Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2019 | Jun. 30, 2018 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | SCI Engineered Materials, Inc. | ||
Entity Central Index Key | 830,616 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 4,191,160 | ||
Trading Symbol | SCIA | ||
Entity Common Stock, Shares Outstanding | 4,277,731 | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash | $ 1,802,839 | $ 920,802 |
Accounts receivable Trade, less allowance for doubtful accounts of $15,000 | 477,779 | 336,009 |
Other | 153 | 0 |
Inventories | 2,752,845 | 617,444 |
Prepaid expenses | 613,425 | 138,175 |
Total current assets | 5,647,041 | 2,012,430 |
Property and Equipment, at cost | ||
Machinery and equipment | 8,017,850 | 7,824,563 |
Furniture and fixtures | 127,610 | 132,543 |
Leasehold improvements | 360,225 | 327,904 |
Construction in progress | 138,067 | 22,504 |
Property, Plant and Equipment, Gross | 8,643,752 | 8,307,514 |
Less accumulated depreciation and amortization | (6,720,847) | (6,422,448) |
Property, Plant and Equipment, Net | 1,922,905 | 1,885,066 |
Other Assets | 75,613 | 52,078 |
TOTAL ASSETS | 7,645,559 | 3,949,574 |
Current Liabilities | ||
Capital lease obligations, current portion | 114,853 | 129,500 |
Notes payable, current portion | 0 | 221,105 |
Accounts payable | 321,348 | 307,498 |
Customer deposits | 3,202,447 | 407,956 |
Accrued compensation | 211,227 | 83,314 |
Accrued expenses and other | 125,130 | 138,662 |
Total current liabilities | 3,975,005 | 1,288,035 |
Capital lease obligations, net of current portion | 147,878 | 181,744 |
Total liabilities | 4,122,883 | 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 | 514,438 | 514,438 |
Common stock, no par value, authorized 15,000,000 shares; 4,277,731 and 4,185,839 shares issued and outstanding, respectively | 10,275,733 | 10,131,307 |
Additional paid-in capital | 2,280,060 | 2,289,474 |
Accumulated deficit | (9,547,555) | (10,455,424) |
Total shareholders' equity | 3,522,676 | 2,479,795 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 7,645,559 | $ 3,949,574 |
BALANCE SHEETS _Parenthetical_
BALANCE SHEETS [Parenthetical] - USD ($) | 12 Months Ended | |
Dec. 31, 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 | 4,277,731 | 4,185,839 |
Common stock, shares outstanding | 4,277,731 | 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 ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Total revenue | $ 11,361,575 | $ 6,801,365 |
Total cost of revenue | 8,456,799 | 5,223,814 |
Gross profit | 2,904,776 | 1,577,551 |
General and administrative expense | 1,256,778 | 1,021,155 |
Research and development expense | 351,999 | 330,805 |
Marketing and sales expense | 361,132 | 176,470 |
Income from operations | 934,867 | 49,121 |
Interest | 9,356 | 41,109 |
Income before income taxes | 925,511 | 8,012 |
Income taxes | 17,642 | 1,921 |
Net income | 907,869 | 6,091 |
Dividends on preferred stock | 24,152 | 24,152 |
INCOME (LOSS) APPLICABLE TO COMMON STOCK | $ 883,717 | $ (18,061) |
Income (loss) per common share | ||
Basic (in dollars per share) | $ 0.21 | $ 0 |
Diluted (in dollars per share) | $ 0.21 | $ 0 |
Weighted average shares outstanding | ||
Basic (in shares) | 4,223,865 | 4,138,516 |
Diluted (in shares) | 4,257,131 | 4,138,516 |
STATEMENTS OF SHAREHOLDERS' EQU
STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Convertible Preferred Stock Series B Member [Member] |
Balance at Dec. 31, 2016 | $ 2,272,130 | $ 10,049,823 | $ 2,193,536 | $ (10,461,515) | $ 490,286 |
Accretion of cumulative dividends | 0 | 0 | (24,152) | 0 | 24,152 |
Stock based compensation expense (Note 2K) | 120,090 | 0 | 120,090 | 0 | 0 |
Common stock issued (Note 6) | 81,484 | 81,484 | 0 | 0 | 0 |
Net income | 6,091 | 0 | 0 | 6,091 | 0 |
Balance at Dec. 31, 2017 | 2,479,795 | 10,131,307 | 2,289,474 | (10,455,424) | 514,438 |
Accretion of cumulative dividends | 0 | 0 | (24,152) | 0 | 24,152 |
Stock based compensation expense (Note 2K) | 14,738 | 0 | 14,738 | 0 | 0 |
Proceeds from exercise of stock options (Note 6) | 9,765 | 9,765 | 0 | 0 | 0 |
Payment of cumulative dividends (Note 6) | (24,152) | 0 | 0 | 0 | (24,152) |
Common stock issued (Note 6) | 134,661 | 134,661 | 0 | 0 | 0 |
Net income | 907,869 | 0 | 0 | 907,869 | 0 |
Balance at Dec. 31, 2018 | $ 3,522,676 | $ 10,275,733 | $ 2,280,060 | $ (9,547,555) | $ 514,438 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 907,869 | $ 6,091 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and accretion | 450,180 | 460,637 |
Amortization | 2,763 | 9,439 |
Stock based compensation | 149,399 | 201,574 |
Loss on disposal of equipment | 669 | 0 |
Inventory reserve | (26,259) | (11,640) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (141,923) | (64,177) |
Inventories | (2,109,142) | (229,243) |
Prepaid expenses | (475,250) | (78,972) |
Other assets | (25,511) | (1,458) |
Accounts payable | 13,850 | 155,741 |
Accrued expenses and customer deposits | 2,906,442 | 167,967 |
Net cash provided by operating activities | 1,653,087 | 615,959 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (380,933) | (104,029) |
Net cash used in investing activities | (380,933) | (104,029) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from exercise of stock options | 9,765 | 0 |
Principal payments on capital lease obligations and notes payable | (375,730) | (321,480) |
Payment of cumulative dividends on preferred stock | (24,152) | 0 |
Net cash used in financing activities | (390,117) | (321,480) |
NET INCREASE IN CASH | 882,037 | 190,450 |
CASH - Beginning of year | 920,802 | 730,352 |
CASH - End of year | 1,802,839 | 920,802 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Interest | 22,931 | 41,615 |
Income taxes | 17,642 | 1,921 |
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Property and equipment purchased by capital lease | 105,325 | 103,550 |
Increase in asset retirement obligation | $ 2,431 | $ 1,218 |
Business Organization and Purpo
Business Organization and Purpose | 12 Months Ended |
Dec. 31, 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”, “we” 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 | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Note 2. Summary of Significant Accounting Policies A. Cash - The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash. B. Fair Value of Financial Instruments - The estimated fair value of amounts reported in the financial statements have been determined using available market information and valuation methodologies, as applicable (see Note 9). C. Concentrations of Credit Risk - The Company’s cash balances, which are at times in excess of federally insured levels, are maintained at a large regional bank and a global investment banking group, and are continually monitored to minimize the risk of loss. The Company grants credit to most customers, who are varied in terms of size, geographic location and financial strength. Customer balances are continually monitored to minimize the risk of loss. The Company’s two largest customers accounted for 36% and 17% of total revenue in 2018. These two customers represented 27% of the accounts receivable trade balance at December 31, 2018. The Company expects to collect all outstanding accounts receivables as of December 31, 2018 from these customers. The Company’s two largest customers accounted for 72% and 9% of total revenue in 2017. These two customers represented 65% of the accounts receivable trade balance at December 31, 2017. The Company subsequently collected all outstanding accounts receivables as of December 31, 2017 from these customers. D. Accounts Receivable - The Company extends unsecured credit to customers under normal trade agreements which require payment within 30 days. The Company does not charge interest on delinquent trade accounts receivable. Unless specified by the customer, payments are applied to the oldest unpaid invoice. Accounts receivable are presented at the amount billed. Management estimates an allowance for doubtful accounts, which was $15,000 as of December 31, 2018 and 2017. This estimate is based upon management’s review of delinquent accounts and an assessment of the Company’s historical evidence of collections. Specific accounts are charged directly to the reserve or bad debt expense when management obtains evidence of a customer’s insolvency or otherwise determines that the account is uncollectible. There was no bad debt expense during 2018 and 2017. E. Inventories - Inventories are stated at the lower of cost or market on an acquired or internally produced lot basis, and consist of raw materials, work-in-process and finished goods. Cost includes material, labor, freight and applied overhead. Inventory reserves are established for obsolete inventory, lower of cost or market, and excess inventory quantities based on management’s estimate of net realizable value. The Company had an inventory reserve of $29,741 and $56,000 at December 31, 2018, and 2017, respectively. F. Property and Equipment - Property and equipment are carried at cost. Depreciation is provided using the straight-line method based on the estimated useful lives of the assets. Useful lives range from three years on computer equipment to sixteen years on certain equipment. Leasehold improvements are amortized over the shorter of the estimated useful life or the term of the lease. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the fair value is less than the carrying amount of the asset, a loss is recognized for the difference. There was no property and equipment considered impaired during 2018 or 2017. G. Deferred Financing Costs - Deferred financing costs are amortized over the term of the related debt using the straight-line method, the result of which is not materially different from the use of the interest method. Deferred financing costs were $0 and $787 at December 31, 2018 and 2017, respectively. The related amortization of these costs for the years ended December 31, 2018 and 2017, was $787 and $9,439, respectively, and is included in interest expense on the statements of operations. H. Intangible Assets - The Company reviews intangible assets for impairment and performs detailed testing whenever impairment indicators are present. If necessary, an impairment loss is recorded for the excess of carrying value over fair value. There were no intangible assets considered impaired during 2018 or 2017. Our patent titled “Process for the removal of contaminants from sputtering target substrates” (US patent No. 10,138,545 B2) was issued on November 27, 2018. This provides a process for the removal of contaminants on a spent sputtering target used in Plasma Vapor Deposition. A patent titled “Display having a transparent conductive oxide layer comprising metal doped zinc oxide applied by sputtering” (US patent No. 9,927,667) was issued on March 27, 2018. The Company holds the rights to a provisional patent and any subsequent patents for this technology related to the application of Zinc based Transparent Conductive Oxide in Displays. Costs incurred to secure patents have been capitalized and amortized over the life of the patents. Cost and accumulated amortization of the patents at December 31, 2018 was $64,481 and $1,977, respectively and cost and accumulated amortization of the patents at December 31, 2017 was $34,935 and $0, respectively. Amortization expense related to patents was $1,977 and $0 for the years ended December 31, 2018 and 2017, respectively. Amortization expense is expected to be at least $2,744 for each of the next five years. I. Debt Issuance Costs - In April 2015, the FASB issued guidance creating ASC Subtopic 835-30, Interest—Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs . The update modifies the presentation of costs of debt issuance as a direct reduction to the face amount of the related reported debt. Debt issuance costs were $0 and $787 at December 31, 2018 and 2017, respectively. This cost was presented on a net basis against notes payable in the accompanying balance sheet. J. Revenue Recognition - 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 2018 and 2017, revenue from the Photonics market was 80% and 94% of total revenue, respectively. The balance of the revenue in each period was almost entirely from the Thin Film Solar market. The top two customers represented 53% and 81% of total revenue during 2018 and 2017, respectively. International shipments resulted in 30% and 8% of total revenue for 2018 and 2017, respectively. K. Stock Based Compensation - Compensation cost for all stock-based awards is based on the grant date fair value and is recognized over the required service (vesting) period. Non cash stock based compensation expense was $149,399 and $201,574 for the years ended December 31, 2018 and 2017, respectively. Non cash stock based compensation expense includes $121,380 and $76,984 for stock grants awarded to the non-employee board members during 2018 and 2017, respectively. Unrecognized compensation expense was $33,750 as of December 31, 2018, and will be recognized through 2023. 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. L. Research and Development - Research and development costs are expensed as incurred. Research and development expense for the years ended December 31, 2018 and 2017, was $351,999 and $330,805, respectively. The Company has new materials under development that may replace the Cadmium Sulfide buffer layer in CIGS solar cells. These materials were tested at Case Western Reserve University and the results support the use of its innovative material in thin film solar applications that could lead to higher efficiencies. The Company continues to invest in developing new products for all of its markets including transparent conductive oxide systems for the thin film solar and display markets as well as transparent electronic products. These efforts include accelerating time to market for those products and involve research and development expense. M. Income Taxes - Income taxes are provided for by utilizing the asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities using presently enacted tax rates. Deferred tax assets are reduced by a valuation allowance which is established when “it is more likely than not” that some portion or all of the deferred tax assets will not be recognized. N. Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used for, but not limited to, the accounting for the allowance for doubtful accounts, inventory allowances, property and equipment depreciable lives, patents and licenses useful lives, revenue recognition, tax valuation, stock based compensation and assessing changes in which impairment of certain long-lived assets may occur. Actual results could differ from those estimates. O. New Accounting Pronouncements – Stock Compensation - In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplified certain aspects of the accounting for share-based payment transactions, including income taxes, classification of awards and classification of the statement of cash flows. ASU 2016-09 became effective for the Company in the first quarter of 2018. There was minimal impact on the financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases. The amendments in ASU 2018-10 clarify, correct or remove inconsistencies in the guidance provided under ASU 2016-02 related to sixteen specific issues identified. Also in July 2018, the FASB issued ASU No. 2018-11, Targeted Improvements to Topic 842. This amendment provides the Company with an additional and optional transition method to adopt the new lease standard. Under this new transition method, the Company can apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption and present the accounting on a prospective or go-forward basis instead of applying to the earliest comparative period presented in the financial statements. The new lease standard will be effective for the Company beginning January 1, 2019. The Company will elect to apply the new transition method upon adoption of the new standard. The Company will also elect the available practical expedients on adoption. The new standard will not have a material impact on the Company’s income statements. The most significant impact of the new standard will be the recognition of an ROU asset and lease liability of approximately $500,000 as of January 1, 2019. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note 3. Inventories Inventories consist of the following at December 31: 2018 2017 Raw materials $ 1,568,487 $ 141,733 Work-in-process 1,144,080 370,318 Finished goods 70,019 161,393 2,782,586 673,444 Reserve for obsolete inventory (29,741 ) (56,000 ) $ 2,752,845 $ 617,444 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note 4. 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 and the term of the loan was 84 months at a fixed interest rate of 3%. There was also a 0.25% annual servicing fee charged monthly on the outstanding principal balance. A final payment of approximately $71,900 was made as scheduled during November 2018 and this loan was repaid in full. 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. Notes payable at December 31, 2017 is included in the accompanying balance sheets as follows: ODSA 166 Direct Loan $ 172,081 OAQDA 166 Direct Loan 49,811 Total notes payable before debt issuance costs 221,892 Debt issuance costs at December 31 787 Total notes payable after debt issuance costs 221,105 Less current portion 221,105 Notes payable, net of current portion $ - In 2018, the Company entered into a line of credit with Huntington Bank for $1 million. The line of credit bears interest at 0.5 percentage points over the Prime Commercial Rate with an expiration date of October 5, 2019. At December 31, 2018, no amounts were drawn on the line of credit. |
Lease Obligations
Lease Obligations | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Note 5. Lease Obligations Operating The Company leases its facilities and certain office equipment under agreements classified as operating leases expiring at various dates through 2024. Rent expense, which includes various monthly rentals for the years ended December 31, 2018 and 2017, totaled $176,142 and $194,209, respectively. Future minimum lease payments at December 31, 2018, are as follows: 2019 $ 107,512 2020 108,123 2021 110,370 2022 112,617 2023 and beyond 217,089 Total minimum lease payments $ 655,711 Capital The Company also leases certain equipment under capital leases. Future minimum lease payments, by year, with the present value of such payments, as of December 31, 2018, are shown in the following table. 2019 $ 124,987 2020 86,052 2021 69,641 2022 and beyond - Total minimum lease payments 280,680 Less amount representing interest 17,949 Present value of minimum lease payments 262,731 Less current portion 114,853 Capital lease obligations, net of current portion $ 147,878 The equipment under capital lease at December 31 is included in the accompanying balance sheets as follows: 2018 2017 Machinery and equipment $ 725,036 $ 706,050 Less accumulated depreciation and amortization 222,973 194,588 Net book value $ 502,063 $ 511,462 These assets are amortized over a period of ten years using the straight-line method and amortization is included in depreciation expense. The capital leases are structured such that ownership of the leased asset reverts to the Company at the end of the lease term. Accordingly, leased assets are depreciated using the Company's normal depreciation methods and lives. In 2018, ownership of certain assets were transferred to the Company in accordance with the terms of the leases and these assets have been excluded from the leased asset disclosure above. |
Common and Preferred Stock
Common and Preferred Stock | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Note 6. Common and Preferred Stock Common Stock During 2018, the non-employee board members received 67,487 shares of common stock of the Company with an aggregate value of $121,380. This was recorded as non-cash stock compensation expense in the financial statements. During 2017, the non-employee board members received compensation of 84,406 shares and officers received 4,500 shares of common stock of the Company. The stock had an aggregate value of $81,484 and was recorded as non-cash stock compensation expense in the financial statements. Preferred Stock Shares of preferred stock authorized and outstanding at December 31, 2018 and 2017, were as follows: Shares Shares Authorized Outstanding Cumulative Preferred Stock 10,000 - Voting Preferred Stock 125,000 - Cumulative Non-Voting Preferred Stock 125,000 (a) 24,152 (a) Includes 700 shares of Series A Preferred Stock and 100,000 shares of Convertible Series B Preferred Stock authorized for issuance. In January 1996, the Company completed an offering of 70,000 shares of $10 stated value 1995 Series B 10% cumulative non-voting convertible preferred stock. The shares are convertible to common shares at the rate of $5.00 per share. At the Company’s option, the Series B shares are redeemable at 103% of the stated value plus the amount of any accrued and unpaid cash dividends. There was 24,152 shares outstanding of Series B convertible preferred stock at December 31, 2018 and 2017. In June 2018, the Board of Directors approved a cash dividend in the amount of $24,152 to shareholders of record as of June 8, 2018 that was paid in July 2018. The Board of Directors voted to authorize the payment of a cash dividend of $24,152 on convertible preferred stock, Series B, to shareholders of record as of December 31, 2018 to be paid in June 2019. Included in accrued expenses at December 31, 2018 was the accrual of $24,152 for the dividend to be paid in 2019. The Company had accrued dividends of $265,672 at December 31, 2018 and 2017. These amounts were included in convertible preferred stock, Series B on the balance sheet at December 31, 2018 and 2017. Earnings Per Share Basic income (loss) per share is calculated as income available (loss attributable) to common shareholders divided by the weighted average of common shares outstanding. Diluted earnings per share is calculated as diluted income available (loss attributable) to common stockholders divided by the diluted weighted average number of common shares outstanding. Diluted weighted average number of common shares gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. Diluted earnings per share exclude all diluted potential shares if their effect is anti-dilutive. For the year ended December 31, 2017, all convertible and preferred stock and common stock options listed in Note 7 were excluded from diluted earnings per share due to being out-of-the-money or anti-dilutive. Following is a summary of employee and director outstanding stock options outstanding and preferred stock, Series B at December 31. 2018 2017 Options 407,566 381,447 Preferred Stock, Series B 24,152 24,152 431,718 405,599 The following is provided to reconcile the earnings per share calculations: 2018 2017 Income (loss) applicable to common stock $ 883,717 $ (18,061 ) Weighted average common shares outstanding - basic 4,223,865 4,138,516 Effect of dilutions - stock options 33,266 - Weighted average shares outstanding - diluted 4,257,131 4,138,516 |
Stock Option Plans
Stock Option Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 7. Stock Option Plans On June 10, 2011, shareholders approved the SCI Engineered Materials, Inc. 2011 Stock Incentive Plan (the “2011 Plan”). The Company adopted the 2011 Plan as incentive to key employees, directors and consultants under which options to purchase up to 250,000 shares of the Company’s common stock may be granted, subject to the execution of stock option agreements. Incentive stock options may be granted to key employees of the Company and non-statutory options may be granted to directors who are not employees and to consultants and advisors who render services to the Company. Options may be exercised for periods up to 10 years from the date of grant at prices not less than 100% of fair market value on the date of grant. As of December 31, 2018, there were 41,719 stock options outstanding from the 2011 Plan which expire in May 2028. On June 9, 2006, shareholders approved the Superconductive Components, Inc. 2006 Stock Incentive Plan. The Company adopted the 2006 Plan as incentive to key employees, directors and consultants under which options to purchase up to 600,000 shares of the Company’s common stock may be granted, subject to the execution of stock option agreements. Incentive stock options may be granted to key employees of the Company and non-statutory options may be granted to directors who are not employees and to consultants and advisors who render services to the Company. Options may be exercised for periods up to 10 years from the date of grant at prices not less than 100% of fair market value on the date of grant. As of December 31, 2018, there were 365,847 stock options outstanding from the 2006 Plan which expire at various dates through November 2024. The cumulative status at December 31, 2018 and 2017, of options granted and outstanding, as well as options which became exercisable in connection with the Stock Option Plans is summarized as follows: Employee Stock Options Stock Options Weighted Average Exercise Price Weighted Average Contractual Term (yrs) Aggregate Intrinsic Value 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 (21,225 ) 0.84 Expired (5,000 ) 3.10 Outstanding at December 31, 2018 396,941 $ 4.41 2.2 $ - Options exercisable at December 31, 2018 329,988 $ 5.09 1.0 $ - Options exercisable at December 31, 2017 303,829 $ 5.03 2.0 $ - Options expected to vest 66,953 $ 1.10 8.0 $ - There were no Non-Employee Director Stock Options outstanding at December 31, 2018 and 2017. Information related to the weighted average fair value of nonvested stock options for the year ended December 31, 2018 is as follows: Stock Options Weighted Average Exercise Price Employee Stock Options Nonvested options at January 1, 2018 77,618 $ 2.64 Granted 41,719 1.25 Vested (52,384 ) 3.51 Nonvested options at December 31, 2018 66,953 $ 1.10 Exercise prices range from $0.84 to $6.00 for options at December 31, 2018. The weighted average option price for all options outstanding was $4.41 with a weighted average remaining contractual life of 2.2 years at December 31, 2018. The weighted average option price for all options outstanding was $4.54 with a weighted average remaining contractual life of 2.6 years at December 31, 2017. The weighted average fair value at date of grant for options granted during 2018 was $1.25, and was established using the Black-Scholes option valuation method with the following weighted average assumptions: Expected life in years 5.0 Interest rate 2.7 % Volatility 62.3 % Dividend yield 0 % |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 8. Income Taxes Deferred tax assets and liabilities result from temporary differences in the recognition of income and expense for tax and financial reporting purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows at December 31. 2018 2017 Deferred tax assets NOL carryforwards $ 781,000 $ 1,038,000 General business credits carryforwards 288,000 244,000 Stock based compensation 92,000 64,000 UNICAP 56,000 30,000 Allowance for doubtful accounts 3,000 3,000 Reserve for obsolete inventories 6,000 12,000 Reserve for asset retirement 14,000 14,000 Property and equipment (145,000 ) (159,000 ) 1,095,000 1,246,000 Valuation allowance (1,095,000 ) (1,246,000 ) Net $ - $ - The Tax Cuts and Jobs Act was enacted on December 22. 2017. The Act reduces the U.S, federal corporate tax rate from 35% to 21%. Accordingly, the Company modified the value of deferred tax assets and liabilities including the net operating loss carryover benefit at December 31, 2017. Prior to enactment of the new tax reform, the Company had total net deferred tax assets of $1,912,000 before full valuation reserve at December 31, 2017. Taking the new tax reform into consideration, the total net deferred tax assets was $1,246,000 before full valuation reserve at December 31, 2017. A valuation allowance has been recorded against the realizability of the net deferred tax asset such that no value is recorded for the asset in the accompanying financial statements. The valuation allowance totaled $1,095,000 and $1,246,000 at December 31, 2018 and 2017, respectively. The Company had net operating loss carryforwards available for federal and state tax purposes of approximately $3,700,000 and $4,900,000 at December 31, 2018 and 2017, respectively, which expire in varying amounts through 2038. For the years ended December 31, 2018 and 2017, a reconciliation of the statutory rate and effective rate for the provisions for income taxes consists of the following: Percentage 2018 2017 Federal statutory rate 21.0 % 35.0 % State/city tax 1.9 24.0 Non-deductible expense 0.6 532.6 Valuation allowance (21.6 ) (567.6 ) Effective rate 1.9 % 24.0 % Components of the income tax provision are as follows: 2018 2017 Current $ 17,642 $ 1,921 Deferred: NOL utilization/expiration under 2017 tax law 257,000 87,247 General business credits (44,000 ) (23,087 ) Other temporary differences (62,000 ) (43,756 ) Change in valuation allowance (151,000 ) (20,404 ) Change in NOL benefit due to 2018 Tax Reform - 691,695 Change in temporary differences due to 2018 Tax Reform - (25,595 ) Change in valuation allowance due to 2018 Tax Reform - (666,100 ) Total $ 17,642 $ 1,921 The Company follows guidance issued by the Financial Accounting Standards Board (“FASB ASC 740”) with respect to accounting for uncertainty in income taxes. A tax position is recognized as a benefit only if it is “more-likely-than-not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than fifty percent likely of being realized on examination. For tax positions not meeting the “more-likely-than-not” test, no tax benefit is recorded. The Company has no unrecognized tax benefits under guidance related to tax uncertainties. The Company does not anticipate the unrecognized tax benefits will significantly change in the next twelve months. Any tax penalties or interest expense will be recognized in income tax expense. No interest and penalties related to unrecognized tax benefits were accrued at December 31, 2018 and 2017. The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. The Company is open to federal and state tax audits until the applicable statute of limitations expire. There are currently no federal or state income tax examinations underway for the Company. The tax years 2015 through 2018 remain open to examination by the major taxing jurisdictions in which the Company operates. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Note 9. Fair Value of Financial Instruments The fair value of financial instruments represents the price that would be received to sell an asset or paid to transfer a liability (an exit price), and not the price that would be paid to acquire an asset or received to assume a liability (an entry price). Significant differences can arise between the fair value and carrying amount of financial instruments that are recognized at historical cost amounts. The following methods and assumptions were used by the Company in estimating fair value disclosures for financial instruments: Cash and cash equivalents, short-term notes payable and capital lease obligations and current maturities of long-term notes payable and capital lease obligations: Amounts reported in the balance sheet approximate fair market value due to the short maturity of these instruments. Long-term note payable and capital lease obligations: Amounts reported in the balance sheet approximate fair value as the interest rates on the obligations range from 3.9% to 6.2%, which approximates current fair market rates. |
Asset Retirement Obligation
Asset Retirement Obligation | 12 Months Ended |
Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation Disclosure [Text Block] | Note 10. Asset Retirement Obligation Included in machinery and equipment is various production equipment, which per the Company’s building lease, is required to be removed upon termination of the related lease. Included in accrued expenses in the accompanying balance sheet is the asset retirement obligation that represents the expected present value of the liability to remove this equipment. There are no assets that are legally restricted for purposes of settling this asset retirement obligation. Following is a reconciliation of the aggregate retirement liability associated with the Company’s obligation to dismantle and remove the machinery and equipment associated with its lease: Balance at January 1, 2017 $ 65,578 Increase in present value of the obligation (accretion expense in the corresponding amount charged against earnings) 1,218 Balance at December 31, 2017 $ 66,796 Increase in present value of the obligation (accretion expense in the corresponding amount charged against earnings) 2,431 Balance at December 31, 2018 $ 69,227 |
Purchase Commitment
Purchase Commitment | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase Commitment [Text Block] | Note 11. Purchase Commitment The Company entered into a purchase commitment in the amount of $168,885 for an in-plant office structured mezzanine. Work on the structure is expected to begin in January 2019 and be completed late first quarter or early second quarter of 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents, Policy [Policy Text Block] | A. Cash - The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | B. Fair Value of Financial Instruments - The estimated fair value of amounts reported in the financial statements have been determined using available market information and valuation methodologies, as applicable (see Note 9). |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | C. Concentrations of Credit Risk - The Company’s cash balances, which are at times in excess of federally insured levels, are maintained at a large regional bank and a global investment banking group, and are continually monitored to minimize the risk of loss. The Company grants credit to most customers, who are varied in terms of size, geographic location and financial strength. Customer balances are continually monitored to minimize the risk of loss. The Company’s two largest customers accounted for 36% and 17% of total revenue in 2018. These two customers represented 27% of the accounts receivable trade balance at December 31, 2018. The Company expects to collect all outstanding accounts receivables as of December 31, 2018 from these customers. The Company’s two largest customers accounted for 72% and 9% of total revenue in 2017. These two customers represented 65% of the accounts receivable trade balance at December 31, 2017. The Company subsequently collected all outstanding accounts receivables as of December 31, 2017 from these customers. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | D. Accounts Receivable - The Company extends unsecured credit to customers under normal trade agreements which require payment within 30 days. The Company does not charge interest on delinquent trade accounts receivable. Unless specified by the customer, payments are applied to the oldest unpaid invoice. Accounts receivable are presented at the amount billed. Management estimates an allowance for doubtful accounts, which was $15,000 as of December 31, 2018 and 2017. This estimate is based upon management’s review of delinquent accounts and an assessment of the Company’s historical evidence of collections. Specific accounts are charged directly to the reserve or bad debt expense when management obtains evidence of a customer’s insolvency or otherwise determines that the account is uncollectible. There was no bad debt expense during 2018 and 2017. |
Inventory, Policy [Policy Text Block] | E. Inventories - Inventories are stated at the lower of cost or market on an acquired or internally produced lot basis, and consist of raw materials, work-in-process and finished goods. Cost includes material, labor, freight and applied overhead. Inventory reserves are established for obsolete inventory, lower of cost or market, and excess inventory quantities based on management’s estimate of net realizable value. The Company had an inventory reserve of $29,741 and $56,000 at December 31, 2018, and 2017, respectively. |
Property, Plant and Equipment, Policy [Policy Text Block] | F. Property and Equipment - Property and equipment are carried at cost. Depreciation is provided using the straight-line method based on the estimated useful lives of the assets. Useful lives range from three years on computer equipment to sixteen years on certain equipment. Leasehold improvements are amortized over the shorter of the estimated useful life or the term of the lease. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the fair value is less than the carrying amount of the asset, a loss is recognized for the difference. There was no property and equipment considered impaired during 2018 or 2017. |
Deferred Charges, Policy [Policy Text Block] | G. Deferred Financing Costs - Deferred financing costs are amortized over the term of the related debt using the straight-line method, the result of which is not materially different from the use of the interest method. Deferred financing costs were $0 and $787 at December 31, 2018 and 2017, respectively. The related amortization of these costs for the years ended December 31, 2018 and 2017, was $787 and $9,439, respectively, and is included in interest expense on the statements of operations. |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | H. Intangible Assets - The Company reviews intangible assets for impairment and performs detailed testing whenever impairment indicators are present. If necessary, an impairment loss is recorded for the excess of carrying value over fair value. There were no intangible assets considered impaired during 2018 or 2017. Our patent titled “Process for the removal of contaminants from sputtering target substrates” (US patent No. 10,138,545 B2) was issued on November 27, 2018. This provides a process for the removal of contaminants on a spent sputtering target used in Plasma Vapor Deposition. A patent titled “Display having a transparent conductive oxide layer comprising metal doped zinc oxide applied by sputtering” (US patent No. 9,927,667) was issued on March 27, 2018. The Company holds the rights to a provisional patent and any subsequent patents for this technology related to the application of Zinc based Transparent Conductive Oxide in Displays. Costs incurred to secure patents have been capitalized and amortized over the life of the patents. Cost and accumulated amortization of the patents at December 31, 2018 was $64,481 and $1,977, respectively and cost and accumulated amortization of the patents at December 31, 2017 was $34,935 and $0, respectively. Amortization expense related to patents was $1,977 and $0 for the years ended December 31, 2018 and 2017, respectively. Amortization expense is expected to be at least $2,744 for each of the next five years. |
Debt, Policy [Policy Text Block] | I. Debt Issuance Costs - In April 2015, the FASB issued guidance creating ASC Subtopic 835-30, Interest—Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs . The update modifies the presentation of costs of debt issuance as a direct reduction to the face amount of the related reported debt. Debt issuance costs were $0 and $787 at December 31, 2018 and 2017, respectively. This cost was presented on a net basis against notes payable in the accompanying balance sheet. |
Revenue Recognition, Policy [Policy Text Block] | J. Revenue Recognition - 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 2018 and 2017, revenue from the Photonics market was 80% and 94% of total revenue, respectively. The balance of the revenue in each period was almost entirely from the Thin Film Solar market. The top two customers represented 53% and 81% of total revenue during 2018 and 2017, respectively. International shipments resulted in 30% and 8% of total revenue for 2018 and 2017, respectively. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | K. Stock Based Compensation - Compensation cost for all stock-based awards is based on the grant date fair value and is recognized over the required service (vesting) period. Non cash stock based compensation expense was $149,399 and $201,574 for the years ended December 31, 2018 and 2017, respectively. Non cash stock based compensation expense includes $121,380 and $76,984 for stock grants awarded to the non-employee board members during 2018 and 2017, respectively. Unrecognized compensation expense was $33,750 as of December 31, 2018, and will be recognized through 2023. 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. |
Research and Development Expense, Policy [Policy Text Block] | L. Research and Development - Research and development costs are expensed as incurred. Research and development expense for the years ended December 31, 2018 and 2017, was $351,999 and $330,805, respectively. The Company has new materials under development that may replace the Cadmium Sulfide buffer layer in CIGS solar cells. These materials were tested at Case Western Reserve University and the results support the use of its innovative material in thin film solar applications that could lead to higher efficiencies. The Company continues to invest in developing new products for all of its markets including transparent conductive oxide systems for the thin film solar and display markets as well as transparent electronic products. These efforts include accelerating time to market for those products and involve research and development expense. |
Income Tax, Policy [Policy Text Block] | M. Income Taxes - Income taxes are provided for by utilizing the asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities using presently enacted tax rates. Deferred tax assets are reduced by a valuation allowance which is established when “it is more likely than not” that some portion or all of the deferred tax assets will not be recognized. |
Use of Estimates, Policy [Policy Text Block] | N. Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used for, but not limited to, the accounting for the allowance for doubtful accounts, inventory allowances, property and equipment depreciable lives, patents and licenses useful lives, revenue recognition, tax valuation, stock based compensation and assessing changes in which impairment of certain long-lived assets may occur. Actual results could differ from those estimates. |
New Accounting Pronouncements, Policy [Policy Text Block] | O. New Accounting Pronouncements – Stock Compensation - In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplified certain aspects of the accounting for share-based payment transactions, including income taxes, classification of awards and classification of the statement of cash flows. ASU 2016-09 became effective for the Company in the first quarter of 2018. There was minimal impact on the financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases. The amendments in ASU 2018-10 clarify, correct or remove inconsistencies in the guidance provided under ASU 2016-02 related to sixteen specific issues identified. Also in July 2018, the FASB issued ASU No. 2018-11, Targeted Improvements to Topic 842. This amendment provides the Company with an additional and optional transition method to adopt the new lease standard. Under this new transition method, the Company can apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption and present the accounting on a prospective or go-forward basis instead of applying to the earliest comparative period presented in the financial statements. The new lease standard will be effective for the Company beginning January 1, 2019. The Company will elect to apply the new transition method upon adoption of the new standard. The Company will also elect the available practical expedients on adoption. The new standard will not have a material impact on the Company’s income statements. The most significant impact of the new standard will be the recognition of an ROU asset and lease liability of approximately $500,000 as of January 1, 2019. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following at December 31: 2018 2017 Raw materials $ 1,568,487 $ 141,733 Work-in-process 1,144,080 370,318 Finished goods 70,019 161,393 2,782,586 673,444 Reserve for obsolete inventory (29,741 ) (56,000 ) $ 2,752,845 $ 617,444 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Notes payable at December 31, 2017 is included in the accompanying balance sheets as follows: ODSA 166 Direct Loan $ 172,081 OAQDA 166 Direct Loan 49,811 Total notes payable before debt issuance costs 221,892 Debt issuance costs at December 31 787 Total notes payable after debt issuance costs 221,105 Less current portion 221,105 Notes payable, net of current portion $ - In 2018, the Company entered into a line of credit with Huntington Bank for $1 million. The line of credit bears interest at 0.5 percentage points over the Prime Commercial Rate with an expiration date of October 5, 2019. At December 31, 2018, no amounts were drawn on the line of credit. |
Lease Obligations (Tables)
Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum lease payments at December 31, 2018, are as follows: 2019 $ 107,512 2020 108,123 2021 110,370 2022 112,617 2023 and beyond 217,089 Total minimum lease payments $ 655,711 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | The Company also leases certain equipment under capital leases. Future minimum lease payments, by year, with the present value of such payments, as of December 31, 2018, are shown in the following table. 2019 $ 124,987 2020 86,052 2021 69,641 2022 and beyond - Total minimum lease payments 280,680 Less amount representing interest 17,949 Present value of minimum lease payments 262,731 Less current portion 114,853 Capital lease obligations, net of current portion $ 147,878 |
Schedule of Capital Leased Assets [Table Text Block] | The equipment under capital lease at December 31 is included in the accompanying balance sheets as follows: 2018 2017 Machinery and equipment $ 725,036 $ 706,050 Less accumulated depreciation and amortization 222,973 194,588 Net book value $ 502,063 $ 511,462 |
Common and Preferred Stock (Tab
Common and Preferred Stock (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock by Class [Table Text Block] | Shares of preferred stock authorized and outstanding at December 31, 2018 and 2017, were as follows: Shares Shares Authorized Outstanding Cumulative Preferred Stock 10,000 - Voting Preferred Stock 125,000 - Cumulative Non-Voting Preferred Stock 125,000 (a) 24,152 (a) Includes 700 shares of Series A Preferred Stock and 100,000 shares of Convertible Series B Preferred Stock authorized for issuance. |
Schedule of Number Of Outstanding Stock Options and Preferred Stock [Table Text Block] | Following is a summary of employee and director outstanding stock options outstanding and preferred stock, Series B at December 31. 2018 2017 Options 407,566 381,447 Preferred Stock, Series B 24,152 24,152 431,718 405,599 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following is provided to reconcile the earnings per share calculations: 2018 2017 Income (loss) applicable to common stock $ 883,717 $ (18,061 ) Weighted average common shares outstanding - basic 4,223,865 4,138,516 Effect of dilutions - stock options 33,266 - Weighted average shares outstanding - diluted 4,257,131 4,138,516 |
Stock Option Plans (Tables)
Stock Option Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Nonvested Share Activity [Table Text Block] | Information related to the weighted average fair value of nonvested stock options for the year ended December 31, 2018 is as follows: Stock Options Weighted Average Exercise Price Employee Stock Options Nonvested options at January 1, 2018 77,618 $ 2.64 Granted 41,719 1.25 Vested (52,384 ) 3.51 Nonvested options at December 31, 2018 66,953 $ 1.10 |
Schedule Of BlackScholes Option Valuation In Weighted Average Assumptions [Table Text Block] | The weighted average fair value at date of grant for options granted during 2018 was $1.25, and was established using the Black-Scholes option valuation method with the following weighted average assumptions: Expected life in years 5.0 Interest rate 2.7 % Volatility 62.3 % Dividend yield 0 % |
Employee Stock Option [Member] | Series B Preferred Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | The cumulative status at December 31, 2018 and 2017, of options granted and outstanding, as well as options which became exercisable in connection with the Stock Option Plans is summarized as follows: Employee Stock Options Stock Options Weighted Average Exercise Price Weighted Average Contractual Term (yrs) Aggregate Intrinsic Value 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 (21,225 ) 0.84 Expired (5,000 ) 3.10 Outstanding at December 31, 2018 396,941 $ 4.41 2.2 $ - Options exercisable at December 31, 2018 329,988 $ 5.09 1.0 $ - Options exercisable at December 31, 2017 303,829 $ 5.03 2.0 $ - Options expected to vest 66,953 $ 1.10 8.0 $ - |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax assets and liabilities result from temporary differences in the recognition of income and expense for tax and financial reporting purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows at December 31. 2018 2017 Deferred tax assets NOL carryforwards $ 781,000 $ 1,038,000 General business credits carryforwards 288,000 244,000 Stock based compensation 92,000 64,000 UNICAP 56,000 30,000 Allowance for doubtful accounts 3,000 3,000 Reserve for obsolete inventories 6,000 12,000 Reserve for asset retirement 14,000 14,000 Property and equipment (145,000 ) (159,000 ) 1,095,000 1,246,000 Valuation allowance (1,095,000 ) (1,246,000 ) Net $ - $ - |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | For the years ended December 31, 2018 and 2017, a reconciliation of the statutory rate and effective rate for the provisions for income taxes consists of the following: Percentage 2018 2017 Federal statutory rate 21.0 % 35.0 % State/city tax 1.9 24.0 Non-deductible expense 0.6 532.6 Valuation allowance (21.6 ) (567.6 ) Effective rate 1.9 % 24.0 % |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Components of the income tax provision are as follows: 2018 2017 Current $ 17,642 $ 1,921 Deferred: NOL utilization/expiration under 2017 tax law 257,000 87,247 General business credits (44,000 ) (23,087 ) Other temporary differences (62,000 ) (43,756 ) Change in valuation allowance (151,000 ) (20,404 ) Change in NOL benefit due to 2018 Tax Reform - 691,695 Change in temporary differences due to 2018 Tax Reform - (25,595 ) Change in valuation allowance due to 2018 Tax Reform - (666,100 ) Total $ 17,642 $ 1,921 |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations [Table Text Block] | Following is a reconciliation of the aggregate retirement liability associated with the Company’s obligation to dismantle and remove the machinery and equipment associated with its lease: Balance at January 1, 2017 $ 65,578 Increase in present value of the obligation (accretion expense in the corresponding amount charged against earnings) 1,218 Balance at December 31, 2017 $ 66,796 Increase in present value of the obligation (accretion expense in the corresponding amount charged against earnings) 2,431 Balance at December 31, 2018 $ 69,227 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Line Items] | |||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | $ 14,738 | $ 120,090 | |
Allowance for Doubtful Accounts Receivable, Current | 15,000 | 15,000 | |
Inventory Valuation Reserves | 29,741 | 56,000 | |
Depreciation | 450,180 | 460,637 | |
Debt Issuance Costs, Net | 0 | 787 | |
Amortization of Debt Issuance Costs | 787 | 9,439 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 33,750 | ||
Research and Development Expense | 351,999 | 330,805 | |
Share-based Compensation | 149,399 | 201,574 | |
Debt Issuance Costs, Current, Net | 0 | $ 787 | |
Minimum Expected Amortization Expense In Future | $ 2,744 | ||
Revenue, Performance Obligation, Description of Payment Terms | 45 days | ||
Subsequent Event [Member] | |||
Accounting Policies [Line Items] | |||
Right of use asset and operating lease liability | $ 500,000 | ||
Computer Equipment [Member] | |||
Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Leasehold Improvements [Member] | |||
Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | amortized over the shorter of the estimated useful life or the term of the lease. | ||
Other Equipment [Member] | |||
Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 16 years | ||
Sales Revenue, Net [Member] | |||
Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 80.00% | 94.00% | |
Sales Revenue, Net [Member] | International Shipments [Member] | |||
Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 30.00% | 8.00% | |
Patents [Member] | |||
Accounting Policies [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 64,481 | $ 34,935 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 1,977 | 0 | |
Amortization of Intangible Assets | 1,977 | 0 | |
Non Employee Board [Member] | |||
Accounting Policies [Line Items] | |||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | $ 121,380 | $ 76,984 | |
Customer One [Member] | Sales Revenue, Net [Member] | |||
Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 36.00% | 72.00% | |
Customer Two [Member] | Sales Revenue, Net [Member] | |||
Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 17.00% | 9.00% | |
Two Customers [Member] | Accounts Receivable [Member] | |||
Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 27.00% | 65.00% | |
Two Customers [Member] | Sales Revenue, Net [Member] | |||
Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 53.00% | 81.00% |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Raw materials | $ 1,568,487 | $ 141,733 |
Work-in-process | 1,144,080 | 370,318 |
Finished goods | 70,019 | 161,393 |
Inventory, Gross | 2,782,586 | 673,444 |
Reserve for obsolete inventory | (29,741) | (56,000) |
Inventory, Net | $ 2,752,845 | $ 617,444 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Conversion [Line Items] | ||
Notes Payable | $ 221,892 | |
Debt issuance costs at December 31 | $ 0 | 787 |
Total notes payable after debt issuance costs | 221,105 | |
Less current portion | $ 0 | 221,105 |
Notes payable, net of current portion | 0 | |
Ohio Air Quality Development Authority Loan [Member] | ||
Debt Conversion [Line Items] | ||
Notes Payable | 49,811 | |
Ohio Development Services Agency One [Member] | ||
Debt Conversion [Line Items] | ||
Notes Payable | $ 172,081 |
Notes Payable (Details Textual)
Notes Payable (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Mar. 20, 2012 | Dec. 31, 2010 | |
HuntingTon Bank [Member] | ||||
Debt Conversion [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | $ 1,000,000 | ||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||
Line of Credit Facility, Expiration Date | Oct. 5, 2019 | |||
Long-term Line of Credit | $ 0 | $ 0 | ||
Debt Instrument, Interest Rate, Basis for Effective Rate | 0.5 percentage points over the Prime Commercial Rate | |||
Ohio Development Services Agency [Member] | ||||
Debt Conversion [Line Items] | ||||
Line of Credit Facility, Interest Rate During Period | 3.00% | |||
Servicing Fee Annual Percent Fee | 0.25% | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 744,250 | |||
Ohio Development Services Agency [Member] | Line of Credit [Member] | ||||
Debt Conversion [Line Items] | ||||
Line of Credit Facility, Final Periodic Payment | $ 71,900 | $ 71,900 | ||
Ohio Air Quality Development Authority [Member] | ||||
Debt Conversion [Line Items] | ||||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | $ 368,906 | $ 1,400,000 | ||
Line Of Credit Facility, State Final Periodic Payment | $ 50,400 |
Lease Obligations (Details)
Lease Obligations (Details) | Dec. 31, 2018USD ($) |
Operating Leased Assets [Line Items] | |
2,019 | $ 107,512 |
2,020 | 108,123 |
2,021 | 110,370 |
2,022 | 112,617 |
2023 and beyond | 217,089 |
Total minimum lease payments | $ 655,711 |
Lease Obligations (Details 1)
Lease Obligations (Details 1) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Capital Leased Assets [Line Items] | ||
2,019 | $ 124,987 | |
2,020 | 86,052 | |
2,021 | 69,641 | |
2022 and beyond | 0 | |
Total minimum lease payments | 280,680 | |
Less amount representing interest | 17,949 | |
Present value of minimum lease payments | 262,731 | |
Less current portion | 114,853 | $ 129,500 |
Capital lease obligations, net of current portion | $ 147,878 | $ 181,744 |
Lease Obligations (Details 2)
Lease Obligations (Details 2) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Capital Leased Assets [Line Items] | ||
Machinery and equipment | $ 725,036 | $ 706,050 |
Less accumulated depreciation and amortization | 222,973 | 194,588 |
Net book value | $ 502,063 | $ 511,462 |
Lease Obligations (Details Text
Lease Obligations (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Leased Assets [Line Items] | ||
Operating Leases, Rent Expense | $ 176,142 | $ 194,209 |
Common and Preferred Stock (Det
Common and Preferred Stock (Details) - shares | Dec. 31, 2018 | Dec. 31, 2017 | |
Preferred Stock, Shares Outstanding | 24,152 | 24,152 | |
Cumulative Preferred Stock [Member] | |||
Preferred Stock, Shares Authorized | 10,000 | 10,000 | |
Preferred Stock, Shares Outstanding | 0 | 0 | |
Voting Preferred Stock [Member] | |||
Preferred Stock, Shares Authorized | 125,000 | 125,000 | |
Preferred Stock, Shares Outstanding | 0 | 0 | |
Cumulative Non-Voting Preferred Stock [Member] | |||
Preferred Stock, Shares Authorized | [1] | 125,000 | 125,000 |
Preferred Stock, Shares Outstanding | 24,152 | 24,152 | |
[1] | Includes 700 shares of Series A Preferred Stock and 100,000 shares of Convertible Series B Preferred Stock authorized for issuance. |
Common and Preferred Stock (D_2
Common and Preferred Stock (Details 1) - shares | Dec. 31, 2018 | Dec. 31, 2017 |
Number of Options and Preferred Stock Outstanding [Line Items] | ||
Options | 407,566 | 381,447 |
Preferred Stock, Series B | 24,152 | 24,152 |
Number of Options and Preferred Stock Outstanding | 431,718 | 405,599 |
Common and Preferred Stock (D_3
Common and Preferred Stock (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income (loss) applicable to common stock | $ 883,717 | $ (18,061) |
Weighted average common shares outstanding - basic | 4,223,865 | 4,138,516 |
Effect of dilutions - stock options | 33,266 | 0 |
Weighted average shares outstanding - diluted | 4,257,131 | 4,138,516 |
Common and Preferred Stock (D_4
Common and Preferred Stock (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jul. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 1996 | |
Stock Issued During Period, Value, New Issues | $ 134,661 | $ 81,484 | |||
Preferred Stock, Shares Outstanding | 24,152 | 24,152 | |||
Payments of Dividends | $ 24,152 | ||||
Scenario, Forecast [Member] | |||||
Payments of Dividends | $ 24,152 | ||||
Convertible Preferred Stock Series B [Member] | |||||
Stock Issued During Period, Shares, New Issues | 70,000 | ||||
Preferred Stock, Shares Authorized | 100,000 | ||||
Preferred Stock, Par or Stated Value Per Share | $ 10 | ||||
Preferred Stock, Dividend Rate, Percentage | 10.00% | ||||
Convertible Preferred Stock Conversion Price | $ 5 | ||||
Preferred Stock Redemption Percentage | 103.00% | ||||
Non Employee Board members [Member] | |||||
Stock Issued During Period, Shares, New Issues | 67,487 | 84,406 | |||
Stock Issued During Period, Value, New Issues | $ 121,380 | $ 81,484 | |||
Officers [Member] | |||||
Stock Issued During Period, Shares, New Issues | 4,500 | ||||
Series A Preferred Stock [Member] | |||||
Preferred Stock, Shares Authorized | 700 | ||||
Series B Preferred Stock [Member] | |||||
Accrued Dividend | $ 265,672 | $ 265,672 | |||
Preferred Stock, Shares Outstanding | 24,152 | 24,152 | |||
Convertible Preferred Stock [Member] | Scenario, Forecast [Member] | |||||
Payments of Dividends | $ 24,152 |
Stock Option Plans (Details)
Stock Option Plans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Options, Outstanding, Beginning Balance | 381,447 | |
Stock Options, Outstanding, Ending Balance | 407,566 | 381,447 |
Weighted Average Exercise Price, Granted | $ 1.25 | |
Employee Stock Options [Member] | ||
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 | (21,225) | (16,224) |
Stock Options, Forfeited | (5,000) | |
Stock Options, Outstanding, Ending Balance | 396,941 | 381,447 |
Stock Options, Options exercisable | 329,988 | 303,829 |
Stock Options, Options expected to vest | 66,953 | |
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 | 4.41 | 4.54 |
Weighted Average Exercise Price, Options exercisable | 5.09 | $ 5.03 |
Weighted Average Exercise Price, Options expected to vest | $ 1.10 | |
Weighted Average Contractual Term, Outstanding | 2 years 2 months 12 days | 2 years 7 months 6 days |
Weighted Average Contractual Term, Options exercisable | 1 year | 2 years |
Weighted Average Contractual Term, Options expected to vest | 8 years | |
Aggregate Intrinsic Value, Outstanding | $ 0 | |
Aggregate Intrinsic Value, Options exercisable | 0 | $ 0 |
Aggregate Intrinsic Value, Options expected to vest | $ 0 |
Stock Option Plans (Details 1)
Stock Option Plans (Details 1) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, Weighted Average Exercise Price | $ 1.25 |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested options at January 1, 2018 | shares | 77,618 |
Granted,Stock Options | shares | 41,719 |
Vested, Stock Options | shares | (52,384) |
Nonvested options at December 31, 2018 | shares | 66,953 |
Nonvested, Weighted Average Exercise Price at January 1, 2018 | $ 2.64 |
Granted, Weighted Average Exercise Price | 1.25 |
Vested, Weighted Average Exercise Price | 3.51 |
Nonvested, Weighted Average Exercise Price at December 31, 2018 | $ 1.10 |
Stock Option Plans (Details 2)
Stock Option Plans (Details 2) | 12 Months Ended |
Dec. 31, 2018 | |
Expected life in years | 5 years |
Interest rate | 2.70% |
Volatility | 62.30% |
Dividend yield | 0.00% |
Stock Option Plans (Details Tex
Stock Option Plans (Details Textual) - $ / shares | Jun. 10, 2011 | Jun. 09, 2006 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
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, Number | 407,566 | 381,447 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 1.25 | ||||
Plan 2011 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 250,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 100.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 41,719 | ||||
Plan 2006 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 600,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 100.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Description and Terms | Plan which expire at various dates through November 2024 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 365,847 | ||||
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 2 years 2 months 12 days | 2 years 7 months 6 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 4.41 | $ 4.54 | $ 4.39 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 396,941 | 381,447 | 397,671 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 1.25 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||
NOL carryforwards | $ 781,000 | $ 1,038,000 |
General business credits carryforwards | 288,000 | 244,000 |
Stock based compensation | 92,000 | 64,000 |
UNICAP | 56,000 | 30,000 |
Allowance for doubtful accounts | 3,000 | 3,000 |
Reserve for obsolete inventories | 6,000 | 12,000 |
Reserve for asset retirement | 14,000 | 14,000 |
Property and equipment | (145,000) | (159,000) |
Deferred Tax Assets, Gross | 1,095,000 | 1,246,000 |
Valuation allowance | (1,095,000) | (1,246,000) |
Net | $ 0 | $ 0 |
Income Taxes (Details 1)
Income Taxes (Details 1) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | ||
Federal statutory rate | 21.00% | 35.00% |
State/city tax | 1.90% | 24.00% |
Non-deductible expense | 0.60% | 532.60% |
Valuation allowance | (21.60%) | (567.60%) |
Effective rate | 1.90% | 24.00% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | ||
Current | $ 17,642 | $ 1,921 |
Deferred: | ||
NOL utilization/expiration under 2017 tax law | 257,000 | 87,247 |
General business credits | (44,000) | (23,087) |
Other temporary differences | (62,000) | (43,756) |
Change in valuation allowance | (151,000) | (20,404) |
Total | 17,642 | 1,921 |
Post Enactment of Tax Rate [Member] | ||
Deferred: | ||
NOL utilization/expiration under 2017 tax law | 0 | 691,695 |
Other temporary differences | 0 | (25,595) |
Change in valuation allowance | $ 0 | $ (666,100) |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | ||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | $ 3,700,000 | $ 4,900,000 |
Operating Loss Carry forward Expiration Year | 2,038 | |
Deferred Tax Assets, Valuation Allowance, Current | $ 1,095,000 | 1,246,000 |
Deferred Tax Assets, Gross | $ 1,095,000 | $ 1,246,000 |
Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate | 21.00% | 35.00% |
Prior Enactment of Tax Rate [Member] | ||
Income Tax Contingency [Line Items] | ||
Deferred Tax Assets, Gross | $ 1,912,000 | |
Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate | 35.00% | |
Post Enactment of Tax Rate [Member] | ||
Income Tax Contingency [Line Items] | ||
Deferred Tax Assets, Gross | $ 1,246,000 | |
Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate | 21.00% |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Details Textual) | Dec. 31, 2018 |
Maximum [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 6.20% |
Minimum [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 3.90% |
Asset Retirement Obligation (De
Asset Retirement Obligation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Asset Retirement Obligation [Line Items] | ||
Beginning balance | $ 66,796 | $ 65,578 |
Increase in present value of the obligation (accretion expense in the corresponding amount charged against earnings) | 2,431 | 1,218 |
Ending balance | $ 69,227 | $ 66,796 |
Purchase Commitment (Details Te
Purchase Commitment (Details Textual) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Purchase Commitment | $ 168,885 |