Nocopi Technologies Stock

Nocopi Technologies, Inc. develops and markets specialty reactive inks for multiple applications across various industries.

The company's specialty inks are used by its customers for a range of purposes from bringing entertainment products to life with a variety of color activations to providing document and brand authentication for security purposes aimed at reducing losses caused by fraudulent document reproduction or by product counterfeiting and/or diversion. The company's primary markets are the large educational and toy products industry and the document and product authentication industry. The company derives its revenues primarily from licensing its technologies on an exclusive or non-exclusive basis to licensees who incorporate its technologies into their product offering and from selling products incorporating its technologies to the licensees or to their licensed printers.

The company is a niche formulator of specialty inks and its specialty ink portfolio is backed by years of research and development efforts, trade secrets, and several patents the company.

The company serves end markets that include children entertainment and toy products and anti-counterfeiting, anti-diversion segments that include industrial marking, security packaging for cosmetics and consumer products, and point of sales protection. The company derives its revenues primarily from product sales of its inks, as well as from licensing and royalty fees of its technologies on an exclusive or non-exclusive basis to licensees who incorporate its technologies into their product offering and from selling products incorporating its technologies to the licensees or to their licensed printers.

Entertainment and Toy Technologies and Products

Across the Entertainment and Toy Products category, the company markets its Rub-it & Color technology, which consists of specialty inks that are produced in a variety of colors and can be revealed by rubbing with a fingernail or other firm object, such as a plastic pen cap. Rub-it & Color ink technology can be used for coloring books, activity kits, play sheets, single use place mats, greeting cards, board games, promotional products, or any other paper-based application that needs some fun factor added.

The company's patented, revolutionary, and award-winning Rub-it & Color technology can be utilized across a variety of products and applications needing some fun factor while still providing safe and non-toxic conditions that conform to ASTM D4236 and F-963, and other toxicology tests.

The company licenses its Rub-it & Color technology through various license agreements that can be for an exclusive and non-exclusive uses. These agreements cover both domestic and international geographies and can include specific distribution channels and specific lines of products and applications. The company continues to pursue additional licensing opportunities for its Rub-it & Color ink technology in the large worldwide entertainment and toy products market; and it also seeks to renew its existing license agreements that are near expiration for extension terms.

Anti-Counterfeiting and Anti-Diversion Technologies and Products

The company's Copimark and Rub & Reveal technologies provide proprietary document authentication systems that are useful to businesses and brand owners desiring to authenticate a wide variety of printed materials and products. The company's Copimark system enables businesses to print invisibly on certain areas of a document or packaging. When authentication of certain document or packaging is required, the invisible printing can be activated or revealed by use of a special highlighter pen. Other variations of its Copimark technology involve multiple color responses from a common pen, visible marks of one color that turn another color with the pen or visible and invisible marks that turn into a multicolored image. The company's Rub & Reveal system permits the invisible printing of an authenticating symbol or code that can be revealed by rubbing a fingernail over the printed area.

The company's technologies provide users with the ability to authenticate documents and detect counterfeit documents. Applications include the authentication of documents having intrinsic value, such as merchandise receipts, checks, travelers' checks, gift certificates and event tickets, and the authentication of product labeling and packaging. When applied to product labels and packaging, its systems allow detection of counterfeit products, the labels and packaging of which would not contain the authenticating marks invisibly printed on the packaging or labels of the legitimate product.

The company's ink technology is also utilized in retail receipt and document fraud markets through licensing arrangements with four printers and distributors in the United States and Canada who provide loss prevention products to retailers and other outlets. The company markets these technologies through the use of licensed printers and distributors.

Contrast Technologies is a former affiliate of the company that, since June 2003, has held a perpetual royalty-free license to utilize certain of its anti-counterfeiting and anti-diversion technologies in Europe.

Strategy

The key elements of the company's strategy include expanding its business through acquisitions of other companies with competing or complementary services, technologies, or businesses in order to expand its product and service offerings. The company is actively engaged in the process to identify acquisition candidates and negotiate transactions.

Marketing

The company's marketing efforts are focused on commercializing its developed technologies across current and new geographic and market areas. The company sells products through both multiyear license agreements with its existing customers, as well as direct sales to a range of end customers through the company's sales staff. The company primarily uses truck carriers and freight service providers to transport its products to customers from its manufacturing facility. The company's marketing approach utilizes its dynamic production capabilities of its products and technologies.

Major Customers

During 2022, the company made sales or obtained revenues equal to 10% or more of its 2022 total revenues from two non-affiliated customers who individually accounted for approximately 66% and 19%, respectively, of 2022 revenues of the company.

Patents

The company has been granted various patents in the United States, Canada, South Africa, Saudi Arabia, Australia, New Zealand, Japan, France, the United Kingdom, Belgium, the Netherlands, Germany, Austria, Italy, Sweden, Switzerland, Luxembourg, and Liechtenstein. The company has patent protection on substantially all of its security inks, including the RUB & REVEAL system, and on its Rub-it & Color technology.

Research and Development

During the year ended December 31, 2022, the company expended approximately $140,400 on research and development.

History

Nocopi Technologies, Inc. was founded in 1983. The company was incorporated in 1990.