assets, net [Abstract]
Intangibles Assets	   Estimated March 31, 2017 December 31, 2016  Useful Life Accumulated Accumulated  (in years) Gross Amortization Net Gross Amortization Net  Patents and trademarks 10 $ 26,290 $ 10,177 $ 16,113 $ 26,290 $ 9,738 $ 16,552  Patents and trademarks pending — 18,822 — 18,822 13,541 — 13,541  Total intangible assets $ 45,112 $ 10,177 $ 34,935 $ 39,831 $ 9,738 $ 30,093 

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2017
Debt [Abstract]
Summary of Debt	   March 31, December 31,  2017 2016  Revolving line of credit $ 2,610,795 $ 1,785,795  Equipment line of credit $ 416,949 $ 102,500  Subordinated promissory notes $ 434,229 $ 432,011   Term notes payable:  Commercial term loan $ 2,293,498 $ 2,398,870  Equipment notes 44,854 59,461  Total term notes payable $ 2,338,352 $ 2,458,331   Total Debt $ 5,800,325 $ 4,778,637 

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2017
Shareholders' Equity [Abstract]
Stock Option Transactions	   Weighted  Weighted average  Average remaining Aggregate  Number of Exercise contractual Intrinsic  options Price term (in years) Value  Outstanding at December 31, 2016 214,500 $ 5.96 7.12 $ 17,340  Granted — —  Exercised — —  Forfeited — —  Expired — —  Outstanding at March 31, 2017 214,500 $ 5.96 6.87 $ 30,470  Exercisable at March 31, 2017 115,495 $ 6.92 5.37 $ 14,280  Exercisable at December 31, 2016 109,495 $ 6.90 5.47 $ 8,880 

Basis of Presentation (Details)

Basis of Presentation (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Revolving line of credit	$ 2,610,795	$ 1,785,795
Revolving Credit Facility [Member]
Debt instrument, renewal period	1 year

Inventories (Details)

Inventories (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Inventories [Abstract]
Raw materials	$ 1,055,210	$ 1,027,474
Work-in-process	726,121	537,858
Finished goods	1,571,952	1,494,753
Total	3,353,283	3,060,085
Silver inventory	$ 600,092	$ 521,746

Property, Plant and Equipment23

Property, Plant and Equipment, net (Narrative) (Details)	1 Months Ended	3 Months Ended
	Jan. 31, 2016ft²item	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Property, Plant and Equipment, net [Abstract]
Depreciation expense		$ 395,120	$ 361,001
Number of unoccupied buildings with letter of intent to sale | item	2
Area of building | ft²	52,000
Assets held for sale, net		$ 688,750		$ 688,750

Property, Plant and Equipment24

Property, Plant and Equipment, net (Property, Plant and Equipment, net) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment
Total property, plant and equipment	$ 22,786,202	$ 22,631,605
Less: accumulated depreciation	(16,257,720)	(16,190,694)
Property, plant and equipment, net	6,528,482	6,440,911
Machinery and Equipment [Member]
Property, Plant and Equipment
Total property, plant and equipment	17,085,287	16,647,302
Building and improvements, maximum
Property, Plant and Equipment
Total property, plant and equipment	3,986,715	3,986,715
Vehicles, maximum
Property, Plant and Equipment
Total property, plant and equipment	90,713	90,713
Furniture, fixtures, computers and software, maximum
Property, Plant and Equipment
Total property, plant and equipment	1,508,342	1,504,776
Construction in Progress [Member]
Property, Plant and Equipment
Total property, plant and equipment	$ 115,145	$ 402,099
Maximum asset life (years) | Machinery and Equipment [Member]
Property, Plant and Equipment
Asset Lives (in years)	15 years
Maximum asset life (years) | Building and improvements, maximum
Property, Plant and Equipment
Asset Lives (in years)	25 years
Maximum asset life (years) | Vehicles, maximum
Property, Plant and Equipment
Asset Lives (in years)	5 years
Maximum asset life (years) | Furniture, fixtures, computers and software, maximum
Property, Plant and Equipment
Asset Lives (in years)	5 years
Minimum asset life (years) | Machinery and Equipment [Member]
Property, Plant and Equipment
Asset Lives (in years)	3 years
Minimum asset life (years) | Building and improvements, maximum
Property, Plant and Equipment
Asset Lives (in years)	5 years
Minimum asset life (years) | Vehicles, maximum
Property, Plant and Equipment
Asset Lives (in years)	3 years
Minimum asset life (years) | Furniture, fixtures, computers and software, maximum
Property, Plant and Equipment
Asset Lives (in years)	3 years

Intangible Assets, net (Narrati

Intangible Assets, net (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Intangible Assets, net [Abstract]
Amortization expense	$ 439	$ 439

Intangible Assets, net (Intangi

Intangible Assets, net (Intangible Assets) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Intangible Assets [Line Items]
Gross	$ 45,112	$ 39,831
Accumulated Amortization	10,177	9,738
Net	$ 34,935	30,093
Patents and Trademarks [Member]
Intangible Assets [Line Items]
Estimated Useful Life (in years)	10 years
Gross	$ 26,290	26,290
Accumulated Amortization	10,177	9,738
Net	16,113	16,552
Patents and Trademarks Pending
Intangible Assets [Line Items]
Gross	18,822	13,541
Net	$ 18,822	$ 13,541

Debt (Bank Debt Narrative) (Det

Debt (Bank Debt Narrative) (Details)	1 Months Ended	3 Months Ended
	Nov. 30, 2016USD ($)item	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Outstanding balance, line of credit		$ 2,610,795	$ 1,785,795
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Amount refinanced into new debt instrument	$ 500,000
Percent borrowable of net eligible receivable		80.00%
Percent Borrowable of net Eligible Raw Materials Inventory		50.00%
Revolver, interest rate at end of period		3.75%
Amount available under line of credit facility		$ 848,719
Debt instrument, renewal period		1 year
Revolving Credit Facility [Member] | Prime Rate [Member]
Debt Instrument [Line Items]
Spread on variable rate		0.25%
Equipment Line of Credit [Member]
Debt Instrument [Line Items]
Number of debt instruments converted during period | item	3
Commercial Term Loan [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate	4.65%
Debt maturity period		5 years
Approximate monthly principal and interest payment	$ 46,500
Debt instrument, face amount	2,481,943
Debt issuance costs		$ 39,712	45,858
Equipment Term Loan 2016 [Member] | Equipment Line of Credit [Member]
Debt Instrument [Line Items]
Line of credit, draw period		1 year
Maximum borrowing capacity	$ 1,000,000
Outstanding balance, line of credit		$ 416,949	$ 102,500
Line of credit, maturity period		6 years
Earliest repayment period, from date of loan		1 year
Equipment Term Loan 2016 [Member] | Equipment Line of Credit [Member] | Prime Rate [Member]
Debt Instrument [Line Items]
Spread on variable rate		0.25%

Debt (Other Debt Narrative) (De

Debt (Other Debt Narrative) (Details)	1 Months Ended		3 Months Ended		12 Months Ended
	Dec. 31, 2016USD ($)item$ / shares	Oct. 31, 2016USD ($)item	Mar. 31, 2017USD ($)itemshares	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2015shares	Dec. 31, 2014shares	Dec. 31, 2013USD ($)	Jan. 31, 2013USD ($)
Debt Instruments [Line Items]
Number of warrants issued | shares			100,000
Issuance of common stock from treasury, shares | shares					0	0
Warrants unexercised | shares			70,000
Non-cash interest expense			$ 2,218	$ 6,921
Subordinated promissory notes, exercise price of warrants | $ / shares	$ 3.51				$ 3.51
REF Securities, LLP [Member]
Debt Instruments [Line Items]
Number of warrants issued | shares			20,000
Warrants unexercised | shares			20,000
Chambers Medical Foundation [Member]
Debt Instruments [Line Items]
Number of warrants issued | shares			20,000
Issuance of common stock from treasury, shares | shares							20,000
E.P. Marinos [Member]
Debt Instruments [Line Items]
Number of warrants issued | shares			10,000
Warrants unexercised | shares			10,000
Warrants
Debt Instruments [Line Items]
Issuance of common stock from treasury, shares | shares							30,000
Term Debt And Equipment Notes [Member] | Equipment Term Loans [Member]
Debt Instruments [Line Items]
Number of equipment notes | item			2
Debt instrument, face amount									$ 272,500
Debt instrument, interest rate			4.66%
Approximate monthly principal and interest payment			$ 5,000
Equipment notes, maturity period			5 years
Subordinated Debt [Member]
Debt Instruments [Line Items]
Debt instrument, face amount		$ 450,000						$ 500,000
Debt instrument, maturity date			Dec. 31, 2018
Interest rate			10.00%			12.00%		10.00%
Period for first interest rate of debt instrument			2 years
Payment on subordinated debt	$ 50,000
Number of investors in the private offering | item		7
Number of investors, maturity date extended | item		6
Number of investors, maturity date not extended | item	1
Debt, fair value			$ 18,310
Number of largest beneficial owners | item			2
Unamortized discount	$ 17,989		$ 15,771		$ 17,989
Subordinated Debt [Member] | REF Securities, LLP [Member]
Debt Instruments [Line Items]
Percent of beneficial owner of company's common stock			13.00%
Invested amount in private offering			$ 100,000
Subordinated Debt [Member] | Chambers Medical Foundation [Member]
Debt Instruments [Line Items]
Percent of beneficial owner of company's common stock			10.00%
Invested amount in private offering			$ 100,000
Subordinated Debt [Member] | E.P. Marinos [Member]
Debt Instruments [Line Items]
Invested amount in private offering			$ 50,000
Subordinated Debt [Member] | Three Related Parties [Member]
Debt Instruments [Line Items]
Debt instrument, face amount		$ 250,000

Debt (Summary of Debt) (Details

Debt (Summary of Debt) (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Revolving line of credit	$ 2,610,795	$ 1,785,795
Equipment line of credit	416,949	102,500
Subordinated promissory notes	434,229	432,011
Total term notes payable	2,338,352	2,458,331
Total Debt	5,800,325	4,778,637
Term Debt And Equipment Notes [Member] | Commercial Term Loan [Member]
Debt Instrument [Line Items]
Total term notes payable	2,293,498	2,398,870
Term Debt And Equipment Notes [Member] | EQUIPMENT NOTES
Debt Instrument [Line Items]
Total term notes payable	$ 44,854	$ 59,461

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Taxes [Line Items]
Income tax provision (benefit)
Federal Tax Authority [Member]
Income Taxes [Line Items]
Tax credit carryforwards	305,800
State Jurisdiction [Member]
Income Taxes [Line Items]
Tax credit carryforwards	188,000
Federal Tax Authority [Member]
Income Taxes [Line Items]
Net operating loss carryforwards	9,124,000
State Jurisdiction [Member]
Income Taxes [Line Items]
Net operating loss carryforwards	$ 10,780,000

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Commitments and Contingencies [Abstract]
Operating lease expense, office equipment	$ 7,230	$ 3,322

Shareholders' Equity (Narrative

Shareholders' Equity (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options, granted in period		0
Number of options, expired in period	0	0
Number of options, forfeited in period	0	0
Number of options, exercised in period		15,000
Proceeds from stock options exercises		$ 51,150
Warrants exercised	0	0
Warrants unexercised	70,000
Common stock granted, shares	4,360	0
Common stock granted, values	$ 11,250
REF Securities, LLP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants unexercised	20,000
E.P. Marinos [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants unexercised	10,000
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 14,971	$ 15,133

Shareholders' Equity (Stock Opt

Shareholders' Equity (Stock Option Transactions) (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Shareholders' Equity [Abstract]
Number of options, outstanding, beginning balance	214,500
Weighted average exercise price, options outstanding	$ 5.96		$ 5.96
Weighted average remaining contractual term (in years), options outstanding	6 years 10 months 13 days		7 years 1 month 13 days
Aggregate intrinsic value, options outstanding	$ 30,470		$ 17,340
Number of options, granted in period		0
Weighted average exercise price, options granted in period
Number of options, exercised in period		(15,000)
Weighted average exercise price, options exercised in period
Number of options, forfeited in period	0	0
Weighted average exercise price, options forfeited in period
Number of options, expired in period	0	0
Weighted average exercise price, options expired in period
Number of options, outstanding, ending balance	214,500		214,500
Number of options, exercisable	115,495		109,495
Weighted average exercise price, options exercisable	$ 6.92		$ 6.90
Weighted average remaining contractual term (in years), options exercisable	5 years 4 months 13 days		5 years 5 months 19 days
Aggregate intrinsic value, options exercisable	$ 14,280		$ 8,880