Nocopi (NNUP) 10-K 30 Mar 21 2020 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2020	Mar. 17, 2021	Jun. 30, 2020
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, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Public Float			$ 6,454,000
Entity Common Stock Shares Outstanding		67,353,690
Entity Well Known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Auditor Attestation Flag	false
Entity Incorporation State Country Name	MD
Entity File Number	000-20333

Balance Sheets

Balance Sheets - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Current assets
Cash	$ 1,362,800	$ 688,000
Accounts receivable less allowance for doubtful accounts - 2020-$12,000; 2019-$5,000	1,280,800	1,352,300
Inventory	324,800	127,900
Prepaid and other	97,800	135,000
Total current assets	3,066,200	2,303,200
Fixed assets
Leasehold improvements	27,800	24,200
Furniture, fixtures and equipment	163,700	252,500
Fixed assets, gross	191,500	276,700
Less: accumulated depreciation and amortization	104,300	206,600
Total fixed assets	87,200	70,100
Other assets
Long-term receivables	559,500	957,000
Operating lease right of use - building	160,300	202,000
Other assets	719,800	1,159,000
Total assets	3,873,200	3,532,300
Current liabilities
Convertible debentures		97,900
Accounts payable	5,700	44,300
Accrued expenses	178,600	231,600
Income taxes	36,300	52,400
Operating lease liability - current	44,500	41,700
Total current liabilities	265,100	467,900
Other liabilities
Accrued expenses, non-current	39,200	67,000
Deferred income taxes		47,400
Operating lease liability - non-current	115,800	160,300
Total other liabilities	155,000	274,700
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 - 2020 - 67,353,690 shares; 2019 - 61,044,698 shares	673,500	610,400
Paid-in capital	12,575,800	12,483,900
Accumulated deficit	(9,796,200)	(10,304,600)
Total stockholders' equity	3,453,100	2,789,700
Total liabilities and stockholders' equity	$ 3,873,200	$ 3,532,300

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 12,000	$ 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	67,353,690	61,044,698
Common stock, shares outstanding	67,353,690	61,044,698

Statements of Comprehensive Inc

Statements of Comprehensive Income - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Revenues
Licenses, royalties and fees	$ 744,000	$ 793,800
Product and other sales	1,914,700	1,743,600
Total revenues	2,658,700	2,537,400
Cost of revenues
Licenses, royalties and fees	223,800	169,100
Product and other sales	899,900	672,600
Total cost of revenues	1,123,700	841,700
Gross profit	1,535,000	1,695,700
Operating expenses
Research and development	173,500	165,600
Sales and marketing	356,400	329,900
General and administrative	526,100	393,900
Total operating expenses	1,056,000	889,400
Net income from operations	479,000	806,300
Other income (expenses)
Interest income	18,200	11,700
Interest expense and bank charges	(6,900)	(10,800)
Total other income (expenses)	11,300	900
Net income before income taxes	490,300	807,200
Income taxes	(18,100)	52,300
Net income	$ 508,400	$ 754,900
Net income per common share
Basic	$ 0.01	$ 0.01
Diluted	$ 0.01	$ 0.01
Weighted average common shares outstanding
Basic	64,052,777	59,443,207
Diluted	64,172,276	59,836,570

Statement of Stockholders' Equi

Statement of Stockholders' Equity - USD ($)	Common stock [Member]	Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
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
Conversion of debentures and accrued interest to common stock	$ 57,600	86,400		$ 144,000
Conversion of debentures and accrued interest to common stock shares	5,758,992
Exercise of warrants	$ 5,500	5,500		11,000
Exercise of warrants, shares	550,000
Net income			508,400	508,400
Balance at Dec. 31, 2020	$ 673,500	$ 12,575,800	$ (9,796,200)	$ 3,453,100
Balance, shares at Dec. 31, 2020	67,353,690			67,353,690

Statements of Cash Flows

Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Operating Activities
Net income	$ 508,400	$ 754,900
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	21,500	10,800
Bad debt expense	7,000
Deferred income taxes	(47,400)	(61,400)
Other assets	439,200	193,200
Other liabilities	(69,500)	174,300
Common stock issued for services		25,400
Net income adjusted for non-cash operating activities	859,200	1,097,200
(Increase) decrease in assets
Accounts receivable	64,500	(773,300)
Inventory	(196,900)	5,600
Prepaid and other	37,200	(91,400)
Increase (decrease) in liabilities
Accounts payable and accrued expenses	(45,500)	108,700
Income taxes	(16,100)	13,800
Total increase (decrease) in operating capital	(156,800)	(736,600)
Net cash provided by operating activities	702,400	360,600
Investing Activities
Additions to fixed assets	(38,600)	(73,400)
Net cash used in investing activities	(38,600)	(73,400)
Financing Activities
Exercise of warrants	11,000
Net cash provided by financing activities	11,000
Increase in cash	674,800	287,200
Cash
Beginning of year	688,000	400,800
End of year	1,362,800	688,000
Cash paid for taxes	45,500	100,000
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	123,800	1,800
Furniture, fixtures and equipment	(123,800)	(1,800)
Convertible debentures	97,900	30,400
Accrued expenses	46,100	12,300
Common stock	(57,600)	(17,100)
Paid-in capital	$ (86,400)	$ (25,600)

Organization of the Company

Organization of the Company	12 Months Ended
	Dec. 31, 2020
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, 2020
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 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: 2020 2019 Basic shares outstanding 64,052,777 59,443,207 Incremental shares from assumed conversion of warrants 119,499 393,363 Diluted shares outstanding 64,172,276 59,836,570 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 As of December 31, 2020, there were no recently adopted accounting standards that had a material effect on our Company’s financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments 2019-10

Concentration of Credit Risk

Concentration of Credit Risk	12 Months Ended
	Dec. 31, 2020
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, 2020, our Company’s deposits with a financial institution were $1,112,800 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, 2020
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, 2020
Convertible Debt [Abstract]
Convertible Debentures	5. Convertible Debentures During the third quarter of 2020, the holders of all previously outstanding convertible debentures totaling approximately $97,900 that were due during the third quarter of 2020 elected to convert those debentures plus approximately $46,100 of accrued interest into 5,758,992 shares of restricted stock of our Company. At December 31, 2020, our Company had no convertible debentures outstanding. The convertible debentures bore interest at 7%. 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 in earlier periods 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. During the third quarter of 2020, holders of 550,000 warrants exercised their warrants to purchase a total of 550,000 shares of our Company’s common stock.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2020
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 vested 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 was amortized to expense over the first year of the engagement.

Other Income (Expenses)

Other Income (Expenses)	12 Months Ended
	Dec. 31, 2020
Other Income and Expenses [Abstract]
Other Income (Expenses)	7. Other Income (Expenses) Other income (expenses) in the years ended December 31, 2020 and December 31, 2019 includes interest on convertible debentures that were held by seven investors.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes There is no provision for federal income taxes for the years ended December 31, 2020 and December 31, 2019 due to the availability of federal and state net operating loss (NOL’s) carryforwards. At December 31, 2020 and December 31, 2019, our Company had federal NOL’s approximating $1,166,100 and $1,622,000, respectively and state NOL’s approximating $2,647,000 and $2,843,100, respectively. The federal and state net operating losses at December 31, 2020 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, 2020 and December 31, 2019. Our Company has established a 100% valuation allowance of $456,700 and $454,200 at December 31, 2020 and December 31, 2019, 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 2020 2019 Current state taxes $ 29,400 $ 52,400 Deferred state taxes (47,400 ) – $ (18,000 ) $ 52,400 The reconciliation of the statutory federal rate to our Company’s effective tax rate follows: 2020 2019 Amount % Amount % Income tax at U.S. federal income tax rate $ 106,700 21 $ 158,600 21 State tax net of federal tax effect (18,100 ) (4 ) 52,300 7 Other 15,800 3 – – Change in valuation allowance (122,500 ) (24 ) (158,600 ) (21 ) $ (18,100 ) (4 ) $ 52,300 7 The components of deferred tax assets and liabilities as of December 31, 2020 and 2019 are as follows: 2020 2019 Deferred tax asset for NOL carryforwards $ 456,700 $ 454,200 Deferred tax liability - other – (47,400 ) Valuation allowance (456,700 ) (454,200 ) $ – $ (47,400 ) 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, 2020. There was no change in unrecognized tax benefits during the year ended December 31, 2020 and there was no accrual for uncertain tax positions as of December 31, 2020. Tax years from 2018 through 2020 remain subject to examination by U.S. federal and state tax jurisdictions.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. 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, 2020 are: $53,100 – 2021; $54,600 – 2022; $56,200 – 2023 and $18,900 – 2024. Total lease expense under operating leases was $53,300 in each of the years ended December 31, 2020 and December 31, 2019. Maturities of lease liabilities are as follows: Operating Leases Year ending December 31 2021 $ 53,100 2022 54,600 2023 56,200 2024 18,900 Total lease payments 182,800 Less imputed interest (22,500 ) Total $ 160,300 Our Company has an employment agreement, expiring in May 2022, 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 2022, 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 2021 and $68,800 to be paid in 2022. 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, 2020
Share-based Payment Arrangement [Abstract]
Stock Options, Warrants and 401(k) Savings Plan	10. Stock Options, Warrants and 401(k) Savings Plan Our Company follows FASB ASC 718, Share Based Payment, At December 31, 2020, 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, 2020 and December 31, 2019 and there was no unrecognized portion of expense at December 31, 2020. At December 31, 2020, our Company had 141,365 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 two investors who acquired convertible debentures from our Company in 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 Warrants exercised 550,000 0.02 0.02 Outstanding at December 31, 2020 141,365 $0.02 $0.02 Weighted average remaining contractual life (years) .52 Weighted Exercise Average Number of Price Range Exercise Shares Per Share Price Exercisable warrants at year end: 2020 141,365 $0.02 $0.02 Weighted average remaining contractual life (years) .52 The aggregate intrinsic value of warrants outstanding and exercisable as of December 31, 2020 was approximately $17,700. The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying warrants and the closing stock price of $0.145 for our Company’s common stock on December 31, 2020. At December 31, 2020, our Company has reserved 141,365 shares of common stock for possible future issuance upon the exercise of 141,365 warrants. 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 2020 or 2019.

Major Customer and Geographic I

Major Customer and Geographic Information	12 Months Ended
	Dec. 31, 2020
Major Customer and Geographic Information [Abstract]
Major Customer and Geographic Information	11. 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 2020 2019 Customer A 62% 55% Customer B 16% 18% 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 2020 2019 Customer A 25% 26% Customer B 65% 67% 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 2020 2019 North America $ 701,600 $ 856,300 South America 2,200 – Europe – 600 Asia 1,845,500 1,630,500 Australia 109,400 50,000 $ 2,658,700 $ 2,537,400

COVID-19

COVID-19	12 Months Ended
	Dec. 31, 2020
Risks and Uncertainties [Abstract]
COVID-19	12 . COVID-19 A novel strain of coronavirus (“COVID-19”) continues to spread in many countries around the world including the United States. In March 2020, the Governor of Pennsylvania declared a health emergency and issued an order to close all nonessential businesses until further notice. Our Company’s operations were deemed to be essential and thus remained open. Our Company’s results of operations were negatively affected in 2020 in part as a result of a significant increase in the cost of raw materials utilized by our Company in the manufacture of certain of its products as a result of price increases related to the impact of the ongoing COVID-19 pandemic on the availability and supply of these raw materials. A

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2020
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
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: 2020 2019 Basic shares outstanding 64,052,777 59,443,207 Incremental shares from assumed conversion of warrants 119,499 393,363 Diluted shares outstanding 64,172,276 59,836,570
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 As of December 31, 2020, there were no recently adopted accounting standards that had a material effect on our Company’s financial statements.
Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments 2019-10

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
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: 2020 2019 Basic shares outstanding 64,052,777 59,443,207 Incremental shares from assumed conversion of warrants 119,499 393,363 Diluted shares outstanding 64,172,276 59,836,570

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2020
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 2020 2019 Current state taxes $ 29,400 $ 52,400 Deferred state taxes (47,400 ) – $ (18,000 ) $ 52,400
Reconciliation of the Statutory Fedreal Rate	The reconciliation of the statutory federal rate to our Company’s effective tax rate follows: 2020 2019 Amount % Amount % Income tax at U.S. federal income tax rate $ 106,700 21 $ 158,600 21 State tax net of federal tax effect (18,100 ) (4 ) 52,300 7 Other 15,800 3 – – Change in valuation allowance (122,500 ) (24 ) (158,600 ) (21 ) $ (18,100 ) (4 ) $ 52,300 7
Deferred Tax Assets and Liabilities	The components of deferred tax assets and liabilities as of December 31, 2020 and 2019 are as follows: 2020 2019 Deferred tax asset for NOL carryforwards $ 456,700 $ 454,200 Deferred tax liability - other – (47,400 ) Valuation allowance (456,700 ) (454,200 ) $ – $ (47,400 )

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Maturities of Lease Liabilities	Maturities of lease liabilities are as follows: Operating Leases Year ending December 31 2021 $ 53,100 2022 54,600 2023 56,200 2024 18,900 Total lease payments 182,800 Less imputed interest (22,500 ) Total $ 160,300

Stock Options, Warrants and 4_2

Stock Options, Warrants and 401(k) Savings Plan (Tables)	12 Months Ended
	Dec. 31, 2020
Share-based Payment Arrangement [Abstract]
Outstanding Warrants	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 Warrants exercised 550,000 0.02 0.02 Outstanding at December 31, 2020 141,365 $0.02 $0.02 Weighted average remaining contractual life (years) .52 Weighted Exercise Average Number of Price Range Exercise Shares Per Share Price Exercisable warrants at year end: 2020 141,365 $0.02 $0.02 Weighted average remaining contractual life (years) .52

Major Customer and Geographic_2

Major Customer and Geographic Information (Tables)	12 Months Ended
	Dec. 31, 2020
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 2020 2019 Customer A 62% 55% Customer B 16% 18%
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 2020 2019 Customer A 25% 26% Customer B 65% 67%
Revenue by Geographic Region	Our Company’s revenues by geographic region are as follows: Year ended December 31 2020 2019 North America $ 701,600 $ 856,300 South America 2,200 – Europe – 600 Asia 1,845,500 1,630,500 Australia 109,400 50,000 $ 2,658,700 $ 2,537,400

Significant Accounting Polici_4

Significant Accounting Policies (Basic and Diluted Weighted Average Common Shares Outstanding) (Details) - shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Basic shares outstanding	64,052,777	59,443,207
Incremental shares from assumed conversion of warrants	119,499	393,363
Diluted shares outstanding	64,172,276	59,836,570

Concentration of Credit Risk (D

Concentration of Credit Risk (Details)	Dec. 31, 2020USD ($)
Risks and Uncertainties [Abstract]
Cash uninsured by FDIC	$ 1,112,800

Line of Credit (Details)

Line of Credit (Details)	12 Months Ended
	Dec. 31, 2020USD ($)
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) - USD ($)	3 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2020
Common stock [Member]
Debt Instrument [Line Items]
Exercise of warrants, shares			550,000
Convertible Debt [Member]
Debt Instrument [Line Items]
Debt outstanding			$ 0
Interest rate			7.00%
Debt converted	$ 97,900	$ 30,400
Interest converted	$ 46,100	$ 12,300
Shares issued	5,758,992	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, 2020	Dec. 31, 2019
Operating Loss Carryforwards [Line Items]
Deferred tax assets valuation allowance	$ 456,700	$ 454,200
Unrecognized tax benefits
Change in unrecognized tax benefits during the period
Accrual for uncertain tax positions
Federal [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	1,166,100	1,622,000
State [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 2,647,000	$ 2,843,100
Minimum [Member]
Operating Loss Carryforwards [Line Items]
Tax years open for examination	2018
Maximum [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards expiration date	Dec. 31, 2032
Tax years open for examination	2020

Income Taxes (State Income Tax

Income Taxes (State Income Tax Expense) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Current state taxes	$ 29,400	$ 52,400
Deferred state taxes	(47,400)
Income tax expense	$ (18,000)	$ 52,400

Income Taxes (Reconciliation of

Income Taxes (Reconciliation of the Statutory Fedreal Rate) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Amount:
Income tax at U.S. federal income tax rate	$ 106,700	$ 158,600
State tax net of federal tax effect	(18,100)	52,300
Other	15,800
Change in valuation allowance	(122,500)	(158,600)
Total	$ (18,100)	$ 52,300
Percent:
Income tax at U.S. federal income tax rate	21.00%	21.00%
State tax net of federal tax effect	(4.00%)	7.00%
Other	3.00%
Change in valuation allowance	(24.00%)	(21.00%)
Total	(4.00%)	7.00%

Income Taxes (Deferred Tax Asse

Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Deferred tax asset for NOL carryforwards	$ 456,700	$ 454,200
Deferred tax liability - other		(47,400)
Valuation allowance	(456,700)	(454,200)
Deferred tax liability		$ (47,400)

Commitments and Contingencies_2

Commitments and Contingencies (Operating Leases) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Jan. 01, 2019
Commitments and Contingencies Disclosure [Abstract]
Operating lease right of use asset	$ 160,300	$ 202,000	$ 241,000
Operating lease liability	$ 160,300		$ 241,000
Incremental borrowing rate	6.00%
Lease expiration	Dec. 31, 2024
Future minimum payments due under operating leases:
2021	$ 53,100
2022	54,600
2023	56,200
2024	18,900
Lease expense	$ 53,300	$ 53,300

Commitments and Contingencies_3

Commitments and Contingencies (Maturities of Lease Liabilities) (Details) - USD ($)	Dec. 31, 2020	Jan. 01, 2019
Lessee Disclosure [Abstract]
2021	$ 53,100
2022	54,600
2023	56,200
2024	18,900
Total lease payments	182,800
Less imputed interest	(22,500)
Total	$ 160,300	$ 241,000

Commitments and Contingencies_4

Commitments and Contingencies (Employment Agreements) (Details) - Employment Agreement [Member]	12 Months Ended
	Dec. 31, 2020USD ($)
Other Commitments [Line Items]
Future minimum compensation payments due year 2021	$ 195,000
Future minimum compensation payments due year 2022	$ 68,800
Chief Executive Officer [Member]
Other Commitments [Line Items]
Employment contract, expiration date	2022-05
Annual base compensation owed to employee per employment agreement	$ 120,000
Chief Operating Officer [Member]
Other Commitments [Line Items]
Employment contract, expiration date	2022-03
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, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense from options not yet recognized	$ 0
Employer contributions for 401(k) savings plan charged to expense during period	0
Stock option compensation expense	0	$ 0
Warrant intrinsic value	17,700
Warrant intrinsic value exercisable	$ 17,700
Closing stock price	$ 0.145
Common shares reserved for future issue	141,365
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]	12 Months Ended
	Dec. 31, 2020$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants outstanding | shares	691,365
Warrants exercised | shares	550,000
Warrants outstanding | shares	141,365
Weighted Average Exercise Price | $ / shares	$ 0.02
Exercised | $ / shares	0.02
Weighted Average Exercise Price | $ / shares	$ 0.02
Weighted average remaining contractual life (years)	6 months 7 days
Warrants exercisable | shares	141,365
Weighted average exercise price, exercisable | $ / shares	$ 0.02
Warrants exercisable, weighted average remaining contractual life (years)	6 months 7 days

Major Customer and Geographic_3

Major Customer and Geographic Information (Non-affiliated Customers) (Details) - Revenue [Member]	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Customer A [Member]
Revenue, Major Customer [Line Items]
Risk percentage	62.00%	55.00%
Customer B [Member]
Revenue, Major Customer [Line Items]
Risk percentage	16.00%	18.00%

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, 2020	Dec. 31, 2019
Customer A [Member]
Concentration Risk [Line Items]
Risk percentage	25.00%	26.00%
Customer B [Member]
Concentration Risk [Line Items]
Risk percentage	65.00%	67.00%

Major Customer and Geographic_5

Major Customer and Geographic Information (Revenue by Geographic Region) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 2,658,700	$ 2,537,400
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	701,600	856,300
South America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	2,200
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues		600
Asia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	1,845,500	1,630,500
Australia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 109,400	$ 50,000