Nocopi’s Q3 Cash Position Improved 12% from June 2021 to $2.1M Despite Drop in Product Revenue Related to Customer Supply Chain Challenges, Names New Independent Director

King of Prussia, PA, November 12, 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 third quarter and nine months ended September 30, 2021 (Q3’21 & 9M’21). Nocopi’s SEC filings are available here.

Q3’21 Results

Q3’21 revenue declined 59% to $312,500 reflecting a decrease in product and other sales, principally due to specialty ink shipments for licensees in the entertainment and toy product market. In contrast, license and royalty revenue rose 45% to $222,500 reflecting growth in royalty income from toy and entertainment market customers. Revenue from security market customers was relatively unchanged at approximately $55,500 in Q3’21, as growth in this market continues to be negatively affected by the COVID-19 pandemic, but increased sequentially each of the last two quarters in 2021. The security market represented approximately 18% of Q3’21 revenue. 

Gross profit declined 51% to $209,200 in Q3’21 from $425,500 in Q3’20, reflecting an approximately $500,000 decline in product sales. Q3’21 gross margin rose to 67% from 56% in Q3’20, due to a greater contribution from higher margin license and royalty revenue in the period.

Q3’21 operating expenses declined 12% to $222,900 from $255,400 in Q3’20, reflecting ongoing expense management and lower commission expense due to lower revenue.

Reflecting a decrease in gross profit, Nocopi’s net income decreased to $1,100, or $0.00 per diluted share, in Q3’21, compared to $163,100, or $0.00 per diluted share, in Q3’20, reflecting an income tax cash gain of $10,200 taken in Q3’21 as the Company’s 2020 tax year obligations were less than initially expensed. Net cash from operations decreased to $228,200 in Q3’21, compared to $372,800 in Q3’20 reflecting the aforementioned decrease in specialty ink shipments the last two quarters.  Net cash from operations for the nine months ended September 30, 2021 increased 4% to $802,600, despite a 40% decline in operating income, as cash collections remained strong and contributed to an over $400,000 increase in working capital since the start of 2021.

Nocopi’s Q3’21 results were significantly impacted by a decrease in orders for its specialty ink technologies as major licensees deferred production activity in response to substantial challenges, delays and higher costs they are experiencing in both printing and producing products in Asia and then shipping to the U.S. and other global markets. Consumer demand for the products marketed by Nocopi’s licensees continues to be strong and growing.


  • Nocopi reported breakeven operations in Q3’21 despite a 59% decrease in revenue to $312,500, due to lower specialty ink sales offset in part by a 45% increase in revenues from licenses, royalties and fees. Revenues for 9M’21 were $1,437,800 versus 9M’20 revenues of $1,902,400. 
  • Nocopi appointed independent director Joe Raymond to its Board of Directors, increasing the board to four members, three of whom are independent. 
  • Q3’21 cash rose $0.2M to $2.1M vs. $1.9M in Q2’21 and $1.4M at year-end 2020.

Nocopi Chairman and CEO Michael Feinstein commented, “Persistent global supply chain disruptions, shipping delays and higher costs being faced by our licensees have resulted in a drop in their production of new products, translating into a decline in our specialty ink orders during the third quarter. While we are confident that these issues will be resolved, and believe our business will return to historical demand patterns and growth, it is too early to try to predict the scope or timing of such a rebound.

Importantly, over the past few years we have placed our company on a very solid financial footing, growing working capital to $3.2M from $43,300 at September 30, 2017, just four years ago, and have forged strong, long-term relationships with key customers. Our long-term strategic plan remains focused on cash generation and the conservative stewardship of the Company’s capital – both in terms of disciplined cost management and our capital allocation plans. Despite near-term business uncertainties, our sound financial position enables Nocopi to weather these challenges while also positioning us to pursue opportunistic stockholder value creation opportunities that may unfold in this disrupted environment. As such we feel very well positioned to resume our growth as new product opportunities and expanded licensee geographies take hold.

Importantly, our hybrid business model – which combines product sales with royalty payments – has enabled Nocopi to grow our cash position by $1.5M since the close of 2019, and to deliver breakeven results and positive cash flow in the third quarter. Our major licensees in the entertainment and toy space continue to be quite optimistic regarding the longer-term outlook for products featuring our specialty ink technologies, a confidence we share given the longer-term growth trends.

Nocopi has recently named Joe Raymond as our third independent Director. Joe brings business and capital markets experience to guide and support our corporate strategy and growth objectives. Joe is a talented investment analyst specializing in small-cap and microcap securities and shares our belief in Nocopi’s long term outlook.”

About Nocopi Technologies (

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 

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 Forward-looking statements are made as of the date of this news release; Nocopi assumes no obligation to update these statements.

Nocopi Technologies, Inc. Statements of Operations Q3- 2021 (PDF)

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