Nocopi Technologies (NNUP) investor relations material

Executive summary

• Revenue for Q2 2026 rose 167% year-over-year to $961,000, driven by a significant increase in product and other sales, partially offset by a decline in licenses, royalties, and fees due to non-renewals of major licenses.

• Net loss widened to $472,000 for Q2 2026 from $59,000 in Q2 2025, reflecting higher operating expenses and lower gross margin percentage.

• The acquisition of Polymeric U.S., Inc. in May 2026 expanded product offerings and contributed $620,000 in revenue and $85,000 in net income post-acquisition.

Financial highlights

• Total revenues for the six months ended June 30, 2026 were $1,351,000, up 61% year-over-year.

• Gross profit for Q2 2026 was $357,000 (37% margin), down from 53% margin in Q2 2025 due to a shift in revenue mix toward lower-margin product sales.

• Operating expenses for Q2 2026 increased to $925,000 from $364,000 in Q2 2025, mainly due to higher R&D, sales and marketing, professional fees, and G&A costs, much of which related to the Polymeric acquisition.

• Interest income declined due to lower cash balances; other income, net was $96,000 for Q2 2026.

Outlook and guidance

• Management expects existing cash resources to fund operations for at least the next twelve months.

• The company plans to focus on expanding relationships in the entertainment and toy products market and pursue additional strategic acquisitions.

• Revenue growth is anticipated from expanded product offerings and new customer relationships post-Polymeric acquisition.