Nocopi (NNUP) 10-K 31 Mar 23 2022 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Dec. 31, 2022	Mar. 13, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2022
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2022
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
Title of 12(g) Security	Common Stock, Par Value $0.01
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
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 Public Float			$ 9,574,000
Entity Common Stock, Shares Outstanding		9,251,178
Auditor Name	Morison Cogen LLP
Auditor Firm ID	536
Auditor Location	Blue Bell, Pennsylvania

Balance Sheets

Balance Sheets - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 5,337,800	$ 1,846,700
Accounts receivable less $12,000 allowance for doubtful accounts	1,103,500	970,800
Inventory	486,400	422,700
Prepaid and other	103,300	160,000
Total current assets	7,031,000	3,400,200
Fixed assets
Leasehold improvements	58,400	58,400
Furniture, fixtures and equipment	164,400	164,100
Fixed assets, gross	222,800	222,500
Less: accumulated depreciation and amortization	167,800	134,200
Total fixed assets	55,000	88,300
Other assets
Long-term receivables	2,463,100	185,000
Operating lease right of use – building	68,300	115,800
Other assets	2,531,400	300,800
Total assets	9,617,400	3,789,300
Current liabilities
Accounts payable	97,700	3,700
Accrued expenses	173,700	151,500
Income taxes	287,100	0
Operating lease liability – current	50,700	47,500
Total current liabilities	609,200	202,700
Other liabilities
Accrued expenses, non-current	172,200	13,000
Operating lease liability – non-current	17,600	68,300
Total other liabilities	189,800	81,300
Stockholders’ equity
Series A preferred stock, $1.00 par value, authorized – 300,000 shares, Issued and outstanding – none	0	0
Common stock, $0.01 par value, authorized – 75,000,000 shares, Issued and outstanding – 2022 -  9,251,178 shares; 2021 - 6,751,178 shares	92,500	67,500
Paid-in capital	16,659,600	13,184,600
Accumulated deficit	(7,933,700)	(9,746,800)
Total stockholders' equity	8,818,400	3,505,300
Total liabilities and stockholders’ equity	$ 9,617,400	$ 3,789,300

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for Doubtful Accounts	$ 12,000	$ 12,000
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	9,251,178	6,751,178
Common stock, shares outstanding	9,251,178	6,751,178

Statements of Comprehensive Inc

Statements of Comprehensive Income - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenues
Licenses, royalties and fees	$ 3,613,000	$ 809,900
Product and other sales	1,014,200	1,142,000
Total revenues	4,627,200	1,951,900
Cost of revenues
Licenses, royalties and fees	174,200	168,000
Product and other sales	553,500	570,100
Total cost of revenues	727,700	738,100
Gross profit	3,899,500	1,213,800
Operating expenses
Research and development	140,400	181,500
Sales and marketing	494,500	287,700
General and administrative	1,219,200	719,400
Total operating expenses	1,854,100	1,188,600
Net income from operations	2,045,400	25,200
Other income (expenses)
Interest income	64,200	20,700
Interest expense and bank charges	(2,000)	(2,200)
Total other income (expenses)	62,200	18,500
Net income before income taxes	2,107,600	43,700
Income taxes	294,500	(5,700)
Net income	$ 1,813,100	$ 49,400
Net income per common share
Basic	$ 0.24	$ 0.01
Diluted	$ 0.24	$ 0.01
Weighted average common shares outstanding
Basic	7,584,511	6,743,615
Diluted	7,584,511	6,743,615

Statement of Stockholders' Equi

Statement of Stockholders' Equity - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance – December 31, 2021 at Dec. 31, 2020	$ 67,400	$ 13,181,900	$ (9,796,200)	$ 3,453,100
Beginning balance, shares at Dec. 31, 2020	6,737,041
Exercise of warrants	$ 100	2,700		2,800
Exercise of warrants, shares	14,137
Net income			49,400	49,400
Balance – December 31, 2022 at Dec. 31, 2021	$ 67,500	13,184,600	(9,746,800)	3,505,300
Ending balance, shares at Dec. 31, 2021	6,751,178
Sales of common stock	$ 25,000	3,475,000		3,500,000
Sale of common stock, shares	2,500,000
Net income			1,813,100	1,813,100
Balance – December 31, 2022 at Dec. 31, 2022	$ 92,500	$ 16,659,600	$ (7,933,700)	$ 8,818,400
Ending balance, shares at Dec. 31, 2022	9,251,178

Statements of Cash Flows

Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Operating Activities
Net income	$ 1,813,100	$ 49,400
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciation and amortization	34,100	30,500
Net income adjusted for non-cash operating activities	1,847,200	79,900
(Increase) decrease in assets
Accounts receivable	(132,700)	310,000
Inventory	(63,700)	(97,900)
Prepaid and other	56,700	(62,200)
Long-term receivables	(2,230,600)	419,000
Increase (decrease) in liabilities
Accounts payable and accrued expenses	227,900	(99,800)
Income taxes	287,100	(36,300)
Total increase in operating capital	263,600	84,500
Net cash provided by (used in) operating activities	(8,100)	512,700
Investing Activities
Additions to fixed assets	(800)	(31,600)
Net cash used in investing activities	(800)	(31,600)
Financing Activities
Issuance of common stock	3,500,000
Exercise of warrants		2,800
Net cash provided by financing activities	3,500,000	2,800
Increase in cash and cash equivalents	3,491,100	483,900
Cash and Cash Equivalents
Beginning of year	1,846,700	1,362,800
End of year	5,337,800	1,846,700
Cash paid for taxes		38,000
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Accumulated depreciation and amortization	500	600
Furniture, fixtures and equipment	$ (500)	$ (600)

Organization of the Company

Organization of the Company	12 Months Ended
	Dec. 31, 2022
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, 2022
Accounting Policies [Abstract]
Significant Accounting Policies	2. Significant Accounting Policies Financial Statement Presentation Estimates Cash and cash equivalents Investment securities held to maturity 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 Stock-based payments Earnings per share 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, 2022, 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 affect loans, debt securities, trade receivables, and any other financial assets that have the contractual right to receive cash. The ASU requires an entity to recognize expected credit losses rather than incurred losses for financial assets. For public entities, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. ASU No. 2019-10 In August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40), Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.

Cash and Cash Equivalents

Cash and Cash Equivalents	12 Months Ended
	Dec. 31, 2022
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents	3 Cash and Cash Equivalents Schedule of Cash and Cash Equivalents Year ended December 31 2022 2021 Cash and cash equivalents Cash and money market funds $ 917,400 $ 1,846,700 U.S. Treasury Bills 4,420,400 — Cash and cash equivalents $ 5,337,800 $ 1,846,700 The amortized cost and fair value of securities held to maturity at December 31, 2022 are as follows: Schedule of amortized cost and fair value of securities held to maturity Amortized Cost Fair Value U.S. Treasury Bills Due January 19, 2023 $ 1,122,600 $ 1,123,200 Due April 20, 2023 1,110,300 1,110,300 Due July 13, 2023 1,100,300 1,098,300 Due October 5, 2023 1,087,200 1,087,000 Total $ 4,420,400 $ 4,418,800

Concentration of Credit Risk

Concentration of Credit Risk	12 Months Ended
	Dec. 31, 2022
Risks and Uncertainties [Abstract]
Concentration of Credit Risk	4 Concentration of Credit Risk Certain financial instruments potentially subject our Company to concentrations of credit risk. These financial instruments consist primarily of cash, cash equivalents and accounts receivable. At December 31, 2022, our Company’s deposits and short-term investments with a financial institution were $ 4,838,000 250,000

Long-term Receivables

Long-term Receivables	12 Months Ended
	Dec. 31, 2022
Receivables [Abstract]
Long-term Receivables	5. Long-term Receivables As of December 31, 2022, the Company had long-term receivables of $ 2,463,100 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 recognized $ 2,810,580 132,300 196,500 194,700 The current portion of the three new license agreements and one license agreement entered into in prior years, in the amount of $ 507,400 374,500 The following table summarizes the future minimum payments due under the three new license agreements as of December 31, 2022: Schedule of future minimum payments Year Ending December 31: 2024 $ 642,000 2025 $ 570,000 2026 $ 570,000 2027 $ 557,500 2028 $ 520,000 Total $ 2,859,500 The Company has evaluated the collectibility of the long-term receivables and believes them to be fully collectible as of December 31, 2022. 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 December 31, 2022, and will be amortized over the term of the license agreements using the effective interest method. The unamortized balance of the receivables as of December 31, 2022 is $ 2,450,800 The Company has also considered the potential impact of changes in interest rates on the present value of the three new receivables. A hypothetical 1 21,400

Line of Credit

Line of Credit	12 Months Ended
	Dec. 31, 2022
Line Of Credit
Line of Credit	6 Line of Credit In November 2018, our Company negotiated a $ 150,000 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

Stockholders_ Equity

Stockholders’ Equity	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Stockholders’ Equity	7. Stockholders’ Equity On August 25, 2022, our Company filed Articles of Amendment to its Articles of Incorporation with the State Department of Assessments and Taxation of the State of Maryland one-for-ten Effective Time The reverse stock split did not affect any stockholder’s ownership percentage of our Company’s shares, except to the limited extent that the reverse stock split resulted in any stockholder owning a fractional share. No fractional shares were issued in connection with the reverse stock split. Each stockholder who would otherwise have been entitled to receive a fraction of a share of our Company’s common stock instead received one whole share of common stock. On August 1, 2022 our Company entered into a stock purchase agreement in connection with a private placement for total gross proceeds of $ 3.5 2,500,000 1.40 Board of Directors approved On September 13, 2022, the sale pursuant to the closed. No placement fees or commissions were paid in connection with this transaction. During the second quarter of 2021, holders of the remaining 14,137 14,137 0.20

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes At December 31, 2022, our Company had federal taxable income of approximately $ 799,100 1,174,300 1,792,900 2,638,800 143,400 457,700 State Income Tax Expense Year ended December 31 2022 2021 Current federal taxes $ 167,800 $ — Current state taxes 126,700 (5,700 ) $ 294,500 $ (5,700 ) The reconciliation of the statutory federal rate to our Company’s effective tax rate follows: Reconciliation of the Statutory Federal Rate 2022 2021 Amount % Amount % Income tax at U.S. federal income tax rate $ 442,600 21 $ 9,700 21 State tax net of federal tax effect 166,300 8 (2,600 ) (5 ) Other — — (13,800 ) (30 ) Increase in (utilization of ) operating losses (314,400 ) (15 ) 1,000 2 $ 294,500 14 $ (5,700 ) (12 ) The components of deferred tax assets and liabilities as of December 31, 2022 and 2021 are as follows: Deferred Tax Assets and Liabilities 2022 2021 Deferred tax asset for NOL carryforwards $ 143,400 $ 457,700 Deferred tax liability - other Valuation allowance (143,400 ) (457,700 ) Deferred tax liability $ — $ — Our Company follows FASB ASC 740.10, which provides guidance for the recognition and measurement of certain tax positions in an enterprise’s financial statements. Recognition involves a determination of whether it is more likely than not that a tax position will be sustained upon examination with the presumption that the tax position will be examined by the appropriate taxing authority having full knowledge of all relevant information. Our Company’s policy is to record interest and penalties associated with unrecognized tax benefits as additional income taxes in the statement of comprehensive income. As of January 1, 2022, our Company had no no no Tax years from 2020 through 2022 remain subject to examination by U.S. federal and state tax jurisdictions.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2022
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 no 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 was $ 53,300 Maturities of lease liabilities are as follows: Maturities of Lease Liabilities Operating Leases Year ending December 31 2023 $ 56,200 2024 18,900 Total lease payments 75,100 Less imputed interest (6,800 ) Total $ 68,300 Our Company has an employment agreement, expiring in May 2024, 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 75,000 Executive Vice President of Corporate Development whereby Mr. Winger receives a salary set by our Company’s Board of Directors, currently set at $ 125,000 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, 2022
Compensation Related Costs [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, 2022, 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 no At December 31, 2022 and December 31, 2021, our Company had no Outstanding Warrants Weighted Exercise Average Number of Price Range Exercise Shares Per Share Price Outstanding at December 31, 2020 14,137 $ 0.20 $ 0.20 Warrants exercised 14,137 0.20 0.20 Outstanding at December 31, 2021 — — — — — — Outstanding at December 31, 2022 — — — 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

Major Customer and Geographic I

Major Customer and Geographic Information	12 Months Ended
	Dec. 31, 2022
Segment Reporting [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: Revenues from Non-affiliated Customers Year ended December 31 2022 2021 Customer A 66 27 Customer B 19 48 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: Non-affiliated Customers with Accounts Receivable More Than 10% December 31 2022 2021 Customer A 84 74 Customer B 6 21 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: Revenue by Geographic Region Year ended December 31 2022 2021 North America $ 3,331,600 $ 812,800 South America 1,600 4,100 Europe 200 – Asia 968,000 1,041,300 Australia 325,800 93,700 $ 4,627,200 $ 1,951,900

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Financial Statement Presentation	Financial Statement Presentation
Estimates	Estimates
Cash and cash equivalents	Cash and cash equivalents
Investment securities held to maturity	Investment securities held to maturity
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
Stock-based payments	Stock-based payments
Earnings per share	Earnings per share
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, 2022, 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 affect loans, debt securities, trade receivables, and any other financial assets that have the contractual right to receive cash. The ASU requires an entity to recognize expected credit losses rather than incurred losses for financial assets. For public entities, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. ASU No. 2019-10 In August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40), Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.

Cash and Cash Equivalents (Tabl

Cash and Cash Equivalents (Tables)	12 Months Ended
	Dec. 31, 2022
Cash and Cash Equivalents [Abstract]
Schedule of Cash and Cash Equivalents	Schedule of Cash and Cash Equivalents Year ended December 31 2022 2021 Cash and cash equivalents Cash and money market funds $ 917,400 $ 1,846,700 U.S. Treasury Bills 4,420,400 — Cash and cash equivalents $ 5,337,800 $ 1,846,700
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 January 19, 2023 $ 1,122,600 $ 1,123,200 Due April 20, 2023 1,110,300 1,110,300 Due July 13, 2023 1,100,300 1,098,300 Due October 5, 2023 1,087,200 1,087,000 Total $ 4,420,400 $ 4,418,800

Long-term Receivables (Tables)

Long-term Receivables (Tables)	12 Months Ended
	Dec. 31, 2022
Receivables [Abstract]
Schedule of future minimum payments	Schedule of future minimum payments Year Ending December 31: 2024 $ 642,000 2025 $ 570,000 2026 $ 570,000 2027 $ 557,500 2028 $ 520,000 Total $ 2,859,500

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
State Income Tax Expense	State Income Tax Expense Year ended December 31 2022 2021 Current federal taxes $ 167,800 $ — Current state taxes 126,700 (5,700 ) $ 294,500 $ (5,700 )
Reconciliation of the Statutory Federal Rate	Reconciliation of the Statutory Federal Rate 2022 2021 Amount % Amount % Income tax at U.S. federal income tax rate $ 442,600 21 $ 9,700 21 State tax net of federal tax effect 166,300 8 (2,600 ) (5 ) Other — — (13,800 ) (30 ) Increase in (utilization of ) operating losses (314,400 ) (15 ) 1,000 2 $ 294,500 14 $ (5,700 ) (12 )
Deferred Tax Assets and Liabilities	Deferred Tax Assets and Liabilities 2022 2021 Deferred tax asset for NOL carryforwards $ 143,400 $ 457,700 Deferred tax liability - other Valuation allowance (143,400 ) (457,700 ) Deferred tax liability $ — $ —

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Maturities of Lease Liabilities	Maturities of Lease Liabilities Operating Leases Year ending December 31 2023 $ 56,200 2024 18,900 Total lease payments 75,100 Less imputed interest (6,800 ) Total $ 68,300

Stock Options, Warrants and 4_2

Stock Options, Warrants and 401(k) Savings Plan (Tables)	12 Months Ended
	Dec. 31, 2022
Compensation Related Costs [Abstract]
Outstanding Warrants	Outstanding Warrants Weighted Exercise Average Number of Price Range Exercise Shares Per Share Price Outstanding at December 31, 2020 14,137 $ 0.20 $ 0.20 Warrants exercised 14,137 0.20 0.20 Outstanding at December 31, 2021 — — — — — — Outstanding at December 31, 2022 — — —

Major Customer and Geographic_2

Major Customer and Geographic Information (Tables)	12 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
Revenues from Non-affiliated Customers	Revenues from Non-affiliated Customers Year ended December 31 2022 2021 Customer A 66 27 Customer B 19 48
Non-affiliated Customers with Accounts Receivable More Than 10%	Non-affiliated Customers with Accounts Receivable More Than 10% December 31 2022 2021 Customer A 84 74 Customer B 6 21
Revenue by Geographic Region	Revenue by Geographic Region Year ended December 31 2022 2021 North America $ 3,331,600 $ 812,800 South America 1,600 4,100 Europe 200 – Asia 968,000 1,041,300 Australia 325,800 93,700 $ 4,627,200 $ 1,951,900

Cash and Cash Equivalents (Deta

Cash and Cash Equivalents (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Cash and Cash Equivalents [Abstract]
Cash and money market funds	$ 917,400	$ 1,846,700
U.S. Treasury Bills	4,420,400
Cash and cash equivalents	$ 5,337,800	$ 1,846,700

Cash and Cash Equivalents (De_2

Cash and Cash Equivalents (Details 1)	Dec. 31, 2022 USD ($)
Cash and Cash Equivalents [Line Items]
Amortized Cost	$ 4,420,400
Fair Value	4,418,800
Due January [Member]
Cash and Cash Equivalents [Line Items]
Amortized Cost	1,122,600
Fair Value	1,123,200
Due April [Member]
Cash and Cash Equivalents [Line Items]
Amortized Cost	1,110,300
Fair Value	1,110,300
Due July [Member]
Cash and Cash Equivalents [Line Items]
Amortized Cost	1,100,300
Fair Value	1,098,300
Due October [Member]
Cash and Cash Equivalents [Line Items]
Amortized Cost	1,087,200
Fair Value	$ 1,087,000

Concentration of Credit Risk (D

Concentration of Credit Risk (Details Narrative)	Dec. 31, 2022 USD ($)
Risks and Uncertainties [Abstract]
Cash uninsured by FDIC	$ 4,838,000
Cash FDIC insured amount	$ 250,000

Long-term Receivables (Details)

Long-term Receivables (Details)	Dec. 31, 2022 USD ($)
Receivables [Abstract]
2024	$ 642,000
2025	570,000
2026	570,000
2027	557,500
2028	520,000
Total	$ 2,859,500

Long-term Receivables (Details

Long-term Receivables (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Receivables [Abstract]
Long-term receivables	$ 2,463,100	$ 185,000
Incremental borrowing rate	4%
Royalty revenue	$ 2,810,580
Imputed interest	132,300
Commission expense	196,500
Accrued commission payable	194,700
Accounts receivable	507,400	$ 374,500
Unamortized balance	$ 2,450,800
Increase or decrease in incremental borrowing rate	1%
Increase or decrease in present value of receivables	$ 21,400

Line of Credit (Details Narrati

Line of Credit (Details Narrative)	12 Months Ended
	Dec. 31, 2022 USD ($)
Line Of Credit
Line of Credit Facility, Maximum Borrowing Capacity	$ 150,000
Line of Credit Facility, Interest Rate Description	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

Stockholders_ Equity (Details N

Stockholders’ Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended
	Aug. 02, 2022	Aug. 25, 2022	Jun. 30, 2021
Subsidiary, Sale of Stock [Line Items]
Reverse stock split		one-for-ten
Proceeds from Issuance or Sale of Equity	$ 3,500
Warrants purchased			14,137
Warrant [Member]
Subsidiary, Sale of Stock [Line Items]
Warrants outstanding			14,137
Warrants exercise price			$ 0.20
Private Placement [Member]
Subsidiary, Sale of Stock [Line Items]
Stock Issued During Period, Shares, New Issues	2,500,000
Share Price	$ 1.40

Income Taxes (Details - State I

Income Taxes (Details - State Income Tax Expense) - USD ($)	1 Months Ended	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Current federal taxes	$ 799,100	$ 167,800
Current state taxes		126,700	(5,700)
Income tax expense (benefit)		$ 294,500	$ (5,700)

Income Taxes (Details - Reconci

Income Taxes (Details - Reconciliation of the Statutory Fedreal Rate) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Income tax at U.S. federal income tax rate	$ 442,600	$ 9,700
Income tax at U.S. federal income tax rate percentage	21%	21%
State tax net of federal tax effect	$ 166,300	$ (2,600)
State tax net of federal tax effect percentage	8%	(5.00%)
Other		$ (13,800)
Other (percentage)		(30.00%)
Increase in (utilization of ) operating losses	$ (314,400)	$ 1,000
Increase in (utilization of ) operating losses percentage	(15.00%)	2%
Total	$ 294,500	$ (5,700)
Total (Percentage)	14%	(12.00%)

Income Taxes (Details - Deferre

Income Taxes (Details - Deferred Tax Assets and Liabilities) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Deferred tax asset for NOL carryforwards	$ 143,400	$ 457,700
Valuation allowance	(143,400)	(457,700)
Deferred tax liability

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	1 Months Ended	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Operating Loss Carryforwards [Line Items]
Federal taxable income	$ 799,100	$ 167,800
Deferred tax assets valuation allowance	143,400	143,400	457,700
Unrecognized tax benefits	0	0
Change in unrecognized tax benefits during the period		0
Accrual for uncertain tax positions	0	0
Domestic Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards			1,174,300
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 1,792,900	$ 1,792,900	$ 2,638,800

Commitments and Contingencies_2

Commitments and Contingencies (Details - Maturities of Lease Liabilities) - USD ($)	Dec. 31, 2022	Jan. 01, 2019
Commitments and Contingencies Disclosure [Abstract]
2023	$ 56,200
2024	18,900
Total lease payments	75,100
Less imputed interest	(6,800)
Total	$ 68,300	$ 0

Commitments and Contingencies_3

Commitments and Contingencies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Jan. 01, 2019
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Operating lease right-of-use asset	$ 68,300	$ 115,800	$ 241,100
Operating lease liabilit	68,300		$ 0
Operating leases	53,300	$ 53,300
Commission	194,700
Dr Feindtein [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Compensation	120,000
Mr Stovold [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Commission	75,000
Matthew C Winger [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Commission	$ 125,000

Stock Options, Warrants and 4_3

Stock Options, Warrants and 401(k) Savings Plan (Details - Outstanding Warrants) - Warrant [Member] - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Warrants outstanding, beginning	0	14,137
Exercise Price Range Per Share Outstanding, beginning	$ 0	$ 0.20
Weighted Average Exercise Price, beginning	$ 0	$ 0.20
Warrants exercised	0	14,137
Exercise Price Range Per Share Warrants exercised	$ 0	$ 0.20
Exercised	$ 0	$ 0.20
Warrants outstanding, ending	0	0
Exercise Price Range Per Share Outstanding, ending	$ 0	$ 0
Weighted Average Exercise Price, ending	$ 0	$ 0

Stock Options, Warrants and 4_4

Stock Options, Warrants and 401(k) Savings Plan (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Compensation Related Costs [Abstract]
Compensation expense	$ 0	$ 0
Unrecognized portion of expense	0
Outstanding warrants	0	0
Contributions expense	$ 0	$ 0

Major Customer and Geographic_3

Major Customer and Geographic Information (Details - Non-affiliated Customers) - Revenue Benchmark [Member]	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Customer A [Member]
Revenue, Major Customer [Line Items]
Risk percentage	66%	27%
Customer B [Member]
Revenue, Major Customer [Line Items]
Risk percentage	19%	48%

Major Customer and Geographic_4

Major Customer and Geographic Information (Details - Non-affiliated Customers with Accounts Receivable) - Accounts Receivable [Member]	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Customer A [Member]
Revenue, Major Customer [Line Items]
Risk percentage	84%	74%
Customer B [Member]
Revenue, Major Customer [Line Items]
Risk percentage	6%	21%

Major Customer and Geographic_5

Major Customer and Geographic Information (Details - Revenue by Geographic Region) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 4,627,200	$ 1,951,900
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	3,331,600	812,800
South America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	1,600	4,100
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	200
Asia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	968,000	1,041,300
AUSTRALIA
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 325,800	$ 93,700