Nocopi Technologies Reports Third Quarter Results (Form 8-K)

Nocopi Technologies Reports Third Quarter Results

KING OF PRUSSIA, PA - November 12, 2026 - Nocopi Technologies, Inc. ("Nocopi Technologies" or the "Company"; OTCQB: NNUP) today reported financial results for the quarter ended September 30, 2026.

2026 Third Quarter Highlights

Revenue and Gross Profit

For the three months ended September 30, 2026, total revenues were $3.329 million, representing 763% growth compared to $0.386 million in the same period last year. The increase was largely driven by licenses, royalties and fees revenue, which increased by $1.620 million to $1.731 million for the fiscal 2026 third quarter from $0.110 million for the fiscal 2025 third quarter. Product and other sales also increased by $1.323 million to $1.598 million for the fiscal 2026 third quarter from $0.275 million for the fiscal 2025 third quarter, as a result of sales from Polymeric as well as higher quarterly ink shipments serving the entertainment and toy products market.

Total revenues for the nine months ended September 30, 2026 were approximately $4,680,000 as compared to $1,225,000 for the nine months ended September 30, 2025, an increase of $3,455,000, or 282%.

The Company's gross profit increased to $2.203 million, or 66% of gross revenues, for the fiscal third quarter 2026 from $0.178 million, or 46% of gross revenues, for the fiscal third quarter 2025. The increase in gross profit margin was largely due to a shift in revenue mix attributable to the license revenue recognized during the quarter relative to product sales.

Total Operating Expenses

Total operating expenses for the fiscal third quarter 2026 were $0.982 million, compared to $0.320 million for the fiscal third quarter 2025. The increase was primarily due to the inclusion of the operations of Polymeric. Consistent with management's expectations for the first full quarter since closing the acquisition, operating expenses also included elevated professional and consulting fees related to the acquisition and the integration of the expanded operations. Management continues to work on optimizing the combined cost structure over time. In addition, sales and marketing expenses increased temporarily primarily due to higher commission expense associated with the license agreement renewal.

Net Income

The Company reported net income of $1.397 million for the three months ended September 30, 2026, compared to a net loss of $(0.027) million in the comparable 2025 period. For the nine months ended September 30, 2026, net income was $0.863 million, compared to a net loss of $(0.060) million in the comparable 2025 period.

Management Commentary

The integration of Polymeric's operations is progressing according to plan and is already contributing meaningfully to the Company's consolidated performance. Since the acquisition in May, the Company has focused on aligning operations, retaining the customer base and establishing common processes across both facilities. Polymeric is tracking to management's expectations, and management's conviction in its long-term value potential continues to grow. The expanded team has settled in well and customers have remained with the Company through the transition.

"The acquisition marks a milestone in Nocopi's longer-term expansion plans. It adds in-house screen and digital ink manufacturing, a broader commercial footprint and an established customer base in markets not previously served. Together, these give us a more diversified revenue base that complements our royalty and license revenue," said Gregory S. Babe, Executive Director of Operations.

Nocopi's core relationships in the entertainment and educational toy markets remain a top priority, and several of these partnerships go back more than a decade. During the quarter, the Company executed an early renewal and multi-year extension of an existing license agreement. The renewal extends the term to June 2030, adds an additional product line subject to royalty payments, and increases the guaranteed minimum royalty payable to the Company. Management believes this early renewal reflects the licensee's continued confidence in Nocopi Technologies and its ability to innovate new products. The Company continues to work closely with these partners on new applications while pursuing additional licensees in the sector.

Strong Balance Sheet Provides Execution Flexibility

As of September 30, 2026, the Company had $10.278 million in cash and cash equivalents, marketable securities, and held-to-maturity investments 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 $11.266 million and total stockholders' equity of $16.149 million as of September 30, 2026, up from $13.603 million at December 31, 2025.

"Currently, we are heavily focused on positioning Nocopi, inclusive of Polymeric, for long-term growth by strengthening customer relationships, attracting new customers, and expanding applications for existing products, while at the same time continuing to search for accretive acquisition opportunities where we believe we have a competitive advantage in growing the business through existing relationships or our in-house knowledge base," said Kevin C. Westenburg, President. "That means running these operations with discipline and growing free cash flow to compound value for shareholders."

Strategic M&A Approach

Nocopi's growth strategy rests on two priorities: expanding the existing business and pursuing acquisitions that add value. On the organic side, the Company is deepening relationships with established licensees and broadening the reach of its reactive ink technologies. It is also using the manufacturing and commercial capabilities gained through Polymeric to serve a wider customer base.

The Company also continues to evaluate value-accretive acquisition opportunities in both its core and adjacent segments. It is focused on well-established businesses with defensible market positions, long-standing customer relationships and experienced teams. Each opportunity is assessed for strategic fit and for its potential to enhance margins, cash flow and long-term shareholder value.

"Our approach to growth is balanced and disciplined," said Matthew C. Winger, Chairman and Chief Executive Officer. "We see real opportunity to grow the business we have, and that remains our first priority. At the same time, Polymeric showed the value a well-chosen acquisition can bring, expanding our capabilities and footprint in ways that really complement our core operations. We continue to seek acquisitions that have the potential to strengthen our platform, improve our cash flow profile and have long-term growth potential. We will only proceed where we are confident the transaction creates meaningful value for our shareholders."

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.