KING OF PRUSSIA, Pa., Nov. 14, 2022 (GLOBE NEWSWIRE) -- Nocopi Technologies, Inc. (OTC Pink: NNUP), a developer of specialty reactive inks today announced results for its third quarter and nine months ended September 30, 2022. Nocopi’s SEC filings are available here.
2022 Q3 Results
2022 Q3 revenue was $685,900, an increase of 119% over 2021 Q3 revenue of $312,500 reflecting higher ink shipments and the renewal of an existing international license agreement for a five-year extension. Excluding the associated royalty revenue from the renewal license agreement, revenue in the quarter compared to 2021 Q3 increased 42% to $444,900, largely reflecting higher specialty ink shipments for licensees in the entertainment and toy product market.
Year to date, product sales through 2022 Q3 continue to be impacted by ongoing congestion experienced in certain Chinese ports from the COVID-19 outbreak and other supply chain disruptions resulting from the lockdowns in certain Asian cities that affect business and production.
Gross profit increased 136% to $493,500 from Q3’21 of $209,200. Gross profit margin was 72% of revenues, an increase from 2021 Q3 gross profit of 67%. The higher gross profit in 2022 Q3 compared to 2021 Q3 was the result of higher revenues from licenses, royalties and fees.
2022 Q3 operating expenses increased 31% to $293,000 from $222,900 in 2021 Q3. The increased operating expenses for the quarter reflect non-recurring legal and filing fees associated with the private placement and reverse stock split.
Net income for the quarter was $206,500, an improvement over 2021 Q3 net income of $1,100.
Highlights
- Quarterly revenue of $685,900 including the license fee renewal of an existing international licensee agreement for a five-year extension, and quarterly net income of $206,500.
- Ended the quarter with cash and cash equivalents of $5.35 million, increased by both cash flow from operations and private placement proceeds of $3.5 million. No placement fees or commissions were paid in connection with the private placement.
- Completed a 1-for-10 reverse stock split during the quarter resulting in 9,251,178 outstanding shares as of November 1, 2022.
- Appointed Michael S. Liebowitz to the board of Directors, increasing the board to six directors, three of whom have been added over the last twelve months.
- Named Matthew Winger as Executive Vice President of Corporate Development to lead business development initiatives, financial planning, and other strategic activities.
Commentary
Nocopi Chairman and CEO Michael Feinstein commented, “Our third quarter sales showed continuing signs of recovery compared to last year. We are working to overcome the remaining headwinds from the global supply chain disruptions and lockdowns. Although this was our second quarter in a row of a continued recovery in our base of business, we are confident that these headwinds will eventually fully subside and believe our business will return to historical demand patterns.
Importantly, over the past quarter, we have been focusing on improving our internal operations. We have expanded our executive team with the appointment of Matthew Winger as Executive Vice President of Corporate Development, as well our board of directors with the appointment of Michael S. Liebowitz. We have started strengthening our relationships with existing customers and have begun new efforts to increase our outreach to new customers and markets.
Our long-term strategic plan remains focused on generating free cash flow through our disciplined cost management and capital allocation plans. Having recently closed on the private placement funding, we are actively focused on pursuing accretive opportunities.
About Nocopi Technologies (www.nocopi.com)
Nocopi Technologies, headquartered in King of Prussia, PA develops and markets specialty reactive inks and licenses these technologies. Nocopi’s ink technologies are backed by proprietary and patented technology. Our inks are marketed for use across a variety of end markets.
Safe Harbor for Forward-Looking Statements
The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "explores," "expects," "anticipates," "continue," "estimate," "project," "intend," and 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 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.
Investor & Media Contacts
610-834-9600
ir@nocopi.com
