KING OF PRUSSIA, PA — Nocopi Technologies, Inc. (OTCQB: NNUP) posted a 167% increase in second-quarter revenue to $960,000 as its Polymeric Group acquisition added sales and ink shipments increased, though acquisition-related costs widened the company’s quarterly net loss.
Revenue rose from $360,000 a year earlier, while product and other sales climbed to about $900,000 from $220,000, according to the company. Nocopi attributed the increase to higher ink shipments to authorized printers serving two major entertainment and toy-product licensees, along with revenue from Polymeric after the acquisition closed May 18.
Gross profit increased to about $360,000 from $190,000. Gross margin, however, fell to 37% from 53% as the sales mix shifted toward products and away from higher-margin licensing, royalty and fee revenue.
Operating expenses rose to $930,000 from $360,000 in the year-earlier quarter, driven primarily by one-time legal and consulting expenses associated with the Polymeric transaction.
Nocopi recorded a second-quarter net loss of $470,000, or 4 cents a share, compared with a loss of $60,000, or 1 cent a share, in the same period of 2025.
Operating cash flow for the six months ended June 30 was $300,000, down from $460,000 a year earlier.
The company ended the quarter with $10.69 million in cash and cash equivalents and no outstanding debt. Working capital totaled $12.7 million, while stockholders’ equity stood at $14.4 million.
The acquisition of Kansas City, Missouri-based Polymeric Group expands Nocopi into specialty inks and coatings used across screen printing, digital and industrial coating markets. Polymeric has operated for more than 30 years.
Chairman Matthew C. Winger described the acquisition as a model for the type of transactions Nocopi intends to pursue, with the company seeking to preserve acquired operations while expanding product sales across a broader customer base.
“We’re highly focused on supporting their growth while maintaining the operational independence and entrepreneurial spirit that has made them successful,” Winger stated.
Following the transaction, Nocopi is concentrating on organic growth, cost efficiencies, working-capital management and selective capital investments intended to improve free cash flow, according to the company.
Nocopi also expanded its management team as it works to integrate acquired businesses and pursue additional transactions.
Gregory S. Babe, executive director of operations, joined the company earlier this year after a career that included serving as chief executive officer of Bayer Corp. and chief technology officer of Matthews International Corp. (NASDAQ: MATW).
Beth Vasy was appointed vice president of growth after previously serving as vice president of operations at Liquid X Printed Metals. Her background includes specialty inks, advanced materials and printed electronics.
President Kevin C. Westenburg indicated that Nocopi is targeting operational integration, customer-service improvements and platform cost efficiencies over the next 12 to 24 months.
“Our financial position provides strategic flexibility,” Westenburg stated. “We remain very focused on optimizing our operations to maximize cash flow for our shareholders.”
Nocopi is also evaluating additional acquisitions as part of its growth strategy, targeting established specialty-materials businesses with defensible market positions, recurring customer relationships and potential to contribute to free cash flow.
Winger described the company’s acquisition strategy as focused on “durable market leaders in niche specialty materials,” with additional opportunities under review.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.