Nocopi Technologies Reports Second Quarter Results
KING OF PRUSSIA, Pa., Aug. 13, 2026 (GLOBE NEWSWIRE) -- Nocopi Technologies, Inc. (“Nocopi Technologies” or the “Company”; OTCQB: NNUP) is pleased to report fiscal 2026 second quarter results.
2026 Second Quarter Highlights
- Net sales increased 167% to approximately $0.96 million in the fiscal 2026 second quarter, in part due to our acquisition of the Polymeric business described below, versus $0.36 million in the fiscal 2025 second quarter.
- Gross profit increased to $0.36 million in the fiscal 2026 second quarter versus $0.19 million in the prior year second quarter.
- Net income (loss) was ($0.47) million, or ($0.04) per share for the fiscal 2026 second quarter versus net income of ($0.06) million, or ($.01) per share for the fiscal 2025 second quarter.
- Net cash provided by operating activities for the six months ended June 30, 2026 was $0.3 million versus $0.46 million for the six months ended June 30, 2025
- Cash and cash equivalents at the end of the second quarter of 2026 were $10.69 million with no debt outstanding
Revenue and Gross Profit
For the three months ended June 30, 2026, total revenues were $0.96 million representing 167% growth compared to $0.36 in the same period last year. Product and other sales increased to $0.9 million from $0.22 in Q2 2025, driven by higher ink shipments to authorized printers serving two of the Company's major entertainment and toy products licensees, as well incremental product revenue from the Polymeric acquisition closed during the quarter.
The Company’s gross profit increased to approximately $0.36 million or 37% of gross revenues, for the three months ended June 30, 2026 from approximately $0.19 million or 53% of gross revenues in the fiscal 2025 second quarter. The decrease in gross profit margin was largely a shift in revenue mix from an increased amount of product sales relative to higher margin license, royalties and fee revenue.
Total Operating Expenses
Total operating expenses for the three months ended June 30, 2026 were $0.93 million, as compared $0.36 million for the three months ended June 30, 2025. The increase in second quarter operating expenses was primarily due to one-time charges in legal fees and consulting fees related to the acquisition in the quarter.
Net Income
The Company reported a net loss of $0.47 million for Q2 2026, compared to a net loss of $0.06 million in the comparable 2025 period.
Management Commentary
During the quarter, the Company expanded existing operations with the acquisition of the business of the Polymeric Group, which we completed on May 18, 2026. Polymeric Group is a premier specialty ink and coatings manufacturer headquartered in Kansas City, Missouri. With over 30 years of continuous operation, the company has established itself as a trusted partner to a diversified customer base of long-tenured clients across screen printing, digital, and industrial coating segments.
"Polymeric Group represents exactly the kind of meaningful acquisition we are continuously looking to execute at Nocopi Technologies. They have a deeply talented leadership team, a strong embedded culture, and loyal customer relationships that we're committed to preserving and building upon,” said Matthew C. Winger, Chairman. “We're highly focused on supporting their growth while maintaining the operational independence and entrepreneurial spirit that has made them successful. As we identify opportunities to expand the sale of products from our existing formula suite to new customers gained from the acquisition, as well as support other organic expansion, we're confident in delivering meaningful bottom-line results in the coming years."
Following the closing of the Polymeric acquisition, Company management is working on executing a disciplined operational roadmap anchored on three principles consisting of organic growth in existing markets, cost efficiency through platform leverage, and improved working capital management, as well as selective incremental capital investment on high return on investment opportunities to drive the Company’s ability to generate meaningful free cash flow.
Operational Additions to Leadership Team
In support of the Company's expanded operational platform, management has added key executives to its leadership during the second quarter. These senior hires bring deep experience in manufacturing operations, supply chain optimization, and the financial integration of acquired businesses, capabilities essential to future execution of Nocopi's acquisition strategy at scale and represent the foundation for scaling the Company’s operations.
Appointed earlier this year, Gregory S. Babe, Executive Director of Operations, brings over 40 years of leadership experience in global industrial conglomerates. His career is defined by a demonstrated ability to scale industrial technology companies and execute large-scale organizational integrations during high-growth phases. Earlier in his career, Mr. Babe served as Chief Executive Officer of Bayer Corporation, where he oversaw all North American activities of the worldwide Bayer Group, and as Chief Technology Officer of Matthews International (NASDAQ: MATW).
Additionally, the Company recently appointed Beth Vasy, Vice President of Growth, who brings extensive strategic and operational expertise in the specialty ink and advanced materials sectors. Prior to joining Nocopi, Ms. Vasy served as Vice President of Operations at Liquid X Printed Metals, a functional ink and printed electronics pioneer. Ms. Vasy holds an MBA from the Tepper School of Business at Carnegie Mellon University.
Together, these executives strengthen Nocopi's execution capability at a critical juncture. We believe Mr. Babe's proven track record scaling operations with discipline and Ms. Vasy's deep commercial expertise in specialty materials position the Company to accelerate integration activities, capture immediate market opportunities, and opportunistically pursue an expanded pipeline of acquisition targets as part of the Company’s growth strategy.
Strong Balance Sheet Provides Execution Flexibility
As of June 30, 2026, the Company had over $10.6 million in cash and equivalents with no debt outstanding, providing substantial flexibility for both operational growth and additional strategic acquisition opportunities. The Company's balance sheet remained robust, with working capital of $12.7 million and total stockholders' equity of $14.4 million.
"Our financial position provides strategic flexibility," said Kevin C. Westenburg, President. "We remain very focused on optimizing our operations to maximize cash flow for our shareholders. It is our objective to achieve platform integration opportunities, high levels of customer service and product quality, as well as overall platform cost efficiencies, with the next 12- and 24-months as our targeted execution timeframe.”
Strategic M&A Approach
Beyond Polymeric, management continues to actively evaluate additional acquisition opportunities as the second pillar of a multi-faceted growth approach. The core of the acquisition strategy revolves around identifying niche and durable, market-leadership businesses in specialty materials. Management is targeting high quality, established companies that have earned defensible competitive positions, loyal customer relationships, and exceptional teams within their vertical markets.
"We have a disciplined expansion playbook focused on acquiring durable market leaders in niche specialty materials. Our initial acquisition broadened our capabilities and expanded our footprint in a manner highly complementary to our existing operations. As we pursue additional pipeline opportunities, we remain steadfast in acquiring scalable, high-margin businesses that accelerate the Company’s free cash flow generation and drive compounding long-term shareholder value,” added Winger.
About Nocopi Technologies (www.nocopi.com)
Nocopi Technologies, headquartered in King of Prussia, PA, develops and markets specialty inks and licenses these technologies. Nocopi Technologies’ ink technologies are backed by proprietary and patented technology and are marketed for use across a variety of end markets.
Safe Harbor for Forward-Looking Statements
The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, the Company’s prospects, plans, business strategy and expected financial and operational results, including with respect to the preliminary financial information and the acquisition described above. In some cases, you can identify these statements by forward-looking words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “might,” “should,” “will,” “could,” “predicts,” “potential” or “continue,” the negative of these terms and other comparable terminology. These statements are based on certain assumptions that the Company has made in light of its experience in its industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors that the Company believes are appropriate in these circumstances. These forward-looking statements reflect the Company’s current expectations and beliefs regarding future developments and their potential effect on the Company.
You should not rely on forward-looking statements because the Company’s actual results may differ materially from those indicated by forward-looking statements as a result of a number of important factors. These factors include, but are not limited to: the Company’s ability to successfully integrate the acquisition and to achieve the benefits it expects to realize as a result of the acquisition; the potential adverse impact on the Company’s financial condition and results of operations if it does not realize those expected benefits; liabilities of the acquisition that are not known to the Company; the extent to which the Company is successful in gaining new long-term relationships with customers or retaining significant existing customers and the level of service failures that could lead customers to use competitors’ services; the Company’s ability to improve its current credit rating with its vendors and the impact on its raw materials and other costs and competitive position of doing so; the impact of losing the Company’s intellectual property protections or the loss in value of its intellectual property; changes in customer demand; the occurrence of hostilities, political instability or catastrophic events; developments and changes in laws and regulations, including increased regulation of the Company’s industry through legislative action and revised rules and standards; security breaches, cybersecurity attacks and other significant disruptions in the Company’s information technology systems; general economic and business conditions; the impact of competition and technological change; the Company’s ability to comply with the rules and regulations of the Securities and Exchange Commission (the “SEC”); and those other risks and uncertainties discussed in the reports the Company has filed with the SEC, including the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Forward-looking statements speak only as of the date they are made.
Although the Company believes the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance or achievements. Moreover, neither the Company nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. The Company undertakes no obligation to update any of these forward-looking statements after the date of this report to conform them to actual results or revised expectations, except as required by law.
Investor & Media Contact
610-834-9600
ir@nocopi.com
| NOCOPI TECHNOLOGIES, INC. AND SUBSIDIARY | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues | ||||||||||||||||
| Licenses, royalties and fees | $ | 66,000 | $ | 140,100 | $ | 166,700 | $ | 330,400 | ||||||||
| Product and other sales | 895,012 | 219,900 | 1,184,012 | 508,600 | ||||||||||||
| Total revenues | 961,012 | 360,000 | 1,350,712 | 839,000 | ||||||||||||
| Cost of revenues | ||||||||||||||||
| Licenses, royalties and fees | 47,000 | 39,100 | 93,400 | 82,600 | ||||||||||||
| Product and other sales | 556,631 | 129,400 | 709,331 | 291,200 | ||||||||||||
| Total cost of revenues | 603,631 | 168,500 | 802,731 | 373,800 | ||||||||||||
| Gross profit | 357,381 | 191,500 | 547,981 | 465,200 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| Research and development | 48,300 | 43,200 | 104,100 | 88,200 | ||||||||||||
| Sales and marketing expenses | 89,092 | 57,300 | 163,592 | 148,300 | ||||||||||||
| Professional and consulting fees | 417,300 | 118,300 | 485.300 | 222,600 | ||||||||||||
| Compensation and related taxes - general and administrative | 236,695 | 65,300 | 331,095 | 136,300 | ||||||||||||
| Other general and administrative expenses | 133,726 | 79,900 | 193,126 | 128,100 | ||||||||||||
| Total Operating Expenses | 925,113 | 364,000 | 1,277,213 | 723,500 | ||||||||||||
| Net Loss from Operations | (567,732 | ) | (172,500 | ) | (729,232 | ) | (258,300 | ) | ||||||||
| Other Income (Expense): | ||||||||||||||||
| Interest income | 102,005 | 120,000 | 207,205 | 237,200 | ||||||||||||
| Interest expense and bank charges | (6,200 | ) | (6,100 | ) | (12,200 | ) | (12,000 | ) | ||||||||
| Total Other Income, net | 95,805 | 113,900 | 195,005 | 225,200 | ||||||||||||
| Loss before provision for income taxes | (471,927 | ) | (58,600 | ) | (534,227 | ) | (33,100 | ) | ||||||||
| Provision for income taxes | — | — | — | — | ||||||||||||
| Net loss | $ | (471,927 | ) | $ | (58,600 | ) | $ | (534,227 | ) | $ | (33,100 | ) | ||||
| Net loss per common share, basic and diluted | $ | (0.04 | ) | $ | (0.01 | ) | $ | (0.05 | ) | $ | (0.00 | ) | ||||
| Weighted average common shares outstanding - basic and diluted | 11,399,612 | 10,792,913 | 11,240,115 | 10,792,913 | ||||||||||||
| NOCOPI TECHNOLOGIES, INC. AND SUBSIDIARY | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| June 30, 2026 | December 31, 2025 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 10,687,269 | $ | 11,553,600 | ||||
| Accounts receivable less $12,000 allowance for credit losses | 1,267,881 | 936,700 | ||||||
| Inventory, net of allowance $373,000 and $114,200, respectively | 1,712,186 | 456,900 | ||||||
| Prepaid expenses and other current assets | 168,138 | 144,100 | ||||||
| Total Current Assets | 13,835,474 | 13,091,300 | ||||||
| OTHER ASSETS: | ||||||||
| Property and equipment, net | 316,287 | 10,000 | ||||||
| Goodwill | 490,000 | — | ||||||
| Intangible assets, net | 290,492 | — | ||||||
| Long-term receivables | 504,700 | 775,000 | ||||||
| Operating lease right of use assets | 568,901 | 161,300 | ||||||
| Total Assets | $ | 16,005,854 | $ | 14,037,600 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 430,223 | $ | 30,600 | ||||
| Accrued expenses and other liabilities | 197,700 | 153,300 | ||||||
| Stock compensation payable | 70,200 | 26,700 | ||||||
| Purchase consideration payable – holdback, current | 100,000 | — | ||||||
| Stock subscription payable | 99,000 | — | ||||||
| Operating lease liability – current | 249,514 | 80,200 | ||||||
| Total Current Liabilities | 1,146,637 | 290,800 | ||||||
| NON-CURRENT LIABILITIES: | ||||||||
| Accrued expenses, non-current | 35,300 | 54,300 | ||||||
| Purchase consideration payable – holdback, long-term | 50,000 | — | ||||||
| Operating lease liability – non-current | 328,144 | 88,700 | ||||||
| TOTAL NON-CURRENT LIABILITIES | 413,444 | 143,000 | ||||||
| Total Liabilities | 1,560,081 | 433,800 | ||||||
| Commitments and Contingencies (Note 12) | ||||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Preferred stock, $1.00 par value, 3,000,000 shares authorized; none issued and outstanding | — | — | ||||||
| Common stock, $0.01 par value,75,000,000 shares authorized, 11,743,364 and 10,835,123 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively | 117,434 | 108,300 | ||||||
| Additional paid-in capital | 27,065,966 | 25,698,900 | ||||||
| Accumulated deficit | (12,737,627 | ) | (12,203,400 | ) | ||||
| Total stockholders' equity | 14,445,773 | 13,603,800 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 16,005,854 | $ | 14,037,600 | ||||
