The problem I have is that I lost my source code and have only the encoded files.

Is there a way to reverse this?

Any help or suggestions are much appreciated.

right, this seems to be a complete waste of time and money, no news from developers, encoding stopped with php5.3
Time to move on and I hope I will find a solution for my problem.

NusPhere , you lost a customer!

After 3 years it seems all is frozen... what a waste of my money...and time

The lack of response on your query and dropping of support for the product, such as for new PHP versions, is not good.

Maybe try sending your query direct to NuSphere support rather than through the forum and see if they respond to that

The ability to decode files back to source code would not be a particularly good 'feature', as it was designed to protect source code. Even if NuSphere themselves had the ability to decode, their doing so would effectively be showing their product was not really protecting your source code.

This encoding is irreversible -- it is whole the point of using this product. You can't extract you sources -- they do not exist in the nucoder output in any form. What you have is the files are PHP bytecodes with AES128 applied on top. Latter is applied if files are encoded with license. License is essentially the key. But even after decryption, you have very little to do with bytecodes. You can only run them with PHP. It's just like CPU running .exe while you'd need original .c file.