Nano Magic (NMGX) 10-Q 29 Jun 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Jun. 01, 2020
Document And Entity Information
Entity Registrant Name	Nano Magic Inc.
Entity Central Index Key	0000891417
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
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 Flag	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,199,942
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
CURRENT ASSETS:
Cash	$ 574,059	$ 216,801
Investments	10,236	10,236
Accounts receivable, net	198,310	151,290
Inventory	424,006	422,622
Prepaid expenses and contract assets	37,851	34,160
Total Current Assets	1,244,462	835,109
Right-of-use assets, non-current	220,029	257,523
Property, plant and equipment, net	227,882	221,565
Other assets	5,890	5,890
Total Assets	1,698,263	1,320,087
CURRENT LIABILITIES:
Accounts payable	769,267	801,788
Accounts payable - related parties	19,887	19,887
Accrued expenses and other current liabilities	163,843	199,875
Customer deposits	66,943
Current portion of notes payable	49,641	52,641
Advances from related parties	140,000	140,000
Current portion of lease liabilities	104,035	131,835
Contract liabilities	93,369	162,123
Total Current Liabilities	1,406,985	1,508,149
Notes payable, net of current portion	111,792	122,170
Lease liabilities, net of current portion	127,682	136,624
Total Liabilities	1,646,459	1,766,943
Commitments and Contingencies (See Note 11)
STOCKHOLDERS' DEFICIT:
Preferred stock, $0.0001 par value, 100,000 shares authorized; no shares issued and outstanding
Additional paid-in capital	8,118,444	7,242,067
Accumulated deficit	(8,067,360)	(7,689,545)
Total Stockholders' Deficit	51,804	(446,856)
Total Liabilities and Stockholders' Deficit	1,698,263	1,320,087
Class A Common Stock [Member]
STOCKHOLDERS' DEFICIT:
Common stock, value	720	622
Class B Common Stock [Member]
STOCKHOLDERS' DEFICIT:
Common stock, value
Class Z Common Stock [Member]
STOCKHOLDERS' DEFICIT:
Common stock, value

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	100,000	100,000
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	7,199,942	6,222,881
Common stock, shares outstanding	7,199,942	6,222,881
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 (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
REVENUES:
Total Revenues	$ 448,174	$ 757,861
COST OF REVENUES:
Total Cost of Revenues	389,717	530,505
GROSS PROFIT	58,457	227,356
OPERATING EXPENSES:
Selling and marketing expenses	11,057	7,800
Salaries, wages and related benefits	144,633	56,512
Research and development	16,652	15,805
Professional fees	124,752	79,434
General and administrative expenses	137,070	139,660
Total Operating Expenses	434,164	299,211
INCOME (LOSS) FROM OPERATIONS	(375,707)	(71,855)
OTHER (EXPENSE) INCOME:
Interest expense	(2,108)	(2,594)
Other income, net		4,210
Total Other (Expense) Income	(2,108)	1,616
NET INCOME (LOSS)	$ (377,815)	$ (70,239)
NET INCOME (LOSS) PER COMMON SHARE:
Basic	$ (0.06)	$ (0.02)
Diluted	$ (0.06)	$ (0.02)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic	6,501,208	3,978,173
Diluted	6,501,208	3,978,173
Products [Member]
REVENUES:
Total Revenues	$ 241,717	$ 456,868
COST OF REVENUES:
Total Cost of Revenues	222,818	197,957
Contract Services [Member]
REVENUES:
Total Revenues	206,457	300,993
COST OF REVENUES:
Total Cost of Revenues	$ 166,899	$ 332,548

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Deficit (Unaudited) - 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, 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					(70,239)	(70,239)
Balance at Mar. 31, 2019	$ 429			6,126,545	(6,710,609)	583,635
Balance, shares at Mar. 31, 2019	4,299,620
Balance at Dec. 31, 2018	$ 374			5,886,600	(6,640,370)	(753,396)
Balance, shares at Dec. 31, 2018	3,741,481
Balance at Dec. 31, 2019	$ 622			7,242,067	(7,689,545)	(446,856)
Balance, shares at Dec. 31, 2019	6,222,881
Common stock issued for cash, net of issuance costs	$ 96			621,313		621,409
Common stock issued for cash, net of issuance costs, shares	956,013
Common stock issued for services	$ 2			11,998		12,000
Common stock issued for services, shares	21,048
Stock-based compensation				24,475		24,475
Warrants, options, and warrant options on private placement				37,058		37,058
Stock Subscription Payable				181,533		181,533
Net loss					(377,815)	(377,815)
Balance at Mar. 31, 2020	$ 720			$ 8,118,444	$ (8,067,360)	$ 51,804
Balance, shares at Mar. 31, 2020	7,199,942

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (377,815)	$ (70,239)
Adjustments to reconcile net loss to net cash provided by operating activities:
Change in inventory obsolescence reserve	12,566	35,381
Depreciation and amortization expense	(4,841)	12,444
Stock-based compensation	36,475	55
Change in operating assets and liabilities:
Accounts receivable	(47,020)	181,737
Inventory	(13,950)	(105,797)
Prepaid expenses and other assets	(3,691)	22,138
Accounts payable	(32,522)	(65,297)
Operating lease liabilities	752
Customer deposits	66,943
Accrued expenses	(36,032)	(15,640)
Deferred revenue	(68,754)	9,869
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES	(467,889)	4,651	$ 878,668
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment	(1,475)	(2,482)
NET CASH USED IN INVESTING ACTIVITIES	(1,475)	(2,482)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of bank lines of credit		(348,369)
Repayment of bank loans	(10,378)	818
Proceeds from sale of common stock	840,000	239,944
Repayment of notes payable	(3,000)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	826,622	(107,607)
NET INCREASE (DECREASE) IN CASH	357,258	(105,438)
CASH, beginning of year	216,801	306,502	306,502
CASH, end of period	574,059	201,064	$ 216,801
Cash paid during the period for interest
Interest	2,108	2,594
Income taxes

Organization and Basis of Prese

Organization and Basis of Presentation	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation	NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION Organization Nano Magic Inc. (“we”, “us”, “our”, “Nano Magic” 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. On March 3, 2020, we changed our name from PEN Inc. to Nano Magic Inc. Through the Company’s wholly-owned subsidiary, Nano Magic LLC, formerly known as PEN Brands LLC, 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 directly to consumers and also to retailers and other institutional customers. On March 31, 2020, PEN Brands LLC changed its name to Nano Magic LLC. Through the Company’s wholly-owned subsidiary, Applied Nanotech, Inc., we primarily perform contract research services for the Company 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, 2020 and for the three months ended March 31, 2020 and 2019. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the operating results for the full year ending December 31, 2020 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, 2019 and for the year then ended, which were filed with the Securities and Exchange Commission on Form 10-K on May 13, 2020. Going Concern These unaudited 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 May 13, 2020, the Company had losses from operations and net cash used by operations of $1,031,083 and $878,668, respectively, for the year ended December 31, 2019. Furthermore, the Company had an accumulated deficit and a working capital deficit of $8,067,360 and $162,523, respectively, at March 31, 2020. 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. After taking action to reduce operating expenses in 2018, during 2019 and the first quarter of 2020, we closely monitor costs. In addition, the Company raised equity capital in 2018, 2019 and 2020. 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, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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, 2020 and 2019 include estimates for costs to complete open contracts, allowance for doubtful accounts on accounts receivable, the estimates for obsolete inventory, 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 Accounts receivable are presented net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowance when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balance, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. The Company only grants credit terms to established customers who are deemed to be financially responsible. 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 based on prices paid for inventory items. This valuation requires us to make judgments, based on currently available information, about the likely method of disposition, such as sales to individual customers and expected recoverable values. 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, 2020 or 2019. Revenue Recognition We adopted ASC Topic 606, Revenue from Contracts with Customers Identification of the contract, or contracts, with a customer A contract with a customer exists when (i) we enter into an enforceable contract with a customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services, (ii) the contract has commercial substance and, (iii) we determine that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. Identification of the performance obligations in the contract Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the goods or service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. When a contract includes multiple promised goods or services, we apply judgment to determine whether the promised goods or services are capable of being distinct and are distinct within the context of the contract. If these criteria are not met, the promised goods or services are accounted for as a combined performance obligation. Determination of the transaction price The transaction price is determined based on the consideration to which we will be entitled to receive in exchange for transferring goods or services to our customer. We estimate any variable consideration included in the transaction price using the expected value method that requires the use of significant estimates for discounts, cancellation periods, refunds and returns. Variable consideration is described in detail below. Allocation of the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative Stand-Alone Selling Price (“SSP,”) basis. We determine SSP based on the price at which the performance obligation would be sold separately. If the SSP is not observable, we estimate the SSP based on available information, including market conditions and any applicable internally approved pricing guidelines. Recognition of revenue when, or as, we satisfy a performance obligation We recognize contract revenue over time and product revenue at a point in time, when the related performance obligation is satisfied by transferring the promised goods or services to our customer. Contract revenue is recognized based on a cost-to-cost input method. Disaggregation of Revenue For the three months ended March 31, 2020 and 2019, total sales in the United States represent approximately 85% and 90% of total consolidated revenues, respectively. Sales to Italy represented 13% and less than 10% of consolidated revenues in the three months ended March 31, 2020 and 2019, respectively. No other geographical area accounted for more than 10% of total sales during the three months ended March 31, 2020 and 2019. Principal versus Agent Considerations When another party is involved in providing goods or services to our customer, we apply the principal versus agent guidance in ASC Topic 606 to determine if we are the principal or an agent to the transaction. When we control the specified goods or services before they are transferred to our customer, we report revenue gross, as principal. If we do not control the goods or services before they are transferred to our customer, revenue is reported net of the fees paid to the other party, as agent. Our evaluation to determine if we control the goods or services within ASC Topic 606 includes the following indicators: We are primarily responsible for fulfilling the promise to provide the specified good or service. When we are primarily responsible for providing the goods and services, such as when the other party is acting on our behalf, we have indication that we are the principal to the transaction. We consider if we may terminate our relationship with the other party at any time without penalty or without permission from our customer. We have inventory risk before the specified good or service has been transferred to a customer or after transfer of control to the customer. We may commit to obtaining the services of another party with or without an existing contract with our customer. In these situations, we have risk of loss as principal for any amount due to the other party regardless of the amount(s) we earn as revenue from our customer. The entity has discretion in establishing the price for the specified good or service. We have discretion in establishing the price our customer pays for the specified goods or services. Contract Assets We capitalize costs and estimated earnings in excess of billings as a contract asset in current assets. At March 31, 2020 and 2019, contract assets totaled $0 and $16,486, respectively. Contract Liabilities Contract liabilities consist of customer advance payments and billings in excess of revenue recognized. We may receive payments from our customers in advance of completing our performance obligations. We record contract liabilities equal to the amount of payments received in excess of revenue recognized, Contract liabilities are recorded under the caption “contract liabilities” and are reported as current liabilities on our consolidated financial statements when the time to fulfill the performance obligations under terms of our contracts is less than one year. At March 31, 2020 and 2019, contract liabilities totaled $93,369 and $162,123, respectively. 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, 2020 and 2019 shipping and handling costs amounted to $37,611 and $16,521, 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, 2020 and 2019 were $16,652 and $15,805, 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, 2020 and 2019 were $2,594 and $146, 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. The Company adopted ASU No. 2017-09 in 2018; its adoption did not have a material impact on its consolidated financial statements. 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. 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, 2020 December 31, 2019 Stock options 554,859 455,502 Stock warrants 4,052,715 2,817,463 Total 4,607,574 3,272,952 Additionally, there are an unknown quantity of common stock equivalents that result from a potential conversion of stock appreciation rights (See Note 14). Net loss per share for common stock is as follows: Net (loss) income per common shares outstanding: Three Months Ended March 31, 2020 Three Months Ended Class A common stock $ (0.06 ) $ (0.02 ) Weighted average shares outstanding: Class A common stock 6,501,345 3,978,173 Total weighted average shares outstanding 6,501,345 3,978,173 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 (the “Contract services segment”). Leases The Company adopted ASC 842 on January 1, 2019 using the modified retrospective basis and did not adjust comparative periods as permitted under Accounting Standards Update (“ASU”) 2018-11. ASC 842 supersedes nearly all existing lease accounting guidance under U.S. GAAP issued by the Financial Accounting Standards Board (“FASB”) including ASC Topic 840, Leases. ASC 842 requires that lessees recognize Right-of-Use (ROU) assets and lease liabilities calculated based on the present value of lease payments for all lease agreements with terms that are greater than twelve months. ASC 842 distinguishes leases as either a finance lease or an operating lease that affects how the leases are measured and presented in the statement of operations and statement of cash flows. For operating leases, we calculated ROU assets and lease liabilities based on the present value of the remaining lease payments as of the date of adoption using the IBR as of that date. On the date of adoption, operating lease liabilities and right-of-use assets totaled $400,327. We do not have finance leases as per the definition of ASC 842 as of March 31, 2019. The FASB issued practical expedients and accounting policy elections that the Company has applied as described below. Practical Expedients ASC 842 provides a package of three practical expedients that must be adopted together and applied to all lease agreements. The Company elected the package of practical expedients as follows for all leases: Whether expired or existing contracts contain leases under the new definition of a lease. Because the accounting for operating leases and service contracts was similar under ASC 840, there was no accounting reason to separate lease agreements from service contracts in order to account for them correctly. The Company reviewed existing service contracts to determine if the agreement contained an embedded lease to be accounted for on the balance sheet under ASC 842. Lease classification for expired or existing leases. Leases that were capital leases under ASC 840 are accounted for as financing leases under ASC 842 while leases that were operating leases under ASC 840 are accounted for as operating leases under ASC 842. Whether previously capitalized initial direct costs would meet the definition of initial direct costs under the new standard guidance. The definition of initial direct costs is more restrictive under ASC 842 than under ASC 840. Entities that do not elect the practical expedient are required to reassess capitalized initial direct costs under ASC 840 and record an equity adjustment for those that are not capitalizable under ASC 842. Accounting Policy Elections Lease Term The Company calculates the term for each lease agreement to include the noncancelable period specified in the agreement together with (1) the periods covered by options to extend the lease if the Company is reasonably certain to exercise that option, (2) periods covered by an option to terminate if the Company is reasonably certain not to exercise that option and (3) period covered by an option to extend (or not terminate) if controlled by the lessor. The assessment of whether the Company is reasonably certain to exercise an option to extend a lease requires significant judgement surrounding contract-based factors, asset-based factors, entity-based factors and market-based factors. Lease Payments Lease payments consist of the following payments (as applicable) related to the use of the underlying asset during the lease term: ● Fixed payments, including in substance fixed payments, less any lease incentives paid or payable to the lessee ● Variable lease payments that depend on an index or a rate, such as the Consumer Price Index or a market interest rate, initially measured using the index or rate at the commencement date of January 1, 2019. ● The exercise price of an option to purchase the underlying asset if the lessee is reasonably certain to exercise that option. ● Payments for penalties for terminating the lease if the lease term reflects the lessee exercising an option to terminate the lease. ● Fees paid by the lessee to the owners of a special-purpose entity for structuring the transaction ● For a lessee only, amounts probable of being owed by the lessee under residual value guarantees Incremental Borrowing Rate The ROU asset and related lease liabilities recorded under ASC 842 are calculated based on the present value of the lease payments using (1) the rate implicit in the lease or (2) the lessee’s IBR, defined as the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Recently Issued Accounting Pronouncements Financial Instruments — Credit Losses (Topic 326) In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Measurement of expected credit losses is to be based on relevant forecasts that affect collectability. The scope of financial assets within the CECL methodology is broad and includes trade receivables from certain revenue transactions and certain off-balance sheet credit exposures. Different components of the guidance require modified retrospective or prospective adoption. ASU 2016-13 is effective for the annual reporting period beginning on or after December 15, 2020. The Company adopted this standard January 1, 2020 and there was no material impact. Except for our accounting policies for allowance for doubtful accounts as a result of adopting ASU 2016-13, there have been no changes to our significant accounting policies described in Note 2 to our Annual Report on Form 10-K for the year ended December 31, 2019, that have had a material impact on our Consolidated Financial Statements and related notes. Reclassifications Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements.

Correction of Immaterial Errors

Correction of Immaterial Errors	3 Months Ended
	Mar. 31, 2020
Accounting Changes and Error Corrections [Abstract]
Correction of Immaterial Errors	NOTE 3 – CORRECTION OF IMMATERIAL ERRORS During the fourth quarter of 2019, the Company identified errors in accounting for revenues and cost of revenues resulting in immaterial correction of errors in previously issued consolidated financial statements. Each of these errors affected periods beginning prior to 2018 through December 31, 2019. In accordance with Staff Accounting Bulletin (SAB) No. 99, Materiality Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements The adjustments cumulatively impacted the following balances as of March 31, 2019: As Reported Adjustment As Corrected Accrued expenses $ 440,515 $ 22,000 a $ 462,515 Cost of revenues 576,212 (45,707 )b 530,505 Gross profit 181,649 (45,707 )b 227,356 Operating expenses 277,211 22,000 a 299,211 Other income 47,323 (45,707 )b 1,616 Net (loss) (48,239 ) (22,000 )a (70,239 ) References to above adjustments a. This adjustment accounts for the accrual of audit fees performed in the first quarter of 2019 not previously recorded in the period. During the 2019 year-end audit, various other reclassifications were made between operating expense accounts not impacting net losses and accordingly the Company has booked these in the proper periods in order to facilitate comparative analysis between the periods presented. b. This reclassification relates to the proper booking of sublease income in cost of revenues rather than other income.

Accounts Receivable

Accounts Receivable	3 Months Ended
	Mar. 31, 2020
Receivables [Abstract]
Accounts Receivable	NOTE 4 – ACCOUNTS RECEIVABLE At March 31, 2020 and December 31, 2019, accounts receivable consisted of the following: March 31, 2020 December 31, 2019 Accounts receivable $ 211,980 $ 164,960 Less: allowance for doubtful accounts (13,670 ) (13,670 ) Accounts receivable, net $ 198,310 $ 151,290

Inventory

Inventory	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Inventory	NOTE 5 – INVENTORY At March 31, 2020 and December 31, 2019, inventory consisted of the following: March 31, 2020 December 31, 2019 Raw materials $ 679,333 $ 663,932 Work-in-progress 17,441 - Finished goods 316,870 335,762 1,013,644 999,694 Less: reserve for obsolescence (589,638 ) (577,072 ) Inventory, net $ 424,006 $ 422,622

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Property and Equipment	NOTE 6 - 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.

Operating Lease Right-Of-Use As

Operating Lease Right-Of-Use Assets	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Operating Lease Right-Of-Use Assets	NOTE 7 – OPERATING LEASE RIGHT-OF-USE ASSETS Leasing Transactions The Company’s leased assets include offices, production and research and development facilities. Our current lease portfolio has remaining terms from less than one-year up to seven years. Many of these leases contain options under which we can extend the term for several years. Renewal options are excluded from our calculation of lease liabilities unless we are reasonably assured to exercise the renewal option. Our lease agreements do not contain residual value guarantees or material restrictive covenants. On September 20, 2017, the Company entered into a three-year lease agreement for 22,172 square feet of office space in Brooklyn Heights, Ohio beginning September 20, 2017 and ending September 20, 2020. Monthly lease payments amount to $8,688. On December 10, 2018, we entered into a five-year lease agreement for 3,742 square feet of space for the design facility in Austin, beginning January 2019 and ending February 29, 2024. Monthly lease payments start at $3,472 per month, increasing 3% each year. On June 21, 2019, we leased approximately 1,200 square feet of office space in Bingham Farms, Michigan for nine months for a sales office. Monthly payments are $1,529 per month. The lease has been extended through December 31, 2020. Operating leases are reflected on our balance sheet within operating lease ROU assets and the related current and non-current operating lease liabilities. Leases with terms of less than twelve months have been classified as current ROU assets, whereas the lease with a remaining term of more than twelve months has been classified as a non-current ROU asset. ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from lease agreement. Operating lease ROU assets and liabilities are recognized at the commencement date, or the date on which the lessor makes the underlying asset available for use, based upon the present value of the lease payments over the respective lease term. Lease expense is recognized on a straight-line basis over the lease term, subject to any changes in the lease or expectation regarding the terms. Variable lease costs such as common area maintenance, property taxes and insurance are expensed as incurred. Balance Sheet Supplemental balance sheet information related to leases was as follows: March 31, 2020 December 31, 2019 Operating Leases Total operating lease ROU assets $ 220,029 $ 257,523 Operating lease liabilities (current) 104,035 131,835 Operating lease liabilities (noncurrent) 127,682 136,624 Total operating lease liabilities $ 231,717 $ 268,459 The average remaining lease term in months is 21.3 months with an average discount rate of 8.5%. Income Statement Supplemental income statement information related to leases was as follows: March 31, 2020 March 31, Operating Lease Costs Cost of product revenue $ 31,154 31,154 Cost of contract services 11,585 11,585 Variable lease costs 10,323 25,074 Sublease income (13,500 ) (37,707 ) Net operating lease cost $ 39,562 $ 39,562

Bank Loans and Lines of Revolvi

Bank Loans and Lines of Revolving Credit Facility	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Bank Loans and Lines of Revolving Credit Facility	NOTE 8 – BANK LOANS AND LINES OF REVOLVING CREDIT FACILITY In April 2014, our subsidiary, Nano Magic 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 was payable on demand and was secured by all of Nano Magic LLC’s assets. The Revolving Note was amended five times in 2015, 2017 and 2018. As amended, the interest rate was, 3.0% above the Prime Rate (as reported in the Wall Street Journal). Under a subsequent amendment, the maturity date was extended to July 3, 2019 with an automatic one-year renewal unless terminated by either party 60 days in advance. On January 31, 2019, the Company paid $172,101 to the Lender. This payment, and the application of $85,000 in cash collateral held by the Lender, constituted the outstanding principal balance of $234,841 and accrued interest and fees of $22,260 due to the Lender and thus paid in full all of our remaining obligations under the Revolving Note. The parties also terminated a revolving credit line agreement originally executed in April 2014 that was renewed in August 2018.

Notes Payable

Notes Payable	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Notes Payable	NOTE 9 – NOTES PAYABLE On February 10, 2015, our subsidiary Nano Magic LLC entered into a promissory note (the “Equipment Note”) with KeyBank, N.A. (the “Bank”) to borrow up to $373,000. The borrower may obtain one or more advances not to exceed $373,000. The unpaid principal balance of the Equipment Note is payable in 60 equal monthly installments 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. On June 18, 2019, Nano Magic LLC entered into an Amendment to the Equipment Note with the Bank (the “Amendment”). By the amendment, the maturity date of the note was extended until April 10, 2022, the interest rate was raised to 6.29% per year, and the monthly payments were reduced to $4,053 per month including interest. As of December 31, 2019, $48,641 and $67,285, respectively, represent the current and non-current portion due under the Equipment Note, as amended by the Amendment. As of March 31, 2020, $48,641 and $56,910, represent the current and non-current portion due under this note, respectively. 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, 2019). In July 2019, we settled with one holder who agreed to accept aggregate payments of $10,000 in lieu of $14,000, of which $6,000 was paid in 2019 and the balance of $4,000 due in monthly payments of $1,000 during the first four months of 2020. In addition, in 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. This note does not bear interest and is due in January 2027. In aggregate, as of March 31, 2020, $55,883 is payable under all five notes, of which $54,883 is included in non-current notes payable.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2020
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 10 – RELATED PARTY TRANSACTIONS For the period ended March 31, 2020, we incurred consulting fees to our directors as follows: Ronald Berman $90,000; Scott Rickert $3,000, and Jeanne Rickert $3,000. Tom J. Berman, a director and officer was paid salary of $45,000 during the period. For the period ended March 31, 2019, we incurred consulting fees to our directors as follows: Ronald J. Berman $12,760; and Tom J. Berman $17,000; in addition, Scott Rickert and Jeanne Rickert were each paid a salary of $1,000 per month for an aggregate of $3,000 each. Accounts Payable – related parties and advances from related parties of $159,887 used as working capital in 2018 from Mr. Rickert and Ms. Rickert and accrued payroll of $16,000 due to them have been included within the consolidated balance sheet as of March 31, 2020 and December 31, 2019.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Stockholders' Equity	NOTE 11 - 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 100,000 shares of Preferred Stock, par value $0.0001 per share (“preferred stock”). The Company has accepted subscriptions and has received payment for 279,283 shares of Class A common stock that have not been issued because the Company lacks sufficient authorized shares to issue the shares and status of shareholder approval to increase the authorized shares of common stock. The same constraint affects outstanding options and warrants; the Company does not have authorized and reserved shares sufficient to issue shares if options or warrants were to be exercised. See Note 16, Subsequent Events, for a description of expected changes to the Company’s common 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. See Note 16 Subsequent Events regarding proposed changes to our common stock. 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 Common Stock Issued for Services On February 12, 2020, we issued an aggregate of 21,048 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 $0.57 per share based on the quoted price of the stock for a total value of $12,000. Sales of Common Stock and Derivative Equity Securities On January 22, 2020, we sold 198,530 shares of Class A common stock in a private placement to PEN Comeback 2 at a per share price of $0.65 for aggregate proceeds of $129,044. At the same time the investor bought 198,516 warrants to purchase up to 198,516 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 $5,955. On February 24, 2020, we sold 205,883 shares of Class A common stock in a private placement to PEN Comeback 2 at a per share price of $0.65 for aggregate proceeds of $133,824. At the same time the investor bought 205,868 warrants to purchase up to 198,516 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 $6,176. On March 24, 2020, in a private placement to PEN Comeback 2, we sold 551,600 shares of Class A common stock and committed to issue an additional 242,518 shares when we have additional authorized shares. If the additional shares have not been issued by March 24, 2021, we must refund the purchase price (without interest). Proceeds, at a per share price of $0.65, were $516,177. At the same time the investor bought 794,110 warrants to purchase up to 794,110 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 sale of the warrants were $23,823. On March 26, 2020, in a private placement to the same investor we committed to issue 36,765 shares when we have additional authorized shares and accepted $.65 per share for proceeds of $23,897. If the shares have not been issued by March 26, 2021, we must refund the purchase price (without interest). At the same time the investor bought 36,758 warrants to purchase up to 36,780 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 sale of the warrants were $1,103. In total for the three months ended March 31, 2020, 956,013 shares of Class A common stock were sold and issued for $621,409. Additionally, 1,235,252 warrants were sold for $37,058, and 279,283 shares of Class A common stock were sold for $181,533 but not yet issued and therefore recorded as a subscription payable at March 31, 2020. Stock Options Stock options outstanding are to purchase Class A common stock. Stock options outstanding at March 31, 2020 are 554,859, reflecting a grant of 100,000 under the 2015 Equity Incentive Plan and the expiration of 643 options. No options were exercised during the period. Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding December 31, 2019 455,502 $ 1.24 4.22 $ 18,000 Exercised - - - - Issued 100,000 $ 0.65 3.84 $ 120,000 Expired 643 Outstanding March 31, 2020 554,859 $ 1.06 3.96 $ 705,000 Exercisable March 31, 2020 129,859 $ 2.67 3.91 $ 162,500 Warrants As of March 31, 2020, there were outstanding and exercisable warrants to purchase 4,052,715 shares of common stock with a weighted average exercise price of $1.50 per share and a weighted average remaining contractual term of 40.29 months. As of March 31, 2020, there was no intrinsic value for the warrants. 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. On December 31, 2019, we issued an aggregate of 102,500 shares to employees in settlement of accrued salaries totaling $66,615. On January 31, 2020 we granted an option to purchase 100,000 shares to a senior member of the sales team with vesting tied directly to 2020 sales goals.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 12 - 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 14). 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. We are not currently a defendant in any proceedings. 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. As of March 31, 2020, the Company has not accrued any amount for litigation contingencies.

Concentrations

Concentrations	3 Months Ended
	Mar. 31, 2020
Risks and Uncertainties [Abstract]
Concentrations	NOTE 13 – 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 For the three months ended March 31, 2020 and 2019, two customers represented 63% and one different customer represented 17% of product revenues respectively. For the contract revenues segment, two customers accounted for 100% of revenues for the three months ended March 31, 2020 and 2019. These customers did not have material accounts receivable balances at March 31, 2020 or 2019. A reduction in sales from or loss of such customers would have a material adverse effect on our results of operations and financial condition. Geographic Concentrations of Sales For the three months ended March 31, 2020 and 2019, total sales in the United States represent approximately 85% and 90% of total consolidated revenues, respectively. Sales to Italy represented 13% and less than 10% of consolidated revenues in the three months ended March 31, 2020 and 2019, respectively. No other geographical area accounted for more than 10% of total sales during the three months ended March 31, 2020 and 2019. Vendor Concentrations For the three months ended March 31, 2020 and 2019, one vendor represented 21% and two different vendors represented 68% of inventory purchases respectively.

Stock Appreciation Plan

Stock Appreciation Plan	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Stock Appreciation Rights Plan	NOTE 14 – STOCK APPRECIATION PLAN From June 1, 1988, until December 31, 1997, when the plan was terminated, Nano Magic 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 Nano Magic 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, 2020 and December 31, 2019. 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 Nano Magic , 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 Nano Magic 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 Nano Magic (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 $42,823, at March 31, 2020 and December 31, 2019. 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, 2020
Segment Reporting [Abstract]
Segment Reporting	NOTE 15 – 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, 2020 and 2019 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, 2020 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, 2020 and 2019 was as follows: Three Months Ended March 31, 2020 2019 Revenues: Product segment $ 241,717 $ 456,868 Contract services segment 206,457 300,993 Total segment and consolidated revenues $ 448,174 $ 757,861 Cost of revenues: Products $ 222,818 $ 197,957 Contract services segment 166,899 332,548 Total segment and consolidated cost of revenues $ 389,717 $ 530,505 Gross profit (loss): Product segment $ 18,899 $ 258,911 Contract services segment 39,558 (31,355 ) Total segment and consolidated gross profit $ 58,457 $ 227,356 Gross margin: Product segment 7.8 % 56.7 % Contract services segment 19.2 % -10.5 % Total gross margin 13.0 % 30.0 % Segment operating expenses: Product segment 242,240 155,190 Contract services segment 45,980 65,031 Total segment operating expenses 288,220 220,221 Income (loss) from operations: Product segment $ (223,341 ) $ 103,721 Contract services segment (6,422 ) (96,586 ) Total segment income (loss) (229,763 ) 7,135 Unallocated costs (145,944 ) (78,990 ) Total consolidated income (loss) from operations $ (375,707 ) $ (71,855 ) Depreciation and amortization: Product segment $ (5,260 ) $ 12,444 Contract services segment 419 - Total segment depreciation and amortization (4,841 ) 12,444 Unallocated depreciation - - Total consolidated depreciation and amortization $ (4,841 ) $ 12,444 Capital additions: Product segment $ 1,475 $ - Contract services segment - - Total consolidated capital additions $ 1,475 $ - March 31, 2020 December 31, 2019 Segment total assets: Product segment $ 1,410,252 $ 1,132,858 Contract services segment 223,819 176,568 Corporate 64,192 10,661 Total consolidated total assets $ 1,698,263 $ 1,320,087

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	NOTE 16 - SUBSEQUENT EVENTS Paycheck Protection Program Loan On May 8, 2020, we obtained a loan from Fifth Third Bank for $130,000 under the Small Business Administration Paycheck Protection Program. COVID-19 Pandemic In December 2019, a novel strain of coronavirus disease (“COVID-19”) was first reported in Wuhan, China. Less than four months later, on March 11, 2020, the World Health Organization declared COVID-19 a pandemic. Restrictions imposed by Federal, state and local governments have affected operations of our business and those of our vendors and customers as well as logistics for shipping and receiving supplies and shipping our products. Apart from the disruption affecting all manufacturing businesses, some of the raw materials and bottles used to produce our liquid products, including the new surface product, are used to produce hand sanitizer and other cleaning product that are in high demand and some of our raw materials and packaging have become harder to find due to the COVID-19 pandemic. If shortages continue, we may not be able to obtain adequate supply. Moreover, when the material is available, the price can be substantially higher which will probably adversely impact our profit margin even if we can implement some price increases. The increased use of face masks and other personal protective equipment as a result of the pandemic has created additional demand for our antifog product. There has also been a slow-down in business activity as a result of the COVID-19 pandemic, and the severity of the disruption and the length of the slow-down and timing of recovery are unknown. As noted above, on May 8, 2020, we obtained a loan from Fifth Third Bank for $130,000 under the Small Business Administration Paycheck Protection Program. Depending on the severity and term of the disruptions from the COVID-19 pandemic, our business may still suffer from a lack of working capital. Equipment Loan Modification In April, 2020, KeyBank agreed that we would not be required to make scheduled payments in April, May and June. The amount that would have been paid will be added to the final scheduled loan payment. Michigan Lease Effective May 31, 2020, we entered into a lease for a 29,220 square foot building in Madison Heights, Michigan. The occupancy date and rent commencement date is October 1, 2020. By that date, the landlord, Magic Research LLC, is required to have completed tenant improvements to accommodate our office and manufacturing needs. When we are established in the new facility, we expect to vacate our facility in Brooklyn Heights, Ohio as our lease there expires in September 2020. The new lease has a term of seven years with a renewal option at the end of the initial term for an additional 3-year term, and a second renewal option thereafter for an additional 5-year term. As the sole tenant, we are responsible for all taxes, ordinary maintenance, snow removal and other ordinary operating expenses. Rent is $6.50 per square foot, increasing by $0.25 per year. During the first three years we also have the right to buy up to a 49% interest in Magic Research LLC for a price equal to 49% of the contributions received from other members. Ron Berman, one of our directors, and his son Tom Berman, our CEO and a director, each have a 2.08% ownership interest in Magic Research LLC. The manager of Magic Research LLC is Magic Research Management LLC; Ron Berman and Tom Berman are two of its three co-managers. Compensation to Magic Research Management LLC is $10,000 per year to oversee the recordkeeping, tax return preparation, oversight of tenant improvements and other operating costs for the landlord. In connection with the lease described above, we issued the landlord warrants to purchase up to 410,000 shares of our Class A common stock at a warrant exercise price of $1.50 per share. The warrants are exercisable after we have additional authorized shares of stock until the fourth anniversary of the date of the lease Election of Directors, Proposed changes to Common Stock and Authorization of Additional Shares On June 10, 2020 we filed with the SEC and mailed to our stockholders a definitive 14C Information Statement notifying our stockholders that our Board and a majority of our stockholders had taken action to: (1) re-elect our incumbent directors, (2) amend our Amended and Restated Certificate of Incorporation (as amended), to eliminate the Company’s Class B common stock and Class Z common stock and related provisions and rename as “common stock” the Company’s Class A Common Stock, and (3) to increase the number of authorized shares of common stock from 7,200,000 to 30,000,000. In accordance with Rule 14c-2 promulgated under the Exchange Act, these actions will become effective no sooner than 20 calendar days after the mailing. We expect these actions to be effective on or about July 2, 2020.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
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, 2020 and 2019 include estimates for costs to complete open contracts, allowance for doubtful accounts on accounts receivable, the estimates for obsolete inventory, 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 Accounts receivable are presented net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowance when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balance, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. The Company only grants credit terms to established customers who are deemed to be financially responsible. 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 based on prices paid for inventory items. This valuation requires us to make judgments, based on currently available information, about the likely method of disposition, such as sales to individual customers and expected recoverable values.
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, 2020 or 2019.
Revenue Recognition	Revenue Recognition We adopted ASC Topic 606, Revenue from Contracts with Customers Identification of the contract, or contracts, with a customer A contract with a customer exists when (i) we enter into an enforceable contract with a customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services, (ii) the contract has commercial substance and, (iii) we determine that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. Identification of the performance obligations in the contract Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the goods or service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. When a contract includes multiple promised goods or services, we apply judgment to determine whether the promised goods or services are capable of being distinct and are distinct within the context of the contract. If these criteria are not met, the promised goods or services are accounted for as a combined performance obligation. Determination of the transaction price The transaction price is determined based on the consideration to which we will be entitled to receive in exchange for transferring goods or services to our customer. We estimate any variable consideration included in the transaction price using the expected value method that requires the use of significant estimates for discounts, cancellation periods, refunds and returns. Variable consideration is described in detail below. Allocation of the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative Stand-Alone Selling Price (“SSP,”) basis. We determine SSP based on the price at which the performance obligation would be sold separately. If the SSP is not observable, we estimate the SSP based on available information, including market conditions and any applicable internally approved pricing guidelines. Recognition of revenue when, or as, we satisfy a performance obligation We recognize contract revenue over time and product revenue at a point in time, when the related performance obligation is satisfied by transferring the promised goods or services to our customer. Contract revenue is recognized based on a cost-to-cost input method. Disaggregation of Revenue For the three months ended March 31, 2020 and 2019, total sales in the United States represent approximately 85% and 90% of total consolidated revenues, respectively. Sales to Italy represented 13% and less than 10% of consolidated revenues in the three months ended March 31, 2020 and 2019, respectively. No other geographical area accounted for more than 10% of total sales during the three months ended March 31, 2020 and 2019.
Principal Versus Agent Considerations	Principal versus Agent Considerations When another party is involved in providing goods or services to our customer, we apply the principal versus agent guidance in ASC Topic 606 to determine if we are the principal or an agent to the transaction. When we control the specified goods or services before they are transferred to our customer, we report revenue gross, as principal. If we do not control the goods or services before they are transferred to our customer, revenue is reported net of the fees paid to the other party, as agent. Our evaluation to determine if we control the goods or services within ASC Topic 606 includes the following indicators: We are primarily responsible for fulfilling the promise to provide the specified good or service. When we are primarily responsible for providing the goods and services, such as when the other party is acting on our behalf, we have indication that we are the principal to the transaction. We consider if we may terminate our relationship with the other party at any time without penalty or without permission from our customer. We have inventory risk before the specified good or service has been transferred to a customer or after transfer of control to the customer. We may commit to obtaining the services of another party with or without an existing contract with our customer. In these situations, we have risk of loss as principal for any amount due to the other party regardless of the amount(s) we earn as revenue from our customer. The entity has discretion in establishing the price for the specified good or service. We have discretion in establishing the price our customer pays for the specified goods or services.
Contract Assets	Contract Assets We capitalize costs and estimated earnings in excess of billings as a contract asset in current assets. At March 31, 2020 and 2019, contract assets totaled $0 and $16,486, respectively.
Contract Liabilities	Contract Liabilities Contract liabilities consist of customer advance payments and billings in excess of revenue recognized. We may receive payments from our customers in advance of completing our performance obligations. We record contract liabilities equal to the amount of payments received in excess of revenue recognized, Contract liabilities are recorded under the caption “contract liabilities” and are reported as current liabilities on our consolidated financial statements when the time to fulfill the performance obligations under terms of our contracts is less than one year. At March 31, 2020 and 2019, contract liabilities totaled $93,369 and $162,123, respectively.
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, 2020 and 2019 shipping and handling costs amounted to $37,611 and $16,521, 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, 2020 and 2019 were $16,652 and $15,805, 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, 2020 and 2019 were $2,594 and $146, 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. The Company adopted ASU No. 2017-09 in 2018; its adoption did not have a material impact on its consolidated financial statements. 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. 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, 2020 December 31, 2019 Stock options 554,859 455,502 Stock warrants 4,052,715 2,817,463 Total 4,607,574 3,272,952 Additionally, there are an unknown quantity of common stock equivalents that result from a potential conversion of stock appreciation rights (See Note 14). Net loss per share for common stock is as follows: Net (loss) income per common shares outstanding: Three Months Ended March 31, 2020 Three Months Ended Class A common stock $ (0.06 ) $ (0.02 ) Weighted average shares outstanding: Class A common stock 6,501,345 3,978,173 Total weighted average shares outstanding 6,501,345 3,978,173
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 (the “Contract services segment”).
Leases	Leases The Company adopted ASC 842 on January 1, 2019 using the modified retrospective basis and did not adjust comparative periods as permitted under Accounting Standards Update (“ASU”) 2018-11. ASC 842 supersedes nearly all existing lease accounting guidance under U.S. GAAP issued by the Financial Accounting Standards Board (“FASB”) including ASC Topic 840, Leases. ASC 842 requires that lessees recognize Right-of-Use (ROU) assets and lease liabilities calculated based on the present value of lease payments for all lease agreements with terms that are greater than twelve months. ASC 842 distinguishes leases as either a finance lease or an operating lease that affects how the leases are measured and presented in the statement of operations and statement of cash flows. For operating leases, we calculated ROU assets and lease liabilities based on the present value of the remaining lease payments as of the date of adoption using the IBR as of that date. On the date of adoption, operating lease liabilities and right-of-use assets totaled $400,327. We do not have finance leases as per the definition of ASC 842 as of March 31, 2019. The FASB issued practical expedients and accounting policy elections that the Company has applied as described below. Practical Expedients ASC 842 provides a package of three practical expedients that must be adopted together and applied to all lease agreements. The Company elected the package of practical expedients as follows for all leases: Whether expired or existing contracts contain leases under the new definition of a lease. Because the accounting for operating leases and service contracts was similar under ASC 840, there was no accounting reason to separate lease agreements from service contracts in order to account for them correctly. The Company reviewed existing service contracts to determine if the agreement contained an embedded lease to be accounted for on the balance sheet under ASC 842. Lease classification for expired or existing leases. Leases that were capital leases under ASC 840 are accounted for as financing leases under ASC 842 while leases that were operating leases under ASC 840 are accounted for as operating leases under ASC 842. Whether previously capitalized initial direct costs would meet the definition of initial direct costs under the new standard guidance. The definition of initial direct costs is more restrictive under ASC 842 than under ASC 840. Entities that do not elect the practical expedient are required to reassess capitalized initial direct costs under ASC 840 and record an equity adjustment for those that are not capitalizable under ASC 842. Accounting Policy Elections Lease Term The Company calculates the term for each lease agreement to include the noncancelable period specified in the agreement together with (1) the periods covered by options to extend the lease if the Company is reasonably certain to exercise that option, (2) periods covered by an option to terminate if the Company is reasonably certain not to exercise that option and (3) period covered by an option to extend (or not terminate) if controlled by the lessor. The assessment of whether the Company is reasonably certain to exercise an option to extend a lease requires significant judgement surrounding contract-based factors, asset-based factors, entity-based factors and market-based factors. Lease Payments Lease payments consist of the following payments (as applicable) related to the use of the underlying asset during the lease term: ● Fixed payments, including in substance fixed payments, less any lease incentives paid or payable to the lessee ● Variable lease payments that depend on an index or a rate, such as the Consumer Price Index or a market interest rate, initially measured using the index or rate at the commencement date of January 1, 2019. ● The exercise price of an option to purchase the underlying asset if the lessee is reasonably certain to exercise that option. ● Payments for penalties for terminating the lease if the lease term reflects the lessee exercising an option to terminate the lease. ● Fees paid by the lessee to the owners of a special-purpose entity for structuring the transaction ● For a lessee only, amounts probable of being owed by the lessee under residual value guarantees Incremental Borrowing Rate The ROU asset and related lease liabilities recorded under ASC 842 are calculated based on the present value of the lease payments using (1) the rate implicit in the lease or (2) the lessee’s IBR, defined as the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements Financial Instruments — Credit Losses (Topic 326) In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Measurement of expected credit losses is to be based on relevant forecasts that affect collectability. The scope of financial assets within the CECL methodology is broad and includes trade receivables from certain revenue transactions and certain off-balance sheet credit exposures. Different components of the guidance require modified retrospective or prospective adoption. ASU 2016-13 is effective for the annual reporting period beginning on or after December 15, 2020. The Company adopted this standard January 1, 2020 and there was no material impact. Except for our accounting policies for allowance for doubtful accounts as a result of adopting ASU 2016-13, there have been no changes to our significant accounting policies described in Note 2 to our Annual Report on Form 10-K for the year ended December 31, 2019, that have had a material impact on our Consolidated Financial Statements and related notes.
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, 2020
Accounting Policies [Abstract]
Schedule of Anti-dilutive Per Share Information	These common stock equivalents may be dilutive in the future . March 31, 2020 December 31, 2019 Stock options 554,859 455,502 Stock warrants 4,052,715 2,817,463 Total 4,607,574 3,272,952
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 March 31, 2020 Three Months Ended Class A common stock $ (0.06 ) $ (0.02 ) Weighted average shares outstanding: Class A common stock 6,501,345 3,978,173 Total weighted average shares outstanding 6,501,345 3,978,173

Correction of Immaterial Erro_2

Correction of Immaterial Errors (Tables)	3 Months Ended
	Mar. 31, 2020
Accounting Changes and Error Corrections [Abstract]
Schedule of Adjustments Cumulatively Impacted	The adjustments cumulatively impacted the following balances as of March 31, 2019: As Reported Adjustment As Corrected Accrued expenses $ 440,515 $ 22,000 a $ 462,515 Cost of revenues 576,212 (45,707 )b 530,505 Gross profit 181,649 (45,707 )b 227,356 Operating expenses 277,211 22,000 a 299,211 Other income 47,323 (45,707 )b 1,616 Net (loss) (48,239 ) (22,000 )a (70,239 ) References to above adjustments a. This adjustment accounts for the accrual of audit fees performed in the first quarter of 2019 not previously recorded in the period. During the 2019 year-end audit, various other reclassifications were made between operating expense accounts not impacting net losses and accordingly the Company has booked these in the proper periods in order to facilitate comparative analysis between the periods presented. b. This reclassification relates to the proper booking of sublease income in cost of revenues rather than other income.

Accounts Receivable (Tables)

Accounts Receivable (Tables)	3 Months Ended
	Mar. 31, 2020
Receivables [Abstract]
Schedule of Accounts Receivable	At March 31, 2020 and December 31, 2019, accounts receivable consisted of the following: March 31, 2020 December 31, 2019 Accounts receivable $ 211,980 $ 164,960 Less: allowance for doubtful accounts (13,670 ) (13,670 ) Accounts receivable, net $ 198,310 $ 151,290

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Schedule of Inventory	At March 31, 2020 and December 31, 2019, inventory consisted of the following: March 31, 2020 December 31, 2019 Raw materials $ 679,333 $ 663,932 Work-in-progress 17,441 - Finished goods 316,870 335,762 1,013,644 999,694 Less: reserve for obsolescence (589,638 ) (577,072 ) Inventory, net $ 424,006 $ 422,622

Operating Lease Right-Of-Use _2

Operating Lease Right-Of-Use Assets (Tables)	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Schedule of Supplemental Information to Leases	Balance Sheet Supplemental balance sheet information related to leases was as follows: March 31, 2020 December 31, 2019 Operating Leases Total operating lease ROU assets $ 220,029 $ 257,523 Operating lease liabilities (current) 104,035 131,835 Operating lease liabilities (noncurrent) 127,682 136,624 Total operating lease liabilities $ 231,717 $ 268,459 The average remaining lease term in months is 21.3 months with an average discount rate of 8.5%. Income Statement Supplemental income statement information related to leases was as follows: March 31, 2020 March 31, Operating Lease Costs Cost of product revenue $ 31,154 31,154 Cost of contract services 11,585 11,585 Variable lease costs 10,323 25,074 Sublease income (13,500 ) (37,707 ) Net operating lease cost $ 39,562 $ 39,562

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2020
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, 2019 455,502 $ 1.24 4.22 $ 18,000 Exercised - - - - Issued 100,000 $ 0.65 3.84 $ 120,000 Expired 643 Outstanding March 31, 2020 554,859 $ 1.06 3.96 $ 705,000 Exercisable March 31, 2020 129,859 $ 2.67 3.91 $ 162,500

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Schedule of Segment Information	Segment information available with respect to these reportable business segments for the three months ended March 31, 2020 and 2019 was as follows: Three Months Ended March 31, 2020 2019 Revenues: Product segment $ 241,717 $ 456,868 Contract services segment 206,457 300,993 Total segment and consolidated revenues $ 448,174 $ 757,861 Cost of revenues: Products $ 222,818 $ 197,957 Contract services segment 166,899 332,548 Total segment and consolidated cost of revenues $ 389,717 $ 530,505 Gross profit (loss): Product segment $ 18,899 $ 258,911 Contract services segment 39,558 (31,355 ) Total segment and consolidated gross profit $ 58,457 $ 227,356 Gross margin: Product segment 7.8 % 56.7 % Contract services segment 19.2 % -10.5 % Total gross margin 13.0 % 30.0 % Segment operating expenses: Product segment 242,240 155,190 Contract services segment 45,980 65,031 Total segment operating expenses 288,220 220,221 Income (loss) from operations: Product segment $ (223,341 ) $ 103,721 Contract services segment (6,422 ) (96,586 ) Total segment income (loss) (229,763 ) 7,135 Unallocated costs (145,944 ) (78,990 ) Total consolidated income (loss) from operations $ (375,707 ) $ (71,855 ) Depreciation and amortization: Product segment $ (5,260 ) $ 12,444 Contract services segment 419 - Total segment depreciation and amortization (4,841 ) 12,444 Unallocated depreciation - - Total consolidated depreciation and amortization $ (4,841 ) $ 12,444 Capital additions: Product segment $ 1,475 $ - Contract services segment - - Total consolidated capital additions $ 1,475 $ - March 31, 2020 December 31, 2019 Segment total assets: Product segment $ 1,410,252 $ 1,132,858 Contract services segment 223,819 176,568 Corporate 64,192 10,661 Total consolidated total assets $ 1,698,263 $ 1,320,087

Organization and Basis of Pre_2

Organization and Basis of Presentation (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Operating income (loss)	$ (375,707)	$ (71,855)	$ 1,031,083
Net cash used by operations	(467,889)	$ 4,651	878,668
Accumulated deficit	(8,067,360)		$ (7,689,545)
Working capital deficit	$ 162,523

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details Narrative)	3 Months Ended		12 Months Ended
	Mar. 31, 2020USD ($)Segment	Mar. 31, 2019USD ($)Segment	Dec. 31, 2019USD ($)	Jan. 02, 2019USD ($)
Impairment of long-lived assets
Percentage of sales		10.00%
Contract assets	0	$ 16,486
Contract liabilities	93,369	162,123	$ 162,123
Research and development expense	16,652	15,805
Advertising expense	2,594	$ 146
Income tax interest and penalties
Reportable segments | Segment	2	2
Operating lease liabilities	$ 231,717		268,459
Operating lease right of use assets	220,029		$ 257,523
Shipping and Handling [Member]
Shipping and handle costs	$ 37,611	$ 16,521
Sales Revenue, Net [Member] | United States [Member]
Percentage of sales	85.00%	90.00%
Sales Revenue, Net [Member] | Italy [Member]
Percentage of sales	13.00%	10.00%
Sales Revenue, Net [Member] | No Other Geographical Area [Member]
Percentage of sales	10.00%	10.00%
ASC 842 [Member]
Operating lease liabilities				$ 400,327
Operating lease right of use assets				$ 400,327
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 Anti-dilutive Per Share Information (Details) - shares	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Total	4,607,574	3,272,952
Stock Options [Member]
Total	554,859	455,502
Stock Warrants [Member]
Total	4,052,715	2,817,463

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Schedule of Reconciliation of Basic and Diluted Net Income Loss (Details) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Total weighted average shares outstanding	6,501,345	3,978,173
Class A Common Stock [Member]
Net (loss) income per common shares outstanding	$ (0.06)	$ (0.02)
Total weighted average shares outstanding	6,501,345	3,978,173

Correction of Immaterial Erro_3

Correction of Immaterial Errors - Schedule of Adjustments Cumulatively Impacted (Details) - USD ($)		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Accrued expenses			$ 460,515
Cost of revenues		$ 389,717	530,505
Gross profit		58,457	227,356
Operating expenses		434,164	299,211
Other income		(2,108)	1,616
Net (loss)		$ (377,815)	(70,239)
As Reported [Member]
Accrued expenses			440,515
Cost of revenues			576,212
Gross profit			181,649
Operating expenses			277,211
Other income			47,323
Net (loss)			(48,239)
Adjustment [Member]
Accrued expenses	[1]		22,000
Cost of revenues	[2]		(45,707)
Gross profit	[2]		(45,707)
Operating expenses	[1]		22,000
Other income	[2]		(45,707)
Net (loss)	[1]		$ (22,000)
[1]	This adjustment accounts for the accrual of audit fees performed in the first quarter of 2019 not previously recorded in the period. During the 2019 year-end audit, various other reclassifications were made between operating expense accounts not impacting net losses and accordingly the Company has booked these in the proper periods in order to facilitate comparative analysis between the periods presented.
[2]	his reclassification relates to the proper booking of sublease income in cost of revenues rather than other income.

Accounts Receivable - Schedule

Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Receivables [Abstract]
Accounts receivable	$ 211,980	$ 164,960
Less: allowance for doubtful accounts	(13,670)	(13,670)
Accounts receivable, net	$ 198,310	$ 151,290

Inventory - Schedule of Invento

Inventory - Schedule of Inventory (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 679,333	$ 663,932
Work-in-progress	17,441
Finished goods	316,870	335,762
Inventory, gross	1,013,644	999,694
Less: reserve for obsolescence	(589,638)	(577,072)
Inventory, net	$ 424,006	$ 422,622

Property and Equipment (Details

Property and Equipment (Details Narrative)	3 Months Ended
	Mar. 31, 2020
Minimum [Member]
Property plant and equipment useful life	3 years
Maximum [Member]
Property plant and equipment useful life	10 years

Operating Lease Right-Of-Use _3

Operating Lease Right-Of-Use Assets (Details Narrative)	Dec. 10, 2018USD ($)ft²	Sep. 20, 2017USD ($)ft²	Jun. 21, 2020USD ($)	Mar. 31, 2020	Jun. 21, 2019ft²
Lease office space, area | ft²					1,200
Operating lease, description			Extended through December 31, 2020.
Operating lease payments, monthly | $			$ 1,529
Operating lease, average remaining lease term				1 year 9 months 11 days
Operating lease, average discount rate				8.50%
Three-Year Lease Agreement [Member]
Operating lease term		3 years
Lease office space, area | ft²		22,172
Operating lease, description		Beginning September 20, 2017 and ending September 20, 2020.
Operating lease payments, monthly | $		$ 8,688
Five-Year Lease Agreement [Member]
Operating lease term	5 years
Lease office space, area | ft²	3,742
Operating lease, description	Beginning January 2019 and ending February 29, 2024.
Operating lease payments, monthly | $	$ 3,472
Increasing percentage in monthly payments	3.00%

Operating Lease Right-Of-Use _4

Operating Lease Right-Of-Use Assets - Schedule of Supplemental Information to Leases (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Leases [Abstract]
Total operating lease ROU assets	$ 220,029		$ 257,523
Operating lease liabilities (current)	104,035		131,835
Operating lease liabilities (noncurrent)	127,682		136,624
Total operating lease liabilities	231,717		$ 268,459
Cost of product revenue	31,154	$ 31,154
Cost of contract services	11,585	11,585
Variable lease costs	10,323	25,074
Sublease income	(13,500)	(37,707)
Net operating lease cost	$ 39,562	$ 39,562

Bank Loans and Lines of Revol_2

Bank Loans and Lines of Revolving Credit Facility (Details Narrative) - USD ($)	Jan. 31, 2019	Dec. 31, 2019	Apr. 30, 2014	Mar. 31, 2020	Mar. 31, 2019
Payments of line of credit					$ 348,369
Accrued interest fees		$ 1,000
Lender [Member]
Payments of line of credit	$ 172,101
Cash collateral account	85,000
Outstanding principal amount	234,841
Accrued interest fees	$ 22,260
Revolving Credit Line Agreement [Member] | Mackinac Commercial Credit, LLC [Member]
Revolving credit facility			$ 1,500,000
Revolving Credit Line Agreement [Member] | Mackinac Commercial Credit, LLC [Member] | Prime Rate [Member]
Percentage of effective interest rate			3.00%

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)	Jun. 18, 2019	Feb. 10, 2015	Dec. 31, 2019	Jan. 31, 2017	Mar. 31, 2020	Jul. 31, 2019	Nov. 30, 2015	Jun. 30, 2015
Debt installments equal monthly payments			In July 2019, we settled with one holder who agreed to accept aggregate payments of $10,000 in lieu of $14,000, of which $6,000 was paid in 2019 and the balance of $4,000 due in monthly payments of $1,000 during the first four months of 2020.
Monthly payment			$ 1,000
Current portion of notes payable			52,641		$ 49,641	$ 10,000
Notes payable, long term portion			122,170		111,792	$ 14,000
Repayment of notes payable			6,000
Debt principal and interest payable amount			4,000
Debt instrument, principal				$ 17,425
Debt maturity year				Due in January 2027
Five Notes [Member]
Notes payable, long term portion					54,883
Debt principal and interest payable amount					55,883
Equipment Note [Member]
Debt installments payments ending date	Apr. 10, 2022
Debt instrument interest rate	6.29%
Monthly payment	$ 4,053
Current portion of notes payable			48,641		48,641
Notes payable, long term portion			$ 67,285		$ 56,910
Subsidiary Nano Magic LLC [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 of principal and interest.
Debt installments payments ending date		Jun. 10, 2020
Nanofilm Ltd [Member] | Equipment Note [Member]
Debt instrument interest rate		4.35%
Four Employees [Member] | Four Promissory Note Agreements [Member]
Accrued and unpaid deferred salary							$ 51,808	$ 51,808

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Accounts payable and advances from related parties	$ 140,000		$ 140,000
Ron Berman [Member]
Legal and consulting fees	90,000
Scott Rickert [Member]
Legal and consulting fees	3,000	$ 3,000
Salary		1,000
Jeanne Rickert [Member]
Legal and consulting fees	3,000	3,000
Salary		1,000
Tom J. Berman [Member]
Legal and consulting fees		17,000
Salary	45,000
Ronald J. Berman [Member]
Legal and consulting fees		$ 12,760
Mr. Rickert and Ms. Rickert [Member]
Accounts payable and advances from related parties				$ 159,887
Accrued payroll	$ 16,000		$ 16,000

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	Mar. 26, 2020	Mar. 24, 2020	Feb. 24, 2020	Feb. 12, 2020	Jan. 31, 2020	Jan. 22, 2020	Oct. 15, 2018	May 23, 2017	Jan. 26, 2016	Dec. 11, 2015	Mar. 31, 2020	Dec. 31, 2019	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									100,000		100,000	100,000
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 shares issued for services, value											$ 12,000
Number of shares sold, shares	36,765
Sale of stock, price per share	$ .65
Proceeds from private placement	$ 23,897
Warrants issued	$ 36,758
Warrants issued to purchase the additional shares	36,780
Warrant exercise price	$ 1.50
Warrant expiration years	4 years
Proceeds from warrants exercise	$ 1,103
Stock Subscription Payable											$ 181,533
Number of stock options outstanding											554,859	455,502
Number of stock options granted											100,000
Number of stock options expired											643
Number of stock options exercised
Stock Warrants [Member]
Warrant exercise price											$ 1.50
Warrants outstanding and exercisable warrants											4,052,715
Warrants, weighted average remaining contractual term											3 years 4 months 9 days
Intrinsic value for warrants
2015 Equity Incentive Plan [Member]
Number of stock options granted											100,000
Number of stock options expired											643
Reserved shares of common stock													111,111
Employees [Member] | 2015 Equity Incentive Plan [Member]
Number of common stock issued during period, shares												102,500
Accrued Salaries												$ 66,615
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
Stock Subscription Payable, shares									279,283
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 stock options outstanding											554,859
Number of shares converted								262,631
Number of common stock issued during period, shares							1,436,052
Class A Common Stock [Member] | 2015 Equity Incentive Plan [Member]
Number of stock options granted					10,000
Class A Common Stock [Member] | Subscription Payable [Member]
Number of shares sold, shares											956,013
Warrants issued											$ 1,235,252
Warrants issued to purchase the additional shares											37,058
Number of additional shares issued											621,409
Class A Common Stock [Member] | Subscription Not Yet Issued [Member]
Number of shares sold, shares											279,283
Class A Common Stock [Member] | PEN Comeback, LLC [Member]
Number of shares sold, shares		551,600	205,883			198,530
Sale of stock, price per share		$ 0.65	$ 0.65			$ 0.65
Proceeds from private placement		$ 516,177	$ 133,824			$ 129,044
Warrants issued		$ 794,110	$ 205,868			$ 198,516
Warrants issued to purchase the additional shares		794,110	198,516			198,516
Warrant exercise price		$ 1.50	$ 1.50			$ 1.50
Warrant expiration years		4 years	4 years			4 years
Proceeds from warrants exercise		$ 23,823	$ 6,176			$ 5,955
Number of additional shares issued		242,518
Class A Common Stock [Member] | Directors [Member]
Number of shares issued for services				21,048
Shares issued price per share				$ 0.57
Number of shares issued for services, value				$ 12,000
Class A Common Stock [Member] | Chief Executive Officer [Member]
Number of shares sold, shares								262,631
Number of shares sold, value								$ 100,000
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 Nano Magic 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.
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
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 Nano Magic 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 Nano Magic 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, 2020USD ($)$ / sharesshares
Equity [Abstract]
Number of Options, Outstanding, Beginning balance	455,502
Number of Options, Exercised
Number of Options, Issued	100,000
Number of Options, Expired	643
Number of Options, Outstanding, Ending balance	554,859
Number of Options, Exercisable, Ending balance	129,859
Weighted Average Exercise Price, Outstanding, Beginning balance | $ / shares	$ 1.24
Weighted Average Exercise Price, Exercised | $ / shares
Weighted Average Exercise Price, Issued | $ / shares	0.65
Weighted Average Exercise Price, Outstanding, Ending balance | $ / shares	1.06
Weighted Average Exercise Price, Exercisable Ending balance | $ / shares	$ 2.67
Weighted Average Remaining Contractual Terms (Years), Outstanding, Beginning	4 years 2 months 19 days
Weighted Average Remaining Contractual Terms (Years), Issued	3 years 10 months 3 days
Weighted Average Remaining Contractual Terms (Years), Outstanding, Ending	3 years 11 months 15 days
Weighted Average Remaining Contractual Term (Years), Exercisable	3 years 10 months 28 days
Aggregate Intrinsic Value, Share Outstanding, Beginning balance | $	$ 18,000
Aggregate Intrinsic Value, Exercised | $
Aggregate Intrinsic Value, Issued | $	120,000
Aggregate Intrinsic Value, Share Outstanding, Ending balance | $	705,000
Aggregate Intrinsic Value, Share Exercisable | $	$ 162,500

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative)	3 Months Ended
	Mar. 31, 2020USD ($)
Commitments and Contingencies Disclosure [Abstract]
Litigation settlement

Concentrations (Details Narrati

Concentrations (Details Narrative)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Concentration risk percentage		10.00%
Product Revenues [Member] | 2 Customers [Member]
Concentration risk percentage	63.00%
Product Revenues [Member] | 1 Different Customers [Member]
Concentration risk percentage	17.00%
Product Revenues [Member] | 1 Vendor [Member]
Concentration risk percentage	21.00%
Product Revenues [Member] | 2 Different Vendors [Member]
Concentration risk percentage	68.00%
Contract Revenues [Member] | 2 Customers [Member]
Concentration risk percentage	100.00%	100.00%
United States [Member] | Sales Revenue, Net [Member]
Concentration risk percentage	85.00%	90.00%
Italy [Member] | Sales Revenue, Net [Member]
Concentration risk percentage	13.00%	10.00%
No Other Geographical Area [Member] | Sales Revenue, Net [Member]
Concentration risk percentage	10.00%	10.00%

Stock Appreciation Plan (Detail

Stock Appreciation Plan (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Accrued redemption value associated with stock appreciation rights amount	$ 42,823	$ 42,823
Stock Appreciation Rights (SARs) [Member]
Maximum number of stock appreciation granted by board	1,000,000
Common shares redemption, description	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.

Segment Reporting (Details Narr

Segment Reporting (Details Narrative) - Segment	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting [Abstract]
Number of reportable segments	2	2

Segment Reporting - Schedule of

Segment Reporting - Schedule of Segment Information (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Total segment and consolidated revenues	$ 448,174	$ 757,861
Total segment and consolidated cost of revenues	389,717	530,505
Total segment and consolidated gross profit	$ 58,457	$ 227,356
Total gross margin	13.00%	30.00%
Total segment operating expenses	$ 288,220	$ 220,221
Total segment income (loss)	(229,763)	7,135
Unallocated costs	(145,944)	(78,990)
Total consolidated income (loss) from operations	(375,707)	(71,855)	$ 1,031,083
Total segment depreciation and amortization	(4,841)	12,444
Unallocated depreciation
Total consolidated depreciation and amortization	(4,841)	12,444
Total segment capital additions
Total consolidated capital additions	1,475
Total consolidated total assets	1,698,263		1,320,087
Product Segment [Member]
Total segment and consolidated revenues	241,717	456,868
Total segment and consolidated cost of revenues	222,818	197,957
Total segment and consolidated gross profit	$ 18,899	$ 258,911
Total gross margin	7.80%	56.70%
Total segment operating expenses	$ 242,240	$ 155,190
Total segment income (loss)	(223,341)	103,721
Total segment depreciation and amortization	(5,260)	12,444
Total segment capital additions	1,475
Total consolidated total assets	1,410,252		1,132,858
Contract Services Segment [Member]
Total segment and consolidated revenues	206,457	300,993
Total segment and consolidated cost of revenues	166,899	332,548
Total segment and consolidated gross profit	$ 39,558	$ (31,355)
Total gross margin	19.20%	(10.50%)
Total segment operating expenses	$ 45,980	$ 65,031
Total segment income (loss)	(6,422)	(96,586)
Total segment depreciation and amortization	419
Total segment capital additions
Total consolidated total assets	223,819		176,568
Corporate [Member]
Total consolidated total assets	$ 64,192		$ 10,661

Subsequent Events (Details Narr

Subsequent Events (Details Narrative)	May 31, 2020USD ($)ft²$ / sharesshares	May 08, 2020USD ($)	Jun. 21, 2020	Jun. 10, 2020shares	Mar. 31, 2020shares	Mar. 26, 2020$ / sharesshares	Dec. 31, 2019shares	Jun. 21, 2019ft²	Jan. 26, 2016shares
Area of land | ft²								1,200
Lease description			Extended through December 31, 2020.
Number of warrants purchase						36,780
Warrant exercise price | $ / shares						$ 1.50
Class A Common Stock [Member]
Common stock, shares authorized					7,200,000		7,200,000		7,200,000
Subsequent Event [Member]
Lease description	The new lease has a term of seven years with a renewal option at the end of the initial term for an additional 3-year term, and a second renewal option thereafter for an additional 5-year term. As the sole tenant, we are responsible for all taxes, ordinary maintenance, snow removal and other ordinary operating expenses. Rent is $6.50 per square foot, increasing by $0.25 per year. We also have the right for during the first three years to buy a up to a 49% interest in Magic Research LLC for a price equal to 49% of the contributions received from other members.
Subsequent Event [Member] | Class A Common Stock [Member]
Number of warrants purchase	410,000
Warrant exercise price | $ / shares	$ 1.50
Common stock, shares authorized				30,000,000
Subsequent Event [Member] | Other Members [Member]
Percentage on rights to purchase maximum interest	49.00%
Subsequent Event [Member] | Ron Berman [Member]
Ownership interest	2.08%
Subsequent Event [Member] | Tom Berman [Member]
Ownership interest	2.08%
Subsequent Event [Member] | Magic Research LLC [Member]
Percentage on rights to purchase maximum interest	49.00%
Compensation per year | $	$ 10,000
Subsequent Event [Member] | Madison Heights, Michigan [Member]
Area of land | ft²	29,220
Lease expiration date, description	Expires in September 2020.
Subsequent Event [Member] | Paycheck Protection Program Loan [Member]
Loan obtained | $		$ 130,000