Wed, May 15, 1:30 PM (72 days ago)
Nocopi Technologies, Inc.'s Form 10-Q for the quarter ending March 31, 2024, reports a significant decline in financial performance compared to the same period in 2023. Total revenues decreased by 33% to $398,300, driven by reductions in licenses, royalties, and product sales. Gross profit also fell to $165,600, representing 42% of total revenues, down from 53% in the prior year. Operating expenses surged to $1,325,200, primarily due to increased stock-based compensation and professional fees. Consequently, the company recorded a net loss of $1,028,200, a stark contrast to the $30,300 net income in Q1 2023. Cash flow from operations was positive at $264,200, and cash reserves increased to $3,600,100. However, the substantial net loss and higher operating costs raise concerns about future profitability. The company maintains a strong working capital position of $9,737,300 and aims to expand through acquisitions and increased market penetration in the entertainment and toy sectors. Despite these plans, uncertainties related to economic conditions, geopolitical instability, and potential supply chain disruptions pose risks to future performance.