Entertainment & Toy Ink Developer Nocopi Reports Cash Balance Grew to $1.9M on Q2 Revenue of $514,000 and Net Income of $43,000
Rhea-AI Summary
Nocopi Technologies, Inc. (OTC Pink: NNUP) reported its Q2 and 6M results for 2021, revealing an 18% revenue decline to $513,900, attributed to lower specialty ink sales, despite a 35% increase in license and royalty revenues. For the six months, total revenues reached $1,125,300, a slight drop from $1,147,600 in 2020. Cash improved to $1.9M, with operating cash flow rising 45%. Although net income decreased to $42,500, the company remains optimistic about its future growth driven by increased adoption of its ink technologies, despite pandemic-related supply chain challenges.
Positive
- Operating cash flow surged 45% to $574,400 in 6M’21 compared to the previous year.
- License and royalty revenue rose by 35% to $144,900 in Q2’21.
- Gross margin improved to 55% in Q2’21 from 51% in Q2’20.
Negative
- Q2’21 revenue declined 18% to $513,900 due to lower specialty ink sales.
- Net income decreased to $42,500 in Q2’21 from $70,800 in Q2’20.
- Specialty ink shipments faced delays linked to pandemic supply chain issues.
News Market Reaction – NNUP
In the trading session that priced this news, NNUP gained 4.33%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
KING OF PRUSSIA, Pa., Aug. 11, 2021 (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 and six months ended June 30, 2021 (Q2’21 & 6M’21). Nocopi’s SEC filings are available here.
Highlights
- Q2’21 revenue declined
18% to$513,900 , reflecting lower specialty ink sales, offset by a35% increase in revenues from licenses, royalties and fees. Revenues for 6M’21 were$1,125,300 versus 6M’20 revenues of$1,147,600 . - Cash grew
$0.2M to$1.9M vs.$1.7M in Q1'21 and increased$0.5M vs. Q4'20. - 6M’21 gross profit increased
14% to$671,200 compared to 6M’20 as prices of certain raw materials moderated from abnormal pandemic-related levels. - Net income before income taxes for 6M’21 increased
108% to$169,200 versus 6M’20 reflecting increased gross margin as the mix of revenue leaned more toward higher margin royalty and license activity.
Nocopi Chairman and CEO Michael Feinstein commented, “Nocopi continues to be a solidly profitable and cash flow generating business. However, our specialty ink sales and royalty revenue have been and continue to be subject to some to pandemic-related fluctuations from downstream impacts on our supply chain, entertainment industry release schedules and consumer travel and shopping patterns.
"Importantly, cash collections remain strong, with operating cash flow rising
"While the timing of specialty ink orders caused Q2’21 revenue to decrease on a sequential and year-ago basis, our major licensees in the entertainment and toy space have never been more optimistic regarding the outlook for products featuring our specialty ink technologies. These customers have steadily increased use of Nocopi ink technologies over the last two years, and we fully expect this to continue going forward, though with the some variability due to logistics challenges, pandemic travel and shopping constraints and the timing of our customers’ product rollouts, geographic expansion and other initiatives.
"Despite near-term logistics issues which are driving higher costs and shipment delays, we remain confident in our growth prospects over the balance of 2021 and subsequent years. Our outlook is rooted in the expected, gradual rebound in consumer traffic at the approximately 80,000 pre-pandemic bricks & mortar retailers across North America that carried products featuring our specialty inks. Many of these include retailers at airports, train stations and highway rest stops which are important contributors to the sale of consumer products utilizing our ink technologies. While this broad retail footprint was substantially impacted by store closures and reduced foot traffic due to the beginning of the COVID-19 pandemic in Q1’20, it was offset to a meaningful degree by improving online sales. Additionally, we expect to benefit from our licensee’s planned expansion into new European markets as health and economic conditions allow, along with the continued development of new product offerings leveraging our specialty ink technologies.”
Q2’21 Results
Q2’21 revenue declined
Gross profit declined
Q2’21 operating expenses declined slightly to
Reflecting a decrease in gross profit, Nocopi’s net income decreased to
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_IR
Investor & Media Contacts
Chris Eddy or David Collins
Catalyst IR
212-924-9800
nnup@catalyst-ir.com
Nocopi Technologies, Inc.
Statements of Comprehensive Income
(unaudited)
| Three Months ended June 30 | Six Months ended June 30 | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Revenues | |||||||||||||||
| Licenses, royalties and fees | $ | 144,900 | $ | 107,100 | $ | 330,400 | $ | 271,700 | |||||||
| Product and other sales | 369,000 | 520,200 | 794,900 | 875,900 | |||||||||||
| 513,900 | 627,300 | 1,125,300 | 1,147,600 | ||||||||||||
| Cost of revenues | |||||||||||||||
| Licenses, royalties and fees | 49,500 | 58,600 | 96,600 | 108,300 | |||||||||||
| Product and other sales | 184,300 | 247,200 | 357,500 | 448,800 | |||||||||||
| 233,800 | 305,800 | 454,100 | 557,100 | ||||||||||||
| Gross profit | 280,100 | 321,500 | 671,200 | 590,500 | |||||||||||
| Operating expenses | |||||||||||||||
| Research and development | 45,800 | 41,900 | 90,300 | 83,000 | |||||||||||
| Sales and marketing | 74,200 | 86,000 | 157,400 | 170,000 | |||||||||||
| General and administrative | 117,700 | 120,000 | 263,200 | 259,700 | |||||||||||
| 237,700 | 247,900 | 510,900 | 512,700 | ||||||||||||
| Net income from operations | 42,400 | 73,600 | 160,300 | 77,800 | |||||||||||
| Other income (expenses) | |||||||||||||||
| Interest income | 5,300 | 4,300 | 10,100 | 8,100 | |||||||||||
| Interest expense and bank charges | (600 | ) | (2,100 | ) | (1,200 | ) | (4,600 | ) | |||||||
| 4,700 | 2,200 | 8,900 | 3,500 | ||||||||||||
| Net income before income taxes | 47,100 | 75,800 | 169,200 | 81,300 | |||||||||||
| Income taxes | 4,600 | 5,000 | 11,900 | (42,100 | ) | ||||||||||
| Net income | $ | 42,500 | $ | 70,800 | $ | 157,300 | $ | 123,400 | |||||||
| Basic and diluted net income per common share | $ | .00 | $ | .00 | $ | .00 | $ | .00 | |||||||
| Weighted average common shares outstanding | |||||||||||||||
| Basic | 67,400,812 | 61,044,698 | 67,377,251 | 61,044,698 | |||||||||||
| Diluted | 67,400,812 | 61,605,985 | 67,377,251 | 61,577,129 | |||||||||||
Nocopi Technologies, Inc.
Balance Sheets
| June 30 | December 31 | ||||||
| 2021 | 2020 | ||||||
| (unaudited) | (audited) | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash | $ | 1,908,400 | $ | 1,362,800 | |||
| Accounts receivable less | 969,100 | 1,280,800 | |||||
| Inventory | 486,500 | 324,800 | |||||
| Prepaid and other | 29,400 | 97,800 | |||||
| Total current assets | 3,393,400 | 3,066,200 | |||||
| Fixed assets | |||||||
| Leasehold improvements | 58,400 | 27,800 | |||||
| Furniture, fixtures and equipment | 164,100 | 163,700 | |||||
| 222,500 | 191,500 | ||||||
| Less: accumulated depreciation and amortization | 116,400 | 104,300 | |||||
| 106,100 | 87,200 | ||||||
| Other assets | |||||||
| Long-term receivable | 371,500 | 559,500 | |||||
| Operating lease right of use – building | 138,400 | 160,300 | |||||
| 509,900 | 719,800 | ||||||
| Total assets | $ | 4,009,400 | $ | 3,873,200 | |||
| Liabilities and Stockholders' Equity | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 67,000 | $ | 5,700 | |||
| Accrued expenses | 154,600 | 178,600 | |||||
| Income taxes | 10,200 | 36,300 | |||||
| Operating lease liability – current | 46,000 | 44,500 | |||||
| Total current liabilities | 277,800 | 265,100 | |||||
| Other liabilities | |||||||
| Accrued expenses – non-current | 26,000 | 39,200 | |||||
| Operating lease liability – non-current | 92,400 | 115,800 | |||||
| 118,400 | 155,000 | ||||||
| Stockholders' equity | |||||||
| Common stock, | |||||||
| Authorized – 75,000,000 shares | |||||||
| Issued and outstanding | |||||||
| 2021 – 67,495,055; 2020 – 67,353,690 shares | 675,000 | 673,500 | |||||
| Paid-in capital | 12,577,100 | 12,575,800 | |||||
| Accumulated deficit | (9,638,900 | ) | (9,796,200 | ) | |||
| Total stockholders' equity | 3,613,200 | 3,453,100 | |||||
| Total liabilities and stockholders' equity | $ | 4,009,400 | $ | 3,873,200 | |||
