SCI Engineered Materials (SCIA) 10-Q 31 Oct 18 2018 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 30, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Entity Registrant Name	SCI Engineered Materials, Inc.
Entity Central Index Key	830,616
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Trading Symbol	SCIA
Entity Common Stock, Shares Outstanding		4,239,326
Entity Emerging Growth Company	false
Entity Small Business	true

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current Assets
Cash	$ 2,262,742	$ 920,802
Accounts receivable, less allowance for doubtful accounts of $15,000	356,432	336,009
Inventories	2,245,691	617,444
Prepaid expenses	530,794	138,175
Total current assets	5,395,659	2,012,430
Property and Equipment, at cost
Machinery and equipment	8,016,072	7,824,563
Furniture and fixtures	127,610	132,543
Leasehold improvements	360,225	327,904
Construction in progress	115,491	22,504
Property, Plant and Equipment, Gross	8,619,398	8,307,514
Less accumulated depreciation	(6,626,510)	(6,422,448)
Property, Plant and Equipment, Net	1,992,888	1,885,066
Other Assets	62,202	52,078
TOTAL ASSETS	7,450,749	3,949,574
Current Liabilities
Capital lease obligations, current portion	133,891	129,500
Notes payable, current portion	81,889	221,105
Accounts payable	429,291	307,498
Customer deposits	3,259,836	407,956
Accrued compensation	174,695	83,314
Accrued expenses and other	121,094	138,662
Total current liabilities	4,200,696	1,288,035
Capital lease obligations, net of current portion	167,237	181,744
Total liabilities	4,367,933	1,469,779
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	508,400	514,438
Common stock, no par value, authorized 15,000,000 shares; 4,239,326 and 4,185,839 shares issued and outstanding, respectively	10,205,526	10,131,307
Additional paid-in capital	2,281,941	2,289,474
Accumulated deficit	(9,913,051)	(10,455,424)
Total shareholders' equity	3,082,816	2,479,795
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 7,450,749	$ 3,949,574

BALANCE SHEETS _Parenthetical_

BALANCE SHEETS [Parenthetical] - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Allowance for doubtful accounts (in dollars)	$ 15,000	$ 15,000
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	4,239,326	4,185,839
Common stock, shares outstanding	4,239,326	4,185,839
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
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue	$ 2,652,635	$ 1,978,014	$ 7,043,244	$ 5,261,428
Cost of revenue	1,986,751	1,607,095	5,125,819	4,090,677
Gross profit	665,884	370,919	1,917,425	1,170,751
General and administrative expense	310,464	244,062	840,171	754,612
Research and development expense	98,514	90,927	252,049	252,714
Marketing and sales expense	110,209	51,421	260,805	126,891
Income (loss) from operations	146,697	(15,491)	564,400	36,534
Interest income (expense)	2,015	(9,862)	(10,949)	(32,066)
Income (loss) before provision for income taxes	148,712	(25,353)	553,451	4,468
Income tax	4,586	0	11,078	948
Net income (loss)	144,126	(25,353)	542,373	3,520
Dividends on preferred stock	6,038	6,038	18,114	18,114
INCOME (LOSS) APPLICABLE TO COMMON SHARES	$ 138,088	$ (31,391)	$ 524,259	$ (14,594)
Income (loss) per common share
Basic (in dollars per share)	$ 0.03	$ (0.01)	$ 0.12	$ 0
Diluted (in dollars per share)	$ 0.03	$ (0.01)	$ 0.12	$ 0
Weighted average shares outstanding
Basic (in shares)	4,232,214	4,149,537	4,214,573	4,126,478
Diluted (in shares)	4,294,214	4,149,537	4,228,943	4,126,478

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 542,373	$ 3,520
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and accretion	344,163	344,089
Amortization	2,142	7,079
Stock based compensation	83,960	149,052
Net loss on disposal of equipment	275	0
Inventory reserve	(27,759)	(6,000)
Changes in operating assets and liabilities:
Accounts receivable	(20,423)	37,883
Inventories	(1,600,487)	(486,704)
Prepaid expenses	(392,619)	(11,384)
Other assets	(11,480)	948
Accounts payable	121,793	25,639
Accrued expenses and customer deposits	2,923,898	578,750
Net cash provided by operating activities	1,965,836	642,872
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(345,140)	(76,577)
Net cash used in investing activities	(345,140)	(76,577)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of common stock options	840	0
Principal payments on capital lease obligations and notes payable	(255,444)	(240,156)
Payment of cumulative dividends on preferred stock	(24,152)	0
Net cash used in financing activities	(278,756)	(240,156)
NET INCREASE IN CASH	1,341,940	326,139
CASH - Beginning of period	920,802	730,352
CASH - End of period	2,262,742	1,056,491
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for: Interest	18,774	32,427
Cash paid during the period for: Income taxes	11,078	948
SUPPLEMENTAL DISCLOSURES OF NONCASH FINANCING ACTIVITIES
Property and equipment purchased by capital lease	105,325	103,550
Increase in asset retirement obligation	$ 1,796	$ 914

Business Organization and Purpo

Business Organization and Purpose	9 Months Ended
	Sep. 30, 2018
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, and Transparent Electronics). Substantially all of the Company’s revenues are generated from customers with multi-national operations. Through collaboration with end users and Original Equipment Manufacturers the Company develops innovative customized solutions enabling commercial success.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	Note 2. Summary of Significant Accounting Policies Basis of Presentation - 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, 2017. Interim results are not necessarily indicative of results for the full year. Use of Estimates - 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.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	Note 3. Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which modified lease accounting for both lessees and lessors to increase transparency and comparability by recognizing lease assets and lease liabilities by lessees for those leases classified as operating leases under previous accounting standards and disclosing key information about leasing arrangements. ASU 2016-02 will be effective for the Company beginning in its first quarter of 2019, and early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2016-02 on its financial statements. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date,” which revises the effective date of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” (“ASU 2014-09”) to interim and annual periods beginning after December 15, 2017, with early adoption permitted no earlier than interim and annual periods beginning after December 15, 2016. In May 2014, the FASB issued ASU 2014-09, which amends current revenue guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company’s analysis of sales contracts under ASC 606 supports the recognition of revenue at a point in time, typically when title passes to the customer upon shipment, which is consistent with the previous revenue recognition model. 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 adopted this guidance as of January 1, 2018 utilizing the modified retrospective approach method as applied to customer contracts that were not completed as of January 1, 2018. As a result financial information for reporting periods beginning on or after January 1, 2018 are presented in accordance with ASC 606, while comparative financial information has not been adjusted and continues to be reported in accordance with the Company’s revenue recognition policies prior to the adoption of ASC 606. Implementation of the standard did not have a material impact on the Company’s financial statements as the Company’s method for recognizing revenue subsequent to the implementation of ASC 606 does not vary significantly from its revenue recognition practices under the prior revenue standard. Accordingly, there was no required cumulative adjustment to retained earnings as of January 1, 2018. 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 less than 45 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. Sales commissions are expensed when incurred and recorded within marketing and sales expenses. 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. During the three months ended September 30, 2018 and 2017, revenue from the Photonics market was approximately 71.5% and 94.8% of total revenue, respectively. During the nine months ended September 30, 2018 and 2017, revenue from the Photonics market was approximately 80.1% and 95.8% of total revenue, respectively. The balance of the revenue in these periods was almost entirely from the Thin Film Solar market. The top two customers represented approximately 62.6% and 82.3% of total revenue for the nine months ended September 30, 2018 and 2017, respectively. International shipments resulted in 19.6% and 6.5% of total revenue for the first nine months of 2018 and 2017, respectively.

Common Stock and Stock Options

Common Stock and Stock Options	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	Note 4. Common Stock and Stock Options Stock based 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 $40,491 and $51,521 for the three months ended September 30, 2018 and 2017, respectively. Non cash stock based compensation expense was $83,960 and $149,052 for the nine months ended September 30, 2018 and 2017, respectively. Unrecognized compensation expense was $37,908 as of September 30, 2018 and will be recognized through 2023. There was no tax benefit recorded for this compensation cost as t he 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 52,487 and 66,609 aggregate shares of common stock of the Company during the nine months ended September 30, 2018 and 2017, respectively. The stock had an aggregate value of $73,380 and $58,984 for the nine months ended September 30, 2018 and 2017, respectively, and was recorded as non-cash stock compensation expense in the financial statements. The cumulative status of options granted and outstanding at September 30, 2018, and December 31, 2017, 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, 2017 397,671 $ 4.39 Exercised (16,224 ) 0.84 Outstanding at December 31, 2017 381,447 $ 4.54 Granted 41,719 1.25 Exercised (1,000 ) 0.84 Expired (5,000 ) 3.10 Outstanding at September 30, 2018 417,166 $ 4.24 Options exercisable at December 31, 2017 303,829 $ 5.03 Options exercisable at September 30, 2018 324,979 $ 5.15 Exercise prices for options ranged from $0.84 to $6.00 at September 30, 2018. The weighted average option price for all options outstanding at September 30, 2018, was $4.24 with a weighted average remaining contractual life of 2.6 years. There were no non-employee stock options outstanding during 2018 or 2017.

Preferred Stock

Preferred Stock	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Preferred Stock [Text Block]	Note 5. Preferred Stock Dividends on the Series B preferred stock accrue at 10% annually on the outstanding shares. Dividends on the Series B preferred stock were $6,038 for the three months ended September 30, 2018 and 2017 and $18,114 for the nine months ended September 30, 2018 and 2017. The Company had accrued dividends on Series B preferred stock of $259,634 at September 30, 2018, and $265,672 at December 31, 2017. These amounts are included in Convertible preferred stock, Series B on the balance sheet at September 30, 2018 and December 31, 2017. In July 2018, a cash dividend in the amount of $24,152 was paid of record as of June 30, 2018.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	Note 6. Inventories Inventories consisted of the following: September 30, December 31, 2018 2017 (unaudited) Raw materials $ 1,061,892 $ 141,733 Work-in-process 1,117,396 370,318 Finished goods 94,643 161,393 Inventory reserve (28,240 ) (56,000 ) $ 2,245,691 $ 617,444

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	Note 7. Earnings Per Share Basic income per share is calculated as income 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 and nine months ended September 30, 2018 and 2017, all convertible preferred stock and common stock options listed in Note 4 that were out-of-the-money or anti-dilutive were excluded from diluted earnings per share. The following is provided to reconcile the earnings per share calculations: Three months ended Sept. 30, Nine months ended Sept. 30, 2018 2017 2018 2017 Income (loss) applicable to common shares $ 138,088 $ (31,391 ) $ 524,259 $ (14,594 ) Weighted average common shares outstanding - basic 4,232,214 4,149,537 4,214,573 4,126,478 Effect of dilution 62,000 - 14,370 - Weighted average shares outstanding - diluted 4,294,214 4,149,537 4,228,943 4,126,478

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	Note 8. Notes Payable 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. As of September 30, 2018 there was an outstanding balance of $81,889 on this loan. A payment of approximately $10,400, including principal, interest and servicing fee was paid in October 2018. The Company expects to make the final payment of approximately $71,900 in November 2018. This loan is 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 was in compliance with all covenants at September 30, 2018. 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. A final payment of approximately $50,400 was made as scheduled during February 2018 and this loan was repaid in full.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	Note 9. Income Taxes Following is the income tax expense for the three and nine months ended September 30: Three months ended ‎ September 30, Nine months ended ‎ September 30, 2018 2017 2018 2017 Federal - deferred $ - $ - $ - $ - State and local 4,586 - 11,078 948 $ 4,586 $ - $ 11,078 $ 948 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, 2018 and December 31, 2017. The Company has net operating loss carryforwards available for federal and state tax purposes of approximately $4,900,000 which expire in varying amounts through 2037.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation - 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, 2017. Interim results are not necessarily indicative of results for the full year.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates - 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 (Tables)	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based Compensation, Stock Options, Activity [Table Text Block]	The cumulative status of options granted and outstanding at September 30, 2018, and December 31, 2017, 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, 2017 397,671 $ 4.39 Exercised (16,224 ) 0.84 Outstanding at December 31, 2017 381,447 $ 4.54 Granted 41,719 1.25 Exercised (1,000 ) 0.84 Expired (5,000 ) 3.10 Outstanding at September 30, 2018 417,166 $ 4.24 Options exercisable at December 31, 2017 303,829 $ 5.03 Options exercisable at September 30, 2018 324,979 $ 5.15

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventories consisted of the following: September 30, December 31, 2018 2017 (unaudited) Raw materials $ 1,061,892 $ 141,733 Work-in-process 1,117,396 370,318 Finished goods 94,643 161,393 Inventory reserve (28,240 ) (56,000 ) $ 2,245,691 $ 617,444

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2018
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 Sept. 30, Nine months ended Sept. 30, 2018 2017 2018 2017 Income (loss) applicable to common shares $ 138,088 $ (31,391 ) $ 524,259 $ (14,594 ) Weighted average common shares outstanding - basic 4,232,214 4,149,537 4,214,573 4,126,478 Effect of dilution 62,000 - 14,370 - Weighted average shares outstanding - diluted 4,294,214 4,149,537 4,228,943 4,126,478

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	Following is the income tax expense for the three and nine months ended September 30: Three months ended ‎ September 30, Nine months ended ‎ September 30, 2018 2017 2018 2017 Federal - deferred $ - $ - $ - $ - State and local 4,586 - 11,078 948 $ 4,586 $ - $ 11,078 $ 948

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements (Details Textual) - Sales Revenue, Net [Member]	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Photonics market [Member]
Product Information [Line Items]
Concentration Risk, Percentage	71.50%	94.80%	80.10%	95.80%
Top two customers [Member]
Product Information [Line Items]
Concentration Risk, Percentage			62.60%	82.30%
International shipments [Member]
Product Information [Line Items]
Concentration Risk, Percentage			19.60%	6.50%

Common Stock and Stock Option_2

Common Stock and Stock Options (Details) - Employee Stock Options [Member] - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Options, Outstanding, Beginning Balance	381,447	397,671
Stock Options, Granted	41,719
Stock Options, Exercised	(1,000)	(16,224)
Stock Options, Expired	(5,000)
Stock Options, Outstanding, Ending Balance	417,166	381,447
Stock Options, Options exercisable	324,979	303,829
Weighted Average Exercise Price, Outstanding, Beginning Balance	$ 4.54	$ 4.39
Weighted Average Exercise Price, Granted	1.25
Weighted Average Exercise Price, Exercised	0.84	0.84
Weighted Average Exercise Price, Expired	3.10
Weighted Average Exercise Price, Outstanding, Ending Balance	4.24	4.54
Weighted Average Exercise Price, Options exercisable	$ 5.15	$ 5.03

Common Stock and Stock Option_3

Common Stock and Stock Options (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
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)			$ 6
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term			2 years 7 months 6 days
Share-based Compensation	$ 40,491	$ 51,521	$ 83,960	$ 149,052
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 37,908		$ 37,908
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price	$ 4.24		$ 4.24
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues (in shares)			52,487	66,609
Stock Issued During Period, Value, New Issues			$ 73,380	$ 58,984

Preferred Stock (Details Textua

Preferred Stock (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Jul. 31, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Preferred Stock Dividends, Income Statement Impact		$ 6,038	$ 6,038	$ 18,114	$ 18,114
Series B Preferred Stock [Member]
Payments of Dividends	$ 24,152
Preferred Stock, Dividend Rate, Percentage				10.00%
Accrued Dividends				$ 259,634		$ 265,672

Inventories (Details)

Inventories (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Inventory [Line Items]
Raw materials	$ 1,061,892	$ 141,733
Work-in-process	1,117,396	370,318
Finished goods	94,643	161,393
Inventory reserve	(28,240)	(56,000)
Inventory, Net	$ 2,245,691	$ 617,444

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income (loss) applicable to common shares	$ 138,088	$ (31,391)	$ 524,259	$ (14,594)
Weighted average common shares outstanding - basic	4,232,214	4,149,537	4,214,573	4,126,478
Effect of dilution	62,000	0	14,370	0
Weighted average shares outstanding - diluted	4,294,214	4,149,537	4,228,943	4,126,478

Notes Payable (Details Textual)

Notes Payable (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2018	Mar. 20, 2012	Dec. 31, 2010
Ohio Development Services Agency [Member]
Debt Conversion [Line Items]
Line of Credit Facility, Interest Rate During Period	3.00%
Line of Credit Facility, Amount Outstanding	$ 81,889
Servicing Fee Annual Percent Fee	0.25%
Line of Credit Facility, Maximum Borrowing Capacity			$ 744,250
Line of Credit Facility, Final Periodic Payment	$ 10,400
Ohio Development Services Agency [Member] | Line of Credit [Member]
Debt Conversion [Line Items]
Line of Credit Facility, Frequency of Payment and Payment Terms	84 months
Line of Credit Facility, Final Periodic Payment	$ 71,900
Ohio Air Quality Development Authority [Member]
Debt Conversion [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 368,906	$ 1,400,000
Line of Credit Facility, Final Periodic Payment	$ 50,400

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Tax Contingency [Line Items]
Federal - deferred	$ 0	$ 0	$ 0	$ 0
State and local	4,586	0	11,078	948
Income Tax Expense (Benefit)	$ 4,586	$ 0	$ 11,078	$ 948

Income Taxes (Details Textual)

Income Taxes (Details Textual)	9 Months Ended
	Sep. 30, 2018USD ($)
Income Tax Contingency [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards, State and Local	$ 4,900,000
Operating Loss Carry forward Expiration Year	2,037