SCI Engineered Materials (SCIA) 10-Q4 Nov 132013 Q3 Quarterly reportFinancial data

Company Profile

Document_And_Entity_Informatio

Document And Entity Information	9 Months Ended
Document And Entity Information	Sep. 30, 2013	Oct. 31, 2013
Document Information [Line Items]	'	'
Entity Registrant Name	'SCI Engineered Materials, Inc.	'
Entity Central Index Key	'0000830616	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Trading Symbol	'SCIA	'
Entity Common Stock, Shares Outstanding	'	3,844,898
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-13	'
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

BALANCE_SHEETS

BALANCE SHEETS (USD $)	Sep. 30, 2013	Dec. 31, 2012
ASSETS	'	'
Cash	$494,124	$630,819
Accounts receivable, less allowance for doubtful accounts of $15,000 and $45,000, respectively	487,488	453,302
Inventories	1,193,231	815,075
Prepaid expenses	551,874	209,422
Total current assets	2,726,717	2,108,618
Property and Equipment, at cost	'	'
Machinery and equipment	7,125,506	7,015,504
Furniture and fixtures	137,911	137,911
Leasehold improvements	317,870	317,870
Construction in progress	0	12,195
Property, Plant and Equipment, Gross	7,581,287	7,483,480
Less accumulated depreciation and amortization	-4,676,818	-4,254,302
Property, Plant and Equipment, Net	2,904,469	3,229,178
Other Assets	'	'
Deposits	17,117	15,332
Deferred financing fees	31,463	38,543
Intangibles	11,517	12,889
Total other assets	60,097	66,764
TOTAL ASSETS	5,691,283	5,404,560
LIABILITIES AND SHAREHOLDERS' EQUITY	'	'
Capital lease obligations, current portion	137,615	221,366
Notes payable, current portion	217,647	316,571
Accounts payable	186,407	260,531
Customer deposits	1,265,708	313,745
Accrued compensation	89,872	76,646
Accrued expenses and other	98,238	117,572
Total current liabilities	1,995,487	1,306,431
Capital lease obligations, net of current portion	157,601	163,331
Notes payable, net of current portion	948,819	1,057,104
Total liabilities	3,101,907	2,526,866
Commitments and contingencies	'	'
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	435,944	417,830
Common stock, no par value, authorized 15,000,000 shares; 3,844,898 and 3,826,898 shares issued and outstanding, respectively	9,825,300	9,800,100
Additional paid-in capital	1,816,130	1,758,358
Accumulated deficit	-9,487,998	-9,098,594
Total Shareholders' Equity	2,589,376	2,877,694
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$5,691,283	$5,404,560

BALANCE_SHEETS_Parenthetical

BALANCE SHEETS [Parenthetical] (USD $)	9 Months Ended	12 Months Ended
BALANCE SHEETS [Parenthetical] (USD $)	Sep. 30, 2013	Dec. 31, 2012
Allowance for doubtful accounts (in dollars)	$15,000	$45,000
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	3,844,898	3,826,898
Common stock, shares outstanding	3,844,898	3,826,898
Convertible Preferred Stock Series B [Member]	'	'
Convertible preferred stock, series B, cumulative percentage of interest	10.00%	10.00%
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 $)	3 Months Ended		9 Months Ended
STATEMENTS OF OPERATIONS (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Product revenue	$1,810,044	$1,926,040	$4,946,251	$6,387,799
Contract research revenue	0	56,363	90,170	181,363
Total revenue	1,810,044	1,982,403	5,036,421	6,569,162
Cost of product revenue	1,393,208	1,373,258	3,971,147	5,021,258
Cost of contract research revenue	0	46,969	76,648	147,552
Total cost of revenue	1,393,208	1,420,227	4,047,795	5,168,810
Gross profit	416,836	562,176	988,626	1,400,352
General and administrative expense	250,232	247,470	785,065	818,939
Research and development expense	112,365	62,646	254,568	230,035
Marketing and sales expense	106,582	139,381	331,022	399,185
(Loss) income from operations	-52,343	112,679	-382,029	-47,807
Other (expense) income	'	'	'	'
Interest, net	-17,650	-19,843	-56,772	-64,404
(Loss) gain on disposal of equipment, net	-291	-850	49,397	-850
Other expense	-17,941	-20,693	-7,375	-65,254
(Loss) income before provision for income taxes	-70,284	91,986	-389,404	-113,061
Income tax (expense) benefit	0	-1,237	0	24,652
Net (loss) income	-70,284	90,749	-389,404	-88,409
Dividends on preferred stock	-6,038	-6,038	-18,114	-18,114
(LOSS) INCOME APPLICABLE TO COMMON SHARES	($76,322)	$84,711	($407,518)	($106,523)
Earnings per share - basic and diluted (Note 6)	'	'	'	'
Basic (in dollars per share)	($0.02)	$0.02	($0.11)	($0.03)
Diluted (in dollars per share)	($0.02)	$0.02	($0.11)	($0.03)
Weighted average shares outstanding	'	'	'	'
Basic (in shares)	3,841,963	3,817,963	3,835,997	3,812,019
Diluted (in shares)	3,841,963	3,827,774	3,835,997	3,812,019

STATEMENTS_OF_CASH_FLOWS

STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
STATEMENTS OF CASH FLOWS (USD $)	Sep. 30, 2013	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
Net loss	($389,404)	($88,409)
Adjustments to reconcile net loss to net cash provided by operating activities:	'	'
Depreciation and accretion	435,707	433,841
Amortization	1,372	2,107
Stock based compensation	101,086	102,294
Net (gain) loss on disposal of equipment	-49,397	850
Inventory reserve	20,652	23,095
Credit for doubtful accounts	-30,223	0
Changes in operating assets and liabilities:	'	'
Accounts receivable	-3,963	-141,982
Inventories	-398,808	-421,937
Prepaid expenses	-342,452	-17,969
Other assets	5,295	13,969
Accounts payable	-74,124	42,977
Accrued expenses and customer deposits	938,986	311,786
Net cash provided by operating activities	214,727	260,622
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Proceeds on sale of equipment	50,050	0
Purchases of property and equipment	-18,392	-563,997
Net cash provided by (used in) investing activities	31,658	-563,997
CASH FLOWS FROM FINANCING ACTIVITIES	'	'
Proceeds from notes payable	0	911,546
Principal payments on capital lease obligations and notes payable	-383,080	-814,862
Net cash (used in) provided by financing activities	-383,080	96,684
NET DECREASE IN CASH	-136,695	-206,691
CASH - Beginning of period	630,819	798,069
CASH - End of period	494,124	591,378
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION	'	'
Interest	57,305	65,214
Income taxes	0	605
SUPPLEMENTAL DISCLOSURES OF NONCASH FINANCING ACTIVITIES	'	'
Property and equipment purchased by capital lease	86,389	0
Increase in asset retirement obligation	$6,870	$6,480

Business_Organization_and_Purp

Business Organization and Purpose	9 Months Ended
Business Organization and Purpose	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	'
	Note 1. Business Organization and Purpose

	SCI Engineered Materials, Inc. (“SCI”, or the “Company”), formerly Superconductive Components, Inc., an Ohio corporation, was incorporated in 1987. The Company is a global supplier and manufacturer of advanced materials for Physical Vapor Deposition Thin Film Applications. Through partnerships with end users and Original Equipment Manufacturers the Company develops innovative customized solutions enabling commercial success.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2013
Accounting Policies [Abstract]	'
Significant Accounting Policies [Text Block]	'
	Note 2. Summary of Significant Accounting Policies

	The accompanying unaudited financial statements have been prepared in accordance with U. S. generally accepted accounting principles for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U. S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for fair presentation of the results of operations for the periods presented have been included. The financial statements should be read in conjunction with the audited financial statements and the notes thereto for the year ended December 31, 2012. Interim results are not necessarily indicative of results for the full year.

	The preparation of financial statements in conformity with U. S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of 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.

Common_Stock_and_Stock_Options

Common Stock and Stock Options	9 Months Ended
Common Stock and Stock Options	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	'
	Note 3. Common Stock and Stock Options

	Stock Based Compensation - Compensation cost for all stock-based awards is based on the grant date fair value and recognized over the required service (vesting) period. Non cash stock based compensation expense was $31,355 and $31,415 for the three months ended September 30, 2013 and 2012, respectively. Non cash stock based compensation expense was $101,086 and $102,294 for the nine months ended September 30, 2013 and 2012, respectively. Unrecognized compensation expense was $430,021 as of September 30, 2013 and will be recognized through 2017. There was no tax benefit recorded for this compensation cost as the expense primarily relates to incentive stock options that do not qualify for a tax deduction until, and only if, a qualifying disposition occurs.

	The four non-employee board members each received compensation of 4,500 shares of common stock of the Company during the nine months ended September 30, 2013 and 2012. The stock had an aggregate value of $25,200 and $24,060 for the nine months ended September 30, 2013 and 2012, respectively, and was recorded in general and administrative expense as non cash stock compensation expense in the financial statements.

	The cumulative status of options granted and outstanding at September 30, 2013, and December 31, 2012, as well as options which became exercisable in connection with the Company’s stock option plans is summarized as follows:

	Employee Stock Options
				Weighted
				Average
		Stock Options		Exercise Price

	Outstanding at January 1, 2012		736,750	$	4.52
	Expired		-144,500		1.59
	Outstanding at December 31, 2012		592,250	$	5.23
	Expired		-250		1
	Outstanding at September 30, 2013		592,000	$	5.23
	Options exercisable at December 31, 2012		322,250	$	4.59
	Options exercisable at September 30, 2013		367,000	$	4.76

	Non-Employee Director Stock Options
				Average
		Stock Options		Exercise Price

	Outstanding at January 1, 2012		250,000	$	3.87
	Outstanding at December 31, 2012		250,000	$	3.87
	Expired		-30,000		1
	Outstanding at September 30, 2013		220,000	$	4.26
	Options exercisable at December 31, 2012		250,000	$	3.87
	Options exercisable at September 30, 2013		220,000	$	4.26

	Exercise prices for options ranged from $2.40 to $6.00 at September 30, 2013. The weighted average option price for all options outstanding was $4.97 with a weighted average remaining contractual life of 3.4 years.

Preferred_Stock

Preferred Stock	9 Months Ended
Preferred Stock	Sep. 30, 2013
Equity [Abstract]	'
Preferred Stock [Text Block]	'
	Note 4. Preferred Stock

	Pursuant to the terms of the preferred stock, the Board of Directors voted not to authorize the payment of a cash dividend on convertible preferred stock, Series B, to shareholders of record as of December 31, 2012. Dividends on the Series B preferred stock accrue at 10% annually on the outstanding shares. Accrued dividends on the Series B preferred stock were $6,038 for the three months ended September 30, 2013 and 2012 and $18,114 for the nine months ended September 30, 2013 and 2012. The Company had accrued dividends on Series B preferred stock of $187,178 at September 30, 2013, and $169,064 at December 31, 2012. These amounts are included in Convertible preferred stock, Series B on the balance sheet at September 30, 2013 and December 31, 2012.

Inventories

Inventories	9 Months Ended
Inventories	Sep. 30, 2013
Inventory Disclosure [Abstract]	'
Inventory Disclosure [Text Block]	'
	Note 5. Inventories

	Inventories consisted of the following:		September 30,		December 31,
			2013		2012
		(unaudited)
	Raw materials	$	477,863	$	346,613
	Work-in-process		704,128		408,491
	Finished goods		131,892		159,971
	Inventory reserve		-120,652		-100,000
		$	1,193,231	$	815,075

Earnings_Per_Share

Earnings Per Share	9 Months Ended
Earnings Per Share	Sep. 30, 2013
Earnings Per Share [Abstract]	'
Earnings Per Share [Text Block]	'
	Note 6. Earnings Per Share

	Basic income (loss) per share is calculated as income available to (loss applicable to) common stockholders divided by the weighted average of common shares outstanding. Diluted earnings per share is calculated as diluted income available to common stockholders divided by the diluted weighted average number of common shares. 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. For the three months ended September 30, 2013, and the nine months ended September 30, 2013 and 2012, all convertible preferred stock and common stock options listed in Note 3 were excluded from diluted earnings per share due to being out-of-the-money or anti-dilutive. The following is provided to reconcile the earnings per share calculations:

		Three months ended Sept. 30,				Nine months ended Sept. 30,
		2013		2012			2013		2012
	(Loss) income applicable to common shares	$	-76,322	$	84,711		$	-407,518	$	-106,523

	Weighted average common shares outstanding – basic		3,841,963		3,817,963			3,835,997		3,812,019

	Effect of dilution		-		9,811			-		-

	Weighted average shares outstanding - diluted		3,841,963		3,827,774			3,835,997		3,812,019

Notes_Payable

Notes Payable	9 Months Ended
	Sep. 30, 2013
Debt Disclosure [Abstract]	'
Debt Disclosure [Text Block]	'
	Note 7. Notes Payable

	On August 8, 2013, the Company issued a Promissory Note (the “Note”) in the amount of $128,257 to The Huntington National Bank, as Lender, with a maturity date of August 5, 2016. This Note replaced an existing promissory note to the Huntington National Bank which had a balance of $128,257, monthly payments of approximately $5,600, including interest, with remaining principal due at the maturity date of February 28, 2014.

	The Note is collateralized by the Company’s inventories, equipment and accounts receivable. Among other items, the Note provides for the following:

		-	Interest subject to change from time to time based on changes in LIBOR. The interest rate applied to the unpaid principal balance is at a rate of 4 percentage points over LIBOR. Under no circumstance will the interest rate be less than 5% per annum or more than the maximum rate allowed by applicable law.

		-	Monthly payments of approximately $3,800, including interest, beginning in September 2013.

	As of September 30, 2013 there was an outstanding balance of $125,052 on this Note.

	The Company’s revolving line of credit arrangement with its senior lender expired on April 13, 2012. There was no balance outstanding under this arrangement at maturity.

	During 2010, the Company applied and was approved for a 166 Direct Loan to borrow up to $744,250 with the Ohio Department of Development (ODOD), now known as the Ohio Development Services Agency (ODSA). This loan was finalized in February 2011. The term of the loan is 84 months at a fixed interest rate of 3%. There is also a 0.25% annual servicing fee charged monthly on the outstanding principal balance. Payments of approximately $10,500, including interest and servicing fee, were payable monthly. On August 13, 2013, ODSA and the Company agreed to a modification to the payment schedule. Interest and servicing payments of $1,656 are due monthly from August 2013 through January 2014. Beginning in February 2014, monthly payments of approximately $10,500, including principal, interest and servicing fee are due through October 2018. A final payment of approximately $71,900 is due November 2018. The loan is collateralized by the related project equipment. As of September 30, 2013 there was an outstanding balance of $611,520 on this loan.

	During 2010, the Company also applied and was approved for a 166 Direct Loan through the Advanced Energy Program with the Ohio Air Quality Development Authority (OAQDA) to borrow up to approximately $1.4 million (this maximum commitment by the OAQDA was subsequently reduced to $368,906 on March 20, 2012). The interest rate was 3% at December 31, 2011 and increased to 10% effective with the first amendment dated March 20, 2012. A second amendment dated June 12, 2012 returned the interest rate to 3% effective April 10, 2012. There is also an annual servicing fee of $1,600 charged quarterly. The loan is being amortized over 84 months through March 2018. Payments were interest only through March 2012. Thereafter, payments of approximately $17,300, including interest and servicing fee, are payable quarterly. The loan is collateralized by the related project equipment. As of September 30, 2013 there was an outstanding balance of $282,786 on this loan.

	An Intercreditor Agreement exists as part of the above mentioned loans with agencies of the State of Ohio. The OAQDA and ODOD agree to shared lien and security interest through mutual covenants. These covenants include, but are not limited to, the creation of an agreed upon number of jobs, filing of quarterly and annual reports and various financial covenants. The Company expects to maintain compliance with all covenants through September 30, 2014.

	During 2006, the Company was approved for a 166 Direct Loan from the Ohio Department of Development, now known as the Ohio Development Services Agency (ODSA), in the amount of $400,000. These funds were received in July of 2008 and were used for the purchase of production equipment and to reduce the Company’s capital lease obligations on certain equipment. The term of the loan is 84 months at a fixed interest rate of 3%. There is also a 0.25% annual servicing fee to be charged monthly on the outstanding principal balance. Payments of approximately $6,100, including interest and servicing fee, were payable monthly. On August 8, 2013, ODSA and the Company agreed to a modification to the payment schedule. Interest and servicing payments of approximately $400 are due monthly from August 2013 through January 2014. Beginning in February 2014, monthly payments of approximately $6,100, including principal, interest and servicing fee are due through July 2015. A final payment of approximately $42,200 is due August 2015. The loan is collateralized by the related project equipment. As of September 30, 2013 the loan had a balance of $147,108. This loan is also subject to certain covenants, including job creation and retention. On March 5, 2013, the Company signed a First Amendment to the Loan Agreement, which changed the number of jobs to be created. The Company expects to maintain compliance with all covenants through September 30, 2014.

Income_Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Income Tax Disclosure [Text Block]	'
	Note 8. Income Taxes

	Following is the income tax (expense) benefit for the three and nine months ended September 30:

		Three months ended				Nine months ended
		September 30,				September 30,
		2013		2012		2013		2012
	Federal - deferred	$	-	$	-	$	-	$	-
	State and local		-		-1,237		-		24,652
		$	-	$	-1,237	$	-	$	24,652

	The tax benefit for the nine months ended September 30, 2012 was due to the reversal of an accrual. Deferred tax assets and liabilities result from temporary differences in the recognition of income and expense for tax and financial reporting purposes. A full valuation allowance has been recorded against the realizability of the net deferred tax assets at September 30, 2013 and December 31, 2012. The Company has net operating loss carryforwards available for federal and state tax purposes of approximately $4,000,000 which expire in varying amounts through 2031.

Liquidity

Liquidity	9 Months Ended
Liquidity	Sep. 30, 2013
Liquidity Disclosures [Abstract]	'
Liquidity Disclosures [Text Block]	'
	Note 9. Liquidity

	Management has forecasted the Company’s revenues and related costs as well as its investing plans and financing needs to determine its liquidity to meet cash flow requirements and believes it will have sufficient liquidity at least through September 30, 2014. This forecast was based on current cash levels and debt obligations, and management’s best estimates of revenues primarily from existing customers and gave consideration to the continued and possible increased levels of uncertainty in demand in the markets in which the Company operates. The Company’s ability to maintain current operations is dependent upon its ability to achieve these forecasted results, which management believes will occur.

	The Company does not currently have any available sources of additional external funding. The Company’s revolving line of credit arrangement with its senior lender expired on April 13, 2012. There was no balance outstanding under this arrangement at maturity. The Company did not have the need to draw on the revolving line of credit since the original commitment date of January 13, 2009. The Company does not anticipate the need for a similar credit facility during the remainder of 2013; although management may pursue revolving credit arrangements as working capital requirements increase. The Company’s ability to obtain a new line of credit, if deemed necessary, is not certain.

	During the second quarter of 2013 the Company enacted various cost cutting measures which included management wage reductions and reduced work hours where feasible. Should projected sales levels fall below the minimum levels expected to be achievable by management, additional cost reduction actions could be instituted which might facilitate the continued operation of the Company. The achievement of such reductions and the timing of their impact are not readily predictable.

	During the third quarter of 2013, the Company replaced an existing Promissory Note with The Huntington National Bank with a new Promissory Note which extended the maturity date from February 2014 to August 2016. The Company also agreed to payment schedule modifications with the Ohio Development Services Agency for two loans as discussed in Note 7.

Common_Stock_and_Stock_Options1

Common Stock and Stock Options (Tables)	9 Months Ended
Common Stock and Stock Options (Tables)	Sep. 30, 2013
Employee Stock Option [Member]	'
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	'
	Employee Stock Options
				Weighted
				Average
		Stock Options		Exercise Price

	Outstanding at January 1, 2012		736,750	$	4.52
	Expired		-144,500		1.59
	Outstanding at December 31, 2012		592,250	$	5.23
	Expired		-250		1
	Outstanding at September 30, 2013		592,000	$	5.23
	Options exercisable at December 31, 2012		322,250	$	4.59
	Options exercisable at September 30, 2013		367,000	$	4.76

Non Employee Director Stock Options [Member]	'
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	'
	Non-Employee Director Stock Options
				Average
		Stock Options		Exercise Price

	Outstanding at January 1, 2012		250,000	$	3.87
	Outstanding at December 31, 2012		250,000	$	3.87
	Expired		-30,000		1
	Outstanding at September 30, 2013		220,000	$	4.26
	Options exercisable at December 31, 2012		250,000	$	3.87
	Options exercisable at September 30, 2013		220,000	$	4.26

Inventories_Tables

Inventories (Tables)	9 Months Ended
Inventories (Tables)	Sep. 30, 2013
Inventory Disclosure [Abstract]	'
Schedule of Inventory, Current [Table Text Block]	'
	Inventories consisted of the following:		September 30,		December 31,
			2013		2012
		(unaudited)
	Raw materials	$	477,863	$	346,613
	Work-in-process		704,128		408,491
	Finished goods		131,892		159,971
	Inventory reserve		-120,652		-100,000
		$	1,193,231	$	815,075

Earnings_Per_Share_Tables

Earnings Per Share (Tables)	9 Months Ended
Earnings Per Share (Tables)	Sep. 30, 2013
Stockholders Equity Note [Abstract]	'
Schedule of Earnings Per Share Reconciliation [Table Text Block]	'
	The following is provided to reconcile the earnings per share calculations:

		Three months ended Sept. 30,				Nine months ended Sept. 30,
		2013		2012			2013		2012
	(Loss) income applicable to common shares	$	-76,322	$	84,711		$	-407,518	$	-106,523

	Weighted average common shares outstanding – basic		3,841,963		3,817,963			3,835,997		3,812,019

	Effect of dilution		-		9,811			-		-

	Weighted average shares outstanding - diluted		3,841,963		3,827,774			3,835,997		3,812,019

Income_Taxes_Tables

Income Taxes (Tables)	9 Months Ended
Income Taxes (Tables)	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	'
	Following is the income tax (expense) benefit for the three and nine months ended September 30:

		Three months ended				Nine months ended
		September 30,				September 30,
		2013		2012		2013		2012
	Federal - deferred	$	-	$	-	$	-	$	-
	State and local		-		-1,237		-		24,652
		$	-	$	-1,237	$	-	$	24,652

Common_Stock_and_Stock_Options2

Common Stock and Stock Options (Details) (USD $)	9 Months Ended	12 Months Ended
Common Stock and Stock Options (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Outstanding - Weighted Average Exercise Price, Ending Balance	$4.97	'
Employee Stock Option [Member]	'	'
Outstanding - Stock Options, Beginning Balance	592,250	736,750
Expired - Stock Options	-250	-144,500
Outstanding - Stock Options, Ending Balance	592,000	592,250
Options exercisable - Stock Options	367,000	322,250
Outstanding - Weighted Average Exercise Price, Beginning Balance	$5.23	$4.52
Expired - Weighted Average Exercise Price	$1	$1.59
Outstanding - Weighted Average Exercise Price, Ending Balance	$5.23	$5.23
Options exercisable - Weighted Average Exercise Price	$4.76	$4.59

Common_Stock_and_Stock_Options3

Common Stock and Stock Options (Details 1) (USD $)	9 Months Ended	12 Months Ended
Common Stock and Stock Options (Details 1) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Outstanding - Weighted Average Exercise Price, Ending Balance	$4.97	'
Non Employee Director Stock Options [Member]	'	'
Outstanding - Stock Options, Beginning Balance	250,000	250,000
Expired - Stock Options	-30,000	'
Outstanding - Stock Options, Ending Balance	220,000	250,000
Options exercisable - Stock Options	220,000	250,000
Outstanding - Weighted Average Exercise Price, Beginning Balance	$3.87	$3.87
Expired - Weighted Average Exercise Price	$1	'
Outstanding - Weighted Average Exercise Price, Ending Balance	$4.26	$3.87
Options exercisable - Weighted Average Exercise Price	$4.26	$3.87

Common_Stock_and_Stock_Options4

Common Stock and Stock Options (Details Textual) (USD $)	3 Months Ended		9 Months Ended
Common Stock and Stock Options (Details Textual) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Stock based compensation	$31,355	$31,415	$101,086	$102,294
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	430,021	'	430,021	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit (in dollars per share)	'	'	$2.40	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit (in dollars per share)	'	'	$6	'
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in dollars per share)	$4.97	'	$4.97	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	'	'	'3 years 4 months 24 days	'
Common Stock [Member]	'	'	'	'
Stock Issued During Period, Shares, New Issues (in shares)	'	'	4,500	4,500
Stock Issued During Period, Value, New Issues	'	'	$25,200	$24,060

Preferred_Stock_Details_Textua

Preferred Stock (Details Textual) (USD $)	3 Months Ended		9 Months Ended				9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Series B Preferred Stock [Member]	Series B Preferred Stock [Member]	Convertible Preferred Stock Series B [Member]
Preferred Stock, Dividend Rate, Percentage	'	'	'	'	'	'	10.00%
Dividends on preferred stock	$6,038	$6,038	$18,114	$18,114	'	'	'
Accrued Dividends	'	'	'	'	$187,178	$169,064	'

Inventories_Details

Inventories (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Raw materials	$477,863	$346,613
Work-in-process	704,128	408,491
Finished goods	131,892	159,971
Inventory reserve	-120,652	-100,000
Inventory, Net	$1,193,231	$815,075

Earnings_Per_Share_Details

Earnings Per Share (Details) (USD $)	3 Months Ended		9 Months Ended
Earnings Per Share (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
(Loss) income applicable to common shares	($76,322)	$84,711	($407,518)	($106,523)
Weighted average common shares outstanding - basic (in shares)	3,841,963	3,817,963	3,835,997	3,812,019
Effect of dilution (in shares)	0	9,811	0	0
Weighted average shares outstanding - diluted (in shares)	3,841,963	3,827,774	3,835,997	3,812,019

Notes_Payable_Details_Textual

Notes Payable (Details Textual) (USD $)

9 Months Ended

12 Months Ended

1 Months Ended

0 Months Ended

9 Months Ended

12 Months Ended

9 Months Ended

Sep. 30, 2013

Dec. 31, 2010

Dec. 31, 2011

Dec. 31, 2010

Sep. 30, 2013

Mar. 20, 2012

Jun. 12, 2012

Sep. 30, 2013

Dec. 31, 2006

Dec. 31, 2012

Sep. 30, 2013

Aug. 08, 2013

Sep. 30, 2013

Ohio Department Of Development Loan Two [Member]

Ohio Air Quality Development Authority [Member]

Ohio Department Of Development Loan One [Member]

Promissory Note Issue One [Member]

Promissory Note Issue Two [Member]

Subsequent Event [Member]

Line Of Credit Facility First Amendment [Member]

Line Of Credit Facility Second Amendment [Member]

Minimum [Member]

Ohio Department Of Development Loan Two [Member]

Ohio Department Of Development Loan One [Member]

Debt Instrument, Basis Spread on Variable Rate

4.00%

Debt Instrument, Maturity Date

28-Feb-14

5-Aug-16

Notes Payable to Bank

$128,257

Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases

1,400,000

368,906

400,000

Line Of Credit Facility Payment Duration

'84 months

Line of Credit Facility, Interest Rate During Period

3.00%

10.00%

3.00%

Line of Credit Facility, Amount Outstanding

611,520

282,786

147,108

125,052

71,900

42,200

Debt Instrument, Interest Rate, Effective Percentage

5.00%

Servicing Fee Annual Percent Fee

0.25%

Line of Credit Facility, Periodic Payment

10,500

17,300

6,100

5,600

3,800

10,500

6,100

Servicing Fee Paid

1,600

Line of Credit Facility, Maximum Borrowing Capacity

744,250

Line Of Credit Facility Interest And Servicing Payments

$1,656

$400

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended		9 Months Ended
Income Taxes (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Federal - deferred	$0	$0	$0	$0
State and local	0	-1,237	0	24,652
Income tax benefit	$0	($1,237)	$0	$24,652

Income_Taxes_Details_Textual

Income Taxes (Details Textual) (USD $)	9 Months Ended
Income Taxes (Details Textual) (USD $)	Sep. 30, 2013
Deferred Tax Assets, Operating Loss Carryforwards, State and Local	$4,000,000
Operating Loss Carryforward Expiration Dates	'2031