Nano Magic (NMGX) 10-Q 19 Dec 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	Nov. 20, 2019
Document And Entity Information
Entity Registrant Name	PEN INC.
Entity Central Index Key	0000891417
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		5,827,633
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash	$ 201,064	$ 221,502
Restricted cash		85,000
Accounts receivable, net	125,817	307,554
Inventory	897,943	827,527
Prepaid expenses and other current assets	59,726	81,864
Total Current Assets	1,284,550	1,523,447
Property, plant and equipment, net	318,066	328,028
Other assets	32,196	32,196
Total Assets	1,634,812	1,883,671
CURRENT LIABILITIES:
Accounts payable	1,309,745	1,375,042
Accounts payable - related parties	19,887	19,887
Accrued expenses and other current liabilities	440,515	478,155
Customer deposits
Bank revolving line of credit	(17,477)	330,892
Current portion of notes payable	74,381	73,562
Advances from related parties	140,000	140,000
Deferred revenue	99,599	89,730
Total Current Liabilities	2,066,650	2,507,268
Notes payable, net of current portion	129,797	129,798
Total Liabilities	2,196,447	2,637,066
Commitments and Contingencies (See Note 11)
STOCKHOLDERS' DEFICIT:
Preferred stock, $0.0001 par value, 20,000,000 shares authorized; no shares issued and outstanding
Additional paid-in capital	6,126,545	5,886,600
Accumulated deficit	(6,688,609)	(6,640,370)
Total Stockholders' Deficit	(561,635)	(753,396)
Total Liabilities and Stockholders' Deficit	1,634,812	1,883,671
Class A Common Stock [Member]
STOCKHOLDERS' DEFICIT:
Common stock value	429	374
Class B Common Stock [Member]
STOCKHOLDERS' DEFICIT:
Common stock value
Class Z Common Stock [Member]
STOCKHOLDERS' DEFICIT:
Common stock value

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Class A Common Stock [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	7,200,000	7,200,000
Common stock, shares issued	4,299,620	3,741,481
Common stock, shares outstanding	4,299,620	3,741,481
Class B Common Stock [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	2,500,000	2,500,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0
Class Z Common Stock [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	300,000	300,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
REVENUES:
Total Revenues	$ 757,861	$ 1,443,525
COST OF REVENUES:
Total Cost of Revenues	576,212	1,106,259
GROSS PROFIT	181,649	337,266
OPERATING EXPENSES:
Selling and marketing expenses	9,046	41,696
Salaries, wages and related benefits	31,291	164,024
Research and development	45	8,193
Professional fees	93,052	172,438
General and administrative expenses	143,777	147,309
Total Operating Expenses	277,211	533,660
INCOME (LOSS) FROM OPERATIONS	(95,562)	(196,394)
OTHER (EXPENSE) INCOME:
Interest expense	(2,594)	(16,341)
Other income, net	49,917	192,217
Total Other (Expense) Income	47,323	175,876
NET INCOME (LOSS)	$ (48,239)	$ (20,518)
NET INCOME (LOSS) PER COMMON SHARE:
Basic	$ (0.01)	$ (0.01)
Diluted	$ (0.01)	$ (0.01)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic	3,978,173	3,081,355
Diluted	3,978,173	3,081,355
Product [Member]
REVENUES:
Total Revenues	$ 441,488	$ 1,142,575
COST OF REVENUES:
Total Cost of Revenues	182,956	804,687
Contract Services [Member]
REVENUES:
Total Revenues	316,373	300,950
COST OF REVENUES:
Total Cost of Revenues	$ 393,256	$ 301,572

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Deficit - USD ($)	Class A Common Stock [Member]	Class B Common Stock [Member]	Class Z Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2017	$ 165	$ 142		$ 5,490,925	$ (6,587,237)	$ (1,096,005)
Balance, shares at Dec. 31, 2017	1,653,322	1,423,252
Common stock issued for cash, net of issuance costs	$ 55	$ 1		18,742		18,743
Common stock issued for cash, net of issuance costs, shares	4,443	9,438
Net loss					(20,518)	(20,518)
Balance at Mar. 31, 2018	$ 165			5,509,667	(6,607,755)	(1,097,780)
Balance, shares at Mar. 31, 2018	1,657,765	1,432,690
Balance at Dec. 31, 2017	$ 165	$ 142		5,490,925	(6,587,237)	(1,096,005)
Balance, shares at Dec. 31, 2017	1,653,322	1,423,252
Net loss						53,135
Balance at Dec. 31, 2018	$ 374			5,886,600	(6,640,370)	(753,396)
Balance, shares at Dec. 31, 2018	3,741,481
Common stock issued for cash, net of issuance costs	$ 55			223,200		223,255
Common stock issued for cash, net of issuance costs, shares	558,139
Warrants , options, and warrant options on private placement				16,745		16,745
Net loss					(48,239)	(48,239)
Balance at Mar. 31, 2019	$ 429			$ 6,126,545	$ (6,688,609)	$ (561,635)
Balance, shares at Mar. 31, 2019	4,299,620

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (48,239)	$ (20,518)	$ 53,135	$ 687,068
Adjustments to reconcile net loss to net cash provided by operating activities:
Change in inventory obsolescence reserve	35,381	9,766
Depreciation and amortization expense	12,444	16,272
Amortization of deferred lease incentives
Loss (gain) on sale of property, plant and equipment, net
Stock-based compensation	55	8,744
Change in operating assets and liabilities:
Accounts receivable	181,737	(373,314)
Accounts receivable - related party		14,226
Inventory	(105,797)	(296,423)
Prepaid expenses and other assets	22,138	(27,942)
Accounts payable	(65,297)	(129,068)
Accounts payable - related parties
Customer deposits		(169,970)
Accrued expenses	(37,640)	351,957
Deferred revenue	9,869	68,887
NET CASH PROVIDED BY OPERATING ACTIVITIES	4,651	(547,383)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment	(2,482)
NET CASH USED IN INVESTING ACTIVITIES	(2,482)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank lines of credit		1,157,600
Repayment of bank lines of credit	(348,369)	(606,571)
Repayment of bank loans	818	(18,066)
Proceeds from sale of common stock	239,944
Payment of issuance costs related to sale of common stock
Proceeds from advances from related parties		25,000
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	(107,607)	557,963
NET DECREASE IN CASH	(105,438)	10,580
CASH, beginning of year	306,502	233,299	233,299
CASH, end of period	201,064	243,879	306,502	$ 233,299
Cash paid during the period for interest
Interest	2,594	16,341
Income taxes
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Reclassification of accrued salary to notes payable - long-term
Accrued director fees settled with common stock		9,999
The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheet that sum to the total of the same such amounts shown in the consolidated statement of cash flows:
Cash	201,064	158,879	$ 221,502
Restricted cash		85,000
Total cash and restricted cash	$ 201,064	$ 243,879

Organization and Basis of Prese

Organization and Basis of Presentation	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation	NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION Organization PEN Inc. (“we”, “us”, “our”, “PEN” or the “Company”), a Delaware corporation, develops and sells a portfolio of nano-layer coatings, nano-based cleaners, and nano-composite products based on its proprietary technology, and performs nanotechnology product research and development generating revenues through performing contract services. Through our wholly-owned subsidiary, PEN Brands LLC, formerly known as Nanofilm, Ltd., we develop, manufacture and sell consumer and institutional products using nanotechnology to deliver unique performance attributes at the surfaces of a wide variety of substrates. These products are marketed internationally primarily to customers in the optical industry. On May 2, 2017, Nanofilm, Ltd. changed its name to PEN Brands LLC. Through our wholly-owned subsidiary, Applied Nanotech, Inc., we primarily perform design and development services for ourselves and for governmental and private customers. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information. Accordingly, they do not include all the information and disclosures required by US GAAP for annual financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the unaudited consolidated financial statements of the Company as of March 31, 2019 and for the three months ended March 31, 2019 and 2018. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the operating results for the full year ending December 31, 2019 or any other period. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related disclosures of the Company as of December 31, 2018 and for the year then ended, which were filed with the Securities and Exchange Commission on Form 10-K on November 13, 2019. Going Concern These consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the consolidated financial statements filed with our Form 10-K on November 14, 2019, the Company had a net loss of $53,135 and $687,068 for the years ended December 31, 2018 and 2017. Additionally, the Company had a net loss of $48,239 for the three months ended March 31, 2019. Furthermore, the Company had an accumulated deficit, a stockholders’ deficit and a working capital deficit of $6,688,609, $561,635 and $782,100, respectively, at March 31, 2019. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management cannot provide assurance that the Company will ultimately achieve profitable operations or become cash flow positive or raise additional debt and/or equity capital. During 2018 and 2019, management took measures to reduce operating expenses. Although the Company has historically raised capital from sales of equity, there is no assurance that it will be able to continue to do so. These unaudited consolidated financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The Company’s consolidated financial statements include the financial statements of its wholly-owned subsidiaries, Applied Nanotech, Inc. and PEN Brands LLC. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates for the three months ended March 31, 2019 and 2018 include estimates for allowance for doubtful accounts on accounts receivable, the estimates for obsolete inventory, the estimates for cooperative advertising liability, the useful life of property and equipment, assumptions used in assessing impairment of long-term assets, estimates of current and deferred income taxes and deferred tax valuation allowances, the fair value of non-cash equity transactions, and the fair value of equity incentives. Fair Value of Financial Instruments and Fair Value Measurements The Company adopted the guidance of Accounting Standards Codification (“ASC”) 820 for fair value measurements which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2-Inputs are quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3-Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable, loans and lines of credit, accounts payable, accrued expenses, and other payables approximate their fair market value based on the short-term maturity of these instruments. The Company analyzes all financial and non-financial instruments with features of both liabilities and equity under the Financial Accounting Standards Board (“FASB”) accounting standard for such instruments. Under this standard, financial and non-financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company accounts for no instruments at fair value using level 3 valuation. ASC 825-10 “Financial Instruments”, allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable, unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. The Company did not elect to apply the fair value option to any outstanding instruments. Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, the Company considers all highly liquid instruments with a maturity of three months or less at the purchase date and money market accounts to be cash equivalents. Accounts Receivable The Company recognizes an allowance for losses on accounts receivable in an amount equal to the estimated probable losses net of recoveries. The allowance is based on an analysis of historical bad debt experience, current receivables aging, and expected future write-offs, as well as an assessment of specific identifiable customer accounts considered at risk or uncollectible. The expense associated with the allowance for doubtful accounts is recognized as general and administrative expense. Inventory Inventory is stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out (FIFO) method. At March 31, 2019 and December 31, 2018, inventory consisted of the following: March 31, 2019 December 31, 2018 Raw materials $ 808,642 $ 823,283 Finished goods 510,154 389,716 1,318,796 1,212,999 Less: reserve for obsolescence (420,853 ) (385,472 ) Inventory, net $ 897,943 $ 827,527 Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over their estimated useful lives, which range from three to ten years. Leasehold improvements are depreciated over the shorter of the useful life or lease term including scheduled renewal terms. Maintenance and repairs are charged to expense as incurred. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in other income or expense in the year of disposition. The Company examines the possibility of decreases in the value of these assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. Impairment of Long-Lived Assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company did not record any impairment charge for the three months ended March 31, 2019 or 2018. Revenue Recognition Pursuant to the guidance of ASC Topic 606 the Company recognizes sales when persuasive evidence of an arrangement exists, delivery has occurred or services have been provided, the purchase price is fixed or determinable and collectability is reasonably assured. Types of revenue: ● Net product sales by our subsidiary PEN Brands LLC. ● Reimbursements under agreements to perform contract services related to new products and product development for government agencies and others by our subsidiary, Applied Nanotech. We do not perform contracts that are contingent upon successful results. Larger projects are sometimes broken down in phases to allow the customer to determine at the end of each phase if they wish to move to the next phase. The agreements with federal government agencies generally provide that, upon completion of a technology development program, the funding agency is granted a royalty-free license to use any technology developed during the course of the program for its own purposes, but not any preexisting technology that we use in connection with the program. We retain all other rights to use, develop, and commercialize the technology. Agreements with nongovernmental entities generally allow the entity the first opportunity to license the technology from us upon completion of the project. ● Product sales and other miscellaneous revenues from our subsidiary, Applied Nanotech such as the sale of conductive inks, graphene foils and thermal management materials. Revenue recognition criteria: ● Net product sales by our subsidiary PEN Brands LLC, are recognized when the product is shipped to the customer and title is transferred. ● Revenue from contract services performed is generally recognized based on what we have a right to invoice. ● Revenue from other product sales is recognized at the time the product shipped. The Company’s subsidiary Applied Nanotech’s primary business is contract services, not the sale of products. Product sales are generally insignificant in number and are generally limited to the sale of conductive inks, graphene foils, thermal management materials, samples, proofs of concepts, prototypes, or other items resulting from its contract services. ● Other miscellaneous revenue is recognized as deemed appropriate given the facts of the situation and is generally not material. Sales Incentives and Consideration Paid to Customers The Company historically accounted for certain promotional costs such as sales incentives and cooperative advertising as a reduction of sales. For the three months ended March 31, 2019 the Company recorded $0 as a reduction of sales related to sales incentives as compared to $21,041 for the prior period. Cost of Sales Cost of sales includes inventory costs, materials and supplies costs, internal labor and related benefits, subcontractor costs, depreciation, overhead and shipping and handling costs incurred. Shipping and Handling Costs Shipping and handling costs incurred relating to the purchase of inventory are included in inventory which is charged to cost of sales as product are sold. Shipping and handling costs incurred for product shipped to customers are included in cost of sales. For the three months ended March 31, 2019 and 2018 shipping and handling costs amounted to $16,521 and $33,325, respectively. Research and Development Research and development costs incurred in the development of the Company’s products and under other Company sponsored research and development projects are expensed as incurred. Costs such as direct labor, direct costs, and other allocated costs incurred to perform research and development service pursuant to government and private research projects are in included in cost of sales. Research and development costs incurred in the development of the Company’s products for the three months ended March 31, 2019 and 2018 were $45 and $8,193, respectively, and are included in operating expenses on the accompanying unaudited consolidated statements of operations. Advertising Costs The Company participates in various advertising programs. All costs related to advertising of the Company’s products are expensed in the period incurred. Advertising costs charged to operations for the three months ended March 31, 2019 and 2018 were $146 and $405, respectively, and are included in selling and marketing on the unaudited consolidated accompanying statements of operations. These costs are included in sales and marketing on the consolidated accompanying statements of operations. These advertising expenses do not include cooperative advertising and sales incentives which have been deducted from sales. Federal and State Income Taxes The Company accounts for income tax using the liability method prescribed by ASC 740, “Income Taxes”. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the year in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. The Company follows the accounting guidance for uncertainty in income taxes using the provisions of ASC 740 “Income Taxes Stock-Based Compensation Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718 which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. Pursuant to ASC Topic 505-50, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the service period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company initially records compensation expense based on the fair value of the award at the reporting date. Loss Per Share of Common Stock ASC 260 “Earnings Per Share”, requires dual presentation of basic and diluted earnings per share (“EPS”) with a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. Basic EPS excludes dilution. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Basic net loss per common share is computed by dividing net loss available to common shareholders by the weighted average number of shares of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. As of March 31, 2019, and December 31, 2018, 37,778 contingently issuable common shares that are issuable based on certain market conditions (see Note 6) are not included in the potential dilutive shares in calculating the diluted EPS. Additionally, potentially dilutive common shares consist of common stock options and warrants (using the treasury stock method). These common stock equivalents may be dilutive in the future . March 31, 2019 December 31, 2018 Stock options 559,573 8,726 Stock warrants 1,109,698 551,559 Restricted stock 37,778 37,778 Warrant Options 550,847 550,847 Total 2,257,905 1.148,910 Additionally, there are an unknown quantity of common stock equivalents that result from a potential conversion of stock appreciation rights (See Note 8). Net loss per share for common stock is as follows: Net (loss) income per common shares outstanding: Three Months Ended Three Months Ended Class A common stock $ (0.01 ) $ (0.01 ) Class B common stock $ - $ (0.01 ) Weighted average shares outstanding: Class A common stock 3,978,173 1,654,852 Class B common stock - 1,426,503 Total weighted average shares outstanding 3,978,173 3,081,355 Segment Reporting The Company uses “the management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Company’s chief operating decision maker is the President of the Company, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. The Company classified the reportable operating segments into (i) the development, manufacture and sale of consumer and institutional products using nanotechnology to deliver unique performance attributes at the surfaces of a wide variety of substrates (the “Product segment”) and (ii) nanotechnology design and development services for our future products and for government and private entities and sales of products developed for third parties (the “Contract services segment”). Recently Issued Accounting Pronouncements On February 25, 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”) to amend the accounting guidance for leases. The accounting applied by a lessor is largely unchanged under ASU 2016-02. However, the standard requires lessees to recognize lease assets and lease liabilities for leases classified as operating leases on the balance sheet. Lessees will recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it will recognize lease expense for such leases generally on a straight-line basis over the lease term. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and early adoption is permitted. The Company is currently assessing the impact of the guidance on its consolidated financial statements and notes to its consolidated financial statements. In July 2017, the FASB issued ASU No. 2017-11, “Earnings Per Share (Topic 260) and Derivatives and Hedging (Topic 815) - Accounting for Certain Financial Instruments with Down Round Features,” (“ASU 2017-11”). Equity-linked instruments, such as warrants and convertible instruments may contain down round features that result in the strike price being reduced on the basis of the pricing of future equity offerings. Under ASU 2017-11, a down round feature will no longer require a freestanding equity-linked instrument (or embedded conversion option) to be classified as a liability that is remeasured at fair value through the income statement (i.e. marked-to-market). However, other features of the equity-linked instrument (or embedded conversion option) must still be evaluated to determine whether liability or equity classification is appropriate. Equity classified instruments are not marked-to-market. For earnings per share (“EPS”) reporting, the ASU requires companies to recognize the effect of the down round feature only when it is triggered by treating it as a dividend and as a reduction of income available to common shareholders in basic EPS. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in any interim period. The Company is currently evaluating the effect that adopting this new accounting guidance will have on its consolidated financial statements. There are no other recently issued accounting standards that apply to us or that are expected to have a material impact on our results of operations, financial condition, or cash flows. Reclassifications Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements.

Bank Loans and Lines of Revolvi

Bank Loans and Lines of Revolving Credit Facility	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Bank Loans and Lines of Revolving Credit Facility	NOTE 3 – BANK LOANS AND LINES OF REVOLVING CREDIT FACILITY In April 2014, our subsidiary, PEN Brands LLC entered into a $1,500,000 revolving credit line agreement (the “Revolving Note”) with Mackinac Commercial Credit, LLC (the “Lender”) with draws limited to a borrowing base as defined in the Revolving Note. The unpaid principal balance of this Revolving Note is payable on demand, is secured by all of PEN Brands LLC’s assets, and bears interest computed at a rate of interest (the “Effective Rate”) which is equal to 7.0% above the LIBOR Rate, as defined, payable monthly. PEN Brands LLC will pay to Lender a late charge of 5.0% of any monthly payment not received by Lender within 10 calendar days after its due date. The Company may, at any time or from time to time upon three business days’ written notice to Lender, prepay the Note in whole provided that if (i) Borrower prepays the Revolving Note in full and terminates the Revolving Note, or (ii) Lender terminates the Revolving Note after default, then Borrower will pay a termination premium equal to 2.0% of the maximum loan amount. On May 1, 2015, PEN Brands LLC and the Lender entered into an amendment to the Loan and Security Agreement extending the outside maturity date to April 4, 2016 and permitting advances against an expanded borrowing base. The borrowing base was increased by $450,000 through October 31, 2015, with this amount reducing by $7,500 monthly thereafter. In addition, PEN Inc., the parent company, guaranteed PEN Brands LLC’s obligations to the Lender. On April 4, 2016, the maturity date under the Loan & Security Agreement between PEN Brands LLC and the Lender was automatically extended for a one-year renewal term. Without the Lender’s consent, so long as the obligation remains outstanding, in addition to other covenants as defined in the Revolving Note, PEN Brands LLC shall not a) merge or consolidate with any other company, except for the combination that closed in August 2014 and shall not suffer a change of control; b) make any capital expenditures, as defined, materially affecting the business; c) declare or pay cash dividends upon any of its stock, or distribute any of its property, make any loans, make investments, redeem, retire or acquire any of its stock, d) become liable for the indebtedness of anyone else, as defined, and e) incur indebtedness, other than trade payables. On April 3, 2017, PEN Brands LLC and the Lender executed a second amendment to the Revolving Note that extended the maturity date to April 4, 2018, with a one-year renewal option. The second amendment also changed the interest rate to 3.0% above the Prime Rate, as reported in the Wall Street Journal. Under a subsequent amendment, the maturity date was changed to July 3, 2018. On October 17, 2017, pursuant to the terms of the Revolving Note, the gross proceeds of $85,000 in connection with the Asset Purchase agreement were applied to decrease the borrowing base of the Revolving Note. In connection with the sale of fixed assets, the Company amended the Revolving Note to establish a cash collateral account to be no less than $85,000. Pursuant to this amendment, the Company entered into a loan agreement with two Company directors in the aggregate principal amount of $85,000 in order to fund the cash collateral provision pursuant to the amended loan agreement. The loan bears no interest and is due when cash flow permits, or if earlier, upon the payment or refinancing of the loan from the Lender to PEN Brands. On March 30, 2018, PEN Brands and the lender entered into the fourth amendment that permits the borrower to request up to three advances of not more than $200,000 each supported by certain qualifying purchase orders. Each purchase order advance to be repaid in not less than 30 days. No subsequent request can be made until any prior purchase order advance has been repaid. Two of the Company’s officers and directors have personally guaranteed repayment of purchase order advances. The fourth amendment also changes the maturity date for the loan to July 3, 2018. That date becomes the date for an automatic one-year renewal unless either the lender or the borrower gives notice of non-renewal. Other terms and conditions of the agreement remain the same. On August 8, 2018, PEN Brands and the lender entered into the fifth amendment with an effective date of July 3, 2018. The fifth amendment renewed the agreement through July 3, 2019 and provides for an automatic one-year renewal at that time unless it is terminated by either party 60 days in advance. The fifth amendment also limits the amounts that PEN Brands can advance to its parent, and provides that advances based on eligible inventory will reduce monthly by $7,500 per month starting November 1, 2018. On January 31, 2019, PEN Brands paid $172,101 to the lender. This payment, and the application of $85,000 in cash collateral held by the lender paid in full the outstanding principal balance, accrued interest and fees due to the lender. The parties also terminated the revolving credit line agreement and note originally executed in April 2014 that was renewed in August 2018.

Notes Payable

Notes Payable	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Notes Payable	NOTE 4 – NOTES PAYABLE On February 10, 2015, Nanofilm entered into a promissory note (the “Equipment Note”) with KeyBank, N.A. (the “Bank”) to borrow up to $373,000. Nanofilm may obtain one or more advances not to exceed $373,000. The unpaid principal balance of this Equipment Note is payable in 60 equal monthly installments payments of principal and interest through June 10, 2020. The Equipment Note is secured by certain equipment, as defined in the Equipment Note, and bears interest computed at a rate of interest of 4.35% per annum based on a year of 360 days. At December 31, 2018, the principal amount due under the Equipment Note amounted to $179,399. As of March 31, 2019, $68,182 and $99,174, represent the current and non-current portion due under this note. In June and November 2015, in connection with a severance package offered to four employees, the Company entered into four promissory note agreements with the four employees which obligate the Company to pay these employees accrued and unpaid deferred salary in an aggregate amount of $51,808. The principal amounts due under these notes shall bear interest at the minimum rate of interest applicable under the internal revenue code (approximately 3.0% at December 31, 2018). All principal and interest payable under three of these notes aggregating $40,565 are due in 2025 and all principal and interest payable under one of these notes amounting to $15,578 are due in 2020. Accordingly, $51,808 is included in non-current notes payable. On May 31, 2016, in connection with a restatement of our agreement with a former research partner, we delivered a promissory note to repay amounts previously advanced to us and accrued. The initial principal amount was $51,239 bearing interest at 5% per annum. Installment payments include both principal and interest. After an initial payment of $2,000, the note requires payments of $1,000 for eleven months, payments of $2,000 for the following 12 months and monthly payments of $3,000 thereafter until paid in full. The principal balance due on December 31, 2018 was $28,351, all classified as a current liability. At March 31, 2018 the principal balance due was $22,682.05 all classified as a current liability. January 2017, the Company issued a promissory note in the principal amount of $17,425 to a departing employee representing the amount of his accrued and unpaid salary. The note does not bear interest and is due in January 2027, and is included in non-current notes payable. Future principal payments of notes payable are as follows: Year As of As of 2019 74,381 73,562 2020 74,914 74,913 2021 - 2022 - Thereafter 54,882 54,882 Total $ 204,177 $ 203,357

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2019
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 5 – RELATED PARTY TRANSACTIONS Advances from related parties of $159,887 from certain Company directors and executives and accrued payroll of $16,000 due to certain executives have been included within the consolidated balance sheet as of December 31, 2018. The advances are non-interest bearing and are due on demand.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Stockholders' Equity	NOTE 6 - STOCKHOLDERS’ EQUITY Description of Preferred and Common Stock On December 11, 2015, the Board of Directors of the Company approved a reverse stock split of the issued and outstanding shares of the Company’s common stock at the ratio of 1-for-180 (the “Reverse Stock Split”) and authorized an amendment of the Company’s Amended and Restated Certificate of Incorporation, as amended, to effect the Reverse Stock Split, to reduce the number of authorized shares of common stock, and to set a par value of $0.0001 per share after the Reverse Stock Split. On January 26, 2016, each one hundred eighty (180) shares of the Company’s (i) Class A Common Stock (“Class A common stock”), (iii) Class B Common Stock and (iii) Class Z Common Stock, then issued and outstanding were automatically combined into one (1) validly issued, fully paid and non-assessable share of Class A Common Stock, Class B Common Stock and Class Z Common Stock, respectively, without any further action by the Company or the holder. Additionally, the authorized number of shares of common stock were reduced to 10,000,000 comprised of 7,200,000 shares of Class A Common Stock, 2,500,000 shares of Class B Common Stock (“Class B common stock”), and 300,000 shares of Class Z Common Stock (“Class Z common stock”). The par value of each class of common stock remained the same at $0.0001 per common share. All share and per share data in the accompanying unaudited consolidated financial statements have been retroactively restated to reflect the effect of the Reverse Stock Split and authorized shares. The Company is also authorized to issue 20,000,000 shares of Preferred Stock, par value $0.0001 per share (“preferred stock”). Preferred Stock The preferred stock may be issued in one or more series. The Company’s board of directors are authorized to issue the shares of preferred stock in such series and to fix from time to time before issuance thereof the number of shares to be included in any such series and the designation, powers, preferences and relative, participating, optional or other rights, and the qualifications, limitations or restrictions thereof, of such series. Common Stock – General The rights of each share of Class A common stock, each share of Class B common stock and each share of Class Z common stock are the same with respect to dividends, distributions and rights upon liquidation. Class A Common Stock Holders of the Class A common stock are entitled to one vote per share in the election of directors and other matters submitted to a vote of the stockholders. Class B Common Stock Conversion Rights Voting Rights Class Z Common Stock Conversion Rights Voting Rights Other Rights Issuances of Common Stock Sales of Common Stock and Derivative Equity Securities On January 31, 2019, we sold an additional 325,581 shares of Class A common stock in a private placement to PEN Comeback at a per share price of $0.40 for aggregate proceeds of $130,232. At the same time the investor bought warrants to purchase up to 325,581 additional shares at a warrant exercise price of $1.50. The right to purchase warrant shares expires on the earlier of (1) 45 days after the day that PEN shares have been trading at or above 120% of the exercise price for a period of 90 days, or (2) four years from date of issue. Aggregate proceeds from the sales of the warrants were $9,767. On March 22, 2019, we sold 232,558 shares of Class A common stock in a private placement to PEN Comeback at a per share price of $0.40 for aggregate proceeds of $93,023. At the same time the investor bought warrants to purchase up to 232,558 additional shares at a warrant exercise price of $1.50. The right to purchase warrant shares expires on the earlier of (1) 45 days after the day that PEN shares have been trading at or above 120% of the exercise price for a period of 90 days, or (2) four years from date of issue. Aggregate proceeds from the sales of the warrants were $6,977. Stock Options Stock options outstanding are to purchase Class A common stock. Stock options outstanding at March 31, 2019 remain at 559,573, unchanged from December 31, 2018. No options were exercised, expired or issued during the period. Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding December 31, 2018 559,573 $ Exercised - Expired - Outstanding March 31, 2019 559,573 $ $ - Exercisable March 31, 2019 559,573 $ $ - Warrants As of March 31, 2019, there were outstanding and exercisable warrants to purchase (1) 712 shares of common stock with a weighted average exercise price of $2.81 per share and a weighted average remaining contractual term of 31 months, and (2) 1,108,986 shares of Class A common stock at a weighted average exercise price of 1.50 per share with a weighted average remaining contractual term of 25 months. As of March 31, 2019, there were outstanding 550,847 warrant options exercisable only if the related options were also exercisable. As of March 31, 2019, there was no intrinsic value for the warrants or the warrant options. Contingently Issuable Class A Common Shares On August 27, 2014, the Company entered into a Restricted Stock Agreement with Dr. Zvi Yaniv, the former Chief Operating Officer and President, of Applied Nanotech, and a current employee of the Company granting Dr. Yaniv 37,778 shares of Class A common stock, subject to forfeiture. All these shares become vested and not subject to forfeiture on the earlier of a change of control of the Company, Dr. Yaniv’s death, or if more than 180 days after closing, the average trading price of the shares during a measurement period of ten consecutive trading days reaches certain price thresholds. At an $18.00 price, 5,554 shares vest, with additional tranches of 5,556 shares vesting if the price reaches $27.00, $36.00, $45.00 and $54.00. The last 10,000 shares vest at a $63.00 price threshold. Any shares that have not vested five years after the effective date will be forfeited. The Company also entered into a Piggyback Registration Rights Agreement that will allow Dr. Yaniv, subject to other customary terms and conditions, to register shares that are no longer subject to forfeiture if the Company is registering its shares. Pursuant to ASC 718-10 and related subsections, these shares were valued on the date of grant of August 27, 2014 at $13.12 per share for a total value of $495,720. The Company estimates the fair value of the awards with market conditions using a Binomial simulation, which utilizes several assumptions including the risk-free interest rate, the volatility of the Company’s stock and the exercise behavior of award recipients. The grant-date fair value of $495,720 of the awards will be recognized over the requisite service period of 3 years, which represents the derived service period for the stock grant as determined by the Binomial simulation method. For the three months ended March 31, 2019 and 2018, in connection with the amortization of the fair value of this stock grant, the Company recorded stock-based compensation of $0 and $0, respectively. At March 31, 2019, there is no unamortized stock-based compensation expense to be recognized in future periods. See Note 11 – Subsequent Events for information about the forfeiture of these shares. Conversion of Class Z Common Stock On May 23, 2017, Zeiss converted 262,631 shares of Class Z common stock into 262,631 shares of Class A common stock. Immediately thereafter, Zeiss sold 262,631 shares of Class A common stock to certain buyers which included the Company’s Chief Executive Officer for an aggregate of $100,000. In addition, pursuant to the certificate of incorporation, Zeiss’ Board representation automatically terminated and, as a result, Zeiss ceased to be a related party as of May 23, 2017. Conversion of Class B Common Stock On or about October 15, 2018 as part of the terms for the stock sale to PEN Comeback, Scott and Jeanne Rickert and their family partnership exercised the right to convert Class B shares into Class A shares on a 1:1 basis resulting in the issuance of 1,436,052 shares of Class A common stock. 2015 Equity Incentive Plan On November 30, 2015, the Board of Directors authorized the 2015 Equity Incentive Plan (the “Plan”), which reserved 111,111 shares of common stock. If any share of common stock that has been granted pursuant to a stock option ceases to be subject to a stock option, or if any forfeiture or termination affects shares of common stock that are the subject to any other stock-based award, the shares are again available for future grants and awards under the Plan. The Plan’s purpose is to enable the Company to offer its employees, officers, directors and consultants an opportunity to acquire a proprietary interest in the Company for their contributions. As of December 31, 2018, 17,284 Class A common shares had been were issued under the Plan. As of December 31, 2018, 93,827 shares are available for future issuance.

Concentrations

Concentrations	3 Months Ended
	Mar. 31, 2019
Risks and Uncertainties [Abstract]
Concentrations	NOTE 7 – CONCENTRATIONS Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade accounts receivable and cash deposits and investments in cash equivalent instruments. Customer Concentrations Customer concentrations for the three months ended March 31, 2019 and 2018 are as follows: Revenues For the Three Months Ended 2019 2018 Customer A 11 % 30 % Customer B * % 15 % Customer C 19 * Customer D 13 * Total 43 % 45 % Accounts Receivable As of As of Customer A * % 38 % Customer B * % 23* % Customer C 12 * % Total 12 % 61 % *Less than 10% A reduction in sales from or loss of such customers would have a material adverse effect on our consolidated results of operations and financial condition. Geographic Concentrations of Sales For the three months ended March 31, 2019 and 2018, total sales in the United States represent approximately 90% and 96% of total consolidated revenues, respectively. No other geographical area accounting for more than 10% of total sales during the nine months ended March 31, 2019 and 2018. Vendor Concentrations Vendor concentrations for inventory purchases for the three months ended March 31, 2019 and 2018 are: For the Three Months Ended March 31, 2019 2018 Vendor A 52 % 23 % Vendor B * % 19 % Vendor C * % 15 % Vendor D * % 10 % Vendor E 16 % * % Total 68 % 67 % *Less than 10%

Stock Appreciation Plan

Stock Appreciation Plan	3 Months Ended
	Mar. 31, 2019
Share-based Payment Arrangement [Abstract]
Stock Appreciation Plan	NOTE 8 – STOCK APPRECIATION PLAN From June 1, 1988, until December 31, 1997, when the plan was terminated, PEN Brands LLC had in place a Stock Appreciation Rights Plan A (the “Plan”), intended to provide employees, directors, members of a technical advisory board and certain independent contractors selected by the Board with equity-like participation in the growth of PEN Brands LLC. The maximum number of stock appreciation rights that could be granted by the Board was 1,000,000. There were 235,782 fully vested stock appreciation rights (“SARS”) outstanding under the terms of the Plan at March 31, 2019 and December 31, 2018. The SARS unit value is based on the book value of the Company as of the last fiscal year end multiplied by a SARS multiplier stipulated in the SARS plan. However, in the event of an initial public offering (“IPO”) of PEN Brands, the SARS are redeemable based on a value equal to offering price of the stock in an IPO times the total outstanding shares of the Company just subsequent to the completion of the IPO, multiplied by the SARS multiplier. The SARS multiplier is to be adjusted, as the Board determines, to reflect changes in the capitalization of PEN Brands LLC. Generally, the SARS are redeemable in cash, at their then fair value as computed pursuant to the Plan, in the event of termination of employment or business relationship, death, permanent and total disability, or sale of PEN Brands (as defined). Upon an IPO, SARS are to be redeemed by applying 70% of the redemption value to purchase common shares, with the remaining 30% being distributed in cash to the participant. The business combination completed in August 2014 did not qualify as an IPO under the Plan; however, a future underwritten registered offering may qualify. The accrued redemption value associated with the stock appreciation rights amounted to $54,290, at March 31, 2019 and December 31, 2018. If the Company completes an IPO, the value of SARS calculated based on the IPO formula may cause a material increase in the value of the liability.

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Segment Reporting	NOTE 9 – SEGMENT REPORTING The Company’s principal operating segments coincide with the types of products to be sold. The products from which revenues are derived are consistent with the reporting structure of the Company’s internal organization. The Company’s two reportable segments for the three months ended March 31, 2019 and 2018 were the Product segment and ii) the Contract services segment (formerly the research and development segment). The Company’s chief operating decision-maker has been identified as the Chairman and CEO, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Segment information is presented based upon the Company’s management organization structure as of March 31, 2019 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to the reportable segments disclosed. There are no inter-segment revenue transactions and, therefore, revenues are only to external customers. As the Company primarily generates its revenues from customers in the United States, no geographical segments are presented. Segment operating profit is determined based upon internal performance measures used by the chief operating decision-maker. The Company derives the segment results from its internal management reporting system. The accounting policies the Company uses to derive reportable segment results are the same as those used for external reporting purposes. Management measures the performance of each reportable segment based upon several metrics, including net revenues, gross profit and operating loss. Management uses these results to evaluate the performance of, and to assign resources to, each of the reportable segments. The Company manages certain operating expenses separately at the corporate level and does not allocate such expenses to the segments. Segment income from operations excludes interest income/expense and other income or expenses and income taxes according to how a particular reportable segment’s management is measured. Management does not consider impairment charges, and unallocated costs in measuring the performance of the reportable segments. Segment information available with respect to these reportable business segments for the three months ended March 31, 2019 and 2018 was as follows: Three Months Ended 2019 2018 Revenues: Product segment $ 441,488 $ 1,142,575 Contract services segment 316,373 300,950 Total segment and consolidated revenues $ 757,861 $ 1,443,525 Cost of revenues: Products $ 182,956 $ 804,687 Contract services segment 393,256 301,572 Total segment and consolidated cost of revenues $ 576,212 $ 1,106,259 Gross profit (loss): Product segment $ 258,532 $ 337,888 Contract services segment (76,883 ) (622 ) Total segment and consolidated gross profit $ 181,649 $ 337,266 Gross margin: Product segment 58.6 % 29.6 % Contract services segment -24.3 % -0.2 % Total gross margin 24.0 % 23.4 % Segment operating expenses: Product segment 155,190 321,154 Contract services segment 65,031 39,399 Total segment operating expenses 220,221 360,552 Income (loss) from operations: Product segment $ 103,342 $ 16,734 Contract services segment (141,914 ) (40,021 ) Total segment income (loss) (38,571 ) (23,286 ) Unallocated costs (56,991 ) (173,108 ) Total consolidated loss from operations $ (95,562 ) $ (196,394 ) Depreciation and amortization: Product segment $ 12,444 $ 16,272 Contract services segment - - Total segment depreciation and amortization 12,444 16,272 Unallocated depreciation - - Total consolidated depreciation and amortization $ 12,444 $ 16,272 Capital additions: Product segment $ - $ - Contract services segment - - Total segment capital additions - - Unallocated capital additions - - Total consolidated capital additions $ - $ - March 31, 2019 March 31, 2018 Segment total assets: Product segment $ 1,429,764 $ 2,621,031 Contract services segment 192,507 202,264 Corporate 12,541 25,975 Total consolidated total assets $ 1,634,812 $ 2,849,270

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 10 - COMMITMENTS AND CONTINGENCIES Stock Appreciation Rights If the Company completes an IPO, the value of stock appreciation rights calculated based on the IPO formula may cause a material increase in the value of the liability (See Note 8). Litigation The Company may be, from time to time, subject to various administrative, regulatory, and other legal proceedings arising in the ordinary course of business. Our policy is to accrue costs for contingent liabilities, including legal proceedings or unasserted claims that may result in legal proceedings, when a liability is probable and the amount can be reasonably estimated.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	NOTE 11 - SUBSEQUENT EVENTS Sales of Common Stock and Derivate Equity Securities On May 10, 2019, we sold 523,266 shares of Class A common stock in a private placement to PEN Comeback at a per share price of $0.40 for aggregate proceeds of $209,302. At the same time the investor bought warrants to purchase up to 523,266 additional shares at a warrant exercise price of $1.50. The right to purchase warrant shares expires on the earlier of (1) 45 days after the day that PEN shares have been trading at or above 120% of the exercise price for a period of 90 days, or (2) four years from date of issue. Aggregate proceeds from the sales of the warrants were $15,698. On June 27,2019, we sold 441,860 shares of Class A common stock in a private placement to PEN Comeback at a per share price of $0.40 for aggregate proceeds of $176,744. At the same time the investor bought warrants to purchase up to 441,860 additional shares at a warrant exercise price of $1.50. The right to purchase warrant shares expires on the earlier of (1) 45 days after the day that PEN shares have been trading at or above 120% of the exercise price for a period of 90 days, or (2) four years from date of issue. Aggregate proceeds from the sales of the warrants were $13,256. August 27, 2019 was the fifth anniversary of the date of issue for the restricted stock issued to Dr. Yaniv. Because none of the vesting conditions were met, the 37,778 shares of Class A common stock contingently issued were forfeited and are no longer outstanding. On September 6, 2019, we sold 216,912 shares of Class A common stock in a private placement to PEN Comeback 2, LLC at a per share price of $0.65 for aggregate proceeds of $140,993. At the same time the investor bought 216,906 warrants to purchase up to 216,906 additional shares at a warrant exercise price of $1.50. The right to purchase warrant shares expires four years from date of issue. Aggregate proceeds from the sales of the warrants were $6,507. On October 9, 2019, we sold an additional 88,235 shares of Class A common stock in a private placement to PEN Comeback 2, LLC at a per share price of $0.65 for aggregate proceeds of $57,353. At the same time the investor bought 88,235 warrants to purchase up to 88,235 additional shares at a warrant exercise price of $1.50. The right to purchase warrant shares expires four years from date of issue. Aggregate proceeds from the sales of the warrants were $2,647. On October 31, 2019, we sold an additional 165,441 shares of Class A common stock in a private placement to PEN Comeback 2, LLC and 15,384 shares of Class A common stock to Rickert Family Partnership, all at a per share price of $0.65 for aggregate proceeds of $117,537. At the same time PEN Comeback 2 bought 165,441 warrants to purchase up to 165,441 additional shares and the partnership bought 13 warrants to purchase up to 13 additional shares, all at a warrant exercise price of $1.50. The right to purchase warrant shares expires four years from date of issue. Aggregate proceeds from the sales of the warrants were $4,963. On December 10, 2019, we sold an additional 272,059 shares of Class A common stock in a private placement to PEN Comeback 2, LLC at a per share price of $0.65 for aggregate proceeds of $176,838. At the same time the investor bought 272,055 warrants to purchase up to 272,055 additional shares at a warrant exercise price of $1.50. The right to purchase warrant shares expires four years from date of issue. Aggregate proceeds from the sales of the warrants were $0.03 per warrant for an aggregate of $8,162. Stock for Services On April 3, 2019, we issued an aggregate of 18,180 shares of our Class A common stock to five of our directors as compensation to them for service on our Board. The shares were valued at $0.55 per share based on the quoted price of the stock for a total value of $10,000. On that date the Board also granted to our President an option to purchase up to 550,000 shares of our Class A common stock at a price of $0.55 per share. Under that option, the right to purchase 50,000 shares vested on the date of grant, the right to purchase up to 75,000 shares will vest on December 31, 2019, the right to purchase 100,000 shares will vest on June 30, 2020, and the right to purchase up to 125,000 shares will vest on December 31, 2020 and two tranches entitling him to purchase 100,000 shares will vest if he reaches the cap for cash payments under the bonus program in 2019 or 2020. All rights to purchase have a term of 5 years from date of vesting. On April 24, 2019, we issued an aggregate of 19,998 shares of Class A common stock to our directors as compensation to them for service on our Board. These shares were valued on that date at $0.60 per share based on the quoted price of the stock for a total value of $12,000. On July 24, 2019, we issued an aggregate of 18,750 shares of Class A common stock to our directors as compensation to them for service on our Board. These shares were valued on that date at $0.64 per share based on the quoted price of the stock for a total value of $12,000. On October 23, 2019, we issued an aggregate of 23,331 shares of Class A common stock to our directors as compensation to them for service on our Board and its committees. These shares were valued on that date at $0.60 per share based on the quoted price of the stock for a total value of $14,000.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The Company’s consolidated financial statements include the financial statements of its wholly-owned subsidiaries, Applied Nanotech, Inc. and PEN Brands LLC. All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates for the three months ended March 31, 2019 and 2018 include estimates for allowance for doubtful accounts on accounts receivable, the estimates for obsolete inventory, the estimates for cooperative advertising liability, the useful life of property and equipment, assumptions used in assessing impairment of long-term assets, estimates of current and deferred income taxes and deferred tax valuation allowances, the fair value of non-cash equity transactions, and the fair value of equity incentives.
Fair Value of Financial Instruments and Fair Value Measurements	Fair Value of Financial Instruments and Fair Value Measurements The Company adopted the guidance of Accounting Standards Codification (“ASC”) 820 for fair value measurements which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2-Inputs are quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3-Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable, loans and lines of credit, accounts payable, accrued expenses, and other payables approximate their fair market value based on the short-term maturity of these instruments. The Company analyzes all financial and non-financial instruments with features of both liabilities and equity under the Financial Accounting Standards Board (“FASB”) accounting standard for such instruments. Under this standard, financial and non-financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company accounts for no instruments at fair value using level 3 valuation. ASC 825-10 “Financial Instruments”, allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable, unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. The Company did not elect to apply the fair value option to any outstanding instruments.
Cash and Cash Equivalents	Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, the Company considers all highly liquid instruments with a maturity of three months or less at the purchase date and money market accounts to be cash equivalents.
Accounts Receivable	Accounts Receivable The Company recognizes an allowance for losses on accounts receivable in an amount equal to the estimated probable losses net of recoveries. The allowance is based on an analysis of historical bad debt experience, current receivables aging, and expected future write-offs, as well as an assessment of specific identifiable customer accounts considered at risk or uncollectible. The expense associated with the allowance for doubtful accounts is recognized as general and administrative expense.
Inventory	Inventory Inventory is stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out (FIFO) method. At March 31, 2019 and December 31, 2018, inventory consisted of the following: March 31, 2019 December 31, 2018 Raw materials $ 808,642 $ 823,283 Finished goods 510,154 389,716 1,318,796 1,212,999 Less: reserve for obsolescence (420,853 ) (385,472 ) Inventory, net $ 897,943 $ 827,527
Property and Equipment	Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over their estimated useful lives, which range from three to ten years. Leasehold improvements are depreciated over the shorter of the useful life or lease term including scheduled renewal terms. Maintenance and repairs are charged to expense as incurred. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in other income or expense in the year of disposition. The Company examines the possibility of decreases in the value of these assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company did not record any impairment charge for the three months ended March 31, 2019 or 2018.
Revenue Recognition	Revenue Recognition Pursuant to the guidance of ASC Topic 606 the Company recognizes sales when persuasive evidence of an arrangement exists, delivery has occurred or services have been provided, the purchase price is fixed or determinable and collectability is reasonably assured. Types of revenue: ● Net product sales by our subsidiary PEN Brands LLC. ● Reimbursements under agreements to perform contract services related to new products and product development for government agencies and others by our subsidiary, Applied Nanotech. We do not perform contracts that are contingent upon successful results. Larger projects are sometimes broken down in phases to allow the customer to determine at the end of each phase if they wish to move to the next phase. The agreements with federal government agencies generally provide that, upon completion of a technology development program, the funding agency is granted a royalty-free license to use any technology developed during the course of the program for its own purposes, but not any preexisting technology that we use in connection with the program. We retain all other rights to use, develop, and commercialize the technology. Agreements with nongovernmental entities generally allow the entity the first opportunity to license the technology from us upon completion of the project. ● Product sales and other miscellaneous revenues from our subsidiary, Applied Nanotech such as the sale of conductive inks, graphene foils and thermal management materials. Revenue recognition criteria: ● Net product sales by our subsidiary PEN Brands LLC, are recognized when the product is shipped to the customer and title is transferred. ● Revenue from contract services performed is generally recognized based on what we have a right to invoice. ● Revenue from other product sales is recognized at the time the product shipped. The Company’s subsidiary Applied Nanotech’s primary business is contract services, not the sale of products. Product sales are generally insignificant in number and are generally limited to the sale of conductive inks, graphene foils, thermal management materials, samples, proofs of concepts, prototypes, or other items resulting from its contract services. ● Other miscellaneous revenue is recognized as deemed appropriate given the facts of the situation and is generally not material.
Sales Incentives and Consideration Paid to Customers	Sales Incentives and Consideration Paid to Customers The Company historically accounted for certain promotional costs such as sales incentives and cooperative advertising as a reduction of sales. For the three months ended March 31, 2019 the Company recorded $0 as a reduction of sales related to sales incentives as compared to $21,041 for the prior period.
Cost of Sales	Cost of Sales Cost of sales includes inventory costs, materials and supplies costs, internal labor and related benefits, subcontractor costs, depreciation, overhead and shipping and handling costs incurred.
Shipping and Handling Costs	Shipping and Handling Costs Shipping and handling costs incurred relating to the purchase of inventory are included in inventory which is charged to cost of sales as product are sold. Shipping and handling costs incurred for product shipped to customers are included in cost of sales. For the three months ended March 31, 2019 and 2018 shipping and handling costs amounted to $16,521 and $33,325, respectively.
Research and Development	Research and Development Research and development costs incurred in the development of the Company’s products and under other Company sponsored research and development projects are expensed as incurred. Costs such as direct labor, direct costs, and other allocated costs incurred to perform research and development service pursuant to government and private research projects are in included in cost of sales. Research and development costs incurred in the development of the Company’s products for the three months ended March 31, 2019 and 2018 were $45 and $8,193, respectively, and are included in operating expenses on the accompanying unaudited consolidated statements of operations.
Advertising Costs	Advertising Costs The Company participates in various advertising programs. All costs related to advertising of the Company’s products are expensed in the period incurred. Advertising costs charged to operations for the three months ended March 31, 2019 and 2018 were $146 and $405, respectively, and are included in selling and marketing on the unaudited consolidated accompanying statements of operations. These costs are included in sales and marketing on the consolidated accompanying statements of operations. These advertising expenses do not include cooperative advertising and sales incentives which have been deducted from sales.
Federal and State Income Taxes	Federal and State Income Taxes The Company accounts for income tax using the liability method prescribed by ASC 740, “Income Taxes”. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the year in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. The Company follows the accounting guidance for uncertainty in income taxes using the provisions of ASC 740 “Income Taxes
Stock-based Compensation	Stock-Based Compensation Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718 which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. Pursuant to ASC Topic 505-50, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the service period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company initially records compensation expense based on the fair value of the award at the reporting date.
Loss Per Share of Common Stock	Loss Per Share of Common Stock ASC 260 “Earnings Per Share”, requires dual presentation of basic and diluted earnings per share (“EPS”) with a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. Basic EPS excludes dilution. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Basic net loss per common share is computed by dividing net loss available to common shareholders by the weighted average number of shares of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. As of March 31, 2019, and December 31, 2018, 37,778 contingently issuable common shares that are issuable based on certain market conditions (see Note 6) are not included in the potential dilutive shares in calculating the diluted EPS. Additionally, potentially dilutive common shares consist of common stock options and warrants (using the treasury stock method). These common stock equivalents may be dilutive in the future . March 31, 2019 December 31, 2018 Stock options 559,573 8,726 Stock warrants 1,109,698 551,559 Restricted stock 37,778 37,778 Warrant Options 550,847 550,847 Total 2,257,905 1.148,910 Additionally, there are an unknown quantity of common stock equivalents that result from a potential conversion of stock appreciation rights (See Note 8). Net loss per share for common stock is as follows: Net (loss) income per common shares outstanding: Three Months Ended Three Months Ended Class A common stock $ (0.01 ) $ (0.01 ) Class B common stock $ - $ (0.01 ) Weighted average shares outstanding: Class A common stock 3,978,173 1,654,852 Class B common stock - 1,426,503 Total weighted average shares outstanding 3,978,173 3,081,355
Segment Reporting	Segment Reporting The Company uses “the management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Company’s chief operating decision maker is the President of the Company, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. The Company classified the reportable operating segments into (i) the development, manufacture and sale of consumer and institutional products using nanotechnology to deliver unique performance attributes at the surfaces of a wide variety of substrates (the “Product segment”) and (ii) nanotechnology design and development services for our future products and for government and private entities and sales of products developed for third parties (the “Contract services segment”).
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements On February 25, 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”) to amend the accounting guidance for leases. The accounting applied by a lessor is largely unchanged under ASU 2016-02. However, the standard requires lessees to recognize lease assets and lease liabilities for leases classified as operating leases on the balance sheet. Lessees will recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it will recognize lease expense for such leases generally on a straight-line basis over the lease term. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and early adoption is permitted. The Company is currently assessing the impact of the guidance on its consolidated financial statements and notes to its consolidated financial statements. In July 2017, the FASB issued ASU No. 2017-11, “Earnings Per Share (Topic 260) and Derivatives and Hedging (Topic 815) - Accounting for Certain Financial Instruments with Down Round Features,” (“ASU 2017-11”). Equity-linked instruments, such as warrants and convertible instruments may contain down round features that result in the strike price being reduced on the basis of the pricing of future equity offerings. Under ASU 2017-11, a down round feature will no longer require a freestanding equity-linked instrument (or embedded conversion option) to be classified as a liability that is remeasured at fair value through the income statement (i.e. marked-to-market). However, other features of the equity-linked instrument (or embedded conversion option) must still be evaluated to determine whether liability or equity classification is appropriate. Equity classified instruments are not marked-to-market. For earnings per share (“EPS”) reporting, the ASU requires companies to recognize the effect of the down round feature only when it is triggered by treating it as a dividend and as a reduction of income available to common shareholders in basic EPS. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in any interim period. The Company is currently evaluating the effect that adopting this new accounting guidance will have on its consolidated financial statements. There are no other recently issued accounting standards that apply to us or that are expected to have a material impact on our results of operations, financial condition, or cash flows.
Reclassifications	Reclassifications Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Schedule of Inventory	At March 31, 2019 and December 31, 2018, inventory consisted of the following: March 31, 2019 December 31, 2018 Raw materials $ 808,642 $ 823,283 Finished goods 510,154 389,716 1,318,796 1,212,999 Less: reserve for obsolescence (420,853 ) (385,472 ) Inventory, net $ 897,943 $ 827,527
Schedule of Anti-dilutive Per Share Information	Potentially dilutive common shares were excluded from the computation of diluted shares outstanding as they would have an anti-dilutive impact on the Company’s net losses and consisted of the following: March 31, 2019 December 31, 2018 Stock options 559,573 8,726 Stock warrants 1,109,698 551,559 Restricted stock 37,778 37,778 Warrant Options 550,847 550,847 Total 2,257,905 1.148,910
Schedule of Reconciliation of Basic and Diluted Net Income Loss	Net loss per share for common stock is as follows: Net (loss) income per common shares outstanding: Three Months Ended Three Months Ended Class A common stock $ (0.01 ) $ (0.01 ) Class B common stock $ - $ (0.01 ) Weighted average shares outstanding: Class A common stock 3,978,173 1,654,852 Class B common stock - 1,426,503 Total weighted average shares outstanding 3,978,173 3,081,355

Notes Payable (Tables)

Notes Payable (Tables)	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Schedule of Future Payments of Notes Payable	Future principal payments of notes payable are as follows: Year As of As of 2019 74,381 73,562 2020 74,915 74,913 2021 - 2022 - Thereafter 54,882 54,882 Total $ 204,178 $ 203,357

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Schedule of Stock Option Plan Activity	Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding December 31, 2018 559,573 $ Exercised - Expired - Outstanding March 31, 2019 559,573 $ $ - Exercisable March 31, 2019 559,573 $ $ -

Concentrations (Tables)

Concentrations (Tables)	3 Months Ended
	Mar. 31, 2019
Schedule of Concentration Risk, Customer	Customer concentrations for the three months ended March 31, 2019 and 2018 are as follows: Revenues For the Three Months Ended 2019 2018 Customer A 11 % 30 % Customer B * % 15 % Customer C 19 * Customer D 13 * Total 43 % 45 % Accounts Receivable As of As of Customer A * % 38 % Customer B * % 23* % Customer C 12 * % Total 12 % 61 % *Less than 10%
Vendor Concentrations [Member]
Schedule of Concentration Risk, Customer	Vendor concentrations for inventory purchases for the three months ended March 31, 2019 and 2018 are: For the Three Months Ended March 31, 2019 2018 Vendor A 52 % 23 % Vendor B * % 19 % Vendor C * % 15 % Vendor D * % 10 % Vendor E 16 % * % Total 68 % 67 % *Less than 10%

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Segment Information Available with Respect to Reportable Business Segments	Segment information available with respect to these reportable business segments for the three months ended March 31, 2019 and 2018 was as follows: Three Months Ended 2019 2018 Revenues: Product segment $ 441,488 $ 1,142,575 Contract services segment 316,373 300,950 Total segment and consolidated revenues $ 757,861 $ 1,443,525 Cost of revenues: Products $ 182,956 $ 804,687 Contract services segment 393,256 301,572 Total segment and consolidated cost of revenues $ 576,212 $ 1,106,259 Gross profit (loss): Product segment $ 258,532 $ 337,888 Contract services segment (76,883 ) (622 ) Total segment and consolidated gross profit $ 181,649 $ 337,266 Gross margin: Product segment 58.6 % 29.6 % Contract services segment -24.3 % -0.2 % Total gross margin 24.0 % 23.4 % Segment operating expenses: Product segment 155,190 321,154 Contract services segment 65,031 39,399 Total segment operating expenses 220,221 360,552 Income (loss) from operations: Product segment $ 103,342 $ 16,734 Contract services segment (141,914 ) (40,021 ) Total segment income (loss) (38,571 ) (23,286 ) Unallocated costs (56,991 ) (173,108 ) Total consolidated loss from operations $ (95,562 ) $ (196,394 ) Depreciation and amortization: Product segment $ 12,444 $ 16,272 Contract services segment - - Total segment depreciation and amortization 12,444 16,272 Unallocated depreciation - - Total consolidated depreciation and amortization $ 12,444 $ 16,272 Capital additions: Product segment $ - $ - Contract services segment - - Total segment capital additions - - Unallocated capital additions - - Total consolidated capital additions $ - $ - March 31, 2019 March 31, 2018 Segment total assets: Product segment $ 1,429,764 $ 2,621,031 Contract services segment 192,507 202,264 Corporate 12,541 25,975 Total consolidated total assets $ 1,634,812 $ 2,849,270

Organization and Basis of Pre_2

Organization and Basis of Presentation (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ (48,239)	$ (20,518)	$ 53,135	$ 687,068
Accumulated deficit	(6,688,609)		(6,640,370)
Stockholders' deficit	(561,635)	$ (1,097,780)	$ (753,396)	$ (1,096,005)
Working capital deficit	$ 782,100

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Impairment of long-lived assets
Sales incentives and cooperative advertising reduction of sales	0	21,041
Cost of goods sold	576,212	1,106,259
Research and development expense	45	8,193
Advertising expense	$ 146	405
Contingently issuable common stock shares	37,778		37,778
Shipping and Handling [Member]
Cost of goods sold	$ 16,521	$ 33,325
Minimum [Member]
Estimated useful lives for property and equipment	3 years
Maximum [Member]
Estimated useful lives for property and equipment		10 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Inventory (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Raw materials	$ 808,642	$ 823,283
Finished goods	510,154	389,716
Inventory, gross	1,318,796	1,212,999
Less: reserve for obsolescence	(420,853)	(385,472)
Inventory, net	$ 897,943	$ 827,527

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Schedule of Anti-dilutive Per Share Information (Details) - shares	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Total	2,257,905	1,148,910
Restricted Stock [Member]
Total	37,778	37,778
Warrant Options [Member]
Total	550,847	550,847
Stock Options [Member]
Total	559,573	8,726
Stock Warrants [Member]
Total	1,109,698	551,559

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Schedule of Reconciliation of Basic and Diluted Net Income Loss (Details) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Total weighted average shares outstanding	3,978,173	3,081,355
Class A Common Stock [Member]
Net (loss) income per common shares outstanding	$ (0.01)	$ (0.01)
Total weighted average shares outstanding	3,978,173	1,654,852
Class B Common Stock [Member]
Net (loss) income per common shares outstanding		$ (0.01)
Total weighted average shares outstanding		1,426,503

Bank Loans and Lines of Revol_2

Bank Loans and Lines of Revolving Credit Facility (Details Narrative) - USD ($)	Jan. 31, 2019	Aug. 08, 2018	Oct. 17, 2017	Apr. 03, 2017	Oct. 31, 2015	May 01, 2015	Apr. 30, 2014	Mar. 31, 2019	Dec. 31, 2018	Mar. 30, 2018
Revolving credit facility								$ (17,477)	$ 330,892
Lender [Member]
Revolving credit facility	$ 172,101
Line of credit balance outstanding	$ 85,000
PEN Brands LLC [Member]
Percentage of effective interest rate				3.00%
Debt maturity date				Apr. 4, 2018
PEN Brands LLC [Member] | Subsequent Amendment [Member]
Debt maturity date				Jul. 3, 2018
Asset Purchase Agreement [Member] | Revolving Note [Member]
Proceeds from debt			$ 85,000
Asset Purchase Agreement [Member] | Revolving Note [Member] | Minimum [Member]
Cash collateral account			85,000
Loan Agreement [Member] | Two Directors [Member]
Principal amount			$ 85,000
Amendment to Loan and Security Agreement [Member] | Maximum [Member]
Borrower to request up to three advances										$ 200,000
Fifth Amendment [Member] | November 1, 2018 [Member]
Monthly reduction in advances based on eligible inventory		$ 7,500
Mackinac Commercial Credit, LLC [Member] | Loan and Security Agreement [Member]
Debt maturity date						Apr. 4, 2016
Increase in borrowing base amount					$ 450,000
Borrowing periodic payment					$ 7,500
Revolving Credit Line Agreement [Member] | Mackinac Commercial Credit, LLC [Member]
Revolving credit facility							$ 1,500,000
Percentage of effective interest rate							7.00%
Percentage of late charge of any monthly payment not received							5.00%
Percentage of termination premium equal to maximum loan amount							2.00%

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)	May 31, 2016	Feb. 10, 2015	Jan. 31, 2017	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Nov. 30, 2015	Jun. 30, 2015
Current portion of notes payable				$ 74,381		$ 73,562
Notes payable, net of current portion				129,797		129,798
Reclassification of accrued salary to notes payable - long-term
Departing Employee [Member]
Proceeds from notes payable			$ 17,425
Debt instruments interest rate			0.00%
Debt maturity year			Due in January 2027
Equipment Note [Member]
Current portion of notes payable				68,182
Notes payable, net of current portion				$ 99,174
Promissory Note [Member] | Former Research Partner [Member]
Debt instruments interest rate	5.00%
Principal amount	$ 51,239
Current portion of notes payable					$ 22,682	28,351
Debt principal and interest payable amount	$ 2,000
Debt instrument, payment terms	Installment payments include both principal and interest. After an initial payment of $2,000, the note requires payments of $1,000 for eleven months, payments of $2,000 for the following 12 months and monthly payments of $3,000 thereafter until paid in full.
Promissory Note [Member] | Former Research Partner [Member] | Eleven Months Payment [Member]
Debt principal and interest payable amount	$ 1,000
Promissory Note [Member] | Former Research Partner [Member] | Twelve Months Payment [Member]
Debt principal and interest payable amount	2,000
Promissory Note [Member] | Former Research Partner [Member] | Installment Thereafter [Member]
Debt principal and interest payable amount	$ 3,000
Nanofilm Ltd [Member] | Equipment Note [Member]
Proceeds from notes payable		$ 373,000
Advances not to exceed		$ 373,000
Debt installments equal monthly payments		Equipment Note is payable in 60 equal monthly installments payments
Debt installments payments ending date		Jun. 10, 2020
Debt instruments interest rate		4.35%
Principal amount						$ 179,399
Four Employees [Member] | June and November 2015 [Member] | Three Promissory Note [Member]
Debt maturity year				2025
Debt principal and interest payable amount				$ 40,565
Four Employees [Member] | Four Promissory Note Agreements [Member]
Accrued and unpaid deferred salary							$ 51,808	$ 51,808
Four Employees [Member] | Four Promissory Note Agreements [Member] | June and November 2015 [Member] | Minimum [Member]
Debt instruments interest rate						3.00%
Four Employees [Member] | One Promissory Note Agreements [Member] | June and November 2015 [Member]
Debt maturity year				2020
Debt principal and interest payable amount				$ 15,578
Reclassification of accrued salary to notes payable - long-term				$ 51,808

Notes Payable - Schedule of Fut

Notes Payable - Schedule of Future Payments of Notes Payable (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Debt Disclosure [Abstract]
2019	$ 74,381	$ 73,562
2020	74,914	74,913
2021
2022
Thereafter	54,882	54,882
Total	$ 204,177	$ 203,357

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Advances from related parties	$ 140,000	$ 140,000
Directors and Executives [Member]
Advances from related parties		159,887
Accrued payroll		$ 16,000

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	Mar. 22, 2019	Jan. 31, 2019	Oct. 15, 2018	May 23, 2017	Dec. 11, 2015	Aug. 27, 2014	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Jan. 26, 2016	Nov. 30, 2015
Reverse stock split					ratio of 1-for-180
Common stock, par value					$ 0.0001
Common stock description							On January 26, 2016, each one hundred eighty (180) shares of the Company's (i) Class A Common Stock ("Class A common stock"), (iii) Class B Common Stock and (iii) Class Z Common Stock, then issued and outstanding were automatically combined into one (1) validly issued, fully paid and non-assessable share of Class A Common Stock, Class B Common Stock and Class Z Common Stock, respectively, without any further action by the Company or the holder.
Excess stock shares authorized										10,000,000
Preferred stock, shares authorized							20,000,000		20,000,000	20,000,000
Preferred stock, par value							$ 0.0001		$ 0.0001	$ 0.0001
Common stock conversion basis description							The rights of each share of Class A common stock, each share of Class B common stock and each share of Class Z common stock are the same with respect to dividends, distributions and rights upon liquidation.
Number of stock shares issued for service, value							$ 50,741
Share based compensation amount							0	$ 0
Number of shares issued, value							$ 223,255	$ 18,743
Options Outstanding							559,573		559,573
Options exercised
Options issued
2015 Equity Incentive Plan [Member]
Reserved shares of common stock									93,827		111,111
Dr Zvi Yaniv [Member]
Shares granted price per share						$ 13.12
Number of restricted shares issued						37,778
Expected vested exercise price description						All these shares become vested and not subject to forfeiture on the earlier of a change of control of the Company, Dr. Yaniv's death, or if more than 180 days after closing, the average trading price of the shares during a measurement period of ten consecutive trading days reaches certain price thresholds. At an $18.00 price, 5,554 shares vest, with additional tranches of 5,556 shares vesting if the price reaches $27.00, $36.00, $45.00 and $54.00. The last 10,000 shares vest at a $63.00 price threshold.
Shares vesting period						5 years
Fair value of shares recognized						$ 495,720
Stock option services period						3 years
Stock Option [Member]
Options Outstanding							559,573
Options exercised
Options expired
Options issued
Warrant [Member]
Warrants to purchase common stock							712
Warrants exercise price							$ 2.81
Warrants, weighted average remaining contractual term							31 months
Warrants intrinsic value
One Investor [Member] | Warrant [Member]
Warrants exercise price	$ 1.50	$ 1.50
Warrants issued to purchase the additional shares	232,558	325,581
Warrant term	45 days	45 days
Percentage of exercise price of options	120.00%	120.00%
Exercise of options, description	(1) 45 days after the day that PEN shares have been trading at or above 120% of the exercise price for a period of 90 days, or (2) four years from date of issue.	(1) 45 days after the day that PEN shares have been trading at or above 120% of the exercise price for a period of 90 days, or (2) four years from date of issue.
Aggregate proceeds from sale of options	$ 6,977	$ 9,767
One Investor [Member] | Warrant [Member] | Option Two [Member]
Warrant term	4 years	4 years
Chief Executive Officer [Member]
Number of shares sold, shares				262,631
Number of shares sold, value				$ 100,000
Class A Common Stock [Member]
Common stock, par value							$ 0.0001		$ 0.0001	$ 0.0001
Common stock, shares authorized							7,200,000		7,200,000	7,200,000
Common stock voting rights							Holders of the Class A common stock are entitled to one vote per share in the election of directors and other matters submitted to a vote of the stockholders.
Number of shares converted				262,631
Common stock shares issued							4,299,620		3,741,481
Class A Common Stock [Member] | 2015 Equity Incentive Plan [Member]
Common stock shares issued									17,284
Class A Common Stock [Member] | Warrant [Member]
Warrants to purchase common stock							1,108,986
Warrants exercise price							$ 1.50
Warrants, weighted average remaining contractual term							25 months
Options Outstanding							550,847
Class A Common Stock [Member] | Private Placement [Member]
Shares issued price per share	$ 0.40	$ 0.40
Number of common stock issued during period, shares	232,558	325,581
Number of shares issued, value	$ 93,023	$ 130,232
Class B Common Stock [Member]
Common stock, par value							$ 0.0001		$ 0.0001	$ 0.0001
Common stock, shares authorized							2,500,000		2,500,000	2,500,000
Common stock conversion basis description							Shares of Class B common stock can be converted, one-for-one, into shares of Class A common stock at any time at the option of the holder.
Common stock voting rights							Holders of PEN Class B common stock are entitled to 100 votes per share in the election of directors and other matters submitted to a vote of the stockholders.
Number of common stock issued during period, shares			1,436,052
Common stock shares issued							0		0
Class Z Common Stock [Member]
Common stock, par value							$ 0.0001		$ 0.0001	$ 0.0001
Common stock, shares authorized							300,000		300,000	300,000
Common stock shares issued							0		0
Class Z Common Stock [Member]
Common stock conversion basis description							Shares of Class Z common stock can be converted, one-for-one, into shares of Class A common stock at any time at the option of the holder.
Common stock voting rights							Holders of PEN Class Z common stock do not vote in the election of directors or otherwise, but they do have the right to designate a director to the PEN Board, have anti-dilution rights described below and have consent rights with respect to certain amendments to PEN's certificate of incorporation.
Number of shares converted				262,631

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Stock Option Plan Activity (Details)	3 Months Ended
	Mar. 31, 2019USD ($)$ / sharesshares
Equity [Abstract]
Number of Options Shares Outstanding, Beginning balance	559,573
Number of Options Shares Exercised
Number of Options Shares, Granted
Number of Options Shares Outstanding, Ending balance	559,573
Number of Options Shares Exercisable Ending balance	559,573
Weighted-Average Exercise Price, Outstanding, Beginning balance | $ / shares
Weighted-Average Exercise Price, Granted | $ / shares
Weighted-Average Exercise Price, Outstanding, Ending balance | $ / shares
Weighted-Average Exercise Price, Exercisable Ending balance | $ / shares
Weighted-Average Remaining Contractual Terms (Years), Outstanding	0 years
Weighted-Average Remaining Contractual Terms (Years), Exercisable	0 years
Aggregate Intrinsic Value, Share Outstanding | $
Aggregate Intrinsic Value, Share Exercisable | $

Concentrations (Details Narrati

Concentrations (Details Narrative)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Percentage of sales	10.00%
United States [Member] | Sales Revenue, Net [Member]
Percentage of sales	90.00%	96.00%

Concentrations - Schedule of Co

Concentrations - Schedule of Concentration Risk, Customer (Details)		3 Months Ended
		Mar. 31, 2019		Mar. 31, 2018
Percentage of revenues		10.00%
Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
Percentage of revenues		43.00%		45.00%
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Customer A [Member]
Percentage of revenues		11.00%		30.00%
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Customer B [Member]
Percentage of revenues		0.00%	[1]	15.00%
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Customer C [Member]
Percentage of revenues		19.00%		0.00%	[1]
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Customer D [Member]
Percentage of revenues		13.00%		0.00%	[1]
Customer Concentration Risk [Member] | Accounts Receivable [Member]
Percentage of revenues		12.00%		61.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer A [Member]
Percentage of revenues		0.00%	[1]	38.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer B [Member]
Percentage of revenues	[1]	0.00%		23.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer C [Member]
Percentage of revenues		12.00%		0.00%	[1]
Vendor Concentrations [Member]
Percentage of revenues		68.00%		67.00%
Vendor Concentrations [Member] | Vendor A [Member]
Percentage of revenues		52.00%		23.00%
Vendor Concentrations [Member] | Vendor B [Member]
Percentage of revenues		0.00%	[1]	19.00%
Vendor Concentrations [Member] | Vendor C [Member]
Percentage of revenues		0.00%	[1]	15.00%
Vendor Concentrations [Member] | Vendor D [Member]
Percentage of revenues		0.00%	[1]	10.00%
Vendor Concentrations [Member] | Vendor E [Member]
Percentage of revenues		16.00%		0.00%	[1]
[1]	Less than 10%

Stock Appreciation Plan (Detail

Stock Appreciation Plan (Details Narrative) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Vested stock outstanding	235,782	235,782
Purchase of common share percent	70.00%
Remaining shares percent	30.00%
Accrued redemption value associated with stock appreciation rights amount	$ 54,290	$ 54,290
Stock Appreciation Rights (SARs) [Member]
Maximum number of stock appreciation granted by board	1,000,000

Segment Reporting (Details Narr

Segment Reporting (Details Narrative) - ReportableSegments	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting [Abstract]
Number of reportable segments	2	2

Segment Reporting - Segment Inf

Segment Reporting - Segment Information Available with Respect to Reportable Business Segments (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Total segment and consolidated gross profit (loss)	$ 181,649	$ 337,266
Total segment operating expenses	277,211	533,660
Total consolidated income (loss) from operations	(95,562)	(196,394)
Total consolidated total assets	318,066		$ 328,028
Product Segment [Member]
Total segment and consolidated revenues	441,488	1,142,575
Total segment and consolidated cost of revenues	182,956	804,687
Total segment and consolidated gross profit (loss)	$ 258,532	$ 337,888
Total gross margin	58.60%	29.60%
Total segment operating expenses	$ 155,190	$ 321,154
Total segment income (loss)	103,342	16,734
Total segment depreciation and amortization	12,444	16,272
Total segment capital additions
Total consolidated total assets	1,429,764	2,621,031
Contract Services Segment [Member]
Total segment and consolidated revenues	316,373	300,950
Total segment and consolidated cost of revenues	393,256	301,572
Total segment and consolidated gross profit (loss)	$ (76,883)	$ (622)
Total gross margin	(24.30%)	(0.20%)
Total segment operating expenses	$ 65,031	$ 39,399
Total segment income (loss)	(141,914)	(40,021)
Total segment depreciation and amortization
Total segment capital additions
Total consolidated total assets	192,507	202,264
Total Segment [Member]
Total segment and consolidated revenues	757,861	1,443,525
Total segment and consolidated cost of revenues	576,212	1,106,259
Total segment and consolidated gross profit (loss)	$ 181,649	$ 337,266
Total gross margin	24.00%	23.40%
Total segment operating expenses	$ 220,221	$ 360,552
Total segment income (loss)	(38,571)	(23,286)
Unallocated cost	(56,991)	(173,108)
Total consolidated income (loss) from operations	(95,562)	(196,394)
Total segment depreciation and amortization	12,444	16,272
Unallocated depreciation
Total consolidated depreciation and amortization	12,444	16,272
Total segment capital additions
Unallocated capital additions
Total consolidated capital additions
Total consolidated total assets	1,634,812	2,849,270
Corporate [Member]
Total consolidated total assets	$ 12,541	$ 25,975

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)	Dec. 10, 2019	Oct. 31, 2019	Oct. 23, 2019	Oct. 09, 2019	Sep. 06, 2019	Aug. 27, 2019	Jul. 24, 2019	Jun. 27, 2019	May 10, 2019	Apr. 24, 2019	Apr. 03, 2019	Mar. 22, 2019	Jan. 31, 2019	Mar. 31, 2019	Mar. 31, 2018
Number of shares issued, value														$ 223,255	$ 18,743
Number of shares issued for services, value														50,741
Repayment of credit														$ 348,369	$ 606,571
Warrant [Member]
Warrant exercise price														$ 2.81
Class A Common Stock [Member]
Number of shares issued														558,139	4,443
Number of shares issued, value														$ 55	$ 55
One Investor [Member] | Warrant [Member]
Warrants issued to purchase the additional shares												232,558	325,581
Warrant exercise price												$ 1.50	$ 1.50
Warrant term												45 days	45 days
Percentage of exercise price of options												120.00%	120.00%
Exercise of options, description												(1) 45 days after the day that PEN shares have been trading at or above 120% of the exercise price for a period of 90 days, or (2) four years from date of issue.	(1) 45 days after the day that PEN shares have been trading at or above 120% of the exercise price for a period of 90 days, or (2) four years from date of issue.
Aggregate proceeds from sale of options												$ 6,977	$ 9,767
One Investor [Member] | Warrant [Member] | Option Two [Member]
Warrant term												4 years	4 years
Class A Common Stock [Member] | Warrant [Member]
Warrant exercise price														$ 1.50
Private Placement [Member] | Class A Common Stock [Member]
Number of shares issued												232,558	325,581
Shares price per share												$ 0.40	$ 0.40
Number of shares issued, value												$ 93,023	$ 130,232
Subsequent Event [Member] | Right to Purchase [Member]
Shares vested under right to purchase option											50,000
Vesting term											5 years
Subsequent Event [Member] | Right to Purchase [Member] | December 31, 2019 [Member] | Maximum [Member]
Shares vested under right to purchase option											75,000
Subsequent Event [Member] | Right to Purchase [Member] | June 30, 2020 [Member]
Shares vested under right to purchase option											100,000
Subsequent Event [Member] | Right to Purchase [Member] | December 31, 2020 [Member] | Maximum [Member]
Shares vested under right to purchase option											125,000
Subsequent Event [Member] | Right to Purchase [Member] | Bonus Program in 2019 or 2020 [Member]
Shares vested under right to purchase option											100,000
Subsequent Event [Member] | Class A Common Stock [Member]
Number of shares forfeited						37,778
Subsequent Event [Member] | One Investor [Member] | Warrant [Member]
Warrants issued to purchase the additional shares	272,055	13		88,235	216,906			441,860	523,266
Warrant exercise price	$ 1.50	$ 1.50		$ 1.50	$ 1.50			$ 1.50	$ 1.50
Warrant term	4 years	4 years		4 years	4 years			45 days	45 days
Percentage of exercise price of options								120.00%	120.00%
Exercise of options, description								(1) 45 days after the day that PEN shares have been trading at or above 120% of the exercise price for a period of 90 days, or (2) four years from date of issue.	(1) 45 days after the day that PEN shares have been trading at or above 120% of the exercise price for a period of 90 days, or (2) four years from date of issue.
Aggregate proceeds from sale of options	$ 8,162	$ 4,963		$ 2,647	$ 6,507			$ 13,256	$ 15,698
Aggregate exercise price of warrant	$ 0.03
Subsequent Event [Member] | One Investor [Member] | Warrant [Member] | Option Two [Member]
Warrant term								4 years	4 years
Subsequent Event [Member] | Class A Common Stock [Member] | Five Directors [Member]
Shares price per share											$ 0.55
Number of shares issued for services											18,180
Number of shares issued for services, value											$ 10,000
Subsequent Event [Member] | Class A Common Stock [Member] | President [Member] | Option to Purchase [Member]
Shares price per share											$ 0.55
Number of shares issued for services											550,000
Subsequent Event [Member] | Class A Common Stock [Member] | Directors [Member]
Shares price per share			$ 0.60				$ 0.64			$ 0.60
Number of shares issued for services			23,331				18,750			19,998
Number of shares issued for services, value			$ 14,000				$ 12,000			$ 12,000
Subsequent Event [Member] | Private Placement [Member] | Class A Common Stock [Member]
Number of shares issued	272,059	165,441		88,235	216,912			441,860	523,266
Shares price per share	$ 0.65			$ 0.65	$ 0.65			$ 0.40	$ 0.40
Number of shares issued, value	$ 176,838			$ 57,353	$ 140,993			$ 176,744	$ 209,302
Subsequent Event [Member] | Private Placement [Member] | Class A Common Stock [Member]
Number of shares issued		15,384
Number of shares issued, value		$ 117,537
Subsequent Event [Member] | Private Placement [Member] | Class A Common Stock [Member]
Shares price per share		$ 0.65