Chart Events
Performance Outlook
| Previous Close | 0.1380 |
| Open | 0.1450 |
| Bid | N/A x N/A |
| Ask | N/A x N/A |
| Day's Range | 0.1396 - 0.1585 |
| 52 Week Range | 0.0400 - 0.2510 |
| Volume | 253,899 |
| Avg. Volume | 64,315 |
| Market Cap | 9.403M |
| Beta (5Y Monthly) | 1.16 |
| PE Ratio (TTM) | 27.92 |
| EPS (TTM) | 0.0050 |
| Earnings Date | Nov 13, 2020 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | N/A |
- 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
- 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)
