SCI Engineered Materials (SCIA) 10-Q31 Jul 142014 Q2 Quarterly reportFinancial data

Company Profile

Document_And_Entity_Informatio

Document And Entity Information	6 Months Ended
Document And Entity Information	Jun. 30, 2014	Jul. 25, 2014
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	'	3,863,398
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Jun-14	'
Document Fiscal Period Focus	'Q2	'
Document Fiscal Year Focus	'2014	'

BALANCE_SHEETS

BALANCE SHEETS (USD $)	Jun. 30, 2014	Dec. 31, 2013
Current Assets	'	'
Cash	$944,425	$622,727
Accounts receivable, less allowance for doubtful accounts of $25,000 and $15,000, respectively	616,325	634,077
Inventories	969,649	1,709,740
Prepaid expenses	79,522	56,298
Total current assets	2,609,921	3,022,842
Property and Equipment, at cost	'	'
Machinery and equipment	7,263,558	7,116,055
Furniture and fixtures	139,110	137,911
Leasehold improvements	317,870	317,870
Construction in progress	263,491	2,093
Property, Plant and Equipment, Gross	7,984,029	7,573,929
Less accumulated depreciation	-5,048,126	-4,781,362
Property, Plant and Equipment, Net	2,935,903	2,792,567
Other Assets	'	'
Deposits	18,532	15,645
Deferred financing fees	24,384	29,104
Intangibles	10,144	11,059
Total other assets	53,060	55,808
TOTAL ASSETS	5,598,884	5,871,217
Current Liabilities	'	'
Capital lease obligations, current portion	164,949	104,010
Notes payable, current portion	281,405	247,679
Accounts payable	420,840	456,111
Customer deposits	472,337	1,105,655
Accrued compensation	84,901	75,815
Accrued expenses and other	115,644	115,672
Total current liabilities	1,540,076	2,104,942
Capital lease obligations, net of current portion	404,100	132,739
Notes payable, net of current portion	766,916	908,787
Total liabilities	2,711,092	3,146,468
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	454,058	441,982
Common stock, no par value, authorized 15,000,000 shares; 3,863,398 and 3,852,898 shares issued and outstanding, respectively	9,845,590	9,833,620
Additional paid-in capital	1,896,578	1,835,387
Accumulated deficit	-9,308,434	-9,386,240
Total shareholders' equity	2,887,792	2,724,749
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$5,598,884	$5,871,217

BALANCE_SHEETS_Parenthetical

BALANCE SHEETS [Parenthetical] (USD $)	6 Months Ended	12 Months Ended
BALANCE SHEETS [Parenthetical] (USD $)	Jun. 30, 2014	Dec. 31, 2013
Allowance for doubtful accounts (in dollars)	$25,000	$15,000
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	3,863,398	3,852,898
Common stock, shares outstanding	3,863,398	3,852,898
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		6 Months Ended
STATEMENTS OF OPERATIONS (USD $)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenue	$3,098,376	$1,792,775	$5,690,876	$3,226,377
Cost of revenue	2,517,906	1,394,584	4,523,633	2,654,587
Gross profit	580,470	398,191	1,167,243	571,790
General and administrative expense	300,151	239,623	632,742	534,833
Research and development expense	72,202	78,083	157,808	142,203
Marketing and sales expense	139,449	119,116	263,689	224,440
Income (loss) from operations	68,668	-38,631	113,004	-329,686
Other (expense) income	'	'	'	'
Interest	-17,346	-18,659	-33,324	-39,122
Gain (loss) on disposal of equipment, net	249	-312	-255	49,688
Nonoperating Income (Expense)	-17,097	-18,971	-33,579	10,566
Income (loss) before provision for income taxes	51,571	-57,602	79,425	-319,120
Income tax (expense) benefit	-1,037	38	-1,619	0
Net income (loss)	50,534	-57,564	77,806	-319,120
Dividends on preferred stock	-6,038	-6,038	-12,076	-12,076
INCOME (LOSS) APPLICABLE TO COMMON SHARES	$44,496	($63,602)	$65,730	($331,196)
Earnings per share - basic and diluted (Note 6)	'	'	'	'
Basic (in dollars per share)	$0.01	($0.02)	$0.02	($0.09)
Diluted (in dollars per share)	$0.01	($0.02)	$0.02	($0.09)
Weighted average shares outstanding	'	'	'	'
Basic (in shares)	3,861,222	3,835,997	3,858,575	3,832,964
Diluted (in shares)	3,861,222	3,835,997	3,858,575	3,832,964

STATEMENTS_OF_CASH_FLOWS

STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
STATEMENTS OF CASH FLOWS (USD $)	Jun. 30, 2014	Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
Net income (loss)	$77,806	($319,120)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:	'	'
Depreciation and accretion	275,761	301,777
Amortization	915	915
Stock based compensation	85,236	69,731
Net loss (gain) on disposal of equipment	255	-49,688
Inventory reserve	42,000	11,652
Change in allowance for doubtful accounts	10,000	-30,223
Changes in operating assets and liabilities:	'	'
Accounts receivable	7,752	-22,807
Inventories	698,091	-157,505
Prepaid expenses	-23,224	106,631
Other assets	1,833	3,093
Accounts payable	-35,271	12,704
Accrued expenses and customer deposits	-629,362	35,529
Net cash provided by (used in) operating activities	511,792	-37,311
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Proceeds on sale of equipment	250	50,000
Purchases of property and equipment	-18,335	-15,241
Net cash (used in) provided by investing activities	-18,085	34,759
CASH FLOWS FROM FINANCING ACTIVITIES	'	'
Principal payments on capital lease obligations and notes payable	-172,009	-285,356
Net cash used in financing activities	-172,009	-285,356
NET INCREASE (DECREASE) IN CASH	321,698	-287,908
CASH - Beginning of period	622,727	630,819
CASH - End of period	944,425	342,911
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION	'	'
Interest	33,678	39,493
Income taxes	1,619	0
SUPPLEMENTAL DISCLOSURES OF NONCASH FINANCING ACTIVITIES	'	'
Property and equipment purchased by capital lease	396,165	86,389
Increase in asset retirement obligation	$5,100	$4,320

Business_Organization_and_Purp

Business Organization and Purpose	6 Months Ended
	Jun. 30, 2014
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 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, Thin Film Battery and Transparent Electronics). Substantially all of the Company’s revenues are generated from customers with multi-national operations. 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	6 Months Ended
	Jun. 30, 2014
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, 2013. 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	6 Months Ended
Common Stock and Stock Options	Jun. 30, 2014
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 awards is based on the grant date fair value and recognized over the required service (vesting) period. Non cash stock based compensation expense was $41,763 and $34,296 for the three months ended June 30, 2014 and 2013, respectively. Non cash stock based compensation expense was $85,236 and $69,731 for the six months ended June 30, 2014 and 2013, respectively. Unrecognized compensation expense was $512,862 as of June 30, 2014 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 non-employee board members received compensation of 10,500 and 12,000 aggregate shares of common stock of the Company during the six months ended June 30, 2014 and June 30, 2013, respectively. The stock had an aggregate value of $11,970 and $19,140 for the six months ended June 30, 2014 and 2013, respectively, and was recorded as non cash stock compensation expense in the financial statements.

	The cumulative status of options granted and outstanding at June 30, 2014, and December 31, 2013, 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, 2013		592,250	$	5.23
	Expired		-250		1
	Forfeited		-105,500		5.37
	Outstanding at December 31, 2013		486,500	$	5.2
	Expired		-55,000		2.78
	Outstanding at June 30, 2014		431,500	$	5.51
	Options exercisable at December 31, 2013		304,250	$	4.73
	Options exercisable at June 30, 2014		285,700	$	5.26

	Non-Employee Director Stock Options
				Weighted
				Average
			Stock Options	Exercise Price

	Outstanding at January 1, 2013		250,000	$	3.87
	Expired		-30,000		1
	Outstanding at December 31, 2013		220,000	$	4.26
	Expired		-120,000		5.15
	Outstanding at June 30, 2014		100,000	$	3.2
	Options exercisable at December 31, 2013		220,000	$	4.26
	Options exercisable at June 30, 2014		100,000	$	3.2

	Exercise prices for options ranged from $2.40 to $6.00 at June 30, 2014. The weighted average option price for all options outstanding was $5.08 with a weighted average remaining contractual life of 3.5 years.

Preferred_Stock

Preferred Stock	6 Months Ended
	Jun. 30, 2014
Equity [Abstract]	'
Preferred Stock [Text Block]	'
		Note 4.	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, 2013. 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 June 30, 2014 and 2013 and $12,076 for the six months ended June 30, 2014 and 2013. The Company had accrued dividends on Series B preferred stock of $205,292 at June 30, 2014, and $193,216 at December 31, 2013. These amounts are included in Convertible preferred stock, Series B on the balance sheet at June 30, 2014 and December 31, 2013.

Inventories

Inventories	6 Months Ended
Inventories	Jun. 30, 2014
Inventory Disclosure [Abstract]	'
Inventory Disclosure [Text Block]	'
	Note 5.	Inventories

	Inventories consisted of the following:		June 30,		December 31,
			2014		2013
			(unaudited)
	Raw materials		$	587,514	$	1,174,945
	Work-in-process			409,189		532,044
	Finished goods			149,809		137,614
	Inventory reserve			-176,863		-134,863
			$	969,649	$	1,709,740

Earnings_Per_Share

Earnings Per Share	6 Months Ended
Earnings Per Share	Jun. 30, 2014
Earnings Per Share [Abstract]	'
Earnings Per Share [Text Block]	'
	Note 6.	Earnings Per Share

	Basic income (loss) per share is calculated as income (loss) applicable to common shareholders divided by the weighted average of common shares outstanding. Diluted earnings per share is calculated as diluted income applicable to common shareholders 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 and the six months ended June 30, 2014 and 2013, 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 June 30,				Six months ended June 30,
			2014		2013		2014		2013

	Income (loss) applicable to common shares		$	44,496	$	-63,602	$	65,730	$	-331,196

	Weighted average common shares outstanding - basic			3,861,222		3,835,997		3,858,575		3,832,964

	Effect of dilution			-		-		-		-

	Weighted average shares outstanding - diluted			3,861,222		3,835,997		3,858,575		3,832,964

Notes_Payable

Notes Payable	6 Months Ended
	Jun. 30, 2014
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.

	The Note is collateralized by a blanket lien on all of the Company’s assets including, without limitation, inventory, 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.

	The interest rate on the Note was 5% at June 30, 2014 and December 31, 2013. As of June 30, 2014 there was an outstanding balance of $94,667 on this Note. The Company expects to maintain compliance with all covenants of this Note through at least June 30, 2015.

	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. On August 13, 2013, ODSA and the Company agreed to a modification to the payment schedule. Interest and servicing payments of $1,656 were paid 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 June 30, 2014 there was an outstanding balance of $567,184 on this loan. This loan is also subject to certain covenants, including job creation and retention. On July 21, 2014, the Company and ODSA signed a second amendment relating to the job creation and retention. The Company expects to maintain compliance with all covenants of this loan through at least June 30, 2015.

	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). On December 20, 2013, OAQDA and the Company signed a Fourth Amendment to the Loan Documents and agreed to a modification to the payment schedule. Interest and servicing payments of $2,121 were payable quarterly from October 2013 through March 2014. Beginning in June 2014, quarterly payments of approximately $17,300, including principal, interest at 3% and servicing fees are due through December 2017. A final payment of approximately $50,400 is due February 2018. This loan is also subject to certain covenants, including job creation. Included in the above amendment is a waiver for the job creation commitment, due to market conditions, for the duration of the term of the Loan Agreement. The Company expects to maintain compliance with all covenants of this loan at least through June 30, 2015. The loan is collateralized by the related project equipment. As of June 30, 2014 there was an outstanding balance of $268,053 on this loan.

	An Intercreditor Agreement exists as part of the above mentioned loans with agencies of the State of Ohio. The OAQDA and ODSA 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 of these loans through at least June 30, 2015.

	During 2006, the Company was approved for a 166 Direct Loan from the Ohio Department of Development, now known as the 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. On August 8, 2013, ODSA and the Company agreed to a modification to the payment schedule. Interest and servicing payments of approximately $400 were paid monthly from August 2013 through January 2014. Beginning in February 2014, monthly payments of approximately $6,100, including principal, interest and servicing fee are payable 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 June 30, 2014 the loan had a balance of $118,416. This loan is also subject to certain covenants, including job creation and retention. The Company expects to maintain compliance with all covenants of this loan through at least June 30, 2015.

Income_Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2014
Income Tax Disclosure [Abstract]	'
Income Tax Disclosure [Text Block]	'
	Note 8.	Income Taxes

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

			Three months ended				Six months ended
			June 30,				June 30,
			2014		2013		2014		2013
	Federal - deferred		$	-	$	-	$	-	$	-
	State and local			-1,037		38		-1,619		-
			$	-1,037	$	38	$	-1,619	$	-

	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 June 30, 2014 and December 31, 2013. The Company has net operating loss carryforwards available for federal and state tax purposes of approximately $3,900,000 which expire in varying amounts through 2032.

Liquidity

Liquidity	6 Months Ended
	Jun. 30, 2014
Liquidity Disclosures [Abstract]	'
Liquidity Disclosures [Text Block]	'
	Note 9.	Liquidity

	Management has forecasted revenues and related costs as well as investing plans and financing needs to determine liquidity to meet cash flow requirements and believes the Company will have sufficient liquidity at least through June 30, 2015. This forecast was based on current cash levels and debt obligations, and the 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 the Company believes will occur.

	The Company entered into new capital lease agreements of approximately $396,000 during the first half of 2014 to support increasing sales to its core customers. At this time the Company does not have nor need any other available sources of additional external funding.

Common_Stock_and_Stock_Options1

Common Stock and Stock Options (Tables)	6 Months Ended
Common Stock and Stock Options (Tables)	Jun. 30, 2014
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, Stock Options, Activity [Table Text Block]	'

	Employee Stock Options
			Weighted
			Average
		Stock Options	Exercise Price

	Outstanding at January 1, 2013	592,250	$	5.23
	Expired	-250		1
	Forfeited	-105,500		5.37
	Outstanding at December 31, 2013	486,500	$	5.2
	Expired	-55,000		2.78
	Outstanding at June 30, 2014	431,500	$	5.51
	Options exercisable at December 31, 2013	304,250	$	4.73
	Options exercisable at June 30, 2014	285,700	$	5.26


Non Employee Director Stock Options [Member]	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	'
	Non-Employee Director Stock Options
			Weighted
			Average
		Stock Options	Exercise Price

	Outstanding at January 1, 2013	250,000	$	3.87
	Expired	-30,000		1
	Outstanding at December 31, 2013	220,000	$	4.26
	Expired	-120,000		5.15
	Outstanding at June 30, 2014	100,000	$	3.2
	Options exercisable at December 31, 2013	220,000	$	4.26
	Options exercisable at June 30, 2014	100,000	$	3.2

Inventories_Tables

Inventories (Tables)	6 Months Ended
Inventories (Tables)	Jun. 30, 2014
Inventory Disclosure [Abstract]	'
Schedule of Inventory, Current [Table Text Block]	'
	Inventories consisted of the following:	June 30,		December 31,
		2014		2013
		(unaudited)
	Raw materials	$	587,514	$	1,174,945
	Work-in-process		409,189		532,044
	Finished goods		149,809		137,614
	Inventory reserve		-176,863		-134,863
		$	969,649	$	1,709,740

Earnings_Per_Share_Tables

Earnings Per Share (Tables)	6 Months Ended
Earnings Per Share (Tables)	Jun. 30, 2014
Earnings Per Share [Abstract]	'
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	'
	The following is provided to reconcile the earnings per share calculations:

		Three months ended June 30,				Six months ended June 30,
		2014		2013		2014		2013

	Income (loss) applicable to common shares	$	44,496	$	-63,602	$	65,730	$	-331,196

	Weighted average common shares outstanding - basic		3,861,222		3,835,997		3,858,575		3,832,964

	Effect of dilution		-		-		-		-

	Weighted average shares outstanding - diluted		3,861,222		3,835,997		3,858,575		3,832,964

Income_Taxes_Tables

Income Taxes (Tables)	6 Months Ended
Income Taxes (Tables)	Jun. 30, 2014
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 six months ended June 30:

		Three months ended				Six months ended
		June 30,				June 30,
		2014		2013		2014		2013
	Federal - deferred	$	-	$	-	$	-	$	-
	State and local		-1,037		38		-1,619		-
		$	-1,037	$	38	$	-1,619	$	-

Common_Stock_and_Stock_Options2

Common Stock and Stock Options (Details) (Employee Stock Option [Member], USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Employee Stock Option [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Outstanding - Stock Options, Beginning Balance	486,500	592,250
Expired - Stock Options	-55,000	-250
Forfeited - Stock Options	'	-105,500
Outstanding - Stock Options, Ending Balance	431,500	486,500
Options exercisable - Stock Options	285,700	304,250
Outstanding - Weighted Average Exercise Price, Beginning Balance	$5.20	$5.23
Expired - Weighted Average Exercise Price	$2.78	$1
Forfeited - Weighted Average Exercise Price	'	$5.37
Outstanding - Weighted Average Exercise Price, Ending Balance	$5.51	$5.20
Options exercisable - Weighted Average Exercise Price	$5.26	$4.73

Common_Stock_and_Stock_Options3

Common Stock and Stock Options (Details 1) (Non Employee Director Stock Options [Member], USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Non Employee Director Stock Options [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Outstanding - Stock Options, Beginning Balance	220,000	250,000
Expired - Stock Options	-120,000	-30,000
Outstanding - Stock Options, Ending Balance	100,000	220,000
Options exercisable - Stock Options	100,000	220,000
Outstanding - Weighted Average Exercise Price, Beginning Balance	$4.26	$3.87
Expired - Weighted Average Exercise Price	$5.15	$1
Outstanding - Weighted Average Exercise Price, Ending Balance	$3.20	$4.26
Options exercisable - Weighted Average Exercise Price	$3.20	$4.26

Common_Stock_and_Stock_Options4

Common Stock and Stock Options (Details Textual) (USD $)	3 Months Ended		6 Months Ended
Common Stock and Stock Options (Details Textual) (USD $)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Share-based Compensation, Total	$41,763	$34,296	$85,236	$69,731
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, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price	$5.08	'	$5.08	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	'	'	'3 years 6 months	'
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total	512,862	'	512,862	'
Common Stock [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Stock Issued During Period, Shares, New Issues (in shares)	'	'	10,500	12,000
Stock Issued During Period, Value, New Issues	'	'	$11,970	$19,140

Preferred_Stock_Details_Textua

Preferred Stock (Details Textual) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
Preferred Stock (Details Textual) (USD $)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Dividends on preferred stock	$6,038	$6,038	$12,076	$12,076	'
Series B Preferred Stock [Member]	'	'	'	'	'
Dividends on preferred stock	6,038	6,038	12,076	12,076	'
Accrued Dividends	'	'	$205,292	'	$193,216
Convertible Preferred Stock Series B [Member]	'	'	'	'	'
Preferred Stock, Dividend Rate, Percentage	'	'	10.00%	'	'

Inventories_Details

Inventories (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Inventory [Line Items]	'	'
Raw materials	$587,514	$1,174,945
Work-in-process	409,189	532,044
Finished goods	149,809	137,614
Inventory reserve	-176,863	-134,863
Inventory, Net	$969,649	$1,709,740

Earnings_Per_Share_Details

Earnings Per Share (Details) (USD $)	3 Months Ended		6 Months Ended
Earnings Per Share (Details) (USD $)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income (loss) applicable to common shares	$44,496	($63,602)	$65,730	($331,196)
Weighted average common shares outstanding - basic	3,861,222	3,835,997	3,858,575	3,832,964
Effect of dilution	0	0	0	0
Weighted average shares outstanding - diluted	3,861,222	3,835,997	3,858,575	3,832,964

Notes_Payable_Details_Textual

Notes Payable (Details Textual) (USD $)

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Jan. 31, 2014

Dec. 31, 2010

Jun. 30, 2014

Mar. 31, 2014

Mar. 20, 2012

Dec. 31, 2010

Jun. 30, 2014

Jan. 31, 2014

Dec. 31, 2006

Aug. 08, 2013

Dec. 31, 2006

Dec. 31, 2010

Jun. 30, 2014

Promissory Note [Member]

Ohio Department Of Development Loan Two [Member]

Ohio Air Quality Development Authority [Member]

Ohio Department Of Development Loan One [Member]

Promissory Note Issue Two [Member]

Ohio Development Services Agency Loan One [Member]

Ohio Development Services Agency Loan Two [Member]

Subsequent Event [Member]

Ohio Department Of Development Loan Two [Member]

Ohio Department Of Development Loan One [Member]

Debt Conversion [Line Items]

Debt Instrument, Basis Spread on Variable Rate

4.00%

Debt Instrument, Maturity Date

5-Aug-16

Notes Payable to Bank

$128,257

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

368,906

1,400,000

400,000

Line of Credit Facility, Frequency of Payment and Payment Terms

'84 months

Line of Credit Facility, Interest Rate During Period

3.00%

Line of Credit Facility, Amount Outstanding

94,667

567,184

268,053

118,416

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

3,800

Line of Credit Facility, Maximum Borrowing Capacity

744,250

Line Of Credit Facility Interest And Servicing Payments

1,656

2,121

400

Line of Credit Facility, Maximum Amount Outstanding During Period

$50,400

$71,900

$42,200

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended		6 Months Ended
Income Taxes (Details) (USD $)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Tax Contingency [Line Items]	'	'	'	'
Federal - deferred	$0	$0	$0	$0
State and local	-1,037	38	-1,619	0
Income Tax Expense (Benefit)	($1,037)	$38	($1,619)	$0

Income_Taxes_Details_Textual

Income Taxes (Details Textual) (USD $)	6 Months Ended
Income Taxes (Details Textual) (USD $)	Jun. 30, 2014
Income Tax Contingency [Line Items]	'
Deferred Tax Assets, Operating Loss Carryforwards, State and Local	$3,900,000
Operating Loss Carryforward Expiration Year	'2032

Liquidity_Details_Textual

Liquidity (Details Textual) (Sales [Member], USD $)	Jun. 30, 2014
Sales [Member]	'
Liquidity [Line Items]	'
Capital Lease Agreements	$396,000