Network-1 Reports First Quarter 2022 Results
Network-1 Technologies, Inc. (NTIP) reported no revenue of $0 for Q1 2022, a significant decrease from $18.7 million in Q1 2021, primarily attributed to the resolution of a licensing dispute with Cisco. The company posted a net loss of $1.3 million or $(0.05) per share, contrasting with a net income of $9.5 million or $0.39 per share in the previous year. At March 31, 2022, Network-1 had $56.5 million in cash and marketable securities. The company is focused on monetizing its patent portfolios, including a recent acquisition in high-frequency trading technology.
- Network-1 has $56.5 million in cash and marketable securities as of March 31, 2022, indicating strong liquidity.
- The company formed a subsidiary to acquire a patent portfolio related to high-frequency trading, potentially opening new revenue streams.
- Network-1 continues to pay semi-annual dividends of $0.05 per share.
- Reported no revenue for Q1 2022, a sharp decline from $18.7 million in the same period of the previous year.
- Net loss of $1.3 million for Q1 2022, down from a net income of $9.5 million in Q1 2021.
NEW CANAAN, CT / ACCESSWIRE / May 16, 2022 / Network-1 Technologies, Inc. (NYSE American:NTIP), a company engaged in the acquisition, development, licensing, and monetization of intellectual property assets, today announced financial results for the quarter ended March 31, 2022.
Network-1 had no revenue for the three months ended March 31, 2022, as compared to revenue of
Network-1 reported a net loss of
At March 31, 2022, Network-1's principal sources of liquidity consisted of cash and cash equivalents and marketable securities of
On March 25, 2022, Network-1's newly formed subsidiary, HFT Solutions, LLC, acquired a patent portfolio covering certain advanced technologies relating to high frequency trading (the "HFT Patent Portfolio"). The HFT Patent Portfolio currently includes seven issued U.S. patents and one pending U.S. patent. The portfolio relates to technologies used by firms engaged in high frequency trading activities. The inventions specifically address technological problems associated with speed and latency and provide critical latency gains in trading systems where the difference between success and failure may be measured in nanoseconds
To date, Network‑1 has invested an aggregate of
Since inception of Network‑1's Share Repurchase Program through March 31, 2022, Network‑1 has repurchased an aggregate of 8,984,134 shares of its common stock at an aggregate cost of
Network‑1 continues to pay dividends consistent with its dividend policy which consists of semi-annual cash dividends of
ABOUT NETWORK-1 TECHNOLOGIES, INC.
Network-1 Technologies, Inc. is engaged in the development, licensing and protection of its intellectual property and proprietary technologies. Network-1 works with inventors and patent owners to assist in the development and monetization of their patented technologies. Network-1 currently owns ninety-six (96) patents covering various telecommunications and data networking technologies as well as technologies relating to document stream operating systems and the identification of media content. Network-1's current strategy includes efforts to monetize four patent portfolios (the Cox, M2M/IoT, HFT and Mirror Worlds patent portfolios). Network-1's strategy is to focus on acquiring and investing in high quality patents which management believes have the potential to generate significant licensing opportunities as Network-1 has achieved with respect to its Remote Power Patent and Mirror Worlds Patent Portfolio. Network-1's Remote Power Patent has generated licensing revenue in excess of
This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements address future events and conditions concerning Network-1's business plans. Such statements are subject to a number of risk factors and uncertainties as disclosed in the Network-1's Annual Report on Form 10-K for the year ended December 31, 2021 and its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022 filed with the Securities and Exchange Commission including, among others, Network-1's uncertain revenue stream, uncertainty as to the outcome of pending litigation involving Network-1's Cox Patent Portfolio, whether Network-1 will be successful in its appeal to the Federal Circuit of the District Court judgement of non-infringement dismissing Network-1's litigation against Facebook, the ability of Network-1 to successfully execute its strategy to acquire or make investments in high quality patents with significant licensing opportunities, Network-1's ability to achieve revenue and profits from its Cox Patent Portfolio, M2M/IoT Patent Portfolio, HFT Patent Portfolio and additional revenue and profit from its Mirror Worlds Patent Portfolio as well as a return on its investment in IliAD Biotechnologies, LLC or other intellectual property it may acquire or finance in the future, the ability of Network-1 to enter into additional license agreements, uncertainty as to whether cash dividends will continue be paid, Network-1's ability to enter into strategic relationships with third parties to license or otherwise monetize their intellectual property, the risk in the future of Network-1 being classified as a Personal Holding Company which may result in Network-1 issuing a special cash dividend to its stockholders, future economic conditions and technology changes and legislative, regulatory and competitive developments. Except as otherwise required to be disclosed in periodic reports, Network-1 expressly disclaims any future obligation or undertaking to update or revise any forward-looking statement contained herein.
The unaudited condensed consolidated statements of operations and comprehensive (loss) income and unaudited condensed consolidated balance sheets are attached.
NETWORK-1 TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME
(UNAUDITED)
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
| REVENUE | $ | - | $ | 18,692,000 | ||||
| OPERATING EXPENSES: | ||||||||
Costs of revenue | - | 5,420,000 | ||||||
Professional fees and related costs | 250,000 | 355,000 | ||||||
General and administrative | 517,000 | 513,000 | ||||||
Amortization of patents | 75,000 | 74,000 | ||||||
Stock-based compensation | 55,000 | 59,000 | ||||||
| TOTAL OPERATING EXPENSES | 897,000 | 6,421,000 | ||||||
| OPERATING (LOSS) INCOME | (897,000 | ) | 12,271,000 | |||||
OTHER (LOSS) INCOME: | ||||||||
Interest and dividend income, net | 80,000 | 50,000 | ||||||
Net realized and unrealized loss on marketable securities | (514,000 | ) | (46,000 | ) | ||||
Total other (loss) income, net | (434,000 | ) | 4,000 | |||||
| (LOSS) INCOME BEFORE INCOME TAXES AND EQUITY IN NET LOSSES OF EQUITY METHOD INVESTEE | (1,331,000 | ) | 12,275,000 | |||||
INCOME TAX PROVISION: | ||||||||
Current | -- | 890,000 | ||||||
Deferred taxes, net | (452,000 | ) | 1,724,000 | |||||
| Total income tax (benefit) expense | (452,000 | ) | 2,614,000 | |||||
| (LOSS) INCOME BEFORE SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE | $ | (879,000 | ) | $ | 9,661,000 | |||
| SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE | $ | (433,000 | ) | $ | (210,000 | ) | ||
| NET (LOSS) INCOME | $ | (1,312,000 | ) | $ | 9,451,000 | |||
| Net (loss) income per share: | ||||||||
Basic | $ | (0.05 | ) | $ | 0.39 | |||
Diluted | $ | (0.05 | ) | $ | 0.38 | |||
| Weighted average common shares outstanding: | ||||||||
Basic | 23,909,115 | 24,107,879 | ||||||
Diluted | 23,909,115 | 24,616,379 | ||||||
| Cash dividends declared per share | $ | 0.05 | $ | 0.05 | ||||
| NET (LOSS) INCOME | $ | (1,312,000 | ) | $ | 9,451,000 | |||
| OTHER COMPREHENSIVE (LOSS) INCOME | ||||||||
Net unrealized holding (loss) gain on corporate bonds and notes during the period, net of tax | (3,000 | ) | 11,000 | |||||
| COMPREHENSIVE (LOSS) INCOME | $ | (1,315,000 | ) | $ | 9,462,000 | |||
Condensed Consolidated Balance Sheet (Unaudited)
Cash and cash equivalents | $ | 42,459,000 | ||
Marketable securities, at fair value | $ | 14,076,000 | ||
Total current assets | $ | 56,646,000 | ||
Total assets | $ | 61,710,000 | ||
Total current liabilities | $ | 4,011,000 | ||
Total long term liabilities | $ | 102,000 | ||
Total stockholders' equity | $ | 57,597,000 | ||
SOURCE: Network-1 Technologies, Inc.
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FAQ
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