Madison Heights-based Nano Magic Seeks to Clean Up Consumer and Industrial Products Market
PEN Inc. at one point made more than $ 10 million a year, according to Berman. Around 2014, things changed as failed research and development projects and mismanagement of money put the company on the verge of going down for good. PEN had exhausted its revolving line of credit, had a significant working capital shortfall and had lost major customers.
Nano Magic is now debt free, according to Berman. In its first full year (2019), the company generated $ 1.5 million in revenue from the sale of its products. Nano Magic in 2020 generated around $ 4.1 million in revenue, Berman said, as the coronavirus pandemic led more and more consumers to purchase cleaning and anti-fog products, causing a windfall for the ‘industry.
The increased sales helped the company reduce its net loss for the year to $ 781,055 from $ 964,987.
âOver the past two years, we’ve made our way,â Berman said. âWhile we’re still not where we want to be, I think it’s important to take a step back to recognize the progress we’ve made. The new equity we’ve raised, in large part thanks to the vision by (Ron Berman), was a big help. “
However, the company encountered difficulties.
The Securities and Exchange Commission in May 2020 issued a 10-day temporary notice stop trading order the company’s common stock (OTC: NMGX) on market information that the company held a patent for a disinfectant that “kills” the coronavirus that causes COVID-19. Berman said a patent was filed in 2014 by PEN Inc. for a disinfectant that protected against human coronavirus, but not for COVID-19. This dossier was approved in 2017 for a disinfectant spray using copper nanoparticles, he said. The product was not marketed as a disinfectant, and the company has also not sought EPA approval, Berman said. The action resumed operations shortly after the suspension and is trade at 5/1000th of a cent after peaking at $ 2.40 per share on April 24, 2020.
âDue to the dark cloud hanging over us with the SEC’s unresolved issue, people are reluctant to support our action,â CEO Berman said. “I am not focusing on the share price. It does not reflect the value of our company. I am optimistic that things will work out.”
“The SEC problem is not tied to the price of the share,” said Erik Gordon, assistant clinical professor at the University of Michigan, who specializes in areas such as entrepreneurship and technology commercialization. . “The company could see things change. That’s always a possibility because of the way the market fluctuates. You’d think that with their products at Walgreens and Lowe’s that would help.”
Berman said the focus is on turning Nano Magic into a strong business.
This focus has led the company to create 40 jobs since October in the areas of sales, marketing, IT, administration, accounting, shipping and receiving and production.
Nano Magic is actively recruiting, but like many other businesses facing a labor shortage, Berman said he’s struggling to find workers. Salary starts at $ 15 an hour and employees are offered benefits and stock options.
“It’s hard for us to find people right now,” he said. “We have used temp agencies and they are struggling to find us temporary work. In other areas, we have done a good job. It’s not like before the pandemic where you would have found a job and got 200 CV. “
With everything going on, the Sylvan Lake resident and Michigan State University graduate is optimistic about the future.
âThe past is behind us,â Berman said. “We got out of the grave. The sky is the limit.”