Quest Patent Research Corporation announces $3.6 million net income for 2023

Rhea-AI Summary

Quest Patent Research (QPRC) reports a significant turnaround in financial performance for the year ended December 31, 2023, with a net income of $3.6 million and revenues of $13.2 million, compared to a loss of $0.8 million and revenues of $0.5 million in 2022.

Positive

• QPRC achieved a notable net income of $3.6 million for the year 2023.
• The company's revenues surged to $13.2 million in 2023 from $0.5 million in 2022.
• Revenue growth was attributed to the settlement of patent infringement litigation.
• QPRC demonstrated a remarkable financial turnaround compared to the previous year.

Negative

• None.

RYE, N.Y., March 28, 2024 /PRNewswire/ -- Quest Patent Research Corporation (OTCQB: QPRC) (the "Company" or "Quest"), announced today the results of its operations for the year ended December 31, 2023. For the year ended December 31, 2023, the Company generated net income of approximately $3.6 million, or $0.68 per share (basic and diluted), on revenues of approximately $13.2 million as compared to a loss of approximately $0.8 million on revenues of $0.5 million for the year ended December 31, 2022. Revenue from both years was generated from the settlement of patent infringement litigation. The Company's balance sheet, statement of operations and statements of cash flows are included as exhibits to this press release.

About Quest Patent Research Corporation

Quest is an intellectual property asset management company. Its principal operations include the acquisition, licensing and enforcement of intellectual property rights that are either owned or controlled by the Company. Quest currently owns, controls or manages 22 intellectual property portfolios of which it is currently seeking or may seek monetization with respect to twelve portfolios, which principally consist of patent rights. Quest's business is described in its annual report on Form 10-K for the year ended December 31, 2023, which was filed with the Securities and Exchange Commission on March 28, 2024. Quest's website is www.qprc.com. Information contained on or derived from Quest's website, or any other website or any social media does not constitute a part of this press release.

Cautionary Note Regarding Forward-Looking Statements

This press release and the earnings call contain "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. The words "expect," "believe," "estimate," "intend," "plan," "anticipate," "may," "should," "strategy," "future," "will," "project," "potential" and similar expressions indicate forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. These risks and uncertainties include, but are not limited to the risk that the Quest may not generate any significant revenue or operate profitably in the future and the other risks described in "Forward Looking Statements," "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Quest's Form 10-K for the year ended December 31, 2023, which was filed with the Securities and Exchange Commission on March 28, 2024.

QUEST PATENT RESEARCH CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
		December 31,
		2023		2022
ASSETS
Current assets
Cash and cash equivalents		$                     563,484		$                       90,601
Accounts receivable, net of allowance for credit losses of $0 and $0, respectively		3,008,250		—
Other current assets		28,121		5,321
Total current assets		3,599,855		95,922
Patents, net of accumulated amortization of $2,412,397 and $1,625,846, respectively		3,674,603		1,131,154
Total assets		$                 7,274,458		$                  1,227,076
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable and accrued liabilities		296,536		148,533
Loans payable		138,000		138,000
Funding liability		7,325,502		5,453,204
Loan payable - related party		2,796,500		2,796,500
Warrant liability		281,809		145,428
Accrued interest		1,096,985		904,573
Total current liabilities		11,935,332		9,586,238
Non-current liabilities
Loan payable – SBA		150,000		150,000
Purchase price of patents		53,665		53,665
Total liabilities		12,138,997		9,789,903
Commitments and contingencies (Note 10)
Stockholders' deficit:
Preferred stock, par value $0.00003 per share - authorized 10,000,000 shares - no shares issued and outstanding		—		—
Common stock, par value $0.00003 per share; authorized 30,000,000 at December 31, 2023 and 2022; 5,331,973 shares issued and outstanding at December 31, 2023 and December 31, 2022		160		160
Additional paid-in capital		17,674,985		17,626,279
Accumulated deficit		(22,539,912)		(26,189,494)
Total Quest Patent Research Corporation stockholders' deficit		(4,864,767)		(8,563,055)
Non-controlling interest in subsidiary		228		228
Total stockholders' deficit		(4,864,539)		(8,562,827)
Total liabilities and stockholders' deficit		$                 7,274,458		$                  1,227,076

 

QUEST PATENT RESEARCH CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
	Year Ended December 31,
	2023		2022
Revenues
Patent licensing fees	$          13,152,500		$                451,194
Cost of revenue
Litigation and licensing expenses	5,534,596		303,671
Gross margin	7,617,904		147,523
Operating expenses
Selling, general and administrative expenses	2,740,554		1,979,718
Total operating expenses	2,740,554		1,979,718
Income (loss) from operations	4,877,350		(1,832,195)
Other income (expense)
Change in fair market value of warrant liability	(136,381)		1,490,759
Interest expense	(1,061,387)		(413,333)
Total other income (expense)	(1,197,768)		1,077,426
Income (loss) before income tax	3,679,582		(754,769)
Income tax benefit (expense)	(30,000)		1,253
Net income (loss)	$             3,649,582		$              (753,516)
Income (loss) per share - basic and diluted	$                       0.68		$                     (0.14)
Weighted average shares outstanding - basic and diluted	5,331,973		5,331,973

 

QUEST PATENT RESEARCH CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
	Year Ended December 31,
	2023		2022
Cash flows from operating activities:
Net income (loss)	$                     3,649,582		$                       (753,516)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
Change in fair market value of warrant liability	136,381		(1,490,759)
Stock-based compensation	48,706		117,412
Amortization of intangible assets	786,552		910,326
Change in operating assets and liabilities:
Accounts receivable	(3,008,250)		—
Accrued interest	192,415		412,602
Other current assets	(22,800)		6,984
Accounts payable and accrued liabilities	147,999		19,108
Patents loan payable	—		(136,335)
Net cash provided by (used in) operating activities	1,930,585		(914,178)
Cash flows from investing activities:
Purchase of intangible assets	(3,330,000)		(1,502,000)
Net cash used in investing activities	(3,330,000)		(1,502,000)
Cash flows from financing activities:
Payments on loans - related party	—		(8,500)
Proceeds from funding liability	6,000,000		2,303,000
Payment of funding liability	(4,127,702)		(52,561)
Net cash provided by financing activities	1,872,298		2,241,939
Net increase (decrease) in cash and cash equivalents	472,883		(174,239)
Cash and cash equivalents at beginning of period	90,601		264,840
Cash and cash equivalents at end of period	$                         563,484		$                           90,601
Non-cash investing and financing activities:
Interest added to principal	$                             5,625		$                             4,895
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Income taxes	$                           30,000		$                           (1,253)
Interest	$                         969,930		$                                   —

 

View original content:https://www.prnewswire.com/news-releases/quest-patent-research-corporation-announces-3-6-million-net-income-for-2023--302102057.html

SOURCE Quest Patent Research Corporation

FAQ

What was Quest Patent Research 's net income for the year ended December 31, 2023?

Quest Patent Research reported a net income of $3.6 million for the year ended December 31, 2023.

What were the revenues for Quest Patent Research in 2023?

Quest Patent Research generated revenues of $13.2 million in 2023.

What caused the revenue growth for Quest Patent Research in 2023?

The revenue growth for Quest Patent Research in 2023 was attributed to the settlement of patent infringement litigation.

How did Quest Patent Research 's financial performance in 2023 compare to 2022?

Quest Patent Research demonstrated a significant financial turnaround in 2023 compared to 2022, with a net income of $3.6 million and revenues of $13.2 million, as opposed to a loss of $0.8 million and revenues of $0.5 million in 2022.