Network-1 Reports First Quarter 2025 Financial Results
- Reduced net loss from $920,000 in Q1 2024 to $363,000 in Q1 2025
- Generated $150,000 in revenue vs zero revenue in Q1 2024
- Operating expenses decreased by $123,000 year-over-year
- Strong liquidity position with $39.2M in cash and marketable securities
- Acquisition of new Smart Home Patent Portfolio expanding intellectual property assets
- Continued net loss of $363,000 in Q1 2025
- Share of loss from equity investee ILiAD Biotechnologies of $462,000
- Limited revenue generation from core operations
Insights
Network-1 reduced losses by 61% YoY despite minimal revenue; sits on $39.2M cash with reduced legal expenses.
Network-1's Q1 2025 results show modest improvement with a narrowed net loss of
The company's financial health appears stable despite minimal operational revenue. Cash preservation efforts are evident with operating expenses decreasing by
Network-1's investment portfolio generated
The company maintains a strong liquidity position with
Network-1 continues returning capital to shareholders through share repurchases (
NEW CANAAN, CT / ACCESS Newswire / May 9, 2025 / Network-1 Technologies, Inc. (NYSE American:NTIP) ("Network-1"), a company specializing in the acquisition, development, licensing and monetization of its intellectual property assets, today announced financial results for the first quarter ended March 31, 2025.
Network-1 had revenue of
Network-1 reported a net loss of
Interest and dividend income for the quarter ended March 31, 2025 was
On March 31, 2025, Network-1 acquired a patent portfolio from IoT and M2M Technologies, LLC, relating to, among other things, enabling technology to support the interoperability of smart home IoT devices (the "Smart Home Patent Portfolio"). The Smart Home Patent Portfolio currently consists of eight (8) U.S. patents and one (1) international patent as well as eleven (11) U.S. pending patent applications and five (5) pending international patents.
At March 31, 2025, Network-1's principal sources of liquidity consisted of cash and cash equivalents and marketable securities of
On June 14, 2023, Network‑1's Board of Directors authorized an extension and increase of Network‑1's Share Repurchase Program to repurchase up to
Network-1's dividend policy consists of semi-annual cash dividends of
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 fourteen (114) U.S. patents and sixteen (16) international patents covering various technologies, including enabling technology for authenticating and using eSIM technology in Internet of Things ("IoT"), certain advanced technologies related to high frequency trading, technologies relating to document stream operating systems and the identification of media content and enabling technology to support, among other things, the interoperability of smart home IT devices. Network-1's current strategy includes efforts to monetize four patent portfolios (the M2M/IoT, HFT, Cox and Smart Home 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, 2024 filed with the Securities and Exchange Commission on February 28, 2025 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 HFT Patent Portfolio, 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 Google and YouTube involving certain patents within our 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, M2M/IoT Patent Portfolio, HFT Patent Portfolio and Smart Home Portfolio, as well as a successful outcome 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.
Network-1's unaudited condensed consolidated statements of operations and condensed consolidated balance sheet are attached.
For additional details regarding the above referenced highlights, please see Network-1's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 filed with the SEC on May 9, 2025.
Contacts:
Network-1 Technologies, Inc.
Corey M. Horowitz, Chairman and CEO
(917) 692-0000
NETWORK-1 TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended | ||||||||
2025 | 2024 | |||||||
REVENUE | $ | 150,000 | $ | - | ||||
OPERATING EXPENSES: | ||||||||
Costs of revenue | 42,000 | - | ||||||
Professional fees and related costs | 121,000 | 219,000 | ||||||
General and administrative | 602,000 | 669,000 | ||||||
Amortization of patents | 30,000 | 30,000 | ||||||
TOTAL OPERATING EXPENSES | 795,000 | 918,000 | ||||||
OPERATING LOSS | (645,000 | ) | (918,000 | ) | ||||
OTHER INCOME: | ||||||||
Interest and dividend income, net | 484,000 | 431,000 | ||||||
Net realized and unrealized gain on marketable securities | 149,000 | 48,000 | ||||||
Total other income, net | 633,000 | 479,000 | ||||||
LOSS BEFORE INCOME TAXES AND EQUITY IN NET LOSSES OF EQUITY METHOD INVESTEE | (12,000 | ) | (439,000 | ) | ||||
INCOME TAX PROVISION: | ||||||||
Current | - | - | ||||||
Deferred taxes, net | (111,000 | ) | (147,000 | ) | ||||
Total income taxes benefit | (111,000 | ) | (147,000 | ) | ||||
INCOME (LOSS) BEFORE SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE | 99,000 | (292,000 | ) | |||||
SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE | (462,000 | ) | (628,000 | ) | ||||
NET LOSS | $ | (363,000 | ) | $ | (920,000 | ) | ||
Net loss per share: | ||||||||
Basic | $ | (0.02 | ) | $ | (0.04 | ) | ||
Diluted | $ | (0.02 | ) | $ | (0.04 | ) | ||
Weighted average common shares outstanding: | ||||||||
Basic | 22,914,799 | 23,540,468 | ||||||
Diluted | 22,914,799 | 23,540,468 | ||||||
Cash dividends declared per share | $ | 0.05 | $ | 0.05 | ||||
NETWORK-1 TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, | December 31, | |||||||
ASSETS | (Unaudited) | |||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 12,288,000 | $ | 13,145,000 | ||||
Marketable securities, at fair value | 26,905,000 | 27,455,000 | ||||||
Other current assets | 194,000 | 232,000 | ||||||
TOTAL CURRENT ASSETS | 39,387,000 | 40,832,000 | ||||||
OTHER ASSETS: | ||||||||
Patents, net of accumulated amortization | 1,589,000 | 1,205,000 | ||||||
Equity investment | 2,875,000 | 3,337,000 | ||||||
Operating leases right-of-use asset | 7,000 | 27,000 | ||||||
Security deposit | 13,000 | 13,000 | ||||||
Total Other Assets | 4,484,000 | 4,582,000 | ||||||
TOTAL ASSETS | $ | 43,871,000 | $ | 45,414,000 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 706,000 | $ | 203,000 | ||||
Accrued payroll | 8,000 | 292,000 | ||||||
Other accrued expenses | 223,000 | 247,000 | ||||||
Operating lease obligations | 7,000 | 24,000 | ||||||
Total Current Liabilities | 944,000 | 766,000 | ||||||
LONG TERM LIABILITIES: | ||||||||
Deferred tax liability | 226,000 | 337,000 | ||||||
TOTAL LIABILITIES | 1,170,000 | 1,103,000 | ||||||
COMMITMENTS AND CONTINGENCIES (Note G) | ||||||||
STOCKHOLDERS' EQUITY | ||||||||
Preferred stock, | - | - | ||||||
Common stock, | 228,000 | 229,000 | ||||||
Additional paid-in capital | 64,365,000 | 65,455,000 | ||||||
Accumulated deficit | (21,892,000 | ) | (21,373,000 | ) | ||||
TOTAL STOCKHOLDERS' EQUITY | 42,701,000 | 44,311,000 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 43,871,000 | $ | 45,414,000 | ||||
SOURCE: Network-1 Technologies, Inc.
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