SCI Engineered Materials (SCIA) 10-K 5 Feb 20 2019 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2019	Jan. 31, 2020	Jun. 30, 2019
Document And Entity Information
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Registrant Name	SCI ENGINEERED MATERIALS, INC.
Entity Central Index Key	0000830616
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Public Float			$ 8,654,489
Trading Symbol	SCIA
Entity Common Stock, Shares Outstanding		4,370,519
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Small Business	true

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Current Assets
Cash	$ 1,828,397	$ 1,802,839
Accounts receivable Trade, less allowance for doubtful accounts of $15,000	346,381	477,779
Other	2,143	153
Inventories, net	2,749,038	2,752,845
Prepaid expenses	105,464	613,425
Total current assets	5,031,423	5,647,041
Property and Equipment, at cost
Machinery and equipment	8,258,578	8,017,850
Furniture and fixtures	137,680	127,610
Leasehold improvements	592,899	360,225
Construction in progress		138,067
Property, Plant and Equipment, Gross	8,989,157	8,643,752
Less accumulated depreciation and amortization	(7,036,955)	(6,720,847)
Property, Plant and Equipment, Net	1,952,202	1,922,905
Right of use asset, net	434,492
Other assets	86,958	75,613
Total other assets	521,450	75,613
TOTAL ASSETS	7,505,075	7,645,559
Current Liabilities
Finance lease obligations, current portion	98,524	114,853
Operating lease obligations, current portion	80,669
Accounts payable	254,004	321,348
Customer deposits	2,408,837	3,202,447
Accrued compensation	116,686	211,227
Accrued expenses and other	80,375	125,130
Total current liabilities	3,039,095	3,975,005
Finance lease obligations, net of current portion	125,311	147,878
Operating lease obligations, net of current portion	391,833
Total liabilities	3,556,239	4,122,883
Shareholders' Equity
Convertible preferred stock, Series B, 10% cumulative, nonvoting, no par value, $10 stated value, optional redemption at 103%; optional shareholder conversion 2 shares for 1; 24,152 shares issued and outstanding	514,438	514,438
Common stock, no par value, authorized 15,000,000 shares; 4,370,519 and 4,277,731 shares issued and outstanding, respectively	10,410,677	10,275,733
Additional paid-in capital	2,265,925	2,280,060
Accumulated deficit	(9,242,204)	(9,547,555)
Total shareholders' equity	3,948,836	3,522,676
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 7,505,075	$ 7,645,559

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Allowance for doubtful accounts (in dollars)	$ 15,000	$ 15,000
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	4,370,519	4,277,731
Common stock, shares outstanding	4,370,519	4,277,731
Convertible Preferred Stock Series B [Member]
Convertible preferred stock, series B, cumulative percentage of interest	10.00%	10.00%
Convertible preferred stock, par value (in dollars per share)	$ 0	$ 0
Convertible preferred stock, stated value (in dollars per share)	$ 10	$ 10
Convertible preferred stock, optional redemption	103.00%	103.00%
Convertible preferred stock, optional shareholder conversion	2:1	2:1
Convertible preferred stock, shares issued	24,152	24,152
Convertible preferred stock, shares outstanding	24,152	24,152

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
Total revenue	$ 12,950,387	$ 11,361,575
Total cost of revenue	10,741,824	8,456,799
Gross profit	2,208,563	2,904,776
General and administrative expense	1,261,958	1,256,778
Research and development expense	366,492	351,999
Marketing and sales expense	249,255	361,132
Income from operations	330,858	934,867
Interest expense	(22,468)	(9,356)
Income before income taxes	308,390	925,511
Income taxes	3,039	17,642
Net income	305,351	907,869
Dividends on preferred stock	24,152	24,152
INCOME APPLICABLE TO COMMON STOCK	$ 281,199	$ 883,717
Income per common share
Basic	$ 0.06	$ 0.21
Diluted	$ 0.06	$ 0.21
Weighted average shares outstanding
Basic	4,328,210	4,223,865
Diluted	4,362,327	4,257,131

STATEMENTS OF SHAREHOLDERS' EQU

STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)	Convertible Preferred Stock Series B [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2017	$ 514,438	$ 10,131,307	$ 2,289,474	$ (10,455,424)	$ 2,479,795
Accretion of cumulative dividends	24,152		(24,152)
Stock based compensation expense (Note 2I)			14,738		14,738
Proceeds from exercise of stock options		9,765			9,765
Payment of cumulative dividends (Note 7)	(24,152)				(24,152)
Common stock issued (Note 7)		134,661			134,661
Net income				907,869	907,869
Balance at Dec. 31, 2018	514,438	10,275,733	2,280,060	(9,547,555)	3,522,676
Accretion of cumulative dividends	24,152		(24,152)
Stock based compensation expense (Note 2I)			10,017		10,017
Proceeds from exercise of stock options		14,952			14,952
Payment of cumulative dividends (Note 7)	(24,152)				(24,152)
Common stock issued (Note 7)		119,992			119,992
Net income				305,351	305,351
Balance at Dec. 31, 2019	$ 514,438	$ 10,410,677	$ 2,265,925	$ (9,242,204)	$ 3,948,836

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 305,351	$ 907,869
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and accretion	428,604	450,180
Amortization	74,069	2,763
Stock based compensation	130,009	149,399
Loss on disposal of equipment	3,193	669
Inventory reserve	(7,744)	(26,259)
Changes in operating assets and liabilities:
Accounts receivable	129,407	(141,923)
Inventories	11,551	(2,109,142)
Prepaid expenses	507,961	(475,250)
Right of use asset	(505,701)
Other assets	(14,204)	(25,511)
Accounts payable	(67,344)	13,850
Operating lease obligations	472,502
Accrued expenses and customer deposits	(935,447)	2,906,442
Net cash provided by operating activities	532,207	1,653,087
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds on sale of equipment	1,033
Purchases of property and equipment	(380,636)	(380,933)
Net cash used in investing activities	(379,603)	(380,933)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options	14,952	9,765
Principal payments on finance lease obligations and notes payable	(117,846)	(375,730)
Payment of cumulative dividends on preferred stock	(24,152)	(24,152)
Net cash used in financing activities	(127,046)	(390,117)
NET INCREASE IN CASH	25,558	882,037
CASH - Beginning of year	1,802,839	920,802
CASH - End of year	1,828,397	1,802,839
Cash paid during the year for:
Interest	11,075	22,931
Income taxes	3,039	17,642
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES
Property and equipment purchased by finance lease	78,950	105,325
Increase in asset retirement obligation	$ 2,541	$ 2,431

Business Organization and Purpo

Business Organization and Purpose	12 Months Ended
	Dec. 31, 2019
Business Organization and Purpose
Business Organization and Purpose	Note 1. Business Organization and Purpose SCI Engineered Materials, Inc. (“SCI”, “we” or the “Company”), an Ohio corporation, was incorporated in 1987. The Company operates in one segment as a global supplier and manufacturer of advanced materials for Physical Vapor Deposition (“PVD”) Thin Film Applications. The Company is focused on specific markets within the PVD industry (Photonics, Thin Film Solar, Glass, and Transparent Electronics). Substantially, all of the Company’s revenues are generated from customers with multi-national operations. The Company develops innovative customized solutions enabling commercial success through collaboration with end users and Original Equipment Manufacturers.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 2. Summary of Significant Accounting Policies A. B. C. The Company’s two largest customers accounted for 72% and 10% of total revenue in 2019. These two customers represented 76% of the accounts receivable trade balance at December 31, 2019. The Company expects to collect all outstanding accounts receivables as of December 31, 2019 from these customers. The Company’s two largest customers accounted for 36% and 17% of total revenue in 2018. These two customers represented 27% of the accounts receivable trade balance at December 31, 2018. The Company subsequently collected all outstanding accounts receivables as of December 31, 2018 from these customers. D. Management estimates an allowance for doubtful accounts, which was $15,000 as of December 31, 2019 and 2018. This estimate is based upon management’s review of delinquent accounts and an assessment of the Company’s historical evidence of collections. Specific accounts are charged directly to the reserve or bad debt expense when management obtains evidence of a customer’s insolvency or otherwise determines that the account is uncollectible. There was no bad debt expense during 2019 and 2018. E. F. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the fair value is less than the carrying amount of the asset, a loss is recognized for the difference. There was no property and equipment considered impaired during 2019 or 2018. G. Our patent titled “Process for the removal of contaminants from sputtering target substrates” (US patent No. 10,138,545 B2) was issued on November 27, 2018. This provides a process for the removal of contaminants on a spent sputtering target used in Plasma Vapor Deposition. A patent titled “Display having a transparent conductive oxide layer comprising metal doped zinc oxide applied by sputtering” (US patent No. 9,927,667) was issued on March 27, 2018. The Company holds the rights to this patent and any subsequent patents for this technology related to the application of Zinc based Transparent Conductive Oxide in Displays. Costs incurred to secure patents have been capitalized and amortized over the life of the patents. Cost and accumulated amortization of the patents at December 31, 2019 was $78,810 and $4,837, respectively and cost and accumulated amortization of the patents at December 31, 2018 was $64,481 and $1,977, respectively. Amortization expense related to patents was $2,860 and $1,977 for the years ended December 31, 2019 and 2018, respectively. Amortization expense is expected to be at least $2,860 for each of the next five years. H. The core principle of ASC 606 is supported by five steps which are listed below: 1. Identify the contract with the customer. 2. Identify the performance obligation in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to performance obligations in the contract. 5. Recognize revenue when or as the Company satisfies a performance obligation. The Company enters into contracts with its customers that generally represent purchase orders specifying general terms and conditions, order quantities and per unit product price. The Company has determined that each unit of product purchased represents a separate performance obligation. The Company satisfies its performance obligations and recognizes revenue at a point in time when control of a unit of product is transferred to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. For the majority of product sales, transfer of control occurs when the products are shipped from the Company’s manufacturing facility to the customer. The cost of delivering products to the Company’s customers is recorded as a component of cost of products sold. Those costs may include the amounts paid to a third party to deliver the products. Any freight costs billed to and paid by a customer are included in revenue. The Company considers collectability of amounts due under a contract to be probable upon inception of a sale based on an evaluation of the credit worthiness of each customer. The Company sells its products typically under agreements with payment terms of 30 days. The Company does not typically include extended payment terms or significant financing components in contracts with customers. The majority of the Company’s contracts have an obligation to transfer products within one year. Thus, the Company elects to use the practical expedient where incremental cost of obtaining a contract, such as commissions, is expensed when incurred because the amortization period for those costs is one year or less. The Company treats shipping and handling activities that occur after control of the product transfers as fulfillment activities, and therefore, does not account for shipping and handling costs as a separate performance obligation. Customer deposits are funds received in advance from customers and are recognized as revenue when the Company has transferred control of product to the customer. Product revenues are recognized upon shipment of goods as the customer has assumed the significant risks and rewards of ownership and the Company is entitled to payment at this point. Service revenues are recognized upon completion as the customer cannot realize the benefit of the service until fully completed. During 2019 and 2018, revenue from the Photonics market was 97% and 80% of total revenue, respectively. The balance of the revenue in each period was almost entirely from the Thin Film Solar market. The top two customers represented 82% and 53% of total revenue during 2019 and 2018, respectively. International shipments resulted in 8% and 30% of total revenue for 2019 and 2018, respectively. I. J. K. L. M. Stock Compensation - In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016‑09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplified certain aspects of the accounting for share-based payment transactions, including income taxes, classification of awards and classification of the statement of cash flows. ASU 2016‑09 became effective for the Company in the first quarter of 2018. There was minimal impact on the financial statements. Leases - In February 2016, the FASB issued ASU No. 2016‑02, Leases (Topic 842). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. In July 2018, the FASB issued ASU No. 2018‑10, Codification Improvements to Topic 842, Leases. The amendments in ASU 2018‑10 clarify, correct or remove inconsistencies in the guidance provided under ASU 2016‑02 related to sixteen specific issues identified. Also, in July 2018, the FASB issued ASU No. 2018‑11, Targeted Improvements to Topic 842. This amendment provides the Company with an additional and optional transition method to adopt the new lease standard. Under this new transition method, the Company can apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption and present the accounting on a prospective or go-forward basis instead of applying to the earliest comparative period presented in the financial statements. The new lease standard became effective for the Company January 1, 2019. The Company adopted the new standard on January 1, 2019. The Company also elected the package of practical expedients to not reassess existing lease classifications on adoption. The new standard did not have a material impact on the Company’s income statements. The most significant impact of the new standard was the recognition of a ROU asset and lease liability of over $500,000 as of January 1, 2019.

Inventories

Inventories	12 Months Ended
	Dec. 31, 2019
Inventories
Inventories	Note 3. Inventories Inventories consist of the following at December 31: 2019 2018 Raw materials $ 883,767 $ 1,568,487 Work-in-process 1,802,092 1,144,080 Finished goods 85,176 70,019 2,771,035 2,782,586 Reserve for obsolete inventory (21,997) (29,741) $ 2,749,038 $ 2,752,845

Note Payable

Note Payable	12 Months Ended
	Dec. 31, 2019
Note Payable
Note Payable	Note 4. Note Payable During October 2019, the Company renewed its line of credit with Huntington Bank for $1 million. The line of credit bears interest at 0.5 percentage points over the Prime Commercial Rate with an expiration date of October 5, 2020. At December 31, 2019, no amounts were drawn on the line of credit.

Lease Obligations

Lease Obligations	12 Months Ended
	Dec. 31, 2019
Lease Obligations
Lease Obligations	Note 5. Lease Obligations Operating The Company entered into an operating lease with a third party on March 18, 2014 for its headquarters in Columbus, Ohio. The terms of the lease include monthly payments ranging from $9,000 to $9,700 with a maturity date of November 30, 2024. The Company has the option to extend the lease period for an additional five years beyond the original expiration date. There are no restrictions or covenants associated with the lease. The lease costs were approximately $106,200 and $104,000 during the years ended December 31, 2019 and 2018, respectively. The following is a maturity analysis, by year, of the annual undiscounted cash outflows of the operating lease liabilities as of December 31, 2019: 2020 108,117 2021 110,364 2022 112,611 2023 114,857 2024 102,550 Total minimum lease payments $ 548,499 Operating cash outflows from operating leases $ 72,817 Weighted average remaining lease term – operating leases 4.9 years Weighted average discount rate – operating leases 5.5 %

Finance Leases

Finance Leases	12 Months Ended
	Dec. 31, 2019
Finance Leases
Finance Leases	Note 6. Finance Leases The Company also leases certain equipment under finance leases. Future minimum lease payments, by year, with the present value of such payments, as of December 31, 2019, are shown in the following table. 2020 $ 107,808 2021 91,398 2022 21,609 2023 18,129 Total minimum lease payments 238,944 Less amount representing interest 15,109 Present value of minimum lease payments 223,835 Less current portion 98,524 Finance lease obligations, net of current portion $ 125,311 The equipment under finance lease at December 31 is included in the accompanying balance sheets as follows: 2019 2018 Machinery and equipment $ 438,316 $ 725,036 Less accumulated depreciation and amortization 98,305 222,973 Net book value $ 340,011 $ 502,063 These assets are amortized over a period of ten years using the straight-line method and amortization is included in depreciation expense. The finance leases are structured such that ownership of the leased asset reverts to the Company at the end of the lease term. Accordingly, leased assets are depreciated using the Company's normal depreciation methods and lives. In 2019, ownership of certain assets were transferred to the Company in accordance with the terms of the leases and these assets have been excluded from the leased asset disclosure above. The Company entered into a finance lease obligation during 2019 for the purchase of new production and testing equipment in the amount of $78,950. Those assets are reflected in the total above.

Common and Preferred Stock

Common and Preferred Stock	12 Months Ended
	Dec. 31, 2019
Common and Preferred Stock
Common and Preferred Stock	Note 7. Common and Preferred Stock Common Stock During 2019, the non-employee board members received compensation of 63,500 shares of common stock of the Company. The stock had an aggregate value of $119,992 and was recorded as non-cash stock compensation expense in the financial statements. During 2018, the non-employee board members received 67,487 shares of common stock of the Company with an aggregate value of $121,380. This was recorded as non-cash stock compensation expense in the financial statements. Preferred Stock Shares of preferred stock authorized and outstanding at December 31, 2019 and 2018, were as follows: Shares Shares Authorized Outstanding Cumulative Preferred Stock 10,000 — Voting Preferred Stock 125,000 — Cumulative Non-Voting Preferred Stock 125,000 (a) 24,152 (a) Includes 700 shares of Series A Preferred Stock and 100,000 shares of Convertible Series B Preferred Stock authorized for issuance. In January 1996, the Company completed an offering of 70,000 shares of $10 stated value 1995 Series B 10% cumulative non-voting convertible preferred stock. The shares are convertible to common shares at the rate of $5.00 per share. At the Company’s option, the Series B shares are redeemable at 103% of the stated value plus the amount of any accrued and unpaid cash dividends. There were 24,152 shares of Series B convertible preferred stock outstanding at December 31, 2019 and 2018. During 2019 and 2018, a dividend payment of $24,152 was made to preferred shareholders of record. The Company had accrued dividends of $265,672 at December 31, 2019 and 2018. These amounts were included in convertible preferred stock, Series B on the balance sheet at December 31, 2019 and 2018. Earnings Per Share Basic income (loss) per share is calculated as income available (loss attributable) to common shareholders divided by the weighted average of common shares outstanding. Diluted earnings per share is calculated as diluted income available (loss attributable) to common shareholders divided by the diluted weighted average number of common shares outstanding. Diluted weighted average number of common shares gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. Diluted earnings per share exclude all diluted potential shares if their effect is anti-dilutive. Following is a summary of employee and director outstanding stock options outstanding and preferred stock, Series B at December 31. 2019 2018 Options 76,037 396,941 Preferred Stock, Series B 24,152 24,152 100,189 421,093 The following is provided to reconcile the earnings per share calculations: 2019 2018 Income applicable to common stock $ 281,199 $ 883,717 Weighted average common shares outstanding - basic 4,328,210 4,223,865 Effect of dilution - stock options 34,117 33,266 Weighted average shares outstanding - diluted 4,362,327 4,257,131

Stock Option Plans

Stock Option Plans	12 Months Ended
	Dec. 31, 2019
Stock Option Plans
Stock Option Plans	Note 8. Stock Option Plans On June 10, 2011, shareholders approved the SCI Engineered Materials, Inc. 2011 Stock Incentive Plan (the “2011 Plan”). The Company adopted the 2011 Plan as incentive to key employees, directors and consultants under which options to purchase up to 250,000 shares of the Company’s common stock may be granted, subject to the execution of stock option agreements. Incentive stock options may be granted to key employees of the Company and non-statutory options may be granted to directors who are not employees and to consultants and advisors who render services to the Company. Options may be exercised for periods up to 10 years from the date of grant at prices not less than 100% of fair market value on the date of grant. As of December 31, 2019, there were 34,715 stock options outstanding from the 2011 Plan which expire in May 2028. On June 9, 2006, shareholders approved the Superconductive Components, Inc. 2006 Stock Incentive Plan. The Company adopted the 2006 Plan as incentive to key employees, directors and consultants under which options to purchase up to 600,000 shares of the Company’s common stock may be granted, subject to the execution of stock option agreements. Incentive stock options may be granted to key employees of the Company and non-statutory options may be granted to directors who are not employees and to consultants and advisors who render services to the Company. Options may be exercised for periods up to 10 years from the date of grant at prices not less than 100% of fair market value on the date of grant. The 2006 Plan expired in 2016 and no additional stock options may be granted. As of December 31, 2019, there were 41,322 stock options outstanding from the 2006 Plan which expire at various dates through November 2024. The cumulative status at December 31, 2019 and 2018, of options granted and outstanding, as well as options which became exercisable in connection with the Stock Option Plans is summarized as follows: Employee Stock Options Weighted Weighted Average Average Aggregate Stock Exercise Contractual Intrinsic Options Price Term (yrs) Value Outstanding at January 1, 2018 381,447 $ 4.54 Granted 41,719 1.25 Exercised (21,225) 0.84 Expired (5,000) 3.10 Outstanding at December 31, 2018 396,941 $ 4.41 Exercised (31,788) 0.84 Expired (271,500) 6.00 Forfeited (17,616) 1.00 Outstanding at December 31, 2019 76,037 $ 1.03 6.5 $ 13,140 Options exercisable at December 31, 2018 329,988 $ 5.09 1.0 $ — Options exercisable at December 31, 2019 48,265 $ 0.90 5.4 $ 14,529 Options expected to vest 27,772 $ 1.25 8.4 $ — There were no Non-Employee Director Stock Options outstanding at December 31, 2019 and 2018. Information related to the weighted average fair value of nonvested stock options for the year ended December 31, 2019 is as follows: Weighted Average Exercise Stock Options Price Employee Stock Options Nonvested options at January 1, 2019 66,953 $ 1.10 Forfeited (17,615) 1.00 Vested (21,566) 0.97 Nonvested options at December 31, 2019 27,772 $ 1.25 Exercise prices range from $0.84 to $1.25 for options at December 31, 2019. The weighted average option price for all options outstanding was $1.03 with a weighted average remaining contractual life of 6.5 years at December 31, 2019. The weighted average option price for all options outstanding was $4.41 with a weighted average remaining contractual life of 2.2 years at December 31, 2018. The weighted average fair value at date of grant for options granted during 2018 was $1.25, and was established using the Black-Scholes option valuation method with the following weighted average assumptions: Expected life in years 5.0 Interest rate 2.7 % Volatility 62.3 % Dividend yield 0 %

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2019
Income Taxes
Income Taxes	Note 9. Income Taxes Deferred tax assets and liabilities result from temporary differences in the recognition of income and expense for tax and financial reporting purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows at December 31. 2019 2018 Deferred tax assets NOL carryforwards $ 822,000 $ 781,000 General business credits carryforwards 331,000 288,000 Stock based compensation 118,000 92,000 UNICAP 59,000 56,000 Allowance for doubtful accounts 3,000 3,000 Reserve for obsolete inventories 5,000 6,000 Reserve for asset retirement 15,000 14,000 Property and equipment (300,000) (145,000) 1,053,000 1,095,000 Valuation allowance (1,053,000) (1,095,000) Net $ — $ — A valuation allowance has been recorded against the realizability of the net deferred tax asset such that no value is recorded for the asset in the accompanying financial statements. The valuation allowance totaled $1,053,000 and $1,095,000 at December 31, 2019 and 2018, respectively. The Company had net operating loss carryforwards available for federal and state tax purposes of approximately $3,900,000 and $3,700,000 at December 31, 2019 and 2018, respectively, which expire in varying amounts through 2039. For the years ended December 31, 2019 and 2018, a reconciliation of the statutory rate and effective rate for the provisions for income taxes consists of the following: Percentage 2019 2018 Federal statutory rate 21.0 % 21.0 % State/city tax 1.0 1.9 Non-deductible expense 1.0 0.6 Valuation allowance (22.0) (21.6) Effective rate 1.0 % 1.9 % Components of the income tax provision are as follows: 2019 2018 Current $ 3,039 $ 17,642 Deferred: NOL utilization/expiration (41,000) 257,000 General business credits (42,000) (44,000) Other temporary differences 126,000 (62,000) Change in valuation allowance (43,000) (151,000) Total $ 3,039 $ 17,642 The Company follows guidance issued by the Financial Accounting Standards Board (“FASB ASC 740”) with respect to accounting for uncertainty in income taxes. A tax position is recognized as a benefit only if it is “more-likely-than-not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than fifty percent likely of being realized on examination. For tax positions not meeting the “more-likely-than-not” test, no tax benefit is recorded. The Company has no unrecognized tax benefits under guidance related to tax uncertainties. The Company does not anticipate the unrecognized tax benefits will significantly change in the next twelve months. Any tax penalties or interest expense will be recognized in income tax expense. No interest and penalties related to unrecognized tax benefits were accrued at December 31, 2019 and 2018. The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. The Company is open to federal and state tax audits until the applicable statute of limitations expire. There are currently no federal or state income tax examinations underway for the Company. The tax years 2016 through 2019 remain open to examination by the major taxing jurisdictions in which the Company operates.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2019
Fair Value of Financial Instruments
Fair Value of Financial Instruments	Note 10. Fair Value of Financial Instruments The fair value of financial instruments represents the price that would be received to sell an asset or paid to transfer a liability (an exit price), and not the price that would be paid to acquire an asset or received to assume a liability (an entry price). Significant differences can arise between the fair value and carrying amount of financial instruments that are recognized at historical cost amounts. The following methods and assumptions were used by the Company in estimating fair value disclosures for financial instruments: · Cash and cash equivalents, short-term notes payable and finance lease obligations and current maturities of long-term notes payable and finance lease obligations: Amounts reported in the balance sheet approximate fair market value due to the short maturity of these instruments. · Long-term note payable and finance lease obligations: Amounts reported in the balance sheet approximate fair value as the interest rates on the obligations range from 4.8% to 6.2%, which approximates current fair market rates.

Asset Retirement Obligation

Asset Retirement Obligation	12 Months Ended
	Dec. 31, 2019
Asset Retirement Obligation
Asset Retirement Obligation	Note 11. Asset Retirement Obligation Included in machinery and equipment is various production equipment, which per the Company’s building lease, is required to be removed upon termination of the related lease. Included in accrued expenses in the accompanying balance sheet is the asset retirement obligation that represents the expected present value of the liability to remove this equipment. There are no assets that are legally restricted for purposes of settling this asset retirement obligation. Following is a reconciliation of the aggregate retirement liability associated with the Company’s obligation to dismantle and remove the machinery and equipment associated with its lease: Balance at January 1, 2018 $ 66,796 Increase in present value of the obligation (accretion expense in the corresponding amount charged against earnings) Balance at December 31, 2018 $ 69,227 Increase in present value of the obligation (accretion expense in the corresponding amount charged against earnings) Balance at December 31, 2019 $ 71,768

Subsequent Event

Subsequent Event	12 Months Ended
	Dec. 31, 2019
Subsequent Event
Subsequent Event	Note 12. Subsequent Event The Company entered into a purchase commitment in January 2020 in the amount of $267,150 for the rebuild of production equipment. Work on this rebuild began in January 2020 and is expected to be completed during the third quarter of 2020.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies
Cash	A.
Fair Value of Financial Instruments	B.
Concentrations of Credit Risk	C. The Company’s two largest customers accounted for 72% and 10% of total revenue in 2019. These two customers represented 76% of the accounts receivable trade balance at December 31, 2019. The Company expects to collect all outstanding accounts receivables as of December 31, 2019 from these customers. The Company’s two largest customers accounted for 36% and 17% of total revenue in 2018. These two customers represented 27% of the accounts receivable trade balance at December 31, 2018. The Company subsequently collected all outstanding accounts receivables as of December 31, 2018 from these customers.
Accounts Receivable	D. Management estimates an allowance for doubtful accounts, which was $15,000 as of December 31, 2019 and 2018. This estimate is based upon management’s review of delinquent accounts and an assessment of the Company’s historical evidence of collections. Specific accounts are charged directly to the reserve or bad debt expense when management obtains evidence of a customer’s insolvency or otherwise determines that the account is uncollectible. There was no bad debt expense during 2019 and 2018.
Inventories	E.
Property and Equipment	F. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the fair value is less than the carrying amount of the asset, a loss is recognized for the difference. There was no property and equipment considered impaired during 2019 or 2018.
Intangible Assets	G. Our patent titled “Process for the removal of contaminants from sputtering target substrates” (US patent No. 10,138,545 B2) was issued on November 27, 2018. This provides a process for the removal of contaminants on a spent sputtering target used in Plasma Vapor Deposition. A patent titled “Display having a transparent conductive oxide layer comprising metal doped zinc oxide applied by sputtering” (US patent No. 9,927,667) was issued on March 27, 2018. The Company holds the rights to this patent and any subsequent patents for this technology related to the application of Zinc based Transparent Conductive Oxide in Displays. Costs incurred to secure patents have been capitalized and amortized over the life of the patents. Cost and accumulated amortization of the patents at December 31, 2019 was $78,810 and $4,837, respectively and cost and accumulated amortization of the patents at December 31, 2018 was $64,481 and $1,977, respectively. Amortization expense related to patents was $2,860 and $1,977 for the years ended December 31, 2019 and 2018, respectively. Amortization expense is expected to be at least $2,860 for each of the next five years.
Revenue Recognition	H. The core principle of ASC 606 is supported by five steps which are listed below: 1. Identify the contract with the customer. 2. Identify the performance obligation in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to performance obligations in the contract. 5. Recognize revenue when or as the Company satisfies a performance obligation. The Company enters into contracts with its customers that generally represent purchase orders specifying general terms and conditions, order quantities and per unit product price. The Company has determined that each unit of product purchased represents a separate performance obligation. The Company satisfies its performance obligations and recognizes revenue at a point in time when control of a unit of product is transferred to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. For the majority of product sales, transfer of control occurs when the products are shipped from the Company’s manufacturing facility to the customer. The cost of delivering products to the Company’s customers is recorded as a component of cost of products sold. Those costs may include the amounts paid to a third party to deliver the products. Any freight costs billed to and paid by a customer are included in revenue. The Company considers collectability of amounts due under a contract to be probable upon inception of a sale based on an evaluation of the credit worthiness of each customer. The Company sells its products typically under agreements with payment terms of 30 days. The Company does not typically include extended payment terms or significant financing components in contracts with customers. The majority of the Company’s contracts have an obligation to transfer products within one year. Thus, the Company elects to use the practical expedient where incremental cost of obtaining a contract, such as commissions, is expensed when incurred because the amortization period for those costs is one year or less. The Company treats shipping and handling activities that occur after control of the product transfers as fulfillment activities, and therefore, does not account for shipping and handling costs as a separate performance obligation. Customer deposits are funds received in advance from customers and are recognized as revenue when the Company has transferred control of product to the customer. Product revenues are recognized upon shipment of goods as the customer has assumed the significant risks and rewards of ownership and the Company is entitled to payment at this point. Service revenues are recognized upon completion as the customer cannot realize the benefit of the service until fully completed. During 2019 and 2018, revenue from the Photonics market was 97% and 80% of total revenue, respectively. The balance of the revenue in each period was almost entirely from the Thin Film Solar market. The top two customers represented 82% and 53% of total revenue during 2019 and 2018, respectively. International shipments resulted in 8% and 30% of total revenue for 2019 and 2018, respectively.
Stock Based Compensation	I.
Research and Development	J.
Income Taxes	K.
Use of Estimates	L.
Recent Accounting Pronouncements	M. Stock Compensation - In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016‑09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplified certain aspects of the accounting for share-based payment transactions, including income taxes, classification of awards and classification of the statement of cash flows. ASU 2016‑09 became effective for the Company in the first quarter of 2018. There was minimal impact on the financial statements. Leases - In February 2016, the FASB issued ASU No. 2016‑02, Leases (Topic 842). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. In July 2018, the FASB issued ASU No. 2018‑10, Codification Improvements to Topic 842, Leases. The amendments in ASU 2018‑10 clarify, correct or remove inconsistencies in the guidance provided under ASU 2016‑02 related to sixteen specific issues identified. Also, in July 2018, the FASB issued ASU No. 2018‑11, Targeted Improvements to Topic 842. This amendment provides the Company with an additional and optional transition method to adopt the new lease standard. Under this new transition method, the Company can apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption and present the accounting on a prospective or go-forward basis instead of applying to the earliest comparative period presented in the financial statements. The new lease standard became effective for the Company January 1, 2019. The Company adopted the new standard on January 1, 2019. The Company also elected the package of practical expedients to not reassess existing lease classifications on adoption. The new standard did not have a material impact on the Company’s income statements. The most significant impact of the new standard was the recognition of a ROU asset and lease liability of over $500,000 as of January 1, 2019.

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2019
Inventories
Schedule of Inventories	Inventories consist of the following at December 31: 2019 2018 Raw materials $ 883,767 $ 1,568,487 Work-in-process 1,802,092 1,144,080 Finished goods 85,176 70,019 2,771,035 2,782,586 Reserve for obsolete inventory (21,997) (29,741) $ 2,749,038 $ 2,752,845

Lease Obligations (Tables)

Lease Obligations (Tables)	12 Months Ended
	Dec. 31, 2019
Lease Obligations
Schedule of annual undiscounted cash flows of the operating lease liabilities	The following is a maturity analysis, by year, of the annual undiscounted cash outflows of the operating lease liabilities as of December 31, 2019: 2020 108,117 2021 110,364 2022 112,611 2023 114,857 2024 102,550 Total minimum lease payments $ 548,499
Schedule of operating lease other information	Operating cash outflows from operating leases $ 72,817 Weighted average remaining lease term – operating leases 4.9 years Weighted average discount rate – operating leases 5.5 %

Finance Leases (Tables)

Finance Leases (Tables)	12 Months Ended
	Dec. 31, 2019
Finance Leases
Schedule of future minimum lease payments	The Company also leases certain equipment under finance leases. Future minimum lease payments, by year, with the present value of such payments, as of December 31, 2019, are shown in the following table. 2020 $ 107,808 2021 91,398 2022 21,609 2023 18,129 Total minimum lease payments 238,944 Less amount representing interest 15,109 Present value of minimum lease payments 223,835 Less current portion 98,524 Finance lease obligations, net of current portion $ 125,311
Schedule of equipment under finance leases	The equipment under finance lease at December 31 is included in the accompanying balance sheets as follows: 2019 2018 Machinery and equipment $ 438,316 $ 725,036 Less accumulated depreciation and amortization 98,305 222,973 Net book value $ 340,011 $ 502,063

Common and Preferred Stock (Tab

Common and Preferred Stock (Tables)	12 Months Ended
	Dec. 31, 2019
Common and Preferred Stock
Summary of shares of preferred stock authorized and outstanding	Shares of preferred stock authorized and outstanding at December 31, 2019 and 2018, were as follows: Shares Shares Authorized Outstanding Cumulative Preferred Stock 10,000 — Voting Preferred Stock 125,000 — Cumulative Non-Voting Preferred Stock 125,000 (a) 24,152 (a) Includes 700 shares of Series A Preferred Stock and 100,000 shares of Convertible Series B Preferred Stock authorized for issuance.
Summary of employee and director outstanding stock options outstanding and preferred stock, Series B	Following is a summary of employee and director outstanding stock options outstanding and preferred stock, Series B at December 31. 2019 2018 Options 76,037 396,941 Preferred Stock, Series B 24,152 24,152 100,189 421,093
Summary of reconciliation of earnings per share calculations	The following is provided to reconcile the earnings per share calculations: 2019 2018 Income applicable to common stock $ 281,199 $ 883,717 Weighted average common shares outstanding - basic 4,328,210 4,223,865 Effect of dilution - stock options 34,117 33,266 Weighted average shares outstanding - diluted 4,362,327 4,257,131

Stock Options Plans (Tables)

Stock Options Plans (Tables)	12 Months Ended
	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of weighted average fair value of non vested stock options	Information related to the weighted average fair value of nonvested stock options for the year ended December 31, 2019 is as follows: Weighted Average Exercise Stock Options Price Employee Stock Options Nonvested options at January 1, 2019 66,953 $ 1.10 Forfeited (17,615) 1.00 Vested (21,566) 0.97 Nonvested options at December 31, 2019 27,772 $ 1.25
Schedule Of Black-Scholes option valuation In weighted average assumptions	The weighted average fair value at date of grant for options granted during 2018 was $1.25, and was established using the Black-Scholes option valuation method with the following weighted average assumptions: Expected life in years 5.0 Interest rate 2.7 % Volatility 62.3 % Dividend yield 0 %
Employee Stock Option [Member] | Series B Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of share-based compensation, employee stock options, activity	The cumulative status at December 31, 2019 and 2018, of options granted and outstanding, as well as options which became exercisable in connection with the Stock Option Plans is summarized as follows: Employee Stock Options Weighted Weighted Average Average Aggregate Stock Exercise Contractual Intrinsic Options Price Term (yrs) Value Outstanding at January 1, 2018 381,447 $ 4.54 Granted 41,719 1.25 Exercised (21,225) 0.84 Expired (5,000) 3.10 Outstanding at December 31, 2018 396,941 $ 4.41 Exercised (31,788) 0.84 Expired (271,500) 6.00 Forfeited (17,616) 1.00 Outstanding at December 31, 2019 76,037 $ 1.03 6.5 $ 13,140 Options exercisable at December 31, 2018 329,988 $ 5.09 1.0 $ — Options exercisable at December 31, 2019 48,265 $ 0.90 5.4 $ 14,529 Options expected to vest 27,772 $ 1.25 8.4 $ —

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2019
Income Taxes
Schedule of deferred tax assets and liabilities	Significant components of the Company’s deferred tax assets and liabilities are as follows at December 31. 2019 2018 Deferred tax assets NOL carryforwards $ 822,000 $ 781,000 General business credits carryforwards 331,000 288,000 Stock based compensation 118,000 92,000 UNICAP 59,000 56,000 Allowance for doubtful accounts 3,000 3,000 Reserve for obsolete inventories 5,000 6,000 Reserve for asset retirement 15,000 14,000 Property and equipment (300,000) (145,000) 1,053,000 1,095,000 Valuation allowance (1,053,000) (1,095,000) Net $ — $ —
Schedule of reconciliation of the statutory rate and effective rate for income taxes	For the years ended December 31, 2019 and 2018, a reconciliation of the statutory rate and effective rate for the provisions for income taxes consists of the following: Percentage 2019 2018 Federal statutory rate 21.0 % 21.0 % State/city tax 1.0 1.9 Non-deductible expense 1.0 0.6 Valuation allowance (22.0) (21.6) Effective rate 1.0 % 1.9 %
Schedule of Components of the income tax provision	Components of the income tax provision are as follows: 2019 2018 Current $ 3,039 $ 17,642 Deferred: NOL utilization/expiration (41,000) 257,000 General business credits (42,000) (44,000) Other temporary differences 126,000 (62,000) Change in valuation allowance (43,000) (151,000) Total $ 3,039 $ 17,642

Asset Retirement Obligation (Ta

Asset Retirement Obligation (Tables)	12 Months Ended
	Dec. 31, 2019
Asset Retirement Obligation
Schedule of Asset Retirement Obligations	Balance at January 1, 2018 $ 66,796 Increase in present value of the obligation (accretion expense in the corresponding amount charged against earnings) Balance at December 31, 2018 $ 69,227 Increase in present value of the obligation (accretion expense in the corresponding amount charged against earnings) Balance at December 31, 2019 $ 71,768

Business Organization and Pur_2

Business Organization and Purpose (Details)	12 Months Ended
	Dec. 31, 2019segment
Business Organization and Purpose
Number of operating segments	1

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($)	Jan. 01, 2019	Dec. 31, 2019	Dec. 31, 2018
Accounting Policies [Line Items]
Allowance for Doubtful Accounts Receivable, Current		$ 15,000	$ 15,000
Bad debt expense		0	0
Inventory Valuation Reserves		21,997	29,741
Depreciation		428,604	450,180
Property and equipment impaired		0	0
Intangible assets impaired		0	0
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized		15,762
Share-based Compensation		130,009	149,399
Research and Development Expense		$ 366,492	$ 351,999
Right of use asset and operating lease liability	$ 500,000
Computer Equipment [Member]
Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life		3 years
Certain Equipment [Member]
Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life		16 years
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | International
Accounting Policies [Line Items]
Concentration Risk, Percentage		8.00%	30.00%
Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Photonics market [Member]
Accounting Policies [Line Items]
Concentration Risk, Percentage		97.00%	80.00%
Patents [Member]
Accounting Policies [Line Items]
Finite-Lived Intangible Assets, Gross		$ 78,810	$ 64,481
Finite-Lived Intangible Assets, Accumulated Amortization		4,837	1,977
Amortization of Intangible Assets		2,860	1,977
Minimum Expected Amortization Expense In Future		$ 2,860
Period of expected amortization for intangible assets		5 years
Non Employee Board [Member]
Accounting Policies [Line Items]
Share-based Compensation		$ 119,992	$ 121,380
Customer One [Member] | Sales Revenue, Net [Member]
Accounting Policies [Line Items]
Concentration Risk, Percentage		72.00%	36.00%
Customer Two [Member] | Sales Revenue, Net [Member]
Accounting Policies [Line Items]
Concentration Risk, Percentage		10.00%	17.00%
Two Customers [Member] | Accounts Receivable [Member]
Accounting Policies [Line Items]
Concentration Risk, Percentage		76.00%	27.00%
Two Customers [Member] | Sales Revenue, Net [Member]
Accounting Policies [Line Items]
Concentration Risk, Percentage		82.00%	53.00%

Inventories (Details)

Inventories (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Inventories
Raw materials	$ 883,767	$ 1,568,487
Work-in-process	1,802,092	1,144,080
Finished goods	85,176	70,019
Inventory, Gross	2,771,035	2,782,586
Reserve for obsolete inventory	(21,997)	(29,741)
Inventory, Net	$ 2,749,038	$ 2,752,845

Note Payable (Details)

Note Payable (Details) - Huntington Bank [Member] - USD ($)	1 Months Ended
	Oct. 31, 2019	Dec. 31, 2019
Debt Conversion [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,000,000
Borrowings on line of credit		$ 0
Prime Commercial Rate
Debt Conversion [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.50%

Lease Obligations - Future Mini

Lease Obligations - Future Minimum Lease Payments (Details)	Dec. 31, 2019USD ($)
Lease Obligations
2020	$ 108,117
2021	110,364
2022	112,611
2023	114,857
2024	102,550
Total minimum lease payments	$ 548,499

Lease Obligations - Additional

Lease Obligations - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Operating cash outflows from operating leases	$ 72,817
Weighted average remaining lease term - operating leases	4 years 10 months 24 days
Weighted average discount rate - operating leases	5.50%
Operating lease, renewal term	5 years
Operating Lease, Cost	$ 106,200	$ 104,000
Minimum [Member]
Operating Lease Monthly Rent Payable	9,000
Maximum [Member]
Operating Lease Monthly Rent Payable	$ 9,700

Finance Leases - Future minimum

Finance Leases - Future minimum lease payments (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Finance Leases
2020	$ 107,808
2021	91,398
2022	21,609
2023	18,129
Total minimum lease payments	238,944
Less amount representing interest	15,109
Present value of minimum lease payments	223,835
Less current portion	98,524	$ 114,853
Finance lease obligations, net of current portion	$ 125,311	$ 147,878

Finance Lease - Equipment under

Finance Lease - Equipment under finance lease and additional information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Finance Leases
Machinery and equipment	$ 438,316	$ 725,036
Less accumulated depreciation and amortization	98,305	222,973
Net book value	$ 340,011	502,063
Amortization period, Finance lease (in years)	10 years
Property and equipment purchased by finance lease	$ 78,950	$ 105,325

Common and Preferred Stock - Co

Common and Preferred Stock - Common Stock (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Stock Issued During Period, Value, New Issues	$ 119,992	$ 134,661
Common Stock [Member]
Stock Issued During Period, Value, New Issues	$ 119,992	$ 134,661
Common Stock [Member] | Non Employee Board members [Member]
Stock Issued During Period, Shares, New Issues	63,500	67,487
Stock Issued During Period, Value, New Issues	$ 119,992	$ 121,380

Common and Preferred Stock - Pr

Common and Preferred Stock - Preferred Stock Authorized and Outstanding (Details) - shares		Dec. 31, 2019	Dec. 31, 2018
Preferred Stock, Shares Outstanding		24,152	24,152
Cumulative Preferred Stock [Member]
Preferred Stock, Shares Authorized		10,000	10,000
Preferred Stock, Shares Outstanding		0	0
Voting Preferred Stock [Member]
Preferred Stock, Shares Authorized		125,000	125,000
Preferred Stock, Shares Outstanding		0	0
Cumulative Non Voting Preferred Stock [Member]
Preferred Stock, Shares Authorized	[1]	125,000	125,000
Preferred Stock, Shares Outstanding		24,152	24,152
Series A Preferred Stock [Member]
Preferred Stock, Shares Authorized		700
Convertible Preferred Stock Series B [Member]
Preferred Stock, Shares Authorized		100,000
Preferred Stock, Shares Outstanding		24,152	24,152
[1]	Includes 700 shares of Series A Preferred Stock and 100,000 shares of Convertible Series B Preferred Stock authorized for issuance.

Common and Preferred Stock - _2

Common and Preferred Stock - Preferred Stock - Additional Information (Details) - USD ($)	1 Months Ended	12 Months Ended
	Jan. 31, 1996	Dec. 31, 2019	Dec. 31, 2018
Preferred Stock, Shares Outstanding		24,152	24,152
Convertible Preferred Stock Series B [Member]
Stock Issued During Period, Shares, New Issues	70,000
Preferred Stock, No Par Value	$ 10	$ 0	$ 0
Preferred Stock, Dividend Rate, Percentage	10.00%
Convertible Preferred Stock Conversion Price	$ 5
Preferred Stock Redemption Percentage	103.00%
Preferred Stock, Shares Outstanding		24,152	24,152
Payments of Dividends		$ 24,152	$ 24,152
Accrued Dividend		$ 265,672	$ 265,672

Common and Preferred Stock - Su

Common and Preferred Stock - Summary of Employee and Director Outstanding Stock Options Outstanding and Preferred Stock, Series B (Details) - shares	Dec. 31, 2019	Dec. 31, 2018
Common and Preferred Stock
Options	76,037	396,941
Preferred Stock, Series B	24,152	24,152
Number of Options and Preferred Stock Outstanding	100,189	421,093

Common and Preferred Stock - Re

Common and Preferred Stock - Reconciliation of Earnings Per Share Calculations (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share
Income applicable to common shares	$ 281,199	$ 883,717
Weighted average common shares outstanding - basic	4,328,210	4,223,865
Effect of dilution - stock options	34,117	33,266
Weighted average shares outstanding - diluted	4,362,327	4,257,131

Stock Option Plans - Employee S

Stock Option Plans - Employee Stock Options (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Options, Outstanding, Beginning Balance	396,941
Stock Options, Outstanding, Ending Balance	76,037	396,941
Weighted Average Exercise Price, Granted		$ 1.25
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Options, Outstanding, Beginning Balance	396,941	381,447
Stock Options, Granted		41,719
Stock Options, Exercised	(31,788)	(21,225)
Stock Options, Expired	(271,500)	(5,000)
Forfeited, Stock Options	(17,616)
Stock Options, Outstanding, Ending Balance	76,037	396,941
Stock Options, Options exercisable	48,265	329,988
Stock Options, Options expected to vest	27,772
Weighted Average Exercise Price, Outstanding, Beginning Balance	$ 4.41	$ 4.54
Weighted Average Exercise Price, Granted		1.25
Weighted Average Exercise Price, Exercised	0.84	0.84
Weighted Average Exercise Price, Expired	6	3.10
Weighted Average Exercise Price, Forfeited	1
Weighted Average Exercise Price, Outstanding, Ending Balance	1.03	4.41
Weighted Average Exercise Price, Options exercisable	0.90	$ 5.09
Weighted Average Exercise Price, Options expected to vest	$ 1.25
Weighted Average Contractual Term, Outstanding	6 years 6 months	2 years 2 months 12 days
Weighted Average Contractual Term, Options exercisable	5 years 4 months 24 days	1 year
Weighted Average Contractual Term, Options expected to vest	8 years 4 months 24 days
Aggregate Intrinsic Value, Outstanding	$ 13,140
Aggregate Intrinsic Value, Options exercisable	14,529	$ 0
Aggregate Intrinsic Value, Options expected to vest	$ 0

Stock Option Plans - weighted a

Stock Option Plans - weighted average fair value of non vested stock options (Details) - Employee Stock Option [Member]	12 Months Ended
	Dec. 31, 2019$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested options at January 1, 2019 | shares	66,953
Forfeited, Stock Options | shares	(17,615)
Vested, Stock Options | shares	(21,566)
Nonvested options at December 31, 2019 | shares	27,772
Nonvested, Weighted Average Exercise Price at January 1, 2018 | $ / shares	$ 1.10
Forfeited, Weighted Average Exercise Price | $ / shares	1
Vested, Weighted Average Exercise Price | $ / shares	0.97
Nonvested, Weighted Average Exercise Price at December 31, 2018 | $ / shares	$ 1.25

Stock Option Plans - Black-Scho

Stock Option Plans - Black-Scholes option (Details)	12 Months Ended
	Dec. 31, 2018
Stock Option Plans
Expected life in years	5 years
Interest rate	2.70%
Volatility	62.30%
Dividend yield	0.00%

Stock Option Plans - Additional

Stock Option Plans - Additional information (Details) - $ / shares	Jun. 10, 2011	Jun. 09, 2006	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number			76,037	396,941
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price				$ 1.25
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit (in dollars per share)			$ 0.84
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit (in dollars per share)			$ 1.25
Plan 2011 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	250,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	100.00%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number			34,715
Plan 2006 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		600,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		10 years
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent		100.00%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number			41,322
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term			6 years 6 months	2 years 2 months 12 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price			$ 1.03	$ 4.41	$ 4.54
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number			76,037	396,941	381,447
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price				$ 1.25
Non-employee director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number			0	0

Income Taxes - deferred tax ass

Income Taxes - deferred tax assets and liabilities (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets
NOL carryforwards	$ 822,000	$ 781,000
General business credits carryforwards	331,000	288,000
Stock based compensation	118,000	92,000
UNICAP	59,000	56,000
Allowance for doubtful accounts	3,000	3,000
Reserve for obsolete inventories	5,000	6,000
Reserve for asset retirement	15,000	14,000
Property and equipment	(300,000)	(145,000)
Deferred Tax Assets, Gross	1,053,000	1,095,000
Valuation allowance	(1,053,000)	(1,095,000)
Net	$ 0	$ 0

Income Taxes - reconciliation o

Income Taxes - reconciliation of the statutory rate and effective rate (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Taxes
Federal statutory rate	21.00%	21.00%
State/city tax	1.00%	1.90%
Non-deductible expense	1.00%	0.60%
Valuation allowance	(22.00%)	(21.60%)
Effective rate	1.00%	1.90%

Income Taxes - Components of th

Income Taxes - Components of the income tax provision (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Taxes
Current	$ 3,039	$ 17,642
Deferred:
NOL utilization/expiration	(41,000)	257,000
General business credits	(42,000)	(44,000)
Other temporary differences	126,000	(62,000)
Change in valuation allowance	(43,000)	(151,000)
Total	$ 3,039	$ 17,642

Income Taxes - Additional infor

Income Taxes - Additional information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Taxes
Deferred Tax Assets, Operating Loss Carryforwards, State and Local	$ 3,900,000	$ 3,700,000
Operating Loss Carry forward Expiration Year	2039
Deferred Tax Assets, Valuation Allowance	$ 1,053,000	1,095,000
Unrecognized Tax Benefits	0
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	$ 0	$ 0

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Details)	Dec. 31, 2019
Minimum [Member]
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate	4.80%
Maximum [Member]
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate	6.20%

Asset Retirement Obligation (De

Asset Retirement Obligation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Asset Retirement Obligation
Beginning balance	$ 69,227	$ 66,796
Increase in present value of the obligation (accretion expense in the corresponding amount charged against earnings)	2,541	2,431
Ending balance	$ 71,768	$ 69,227

Subsequent Event (Details)

Subsequent Event (Details)	1 Months Ended
	Jan. 31, 2020USD ($)
Subsequent Event [Member]
Subsequent Event [Line Items]
Purchase Commitment	$ 267,150