Nano Magic Inc (OTC: NMGX) is a nanotechnology products company that formulates and sells specialty surface-treatment products for consumer and industrial applications. Revenue comes from transactional sales of cleaning, anti-fog, anti-dirt, and surface-protection products sold through retail and institutional channels. The company operates out of Michigan and competes in the optical segment against Hilco Accessories, OptiSource, and Amcon Laboratories, among other privately held U.S. packaging and catalog companies. Products are protected primarily by trade secrets rather than patents, a strategy the company compares to practices in the fragrance and flavors industry. As of the 10-K filed April 3, 2024 for fiscal year ended December 31, 2023, the company reported operating losses, reduced headcount, and a working capital model that requires paying for materials and labor before realizing revenue from customers. Nano Magic has issued shares and warrants to raise capital and has partially paid rent to its Michigan landlord in stock.

Revenue model

Transactional sales of specialty nanotechnology surface-treatment products to retail consumers and institutional buyers. Products are sold as liquids and as wet and dry towelettes through retail and institutional channels. No subscription or royalty model is disclosed in the filing.

Products and services

Consumer and industrial surface-treatment products using nanotechnology, including anti-fog coatings, anti-dirt and anti-grime solutions, scuff and wear resistance coatings, and cleaning and protection products. Consumer products are sold as liquids and wet and dry towelettes. Industrial coating products are sold in liquid form for commercial application. Coatings are described as self-assembling and 20 nanometers or less in thickness.

Customers and end markets

Retail consumers and institutional buyers including opticians and optical stores. The optical segment is described as the company's historically core sales channel. No specific customer concentration percentages are disclosed in the filing excerpts.

Value-chain role

Manufacturer and seller of proprietary nanotechnology-based surface-treatment formulations. The company formulates products using trade secret intellectual property in surface science, molecular self-assembly, transparent composites, and surfactants, then sells finished goods to retail and institutional customers. Raw materials and packaging are sourced from external vendors.

Geographic exposure

Principal office located in Michigan. Filing does not disclose international revenue or geographic revenue breakdown.

Competitors

Hilco Accessories, OptiSource, Amcon Laboratories

Source: SEC 10-K, filed 2024-04-03

Industry: Coating, Engraving & Allied Services Peers: C-Bond Systems, Inc ENERTECK CORP Sherwin-Williams Co