Nocopi Technologies (NNUP) investor relations material

Executive summary

• Revenues for Q2 2025 decreased 22% year-over-year to $360,000, mainly due to lower product sales, while licenses, royalties, and fees increased 57% to $140,100.

• Net loss narrowed significantly to $58,600 in Q2 2025 from $1,005,400 in Q2 2024, driven by higher gross profit from licenses and lower operating expenses.

• For the first six months of 2025, revenues were $839,000, down 2% year-over-year, with a net loss of $33,100 compared to $2,033,600 in the prior year period.

• Gross profit margin improved to 53% in Q2 2025 from 50% in Q2 2024, and to 55% for the six months from 46% in the prior year.

• Cash increased to $11,295,000 at June 30, 2025, with positive operating cash flow of $455,300 for the six months.

Financial highlights

• Licenses, royalties, and fees revenue rose 88% year-over-year for the six months, offsetting a 25% decline in product and other sales.

• Operating expenses dropped sharply to $364,000 in Q2 2025 from $1,372,700 in Q2 2024, mainly due to lower stock-based compensation.

• Interest income was $120,000 in Q2 2025, down from $142,800 in Q2 2024.

• No income tax expense was recorded due to utilization of net operating loss carryforwards.

Outlook and guidance

• Focus remains on expanding relationships in the entertainment and toy products market and developing new applications for existing licensees.

• Plans include seeking growth through acquisitions and potential capital raises, though no agreements are in place.

• Management anticipates continued revenue concentration risk due to reliance on a small number of major customers.