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Network-1 Reports Second Quarter Results

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Network-1 Technologies, Inc. (NYSE American:NTIP) reported financial results for Q2 2024. Key points include:

- Revenue of $100,000 for Q2 and H1 2024, down from $283,000 and $820,000 in the same periods of 2023

- Net loss of $658,000 ($0.03 per share) for Q2 2024, compared to a net loss of $476,000 ($0.02 per share) in Q2 2023

- Cash and cash equivalents of $42,599,000 as of June 30, 2024

- Repurchased 373,701 shares at an average price of $1.84 in Q2 2024

- Continued semi-annual dividend of $0.05 per share

The company focuses on acquiring and monetizing intellectual property, with 102 U.S. patents and 16 international patents in various technology areas.

Network-1 Technologies, Inc. (NYSE American: NTIP) ha riportato i risultati finanziari per il secondo trimestre del 2024. I punti chiave includono:

- Ricavi di 100.000 dollari per il secondo trimestre e il primo semestre del 2024, in calo rispetto ai 283.000 dollari e 820.000 dollari negli stessi periodi del 2023

- Perdita netta di 658.000 dollari (0,03 dollari per azione) per il secondo trimestre del 2024, rispetto a una perdita netta di 476.000 dollari (0,02 dollari per azione) nel secondo trimestre del 2023

- Liquidità e liquidità equivalenti di 42.599.000 dollari al 30 giugno 2024

- Riacquisto di 373.701 azioni a un prezzo medio di 1,84 dollari nel secondo trimestre del 2024

- Dividendo semestrale continuato di 0,05 dollari per azione

L'azienda si concentra sull'acquisizione e monetizzazione della proprietà intellettuale, con 102 brevetti negli Stati Uniti e 16 brevetti internazionali in vari settori tecnologici.

Network-1 Technologies, Inc. (NYSE American: NTIP) reportó resultados financieros para el segundo trimestre de 2024. Los puntos clave incluyen:

- Ingresos de 100,000 dólares para el segundo trimestre y el primer semestre de 2024, en comparación con 283,000 dólares y 820,000 dólares en los mismos períodos de 2023

- Pérdida neta de 658,000 dólares (0.03 dólares por acción) para el segundo trimestre de 2024, comparado con una pérdida neta de 476,000 dólares (0.02 dólares por acción) en el segundo trimestre de 2023

- Efectivo y equivalentes de efectivo de 42,599,000 dólares al 30 de junio de 2024

- Recompra de 373,701 acciones a un precio promedio de 1.84 dólares en el segundo trimestre de 2024

- Dividendo semestral continuado de 0.05 dólares por acción

La compañía se centra en adquirir y monetizar propiedad intelectual, con 102 patentes en EE. UU. y 16 patentes internacionales en varias áreas tecnológicas.

Network-1 Technologies, Inc. (NYSE American: NTIP)는 2024년 2분기 재무 결과를 발표했습니다. 주요 사항은 다음과 같습니다:

- 2024년 2분기 및 상반기 수익 100,000달러, 2023년 동일 기간의 283,000달러 및 820,000달러에서 감소

- 2024년 2분기 순손실 658,000달러 (주당 0.03달러), 2023년 2분기의 순손실 476,000달러 (주당 0.02달러)와 비교

- 2024년 6월 30일 기준 현금 및 현금성 자산 42,599,000달러

- 2024년 2분기에 평균 가격 1.84달러로 373,701주를 재구매

- 주당 0.05달러의 반기 배당금 지속

회사는 102개의 미국 특허 및 다양한 기술 분야에서 16개의 국제 특허를 소유하여 지적 재산의 인수 및 수익화에 중점을 두고 있습니다.

Network-1 Technologies, Inc. (NYSE American: NTIP) a rapporté les résultats financiers pour le deuxième trimestre de 2024. Les points clés incluent :

- Revenus de 100 000 dollars pour le deuxième trimestre et le premier semestre de 2024, en baisse par rapport à 283 000 dollars et 820 000 dollars aux mêmes périodes de 2023

- Perte nette de 658 000 dollars (0,03 dollar par action) pour le deuxième trimestre de 2024, comparée à une perte nette de 476 000 dollars (0,02 dollar par action) au deuxième trimestre de 2023

- Liquidités et équivalents de liquidités de 42 599 000 dollars au 30 juin 2024

- Rachat de 373 701 actions à un prix moyen de 1,84 dollar au deuxième trimestre de 2024

- Dividende semestriel maintenu de 0,05 dollar par action

La société se concentre sur l'acquisition et la monétisation de la propriété intellectuelle, avec 102 brevets américains et 16 brevets internationaux dans divers domaines technologiques.

Network-1 Technologies, Inc. (NYSE American: NTIP) hat die finanziellen Ergebnisse für das 2. Quartal 2024 bekannt gegeben. Die wichtigsten Punkte sind:

- Umsatz von 100.000 Dollar für das 2. Quartal und das 1. Halbjahr 2024, ein Rückgang gegenüber 283.000 Dollar und 820.000 Dollar in denselben Perioden 2023

- Nett verlust von 658.000 Dollar (0,03 Dollar pro Aktie) für das 2. Quartal 2024, im Vergleich zu einem Nett verlust von 476.000 Dollar (0,02 Dollar pro Aktie) im 2. Quartal 2023

- Bargeld und Zahlungsmitteläquivalente von 42.599.000 Dollar

- Rückkauf von 373.701 Aktien zu einem durchschnittlichen Preis von 1,84 Dollar im 2. Quartal 2024

- Fortführung der halbjährlichen Dividende von 0,05 Dollar pro Aktie

Das Unternehmen konzentriert sich auf den Erwerb und die Monetarisierung von geistigem Eigentum und besitzt 102 US-Patente sowie 16 internationale Patente in verschiedenen Technologiebereichen.

Positive
  • Strong cash position of $42,599,000 and working capital of $42,369,000
  • Continued share repurchase program, buying back 373,701 shares in Q2 2024
  • Maintained semi-annual dividend of $0.05 per share
  • Ownership of 102 U.S. patents and 16 international patents in various technology areas
Negative
  • Revenue decreased to $100,000 in Q2 2024 from $283,000 in Q2 2023
  • Net loss increased to $658,000 in Q2 2024 from $476,000 in Q2 2023
  • Net loss for H1 2024 increased to $1,578,000 from $1,099,000 in H1 2023

Insights

Network-1's Q2 2024 results reveal concerning trends. Revenue dropped significantly to $100,000 for both Q2 and H1 2024, compared to $283,000 and $820,000 in the same periods of 2023. This 64.7% quarterly and 87.8% half-yearly decline is substantial.

Net losses widened to $658,000 ($0.03 per share) in Q2 2024 and $1,578,000 ($0.07 per share) for H1 2024, up from $476,000 and $1,099,000 respectively in 2023. This indicates deteriorating profitability.

Despite these challenges, Network-1 maintains a strong liquidity position with $42,599,000 in cash and marketable securities. The company's share repurchase program and consistent dividend payments demonstrate confidence in its financial stability, but investors should monitor future revenue generation closely.

Network-1's business model, focused on intellectual property monetization, faces headwinds. The significant revenue decline suggests challenges in licensing or enforcing their patent portfolio. The $100,000 revenue in H1 2024 came solely from a lawsuit settlement, indicating difficulties in generating recurring licensing income.

However, Network-1's extensive portfolio of 102 U.S. patents and 16 international patents across various tech domains remains a valuable asset. Their historical success, particularly the Remote Power Patent generating over $188 million since 2007, demonstrates the potential of their strategy.

The company's focus on high-quality patents in emerging fields like M2M/IoT and HFT could yield future opportunities. Investors should watch for new licensing agreements or legal victories that could rapidly improve the company's financial performance.

NEW CANAAN, CT / ACCESSWIRE / August 12, 2024 / Network-1 Technologies, Inc. (NYSE American:NTIP), a company specializing in the acquisition, development, licensing, and monetization of its intellectual property assets, today announced financial results for the quarter ended June 30, 2024.

Network-1 had revenue of $100,000 for the three and six months ended June 30, 2024 as compared to $283,000 and $820,000 for the three and six months ended June 30, 2023. The revenue for the three and six months ended June 30, 2024 was from the settlement of a lawsuit relating to Network-1's Remote Power Patent.

Network-1 realized a net loss of $658,000 or $0.03 per share basic and diluted for the three months ended June 30, 2024 as compared to a net loss of $476,000 or $0.02 per share basic and diluted for the three months ended June 30, 2023.

Network-1 realized a net loss of $1,578,000 or $0.07 per share basic and diluted for the six months ended June 30, 2024 as compared to a net loss of $1,099,000 or $0.05 per share basic and diluted for the six months ended June 30, 2023.

At June 30, 2024, Network-1 had cash and cash equivalents and marketable securities of $42,599,000 and working capital of $42,369,000.Network-1 believes based on its current cash position it will have sufficient cash to fund its operations for the next twelve months and the foreseeable future.

Since the inception of the Share Repurchase Program through June 30, 2024, Network-1 has repurchased an aggregate of 10,098,241 shares of its common stock at an aggregate cost of $19,583,396 (exclusive of commissions) or an average per share price of $1.94. During the three months ended June 30, 2024, Network-1 repurchased an aggregate of 373,701 shares of its common stock at an aggregate cost of $688,410 (exclusive of commissions) or an average per share price of $1.84. During the six months ended June 30, 2024, Network-1 repurchased an aggregate of 457,445 shares of its common stock at an aggregate cost of $870,480 (exclusive of commissions) or an average per share price of $1.90. At June 30, 2024, the remaining dollar value of shares that may be repurchased under the Share Repurchase Program was $3,502,225.

Network‑1 continues to pay dividends consistent with its dividend policy which consists of semi-annual cash dividends of $0.05 per share ($0.10 per share annually) which are anticipated to be paid in March and September of each year. On February 23, 2024, Network-1's Board of Directors declared a semi-annual cash dividend of $0.05 per share which was paid on March 29, 2024 to all shareholders of record as of March 15, 2024. Network-1's dividend policy undergoes a periodic review by the Board of Directors and is subject to change at any time depending upon Network-1's earnings, financial requirements and other factors existing at the time.

ABOUT NETWORK-1 TECHNOLOGIES, INC.

Network-1 Technologies, Inc. is engaged in the acquisition, 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 one-hundred two (102) U.S. patents and sixteen (16) international 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 five patent portfolios (the Cox, M2M/IoT, HFT, Mirror Worlds and Remote Power 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 $188,000,000 from May 2007 through June 30, 2024. Network-1 has achieved licensing and other revenue of $47,150,000 through June 30, 2024 with respect to its Mirror Worlds Patent Portfolio.

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, 2023 and its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024 filed with the Securities and Exchange Commission including, among others, Network-1's uncertain revenue from licensing its intellectual property, uncertainty as to the outcome of pending litigation involving Network-1's Remote Power Patent, whether Network-1 in its Cox patent litigation against Google and YouTube will be successful in its appeal of the judgment of the U.S. District Court for the Southern District of New York dismissing all of Network-1's claims in the case, whether Network-1 will be successful in its appeal to the Federal Circuit of the District Court judgment of non-infringement dismissing Network-1's litigation against Facebook (now Meta Platforms, Inc.), 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 and Remote Power Patent 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, the increasing development of artificial intelligence could materially impact Network-1's business, and 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 condensed consolidated balance sheets are attached.

NETWORK-1 TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

Three Months Ended
June 30,

Six Months Ended
June 30,

2024

2023

2024

2023

REVENUE

$

100,000

$

283,000

$

100,000

$

820,000


OPERATING EXPENSES :

Costs of revenue

28,000

81,000

28,000

232,000

Professional fees and related costs

147,000

59,000

366,000

357,000

General and administrative

519,000

610,000

1,188,000

1,391,000

Amortization of patents

30,000

82,000

60,000

165,000


TOTAL OPERATING EXPENSES

724,000

832,000

1,642,000

2,145,000


OPERATING LOSS

(624,000

)

(549,000

)

(1,542,000

)

(1,325,000

)

OTHER INCOME (LOSS):

Interest and dividend income, net

452,000

445,000

883,000

755,000

Net realized and unrealized gain (loss) on marketable securities

54,000

(75,000

)

102,000

289,000

Total other income, net

506,000

370,000

985,000

1,044,000

LOSS BEFORE INCOME TAXES AND SHARE OF NET
LOSSES OF EQUITY METHOD INVESTEE



(118,000)



(179,000)



(557,000)



(281,000)


INCOME TAXES PROVISION :

Current

-

-

-

-

Deferred taxes, net

(137,000

)

(94,000

)

(284,000

)

(247,000

)

Total income tax benefit

(137,000

)

(94,000

)

(284,000

)

(247,000

)


INCOME (LOSS) BEFORE SHARE OF NET LOSS OF EQUITY METHOD INVESTEE:

19,000

(85,000

)

(273,000

)

(34,000

)

SHARE OF NET LOSS OF EQUITY METHOD INVESTEE


(677,000)


(391,000)



(1,305,000)



(1,065,000)


NET LOSS

$

(658,000

)

$

(476,000

)

$

(1,578,000

)

$

(1,099,000

)


Net loss per share

Basic

$

(0.03

)

$

(0.02

)

$

(0.07

)

$

(0.05

)

Diluted

$

(0.03

)

$

(0.02

)

$

(0.07

)

$

(0.05

)


Weighted average common shares outstanding:

Basic

23,296,555

23,803,567

23,444,145

23,865,141

Diluted

23,296,555

23,803,567

23,444,145

23,865,141


Cash dividends declared per share

-

-

$

0.05

$

0.05

NETWORK-1 TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

June 30,
2024

December 31,
2023

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

19,939,000

$

16,896,000

Marketable securities, at fair value

22,660,000

28,571,000

Other current assets

182,000

206,000

TOTAL CURRENT ASSETS

42,781,000

45,673,000

OTHER ASSETS:

Patents, net of accumulated amortization

1,266,000

1,326,000

Equity investment

3,944,000

5,249,000

Operating leases right-of-use asset

59,000

16,000

Security deposit

13,000

13,000

Total Other Assets

5,282,000

6,604,000

TOTAL ASSETS

$

48,063,000

$

52,277,000

LIABILITIES AND STOCKHOLDERS' EQUITY:

CURRENT LIABILITIES:

Accounts payable

$

206,000

$

125,000

Accrued payroll

6,000

378,000

Accrued contingency fees and related costs

23,000

-

Other accrued expenses

120,000

297,000

Operating lease obligation, current

57,000

23,000

Total Current Liabilities

412,000

823,000

LONG TERM LIABILITIES:

Deferred tax liability

478,000

762,000

TOTAL LIABILITIES

$

890,000

$

1,585,000

COMMITMENTS AND CONTINGENCIES (Note G)

STOCKHOLDERS' EQUITY
Preferred stock, $0.01 par value, authorized 10,000,000 shares;
none issued and outstanding at June 30, 2024 and December 31, 2023

-



-

Common stock, $0.01 par value; authorized 50,000,000 shares;
23,190,110 and 23,553,908 shares issued and outstanding at
June 30, 2024 and December 31, 2023, respectively




232,000




235,000

Additional paid-in capital

67,654,000

67,446,000

Accumulated deficit

(20,713,000

)

(16,989,000

)


TOTAL STOCKHOLDERS' EQUITY

47,173,000

50,692,000

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

48,063,000

$

52,277,000

Corey M. Horowitz, Chairman and CEO
Network-1 Technologies, Inc.
(203) 920-1055
(917) 692-0000

SOURCE: Network-1 Technologies, Inc.



View the original press release on accesswire.com

FAQ

What was Network-1's (NTIP) revenue for Q2 2024?

Network-1 reported revenue of $100,000 for Q2 2024.

How much did Network-1 (NTIP) lose in Q2 2024?

Network-1 reported a net loss of $658,000 or $0.03 per share for Q2 2024.

What is Network-1's (NTIP) cash position as of June 30, 2024?

Network-1 had cash and cash equivalents and marketable securities of $42,599,000 as of June 30, 2024.

How many shares did Network-1 (NTIP) repurchase in Q2 2024?

Network-1 repurchased 373,701 shares at an average price of $1.84 in Q2 2024.

Network-1 Technologies, Inc.

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