Nocopi Technologies (NNUP) investor relations material

Executive summary

• Specialty ink revenues declined 29% year-over-year to $1.49 million, driven by lower product sales in the entertainment and toy segment, partially offset by an 18% increase in licenses, royalties, and fees due to new and renewed licenses in 2025.

• Net loss narrowed to $154,900 from $2.68 million in 2024, reflecting lower gross profit but significantly reduced general and administrative expenses, mainly from lower stock-based compensation.

• Cash and cash equivalents increased to $11.55 million, with positive operating cash flow of $713,900 for the year.

Financial highlights

• Gross profit was $813,400 (54% of revenues), down from $1.1 million (52%) in 2024, as higher-margin licensing partially offset lower product sales.

• Research and development expenses were $179,900, sales and marketing $282,600, and general and administrative $952,300, all lower than the prior year except R&D, which was flat.

• Other income fell to $446,500 from $621,400, due to the absence of a one-time $84,000 Employee Retention Tax Credit received in 2024 and lower interest income.

• No income tax expense was recorded; federal and state net operating loss carryforwards remain available.

Outlook and guidance

• Management expects to focus resources on the entertainment and toy products market, leveraging relationships with two major licensees and seeking to expand the licensee base.

• Current cash position is considered sufficient for at least the next 12 months, but additional capital may be sought for growth or acquisitions.

• Revenue growth in the retail loss prevention market is targeted through increased security ink sales.