Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-20333 | |
Entity Registrant Name | NOCOPI TECHNOLOGIES, INC. | |
Entity Central Index Key | 0000888981 | |
Entity Tax Identification Number | 87-0406496 | |
Entity Incorporation, State or Country Code | MD | |
Entity Address, Address Line One | 480 Shoemaker Road | |
Entity Address, Address Line Two | Suite 104 | |
Entity Address, City or Town | King of Prussia | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19406 | |
City Area Code | (610) | |
Local Phone Number | 834-9600 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,501,178 |
Statements of Comprehensive Inc
Statements of Comprehensive Income (Loss) (unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | ||||
Licenses, royalties and fees | $ 136,900 | $ 448,600 | $ 410,100 | $ 755,700 |
Product and other sales | 438,200 | 237,300 | 1,356,300 | 783,900 |
Total revenues | 575,100 | 685,900 | 1,766,400 | 1,539,600 |
Cost of revenues | ||||
Licenses, royalties and fees | 62,700 | 44,500 | 171,200 | 130,400 |
Product and other sales | 247,300 | 147,900 | 648,300 | 429,400 |
Total cost of revenues | 310,000 | 192,400 | 819,500 | 559,800 |
Gross profit | 265,100 | 493,500 | 946,900 | 979,800 |
Operating expenses | ||||
Research and development | 39,800 | 23,900 | 119,900 | 95,900 |
Sales and marketing | 71,200 | 88,900 | 218,600 | 230,400 |
General and administrative | 833,800 | 180,200 | 1,258,300 | 964,600 |
Total operating expenses | 944,800 | 293,000 | 1,596,800 | 1,290,900 |
Net income (loss) from operations | (679,700) | 200,500 | (649,900) | (311,100) |
Other income (expenses) | ||||
Interest income | 69,800 | 6,500 | 192,300 | 18,400 |
Interest expense and bank charges | (4,000) | (500) | (9,000) | (1,200) |
Total other income (expenses) | 65,800 | 6,000 | 183,300 | 17,200 |
Net income (loss) before income taxes | (613,900) | 206,500 | (466,600) | (293,900) |
Income taxes | (160,600) | 0 | (122,700) | 0 |
Net income (loss) | $ (453,300) | $ 206,500 | $ (343,900) | $ (293,900) |
Net income (loss) per common share | ||||
Basic | $ (0.05) | $ 0.03 | $ (0.04) | $ (0.04) |
Diluted | $ (0.05) | $ 0.03 | $ (0.04) | $ (0.04) |
Weighted average common shares outstanding | ||||
Basic | 9,667,845 | 7,584,512 | 9,390,067 | 7,028,956 |
Diluted | 9,667,845 | 7,584,512 | 9,390,067 | 7,028,956 |
Balance Sheets (unaudited)
Balance Sheets (unaudited) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash | $ 10,476,500 | $ 5,337,800 |
Accounts receivable less $12,000 allowance for doubtful accounts | 1,357,800 | 1,103,500 |
Inventory | 384,500 | 486,400 |
Prepaid and other | 101,200 | 103,300 |
Total current assets | 12,320,000 | 7,031,000 |
Fixed assets | ||
Leasehold improvements | 81,500 | 58,400 |
Furniture, fixtures and equipment | 169,800 | 164,400 |
Fixed assets, gross | 251,300 | 222,800 |
Less: accumulated depreciation and amortization | 200,300 | 167,800 |
Total fixed assets | 51,000 | 55,000 |
Other assets | ||
Long-term receivable | 1,993,700 | 2,463,100 |
Operating lease right of use – building | 30,600 | 68,300 |
Other assets | 2,024,300 | 2,531,400 |
Total assets | 14,395,300 | 9,617,400 |
Current liabilities | ||
Accounts payable | 97,200 | 97,700 |
Accrued expenses | 233,000 | 173,700 |
Stock compensation payable | 420,600 | |
Income taxes | 0 | 287,100 |
Operating lease liability – current | 30,600 | 50,700 |
Total current liabilities | 781,400 | 609,200 |
Other liabilities | ||
Accrued expenses – non-current | 139,400 | 172,200 |
Operating lease liability – non-current | 0 | 17,600 |
Total other liabilities | 139,400 | 189,800 |
Stockholders' equity | ||
Common stock, $0.01 par value Authorized – 75,000,000 shares Issued and outstanding 2023-10,501,178; 2022-9,251,178 | 105,000 | 92,500 |
Paid-in capital | 21,647,100 | 16,659,600 |
Accumulated deficit | (8,277,600) | (7,933,700) |
Total stockholders' equity | 13,474,500 | 8,818,400 |
Total liabilities and stockholders' equity | $ 14,395,300 | $ 9,617,400 |
Balance Sheets (unaudited) (Par
Balance Sheets (unaudited) (Parenthetical) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 12,000 | $ 12,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 10,501,178 | 9,251,178 |
Common stock, shares outstanding | 10,501,178 | 9,251,178 |
Statements of Cash Flows (unaud
Statements of Cash Flows (unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Activities | ||
Net income (loss) | $ (343,900) | $ (293,900) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Depreciation and amortization | 32,500 | 25,500 |
Stock based compensation | 420,600 | 0 |
Other assets | 507,100 | 29,200 |
Other liabilities | (70,500) | (35,200) |
Net income adjusted for non-cash operating activities | 545,800 | (274,400) |
(Increase) decrease in assets | ||
Accounts receivable | (254,300) | 190,800 |
Inventory | 101,900 | (31,600) |
Prepaid and other | 2,100 | 64,600 |
Increase (decrease) in liabilities | ||
Accounts payable and accrued expenses | 58,800 | 60,400 |
Taxes on income | (287,100) | |
Total increase in operating capital | (378,600) | 284,200 |
Net cash provided by operating activities | 167,200 | 9,800 |
Investing Activities | ||
Additions to fixed assets | (28,500) | (800) |
Net cash used in investing activities | (28,500) | (800) |
Financing Activities | ||
Issuance of common stock | 5,000,000 | 3,500,000 |
Net cash provided by financing activities | 5,000,000 | 3,500,000 |
Increase (decrease) in cash | 5,138,700 | 3,509,000 |
Cash at beginning of year | 5,337,800 | 1,846,700 |
Cash at end of period | $ 10,476,500 | $ 5,355,700 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity (unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2021 | $ 67,500 | $ 13,184,600 | $ (9,746,800) | $ 3,505,300 |
Beginning balance, shares at Dec. 31, 2021 | 6,751,178 | |||
Net income | (203,400) | (203,400) | ||
Ending balance, value at Mar. 31, 2022 | $ 67,500 | 13,184,600 | (9,950,200) | 3,301,900 |
Ending balance, shares at Mar. 31, 2022 | 6,751,178 | |||
Beginning balance, value at Dec. 31, 2021 | $ 67,500 | 13,184,600 | (9,746,800) | 3,505,300 |
Beginning balance, shares at Dec. 31, 2021 | 6,751,178 | |||
Net income | (293,900) | |||
Ending balance, value at Sep. 30, 2022 | $ 92,500 | 16,659,600 | (10,040,700) | 6,711,400 |
Ending balance, shares at Sep. 30, 2022 | 9,251,178 | |||
Beginning balance, value at Mar. 31, 2022 | $ 67,500 | 13,184,600 | (9,950,200) | 3,301,900 |
Beginning balance, shares at Mar. 31, 2022 | 6,751,178 | |||
Net income | (297,000) | (297,000) | ||
Ending balance, value at Jun. 30, 2022 | $ 67,500 | 13,184,600 | (10,247,200) | 3,004,900 |
Ending balance, shares at Jun. 30, 2022 | 6,751,178 | |||
Sales of common stock | $ 25,000 | 3,475,000 | 3,500,000 | |
Sales of common stock, shares | 2,500,000 | |||
Net income | 206,500 | 206,500 | ||
Ending balance, value at Sep. 30, 2022 | $ 92,500 | 16,659,600 | (10,040,700) | 6,711,400 |
Ending balance, shares at Sep. 30, 2022 | 9,251,178 | |||
Beginning balance, value at Dec. 31, 2022 | $ 92,500 | 16,659,600 | (7,933,700) | 8,818,400 |
Beginning balance, shares at Dec. 31, 2022 | 9,251,178 | |||
Net income | 30,300 | 30,300 | ||
Ending balance, value at Mar. 31, 2023 | $ 92,500 | 16,659,600 | (7,903,400) | 8,848,700 |
Ending balance, shares at Mar. 31, 2023 | 9,251,178 | |||
Beginning balance, value at Dec. 31, 2022 | $ 92,500 | 16,659,600 | (7,933,700) | 8,818,400 |
Beginning balance, shares at Dec. 31, 2022 | 9,251,178 | |||
Net income | (343,900) | |||
Ending balance, value at Sep. 30, 2023 | $ 105,000 | 21,647,100 | (8,277,600) | 13,474,500 |
Ending balance, shares at Sep. 30, 2023 | 10,501,178 | |||
Beginning balance, value at Mar. 31, 2023 | $ 92,500 | 16,659,600 | (7,903,400) | 8,848,700 |
Beginning balance, shares at Mar. 31, 2023 | 9,251,178 | |||
Net income | 79,100 | 79,100 | ||
Ending balance, value at Jun. 30, 2023 | $ 92,500 | 16,659,600 | (7,824,300) | 8,927,800 |
Ending balance, shares at Jun. 30, 2023 | 9,251,178 | |||
Sales of common stock | $ 12,500 | 4,987,500 | 5,000,000 | |
Sales of common stock, shares | 1,250,000 | |||
Net income | (453,300) | (453,300) | ||
Ending balance, value at Sep. 30, 2023 | $ 105,000 | $ 21,647,100 | $ (8,277,600) | $ 13,474,500 |
Ending balance, shares at Sep. 30, 2023 | 10,501,178 |
Financial Statements
Financial Statements | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Statements | Note 1. Financial Statements The accompanying unaudited condensed financial statements have been prepared by Nocopi Technologies, Inc. (our “Company”). These statements include all adjustments (consisting only of normal recurring adjustments) which management believes necessary for a fair presentation of the statements and have been prepared on a consistent basis using the accounting policies described in Note 2 Significant Accounting Policies included in the Notes to Financial Statements included in our Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission on March 31, 2023, as amended on April 28, 2023 (the “2022 Annual Report”). Certain financial information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although our Company believes that the accompanying disclosures are adequate to make the information presented not misleading. The Notes to Financial Statements included in the 2022 Annual Report should be read in conjunction with the accompanying interim financial statements. The interim operating results for the three months and nine months ended September 30, 2023 may not be necessarily indicative of the operating results expected for the full year. Our Company follows Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 220 in reporting comprehensive income (loss). Comprehensive income (loss) is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income (loss). Since our Company has no items of other comprehensive income (loss), comprehensive income (loss) is equal to net income (loss). |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Compensation Related Costs [Abstract] | |
Stock Based Compensation | Note 2. Stock Based Compensation Our Company follows FASB ASC 718, Compensation – Stock Compensation no As part of an employment agreement, the Company granted an executive a one-time equity award of 1,000,000 3,580,000 420,600 3.10 3,580,000 |
Cash and Cash Equivalents
Cash and Cash Equivalents | 9 Months Ended |
Sep. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Note 3 Cash and Cash Equivalents Schedule of Cash and Cash Equivalents September 30 2023 December 31 2022 Cash and cash equivalents Cash and money market funds $ 1,315,700 $ 917,400 U.S. Treasury Bills 9,160,800 4,420,400 Cash and cash equivalents $ 10,476,500 $ 5,337,800 The amortized cost and fair value of securities held to maturity at September 30, 2023 are as follows: Schedule of amortized cost and fair value of securities held to maturity Amortized Cost Fair Value U.S. Treasury Bills Due October 5, 2023 1,124,200 1,124,500 Due January 25, 2024 1,108,700 1,105,900 Due April 18, 2024 1,092,600 1,092,300 Due July 11, 2024 1,079,400 1,078,900 Due September 5, 2024 4,756,000 4,755,800 Total $ 9,160,900 $ 9,157,400 |
Long-term Receivables
Long-term Receivables | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Long-term Receivables | Note 4. Long-term Receivables As of September 30, 2023, the Company had long-term receivables of $ 1,993,700 4 The three agreements grant licenses for the use of certain patented ink technology as it exists at the time that it is granted which is considered functional intellectual property. Under Topic 606, a performance obligation to transfer a license for functional intellectual property is satisfied at a point in time and the fixed consideration could be recognized upfront when the Company transfers control of the licensee if certain criteria are met. Specifically, the minimum royalty guarantee could be recognized upfront if the following conditions are met: · The royalty payment is fixed or determinable · Collection of the royalty payment is considered probable · The licensee has the ability to benefit from the licensed technology The Company determined that the above conditions were met upon execution of the agreements and, in the year ended December 31, 2022, recognized $ 2,810,600 206,600 131,300 183,000 The current portion of the three new license agreements, in the amount of $ 624,100 507,500 The following table summarizes the future minimum payments due under the three new license agreements as of September 30, 2023: Schedule of future minimum payments Year Ending December 31: 2023 $ 157,500 2024 642,000 2025 570,000 2026 570,000 2027 557,500 2028 260,000 Total $ 2,757,000 The Company has evaluated the collectibility of the long-term receivables and believes them to be fully collectible as of September 30, 2023. However, there can be no assurance that the receivables will not be impaired in the future due to changes in the licensees’ financial condition or other factors. The long-term receivables are recorded at its present value as of September 30, 2023, and will be amortized over the term of the license agreements using the effective interest method. The unamortized balance of the long-term receivables as of September 30, 2023 is $ 1,993,700 |
Stockholders_ Equity
Stockholders’ Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity | Note 5. Stockholders’ Equity On September 11, 2023 our Company entered into a stock purchase agreement (the “Purchase Agreement”) in connection with a private placement for total gross proceeds of $ 5.0 1,250,000 4.00 65,790 65,790 On September 11, 2023, the sale pursuant to the closed. No placement fees or commissions were paid in connection with this transaction. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6. Income Taxes There was no income tax benefit for the net losses for the three months ended September 30, 2023 and the nine months ended September 30, 2023 and 2022 because our Company determined that the realization of the net deferred tax asset was not assured. Our Company created a valuation allowance for the entire amount of such benefits. However, the income tax benefit reflected on the Statement of Comprehensive Income (Loss) for the three and nine months ended September 30, 2023 is the result of reversing the tax accruals. There is no provision for income taxes for the three months ended September 30, 2023 due to the availability of net operating loss carryforwards. The components for federal and state income tax expense are: Schedule of federal and state income tax expense Three Months ended September 30 Nine Months ended September 30 2023 2022 2023 2022 Current federal taxes $ (154,500 ) $ — $ (122,700 ) $ — Current state taxes (6,100 ) — — — Total $ (160,600 ) $ — $ (122,700 ) $ — There was no no no 1,657,892 |
Earnings (Loss) per Share
Earnings (Loss) per Share | 9 Months Ended |
Sep. 30, 2023 | |
Net income (loss) per common share | |
Earnings (Loss) per Share | Note 7. Earnings (Loss) per Share In accordance with FASB ASC 260, Earnings per Share |
Major Customer and Geographic I
Major Customer and Geographic Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Major Customer and Geographic Information | Note 8. Major Customer and Geographic Information Our Company’s revenues, expressed as a percentage of total revenues, from non-affiliated customers that equaled 10% or more of the Company’s total revenues were: Company's revenues as percentage of revenue Three Months ended September 30 Nine Months ended September 30 2023 2022 2023 2022 Customer A 69 % 32 % 69 % 45 % Customer B 18 % 20 % 17 % 22 % Customer D — 40 % — 20 % Our Company’s non-affiliate customers whose individual balances amounted to more than 10% of our Company’s net accounts receivable, expressed as a percentage of net accounts receivable, were: Schedule of non-affiliated customers with accounts receivable more than 10% September 30 December 31 2023 2022 Customer A 16 % 6 % Customer B 73 % 84 % Our Company performs ongoing credit evaluations of its customers and generally does not require collateral. Our Company also maintains allowances for potential credit losses. The loss of a major customer could have a material adverse effect on our Company’s business operations and financial condition. Our Company’s revenues by geographic region are as follows: Company's revenue by geographic region Three Months ended September 30 Nine Months ended September 30 2023 2022 2023 2022 North America $ 140,700 $ 184,200 $ 414,300 $ 469,000 South America 600 — 600 1,600 Europe — 200 — 200 Asia 409,900 229,300 1,286,600 757,200 Australia 23,900 272,200 64,900 311,600 $ 575,100 $ 685,900 $ 1,766,400 $ 1,539,600 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases | |
Leases | Note 9. Leases Our Company conducts its operations in leased facilities under a non-cancelable operating lease expiring in 2024. Due to the adoption of the new lease standard under the optional transition method which allows the entity to apply the new lease standard at the adoption date, our Company has capitalized the present value of the minimum lease payments commencing January 1, 2019, using an estimated incremental borrowing rate of 6.5 As of January 1, 2019 the operating lease right-of-use asset and operating lease liability amounted to $ 241,100 There are no other material operating leases. Our Company has elected not to recognize right-of-use assets and lease liabilities arising from short-term leases. Total lease expense under operating leases for the three and nine months ended September 30, 2023 was $ 13,300 40,000 13,300 40,000 Maturities of lease liabilities are as follows: Schedule of maturities of lease liabilities Operating Leases Year ending December 31 2023 14,200 2024 18,900 Total lease payments 33,100 Less imputed interest (2,500 ) Total $ 30,600 |
Employee Retention Tax Credit
Employee Retention Tax Credit | 9 Months Ended |
Sep. 30, 2023 | |
Employee Retention Tax Credit | |
Employee Retention Tax Credit | Note 10. Employee Retention Tax Credit The CARES Act, signed into law on March 27, 2020 with subsequent amendments, provides for refundable employee retention credit to employers whose operations were suspended due to COVID-19 or whose revenue significantly decreased. On June 15, 2023, the Company filed a Form 941-X to claim a refundable employee retention credit for the first quarter and third quarter 2021 payroll in the total amount of $ 84,000 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11. Subsequent Events In connection with Michael S. Liebowitz’s appointment as Chief Executive Officer of the Company, on October 19, 2023, Mr. Liebowitz and the Company entered into an employment agreement (the “Employment Agreement”), which sets forth the terms and conditions of his employment and is effective as of October 19, 2023. Pursuant to the Employment Agreement, Mr. Liebowitz serves as our Chief Executive Officer for an initial term of five years, commencing on August 18, 2023, the date of his appointment (the “Term Commencement Date”), and for successive periods of one year after the expiration of the initial term, unless either party gives the other party written notice of termination at least 180 days prior to the termination date of the applicable term period, or unless the Employment Agreement is otherwise terminated in accordance with its term. In consideration for serving as Chief Executive Officer, Mr. Liebowitz is entitled to an annual base salary of $ 400,000 1,000,000 3,580,000 420,600 3.10 In the event (i) Mr. Liebowitz resigns “For Good Reason” or (ii) the Company terminates his employment for any reason other than “For Good Cause”, excluding instances of Mr. Liebowitz’s death or “Total Disability”, (each as defined in the Employment Agreement), he is entitled to receive the following payments and benefits, in addition to any accrued obligations and subject to his timely execution and non-revocation of a general release of claims in the Company’s favor and continued compliance with the restrictive covenants contained in the Employment Agreement: (i) an amount equal to twelve (12) months of his then base salary, which sum shall be payable on a bi-weekly basis from and after the date of any such termination and (ii) any unvested shares of common stock deriving from the Equity Award shall immediately vest and, upon August 18, 2024, shall be issued. In the event of Mr. Liebowitz’s termination due to his death or Total Disability, 50% of any unvested shares of common stock under the Equity Award shall immediately vest and, upon August 18, 2024, shall be issued to Mr. Liebowitz’s designated beneficiary or, if none, to his estate, in addition to any accrued obligations. |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | Schedule of Cash and Cash Equivalents September 30 2023 December 31 2022 Cash and cash equivalents Cash and money market funds $ 1,315,700 $ 917,400 U.S. Treasury Bills 9,160,800 4,420,400 Cash and cash equivalents $ 10,476,500 $ 5,337,800 |
Schedule of amortized cost and fair value of securities held to maturity | Schedule of amortized cost and fair value of securities held to maturity Amortized Cost Fair Value U.S. Treasury Bills Due October 5, 2023 1,124,200 1,124,500 Due January 25, 2024 1,108,700 1,105,900 Due April 18, 2024 1,092,600 1,092,300 Due July 11, 2024 1,079,400 1,078,900 Due September 5, 2024 4,756,000 4,755,800 Total $ 9,160,900 $ 9,157,400 |
Long-term Receivables (Tables)
Long-term Receivables (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of future minimum payments | Schedule of future minimum payments Year Ending December 31: 2023 $ 157,500 2024 642,000 2025 570,000 2026 570,000 2027 557,500 2028 260,000 Total $ 2,757,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of federal and state income tax expense | Schedule of federal and state income tax expense Three Months ended September 30 Nine Months ended September 30 2023 2022 2023 2022 Current federal taxes $ (154,500 ) $ — $ (122,700 ) $ — Current state taxes (6,100 ) — — — Total $ (160,600 ) $ — $ (122,700 ) $ — |
Major Customer and Geographic_2
Major Customer and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Company's revenues as percentage of revenue | Company's revenues as percentage of revenue Three Months ended September 30 Nine Months ended September 30 2023 2022 2023 2022 Customer A 69 % 32 % 69 % 45 % Customer B 18 % 20 % 17 % 22 % Customer D — 40 % — 20 % |
Schedule of non-affiliated customers with accounts receivable more than 10% | Schedule of non-affiliated customers with accounts receivable more than 10% September 30 December 31 2023 2022 Customer A 16 % 6 % Customer B 73 % 84 % |
Company's revenue by geographic region | Company's revenue by geographic region Three Months ended September 30 Nine Months ended September 30 2023 2022 2023 2022 North America $ 140,700 $ 184,200 $ 414,300 $ 469,000 South America 600 — 600 1,600 Europe — 200 — 200 Asia 409,900 229,300 1,286,600 757,200 Australia 23,900 272,200 64,900 311,600 $ 575,100 $ 685,900 $ 1,766,400 $ 1,539,600 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases | |
Schedule of maturities of lease liabilities | Schedule of maturities of lease liabilities Operating Leases Year ending December 31 2023 14,200 2024 18,900 Total lease payments 33,100 Less imputed interest (2,500 ) Total $ 30,600 |
Stock Based Compensation (Detai
Stock Based Compensation (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Aug. 18, 2023 | |
Unrecognized portion of expense related to stock option grants | $ 0 | $ 0 | ||
Stock based compensation expense | $ 420,600 | 420,600 | $ 0 | |
Amortization | $ 3,580,000 | |||
Common Stock [Member] | ||||
Restricted shares | 1,000,000 | |||
Restricted value | $ 3,580,000 | |||
Common stock price per share | $ 3.10 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Abstract] | ||
Cash and money market funds | $ 1,315,700 | $ 917,400 |
U.S. Treasury Bills | 9,160,800 | 4,420,400 |
Cash and cash equivalents | $ 10,476,500 | $ 5,337,800 |
Cash and Cash Equivalents (De_2
Cash and Cash Equivalents (Details 1) | Sep. 30, 2023 USD ($) |
Cash and Cash Equivalents [Line Items] | |
Amortized Cost | $ 9,160,900 |
Fair Value | 9,157,400 |
Due October [Member] | |
Cash and Cash Equivalents [Line Items] | |
Amortized Cost | 1,124,200 |
Fair Value | 1,124,500 |
Due January [Member] | |
Cash and Cash Equivalents [Line Items] | |
Amortized Cost | 1,108,700 |
Fair Value | 1,105,900 |
Due April [Member] | |
Cash and Cash Equivalents [Line Items] | |
Amortized Cost | 1,092,600 |
Fair Value | 1,092,300 |
Due July [Member] | |
Cash and Cash Equivalents [Line Items] | |
Amortized Cost | 1,079,400 |
Fair Value | 1,078,900 |
Due September [Member] | |
Cash and Cash Equivalents [Line Items] | |
Amortized Cost | 4,756,000 |
Fair Value | $ 4,755,800 |
Long-term Receivables (Details)
Long-term Receivables (Details) | Sep. 30, 2023 USD ($) |
Receivables [Abstract] | |
2023 | $ 157,500 |
2024 | 642,000 |
2025 | 570,000 |
2026 | 570,000 |
2027 | 557,500 |
2028 | 260,000 |
Total | $ 2,757,000 |
Long-term Receivables (Details
Long-term Receivables (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Receivables [Abstract] | ||
Long-term receivables | $ 1,993,700 | |
Incremental borrowing rate | 4% | |
Royalty revenue | $ 2,810,600 | |
Commission expense | 206,600 | |
Imputed interest | 131,300 | |
Accrued commission payable | $ 183,000 | |
Accounts receivable | 624,100 | $ 507,500 |
Long-term receivables | $ 1,993,700 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) | Sep. 11, 2023 USD ($) $ / shares shares |
Subsidiary, Sale of Stock [Line Items] | |
Gross proceeds | $ | $ 5,000,000 |
Aggregate shares issued | shares | 65,790 |
Fair market value | $ | $ 65,790 |
Private Placement [Member] | |
Subsidiary, Sale of Stock [Line Items] | |
Issuance of shares | shares | 1,250,000 |
Share price | $ / shares | $ 4 |
Income Taxes (Details - State I
Income Taxes (Details - State Income Tax Expense) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Current federal taxes | $ (154,500) | $ 0 | $ (122,700) | $ 0 |
Current state taxes | (6,100) | 0 | 0 | 0 |
Total | $ (160,600) | $ 0 | $ (122,700) | $ 0 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Unrecognized tax benefits | $ 0 |
Uncertain tax positions | 0 |
Domestic Tax Authority [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforward | 0 |
State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforward | $ 1,657,892 |
Major Customer and Geographic_3
Major Customer and Geographic Information (Details - Non-affiliated Customers) - Revenue Benchmark [Member] - Customer Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Customer A [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Risk percentage | 69% | 32% | 69% | 45% |
Customer B [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Risk percentage | 18% | 20% | 17% | 22% |
Customer D [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Risk percentage | 0% | 40% | 0% | 20% |
Major Customer and Geographic_4
Major Customer and Geographic Information (Details - Non-affiliated Customers with Accounts Receivable) - Accounts Receivable [Member] - Customer Concentration Risk [Member] | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Customer A [Member] | ||
Revenue, Major Customer [Line Items] | ||
Risk percentage | 16% | 6% |
Customer B [Member] | ||
Revenue, Major Customer [Line Items] | ||
Risk percentage | 73% | 84% |
Major Customer and Geographic_5
Major Customer and Geographic Information (Details - Revenue by Geographic Region) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 575,100 | $ 685,900 | $ 1,766,400 | $ 1,539,600 |
North America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 140,700 | 184,200 | 414,300 | 469,000 |
South America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 600 | 0 | 600 | 1,600 |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 0 | 200 | 0 | 200 |
Asia [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 409,900 | 229,300 | 1,286,600 | 757,200 |
AUSTRALIA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 23,900 | $ 272,200 | $ 64,900 | $ 311,600 |
Leases (Maturities of Lease Lia
Leases (Maturities of Lease Liabilities) (Details) | Sep. 30, 2023 USD ($) |
Leases | |
2023 | $ 14,200 |
2024 | 18,900 |
Total lease payments | 33,100 |
Less imputed interest | (2,500) |
Total | $ 30,600 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Jan. 01, 2019 | |
Leases | ||||||
Incremental borrowing rate | 6.50% | |||||
Operating lease right-of-use asset | $ 30,600 | $ 30,600 | $ 68,300 | $ 241,100 | ||
Operating lease, expense | $ 13,300 | $ 13,300 | $ 40,000 | $ 40,000 |
Employee Retention Tax Credit (
Employee Retention Tax Credit (Details Narrative) | Sep. 30, 2021 USD ($) |
Employee Retention Tax Credit | |
Employee payroll balance | $ 84,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Amortized expense | $ 420,600 | $ 420,600 |
Equity Award [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Restricted shares | 1,000,000 | |
Common stock value | $ 3,580,000 | |
Common stock price per share | $ 3.10 | |
Chief Executive Officer [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Annual base salary | $ 400,000 |