Press release 58740 - See attachment
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NEW CANAAN, CT / ACCESSWIRE / November 2, 2023 / Network-1 Technologies, Inc. (NYSE American:NTIP), a company specializing in the development, licensing, and monetization of its intellectual property assets, today announced financial results for the quarter ended September 30, 2023.
Network-1 had no revenue for the three month periods ended September 30, 2023 and 2022. For the nine month periods ended September 30, 2023 and 2022, Network-1 recorded
Network-1 realized a net loss of
Network-1 realized a net loss of
At September 30, 2023, Network-1 had cash and cash equivalents and marketable securities of
To date, Network‑1 has invested an aggregate of
On June 13, 2023, Network-1's Board of Directors authorized an extension and increase of its Share Repurchase Program to repurchase up to
Since the inception of the Share Repurchase Program through September 30, 2023, Network-1 has repurchased an aggregate of 9,523,982 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-nine (99) U.S. patents and fourteen (14) 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
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, 2022 and its Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023 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 Cox Patent Portfolio and Remote Power Patent, 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 (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, 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.
NETWORK-1 TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||
| -- | 82 | |||||||||||||||||||
| REVENUE | $ | - | $ | - | $ | 820,000 | $ | - | ||||||||||||
| OPERATING EXPENSES: | ||||||||||||||||||||
Costs of revenue | - | - | 232,000 | - | ||||||||||||||||
Professional fees and related costs | 109,000 | 117,000 | 466,000 | 524,000 | ||||||||||||||||
General and administrative | 679,000 | 639,000 | 2,070,000 | 1,812,000 | ||||||||||||||||
Amortization of patents | 71,000 | 82,000 | 236,000 | 233,000 | ||||||||||||||||
| TOTAL OPERATING EXPENSES | 859,000 | 838,000 | 3,004,000 | 2,569,000 | ||||||||||||||||
| OPERATING LOSS | (859,000 | ) | (838,000 | ) | (2,184,000 | ) | (2,569,000 | ) | ||||||||||||
| OTHER INCOME (LOSS): | ||||||||||||||||||||
Interest and dividend income, net | 406,000 | 321,000 | 1,161,000 | 532,000 | ||||||||||||||||
Gain on conversion of note | - | 271,000 | - | 271,000 | ||||||||||||||||
Gain on equity method investment | - | 3,727,000 | - | 3,727,000 | ||||||||||||||||
Net realized and unrealized gain (loss) on marketable securities | 131,000 | (268,000 | ) | 420,000 | (1,358,000 | ) | ||||||||||||||
Total other (loss) income, net | 537,000 | 4,051,000 | 1,581,000 | 3,172,000 | ||||||||||||||||
| (LOSS) INCOME BEFORE INCOME TAXES AND SHARE OF NET LOSS OF EQUITY METHOD INVESTEE | (322,000 | ) | 3,213,000 | (603,000 | ) | 603,000 | ||||||||||||||
| INCOME TAXES PROVISION: | ||||||||||||||||||||
| Current | (13,000 | ) | (274,000 | ) | (13,000 | ) | (274,000 | ) | ||||||||||||
| Deferred taxes, net | (31,000 | ) | 976,000 | (278,000 | ) | 422,000 | ||||||||||||||
| Total income tax benefit (expense) | (44,000 | ) | 702,000 | (229,000 | ) | 148,000 | ||||||||||||||
| (LOSS) INCOME BEFORE SHARE OF NET LOSS OF EQUITY METHOD INVESTEE: | (278,000 | ) | 2,511,000 | (312,000 | ) | 455,000 | ||||||||||||||
| SHARE OF NET LOSS OF EQUITY METHOD INVESTEE | (532,000 | ) | (285,000 | ) | (1,597,000 | ) | (1,073,000 | ) | ||||||||||||
NET (LOSS) INCOME | $ | (810,000 | ) | $ | 2,226,000 | $ | (1,909,000 | ) | $ | (618,000 | ) | |||||||||
| Net (loss) income per share | ||||||||||||||||||||
Basic | $ | (0.03 | ) | $ | 0.09 | $ | (0.08 | ) | $ | (0.03 | ) | |||||||||
Diluted | $ | (0.03 | ) | $ | 0.09 | $ | (0.08 | ) | $ | (0.03 | ) | |||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||
Basic | 23,803,567 | 23,765,089 | 23,867,204 | 23,830,702 | ||||||||||||||||
Diluted | 23,803,567 | 24,065,724 | 23,867,204 | 23,830,702 | ||||||||||||||||
| Cash dividends declared per share | $ | 0.05 | $ | 0.05 | $ | 0.10 | $ | 0.10 | ||||||||||||
| NET (LOSS) INCOME | $ | (810,000 | ) | $ | 2,226,000 | $ | (1,909,000 | ) | $ | (618,000 | ) | |||||||||
OTHER COMPREHENSIVE INCOME (LOSS) Net unrealized holding gain (loss) on corporate bonds and notes during the period, net of tax | _14,000 | 2,000 | _ 14,000 | (2,000 | ) | |||||||||||||||
| COMPREHENSIVE (LOSS) INCOME | $ | (796,000 | ) | $ | 2,228,000 | $ | (1,895,000 | ) | $ | (620,000 | ) | |||||||||
NETWORK-1 TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
September 30, 2023 | December 31, 2022 | |||||||
ASSETS CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 20,886,000 | $ | 13,448,000 | ||||
Marketable securities, at fair value | 23,682,000 | 34,991,000 | ||||||
Prepaid taxes | 308,000 | 177,000 | ||||||
Other current assets | 41,000 | 348,000 | ||||||
TOTAL CURRENT ASSETS | 44,917,000 | 48,964,000 | ||||||
OTHER ASSETS: | ||||||||
Patents, net of accumulated amortization | 1,356,000 | 1,592,000 | ||||||
Equity investment | 5,655,000 | 7,252,000 | ||||||
Operating leases right-of-use asset | 16,000 | 161,000 | ||||||
Security deposit | 13,000 | - | ||||||
Total Other Assets | 7,040,000 | 9,005,000 | ||||||
TOTAL ASSETS | $ | 51,957,000 | $ | 57,969,000 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY: CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 250,000 | $ | 507,000 | ||||
Income taxes payable | 26,000 | 115,000 | ||||||
Accrued payroll | 1,000 | 317,000 | ||||||
Other accrued expenses | 350,000 | 587,000 | ||||||
Operating lease obligation, current | 23,000 | 79,000 | ||||||
Total Current Liabilities | 650,000 | 1,605,000 | ||||||
LONG TERM LIABILITIES: | ||||||||
Deferred tax liability | 883,000 | 1,161,000 | ||||||
Operating lease obligation, non-current | - | 94,000 | ||||||
TOTAL LIABILITIES | 1,533,000 | 2,860,000 | ||||||
COMMITMENTS AND CONTINGENCIES (Note G) | ||||||||
STOCKHOLDERS' EQUITY | ||||||||
Preferred stock, none issued and outstanding at September 30, 2023 and December 31, 2022 | - | - | ||||||
Common stock, | 236,000 | 239,000 | ||||||
Additional paid-in capital | 67,326,000 | 66,939,000 | ||||||
Accumulated deficit | (17,138,000 | ) | (12,055,000 | ) | ||||
Accumulated other comprehensive loss | - | (14,000 | ) | |||||
TOTAL STOCKHOLDERS' EQUITY | 50,424,000 | 55,109,000 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 51,957,000 | $ | 57,969,000 | ||||
SOURCE: Network-1 Technologies, Inc.
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