NTICHIGH SIGNALFINANCIAL10-K

NTIC experienced a dramatic 99.7% collapse in net income from $5.4M to just $18K despite maintaining positive cash position.

The near-complete elimination of profitability combined with a 67% drop in operating income suggests severe operational challenges or one-time charges that have fundamentally impacted the company's earnings power. While cash increased and the company maintained operations, the magnitude of the profit decline requires immediate investor attention to understand the underlying causes.

Comparing 2025-11-20 vs 2024-11-19View on EDGAR →
FINANCIAL ANALYSIS

NTIC's financial performance deteriorated significantly with net income collapsing 99.7% and operating cash flow declining 58.5%, indicating serious operational challenges. However, the company maintained financial flexibility with cash increasing 46% to $7.3M and reduced capital expenditures by 54%, suggesting management is conserving resources. The 34% increase in current liabilities alongside the profit collapse creates a concerning picture of a company under financial stress despite adequate liquidity.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
-99.7%
$5.4M→$18K

Net income declined 99.7% — review whether driven by operations, interest costs, or non-recurring items.

Operating Income
P&L
-67.3%
$7.9M→$2.6M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Operating Cash Flow
Cash Flow
-58.5%
$5.9M→$2.4M

Operating cash flow fell 58.5% — earnings quality concerns; investigate working capital changes and non-cash items.

Capital Expenditure
Cash Flow
-53.7%
$3.3M→$1.5M

Capex reduced 53.7% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Cash & Equivalents
Balance Sheet
+46.4%
$5.0M→$7.3M

Cash position surged 46.4% — strong cash generation or capital raise providing significant financial cushion.

Share Buybacks
Cash Flow
+41.3%
$139K→$196K

Share repurchases increased 41.3% — management returning capital, signals confidence in intrinsic value.

Current Liabilities
Balance Sheet
+33.6%
$17.9M→$23.9M

Current liabilities surged 33.6% — significant near-term obligations; verify ability to meet short-term debt.

Interest Expense
P&L
-26.3%
$462K→$340K

Interest expense declined — debt repayment or refinancing at lower rates improving earnings quality.

LANGUAGE CHANGES
NEW — 2025-11-20
PRIOR — 2024-11-19
ADDED
As of November 20, 2025, 9,480,689 shares of common stock of the registrant were outstanding.
NTIC s primary business is corrosion prevention marketed mainly under the ZERUST brand.
NTIC has been selling its proprietary ZERUST products and services to the automotive, general industrial, mechanical, mining, agricultural, and retail consumer markets for over 50 years and, more recently, has also expanded into the oil and gas industry.
NTIC s ZERUST rust and corrosion inhibiting products include plastic and paper packaging, liquids, coatings, rust removers, cleaners, and diffusers as well as engineered solutions designed specifically for the industries it serves.
Internationally, NTIC sells its ZERUST corrosion prevention solutions through its wholly owned subsidiary in China, NTIC (Shanghai) Co., Ltd.
(NTIC China), its wholly owned subsidiary in India, HNTI Limited (Zerust India), its majority-owned joint venture holding company for NTIC s joint venture investments in the Association of Southeast Asian Nations (ASEAN) region, NTI Asean LLC (NTI Asean), its majority-owned subsidiary in Brazil, Zerust Preven o de Corros o S.A (Zerust Brazil), and certain majority-owned and wholly owned subsidiaries, and joint venture arrangements in North America, Europe, and Asia.
In November 2025, Zerust Brazil secured a three-year offshore oil and gas production asset preservation contract with a leading global engineering, procurement, and construction company to provide advanced corrosion protection solutions for floating production storage and offloading units.
The project under this agreement is expected to ramp during fiscal 2026 and run through calendar 2028 with an estimated total value of approximately R$70 million (US$13 million).
This includes approximately R$40 million (US$7.4 million) in materials and approximately R$30 million (US$5.6 million) in engineering and field services.
The amount and timing of revenue anticipated to be generated under this agreement may materially positively affect NTIC s future quarterly sales and other operating results.
REMOVED
As of November 19, 2024, 9,470,507 shares of common stock of the registrant were outstanding.
NTIC s primary business is corrosion prevention products and services, marketed mainly under the ZERUST brand.
NTIC has been selling its proprietary ZERUST products and services to the automotive, electronics, electrical, mechanical, military, and retail consumer markets for over 50 years and, more recently, has also expanded into the oil and gas industry.
NTIC s ZERUST rust and corrosion inhibiting products include plastic and paper packaging, liquids, coatings, rust removers, cleaners, and diffusers as well as engineered solutions designed specifically for the oil and gas industry.
NTIC s technical service consultants work directly with the end users of NTIC s ZERUST rust and corrosion inhibiting products to analyze their specific needs and develop systems to meet their performance requirements.
Internationally, NTIC sells its ZERUST corrosion prevention solutions through its wholly-owned subsidiary in China, NTIC (Shanghai) Co., Ltd.
(NTIC China), its wholly-owned subsidiary in India, HNTI Limited (Zerust India), its majority-owned joint venture holding company for NTIC s joint venture investments in the Association of Southeast Asian Nations (ASEAN) region, NTI Asean LLC (NTI Asean), and certain other majority-owned and wholly-owned subsidiaries, and joint venture arrangements in North America, Europe, and Asia.
Ltd Vietnam (3) 60% Zerust Taiwan Co., Ltd Taiwan (3) 60% ZERUST-EXCOR MEXICO, S.
Malaysia (1) 30% EXCOR KORROSIONSSCHUTZ TECHNOLOGIEN UND PRODUKTE GMBH Germany 50% EXCOR SP.
NTIC s consolidated net sales in fiscal 2024 included $63,092,575 in sales of ZERUST rust and corrosion inhibiting products and services, an increase of 2.2% from such sales in fiscal 2023.
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