Nocopi Technologies Reports Third Quarter Financial Results

KING OF PRUSSIA, Pa., Nov. 14, 2023 (GLOBE NEWSWIRE) -- Nocopi Technologies, Inc. (OTC: NNUP), a developer of specialty reactive inks today announced results for its third quarter ended September 30, 2023. Nocopi’s SEC filings are available here.

2023 Q3 Results

2023 Q3 reported revenue was $575,100, down 16.2% compared to revenue of $685,900 in 2022 Q3, which included $241,000 of associated royalty revenue from a renewal license agreement. Excluding this renewal license agreement revenue in 2022 Q3, 2023 Q3 reported revenue would have been up 29% from 2022 Q2. The overall decrease in revenue compared to 2022 Q3 was largely the result of lower license and royalty revenue this quarter but was partially offset by an 84.7% increase in product and other sales in the quarter totaling $438,200 compared to $237,300 last year in 2022 Q3. The increase in product and other sales was the result of increased demand from third party authorized printers used by two of our major licensees in the entertainment and toy products markets.

Gross profit decreased to $265,100 in the quarter from $493,500 during 2022 Q3. For the third quarter, gross profit margin came in at 46.1% on a blended basis, which decreased from 2022 Q3 gross profit margin of 71.9%, principally due to a smaller dollar contribution from license and royalty, combined with a lower gross margin in product sales resulting from the continued elevation in raw materials prices.

2023 Q3 operating expenses increased to $944,800 from $293,000 in 2022 Q3, reflecting an approximate $651,800 increase. The elevated expenses are largely caused by two factors. First, we continued to invest in our corporate infrastructure as we prepare the company for growth and expansion. Second, we incurred significant costs associated with the retirements and severances of both our former chief financial officer and chief executive officer.

Pretax loss for the quarter was $613,900 compared to a gain of $206,500 during 2022 Q3. Net loss for the quarter came in at $453,300, compared to net income of $206,500 in 2022 Q3.

Net cashflow from operations during the nine months ended September 30, 2023 was $167,200, which was higher on a year-over-year basis by $157,400 when compared to cashflow from operations of $9,800 for the same period of 2022.

Cash used in investing activities for the first nine months ended September 30, 2023 was $28,500 compared to $800 in the first nine months ended September 30, 2022. Cash balance in 2023 Q3 quarter-end increased $5,138,700 to $10,476,500.