Network-1 Reports Second Quarter Results
Network-1 Technologies, Inc. (NTIP) reported its financial results for Q2 2021, revealing no revenue for the quarter but total revenue of $18.7 million for the first half, significantly up from $55,000 in Q2 2020. The revenue surge is attributed to a settlement with Cisco over licensing disputes. Despite a net loss of $783,000 for Q2 2021, the company achieved a net income of $8.7 million for the first half, an improvement from a net loss of $1.9 million in the same period last year. Network-1 maintains a strong cash position of $53.8 million.
- Increased revenues: $18.7 million in H1 2021 vs. $216,000 in H1 2020.
- Net income of $8.7 million for H1 2021, a significant turnaround from a net loss of $1.9 million in H1 2020.
- Strong cash position of $53.8 million indicates financial stability.
- Successful settlement with Hewlett-Packard results in $17 million payment anticipated to be recorded in Q3 2021.
- Net loss of $783,000 in Q2 2021 compared to $584,000 in Q2 2020, primarily due to increased litigation costs.
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NEW YORK, NY / ACCESSWIRE / August 12, 2021 / Network-1 Technologies, Inc. (NYSE American:NTIP), a company specializing in the development, licensing, and protection of its intellectual property assets, today announced financial results for the quarter ended June 30, 2021.
Network-1 had no revenue for the three months ended June 30, 2021 and revenue of
Network-1 realized a net loss of
Network-1 realized net income of
At June 30, 2021, Network-1 had cash and cash equivalents and marketable securities of
On July 26, 2021, Network-1 agreed to settle its patent litigation against Hewlett-Packard Company and Hewlett-Packard Enterprise Company (collectively, "HP") pending in the U.S. District Court for the Eastern District of Texas, Tyler Division, for infringement of Network-1's Remote Power Patent. Under the terms of the settlement agreement, Hewlett-Packard Enterprise Company paid Network-1
On June 9, 2020, the Board of Directors of Network-1 approved the continuation of Network-1's 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 eighty-seven (87) 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 three patent portfolios (the Cox, Mirror Worlds and M2M/IoT 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, 2020 and its Quarterly Reports on 10-Q for the three months ended March 31, 2021 and June 30, 2021 filed with the Securities and Exchange Commission including, among others, Network-1's uncertain revenue stream, uncertainty as to the outcome of pending litigations involving Network-1's Remote Power Patent, Mirror Worlds patent portfolio and Cox patent portfolio, 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, its M2M/IoT 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 condensed consolidated statements of operations and comprehensive loss and condensed consolidated balance sheet are attached.
Corey M. Horowitz, Chairman and CEO
Network-1 Technologies, Inc.
(212) 829-5770
(917) 692-0000
NETWORK-1 TECHNOLOGIES, INC. | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
| REVENUE | $ | - | $ | 55,000 | $ | 18,692,000 | $ | 216,000 | |||||||||
| OPERATING EXPENSES: | |||||||||||||||||
Costs of revenue | - | 20,000 | 5,420,000 | 52,000 | |||||||||||||
Professional fees and related costs | 308,000 | 124,000 | 663,000 | 523,000 | |||||||||||||
General and administrative | 461,000 | 459,000 | 974,000 | 945,000 | |||||||||||||
Amortization of patents | 73,000 | 72,000 | 147,000 | 144,000 | |||||||||||||
Stock-based compensation | 59,000 | 85,000 | 118,000 | 157,000 | |||||||||||||
| TOTAL OPERATING EXPENSES | 901,000 | 760,000 | 7,322,000 | 1,821,000 | |||||||||||||
| OPERATING INCOME (LOSS) | (901,000 | ) | (705,000 | ) | 11,370,000 | (1,605,000 | ) | ||||||||||
OTHER INCOME: | |||||||||||||||||
Interest and dividend income, net | 68,000 | 120,000 | 118,000 | 298,000 | |||||||||||||
Net realized and unrealized gain (loss) on marketable securities | 49,000 | 206,000 | 8,000 | (116,000 | ) | ||||||||||||
Total other income, net | 117,000 | 326,000 | 126,000 | 182,000 | |||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN NET LOSSES OF EQUITY METHOD INVESTEE | (784,000 | ) | (379,000 | ) | 11,496,000 | (1,423,000 | ) | ||||||||||
| INCOME TAXES PROVISION (BENEFIT): | |||||||||||||||||
| Current | (180,000 | ) | (142,000 | ) | 710,000 | (382,000 | ) | ||||||||||
| Deferred taxes, net | (52,000 | ) | 142,000 | 1,672,000 | 382,000 | ||||||||||||
| Total income taxes provision (benefit) | (232,000 | ) | -- | 2,382,000 | -- | ||||||||||||
| INCOME (LOSS) BEFORE SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE: | $ | (552,000 | ) | $ | (379,000 | ) | $ | 9,114,000 | $ | (1,423,000 | ) | ||||||
| SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE | $ | (231,000 | ) | $ | (205,000 | ) | $ | (446,000 | ) | $ | (498,000 | ) | |||||
NET INCOME (LOSS) | $ | (783,000 | ) | $ | (584,000 | ) | $ | 8,668,000 | $ | (1,921,000 | ) | ||||||
| Net Income (Loss) Per Share | |||||||||||||||||
Basic | $ | (0.03 | ) | $ | (0.02 | ) | $ | 0.36 | $ | (0.08 | ) | ||||||
Diluted | $ | (0.03 | ) | $ | (0.02 | ) | $ | 0.35 | $ | (0.08 | ) | ||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | 23,839,455 | 23,945,916 | 24,106,169 | 23,987,715 | |||||||||||||
Diluted | 23,839,455 | 23,945,916 | 24,878,257 | 23,987,715 | |||||||||||||
| Cash dividends declared per share | - | - | $ | 0.05 | $ | 0.05 | |||||||||||
| NET INCOME (LOSS) | $ | (783,000 | ) | $ | (584,000 | ) | $ | 8,668,000 | $ | (1,921,000 | ) | ||||||
OTHER COMPREHENSIVE INCOME (LOSS) Net unrealized holding gain (loss) on corporate bonds and notes during the period, net of tax | (3,000 | ) | 175,000 | 8,000 | (8,000 | ) | |||||||||||
| COMPREHENSIVE INCOME (LOSS) | $ | (786,000 | ) | $ | (409,000 | ) | $ | 8,676,000 | $ | (1,929,000 | ) | ||||||
Condensed Consolidated Balance Sheet as of June 30, 2021 (Unaudited) Cash and cash equivalents and marketable securities | |
| Total current assets | |
| Total assets | |
| Total current liabilities | |
| Total long term liabilities | |
| Total stockholders' equity | |
SOURCE: Network-1 Technologies, Inc.
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FAQ
What were the financial results for Network-1 Technologies (NTIP) in Q2 2021?
How much revenue did NTIP generate for the first half of 2021?
What caused the revenue increase for NTIP in 2021?
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What litigation settlement did NTIP reach with Hewlett-Packard?
