KING OF PRUSSIA, Pa., March 31, 2023 (GLOBE NEWSWIRE) -- Nocopi Technologies, Inc. (OTC Pink: NNUP), a developer of specialty reactive inks today announced results for its fourth quarter and twelve months ended December 31, 2022. Nocopi’s SEC filings are available here.
2022 Q4 Results
2022 Q4 revenue was $3,087,600, a substantial increase over 2022 Q4 revenue of $514,100 that largely reflects increased licensee revenue from the renewal of the company’s largest licensee for a new five-year extension term. Additionally, the company entered into a new license agreement with a new domestic and international licensee in the children’s entertainment space. Excluding licenses and royalty revenue, revenue in the fourth quarter compared to 2021 Q4 for product and other sales were negatively impacted from a modest decline in specialty ink shipments that were down approximately 10.5%.
Gross profit increased to $2,919,700 from 2021 Q4 of $209,200. Gross profit margin was 94.6% of revenues, an increase from 2021 Q3 gross profit of 64.9%. The higher gross profit in 2022 Q4 compared to 2021 Q4 was the result of higher mix of revenue generated from guaranteed royalty revenues recognized from licenses, royalties, and fees from our licensees.
Operating expenses in the quarter increased 24% to $563,200 from $454,800 in 2021 Q4. The majority of the operating expense increase for the quarter was primarily driven by increased sales and marketing expenses of $190,400 associated with the licensee agreements renewals and additions, offset with a modest decline in legal expense for the quarter as compared to 2021 Q4.
Net income for the fourth quarter was $2,107,000 an improvement over 2021 Q4 net loss of $109,000.
2022 Full Year Results
- Full year net sales for 2022 of $4,627,200 and net income of $1,813,100, verse 2021 net sales of $1,951,900 and net income of $49,400.
- During 2022, we have renewed and extended our licensing agreements with three of our licensees as well as entered into a new license agreement in Q4 in the children’s entertainment space.
- Ended the year with cash and cash equivalents of $5.34 million and a debt free balance sheet.
- Refreshed our board of directors with three new directors appointed in the last twelve months, for a total of six currently serving, four of whom are independent directors.
- Remain focused on accelerating our growth through improving our operations and pursuing accretive expansion opportunities through a merger or acquisition transaction.
Commentary
Nocopi Chairman and CEO Michael Feinstein commented, “Fiscal 2022 marks the seventh consecutive year of profitable operations at Nocopi Technologies. We encountered challenging headwinds from supply chain constraints and global economic conditions in late 2021 into 2022, but we remain focused on growing our business and expanding our customer base as we enter 2023 and beyond.
We are pleased to announce that during the past year, we have renewed and extended our licensing agreements with three of our licensees for multiyear agreements. Notably, we executed a five-year extension with our largest domestic licensee, which represents the longest extension term we have ever done in our history with this licensee. In addition, in the fourth quarter, we have entered into a new license in the children’s entertainment space.
We anticipate that our many licensees will continue to offer innovative products utilizing our technologies and will continue to expand both in the domestic and international marketplaces. We also continue to create new ink technologies in attempt to increase the offerings of our licensee’s product portfolios. Additionally, in attempt to accelerate our growth, we are pushing forward with new sales distribution channels to expand our customer base for our portfolio of ink technologies.
In regard to executing our long-term strategic plans, Nocopi is pursuing a highly disciplined approach in looking for attractive opportunities to expand by merger or acquisition. Given the backdrop of the current financial conditions, we will remain disciplined in our capital deployment strategy. Our long-term intentions are focused around growing our free cash flow.”
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, other risks to which the company is subject; other factors beyond the company's control.. 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 described by Nocopi in Item 1.A "Risk Factors" in its most recent 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
