Nocopi (NNUP) 10-Q 14 Nov 23 2023 Q3 Quarterly report Financial data

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