Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2015	May 04, 2015 Common Class A [Member]	May 04, 2015 Class B Common Stock [Member]	May 04, 2015 Class Z Commmon Stock [Member]
Entity Registrant Name	PEN INC.
Entity Central Index Key	0000891417
Document Type	10-Q
Document Period End Date	Mar. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		243,962,531	251,064,939	42,273,470
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash	$ 173,733	$ 464,735
Accounts receivable, net	1,295,092	1,032,995
Accounts receivable - related party	11,045	38,246
Inventory	1,372,683	1,557,100
Prepaid expenses and other current assets	246,976	200,079
Total Current Assets	3,099,529	3,293,155
OTHER ASSETS:
Property, plant and equipment, net	830,417	850,847
Intangible assets, net	226,516	239,338
Other assets	40,090	41,841
Total Other Assets	1,097,023	1,132,026
TOTAL ASSETS	4,196,552	4,425,181
CURRENT LIABILITIES:
Bank revolving line of credit	627,282	773,344
Current portion of note payable	27,543
Convertible notes payable, net		13,333
Accounts payable	1,343,246	1,426,465
Accrued expenses	819,123	964,587
Deferred revenue	30,053	28,790
Total Current Liabilities	2,847,247	3,206,519
LONG-TERM LIABILITIES:
Note payable, net of current portion	137,715
Total Long-term Liabilities	137,715
Total Liabilities	2,984,962	3,206,519
STOCKHOLDERS' EQUITY:
Preferred stock, $.0001 par value, 20,000,000 shares authorized; No shares issued and outstanding
Additional paid-in capital	4,818,368	4,640,278
Accumulated deficit	(3,660,311)	(3,474,919)
Total Stockholders' Equity	1,211,590	1,218,662
Total Liabilities and Stockholders' Equity	4,196,552	4,425,181
Common Class A [Member]
STOCKHOLDERS' EQUITY:
Common stock value	23,704	23,474
Class B Common Stock [Member]
STOCKHOLDERS' EQUITY:
Common stock value	25,102	25,102
Class Z Commmon Stock [Member]
STOCKHOLDERS' EQUITY:
Common stock value	$ 4,727	$ 4,727

Consolidated Balance Sheets (Parenthetical)

Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.0001
Common stock, shares authorized	1,800,000,000
Common Class A [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	1,300,000,000	1,300,000,000
Common stock, shares issued	237,042,916	234,744,655
Common stock, shares outstanding	237,042,916	234,744,655
Class B Common Stock [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	251,017,063	251,017,063
Common stock, shares outstanding	251,017,063	251,017,063
Class Z Commmon Stock [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	47,273,470	47,273,470
Common stock, shares outstanding	47,273,470	47,273,470

Consolidated Statements of Operations (Unaudited)

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
REVENUES:
Products (including related party sales of $44,827 and $82,685 for the three months ended March 31, 2015 and 2014, respectively)	$ 2,437,314	$ 2,771,411
Research and development services	630,427
Total Revenues	3,067,741	2,771,411
COST OF REVENUES:
Products	1,406,719	1,450,141
Research and development services	508,384
Total Cost of Revenues	1,915,103	1,450,141
GROSS PROFIT	1,152,638	1,321,270
OPERATING EXPENSES:
Selling and marketing expenses	82,209	73,517
Salaries, wages and contract labor	587,830	433,352
Research and development	195,202	150,735
Professional fees	180,552	171,472
General and administrative expenses	266,395	166,505
Total Operating Expenses	1,312,188	995,581
(LOSS) INCOME FROM OPERATIONS	(159,550)	325,689
OTHER INCOME (EXPENSES):
Interest income
Interest expenses	(27,729)	(7,333)
Other income, net	6,831	13
Total Other Income/(Expense)	(20,898)	(7,320)
(Loss) Income before income taxes	(180,448)	318,369
Income tax benefit (expense)	(4,944)	(47,608)
NET (LOSS) INCOME	(185,392)	270,761
Net income attributable to former non-controlling interest		(39,306)
NET (LOSS) INCOME ATTRIBUTABLE TO PEN INC.	$ (185,392)	$ 231,455
NET (LOSS) INCOME PER COMMON SHARE:
Basic	$ 0.00	$ 0.00
Diluted	$ 0.00	$ 0.00
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic	534,216,610	325,641,762
Diluted	534,216,610	325,641,762

Consolidated Statements of Operations (Unaudited) (Parenthetical)

Consolidated Statements of Operations (Unaudited) (Parenthetical) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Sales revenue from related parties	$ 44,827	$ 82,685

Consolidated Statements of Cash Flows (Unaudited)

Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$ (185,392)	$ 270,761
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Change in inventory obsolescence reserve	(6,650)	63,729
Bad debt expense
Depreciation and amortization expense	63,563	42,183
Amortization of deferred lease incentives	(3,208)	(3,208)
Change in value of stock appreciation rights
Change in value of equity credits
Stock-based compensation	41,310
Change in operating assets and liabilities:
Accounts receivable	(262,097)	(103,507)
Accounts receivable related party	27,201	(18,293)
Inventory	191,067	33,474
Prepaid expenses and other assets	(45,146)	(24,126)
Accounts payable	(83,219)	(377,222)
Accrued expenses	(18,579)	10,918
Income taxes payable		47,608
Deferred revenue	1,263
NET CASH USED IN OPERATING ACTIVITIES	(279,887)	(57,683)
CASH FLOWS FROM INVESTING ACTIVITIES
Cash acquired in acquisition
Purchases of property and equipment	(30,311)	(2,514)
NET CASH USED IN INVESTING ACTIVITIES	(30,311)	(2,514)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank line of credit	2,067,500	200,000
Repayment of bank lines of credit	(2,213,562)
Proceeds from bank loan	165,258
Repayment of bank loans		(10,000)
NET CASH USED IN FINANCING ACTIVITIES	19,196	190,000
NET (DECREASE) INCREASE IN CASH	(291,002)	129,803
CASH, beginning of year	464,735	100,367
CASH, end of period	173,733	230,170
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest	27,655	4,798
Income taxes	4,944
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Common stock issued for convertible notes and accrued interest	13,725
Common stock issued for accrued expenses	$ 123,285

Organization and Basis of Presentation

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Organization and Basis of Presentation

NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION

Organization

PEN Inc. (“we”, “us”, “our”, “PEN” or the “Company”), a Delaware company, develops and sells a portfolio of nano-layer coatings, nano-based cleaners, and nano-composite products based on its proprietary technology and performs nanotechnology research and development focused on generating revenues through performing research services.

Through our wholly-owned subsidiary, Nanofilm, Ltd., we develop, manufacture and sell products based on technology which permits the fabrication of oriented, ultra-thin films of organic or polymeric crystals, and also produces a line of personal lens cleaners and accessories. These products are marketed internationally primarily to customers in the eyeglass industry.

Through our wholly-owned subsidiary, Applied Nanotech, Inc., we primarily conduct research and development services for governmental and private customers.

On August 27, 2014 (the “Effective Date”), Applied Nanotech Holdings, Inc., a Texas corporation (“Applied Nanotech”), together with its wholly-owned direct subsidiaries, PEN and NanoMerger Sub Inc., a Delaware corporation (“Merger Sub”), completed a combination (the “Combination”) with NanoHolding Inc. (“Nano”). The Combination included three parts: (i) a redomestication of Applied Nanotech from Texas to Delaware by way of Applied Nanotech’s merger into PEN, (ii) a subsequent merger of Nano into Merger Sub, with Merger Sub (n/k/a Nanofilm Holdings Inc.) the surviving entity, and (iii) a subsequent exchange of 100% of Carl Zeiss, Inc.’s interest in Nanofilm Ltd., Nano’s wholly-owned subsidiary (“Nanofilm”), for stock in PEN. Nanofilm is a company formed under the laws of the Ohio on June 14, 1995 as a limited liability company.

Immediately prior to the effective date, outstanding convertible notes of Applied Nanotech were converted into common stock, for which an aggregate of 32,379,288 shares of PEN Class A common stock were issued, and 11,164,620 shares of PEN Class A common stock were issued to directors of the Company in payment of accrued fees. PEN also issued 1,500,000 shares of Class A common stock in satisfaction of a note held by the former CFO of the Company. Accordingly, immediately prior the Effective Date, the Company had 203,363,059 PEN Class A shares outstanding.

On the Effective Date, the merger was accounted for as a reverse merger and recapitalization of Nano (See Note 3). On the Effective Date, the pre-merger shares of Nano were exchanged for an aggregate of 27,670,187 shares of Class A common stock of PEN and 250,698,105 shares of Class B common stock of PEN. Additionally, the Class Z member interests of Nanofilm (the non-controlling interests) were exchanged for 47,273,470 Class Z shares of PEN. The effect of these exchanges is reflected retroactively in the accompanying consolidated financial statements for all periods presented.

On December 17, 2014, the Company formed a new wholly-owned subsidiary, PEN Technology LLC, a Florida limited liability company and on December 19, 2014, Nanofilm Holdings Inc. was merged into PEN.

Basis of Presentation

The Company’s consolidated financial statements include the financial statements of its wholly-owned subsidiaries, Applied Nanotech, Inc., EZ Diagnostix, Inc. (inactive), PEN Technology LLC, and Nanofilm, Ltd. On December 19, 2014, EZ Diagnostix was merged into Applied Nanotech, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation.

The consolidated financial statements for the three months ended March 31, 2015 and 2014 have been prepared by us without audit pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, all adjustments necessary to present fairly our financial position, results of operations, and cash flows as of March 31, 2015 and 2014, and for the periods then ended, have been made. Those adjustments consist of normal and recurring adjustments.

The Company’s historical results of operations include an allocation of the net income of Nanofilm, Ltd. to the 14.5% non-controlling interest of Nanofilm, Ltd. up to the effective date of the merger when the holder of that non-controlling interest exchanged its membership interest for shares of PEN Inc. resulting in Nanofilm, Ltd. becoming a wholly-owned subsidiary of the Company.

Certain information and note disclosures normally included in our annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2014 and footnotes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on April 10, 2015.

The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for the full year.

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2015

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 accounting principles generally accepted in the United States 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, 2015 and 2014 include estimates for 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, the fair value of assets acquired and liabilities assumed in the merger, 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 FASB’s 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 three instruments at fair value using level 3 valuation.

	At March 31, 2015						At December 31, 2014
Description	Level 1		Level 2		Level 3		Level 1		Level 2		Level 2
Intangible assets		-		-	$	226,516		-		-	$	239,338
Stock Appreciation Rights Plan A		-		-	$	46,146		-		-	$	46,146
Equity Credits Issued		-		-	$	25,178		-		-	$	25,178

A rollforward of the level 3 valuation of these three financial instruments is as follows:

	Intangible Assets			Stock Appreciation Rights Plan A		Equity Credits Issued
Balance at December 31, 2014	$	239,338		$	46,146	$	25,178
Amortization of intangible assets		(12,822	)		-		-
Change in fair value included in net loss		-			-		-
Balance at March 31, 2015	$	226,516		$	46,146	$	25,178

ASC 825-10 “Financial Instruments”, allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable, unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. The Company did not elect to apply the fair value option to any outstanding instruments.

Cash and cash equivalents

For purposes of the consolidated statements of cash flows, the Company considers all highly liquid instruments with a maturity of three months or less at the purchase date and money market accounts to be cash equivalents.

Accounts receivable

The Company recognizes an allowance for losses on accounts receivable in an amount equal to the estimated probable losses net of recoveries. The allowance is based on an analysis of historical bad debt experience, current receivables aging, and expected future write-offs, as well as an assessment of specific identifiable customer accounts considered at risk or uncollectible. The expense associated with the allowance for doubtful accounts is recognized as general and administrative expense.

Inventory

Inventory is stated at the lower of cost or market. Cost is determined using the first-in, first-out (FIFO) method.

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 income 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.

Intangible assets

Intangible assets, consisting of patents, patent pending technologies and other technologies being amortized on a straight-line method over the estimated useful life of 5 years.

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, 2015 and 2014.

Revenue recognition

Pursuant to the guidance of ASC Topic 605, the Company recognizes sales when persuasive evidence of an arrangement exists, delivery has occurred or services have been provided, the purchase price is fixed or determinable and collectability is reasonably assured.

Types of Revenue:

	●	Net product sales by our subsidiary Nanofilm.

	●	Reimbursements under agreements to perform research and development for government agencies and others by our subsidiary, Applied Nanotech. We do not perform research contracts that are contingent upon successful results. Larger projects are sometimes broken down in phases to allow the customer to determine at the end of each phase if they wish to move to the next phase. The agreements with federal government agencies generally provide that, upon completion of a technology development program, the funding agency is granted a royalty-free license to use any technology developed during the course of the program for its own purposes, but not any preexisting technology that we use in connection with the program. We retain all other rights to use, develop, and commercialize the technology. Agreements with nongovernmental entities generally allow the entity the first opportunity to license the technology from us upon completion of the project.

	●	Product sales and other miscellaneous revenues from our subsidiary, Applied Nanotech such as the sale of conductive inks and thermal management materials.

Revenue Recognition Criteria:

	●	Net product sales by our subsidiary Nano, are recognized when the product is shipped to the customer and title is transferred.

	●	Revenue from research and development government contracts is recognized when it is earned pursuant to the terms of the contract. These projects are usually billed monthly based on costs, hours, or some other measure of activity during the month and revenue is recognized as services are provided. If there is substantive acceptance terms then revenue will not be recognized until acceptance occurs. The recognition of revenue may not correspond with the billings allowable under the contract. To the extent that billings exceed revenue earned, a portion of the revenue is deferred until such time as it is earned.

	●	Revenue from research and development non-governmental contracts is recognized when it is earned pursuant to the terms of the contract. Each contract is unique and tailored to the needs of the customer and goals of the project. Some contracts may call for a monthly payment for a fixed period of time. Other contracts may be for a fixed dollar amount with an unspecified time period, although there is frequently a targeted completion date. These contracts generally involve some sort of up-front payment. Some contracts may call for the delivery of samples, or may call for the transfer of equipment or other items developed during the project to the customer. These projects are usually billed monthly based on costs, hours, or some other measure of activity during the month and revenue is recognized as services are provided. If there is substantive acceptance terms then revenue will not be recognized until acceptance occurs.

	●	Revenue from other product sales is recognized at the time the product shipped. The Company’s subsidiary Applied Nanotech’s primary business is research and development and the licensing of its technology, not the sale of products. Product sales are generally insignificant in number, and are generally limited to the sale of conductive inks, thermal management materials, samples, proofs of concepts, prototypes, or other items resulting from its research.

	●	Other miscellaneous revenue is recognized as deemed appropriate given the facts of the situation and is generally not material.

Sales incentives and consideration paid to customers

The Company accounts for certain promotional costs such as sales incentives and cooperative advertising as a reduction of sales. For the three months ended March 31, 2015 and 2014, the Company recorded approximately $55,468 and $30,498, respectively, as a reduction of sales related to these costs.

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 charged to customers are included in sales. For the three months ended March 31, 2015 and 2014, shipping and handling costs incurred for product shipped to customers are included in cost of sales and amounted to $51,638 and $52,985, 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. For the three months ended March 31, 2015 and 2014, research and development costs incurred in the development of the Company’s products were $195,202 and $150,735, respectively, and are included in operating expenses on the accompanying 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. For the three months ended March 31, 2015 and 2014, advertising costs charged to operations were $17,550 and $38,331, respectively and are included in sales and marketing on the consolidated accompanying statements of operations. These advertising expenses do not in 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.

Prior to the February 24, 2014, the Company’s subsidiary, Nanofilm, operated as a limited liability company and passed all income and loss to each member based on their proportionate interest in Nanofilm. After February 24, 2014, the date on which Nanofilm reorganized by creating a corporation parent, NanoHolding Inc., approximately 85.5% of the net income (loss) of Nanofilm, was passed through to the majority member, NanoHolding Inc. After the effective date of the merger, 100% of the net income (loss) of Nanofilm is passed through to the Company.

The Company follows the accounting guidance for uncertainty in income taxes using the provisions of Accounting Standards Codification (ASC) 740 “Income Taxes”. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. As of March 31, 2015 and December 31, 2014, the Company had no uncertain tax positions that qualify for either recognition or disclosure in the financial statements. Tax years that remain subject to examination are the years ending on and after December 31, 2010. The Company recognizes interest and penalties related to uncertain income tax positions in other expense. However, no such interest and penalties were recorded as of March 31, 2015.

Stock-based compensation

Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718 which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award.

Pursuant to ASC Topic 505-50, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the service period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company initially records compensation expense based on the fair value of the award at the reporting date.

Income (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 income (loss) per common share is computed by dividing net income (loss) available to common shareholders by the weighted average number of shares of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. As of March 31, 2015 and December 31, 2014, 6,800,000 contingently common shares issuable based on certain market conditions (see Note 8) are not included in the potential dilutive shares in calculating the diluted EPS. Additionally, potentially dilutive common shares consist of common stock options (using the treasury stock method). These common stock equivalents may be dilutive in the future. Potentially dilutive common shares were excluded from the computation of diluted shares outstanding as they would have an anti-dilutive impact on the Company’s net losses and consisted of the following:

	March 31, 2015		December 31, 2014
Total stock options		4,297,931		4,357,528

Additionally, there are an unknown quantity of common stock equivalents that result from a potential conversion of equity credits and stock appreciation rights (See Notes 10, 11 and 13).

Net loss per share for each class of common stock is as follows:

Net (loss) income per common shares outstanding:	Three Months ended March 31, 2015			Three Months ended March 31, 2014
Class A common stock	$	(0.00	)	$	0.00
Class B common stock	$	(0.00	)	$	0.00
Class Z common stock	$	(0.00	)	$	0.00

Weighted average shares outstanding:
Class A common stock		234,744,655			27,670,187
Class B common stock		251,017,063			250,698,105
Class Z common stock		47,273,470			47,273,470
Total weighted average shares outstanding		534,216,610			325,641,762

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 Chairman and chief executive officer (“CEO”) 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 personal lens cleaners and accessories and ultra-thin films of organic or polymeric crystals (the “Product Segment”) and (ii) the performance of nanotechnology research and development services for government and private entities and any related sales of related products.

Reclassification

Certain reclassifications have been made in prior year’s consolidated financial statements to conform to the current year’s financial presentation. The reclassifications are primarily within operating expenses to reflect research and development as a separate line item.

Acquisition

3 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Acquisition

NOTE 3 – ACQUISITION

Effective August 27, 2014, pursuant to the reverse merger and recapitalization as discussed in Note 1, the Company and Nano merged. Both Nano and Applied Nanotech were interested in the Combination because of the opportunity to commercialize new products enabled by nanotechnology. The fact that Applied Nanotech was public will facilitate access to growth capital. The strong intellectual property portfolio of Applied Nanotech, combined with the experience of the Nano team, is to be the platform for the Company to expand its product offerings and commercialize the acquired technologies.

On the Effective Date, the merger was accounted for as a reverse merger and recapitalization of Nano using the acquisition method in accordance with ASC 805-10 and related subsections since the shareholders of Nano and its subsidiary, the legal acquiree, owned 61.6% of the aggregate outstanding common shares of PEN immediately following the completion of the merger, had its current officers assume all corporate and day-to-day management offices of PEN, including chief executive officer and chief financial officer, and board members of Nano control a majority of the board after the Combination. Accordingly, Nano was deemed to be the accounting acquirer in the transaction and, consequently, the transaction is treated as a reverse merger with Nano as the acquiring company. Accordingly, the assets and liabilities and the historical operations that will be reflected in the PEN consolidated financial statements after the Effective Date are those of Nano and Subsidiary and are recorded at the historical cost basis of Nano. Applied Nanotech’s assets and liabilities are recorded at their fair values as of the effective date and the results of operations of Applied Nanotech are consolidated with results of operations of Nano starting on the Effective Date.

The following unaudited pro forma consolidated results of operations have been prepared as if the acquisition of Applied Nanotech had occurred as of the beginning of the following period:

	Three Months Ended March 31, 2014
Net Revenues	$	3,653,843
Net Loss	$	(170,719	)
Net Loss per Share	$	(0.00	)

Pro forma data does not purport to be indicative of the results that would have been obtained had these events actually occurred at the beginning of the periods presented and is not intended to be a projection of future results.

Bank Loans and Lines of Revolving Credit Facility

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Bank Loans and Lines of Revolving Credit Facility

NOTE 4 – BANK LOANS AND LINES OF REVOLVING CREDIT FACILITY

In April 2014, Nanofilm entered into a $1,500,000 revolving credit line agreement (the “Revolving Note”) with Mackinac Commercial Credit, LLC (the “Lender”). The unpaid principal balance of this Revolving Note is payable on demand, is secured by all of Nanofilm’s assets, and bears interest computed at a rate of interest (the “Effective Rate”) which is equal to 7.0% above the LIBOR Rate, as defined, payable monthly. Nanofilm will pay to Lender a late charge of 5.0% of any monthly payment not received by Lender within 10 calendar days after its due date. The Company may, at any time or from time to time upon three business days’ written notice to Lender, prepay the Note in whole provided that (i) if Borrower prepays the Revolving Note in full and terminates the Revolving Note, or (ii) Lender terminates the Revolving Note after default, then Borrower will pay a termination premium equal to 2.0% of the maximum loan amount.

Without the Lender’s consent, so long as the obligation remains outstanding, in addition to other covenants as defined in the Revolving Note, Nanofilm shall not a) merge or consolidate with any other company, except for the Combination and shall not suffer a change of control; b) make an capital expenditures, as defined, materially affecting the business; c) declare or pay cash dividends upon any of its stock, or distribute any of its property, make any loans, make investments, redeem, retire or acquire any of its stock, d) become liable for the indebtedness of anyone else, as defined, and e) incur indebtedness, other than trade payables.

At March 31, 2015, the Company had $627,282 in borrowings outstanding under the Revolving Note with $872,718 available for borrowing under such note. The weighted average interest rate during the period was approximately 6.8%.

In May 2015, the Revolving Note was amended (See Note 14).

Note Payable

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Note Payable

NOTE 5 – NOTE PAYABLE

On February 10, 2015, Nanofilm entered into a promissory note (the “Equipment Note”) with KeyBank, N.A. (the “Bank”) to borrow up to $373,000. The Company may obtain one or more advances not to exceed $373,000. The unpaid principal balance of this Equipment Note is payable in 60 equal monthly installments payments of principal and interest through June 10, 2020. The Equipment Note is secured by certain equipment, as defined in the Equipment Note, and bears interest computed at a rate of interest of 4.35% per annum based on a year of 360 days. At March 31, 2015, the principal amount due under the Equipment Note amounted to $165,258.

Convertible Notes Payable

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Convertible Notes Payable

NOTE 6 – CONVERTIBLE NOTES PAYABLE

On February 7, 2015, the Company issued 208,681 shares of Class A common stock upon the automatic conversion in accordance with its terms of $10,000 of principal amount of convertible promissory notes, and accrued interest of $392 (see note 8). Upon conversion, the Company reclassified $3,333 of the conversion premium to additional paid-in capital.

At March 31, 2015 and December 31, 2014, aggregate convertible notes payable consisted of the following:

	March 31, 2015		December 31, 2014
Convertible notes payable	$	-	$	10,000
Put premium		-		3,333
Total	$	-	$	13,333

Related Party Transactions

3 Months Ended

Mar. 31, 2015

Related Party Transactions

NOTE 7 – RELATED PARTY TRANSACTIONS

Sales to related party

During the three months ended March 31, 2015 and 2014, the Company engaged in certain sales transactions with a company which is a shareholder and related to a director of the Company. These transactions were conducted during the normal course of the Company’s business on terms consistent with similar transactions with unrelated parties. Sales to the related party totaled $44,827 and $82,685 for the three months ended March 31, 2015 and 2014, respectively. Accounts receivable from the related party totaled $11,045 and $38,246 at March 31, 2015 and December 31, 2014, respectively.

Other

A board member is a principal in an investment advisory firm which the Company paid approximately $36,000 and $67,000 in fees and expenses during the three months ended March 31, 2015 and 2014.

Stockholders' Equity

3 Months Ended

Mar. 31, 2015

Equity [Abstract]

Stockholders' Equity

NOTE 8 – STOCKHOLDERS’ EQUITY

Description of Preferred and Common Stock

The Company is authorized to issue up to a total of 1,820,000,000 shares of capital stock, consisting of 20,000,000 shares of Preferred Stock, par value $0.0001 per share (“preferred stock”), 1,300,000,000 shares of Class A Common Stock, par value $0.0001 per share (“Class A common stock”), 400,000,000 shares of Class B Common Stock, par value $0.0001 per share (“Class B common stock”), and 100,000,000 shares of Class Z Common Stock, par value $0.0001 per share (“Class Z 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.

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. 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. Shares of Class B common stock will automatically be converted into shares of Class A common stock if the shares of Class B common stock are not owned by the Company’s chief executive officer, his spouse, or their descendants and their spouses, or by entities or trusts wholly-owned by them.

Voting Rights. Holders of PEN Class B common stock are entitled to 100 votes per share in the election of directors and other matters submitted to a vote of the stockholders.

Class Z Common Stock

Conversion Rights. 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. Shares of Class Z common stock will automatically be converted into shares of Class A common stock if the shares of Class Z common stock are not owned by Zeiss or an entity wholly owned by the ultimate parent of Zeiss. In addition, if Zeiss and other permitted holders of shares of Class Z common stock sell or convert more than one-half of the shares of Class Z common stock that are received in the Combination, all shares of Class Z common stock will automatically convert into Class A common stock.

Voting Rights. Holders of PEN Class Z common stock do not vote in the election of directors or otherwise, but they do have the right to designate a director to the PEN Board, have anti-dilution rights described below and have consent rights with respect to certain amendments to PEN’s certificate of incorporation.

Other Rights. The Class Z common stock has anti-dilutive rights that, subject to limited exceptions, permit holders of Class Z common stock to purchase additional shares or equity rights issued by PEN (on the same terms as made available to third parties by PEN) to maintain their economic ownership percentage. The holders of Class Z common stock are also entitled to receive a copy of any notice sent to the holders of Class A common stock or Class B common stock, as and when the notice is sent to such holders.

Issuances of Common Stock

Common stock issued In connection with a Stock Grant Agreement

In connection with a Stock Grant Agreement with the former chief financial officer of Applied Nanotech dated in March 2014, the Company issued 889,580 shares on January 31, 2015 and 1,200,000 shares of Class A common stock in February 2015 for an aggregate of 2,089,580 shares of Class A common stock in satisfaction of amounts due of $123,285 pursuant to the Stock Grant Agreement. These shares were valued on the date of grant at $0.059 per share based on the quoted trading price for a total value of $123,285. In connection with these shares, during the year ended December 31, 2014, the Company recorded compensation expense of $123,285 and at December 31, 2014, included $123,285 in accrued expenses on the accompanying consolidated balance sheet.

Common stock issued for convertible debt and interest

On February 7, 2015, the Company issued 208,681 shares of Class A common stock upon the automatic conversion in accordance with its terms of $10,000 of principal amount of convertible promissory notes, and accrued interest on that note of $392. Upon conversion, the Company reclassified $3,333 of the conversion premium to additional paid-in capital (see note 6).

Stock Options

Stock options outstanding are to purchase Class A common stock, Stock option activities for the three months ended March 31, 2015 are summarized as follows:

	Number of Options			Weighted Average Exercise Price			Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Balance Outstanding December 31, 2014		4,357,528		$	0.50			-	$	-
Exercised		-			-			-		-
Forfeited		(59,597	)		(0.88	)		-		-
Balance Outstanding March 31, 2015		4,297,931		$	0.49			4.91	$	-

Exercisable, March 31, 2015		4,297,931		$	0.49			4.91	$	-

Contingently issuable Class A common shares

On August 27, 2014, the Company entered into a Restricted Stock Agreement with Dr. Zvi Yaniv, the former Chief Operating Officer and President, of Applied Nanotech, and a current employee of the Company granting Dr. Yaniv 6,800,000 shares of Class A common stock, subject to forfeiture. All these shares become vested and not subject to forfeiture on the earlier of a change of control of us, Dr. Yaniv’s death, or if more than 180 days after closing, the average trading price of the shares during a measurement period of ten consecutive trading days reaches certain price thresholds. At a $0.10 price, one million of the shares vest, with additional tranches of one million shares vesting if the price reaches $0.15, $0.20, $0.25 and $0.30. The last 1.8 million shares vest at a $0.35 price threshold. Any shares that have not vested five years after the Effective Date will be forfeited. We also entered into a Piggyback Registration Rights Agreement that will allow Dr. Yaniv, subject to other customary terms and conditions, to register shares that are no longer subject to forfeiture if we are registering our shares. Pursuant to ASC 718-10 and related subsections, these shares were valued on the date of grant of August 27, 2014 at $0.0729 per shares for a total value of $495,720. The Company estimates the fair value of the awards with market conditions using a Binomial simulation, which utilizes several assumptions including the risk-free interest rate, the volatility of the Company’s stock and the exercise behavior of award recipients. The grant-date fair value of $495,720 of the awards will be recognized over the requisite service period of 3 years, which represents the derived service period for the stock grant as determined by the Binomial simulation. For the three months ended March 31, 2015, in connection with the amortization of the fair value of this stock grant, the Company recorded stock-based compensation of $41,310.

Concentrations

3 Months Ended

Mar. 31, 2015

Risks and Uncertainties [Abstract]

Concentrations

NOTE 9 – 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.

The Company places its cash in banks at levels that, at times, may exceed federally insured limits. There were no balances in excess of FDIC insured levels as of March 31, 2015 and December 31, 2014. The Company has not experienced any losses in such accounts through March 31, 2015.

Customer concentrations

Customer concentrations for the three months ended March 31, 2015 and 2014 are as follows:

	Sales
	For the three months ended March 31,
	2015			2014
Customer A		33	%		20	%
Customer B		0	%		29	%
Customer C		8	%		14	%
Total		41	%		63	%

	Accounts Receivable
	As of March 31,			As of December 31,
	2015			2014
Customer A		22	%		31	%
Customer C		12	%		10	%
Total		34	%		41	%

A reduction in sales from or loss of such customers would have a material adverse effect on our consolidated results of operations and financial condition.

Geographic concentrations of sales

For the three months ended March 31, 2015 and 2014, total sales in the United States represent 70% and 89% of total sales, respectively. No other geographical area accounting for more than 10% of total sales during the three months ended March 31, 2015 and 2014.

Vendor concentrations

For the three months ended March 31, 2015, the Company purchased 44% of its inventory from two suppliers (29% and 15%, respectively). For the three months ended March 31, 2014, the Company purchased 38% of its inventory from two suppliers (26% and 12%, respectively).

Equity Credits

3 Months Ended

Mar. 31, 2015

Equity Credits

Equity Credits

NOTE 10 – EQUITY CREDITS

During 1997, Nanofilm established The Equity Credit Incentive Program. This program enabled select employees the opportunity to purchase equity credits that increase in value based upon an increase in Nanofilm’s revenue over a base year of 1996. Eligible credits can be redeemed after two years at the equity credit value for that year. Under certain circumstances, the equity credits are convertible into Nano equity on a one-for-one basis.

The maximum number of credits available for issuance is 385,000. During the three months ended March 31, 2015, no equity credits were forfeited and no units were redeemed. As of March 31, 2015, 77,700 equity credits were issued and outstanding with an approximate value of $0.3240 per credit and, as of December 31, 2014, 77,700 equity credits were issued and outstanding with an approximate value of $0.3240 per credit. At March 31, 2015 and December 31, 2014, $25,178 and $25,178 respectively, was accrued, and included in accrued expenses, representing the redemption value associated with the equity credits outstanding at each period end.

Under the terms of the Plan, when the Company completes a registered offering of its common stock, the equity credit participants will have the option to convert the equity credits into Class A common shares of the Company, or in the case of our President, into shares of Class B common stock.

Stock Appreciation Plan

3 Months Ended

Mar. 31, 2015

Stock Appreciation Plan

Stock Appreciation Plan

NOTE 11 – STOCK APPRECIATION PLAN

From June 1, 1988, until December 31, 1997, when the plan was terminated, Nanofilm 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 Nanofilm. 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, 2015 and December 31, 2014. 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, 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 Nanofilm. 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 (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 August 2014 Combination does 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 $46,146 and $46,146, at March 31, 2015 and December 31, 2014, respectively. 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

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segment Reporting

NOTE 12 – 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, 2014 were i) the Product Segment and ii) the Research and Development Segment. For the 2014 period, the Company only operated in the Product 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, 2015 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 income (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, 2015 and 2014 was as follows:

	Three Months Ended March 31,
	2015			2014
Revenues:
Product segment	$	2,437,314		$	2,771,411
Research and development segment		630,427			-
Total segment and consolidated revenues		3,067,741			2,771,411

Gross profit:
Product segment		1,030,595			1,321,270
Research and development segment		122,043			-
Total segment and consolidated gross profit		1,152,638			1,321,270

Income (loss) from operations
Product segment	$	258,268		$	325,689
Research and development segment		(65,965	)		-
Total segment income (loss)		192,303			325,689
Unallocated costs		(351,853	)		-
Total consolidated (loss) income from operations	$	(159,550	)	$	325,689

Depreciation and amortization:
Product segment	$	37,857		$	42,183
Research and development segment		12,884			-
Total segment depreciation and amortization		50,741			42,183
Unallocated depreciation		12,822			-
Total consolidated depreciation and amortization		63,563			42,183

Capital additions:
Product segment	$	30,311		$	2,514
Research and development segment		-			-
Total segment capital additions		30,311			2,514
Unallocated capital additions		-			-
Total consolidated capital additions	$	30,311		$	2,514

	March 31, 2015		December 31, 2014
Segment tangible assets:
Product segment	$	743,105	$	750,651
Research and development segment		87,312		100,196
Total consolidated tangible assets	$	830,417	$	850,847

Commitments and Contingencies

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE 13 – COMMITMENTS AND CONTINCENGIES

Equity Credits

Equity credits may become convertible into an unknown amount of capital stock of the Company to be determined by the Company’s board of directors (See Note 10).

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 11).

Placement Agency Agreement

On March 4, 2015, the Company entered into a, 18-month placement agency agreement with INTL FCStone Securities Inc. (“INTL”) to assist the Company in exploring a capital raise. Under the terms of the engagement, the Company will pay them $50,000 within 6 weeks of the date we entered the agreement. Their fee if a transaction closes is a minimum of $250,000 (inclusive of the $50,000 of which $45,000 was already paid). If the Company is paid money in connection with a transaction that fails to close, the Company will owe INTL 30% of that payment (net of any expenses the Company incurs).

Subsequent Events

3 Months Ended

Mar. 31, 2015

Subsequent Events [Abstract]

Subsequent Events

NOTE 14 – SUBSEQUENT EVENTS

On May 1, 2015 the Company’s wholly-owned subsidiary Nanofilm, Ltd. entered into an amendment to the Loan and Security Agreement with the Lender (see Note 4) to extend the outside maturity date to April 4, 2016 and to permit advances against an expanded borrowing base. The borrowing base was increased by $450,000 through October 31, 2015, with this amount reducing by $7,500 monthly thereafter. In addition, the Company guaranteed Nanofilm’s obligations to the Lender.

On May 4, 2015, the Company issued an aggregate of 119,615 shares of Class A common stock and 47,876 shares of Class B common stock to the Company’s directors as partial payment for their service on the Company’s board. These shares are valued were valued on the date of grant of May 4, 2015 at $0.0418 per share based on the quoted price of the stock for a total value of $7,000.

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Use of estimates

Use of estimates

Fair value of Financial Instruments and Fair Value Measurements

Fair value of financial instruments and fair value measurements

Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.

	At March 31, 2015						At December 31, 2014
Description	Level 1		Level 2		Level 3		Level 1		Level 2		Level 2
Intangible assets		-		-	$	226,516		-		-	$	239,338
Stock Appreciation Rights Plan A		-		-	$	46,146		-		-	$	46,146
Equity Credits Issued		-		-	$	25,178		-		-	$	25,178

A rollforward of the level 3 valuation of these three financial instruments is as follows:

	Intangible Assets			Stock Appreciation Rights Plan A		Equity Credits Issued
Balance at December 31, 2014	$	239,338		$	46,146	$	25,178
Amortization of intangible assets		(12,822	)		-		-
Change in fair value included in net loss		-			-		-
Balance at March 31, 2015	$	226,516		$	46,146	$	25,178

Cash and Cash Equivalents

Cash and cash equivalents

Accounts Receivable

Accounts receivable

Inventory

Inventory

Inventory is stated at the lower of cost or market. Cost is determined using the first-in, first-out (FIFO) method.

Property and Equipment

Property and equipment

Intangible Assets

Intangible assets

Intangible assets, consisting of patents, patent pending technologies and other technologies being amortized on a straight-line method over the estimated useful life of 5 years.

Impairment of Long-Lived Assets

Impairment of long-lived assets

Revenue Recognition

Revenue recognition

Types of Revenue:

	●	Net product sales by our subsidiary Nanofilm.

	●	Reimbursements under agreements to perform research and development for government agencies and others by our subsidiary, Applied Nanotech. We do not perform research contracts that are contingent upon successful results. Larger projects are sometimes broken down in phases to allow the customer to determine at the end of each phase if they wish to move to the next phase. The agreements with federal government agencies generally provide that, upon completion of a technology development program, the funding agency is granted a royalty-free license to use any technology developed during the course of the program for its own purposes, but not any preexisting technology that we use in connection with the program. We retain all other rights to use, develop, and commercialize the technology. Agreements with nongovernmental entities generally allow the entity the first opportunity to license the technology from us upon completion of the project.

	●	Product sales and other miscellaneous revenues from our subsidiary, Applied Nanotech such as the sale of conductive inks and thermal management materials.

Revenue Recognition Criteria:

	●	Net product sales by our subsidiary Nano, are recognized when the product is shipped to the customer and title is transferred.

	●	Revenue from research and development government contracts is recognized when it is earned pursuant to the terms of the contract. These projects are usually billed monthly based on costs, hours, or some other measure of activity during the month and revenue is recognized as services are provided. If there is substantive acceptance terms then revenue will not be recognized until acceptance occurs. The recognition of revenue may not correspond with the billings allowable under the contract. To the extent that billings exceed revenue earned, a portion of the revenue is deferred until such time as it is earned.

	●	Revenue from research and development non-governmental contracts is recognized when it is earned pursuant to the terms of the contract. Each contract is unique and tailored to the needs of the customer and goals of the project. Some contracts may call for a monthly payment for a fixed period of time. Other contracts may be for a fixed dollar amount with an unspecified time period, although there is frequently a targeted completion date. These contracts generally involve some sort of up-front payment. Some contracts may call for the delivery of samples, or may call for the transfer of equipment or other items developed during the project to the customer. These projects are usually billed monthly based on costs, hours, or some other measure of activity during the month and revenue is recognized as services are provided. If there is substantive acceptance terms then revenue will not be recognized until acceptance occurs.

	●	Revenue from other product sales is recognized at the time the product shipped. The Company’s subsidiary Applied Nanotech’s primary business is research and development and the licensing of its technology, not the sale of products. Product sales are generally insignificant in number, and are generally limited to the sale of conductive inks, thermal management materials, samples, proofs of concepts, prototypes, or other items resulting from its research.

	●	Other miscellaneous revenue is recognized as deemed appropriate given the facts of the situation and is generally not material.

Sales Incentives and Consideration Paid to Customers

Sales incentives and consideration paid to customers

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

Research and Development

Research and development

Advertising Costs

Advertising costs

Federal and State Income Taxes

Federal and state income taxes

Stock-Based Compensation

Stock-based compensation

Income (Loss) Per Share of Common Stock

Income (loss) per share of common stock

	March 31, 2015		December 31, 2014
Total stock options		4,297,931		4,357,528

Additionally, there are an unknown quantity of common stock equivalents that result from a potential conversion of equity credits and stock appreciation rights (See Notes 10, 11 and 13).

Net loss per share for each class of common stock is as follows:

Net (loss) income per common shares outstanding:	Three Months ended March 31, 2015			Three Months ended March 31, 2014
Class A common stock	$	(0.00	)	$	0.00
Class B common stock	$	(0.00	)	$	0.00
Class Z common stock	$	(0.00	)	$	0.00

Weighted average shares outstanding:
Class A common stock		234,744,655			27,670,187
Class B common stock		251,017,063			250,698,105
Class Z common stock		47,273,470			47,273,470
Total weighted average shares outstanding		534,216,610			325,641,762

Segment Reporting

Segment reporting

Reclassification

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Schedule of Reconciliation of Fair Value of Level 3 Valuation of Financial Instruments

The Company accounts for three instruments at fair value using level 3 valuation.

	At March 31, 2015						At December 31, 2014
Description	Level 1		Level 2		Level 3		Level 1		Level 2		Level 2
Intangible assets		-		-	$	226,516		-		-	$	239,338
Stock Appreciation Rights Plan A		-		-	$	46,146		-		-	$	46,146
Equity Credits Issued		-		-	$	25,178		-		-	$	25,178

Schedule of Reconciliation of Fair Value of Asset Liabilities Measured Recurring Basis

A rollforward of the level 3 valuation of these three financial instruments is as follows:

	Intangible Assets			Stock Appreciation Rights Plan A		Equity Credits Issued
Balance at December 31, 2014	$	239,338		$	46,146	$	25,178
Amortization of intangible assets		(12,822	)		-		-
Change in fair value included in net loss		-			-		-
Balance at March 31, 2015	$	226,516		$	46,146	$	25,178

Schedule of Anti-dilutive Per Share Information

Potentially dilutive common shares were excluded from the computation of diluted shares outstanding as they would have an anti-dilutive impact on the Company’s net losses and consisted of the following:

	March 31, 2015		December 31, 2014
Total stock options		4,297,931		4,357,528

Schedule of Reconciliation of Basic and Diluted Net Income Loss

Net loss per share for each class of common stock is as follows:

Net (loss) income per common shares outstanding:	Three Months ended March 31, 2015			Three Months ended March 31, 2014
Class A common stock	$	(0.00	)	$	0.00
Class B common stock	$	(0.00	)	$	0.00
Class Z common stock	$	(0.00	)	$	0.00

Weighted average shares outstanding:
Class A common stock		234,744,655			27,670,187
Class B common stock		251,017,063			250,698,105
Class Z common stock		47,273,470			47,273,470
Total weighted average shares outstanding		534,216,610			325,641,762

Acquisition (Tables)

3 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Schedule Pro Forma Consolidated Results of Operations

The following unaudited pro forma consolidated results of operations have been prepared as if the acquisition of Applied Nanotech had occurred as of the beginning of the following period:

	Three Months Ended March 31, 2014
Net Revenues	$	3,653,843
Net Loss	$	(170,719	)
Net Loss per Share	$	(0.00	)

Convertible Notes Payable (Tables)

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Schedule of Convertible Notes Payable

At March 31, 2015 and December 31, 2014, aggregate convertible notes payable consisted of the following:

	March 31, 2015		December 31, 2014
Convertible notes payable	$	-	$	10,000
Put premium		-		3,333
Total	$	-	$	13,333

Stockholder's Equity (Tables)

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Stock Option Plan Activity

Stock options outstanding are to purchase Class A common stock, Stock option activities for the three months ended March 31, 2015 are summarized as follows:

	Number of Options			Weighted Average Exercise Price			Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Balance Outstanding December 31, 2014		4,357,528		$	0.50			-	$	-
Exercised		-			-			-		-
Forfeited		(59,597	)		(0.88	)		-		-
Balance Outstanding March 31, 2015		4,297,931		$	0.49			4.91	$	-

Exercisable, March 31, 2015		4,297,931		$	0.49			4.91	$	-

Concentration (Tables)

3 Months Ended

Mar. 31, 2015

Risks and Uncertainties [Abstract]

Schedule of Revenue Percentage

Customer concentrations for the three months ended March 31, 2015 and 2014 are as follows:

	Sales
	For the three months ended March 31,
	2015			2014
Customer A		33	%		20	%
Customer B		0	%		29	%
Customer C		8	%		14	%
Total		41	%		63	%

Schedule of Accounts Receivable Percentage

	Accounts Receivable
	As of March 31,			As of December 31,
	2015			2014
Customer A		22	%		31	%
Customer C		12	%		10	%
Total		34	%		41	%

Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segment Information Available With Respect To Reportable Business Segments

Segment information available with respect to these reportable business segments for the three months ended March 31, 2015 and 2014 was as follows:

	Three Months Ended March 31,
	2015			2014
Revenues:
Product segment	$	2,437,314		$	2,771,411
Research and development segment		630,427			-
Total segment and consolidated revenues		3,067,741			2,771,411

Gross profit:
Product segment		1,030,595			1,321,270
Research and development segment		122,043			-
Total segment and consolidated gross profit		1,152,638			1,321,270

Income (loss) from operations
Product segment	$	258,268		$	325,689
Research and development segment		(65,965	)		-
Total segment income (loss)		192,303			325,689
Unallocated costs		(351,853	)		-
Total consolidated (loss) income from operations	$	(159,550	)	$	325,689

Depreciation and amortization:
Product segment	$	37,857		$	42,183
Research and development segment		12,884			-
Total segment depreciation and amortization		50,741			42,183
Unallocated depreciation		12,822			-
Total consolidated depreciation and amortization		63,563			42,183

Capital additions:
Product segment	$	30,311		$	2,514
Research and development segment		-			-
Total segment capital additions		30,311			2,514
Unallocated capital additions		-			-
Total consolidated capital additions	$	30,311		$	2,514

	March 31, 2015		December 31, 2014
Segment tangible assets:
Product segment	$	743,105	$	750,651
Research and development segment		87,312		100,196
Total consolidated tangible assets	$	830,417	$	850,847

Organization and Basis of Presentation (Details Narrative)

Organization and Basis of Presentation (Details Narrative)			0 Months Ended							3 Months Ended		0 Months Ended
	Mar. 31, 2015 Common Class A [Member]	Dec. 31, 2014 Common Class A [Member]	Aug. 28, 2014 Common Class A [Member] Former Directors [Member]	Aug. 26, 2014 Common Class A [Member] Former CFO [Member]	Mar. 31, 2015 Class B Common Stock [Member]	Dec. 31, 2014 Class B Common Stock [Member]	Mar. 31, 2015 Class Z Commmon Stock [Member]	Dec. 31, 2014 Class Z Commmon Stock [Member]	Aug. 26, 2014 Common Class A [Member]	Mar. 31, 2015 Nanofilm Ltd [Member]	Aug. 27, 2014 Nanofilm Ltd [Member]	Aug. 26, 2014 Applied Nanotech, Inc [Member]	Aug. 27, 2014 Nano [Member] Common Class A [Member]	Aug. 27, 2014 Nano [Member] Class B Common Stock [Member]	Aug. 27, 2014 Nano [Member] Class Z Commmon Stock [Member]
Percentage of ownership equity											100.00%
Outstanding Convertible note converted into common stock												32,379,288
Number of stock issued during period for payment of accrued fees to directors			11,164,620
Number of stock issued during period to former CFO				1,500,000
Common stock outstanding	237,042,916	234,744,655			251,017,063	251,017,063	47,273,470	47,273,470	203,363,059
Number of stock shares exchanged during period													27,670,187	250,698,105	47,273,470
Percentage of non controlling interest of net income loss										14.50%

Summary of Significant Accounting Policies (Details Narrative)

Summary of Significant Accounting Policies (Details Narrative) (USD $)	3 Months Ended				0 Months Ended	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015 Minimum [Member]	Mar. 31, 2015 Maximum [Member]	Feb. 24, 2014 Nanofilm Ltd [Member]	Mar. 31, 2015 Pending Technologies [Member]	Mar. 31, 2015 Patents [Member]	Mar. 31, 2015 Other Technologies [Member]
Estimated useful lives for property and equipment			3 years	10 years
Estimated useful life of intangible assets						5 years	5 years	5 years
Sales incentives and cooperative advertising reduction of sales	$ 55,468	$ 30,498
Shipping and handling costs	51,638	52,985
Research and development expense	195,202	150,735
Advertising expense	$ 17,550	$ 38,331
Percentage of net income loss					85.50%
Percentage of net income loss after effective date of merger					100.00%
Potential non contingent dilutive common shares consist of common stock options	6,800,000

Summary of Significant Accounting Policies - Schedule of Reconciliation of Fair Value of Level 3 Valuation of Financial Instruments (Details)

Summary of Significant Accounting Policies - Schedule of Reconciliation of Fair Value of Level 3 Valuation of Financial Instruments (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Level 1 [Member]
Intangible assets
Stock Appreciation Rights Plan A
Equity Credits Issued
Level 2 [Member]
Intangible assets
Stock Appreciation Rights Plan A
Equity Credits Issued
Level 3 [Member]
Intangible assets	226,516	239,338
Stock Appreciation Rights Plan A	46,146	46,146
Equity Credits Issued	$ 25,178	$ 25,178

Summary of Significant Accounting Policies - Schedule of Reconciliation of Fair Value of Asset Liabilities Measured Recurring Basis (Details)

Summary of Significant Accounting Policies - Schedule of Reconciliation of Fair Value of Asset Liabilities Measured Recurring Basis (Details) (USD $)	3 Months Ended
	Mar. 31, 2015
Intangible Assets [Member]
Balance	$ 239,338
Amortization of intangible assets	(12,822)
Change in fair value included in net loss
Balance	226,516
Stock Appreciation Rights Plan A [Member]
Balance	46,146
Amortization of intangible assets
Change in fair value included in net loss
Balance	46,146
Equity Credits Issued [Member]
Balance	25,178
Amortization of intangible assets
Change in fair value included in net loss
Balance	$ 25,178

Summary of Significant Accounting Policies - Schedule of Anti-dilutive Per Share Information (Details)

Summary of Significant Accounting Policies - Schedule of Anti-dilutive Per Share Information (Details) (Stock Option [Member])	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Stock Option [Member]
Total stock options	4,297,931	4,357,528

Summary of Significant Accounting Policies - Schedule of Reconciliation of Basic and Diluted Net Income Loss (Details)

Summary of Significant Accounting Policies - Schedule of Reconciliation of Basic and Diluted Net Income Loss (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Weighted average shares outstanding	534,216,610	325,641,762
Common Class A [Member]
Net loss per common shares outstanding	$ 0.00	$ 0.00
Weighted average shares outstanding	234,744,655	27,670,187
Class B Common Stock [Member]
Net loss per common shares outstanding	$ 0.00	$ 0.00
Weighted average shares outstanding	251,017,063	250,698,105
Class Z Commmon Stock [Member]
Net loss per common shares outstanding	$ 0.00	$ 0.00
Weighted average shares outstanding	47,273,470	47,273,470

Acquisition (Details Narrative)

Acquisition (Details Narrative) (Nano [Member])	Aug. 27, 2014
Nano [Member]
Percentage of owned outstanding common share	61.60%

Acquisition - Schedule Pro Forma Consolidated Results of Operations (Details)

Acquisition - Schedule Pro Forma Consolidated Results of Operations (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Acquisition - Schedule Pro Forma Consolidated Results Of Operations Details
Net Revenues	$ 3,653,843
Net Loss	$ (170,719)
Net Loss per Share	$ 0.00

Bank Loans and Lines of Revolving Credit Facility (Details Narrative)

Bank Loans and Lines of Revolving Credit Facility (Details Narrative) (USD $)	1 Months Ended
	Apr. 30, 2014	Mar. 31, 2015
Debt Disclosure [Abstract]
Revolving credit facility	$ 1,500,000	$ 627,282
Percentage of effective interest rate	7.00%
Percentage of monthly payment to lender	5.00%
Percentage of termination premium equal to maximum loan amount	2.00%
Maximum borrowing capacity of line of credit		$ 872,718
Long term debt weighted average interest rate		6.80%

Notes Payable (Details Narrative)

Notes Payable (Details Narrative) (USD $)	3 Months Ended		0 Months Ended
Notes Payable (Details Narrative) (USD $)	Mar. 31, 2015	Mar. 31, 2014	Feb. 10, 2015 Nanofilm Ltd [Member]
Proceeds from notes payable			$ 373,000
Advances not to exceed			373,000
Debt instalments equal monthly payments			Equipment Note is payable in 60 equal monthly installments payments
Debt installments payments ending date			Jun. 10, 2020
Debt instruments interest rate			4.35%
Principal amount due under the Equipment Note	$ 165,258

Convertible Notes Payable (Details Narrative)

Convertible Notes Payable (Details Narrative) (USD $)	0 Months Ended	3 Months Ended
Convertible Notes Payable (Details Narrative) (USD $)	Feb. 07, 2015 Common Class A [Member]	Mar. 31, 2015 Convertible Notes Payable [Member]	Feb. 07, 2015 Convertible Notes Payable [Member] Common Class A [Member]
Number of shares issued for conversion	$ 208,681
Number of shares issued for conversion, shares	10,000
Convertible promissory notes and accrued interest	392		392
Conversion premium to additional paid-in capital		$ 3,333

Convertible Notes Payable - Schedule of Convertible Notes Payable (Details)

Convertible Notes Payable - Schedule of Convertible Notes Payable (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Debt Disclosure [Abstract]
Convertible notes payable		$ 10,000
Put premium		3,333
Total		$ 13,333

Related Party Transactions (Details Narrative)

Related Party Transactions (Details Narrative) (USD $)	3 Months Ended
Related Party Transactions (Details Narrative) (USD $)	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Related Party Transactions [Abstract]
Sales to the related party	$ 44,827	$ 82,685
Accounts receivable - related party	11,045		38,246
Fees and expenses to board member	$ 36,000	$ 67,000

Stockholders' Equity (Details Narrative)

Stockholders' Equity (Details Narrative) (USD $)	3 Months Ended			0 Months Ended	3 Months Ended	12 Months Ended	0 Months Ended				1 Months Ended
Stockholders' Equity (Details Narrative) (USD $)	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014	Aug. 27, 2014 Dr Zvi Yaniv [Member]	Mar. 31, 2015 Convertible Notes Payable [Member]	Dec. 31, 2014 Applied Nanotech, Inc [Member] Chief Financial Officer [Member]	Feb. 07, 2015 Common Class A [Member]	Mar. 31, 2015 Common Class A [Member]	Dec. 31, 2014 Common Class A [Member]	Feb. 07, 2015 Common Class A [Member] Convertible Notes Payable [Member]	Feb. 28, 2015 Common Class A [Member] Former CFO [Member] Applied Nanotech, Inc [Member]	Jan. 31, 2015 Common Class A [Member] Former CFO [Member] Applied Nanotech, Inc [Member]	Mar. 31, 2014 Common Class A [Member] Former CFO [Member] Applied Nanotech, Inc [Member]	Mar. 31, 2015 Class B Common Stock [Member]	Dec. 31, 2014 Class B Common Stock [Member]	Mar. 31, 2015 Class Z Commmon Stock [Member]	Dec. 31, 2014 Class Z Commmon Stock [Member]
Capital stock authorized shares	1,820,000,000
Preferred stock, par value	$ 0.0001		$ 0.0001
Preferred stock, shares authorized	20,000,000		20,000,000
Common stock, par value	$ 0.0001							$ 0.0001	$ 0.0001					$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001
Common stock, shares authorized	1,800,000,000							1,300,000,000	1,300,000,000					400,000,000	400,000,000	100,000,000	100,000,000
Common stock voting rights	Holders of PEN Class B common stock are entitled to 100 votes per share in the election of directors and other matters submitted to a vote of the stockholders.
Number of stock issued during period											2,089,580	1,200,000	889,580
Accrued expenses	$ 819,123		$ 964,587			$ 123,285					$ 123,285	$ 123,285	$ 123,285
Equity issuance price per share				$ 0.0729							$ 0.059	$ 0.059	$ 0.059
Number of shares issued during period for related parties, value											123,285	123,285	123,285
Share based compensation amount	41,310					123,285
Number of shares issued for conversion							208,681
Number of shares issued for conversion, shares							10,000
Convertible promissory notes and accrued interest							392			392
Conversion premium to additional paid-in capital					3,333
Number of shares issued for forfeiture				6,800,000
Expected vested exercise price description				price of the shares during a measurement period of ten consecutive trading days reaches certain price thresholds. At a $0.10 price, one million of the shares vest, with additional tranches of one million shares vesting if the price reaches $0.15, $0.20, $0.25 and $0.30. The last 1.8 million shares vest at a $0.35 price threshold.
Fair value of granted stock on the quoted trading price	$ 123,285			$ 495,720
Fair value recognized over the requisite service period				3 years

Stockholder's Equity - Schedule of Stock Option Plan Activity (Details)

Stockholder's Equity - Schedule of Stock Option Plan Activity (Details) (Stock Option [Member], USD $)	3 Months Ended
	Mar. 31, 2015
Stock Option [Member]
Shares Outstanding, Beginning balance	4,357,528
Shares, Exercised
Shares, Forfeited	(59,597)
Shares Outstanding, Ending balance	4,297,931
Shares Exercisable	4,297,931
Weighted-Average Exercise Price, Outstanding, Beginning	$ 0.50
Weighted-Average Exercise Price, Exercised
Weighted-Average Exercise Price, Forfeited	$ (0.88)
Weighted-Average Exercise Price, Outstanding, Ending	$ 0.49
Weighted-Average Exercise Price, Exercisable	$ 0.49
Weighted-Average Remaining Contractual Terms (Years), Outstanding	4 years 10 months 28 days
Weighted-Average Remaining Contractual Terms (Years), Exercisable	4 years 10 months 28 days
Aggregate Intrinsic Value, Share Outstanding
Aggregate Intrinsic Value, Share Exercisable

Concentrations (Details Narrative)

Concentrations (Details Narrative)	3 Months Ended		12 Months Ended
Concentrations (Details Narrative)	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Percentage of sales	41.00%		63.00%
Percentage of vendor concentration risk	44.00%	38.00%
Supplier One Member
Percentage of vendor concentration risk	29.00%	26.00%
Supplier Two Member
Percentage of vendor concentration risk	15.00%	12.00%
United States [Member]
Percentage of sales	70.00%	89.00%
Other Geographical Area [Member] \| Maximum [Member]
Percentage of sales	10.00%	10.00%

Concentrations - Schedule of Sales Percentage (Details)

Concentrations - Schedule of Sales Percentage (Details)	3 Months Ended	12 Months Ended	3 Months Ended
Concentrations - Schedule of Sales Percentage (Details)	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2015 Customer A [Member]	Mar. 31, 2014 Customer A [Member]	Mar. 31, 2015 Customer B [Member]	Mar. 31, 2014 Customer B [Member]	Mar. 31, 2015 Customer C [Member]	Mar. 31, 2014 Customer C [Member]
Percentage of revenues	41.00%	63.00%	33.00%	20.00%	0.00%	29.00%	8.00%	14.00%

Concentrations - Schedule of Accounts Receivable (Details)

Concentrations - Schedule of Accounts Receivable (Details)	Mar. 31, 2015	Dec. 31, 2014
Percentage of accounts receivable	34.00%	41.00%
Customer A [Member]
Percentage of accounts receivable	22.00%	31.00%
Customer C [Member]
Percentage of accounts receivable	12.00%	10.00%

Equity Credits (Details Narrative)

Equity Credits (Details Narrative) (USD $)	3 Months Ended	12 Months Ended
Equity Credits (Details Narrative) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Equity Credits
Maximum number of credits available for issuance	385,000
Number equity issued and outstanding under credit	77,700	77,700
Issued and outstanding per credit	$ 0.3240	$ 0.3240
Equity credits outstanding	$ 25,178	$ 25,178

Stock Appriciation Plan (Details Narrative)

Stock Appriciation Plan (Details Narrative) (USD $)	3 Months Ended
Stock Appriciation Plan (Details Narrative) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Stock Appriciation Plan Details Narrative
Maximum number of stock appreciation granted by board	1,000,000
Vested stock outstanding	235,782	235,782
Percentage of redemption value to purchase common shares	70.00%
Percentage of remaining distributed in cash to the participant	30.00%
Accrued redemption value associated with the stock appreciation rights amount	$ 46,146	$ 46,146

Segment Reporting - Segment Information Available With Respect To Reportable Business Segments (Details)

Segment Reporting - Segment Information Available With Respect To Reportable Business Segments (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Total segment and consolidated revenues	$ 2,437,314	$ 2,771,411
Total segment and consolidated gross profit	1,152,638	1,321,270
Total consolidated income (loss) from operations	(159,550)	325,689
Total consolidated tangible assets	830,417		850,847
Total Segment [Member]
Total segment and consolidated revenues	3,067,741	2,771,411
Total segment and consolidated gross profit	1,152,638	1,321,270
Total segment income (loss) from operations	192,303	325,689
Unallocated costs	(351,853)
Total consolidated income (loss) from operations	(159,550)	325,689
Total segment depreciation and amortization	50,741	42,183
Unallocated depreciation	12,822
Total consolidated depreciation and amortization	63,563	42,183
Total segment capital additions	30,311	2,514
Unallocated capital additions
Total consolidated capital additions	30,311	2,514
Total consolidated tangible assets	830,417	850,847
Product Segment [Member]
Total segment and consolidated revenues	2,437,314	2,771,411
Total segment and consolidated gross profit	1,030,595	1,321,270
Total segment income (loss) from operations	258,268	325,689
Total segment depreciation and amortization	37,857	42,183
Total segment capital additions	30,311	2,514
Total consolidated tangible assets	743,105	750,651
Research and Development Segment [Member]
Total segment and consolidated revenues	630,427
Total segment and consolidated gross profit	122,043
Total segment income (loss) from operations	(65,965)
Total segment depreciation and amortization	12,884
Total segment capital additions
Total consolidated tangible assets	$ 87,312	$ 100,196

Commitments and Contingencies (Details Narrative)

Commitments and Contingencies (Details Narrative) (USD $)	0 Months Ended
	Mar. 04, 2015
Unpaid payent of placement agency fee	$ 50,000
Transaction cost	250,000
Agents fees paid	$ 45,000
INTL FCStone Securities Inc [Member]
Percentage of owe payment of expense	30.00%

Subsequent Events (Details Narrative)

Subsequent Events (Details Narrative) (Subsequent Event [Member], USD $)	0 Months Ended			3 Months Ended
	May 04, 2015	May 04, 2015 Common Class A [Member]	May 04, 2015 Common Class B [Member]	Mar. 31, 2015 October 31, 2015 [Member]
Increased borrowings				$ 450,000
Debt reduced monthly				7,500
Stock issued during period for service		119,615	47,876
Sale of stock price per share	$ 0.0418
quoted price of stock total value	$ 7,000