U.S. Markets close in 4 hrs 55 mins

Nocopi Technologies, Inc. (NNUP)

Other OTC - Other OTC Delayed Price. Currency in USD
Add to watchlist
0.1396+0.0016 (+1.16%)
As of 10:11AM EST. Market open.
Full screen
Trade prices are not sourced from all markets
Gain actionable insight from technical analysis on financial instruments, to help optimize your trading strategies
Chart Events
Neutralpattern detected
Previous Close0.1380
Open0.1450
BidN/A x N/A
AskN/A x N/A
Day's Range0.1396 - 0.1585
52 Week Range0.0400 - 0.2510
Volume253,899
Avg. Volume64,315
Market Cap9.403M
Beta (5Y Monthly)1.16
PE Ratio (TTM)27.92
EPS (TTM)0.0050
Earnings DateNov 13, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target EstN/A
  • Continued Growth of Specialty Ink Sales for Toys and Entertainment Drives 18% Rise in Nocopi Q3 Revenue; Net Income of $163,100 Reflects Higher Production Costs and Overhead Expense
    GlobeNewswire

    Continued Growth of Specialty Ink Sales for Toys and Entertainment Drives 18% Rise in Nocopi Q3 Revenue; Net Income of $163,100 Reflects Higher Production Costs and Overhead Expense

    KING OF PRUSSIA, Pa., Nov. 13, 2020 (GLOBE NEWSWIRE) -- Nocopi Technologies, Inc. (OTC Pink: NNUP), a developer of specialty reactive inks used in entertainment, toy and educational products as well as in document and product authentication technologies to combat fraud, today announced results for its third quarter ended September 30, 2020 (Q3’20). Nocopi’s SEC filings are available here, https://bit.ly/35gTldx Nocopi Chairman and CEO Michael Feinstein, commented, “Nocopi achieved another quarter of double digit revenue growth driven principally by growing demand for our specialty ink technologies used in toy and entertainment products. Specialty ink sales reached the second highest level in recent periods during the third quarter as our entertainment customers ramped production activity in anticipation of the holiday selling season. We are optimistic that this expanded production activity will support strong holiday sales levels that would contribute to future royalty income for Nocopi. That leading indicator combined with recent team efforts on new products which are variants of our ink technology plus expanded distribution channels led by existing partners sets Nocopi up for success in the next year.”“COVID-related factors continued to negatively impact overall consumer spending at physical stores during the third quarter, however this trend was offset somewhat by solid increases in online sales activity. The net effect was a lower level of product sell-through that caused a lower level of revenues from licenses, royalties and fees in Q3’20 versus the year ago period.“Similarly, we continued to experience weakness in our smaller anticounterfeiting and anti-product diversion applications for our specialty ink technologies, principally due to COVID-19-related plant closures and budget and procurement freezes. We are optimistic that these markets will return to more normal levels of activity as we progress into FY 2021.“Nocopi’s Q3’20 cash collections were strong, with the company closing the quarter with $2.5M in working capital, including $1.4M of cash and $1.0M in accounts receivable. This compares favorably with Q4’19 working capital of $1.8M, including $0.7M of cash, and $1.4M of accounts receivable and Q2’20 working capital of $2.1M, including $1.1M in cash and $1.1M in accounts receivable. Our financial position puts Nocopi in a very strong position to manage our business over the foreseeable future and the ability to weather future unforeseen circumstances whether those be unique to COVID-19 or other economic factors. Given that access to capital is both challenging and expensive for microcap companies, we feel it is essential that we proceed carefully in developing a prudent capital allocation strategy.”Q3 Highlights * Revenues rose 18% to $755,000, driven by a 34% increase in specialty ink product sales. * Revenue from licenses, royalties and fees declined 19% to $153,300, and were pressured by a slight decrease in earned royalties from our major licensees in the entertainment and toy industries compared to Q3 ‘19 due to the closure of some retail locations where their products are sold. * Gross profit of $425,500 was relatively unchanged though gross margin declined to 56% from 67% compared to Q3 ’19 on increased product and shipping costs and a lower percentage of higher-margin royalty income within Nocopi’s revenue mix. * Net income decreased to $163,100 from $206,800 in Q3’19, due to higher salary and consulting expenses and lower gross margin. * Working capital, including $1.5M of cash, increased to $2.5M at 9/30/20 compared to working capital of $1.8M at year-end 2019. * Book value increased to $3.2M at 9/30/20 compared to $2.8M at year-end 2019.Q3’20 Results Q3’20 revenues rose 18% to $754,800 reflecting a 34% increase in product and other sales, principally due to higher specialty ink shipments to the entertainment and toy product market, offset by a 19% decline in licenses, royalties and fees, due primarily to the Covid-19 related reduction in sell-through of entertainment products using Nocopi technologies as well as temporary disruptions of customer activity in security applications also resulting from the pandemic. Royalty revenue in the Q3’20 and Q3’19 periods do not reflect the receipt of quarterly guaranteed royalty payments of $100,000 received by Nocopi pursuant to a four-year license extension that went into effect July 1, 2019. The payments are reflected in the Company’s balance sheet and statement of cash flows but are not recorded as revenue.Gross profit decreased to $425,500, or 56% of revenues in Q3’20, from $429,500, or 67% of revenues in Q3 ’19, principally due to higher raw material costs and shipping expense related to the COVID-19 pandemic, as well as a smaller relative contribution from higher-margin royalty revenue. However, the Company’s gross margin improved sequentially to 56% in Q3 ’20 compared to 51% in Q2 ’20 due to a change in the mix toward higher margin products in the quarter.Q3’20 operating expenses increased to $255,400 from $210,400 in Q3’19, reflecting increased operational and administrative expense including higher salaries and professional fees. In late 2019, Nocopi expanded its ink production operations and staffing to support expected future growth.Reflecting lower gross profit and higher operating expenses Nocopi’s net income declined to $163,100, or $0.002 per diluted share, in Q3’20, compared to $206,800, or $0.003 per diluted share, in Q3’19.Nocopi’s cash flow from operations increased to $768,500 in the first nine months of 2020 compared to $399,400 in the year-ago period.About Nocopi Technologies (www.nocopi.com) Nocopi develops and markets specialty reactive inks for unique, mess-free applications in the entertainment, toy and educational product markets. Nocopi also develops and markets document and product authentication technologies designed to combat fraudulent document reproduction, product counterfeiting and/or unauthorized product diversion. Nocopi derives revenue from technology licensing agreements as well as from the sale of its proprietary inks and other products to licensees and/or their licensed printers. Nocopi’s products and systems include trade secrets as well as patented technologies.Safe Harbor for Forward-Looking Statements This release may contain projections and other "forward-looking statements" relating to Nocopi’s business, that are often identified by the use of "believes," "expects" or similar expressions. Forward-looking statements involve a number of estimates, assumptions, risks and uncertainties that may cause actual results to differ materially from those anticipated. Forward-looking statements may address uncertainties regarding customer preferences or demand for products incorporating Nocopi technology that underlie the company’s revenue expectations, the company’s ability to develop new products and new product applications, the financial condition of customers and the timeliness of their payments, the impact of fluctuations in currencies, global trade and shipping markets, etc. Actual results could differ from those projected due to numerous factors and uncertainties, and Nocopi can give no assurance that such statements will prove to be correct nor that Nocopi’s actual results of ‎operations, financial condition and performance will not differ materially from those reflected or implied by its forward-‎looking statements. Investors should refer to the risk factors outlined in Nocopi’s Form 10-K, 10-Q and other SEC reports available at www.sec.gov/edgar. Forward-looking statements are made as of the date of this news release; Nocopi assumes no obligation to update these statements.Twitter – Investors: @NNUP_IRInvestor & Media Contacts Chris Eddy or David Collins Catalyst IR 212-924-9800 or nnup@catalyst-ir.com Nocopi Technologies, Inc. Statements of Operations (unaudited)  Three Months ended September 30,  Nine Months ended September 30,    2020  2019  2020  2019                Revenues             Licenses, royalties and fees $153,300  $189,400  $425,000  $571,900  Product and other sales  601,500   448,100   1,477,400   991,100     754,800   637,500   1,902,400   1,563,000                    Cost of revenues                 Licenses, royalties and fees  61,900   41,400   170,200   98,200  Product and other sales  267,400   166,600   716,200   380,300     329,300   208,000   886,400   478,500  Gross profit  425,500   429,500   1,016,000   1,084,500                    Operating expenses                 Research and development  40,700   45,200   123,700   122,600  Sales and marketing  90,900   81,000   260,900   224,200  General and administrative  123,800   84,200   383,500   265,200     255,400   210,400   768,100   612,000  Net income from operations  170,100   219,100   247,900   472,500                    Other income (expenses)                 Interest income  4,200   4,600   12,300   7,200  Interest expense and bank charges  (1,300)  (2,600)  (5,900)  (8,000)    2,900   2,000   6,400   (800) Net income before income taxes  173,000   221,100   254,300   471,700  Income taxes  9,900   14,300   (32,200)  30,600  Net income $163,100  $206,800  $286,500  $441,100                    Basic and diluted net income per common share $.00  $.00  $.00  $.01                    Weighted average common shares outstanding                 Basic  66,768,023   59,614,698   62,952,473   58,949,377  Diluted  66,893,250   59,990,371   63,069,652   59,322,141                    Nocopi Technologies, Inc. Balance Sheets  September 30,  December 31,    2020  2019    (unaudited)  (audited)  Assets  Current assets       Cash $1,428,900  $688,000  Accounts receivable less $5,000 allowance for doubtful accounts  1,023,000   1,352,300  Inventory  286,600   127,900  Prepaid and other  21,200   135,000  Total current assets  2,759,700   2,303,200            Fixed assets         Leasehold improvements  27,800   24,200  Furniture, fixtures and equipment  163,700   252,500     191,500   276,700  Less: accumulated depreciation and amortization  98,100   206,600     93,400   70,100  Other assets         Long-term receivables  671,100   957,000  Operating lease right of use - building  171,000   202,000     842,100   1,159,000  Total assets $3,695,200  $3,532,300     Liabilities and Stockholders' Equity            Current liabilities         Convertible debentures $–  $97,900  Accounts payable  58,300   44,300  Accrued expenses  165,500   231,600  Income taxes  22,200   52,400  Operating lease liability, current  43,800   41,700  Total current liabilities  289,800   467,900            Other liabilities         Accrued expenses, non-current  47,000   67,000  Deferred income taxes  –   47,400  Operating lease liability, non-current  127,200   160,300     174,200   274,700            Stockholders' equity         Common stock, $0.01 par value         Authorized – 75,000,000 shares         Issued and outstanding         2020 – 67,353,690 shares; 2019 – 61,044,698 shares  673,500   610,400  Paid-in capital  12,575,800   12,483,900  Accumulated deficit  (10,018,100)  (10,304,600) Total stockholders' equity  3,231,200   2,789,700  Total liabilities and stockholders' equity $3,695,200  $3,532,300

  • SRK Capital is Betting on Nocopi Technologies (NNUP) Stock
    Insider Monkey

    SRK Capital is Betting on Nocopi Technologies (NNUP) Stock

    SRK Capital recently released its Q2 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 44.8% for the second quarter, outperforming its benchmark, the S&P 500 Index which returned 20.5% in the same quarter. You should check out SRK Capital's top 5 stock picks for investors to […]

  • GlobeNewswire

    Nocopi Q2 Revenue Rose 22% Driven by Strong Specialty Reactive Ink Sales; Net Income Declined to $71,000, Reflecting the Accounting Impact of a Four-Year License Extension and COVID-Related Pressures

    KING OF PRUSSIA, Pa., Aug. 14, 2020 (GLOBE NEWSWIRE) -- Nocopi Technologies, Inc. (OTC Pink: NNUP), a developer of specialty reactive inks used in entertainment, toy and educational products as well as in document and product authentication technologies to combat fraud, today announced results for its second quarter ended June 30, 2020 (Q2’20). Q2 Highlights * Revenues rose 22% to $627,300, driven by a 61% increase in Product sales. * Despite an increase in earned royalties in Q2’20 compared to the year-ago period, Nocopi reported revenues from licenses, royalties and fees of $107,100 in Q2’20. This sum does not include approximately $100,000 in quarterly minimum guaranteed royalties received in cash and previously recorded as revenues pursuant to an amended and extended four-year licensing agreement with a major customer. Q2’19 revenue from licenses, royalties and fees were $192,000. * Gross profit decreased 11% to $321,500 on increased product and shipping costs and a lower percentage of higher-margin royalty income within Nocopi’s revenue mix. * Net income decreased to $70,800 from $148,900 in Q2’19, largely due to the accounting impact of the aforementioned licensing agreement, higher operating expenses and a lower gross margin. * Working Capital, including $1.05M of cash, increased to $2.1M at 6/30/20 compared to working capital of $1.9M at 3/31/20 Q1’20 and $1.8M at year-end 2019. * Book value increased to $2.9M at 6/30/20 compared to $2.2M a year ago and $2.8M at 3/31/20.Q2’20 Results Q2’20 revenues rose 22% to $627,300 reflecting a 61% increase in product and other sales, principally due to higher specialty ink shipments to the entertainment and toy product market, offset by a 47% decline in licenses, royalties and fees, principally due to the accounting impact of quarterly guaranteed royalties.  Pursuant to a four year extended licensing agreement, which went into effect on July 1, 2019, Nocopi expects to receive approximately $100,000 in minimum guaranteed royalty payments each quarter, through Q2’23, which payments will not be recorded as revenue.Gross profit decreased to $321,500, or 51% of revenues in Q2’20, from $361,000, or 70% of revenues in Q2 ’19, principally due to the smaller relative contribution from higher-margin royalty revenue and to a lesser extent the impact of higher raw material costs and increased shipping expense largely due to effects of the COVID-19 pandemic.Q2’20 operating expenses increased to $247,900 from $200,600 in Q2 ’20, reflecting increased operational and administrative expense including higher professional fees. In late 2019, Nocopi expanded its ink production operations and staffing to support expected future growth.Reflecting lower gross profit and higher operating expenses Nocopi’s net income declined to $70,800, or $0.001 per diluted share, in Q2’20 vs. $148,900, or $0.003 per diluted share, in Q2’19.Nocopi Chairman and CEO Michael Feinstein commented, “Nocopi achieved double digit revenue growth for the fourth consecutive quarter reflecting strong demand for specialty inks and the COVID-19-related shifting of some ink shipments from Q1 to Q2 due to temporary printing plant closures.“While the COVID-19 pandemic impacted both our top- and bottom-line performance in Q2, we remained solidly profitable in the period. Though we achieved higher earned royalties in Q2’20 versus the year ago period, the accounting treatment of a four-year license extension in 2018 reduced our royalty-related revenues from this customer by approximately $100,000 in the recent quarter.“Despite macro disruptions, first half 2020 specialty ink purchases from our overseas printing partners rose 61% over those in the year-ago period. Importantly, this increase in ink and other product sales is an excellent indicator of future royalty income as Nocopi earns per unit royalties on retail sales of most entertainment products incorporating our ink technologies. This high-margin revenue source plays an important role in enhancing our gross margin and future profitability.“While there are no certainties in the current COVID-19 economic environment, recent business partner activity and their growth plans for new products and geographic expansion provide a favorable outlook for our company over the next few quarters while also confirming our solid competitive position.“From a balance sheet perspective, Nocopi remains in very strong position, with working capital of $2.1M, including $1.1M in cash. Our growing financial strength offers provides us both security to endure further possible COVID-19 business or economic impacts and flexibility to act opportunistically should any attractive investment or M&A situations present themselves.”About Nocopi Technologies (www.nocopi.com) Nocopi develops and markets specialty reactive inks for unique, mess-free applications in the entertainment, toy and educational product markets. Nocopi also develops and markets document and product authentication technologies designed to combat fraudulent document reproduction, product counterfeiting and/or unauthorized product diversion. Nocopi derives revenue from technology licensing agreements as well as from the sale of its proprietary inks and other products to licensees and/or their licensed printers. Nocopi’s products and systems include trade secrets as well as patented technologies.Safe Harbor for Forward-Looking Statements This release may contain projections and other "forward-looking statements" relating to Nocopi’s business, that are often identified by the use of "believes," "expects" or similar expressions. Forward-looking statements involve a number of estimates, assumptions, risks and uncertainties that may cause actual results to differ materially from those anticipated. Forward-looking statements may address uncertainties regarding customer preferences or demand for products incorporating Nocopi technology that underlie the company’s revenue expectations, the company’s ability to develop new products and new product applications, the financial condition of customers and the timeliness of their payments, the impact of fluctuations in currencies, global trade and shipping markets, etc. Actual results could differ from those projected due to numerous factors and uncertainties, and Nocopi can give no assurance that such statements will prove to be correct nor that Nocopi’s actual results of ‎operations, financial condition and performance will not differ materially from those reflected or implied by its forward-‎looking statements. Investors should refer to the risk factors outlined in Nocopi’s Form 10-K, 10-Q and other SEC reports available at www.sec.gov/edgar. Forward-looking statements are made as of the date of this news release; Nocopi assumes no obligation to update these statements.Twitter – Investors: @NNUP_IRInvestor & Media Contacts Chris Eddy or David Collins Catalyst IR 212-924-9800 or nnup@catalyst-ir.com Nocopi Technologies, Inc. Statements of Operations* (unaudited)  Three Months ended June 30  Six Months ended June 30    2020  2019  2020  2019                Revenues             Licenses, royalties and fees* $107,100  $192,000  $271,700  $382,500  Product and other sales  520,200   324,100   875,900   543,000     627,300   516,100   1,147,600   925,500                    Cost of revenues                 Licenses, royalties and fees  58,600   31,600   108,300   56,800  Product and other sales  247,200   123,400   448,800   213,700     305,800   155,000   557,100   270,500  Gross profit  321,500   361,100   590,500   655,000                    Operating expenses                 Research and development  41,900   39,400   83,000   77,400  Sales and marketing  86,000   74,300   170,000   143,200  General and administrative  120,000   86,900   259,700   181,000     247,900   200,600   512,700   401,600  Net income from operations  73,600   160,500   77,800   253,400                    Other income (expenses)                 Interest income  4,300   1,500   8,100   2,600  Interest expense, bank charges and accretion of interest  (2,100)  (2,700)  (4,600)  (5,400)    2,200   (1,200)  3,500   (2,800) Net income before income taxes  75,800   159,300   81,300   250,600  Income taxes  5,000   10,400   (42,100)  16,300  Net income $70,800  $148,900  $123,400  $234,300                    Basic and diluted net income per common share $.00  $.00  $.00  $.00                    Weighted average common shares outstanding                 Basic  61,044,698   58,616,716   61,044,698   58,616,716  Diluted  61,605,985   58,973,280   61,577,129   58,988,005  * Q2’20 revenues from licenses, royalties and fees do not reflect approximately $100,000 in quarterly minimum guaranteed royalties received in cash during Q2’20. These royalties were previously recorded as revenues pursuant to an amended and extended four-year licensing agreement with a major customer. Pursuant to the agreement, which went into effect on July 1, 2019, Nocopi expects to receive approximately $100,000 in minimum guaranteed royalty payments each quarter, through Q2’23, which payments will not be recorded as revenue. Nocopi Technologies, Inc. Balance Sheets  June 30  December 31   2020  2019   (unaudited)  (audited) Assets  Current assets       Cash $1,052,700  $688,000  Accounts receivable less $5,000 allowance for doubtful accounts  1,141,500   1,352,300  Inventory  277,500   127,900  Prepaid and other  95,100   135,000  Total current assets  2,566,800   2,303,200            Fixed assets         Leasehold improvements  27,800   24,200  Furniture, fixtures and equipment  279,400   252,500     307,200   276,700  Less: accumulated depreciation and amortization  215,200   206,600     92,000   70,100  Other assets         Long-term receivable  766,000   957,000  Operating lease right of use – building  181,500   202,000     947,500   1,159,000  Total assets $3,606,300  $3,532,300     Liabilities and Stockholders' Equity  Current liabilities         Convertible debentures $97,900  $97,900  Accounts payable  87,800   44,300  Accrued expenses  214,800   231,600  Income taxes  57,600   52,400  Operating lease liability, current  43,100   41,700  Total current liabilities  501,200   467,900            Other liabilities         Accrued expenses, non-current  53,600   67,000  Deferred income taxes  –   47,400  Operating lease liability, non-current  138,400   160,300     192,000    274,700  Stockholders' equity         Common stock, $0.01 par value         Authorized – 75,000,000 shares         Issued and outstanding – 61,044,698 shares  610,400   610,400  Paid-in capital  12,483,900   12,483,900  Accumulated deficit  (10,181,200)  (10,304,600) Total stockholders' equity  2,913,100   2,789,700  Total liabilities and stockholders' equity $3,606,300  $3,532,300  Nocopi Technologies, Inc. Statements of Cash Flows* (unaudited)  Six Months ended June 30    2020  2019  Operating Activities       Net income $123,400  $234,300  Adjustments to reconcile net income to net cash provided by operating activities         Depreciation and amortization  9,100   2,300  Deferred income taxes  (47,400)  (54,400) Other assets  211,500   (27,800) Other liabilities  (33,900)  208,300               262,700   362,700            (Increase) decrease in assets         Accounts receivable  210,800   (258,800) Inventory  (149,600)  (31,400) Prepaid and other  39,900   (9,600) Increase (decrease) in liabilities         Accounts payable and accrued expenses  26,700   65,100  Taxes on income  5,200   (22,300)    133,000   (257,000) Net cash provided by operating activities  395,700   105,700            Investment Activities         Additions to fixed assets  (31,000)  –  Net cash used in investing activities  (31,000)  –            Increase in cash  364,700   105,700  Cash at beginning of year  688,000   400,800  Cash at end of period $1,052,700  $506,500            Supplemental Disclosure of Non Cash Investing and Financing Activities         Accumulated depreciation and amortization $500  $–  Furniture, fixtures and equipment $(500) $–  Operating lease right of use – building $–  $241,100  Operating lease liability $–  $(241,100)