OTC: NNUP

The printing inks market
is seeing a shift as companies transition from manufacturing petroleum-based printing inks to manufacturing environmentally friendly,
more sustainable printing inks. “Green” printing inks are based on sustainable materials such as soy and other plant-based
sources and do not contain the heavy metals or other dangerous and toxic substances that petroleum-based printing inks do; thus they do
not cause excessive pollution in the landfill. Examples of more environmentally friendly printing inks include water-based and oil-based
printing inks. The use of “green” printing inks also reduces emissions of volatile organic compounds (VOC) associated with
the printing process.

In 2025, the global printing
ink industry was estimated to be worth $35.8 billion and forecasted to grow between 2025 and 2030 by 2.4% CAGR to $40.2 billion according
to Smithers report “The Future of Global Ink Markets to 2030”. The water-based printing inks market consists of sales
of water-based printing inks and related services used for printing on fabric and paper. Water-based printing inks are referred to as
aqueous inks and are dye and pigment inks and can be segmented by type into acrylic water-based inks, maleic water-based inks, and shellac
water-based inks.

Our
Company does not produce commodity-based pigments. Rather, we source various pigments, dyes and other raw materials for ink, and then
employ additional chemistry in formulating those materials into a highly engineered, specialty ink for a specific use. We are a specialty
ink formulator within the ink industry that custom formulates, tests, and produces specialty inks that best meet our customer’s
product needs and color demands. While our sale of “green” inks were slightly lower year-over-year, we believe our customers’
demands continue to shift with the trend towards utilizing more “green” printing inks. In 2025, approximately 35.3% of the
ink sales were “green” printing inks, compared to 38.3% in 2024. As the “green” printing ink market
continues to grow, we expect to continue to transition towards manufacturing environmentally friendly, more sustainable printing inks
and away from manufacturing petroleum-based printing inks. We do not expect the “green” printing ink trend to adversely affect
any aspects of our operations.

1

Products and Technology

We are a niche formulator
of specialty inks and our specialty ink portfolio is backed by years of research and development efforts, trade secrets, and patents we
have been granted in the United States, Canada, South Africa, Saudi Arabia, Australia, New Zealand, Japan, France, the United Kingdom,
Belgium, the Netherlands, Germany, Austria, Italy, Sweden, Switzerland, Luxembourg, and Liechtenstein. We currently have patent protection
on substantially all our of security inks including our Rub & Reveal system and our Rub-It & Color technology.

Our goal is to provide
our customers with specialized ink formulations with rapid design, test and production capabilities. We aim to serve our customers demand
for unique product needs and security needs from our specialty inks through applying our industry knowledge, our technical expertise,
our raw material procurement leverage, our product breadth, and our manufacturing operations capabilities to deliver ink formulations
both domestically and internationally. We believe that our role in our customer’s value chain remains an essential component of
their product offering as our customers continually rely upon supplier partners, such as our Company, that provide advanced solutions
to improve their products’ appeal, marketability, differentiation, performance, and overall competitive advantage.

We currently serve end
markets that include children entertainment and toy products and anti-counterfeiting, anti-diversion segments that include industrial
marking, security packaging for cosmetics and consumer products, and point of sales protection. We derive our revenues primarily from
product sales of our inks as well as from licensing and royalty fees of our technologies on an exclusive or non-exclusive basis to licensees
who incorporate our technologies into their product offering and from selling products incorporating our technologies to our licensees
or to their licensed printers. We are currently seeking to expand into other markets.

Entertainment and Toy Technologies and Products

Across the Entertainment
and Toy Products category, we market our Rub-it & Color technology which consists of specialty inks that are produced in a variety
of colors and can be revealed by rubbing with a fingernail or other firm object such as a plastic pen cap. Rub-it & Color ink technology
can be used for coloring books, activity kits, play sheets, single use place mats, greeting cards, board games, promotional products,
or any other paper-based application that needs some “fun” factor added. Two key features of our Rub-it & Color ink technology
is that it’s safe and non-toxic, conforms to ASTM D4236 and F-963 and other toxicology tests.

Our customers in the
Entertainment and Toy Technologies and Products category capitalize on our mess free and non-toxic features of our ink products. Our patented,
revolutionary, and award-winning Rub-it & Color technology can be utilized across a variety of products and applications needing some
“fun” factor as well as providing safe and non-toxic conditions that conform to ASTM D4236 and F-963 and other toxicology
tests.

We license our Rub-it
& Color technology through various license agreements that can be for exclusive and non-exclusive uses. These agreements cover both
domestic and international geographies and can include specific distribution channels and specific lines of products and applications.
Historically our license agreements have ranged anywhere from two to four years, but can also vary depending on our customer, use, and
geography of the agreement. Certain of our license agreements with licensees contain renewal options and/or guaranteed minimum royalties,
while others do not. We cannot assure you that any of our existing licenses will be renewed or will generate significant operating revenues
for our Company in the future. In each of the years 2025 and 2024, we derived approximately 84% and 95%, respectively, of our total revenues
from our licensees and their licensed printers in the entertainment and toy products market. We continue to pursue additional licensing
opportunities for our Rub-it & Color ink technology in the large worldwide entertainment and toy products market and we also seek
to renew our existing license agreements that are near expiration for extension terms.

Anti-Counterfeiting
and Anti-Diversion Technologies and Products

Continuing developments
in copying and printing technologies makes it easier than ever before to counterfeit a wide variety of documents. Counterfeit products
are increasingly problematic for consumers, governments, and corporations. According to The Organization for Economic Cooperation and
Development (OECD) data on counterfeiting and international trade, the total value of counterfeit and pirated goods was $1.023 trillion
in 2023. And according to Corsearch, the value is set to reach approximately $1.79 trillion in 2030. Product labels and packaging, retail
receipts, event and transportation tickets and the like are all susceptible to counterfeiting, causing economic losses to manufacturers
of brand name products. With improvements in the copying and printing technologies making it easier to counterfeit labeling and packaging
and increasing the losses to businesses from such counterfeiting activities.

Our Copimark and Rub
& Reveal technologies provide proprietary document authentication systems that are useful to businesses and brand owners desiring
to authenticate a wide variety of printed materials and products. Our Copimark system enables businesses to print invisibly on certain
areas of a document or packaging. When authentication of certain document or packaging is required, our invisible printing can be activated
or revealed by use of a special highlighter pen. Other variations of our Copimark technology involve multiple color responses from a common
pen, visible marks of one color that turn another color with the pen or visible and invisible marks that turn into a multicolored image.
Our Rub & Reveal system permits the invisible printing of an authenticating symbol or code that can be revealed by rubbing a fingernail
over the printed area.

2

Our technologies provide
users with the ability to authenticate documents and detect counterfeit documents. Applications include the authentication of documents
having intrinsic value, such as merchandise receipts, checks, travelers’ checks, gift certificates and event tickets, and the authentication
of product labeling and packaging. When applied to product labels and packaging, our systems allow detection of counterfeit products,
the labels and packaging of which would not contain the authenticating marks invisibly printed on the packaging or labels of the legitimate
product.

Our marketing efforts
for these technologies are focused on specific industries we believe may be affected by product counterfeiting. These technologies also
combat product diversion (i.e. sale of legitimate products through unauthorized distribution channels or in unauthorized markets). Another
of our related technologies, our invisible inkjet technology, permits manufacturers and distributors to track the movement of products
from production to ultimate consumption when coupled with proprietary software. The “track and trace” capability provided
by this technology is an attractive capability to brand owners. Our ink technology is also utilized in retail receipt and document fraud
markets through licensing arrangements with four printers and distributors in the United States and Canada who provide loss prevention
products to retailers and other outlets. We market these technologies through the use of licensed printers and distributors.

Contrast Technologies,
formerly known as Euro-Nocopi, S.A., is a former affiliate of our Company that, since June 2003, has held a perpetual royalty-free license
to utilize certain of our anti-counterfeiting and anti-diversion technologies in Europe.

Product Revenue

The following table illustrates
the approximate percentage of our Company’s total revenues accounted for by each type of its products for each of the last two fiscal
years:

Year Ended December 31,

Product Type
2025
2024

Entertainment and Toy Technologies and Products
84%
95%

Anti-Counterfeiting and Anti-Diversion Technologies and Products
16%
5%

Marketing

Our current marketing
efforts are focused on commercializing our developed technologies across current and new geographic and market areas. We sell products
through both multiyear license agreements with our existing customers as well as direct sales to a range of end customers through our
sales staff. We primarily use truck carriers and freight service providers to transport our products to customers from our manufacturing
facility. Our marketing approach utilizes our dynamic production capabilities of our products and technologies.

Acquisition Strategy

Our growth strategy includes
expanding our business through acquisitions of other companies with competing or complementary services, technologies or businesses in
order to expand our product and service offerings to grow our free cash flow. We are currently actively engaged in the process to identify
acquisition candidates and negotiate transactions. As of the date of this report on Form 10-K, we have no agreements to make any acquisition.
We expect to fund our business expansion through the issuance of debt or equity securities, the payment of cash, the exchange of services,
or any combination thereof.

Major Customers

During 2025, we made
sales or obtained revenues equal to 10% or more of our Company’s 2025 total revenues from two non-affiliated customers who individually
accounted for approximately 23% and 52%, respectively, of 2025 revenues of our Company. During 2024, we made sales or obtained revenues
equal to 10% or more of our Company’s 2024 total revenues from two non-affiliated customers who individually accounted for approximately
18% and 70%, respectively, of 2024 revenues of our Company.

Additional information
concerning our major customers is contained in Note 11 to the Financial Statements, attached as Appendix A to this Annual Report
on Form 10-K.

3

Manufacturing

Our Company operates
a manufacturing facility located at our corporate headquarters at 480 Shoemaker Road, Suite 104, King of Prussia, Pennsylvania 19406.
At this location, we also have product development, sales, and administrative operations located adjacent to our production floor area.
Our formulation and production methodologies aim to consistently achieve the highest technical standards while simultaneously reaching
fast lead times of production and delivery for our customers.

We have established a
quality control program that currently entails laboratory analysis of developed technologies; and when warranted, our specially trained
technicians travel to third party production facilities to train client staff and monitor our manufacturing process. We also strive to
improve our production efficiencies and data controls to target less material waste as well as attempt more sustainable sourcing of raw
materials.

Patents

Our Company has been
granted various patents in the United States, Canada, South Africa, Saudi Arabia, Australia, New Zealand, Japan, France, the United Kingdom,
Belgium, the Netherlands, Germany, Austria, Italy, Sweden, Switzerland, Luxembourg, and Liechtenstein. Patents may exist for 20 years
from filing date and we actively monitor the marketplace to employ management processes designed to rigorously enforce our legal ownership
of intellectual property. We currently have patent protection on substantially all of our security inks including our RUB & REVEAL
system, and on our Rub-it & Color technology. Our latest patent protects our newly developed technology that may have applications
in the entertainment and toy products market.

In the United States
and some other countries, patent applications are automatically published at a specified time after filing. Since we are obligated to
pay annuities from time to time on our patents to keep them in force, we annually evaluate our patent portfolio to determine which patents
we will continue to maintain. In Europe, annuities for European patents are paid by Contrast Technologies, formerly known as Euro-Nocopi,
S.A., since Europe is where they hold a perpetual royalty-free license to exploit certain of our anti-counterfeiting and anti-diversion
technologies.

Research and Development

Our research and development
activities are primarily focused on advancing our portfolio of ink technologies. We aim to successfully develop new chemistry formulations,
new market-changing technologies and new customer driven solutions. Our research and development efforts support our commercial development
activities while also attempting to improve our manufacturing operations.

We are presently conducting
research and development activities in the following three areas: (1) refining our present product portfolio, (2) developing specific
customer applications, and (3) expanding our technology into new areas of implementation. During the years ended December 31, 2025 and
December 31, 2024, we spent approximately $179,900 and $178,200, respectively, on research and development. We continue to focus our research
and development activities to develop and market additional new products and applications.

Competition

We compete in the fragmented
specialty ink industry which is highly competitive. Competition is based on several key criteria which include quality, price, service,
performance, product innovation, product recognition, speed, and delivery. Our competitors range from large, publicly owned international
companies with broad product offerings to local, privately held independent specialty producers offering a specific market niche or product.
Overall, many participants tend to offer a varied and broad array of product lines designed to meet specific customer requirements.

The ink industry has
become increasingly global as participants have focused on establishing and maintaining leadership positions outside of their home markets.
Many of these participant’s product lines face increasing competition due to industry consolidation, pricing pressures and competing
technologies. Nonetheless, we believe our patented and proprietary technologies provide a unique and cost-effective solution for our customers.
To improve our competitive position, we are building and leveraging our corporate brand as a differentiator to create value and better
communicate our specialty production capabilities which we believe make it easier to introduce new product lines and applications to provide
scale to our operations and ultimately enable us to successfully compete in the market.

4

Employees and Human Capital

We currently have seven
full-time employeesand believe that we have good relations with our employees.

We are committed to providing
a healthy environment and safe workplace by operating in accordance with established health and safety protocols within our facility and
maintaining a strong health and safety compliance program. We prioritize, manage, and carefully track safety performance at our facility
and integrate sound safety practices in every aspect of our operations.

Regulation of our Business

We are subject to common
business, tax and regulations pertaining to the operation of our business. We believe that we are in compliance with all applicable governmental
regulations.

Financial Information about Foreign and Domestic Operations

We conduct our business
operations solely within the United States; however, we have licensees and customers in Europe, South America, Asia and Australia. These
licensees and customers accounted for approximately 61% of our gross revenues in 2025 and approximately 77% of our gross revenues in 2024.
Additional information concerning our foreign and domestic operations is contained in Note 11 to our Financial Statements, attached as
Appendix A to this Annual Report on Form 10-K.

Available Information

We are required to file
annual, quarterly and current reports, proxy statements and other information with the SEC. Information that we file with the SEC is available
at the SEC’s website at www.sec.gov. We also make available free of charge on or through our website, at www.nocopi, our Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and all amendments to those reports as soon as reasonably
practicable after such material is electronically filed with the SEC. The information on our website is not, and shall not be deemed to
be, a part hereof or incorporated into this or any of our other filings with the SEC.