Nocopi Technologies (NNUP) investor relations material

Executive summary

• Revenues for Q1 2026 declined 19% year-over-year to $389,700, mainly due to a 47% drop in licenses, royalties, and fees following a license renewal in January 2025.

• Product and other sales remained flat at $289,000, with higher ink shipments offsetting declines elsewhere.

• Gross profit margin fell to 49% from 57% year-over-year, reflecting the lower-margin revenue mix.

• Net loss was $62,300 for Q1 2026, compared to net income of $25,500 in Q1 2025.

Financial highlights

• Licenses, royalties, and fees revenue dropped to $100,700 from $190,300 year-over-year.

• Gross profit decreased to $190,600 from $273,700 year-over-year.

• Research and development expenses rose to $55,800, while sales and marketing fell to $74,500.

• General and administrative expenses slightly decreased to $221,800.

• Interest income was $105,200, down from $117,200 year-over-year.

Outlook and guidance

• The company plans to focus resources on expanding relationships in the entertainment and toy products market and pursue new licensees.

• Management anticipates continued product development and potential expansion through acquisitions, though no definitive agreements have been reached.

• Uncertain economic conditions, geopolitical instability, and inflation may negatively impact future revenues and liquidity.