OTC:NNUP
NOCOPI TECHNOLOGIES INC/MD/
A specialized manufacturer delivering cutting-edge material processing technologies to global industrial markets.
Key Metrics
Investment Thesis
Bull Case
The large cash balance of $10.8M provides a substantial runway for the company to navigate current losses and fund R&D without immediate dilution; if the recent revenue drop was temporary or cyclical, the underlying technology platform could still capture market share in expanding industrial niches.
Bear Case
Operating at a loss while revenue halves year-over-year signals a fundamentally deteriorating business model that is unlikely to self-correct without major strategic pivots; the heavy dependence on interest income rather than operational earnings exposes the company to rate volatility and highlights weak core profitability.
About NOCOPI TECHNOLOGIES INC/MD/
NOCOPI Technologies Inc. specializes in advanced manufacturing solutions, leveraging proprietary technology to serve industrial and commercial sectors with innovative materials processing equipment.
Analysis
Management Discussion
Despite a massive one-time cash inflow of $8.0M from investing activities, the company reported a net loss of $2.7M driven by high operating expenses exceeding gross profit; while non-cash adjustments and share-based compensation totaled over $6.8M, the core business failed to generate positive operating cash flow, resulting in a significant decline in revenue trend.
Industry Overview
The industrial manufacturing equipment sector faces intense competition and cyclical demand fluctuations, often penalizing firms with shrinking revenue trends and deteriorating unit economics.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $4.6M | $2.1M | $2.1M |
| Cost of Revenue | $727.7K | $982.0K | $1.0M |
| Gross Profit | $3.9M | $1.1M | $1.1M |
| Operating Expenses | $1.9M | $3.0M | $4.4M |
| Operating Income | $2.0M | $-1.9M | $-3.3M |
| R&D | $140.4K | $163.4K | $178.2K |
| G&A | $1.2M | $2.5M | $3.9M |
| Marketing | $494.5K | $270.8K | $322.4K |
| Stock-Based Comp | $0 | $1.3M | $2.7M |
| D&A | $34.1K | $47.0K | $29.7K |
| Other OpEx | $0 | $0 | $0 |
| Non-Operating Income | $62.2K | $312.0K | $621.4K |
| Interest Expense | $2.0K | $14.9K | $23.3K |
| Interest Income | — | — | $560.7K |
| Pre-Tax Income | $2.1M | $-1.6M | $-2.7M |
| Income Tax | $294.5K | $-122.7K | $0 |
| Continuing Ops | $1.8M | $-1.4M | $-2.7M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $1.8M | $-1.4M | $-2.7M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $1.8M | $-1.4M | $-2.7M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $7.0M | $12.1M | $12.6M |
| Cash & Equivalents | $5.3M | $2.3M | $10.8M |
| Marketable Securities | — | $8.0M | — |
| Accounts Receivable | $1.1M | $1.1M | $1.2M |
| Inventory | $486.4K | $448.0K | $349.6K |
| Prepaid Expenses | $103.3K | $121.8K | $155.7K |
| Other Current Assets | $0 | $160.0K | $0 |
| Long-Term Assets | $2.6M | $1.9M | $1.3M |
| PP&E (Net) | $55.0K | $36.5K | $16.7K |
| Operating Leases | $68.3K | $17.6K | $32.4K |
| Other LT Assets | $2.5M | $1.8M | $1.3M |
| Total Assets | $9.6M | $14.0M | $13.9M |
| Current Liabilities | $609.2K | $1.5M | $191.2K |
| Accounts Payable | $97.7K | $27.5K | $20.9K |
| Current Leases | $50.7K | $17.6K | $35.2K |
| Taxes Payable | $287.1K | $0 | — |
| Other Current Liab | $0 | $1.3M | $26.8K |
| Long-Term Liabilities | $189.8K | $128.6K | $90.4K |
| LT Operating Leases | $17.6K | $0 | — |
| Other LT Liab | $172.2K | $128.6K | — |
| Total Liabilities | $799.0K | $1.6M | $281.6K |
| Shareholders' Equity | $8.8M | $12.4M | $13.6M |
| Paid-In Capital | $16.7M | $21.6M | $25.6M |
| Retained Earnings | $-7.9M | $-9.4M | $-12.0M |
| Total L&E | $9.6M | $14.0M | $13.9M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $1.8M | $-1.4M | $-2.7M |
| Non-Cash Adjustments | $18.3K | $2.6M | $4.1M |
| Working Capital Changes | $-1.8M | $-1.2M | $-794.4K |
| Cash from Operations | $-8.1K | $-19.3K | $594.8K |
| Capital Expenditures | $800 | $28.5K | $9.9K |
| Cash from Investing | $-800 | $-3.6M | $8.0M |
| Cash from Financing | $3.5M | $5.0M | $0 |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $3.5M | $1.4M | $8.6M |
| Beginning Cash | $1.8M | $917.4K | $2.3M |
| Ending Cash | $5.3M | $2.3M | $10.8M |
Frequently Asked Questions
How does NOCOPI TECHNOLOGIES INC/MD/ make money?
Core revenue is generated from the sale of proprietary manufacturing machinery and custom material processing systems, supplemented by after-market service contracts and technical support agreements for installed base customers.
What are the main risks for NNUP?
Significant revenue contraction from $4.6M to $2.1M over recent years indicates potential market headwinds or loss of major contracts; substantial net losses and a deep retained earnings deficit threaten long-term liquidity; heavy reliance on interest income suggests weak operational cash generation relative to debt servicing needs.
What is NNUP's competitive advantage?
The company holds a distinct technological edge in niche material processing applications, maintains high switching costs due to specialized integration with client production lines, and benefits from strong intellectual property protection on its core patents.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.