Nocopi (NNUP) 10-K 30 Mar 20 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2019	Mar. 17, 2020	Jun. 30, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	NOCOPI TECHNOLOGIES INC/MD/
Entity Central Index Key	0000888981
Current Fiscal Year End Date	--12-31
Document Type	10-K
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Public Float			$ 2,325,000
Entity Common Stock Shares Outstanding		61,044,698
Entity Well Known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Incorporation State Country Name	MD
Entity File Number	000-20333

Balance Sheets

Balance Sheets - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Current assets
Cash	$ 688,000	$ 400,800
Accounts receivable less $5,000 allowance for doubtful accounts	1,352,300	579,000
Inventory	127,900	133,500
Prepaid and other	135,000	43,600
Total current assets	2,303,200	1,156,900
Fixed assets
Leasehold improvements	24,200	19,700
Furniture, fixtures and equipment	252,500	185,400
Fixed assets, gross	276,700	205,100
Less: accumulated depreciation and amortization	206,600	197,600
Total fixed assets	70,100	7,500
Other assets
Long-term receivables	957,000	1,352,200
Operating lease right of use - building	202,000
Other assets	1,159,000	1,352,200
Total assets	3,532,300	2,516,600
Current liabilities
Convertible debentures	97,900	128,300
Accounts payable	44,300	16,500
Accrued expenses	231,600	163,000
Income taxes	52,400	38,600
Operating lease liability - current	41,700
Total current liabilities	467,900	346,400
Other liabilities
Accrued expenses, non-current	67,000	94,700
Deferred income taxes	47,400	108,800
Operating lease liability - non-current	160,300
Total other liabilities	274,700	203,500
Commitments and contingencies
Stockholders' equity
Series A preferred stock, $1.00 par value, Authorized - 300,000 shares, Issued and outstanding - none
Common stock, $0.01 par value Authorized - 75,000,000 shares, Issued and outstanding - 2019 - 61,044,698 shares; 2018 - 58,616,716 shares	610,400	586,200
Paid-in capital	12,483,900	12,440,000
Accumulated deficit	(10,304,600)	(11,059,500)
Total stockholders' equity	2,789,700	1,966,700
Total liabilities and stockholders' equity	$ 3,532,300	$ 2,516,600

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 5,000	$ 5,000
Preferred stock, par value	$ 1	$ 1
Preferred stock, shares authorized	300,000	300,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	61,044,698	58,616,716
Common stock, shares outstanding	61,044,698	58,616,716

Statements of Operations

Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenues
Licenses, royalties and fees	$ 793,800	$ 2,242,500
Product and other sales	1,743,600	1,099,200
Total revenues	2,537,400	3,341,700
Cost of revenues
Licenses, royalties and fees	169,100	115,400
Product and other sales	672,600	445,800
Total cost of revenues	841,700	561,200
Gross profit	1,695,700	2,780,500
Operating expenses
Research and development	165,600	153,200
Sales and marketing	329,900	387,300
General and administrative	393,900	369,400
Total operating expenses	889,400	909,900
Net income from operations	806,300	1,870,600
Other income (expenses)
Interest income	11,700	2,900
Interest expense and bank charges	(10,800)	(12,300)
Total other income (expenses)	900	(9,400)
Net income before income taxes	807,200	1,861,200
Income taxes	52,300	205,800
Net income	$ 754,900	$ 1,655,400
Net income per common share
Basic	$ 0.01	$ 0.03
Diluted	$ 0.01	$ 0.03
Weighted average common shares outstanding
Basic	59,443,207	58,616,716
Diluted	59,836,570	58,980,420

Statement of Stockholders' Equi

Statement of Stockholders' Equity - USD ($)	Common stock [Member]	Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2017	$ 586,200	$ 12,440,000	$ (12,811,000)	$ 215,200
Balance, shares at Dec. 31, 2017	58,616,716			58,616,716
Cumulative effect of accounting at January 1, 2018, Note 2			96,100	$ 96,100
Net income			1,655,400	1,655,400
Balance at Dec. 31, 2018	$ 586,200	12,440,000	(11,059,500)	$ 1,966,700
Balance, shares at Dec. 31, 2018	58,616,716			58,616,716
Issuance of common stock	$ 7,100	18,300		$ 25,400
Issuance of common stock shares	720,000
Conversion of debentures and accrued interest to common stock	$ 17,100	25,600		42,700
Conversion of debentures and accrued interest to common stock shares	1,707,982
Net income			754,900	754,900
Balance at Dec. 31, 2019	$ 610,400	$ 12,483,900	$ (10,304,600)	$ 2,789,700
Balance, shares at Dec. 31, 2019	61,044,698			61,044,698

Statements of Cash Flows

Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Operating Activities
Net income	$ 754,900	$ 1,655,400
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	10,800	7,100
Deferred income taxes	(61,400)	108,800
Other assets	193,200	(1,352,200)
Other liabilities	174,300	94,700
Common stock issued for services	25,400
Cumulative effect of accounting change		96,100
Net income adjusted for non-cash operating activities	1,097,200	609,900
(Increase) decrease in assets
Accounts receivable	(773,300)	(286,900)
Inventory	5,600	(22,900)
Prepaid and other	(91,400)	(8,300)
Increase (decrease) in liabilities
Accounts payable and accrued expenses	108,700	(190,100)
Income taxes	13,800	38,600
Deferred revenue		(99,400)
Total increase (decrease) in operating capital	(736,600)	(569,000)
Net cash provided by operating activities	360,600	40,900
Investing Activities
Additions to fixed assets	(73,400)	(500)
Net cash used in investing activities	(73,400)	(500)
Increase in cash	287,200	40,400
Cash
Beginning of year	400,800	360,400
End of year	688,000	400,800
Cash paid for interest		1,000
Cash paid for taxes	100,000	44,600
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Operating lease right of use - building	241,100
Operating lease liability	(241,100)
Accumulated depreciation and amortization	1,800
Furniture, fixtures and equipment	(1,800)
Convertible debentures	30,400
Accrued expenses	12,300
Common stock	(17,100)
Paid-in capital	$ (25,600)

Organization of the Company

Organization of the Company	12 Months Ended
	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization of the Company	1. Organization of the Company Nocopi Technologies, Inc. (the “Company”) is organized under the laws of the State of Maryland. Its main business activities are the development and distribution of document security products and the licensing of its patented reactive ink technologies for the Entertainment and Toy and the Document and Product Authentication markets in the United States and foreign countries. Our Company operates in one principal industry segment.

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Significant Accounting Policies	2. Significant Accounting Policies Financial Statement Presentation – Estimates Cash Accounts receivable and credit policies The carrying amount of accounts receivable is reduced by an allowance that reflects management’s best estimate of the amounts that will not be collected. Management individually reviews all accounts receivable balances that exceed 90 days from invoice date and based on an assessment of current creditworthiness, estimates the portion, if any, of the balance that will not be collected. Inventory Fixed assets Patent costs Revenues Revenue from Contracts with Customers Revenue Recognition The adoption of the new guidance affected our recognition of revenue from licenses and royalties. Under our previous accounting practice, we recognized revenue from licenses and royalties on a straight-line basis over the term of the related license agreement. As a result of our adoption of the new guidance, we will recognize revenue from fixed fee licensees at a point in time when the term begins if the contract provides for patented ink technology only as it exists at the time that it is granted. However, for license agreements that provide for rights to future ink technology, revenue will be recognized over the term of the license agreement. Revenue for per-unit license agreement will be recognized in the period that the Company receives the related royalty report. Revenue for product sales will be recognized upon shipment to the customer. There are no contract assets or contract liabilities and therefore no unsatisfied performance obligations. The Company does not offer any warranties, however, damaged products can be returned for credit or refund. For disaggregation of revenue by customers and geographic region, see Note 12. During the second quarter of 2018, we negotiated an amendment to a license agreement with a licensee that, in addition to expanding the technologies that the licensee is permitted to market, provides for a four year extension to the license agreement that contains guaranteed royalties payable in installments over the term of the amendment to the license agreement. Since the performance obligation is to grant the license for the use of certain patented ink technology as it exists at the time that it is granted, the promise to grant the license is a performance obligation satisfied at a point in time in accordance with Topic 606. Our Company recorded a decrease to the opening balance of the accumulated deficit of $96,100 and a corresponding charge to deferred revenue as of January 1, 2018 due to the cumulative impact of the adoption of Topic 606. The change in accumulated deficit on our Balance Sheet at December 31, 2018, including the aggregate impact of the change in accounting principles which was effective on January 1, 2018, was as follows: Accumulated deficit – January 1, 2018 $ (12,811,000 ) Net income 1,655,400 Cumulative effect of accounting change at January 1, 2018 96,100 Accumulated deficit – December 31, 2018 $ (11,059,500 ) Income taxes Fair value Convertible debentures Stock-based payments Earnings per share The table below presents the computation of basic and diluted weighted average common shares outstanding: 2019 2018 Basic shares outstanding 59,443,207 58,616,716 Incremental shares from assumed conversion of warrants 393,363 363,704 Diluted shares outstanding 59,836,570 58,980,420 Comprehensive income Recoverability of Long-Lived Assets Our Company follows FASB ASC 360-35, “Impairment or Disposal of Long-Lived Assets.” The Statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Our Company is not aware of any events or circumstances which indicate the existence of an impairment which would be material to our Company’s annual financial statements. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) and subsequent related updates. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from operating leases. The Company adopted the standard effective January 1, 2019 under the optional transition method which allows the entity to apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment, if any, to the opening balance of retained earnings in the period of adoption. The standard had a material impact on the balance sheet. As of January 1, 2019, the operating lease right of use asset and operating lease liability amounted to $241,000 with no cumulative-effect adjustment. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842), Targeted Improvements Leases In May 2017, the FASB issued ASU No. 2017-09, Compensation – Stock Compensation (Topic 718), Scope of Modification Accounting Recently Issued Accounting Pronouncements Not Yet Adopted As of December 31, 2019, there are no recently issued accounting standards not yet adopted which would have a material effect on the Company’s financial statements.

Concentration of Credit Risk

Concentration of Credit Risk	12 Months Ended
	Dec. 31, 2019
Risks and Uncertainties [Abstract]
Concentration of Credit Risk	3 Concentration of Credit Risk Certain financial instruments potentially subject our Company to concentrations of credit risk. These financial instruments consist primarily of cash and accounts receivables. At December 31, 2019, our Company’s deposits with a financial institution were $438,000 in excess of the FDIC deposit insurance coverage of $250,000. There is a concentration of credit risk with respect to accounts receivable due to the number of major customers.

Line of Credit

Line of Credit	12 Months Ended
	Dec. 31, 2019
Line of Credit Facility [Abstract]
Line of Credit	4 Line of Credit In November 2018, our Company negotiated a $150,000 revolving line of credit with a bank to provide a source of working capital, if required. The line of credit is secured by all the assets of our Company and bears interest at the bank’s prime rate for a period of one year and its prime rate plus 1.5% thereafter. The line of credit is subject to an annual review and quiet period. There have been no borrowings under the line of credit since its inception.

Convertible Debentures

Convertible Debentures	12 Months Ended
	Dec. 31, 2019
Convertible Debt [Abstract]
Convertible Debentures	5. Convertible Debentures At December 31, 2019, our Company had convertible debentures totaling $97,900 outstanding, which are due during the third quarter of 2020. The convertible debentures bear interest at 7%. During the third quarter of 2019, our Company’s Board of Directors approved and the holders of $97,900 of the $128,300 of convertible debentures previously outstanding agreed to extend the maturity dates of those convertible debentures for one year to the third quarter of 2020 with no change in the terms or conditions of the debentures. At the option of the lender, the debentures and accrued interest are convertible in whole or part into common stock of our Company at $0.025 per share. During the third quarter of 2019, the holders of approximately $30,400 of previously outstanding convertible debentures elected to convert those debentures plus approximately $12,300 of accrued interest into 1,707,982 shares of restricted stock of our Company. Our Company also granted warrants to purchase 691,365 shares of our Company’s common stock at $0.02 per share to the holders of the debentures. The warrants are exercisable two years after issuance and expire seven years after issuance. The fair value of the warrants was determined using the Black-Scholes pricing model. The relative fair value of the warrants was recorded as a discount to the notes payable with an offsetting credit to additional paid-in capital since our Company determined that the warrants were an equity instrument in accordance with FASB ASC 815. The debt discount related to the warrant issuances has been accreted through interest expense over the term of the notes payable.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2019
Stockholders' Equity Note [Abstract]
Stockholders' Equity	6. Stockholders’ Equity In October 2019, our Company issued 720,000 shares of restricted common stock to an investor relations firm as a portion of compensation for services. The common stock vests on a pro rata basis over one year. The fair value of the common stock amounting to $25,400 on the inception date of agreement is being amortized to expense over the first year of the engagement.

Other Income (Expenses)

Other Income (Expenses)	12 Months Ended
	Dec. 31, 2019
Other Income and Expenses [Abstract]
Other Income (Expenses)	7. Other Income (Expenses) Other income (expenses) in the years ended December 31, 2019 and December 31, 2018 includes interest on convertible debentures held by seven investors.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes There is no provision for federal income taxes for the years ended December 31, 2019 and December 31, 2018 due to the availability of net operating loss carryforwards. At December 31, 2019 and December 31, 2018, our Company had NOL’s approximating $1,622,000 and $2,478,000, respectively. The operating losses at December 31, 2019 are available to offset future taxable income; however, if not utilized, they expire in varying amounts through the year 2032. The utilization of these NOL’s to reduce future income taxes will depend on the generation of sufficient taxable income prior to their expiration. There were no material temporary differences for the years ended December 31, 2019 and December 31, 2018. Our Company has established a 100% valuation allowance of $454,200 and $693,800 at December 31, 2019 and December 31, 2018, respectively, for the deferred tax assets due to the uncertainty of their realization. The components for state income tax expense resulting from the limitation on the use of net operating losses are: Year ended December 31 2019 2018 Current state taxes $ 52,400 $ 93,400 Deferred state taxes – 108,800 $ 52,400 $ 202,200 The reconciliation of the statutory federal rate to our Company’s effective tax rate follows: 2019 2018 Amount % Amount % Income tax at U.S. federal income tax rate $ 158,600 21 $ 398,200 21 State tax net of federal tax effect 52,300 7 202,200 7 Utilization of operating losses (158,600 ) (21) (398,200 ) (21 ) $ 52,300 7 $ 202,200 7 The components of deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows: 2019 2018 Deferred tax asset for NOL carryforwards $ 454,200 $ 693,800 Deferred tax liability - other (47,400 ) (108,800 ) Valuation allowance (454,200 ) (693,800 ) $ (47,400 ) $ (108,800 ) The income tax provision consists of the following: 2019 2018 Current $ 119,700 $ 97,000 Deferred (67,400 ) 108,800 $ 52,300 $ 205,800 Our Company has adopted the provisions of FASB ASC 740-10-50-15, “Unrecognized Tax Benefit Related Disclosures.” There were no unrecognized tax benefits as of the date of adoption and no unrecognized tax benefits at December 31, 2019. There was no change in unrecognized tax benefits during the year ended December 31, 2019 and there was no accrual for uncertain tax positions as of December 31, 2019. Interest and penalties totaling $3,600 in 2018 were recognized as income tax expense in the statement of operations and in the balance sheet. Tax years from 2016 through 2019 remain subject to examination by U.S. federal and state tax jurisdictions.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2019
Related Party Transactions [Abstract]
Related Party Transactions	9. Related Party Transactions During the year ended December 31, 2018, our Company paid $235,400 to Michael A. Feinstein, M.D., our Company’s Chairman of the Board and Chief Executive Officer, representing the balance of previously deferred salary owed to him under an employment agreement with our Company. During the five month period ended May 31, 2018, Dr. Feinstein deferred $35,400 of salary. In June 2018, the periodic salary payments provided for in Dr. Feinstein’s employment agreement resumed. At December 31, 2019, there was no remaining deferred salary owed to Dr. Feinstein. There was no interest payable on the deferred salary.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	10. Commitments and Contingencies 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%. The minimum lease payments do not include common area annual expenses which are considered to be non-lease components. As of January 1, 2019 the operating lease right-of-use asset and operating lease liability amounted to $241,100 with no cumulative-effect adjustment to the opening balance of accumulated deficit. 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. Future minimum lease payments under non-cancelable operating leases with initial or remaining terms of one year or more at December 31, 2019 are: $51,600 – 2020; $53,100 – 2021; $54,600 – 2022; $56,200 – 2023 and $18,900 – 2024. Total lease expense under operating leases was $53,300 and $45,100 in each of the years ended December 31, 2019 and December 31, 2018, respectively. Maturities of lease liabilities are as follows: Operating Leases Year ending December 31 2020 $ 51,600 2021 53,100 2022 54,600 2023 56,200 2024 18,900 Total lease payments 234,400 Less imputed interest (32,400 ) Total $ 202,000 Our Company has an employment agreement, expiring in May 2021, with Michael A. Feinstein, M.D., its Chairman of the Board and Chief Executive Officer. The employment agreement contains one-year renewal provisions that became effective after the original term. Dr. Feinstein receives base compensation of $120,000 per year effective January 1, 2020 plus a performance bonus determined by our Company’s Board of Directors. Our Company has an employment agreement, expiring in March 2021, with Terry W. Stovold, its Chief Operating Officer, whereby Mr. Stovold receives a salary set by our Company’s Board of Directors, currently set at $75,000, along with a commission of seven percent on sales generated by his efforts. The employment agreement contains one-year renewal provisions that became effective after the original term. Future minimum compensation payments under these employment agreements are: $195,000 to be paid in 2020 and $68,800 to be paid in 2021. From time to time, our Company may be subject to legal proceedings and claims that arise in the ordinary course of its business.

Stock Options, Warrants and 401

Stock Options, Warrants and 401(k) Savings Plan	12 Months Ended
	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Stock Options, Warrants and 401(k) Savings Plan	11. Stock Options, Warrants and 401(k) Savings Plan Our Company follows FASB ASC 718, Share Based Payment, At December 31, 2019, our Company did not have an active stock option plan. Our Company uses the Black-Scholes option pricing model to calculate the grant-date fair value of an award. There was no compensation expense recognized during the years ended December 31, 2019 and December 31, 2018 and there was no unrecognized portion of expense at December 31, 2019. At December 31, 2019, our Company had 691,365 warrants to purchase common stock of our Company outstanding at an exercise price of $0.02 and expiring at various dates through July 2021. The warrants are held by ten investors who acquired convertible debentures from our Company in 2013 and 2014. A summary of outstanding warrants follows: Weighted Exercise Average Number of Price Range Exercise Shares Per Share Price Outstanding at December 31, 2018 and December 31, 2019 691,365 $0.02 $0.02 Weighted average remaining contractual life (years) .83 Weighted Exercise Average Number of Price Range Exercise Shares Per Share Price Exercisable warrants at year end: 2019 691,365 $0.02 $0.02 Weighted average remaining contractual life (years) .83 The aggregate intrinsic value of warrants outstanding and exercisable as of December 31, 2019 was approximately $38,000. The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying warrants and the closing stock price of $0.075 for our Company’s common stock on December 31, 2019. At December 31, 2019, our Company has reserved 6,297,543 shares of common stock for possible future issuance upon exercise of 691,365 warrants and for the conversion of approximately $97,900 of convertible debentures and accrued interest into 5,606,178 shares of common stock. Our Company sponsors a 401(k) savings plan, covering substantially all employees, providing for employee and employer contributions. Employer contributions are made at the discretion of our Company. There were no contributions charged to expense during 2019 or 2018.

Major Customer and Geographic I

Major Customer and Geographic Information	12 Months Ended
	Dec. 31, 2019
Major Customer and Geographic Information [Abstract]
Major Customer and Geographic Information	12. 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 our Company’s total revenues were: Year ended December 31 2019 2018 Customer A 55% 21% Customer B 18% 59% 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: December 31 2019 2018 Customer A 26% 6% Customer B 67% 86% 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: Year ended December 31 2019 2018 North America $ 856,300 $ 2,280,000 South America – 1,500 Europe 600 200 Asia 1,630,500 1,020,000 Australia 50,000 40,000 $ 2,537,400 $ 3,341,700

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2019
Subsequent Events [Abstract]
Subsequent Event	13. Subsequent Event In December 2019, a novel strain of coronavirus (“COVID-19”) was reported in Wuhan, China. The World Health Organization has declared COVID-19 to constitute a global pandemic. On March 19, 2020 the Governor of Pennsylvania declared a health emergency and issued an order to close all nonessential businesses until further notice. Our operations are deemed to be essential and thus we remain open. However, disruptions to our business operations could occur as a result of quarantines of employees and suppliers in areas affected by the outbreak, facility closures, and travel and logistics restrictions in connection with the outbreak. While we expect this matter to negatively impact its results of operations, cash flow and financial position, the related financial impact cannot be reasonably estimated at this time.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Financial Statement Presentation	Financial Statement Presentation –
Estimates	Estimates
Cash	Cash
Accounts receivable and credit policies	Accounts receivable and credit policies The carrying amount of accounts receivable is reduced by an allowance that reflects management’s best estimate of the amounts that will not be collected. Management individually reviews all accounts receivable balances that exceed 90 days from invoice date and based on an assessment of current creditworthiness, estimates the portion, if any, of the balance that will not be collected.
Inventory	Inventory
Fixed assets	Fixed assets
Patent costs	Patent costs
Revenues	Revenues Revenue from Contracts with Customers Revenue Recognition The adoption of the new guidance affected our recognition of revenue from licenses and royalties. Under our previous accounting practice, we recognized revenue from licenses and royalties on a straight-line basis over the term of the related license agreement. As a result of our adoption of the new guidance, we will recognize revenue from fixed fee licensees at a point in time when the term begins if the contract provides for patented ink technology only as it exists at the time that it is granted. However, for license agreements that provide for rights to future ink technology, revenue will be recognized over the term of the license agreement. Revenue for per-unit license agreement will be recognized in the period that the Company receives the related royalty report. Revenue for product sales will be recognized upon shipment to the customer. There are no contract assets or contract liabilities and therefore no unsatisfied performance obligations. The Company does not offer any warranties, however, damaged products can be returned for credit or refund. For disaggregation of revenue by customers and geographic region, see Note 12. During the second quarter of 2018, we negotiated an amendment to a license agreement with a licensee that, in addition to expanding the technologies that the licensee is permitted to market, provides for a four year extension to the license agreement that contains guaranteed royalties payable in installments over the term of the amendment to the license agreement. Since the performance obligation is to grant the license for the use of certain patented ink technology as it exists at the time that it is granted, the promise to grant the license is a performance obligation satisfied at a point in time in accordance with Topic 606. Our Company recorded a decrease to the opening balance of the accumulated deficit of $96,100 and a corresponding charge to deferred revenue as of January 1, 2018 due to the cumulative impact of the adoption of Topic 606. The change in accumulated deficit on our Balance Sheet at December 31, 2018, including the aggregate impact of the change in accounting principles which was effective on January 1, 2018, was as follows: Accumulated deficit – January 1, 2018 $ (12,811,000 ) Net income 1,655,400 Cumulative effect of accounting change at January 1, 2018 96,100 Accumulated deficit – December 31, 2018 $ (11,059,500 )
Income taxes	Income taxes
Fair value	Fair value
Convertible debentures	Convertible debentures
Stock-based payments	Stock-based payments
Earnings per share	Earnings per share The table below presents the computation of basic and diluted weighted average common shares outstanding: 2019 2018 Basic shares outstanding 59,443,207 58,616,716 Incremental shares from assumed conversion of warrants 393,363 363,704 Diluted shares outstanding 59,836,570 58,980,420
Comprehensive income	Comprehensive income
Recoverability of Long-Lived Assets	Recoverability of Long-Lived Assets Our Company follows FASB ASC 360-35, “Impairment or Disposal of Long-Lived Assets.” The Statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Our Company is not aware of any events or circumstances which indicate the existence of an impairment which would be material to our Company’s annual financial statements.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) and subsequent related updates. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from operating leases. The Company adopted the standard effective January 1, 2019 under the optional transition method which allows the entity to apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment, if any, to the opening balance of retained earnings in the period of adoption. The standard had a material impact on the balance sheet. As of January 1, 2019, the operating lease right of use asset and operating lease liability amounted to $241,000 with no cumulative-effect adjustment. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842), Targeted Improvements Leases In May 2017, the FASB issued ASU No. 2017-09, Compensation – Stock Compensation (Topic 718), Scope of Modification Accounting
Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Issued Accounting Pronouncements Not Yet Adopted As of December 31, 2019, there are no recently issued accounting standards not yet adopted which would have a material effect on the Company’s financial statements.

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Change in Accumulated Deficit Balance	The change in accumulated deficit on our Balance Sheet at December 31, 2018, including the aggregate impact of the change in accounting principles which was effective on January 1, 2018, was as follows: Accumulated deficit – January 1, 2018 $ (12,811,000 ) Net income 1,655,400 Cumulative effect of accounting change at January 1, 2018 96,100 Accumulated deficit – December 31, 2018 $ (11,059,500 )
Computation of Basic and Diluted Weighted Average Common Shares Outstanding	The table below presents the computation of basic and diluted weighted average common shares outstanding: 2019 2018 Basic shares outstanding 59,443,207 58,616,716 Incremental shares from assumed conversion of warrants 393,363 363,704 Diluted shares outstanding 59,836,570 58,980,420

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
State Income Tax Expense	The components for state income tax expense resulting from the limitation on the use of net operating losses are: Year ended December 31 2019 2018 Current state taxes $ 52,400 $ 93,400 Deferred state taxes – 108,800 $ 52,400 $ 202,200
Reconciliation of the Statutory Fedreal Rate	The reconciliation of the statutory federal rate to our Company’s effective tax rate follows: 2019 2018 Amount % Amount % Income tax at U.S. federal income tax rate $ 158,600 21 $ 398,200 21 State tax net of federal tax effect 52,300 7 202,200 7 Utilization of operating losses (158,600 ) (21) (398,200 ) (21 ) $ 52,300 7 $ 202,200 7
Deferred Tax Assets and Liabilities	The components of deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows: 2019 2018 Deferred tax asset for NOL carryforwards $ 454,200 $ 693,800 Deferred tax liability - other (47,400 ) (108,800 ) Valuation allowance (454,200 ) (693,800 ) $ (47,400 ) $ (108,800 )
Federal Income Tax Expense	The income tax provision consists of the following: 2019 2018 Current $ 119,700 $ 97,000 Deferred (67,400 ) 108,800 $ 52,300 $ 205,800

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Maturities of Lease Liabilities	Maturities of lease liabilities are as follows: Operating Leases Year ending December 31 2020 $ 51,600 2021 53,100 2022 54,600 2023 56,200 2024 18,900 Total lease payments 234,400 Less imputed interest (32,400 ) Total $ 202,000

Stock Options, Warrants and 4_2

Stock Options, Warrants and 401(k) Savings Plan (Tables)	12 Months Ended
	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Warrants Outstanding	A summary of outstanding warrants follows: Weighted Exercise Average Number of Price Range Exercise Shares Per Share Price Outstanding at December 31, 2018 and December 31, 2019 691,365 $0.02 $0.02 Weighted average remaining contractual life (years) .83 Weighted Exercise Average Number of Price Range Exercise Shares Per Share Price Exercisable warrants at year end: 2019 691,365 $0.02 $0.02 Weighted average remaining contractual life (years) .83

Major Customer and Geographic_2

Major Customer and Geographic Information (Tables)	12 Months Ended
	Dec. 31, 2019
Segment Reporting [Abstract]
Revenues from Non-affiliated Customers	Our Company’s revenues, expressed as a percentage of total revenues, from non-affiliated customers that equaled 10% or more of our Company’s total revenues were: Year ended December 31 2019 2018 Customer A 55% 21% Customer B 18% 59%
Non-affiliated Customers with Accounts Receivable More Than 10%	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: December 31 2019 2018 Customer A 26% 6% Customer B 67% 86%
Revenue by Geographic Region	Our Company’s revenues by geographic region are as follows: Year ended December 31 2019 2018 North America $ 856,300 $ 2,280,000 South America – 1,500 Europe 600 200 Asia 1,630,500 1,020,000 Australia 50,000 40,000 $ 2,537,400 $ 3,341,700

Significant Accounting Polici_4

Significant Accounting Policies (Details) - USD ($)	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Operating lease right of use asset	$ 202,000	$ 241,000
Operating lease liability	$ 202,000	$ 241,000

Significant Accounting Polici_5

Significant Accounting Policies (Revenues) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Long-term receivable	$ 957,000	$ 1,352,200
Accrued expenses, non-current	67,000	94,700
Accumulated deficit	(11,059,500)	(12,811,000)
Net income	754,900	1,655,400
Cumulative effect of accounting change		96,100
Accumulated deficit	$ (10,304,600)	(11,059,500)
Topic 606 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Long-term receivable		1,521,700
Accrued expenses, non-current		$ 106,500

Significant Accounting Polici_6

Significant Accounting Policies (Basic and Diluted Weighted Average Common Shares Outstanding) (Details) - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Basic shares outstanding	59,443,207	58,616,716
Incremental shares from assumed conversion of warrants	393,363	363,704
Diluted shares outstanding	59,836,570	58,980,420

Concentration of Credit Risk (D

Concentration of Credit Risk (Details)	Dec. 31, 2019USD ($)
Risks and Uncertainties [Abstract]
Cash uninsured by FDIC	$ 438,000

Line of Credit (Details)

Line of Credit (Details)	12 Months Ended
	Dec. 31, 2019USD ($)
Line of Credit Facility [Abstract]
Line of credit borrowing capacity	$ 150,000
Interest rate	The line of credit is secured by all the assets of our Company and bears interest at the bank’s prime rate for a period of one year and its prime rate plus 1.5% thereafter.

Convertible Debentures (Details

Convertible Debentures (Details) - Convertible Debt [Member] - USD ($)	3 Months Ended
	Sep. 30, 2019	Dec. 31, 2019
Debt Instrument [Line Items]
Debt outstanding		$ 97,900
Convertible debentures extended for one year		$ 97,900
Interest rate		7.00%
Conversion price		$ 0.025
Debt converted	$ 30,400
Interest converted	$ 12,300
Shares issued	1,707,982
Stock purchased through warrants		691,365
Price per share of warrants		$ 0.02

Stockholders' Equity (Details)

Stockholders' Equity (Details)	12 Months Ended
	Dec. 31, 2019USD ($)shares
Class of Stock [Line Items]
Issuance of common stock	$ 25,400
Common stock [Member]
Class of Stock [Line Items]
Issuance of common stock	$ 7,100
Issuance of common stock shares | shares	720,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 1,622,000	$ 2,478,000
Deferred tax assets valuation allowance	454,200	693,800
Unrecognized tax benefits
Change in unrecognized tax benefits during the period
Accrual for uncertain tax positions
Interest and penalties from tax examinations recognized in the statement of operations		3,600
Interest and penalties from tax examinations recognized on the balance sheet		$ 3,600
Minimum [Member]
Operating Loss Carryforwards [Line Items]
Tax years open for examination	2016
Maximum [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards expiration date	Dec. 31, 2032
Tax years open for examination	2019

Income Taxes (State Income Tax

Income Taxes (State Income Tax Expense) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Current state taxes	$ 52,400	$ 93,400
Deferred state taxes		108,800
Income tax expense	$ 52,400	$ 202,200

Income Taxes (Reconciliation of

Income Taxes (Reconciliation of the Statutory Fedreal Rate) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Amount:
Income tax at U.S. federal income tax rate	$ 158,600	$ 398,200
State tax net of federal tax effect	52,300	202,200
Utilization of operating losses	(158,600)	(398,200)
Total	$ 52,300	$ 202,200
Percent:
Income tax at U.S. federal income tax rate	21.00%	21.00%
State tax net of federal tax effect	7.00%	7.00%
Utilization of operating losses	(21.00%)	(21.00%)
Total	7.00%	7.00%

Income Taxes (Deferred Tax Asse

Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Deferred tax asset for NOL carryforwards	$ 454,200	$ 693,800
Deferred tax liability - other	(47,400)	(108,800)
Valuation allowance	(454,200)	(693,800)
Deferred tax liability	$ (47,400)	$ (108,800)

Income Taxes (Income Tax Provis

Income Taxes (Income Tax Provision) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Current	$ 119,700	$ 97,000
Deferred	(67,400)	108,800
Income taxes	$ 52,300	$ 205,800

Related Party Transactions (Det

Related Party Transactions (Details) - Chief Executive Officer [Member] - USD ($)	5 Months Ended	12 Months Ended
	May 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Amount of salary deferred by related party	$ 35,400	$ 85,000
Amount of deferred salary owed to related party		$ 0
Portions of deferred salary paid to related party			$ 235,400

Commitments and Contingencies_2

Commitments and Contingencies (Operating Leases) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2019
Commitments and Contingencies Disclosure [Abstract]
Operating lease right of use asset	$ 202,000		$ 241,000
Operating lease liability	$ 202,000		$ 241,000
Incremental borrowing rate			6.00%
Lease expiration	Dec. 31, 2024
Future minimum payments due under operating leases:
2020	$ 51,600
2021	53,100
2022	54,600
2023	56,200
2024	18,900
Lease expense	$ 53,300	$ 45,100

Commitments and Contingencies_3

Commitments and Contingencies (Maturities of Lease Liabilities) (Details) - USD ($)	Dec. 31, 2019	Jan. 01, 2019
Lessee Disclosure [Abstract]
2020	$ 51,600
2021	53,100
2022	54,600
2023	56,200
2024	18,900
Total lease payments	234,400
Less imputed interest	(32,400)
Total	$ 202,000	$ 241,000

Commitments and Contingencies_4

Commitments and Contingencies (Employment Agreements) (Details) - Employment Agreement [Member]	12 Months Ended
	Dec. 31, 2019USD ($)
Other Commitments [Line Items]
Future minimum compensation payments due year 2020	$ 195,000
Future minimum compensation payments due year 2021	$ 68,800
Chief Executive Officer [Member]
Other Commitments [Line Items]
Employment contract, expiration date	2021-05
Annual base compensation owed to employee per employment agreement	$ 120,000
Chief Operating Officer [Member]
Other Commitments [Line Items]
Employment contract, expiration date	2021-03
Annual base compensation owed to employee per employment agreement	$ 75,000
Commission rate owed to employee expressed as percentage of sales	7.00%

Stock Options, Warrants and 4_3

Stock Options, Warrants and 401(k) Savings Plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense from options not yet recognized	$ 0	$ 0
Employer contributions for 401(k) savings plan charged to expense during period	0	0
Stock option compensation expense	0	$ 0
Warrant intrinsic value	38,000
Warrant intrinsic value exercisable	$ 38,000
Closing stock price	$ 0.075
Common shares reserved for future issue		6,297,543
Value of outstanding convertible debentures and accrued interest possibly converted		$ 97,900
Number of common shares reserved for future debt conversion		5,606,178
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants expiration date	2021-07

Stock Options, Warrants and 4_4

Stock Options, Warrants and 401(k) Savings Plan (Outstanding Warrants) (Details) - Warrant [Member] - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants outstanding	691,365	691,365
Warrants exercise price	$ 0.02	$ 0.02
Weighted average remaining contractual life (years)	9 months 29 days
Warrants exercisable	691,365	691,365
Weighted average exercise price, exercisable	$ 0.02	$ 0.02
Warrants exercisable, weighted average remaining contractual life (years)	9 months 29 days

Major Customer and Geographic_3

Major Customer and Geographic Information (Non-affiliated Customers) (Details) - Revenue [Member]	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Customer A [Member]
Revenue, Major Customer [Line Items]
Risk percentage	55.00%	21.00%
Customer B [Member]
Revenue, Major Customer [Line Items]
Risk percentage	18.00%	59.00%

Major Customer and Geographic_4

Major Customer and Geographic Information (Non-affiliated Customers with Accounts Receivable) (Details) - Accounts Receivable [Member]	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Customer A [Member]
Concentration Risk [Line Items]
Risk percentage	26.00%	6.00%
Customer B [Member]
Concentration Risk [Line Items]
Risk percentage	67.00%	86.00%

Major Customer and Geographic_5

Major Customer and Geographic Information (Revenue by Geographic Region) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 2,537,400	$ 3,341,700
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	856,300	2,280,000
South America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues		1,500
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	600	200
Asia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	1,630,500	1,020,000
Australia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 50,000	$ 40,000