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 |