Nocopi Technologies Inc/Md/ (OTC: NNUP)

Nocopi Technologies, Inc. develops and markets specialty reactive inks for multiple applications across various industries. The company’s inks are used by customers to bring entertainment products to life with various color activations and to provide document and brand authentication for security purposes aimed at reducing losses from fraudulent document reproduction or product counterfeiting and diversion. Its primary markets are the large educational and toy products industry and the document and product authentication industry.

Nocopi Technologies, Inc. generates revenue primarily from licensing its technologies on an exclusive or non exclusive basis to licensees who incorporate the technologies into their product offerings. The company also earns income from selling products that incorporate its technologies to those licensees or to their licensed printers. In addition, Nocopi sells its specialty inks directly to end users in its core markets.

The company operates through the following segments: Entertainment and Toy Technologies and Products; Anti Counterfeiting and Anti Diversion Technologies and Products.

• The Entertainment and Toy Technologies and Products segment markets rubbing activated ink technology that is revealed by rubbing with a fingernail or a firm object such as a plastic pen cap. This technology is used in coloring books activity kits play sheets greeting cards board games promotional products and other paper based applications that need a fun factor. The inks are safe and non toxic and conform to ASTM D4236 and F 963 toxicology tests. Licensing agreements for this segment can be exclusive or non exclusive and cover domestic and international geographies with typical terms of two to four years and possible renewal options. Revenues from this segment represented approximately eighty four percent of total revenues in 2025 and ninety five percent in 2024.

• The Anti Counterfeiting and Anti Diversion Technologies and Products segment offers the Copimark system which enables invisible printing on documents or packaging that can be activated by a special highlighter pen. It also provides the Rub & Reveal system where an authenticating symbol or code is invisibly printed and can be revealed by rubbing the printed area. Additionally the segment includes invisible inkjet technology that allows manufacturers to track product movement from production to consumption when paired with proprietary software. These technologies are applied to merchandise receipts checks gift certificates event tickets product labeling packaging retail receipts and document fraud markets. The company markets these technologies through licensed printers and distributors in the United States and Canada. Revenues from this segment accounted for approximately sixteen percent of total revenues in 2025 and five percent in 2024.

Nocopi Technologies, Inc. competes in a fragmented specialty ink industry that is highly competitive. Competition is based on quality price service performance product innovation product recognition speed and delivery. Competitors range from large publicly owned international companies with broad product offerings to local privately held independent specialty producers that focus on a specific market niche. Many participants offer a varied and broad array of product lines designed to meet specific customer requirements. The ink industry has become increasingly global as companies seek leadership positions outside their home markets. Many face increasing competition due to industry consolidation pricing pressures and competing technologies. Nevertheless Nocopi believes its patented and proprietary technologies provide a unique and cost effective solution for its customers. To improve its competitive position the company is building and leveraging its corporate brand as a differentiator to create value and better communicate its specialty production capabilities.

Nocopi Technologies, Inc. serves a customer base that includes licensees in the entertainment and toy sector manufacturers that require security authentication for documents and packaging and printers and distributors that provide loss prevention products to retailers. During 2025 two non affiliated customers individually accounted for approximately twenty three percent and fifty two percent of the company’s total revenues. In 2024 the same two non affiliated customers accounted for roughly eighteen percent and seventy percent of total revenues. The company also has licensees and customers in Europe South America Asia and Australia which together represented about sixty one percent of gross revenues in 2025 and seventy seven percent in 2024. Contrast Technologies formerly known as Euro Nocopi S A holds a perpetual royalty free license to use certain of the company’s anti counterfeiting and anti diversion technologies in Europe. Additionally four printers and distributors in the United States and Canada supply loss prevention products to retailers using Nocopi’s technologies. No specific customer names are disclosed in the filing.