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Network-1 Reports Third Quarter Results

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Network-1 Technologies (NYSE American:NTIP) reported financial results for Q3 2024. The company recorded no revenue for Q3 2024 and 2023, with revenue of $100,000 for the nine months ended September 30, 2024, down from $820,000 in the same period of 2023. The company reported a net loss of $316,000 ($0.01 per share) for Q3 2024, compared to a loss of $810,000 ($0.03 per share) in Q3 2023. As of September 30, 2024, Network-1 had cash and marketable securities of $41.5 million and working capital of $41.1 million. The company maintained its semi-annual dividend of $0.05 per share and continued its share repurchase program, buying back 119,615 shares in Q3 2024.

Network-1 Technologies (NYSE American:NTIP) ha riportato i risultati finanziari per il terzo trimestre del 2024. L'azienda ha registrato nessun ricavo per il terzo trimestre 2024 e 2023, con un ricavo di 100.000 dollari per i nove mesi conclusi il 30 settembre 2024, in calo rispetto ai 820.000 dollari nello stesso periodo del 2023. L'azienda ha riportato una perdita netta di 316.000 dollari (0,01 dollari per azione) per il terzo trimestre del 2024, rispetto a una perdita di 810.000 dollari (0,03 dollari per azione) nel terzo trimestre del 2023. Al 30 settembre 2024, Network-1 aveva liquidità e titoli negoziabili per 41,5 milioni di dollari e capitale circolante di 41,1 milioni di dollari. L'azienda ha mantenuto il suo dividendo semestrale di 0,05 dollari per azione e ha continuato il programma di riacquisto delle azioni, riacquistando 119.615 azioni nel terzo trimestre del 2024.

Network-1 Technologies (NYSE American:NTIP) informó los resultados financieros para el tercer trimestre de 2024. La empresa no registró ingresos para el tercer trimestre de 2024 y 2023, con ingresos de 100.000 dólares para los nueve meses finalizados el 30 de septiembre de 2024, un descenso de 820.000 dólares en el mismo período de 2023. La compañía reportó una pérdida neta de 316.000 dólares (0.01 dólares por acción) para el tercer trimestre de 2024, en comparación con una pérdida de 810.000 dólares (0.03 dólares por acción) en el tercer trimestre de 2023. Al 30 de septiembre de 2024, Network-1 tenía efectivo y valores negociables por 41.5 millones de dólares y un capital de trabajo de 41.1 millones de dólares. La empresa mantuvo su dividendo semestral de 0.05 dólares por acción y continuó con su programa de recompra de acciones, comprando 119.615 acciones en el tercer trimestre de 2024.

Network-1 Technologies (NYSE American:NTIP)는 2024년 3분기 재무 결과를 발표했습니다. 회사는 2024년 및 2023년 3분기에 매출이 없었습니다, 2024년 9월 30일로 종료된 9개월 동안의 수익은 100,000달러로, 2023년 같은 기간의 820,000달러에서 감소했습니다. 회사는 2024년 3분기에 316,000달러의 순손실 (주당 0.01달러)을 기록했으며, 이는 2023년 3분기의 810,000달러 손실 (주당 0.03달러)와 비교됩니다. 2024년 9월 30일 기준으로 Network-1은 현금 및 유가증권 4,150만 달러와 운전 자본 4,110만 달러를 보유하고 있었습니다. 회사는 주당 0.05달러의 반기 배당금을 유지하고 있으며, 2024년 3분기에 119,615주를 매입하는 자사주 매입 프로그램을 계속 진행하고 있습니다.

Network-1 Technologies (NYSE American:NTIP) a annoncé les résultats financiers pour le troisième trimestre 2024. L'entreprise a enregistré aucun revenu pour le troisième trimestre 2024 et 2023, avec des revenus de 100 000 dollars pour les neuf mois se terminant le 30 septembre 2024, en baisse par rapport à 820 000 dollars pour la même période en 2023. L'entreprise a enregistré une perte nette de 316 000 dollars (0,01 dollar par action) pour le troisième trimestre 2024, contre une perte de 810 000 dollars (0,03 dollar par action) au troisième trimestre 2023. Au 30 septembre 2024, Network-1 disposait de liquidités et de valeurs mobilières de 41,5 millions de dollars et d'un fonds de roulement de 41,1 millions de dollars. L'entreprise a maintenu son dividende semestriel de 0,05 dollar par action et a poursuivi son programme de rachat d'actions, rachetant 119 615 actions au troisième trimestre 2024.

Network-1 Technologies (NYSE American:NTIP) hat die finanziellen Ergebnisse für das dritte Quartal 2024 präsentiert. Das Unternehmen verzeichnete keine Einnahmen für das dritte Quartal 2024 und 2023, mit Einnahmen von 100.000 US-Dollar für die neun Monate bis zum 30. September 2024, was einem Rückgang von 820.000 US-Dollar im gleichen Zeitraum 2023 entspricht. Das Unternehmen meldete einen Nettoverlust von 316.000 US-Dollar (0,01 US-Dollar pro Aktie) für das dritte Quartal 2024, verglichen mit einem Verlust von 810.000 US-Dollar (0,03 US-Dollar pro Aktie) im dritten Quartal 2023. Zum 30. September 2024 hatte Network-1 Barmittel und handelbare Wertpapiere in Höhe von 41,5 Millionen US-Dollar und einen Working Capital von 41,1 Millionen US-Dollar. Das Unternehmen hielt an seiner halbjährlichen Dividende von 0,05 US-Dollar pro Aktie fest und setzte sein Aktienrückkaufprogramm fort, indem es im dritten Quartal 2024 119.615 Aktien zurückkaufte.

Positive
  • Strong cash position with $41.5 million in cash and marketable securities
  • Reduced quarterly net loss from $810,000 in Q3 2023 to $316,000 in Q3 2024
  • Maintains consistent dividend payment policy
  • Active share repurchase program with $3.3 million remaining authorization
Negative
  • No revenue generated in Q3 2024
  • Nine-month revenue declined 88% from $820,000 to $100,000 year-over-year
  • Continued net losses for both three and nine-month periods
  • Significant losses from equity method investee ($308,000 in Q3 2024)

Insights

The Q3 2024 results show concerning trends with zero revenue for the quarter and only $100,000 for the nine months of 2024, down significantly from $820,000 in the same period last year. The net loss narrowed to $316,000 ($0.01 per share) from $810,000 ($0.03 per share) year-over-year, mainly due to lower losses from equity investments.

The company maintains a strong balance sheet with $41.5M in cash and securities, supporting its dividend policy and share buyback program. However, the core business model shows weakness - revenue generation from patent monetization has slowed considerably. While historical success includes $188M from the Remote Power Patent, current patent portfolios aren't generating meaningful income. The continued share repurchases at an average price of $1.84 and semi-annual dividends of $0.05 per share provide some shareholder returns but don't address the fundamental revenue challenges.

NEW CANAAN, CT / ACCESSWIRE / October 24, 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 September 30, 2024.

Network-1 had no revenue for the three month periods ended September 30, 2024 and 2023. For the nine month periods ended September 30, 2024 and 2023, Network-1 recorded revenue of $100,000 and $820,000, respectively. The revenue for the nine months ended September 30, 2024 and 2023 was from settlements of litigation relating to Network-1's Remote Power Patent.

Network-1 realized a net loss of $316,000 or $0.01 per share basic and diluted for the three months ended September 30, 2024 compared with net loss of $810,000 or $0.03 per share basic and diluted for the three months ended September 30, 2023. Included in net loss is Network-1's share of the net loss of its equity method investee of $308,000 and $532,000, respectively, during the three months ended September 30, 2024 and 2023.

Network-1 realized a net loss of $1,894,000 or $0.08 per share basic and diluted for the nine months ended September 30, 2024 compared with net loss of $1,909,000 or $0.08 per share basic and diluted for the nine months ended September 30, 2023. Included in net loss is Network-1's share of the net loss of its equity method investee of $1,613,000 and $1,597,000, respectively, during the nine months ended September 30, 2024 and 2023.

At September 30, 2024, Network-1 had cash and cash equivalents and marketable securities of $41,516,000 and working capital of $41,058,000.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.

During the three months ended September 30, 2024, Network-1 repurchased an aggregate of 119,615 shares of its common stock at an aggregate cost of $189,424 (exclusive of commissions and excise taxes) or an average per share price of $1.58. During the nine months ended September 30, 2024, Network-1 repurchased an aggregate of 577,060 shares of its common stock at an aggregate cost of $1,059,904 (exclusive of commissions and excise taxes) or an average per share price of $1.84. At September 30, 2024, the remaining dollar value of shares that may be repurchased under the Share Repurchase Program was $3,312,801. Since the inception of the Share Repurchase Program through September 30, 2024, Network-1 has repurchased an aggregate of 10,217,856 shares of its common stock at an aggregate cost of $19,772,820 (exclusive of commissions and excise taxes) or an average per share price of $1.94.

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 August 27, 2024, the Board of Directors of Network-1 declared a semi-annual cash dividend of $0.05 per common share which was paid on September 26, 2024 to all common stockholders of record as of September 12, 2024. 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 four (104) 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 September 30, 2024. Network-1 has achieved licensing and other revenue of $47,150,000 through September 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 September 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 comprehensive loss and condensed consolidated balance sheets are attached.

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

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

Three Months Ended
September,

Nine Months Ended
September,

2024

2023

2024

2023

REVENUE

$

-

$

-

$

100,000

$

820,000

OPERATING EXPENSES:

Costs of revenue

-

-

28,000

232,000

Professional fees and related costs

290,000

109,000

656,000

466,000

General and administrative

576,000

679,000

1,764,000

2,070,000

Amortization of patents

30,000

71,000

90,000

236,000

TOTAL OPERATING EXPENSES

896,000

859,000

2,538,000

3,004,000

OPERATING LOSS

(896,000

)

(859,000

)

(2,438,000

)

(2,184,000

)

OTHER INCOME:

Interest and dividend income, net

524,000

406,000

1,407,000

1,161,000

Net realized and unrealized gain on marketable securities

293,000

131,000

395,000

420,000

Total other income, net

817,000

537,000

1,802,000

1,581,000

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

(79,000

)

(322,000

)

(636,000

)

(603,000

)

INCOME TAXES PROVISION:

Current

-

(13,000

)

-

(13,000

)

Deferred taxes, net

(71,000

)

(31,000

)

(355,000

)

(278,000

)

Total income tax benefit

(71,000

)

(44,000

)

(355,000

)

(229,000

)

LOSS BEFORE SHARE OF NET LOSS OF EQUITY METHOD INVESTEE:

(8,000

)

(278,000

)

(281,000

)

(312,000

)

SHARE OF NET LOSS OF EQUITY METHOD INVESTEE

(308,000

)

(532,000

)

(1,613,000

)

(1,597,000

)

NET LOSS

$

(316,000

)

$

(810,000

)

$

(1,894,000

)

$

(1,909,000

)

Net loss per share

Basic

$

(0.01

)

$

(0.03

)

$

(0.08

)

$

(0.08

)

Diluted

$

(0.01

)

$

(0.03

)

$

(0.08

)

$

(0.08

)

Weighted average common shares outstanding:

Basic

23,126,480

23,803,567

23,337,716

23,867,204

Diluted

23,126,480

23,803,567

23,337,716

23,867,204

Cash dividends declared per share

$

0.05

$

0.05

$

0.10

$

0.10

NET LOSS

$


(316,000)

$


(810,000)

$


(1,894,000)

$


(1,909,000)

OTHER COMPREHENSIVE LOSS
Net unrealized holding gain on corporate bonds and notes during the period, net of tax

-

14,000

-

14,000

COMPREHENSIVE LOSS

$

(316,000

)

$

(796,000

)

$

(1,894,000

)

$

(1,895,000

)

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

September 30,

December 31,

2024

2023

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

14,315,000

$

16,896,000

Marketable securities, at fair value

27,201,000

28,571,000

Other current assets

141,000

206,000

TOTAL CURRENT ASSETS

41,657,000

45,673,000

OTHER ASSETS:

Patents, net of accumulated amortization

1,236,000

1,326,000

Equity investment

3,636,000

5,249,000

Operating leases right-of-use asset

43,000

16,000

Security deposit

13,000

13,000

Total Other Assets

4,928,000

6,604,000

TOTAL ASSETS

$

46,585,000

$

52,277,000

LIABILITIES AND STOCKHOLDERS' EQUITY:

CURRENT LIABILITIES:

Accounts payable

$

371,000

$

125,000

Accrued payroll

6,000

378,000

Other accrued expenses

182,000

297,000

Operating lease obligation, current

40,000

23,000

Total Current Liabilities

599,000

823,000

LONG TERM LIABILITIES:

Deferred tax liability

407,000

762,000

TOTAL LIABILITIES

1,006,000

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 September 30, 2024 and December 31, 2023

-


-

Common stock, $0.01 par value; authorized 50,000,000 shares; 23,110,495 and 23,553,908 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively



231,000



235,000

Additional paid-in capital

67,757,000

67,446,000

Accumulated deficit

(22,409,000

)

(16,989,000

)

TOTAL STOCKHOLDERS' EQUITY

45,579,000

50,692,000

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

46,585,000

$

52,277,000

SOURCE: Network-1 Technologies, Inc.



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FAQ

What was Network-1's (NTIP) revenue for Q3 2024?

Network-1 reported no revenue for Q3 2024.

How much cash does Network-1 (NTIP) have as of September 30, 2024?

Network-1 had $41.5 million in cash and cash equivalents and marketable securities as of September 30, 2024.

What is Network-1's (NTIP) dividend payment for 2024?

Network-1 pays semi-annual dividends of $0.05 per share ($0.10 annually), distributed in March and September.

How many shares did Network-1 (NTIP) repurchase in Q3 2024?

Network-1 repurchased 119,615 shares at an average price of $1.58 per share during Q3 2024.

Network-1 Technologies, Inc.

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