Entertainment & Toy Ink Developer Nocopi Reports Cash Balance Grew to $1.9M on Q2 Revenue of $514,000 and Net Income of $43,000

King of Prussia, PA, August 11, 2021 – 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.


  • Q2’21 revenue declined 18% to $513,900, reflecting lower specialty ink sales, offset by a 35% 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 45% in the last six months to $574,400 compared to the year-ago period, driving our cash position to $1.9M at the close of Q2’21 from $1.4M at year-end 2020. Our growing cash balance reflects the efficiency of our operations, receivables collections and a quarterly $100,000 minimum guarantee payment from our largest licensee, which is not reflected in our income statement.

“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 18% to $513,900 reflecting a 29% decrease in product and other sales, principally due to specialty ink shipments for licensees in the entertainment and toy product market. License and royalty revenue however rose 35% to $144,900 compared to a pandemic-challenged Q2’20 primarily from long standing customers in the toy and entertainment segment. Revenue from security market customers was relatively unchanged at approximately $52,300 in Q2’21 as this segment continues to be negatively affected by the COVID-19 pandemic. The security market represented approximately 10% of Q2’21 revenue. 

Gross profit declined 13% to $280,100 in Q2’21 from $321,500 in Q2’20, reflecting an approximately $150,000 decline in product sales. Q2’21 gross margin rose to 55% from 51% in Q2’20, due to a greater contribution from higher margin license and royalty revenue to the overall topline and the normalization of certain raw materials prices to the levels that existed prior to the COVID-19 pandemic. 

Q2’21 operating expenses declined slightly to $237,700 from $247,900 in Q2’20, reflecting ongoing expense management and lower commission expense due to lower revenue.

Reflecting a decrease in gross profit, Nocopi’s net income decreased to $42,500, or $0.00 per diluted share, in Q2’21, compared to $70,800, or $0.00 per diluted share, in Q2’20.  Net cash from operations increased to $209,000 in Q2’21, compared to negative ($129,200) in Q2’20 as accounts receivable turned positive.  Net cash from operations for the six months ended June 30, 2021 increased 45% to $574,400 as collections continue unabated while working capital also increased by over $300,000 since the start of 2021.

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.

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