Network-1 Reports Second Quarter 2025 Results
Rhea-AI Summary
Network-1 Technologies
Key developments include initiating patent litigation against Samsung for eSIM and 5G technology infringement, acquiring a Smart Home Patent Portfolio, and expanding their share repurchase program to $5 million. The company maintains a strong financial position with $38.5 million in cash and marketable securities and continues its semi-annual dividend policy of $0.05 per share.
Positive
- Strong cash position of $38.5 million and working capital of $38.3 million
- Reduced net loss by 30% in Q2 2025 compared to Q2 2024
- Expanded share repurchase program to $5 million
- Acquisition of new Smart Home Patent Portfolio expanding intellectual property assets
- Maintained consistent dividend policy of $0.10 per share annually
Negative
- No revenue recorded for Q2 2025
- Continued net losses of $463,000 in Q2 2025
- Significant losses from equity investment in ILiAD Biotechnologies ($279,000 in Q2)
- Lower average share repurchase price of $1.23 in Q2 2025 compared to historical average of $1.92
News Market Reaction
On the day this news was published, NTIP declined 2.10%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
NEW CANAAN, CT / ACCESS Newswire / August 8, 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 second quarter ended June 30, 2025.
Network-1 reported no revenue for the three months ended June 30, 2025, and revenue of
Network-1 reported a net loss of
For the six months ended June 30, 2025, Network-1 reported a net loss of
On June 27, 2025, Network-1 commenced patent litigation against Samsung Electronics Co., LTD and Samsung Electronics America, Inc. (collectively, "Samsung") in the United States District Court for the Eastern District of Texas, Marshall Division, for infringement of certain patents within Network-1's M2M/IoT Patent Portfolio. The lawsuit alleges that Samsung infringes Network-1's patents by supporting certain eSIM (embedded Subscriber Identification Module) and 5G technologies in its mobile devices, including its Galaxy smartphones, watches and tablets.
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.
On June 17, 2025, the Board of Directors authorized an extension and increase of Network-1's share repurchase program (the "Share Repurchase Program") to repurchase up to
As of June 30, 2025, Network-1 had cash and cash equivalents and marketable securities 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 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 fifteen (115) U.S. patents and seventeen (17) 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, 2025and its Quarterly Report on Form 10-Q for the three months ended June 30, 2025 filed with the SEC on August 8, 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 and its M2m/IoT 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 its 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 June 30, 2025 filed with the SEC on August 8, 2025.
Contacts:
Corey M. Horowitz, Chairman and CEO
Network-1 Technologies, Inc.
(917) 692-0000
Three Months Ended | Six Months Ended | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
REVENUE | $ | - | $ | 100,000 | $ | 150,000 | $ | 100,000 | ||||||||
OPERATING EXPENSES: | ||||||||||||||||
Costs of revenue | - | 28,000 | 42,000 | 28,000 | ||||||||||||
Professional fees and related costs | 164,000 | 147,000 | 285,000 | 366,000 | ||||||||||||
General and administrative | 519,000 | 519,000 | 1,121,000 | 1,188,000 | ||||||||||||
Amortization of patents | 37,000 | 30,000 | 67,000 | 60,000 | ||||||||||||
TOTAL OPERATING EXPENSES | 720,000 | 724,000 | 1,515,000 | 1,642,000 | ||||||||||||
OPERATING LOSS | (720,000 | ) | (624,000 | ) | (1,365,000 | ) | (1,542,000 | ) | ||||||||
OTHER INCOME : | ||||||||||||||||
Interest and dividend income, net | 445,000 | 452,000 | 929,000 | 883,000 | ||||||||||||
Net realized and unrealized gain on marketable securities | 22,000 | 54,000 | 171,000 | 102,000 | ||||||||||||
Total other income, net | 467,000 | 506,000 | 1,100,000 | 985,000 | ||||||||||||
LOSS BEFORE INCOME TAXES AND SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE | (253,000 | ) | (118,000 | ) | (265,000 | ) | (557,000 | ) | ||||||||
INCOME TAXES PROVISION: | ||||||||||||||||
Current | (31,000 | ) | - | (31,000 | ) | - | ||||||||||
Deferred taxes, net | (38,000 | ) | (137,000 | ) | (149,000 | ) | (284,000 | ) | ||||||||
Total income tax benefit | (69,000 | ) | (137,000 | ) | (180,000 | ) | (284,000 | ) | ||||||||
INCOME (LOSS) BEFORE SHARE OF NET LOSS OF EQUITY METHOD INVESTEE: | (184,000 | ) | 19,000 | (85,000 | ) | (273,000 | ) | |||||||||
SHARE OF NET LOSS OF EQUITY METHOD INVESTEE | (279,000 | ) | (677,000 | ) | (741,000 | ) | (1,305,000 | ) | ||||||||
NET LOSS | $ | (463,000 | ) | $ | (658,000 | ) | $ | (826,000 | ) | $ | (1,578,000 | ) | ||||
Net loss per share | ||||||||||||||||
Basic | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.07 | ) | ||||
Diluted | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.07 | ) | ||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 22,873,907 | 23,296,555 | 22,883,729 | 23,444,145 | ||||||||||||
Diluted | 22,873,907 | 23,296,555 | 22,883,729 | 23,444,145 | ||||||||||||
Cash dividends declared per share | - | - | $ | 0.05 | $ | 0.05 | ||||||||||
June 30, | December 31, | |||||||
ASSETS | (Unaudited) | |||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 13,424,000 | $ | 13,145,000 | ||||
Marketable securities, at fair value | 25,061,000 | 27,455,000 | ||||||
Other current assets | 180,000 | 232,000 | ||||||
TOTAL CURRENT ASSETS | 38,665,000 | 40,832,000 | ||||||
OTHER ASSETS: | ||||||||
Patents, net of accumulated amortization | 1,552,000 | 1,205,000 | ||||||
Equity investment | 2,596,000 | 3,337,000 | ||||||
Operating leases right-of-use asset | - | 27,000 | ||||||
Security deposit | 13,000 | 13,000 | ||||||
Total Other Assets | 4,161,000 | 4,582,000 | ||||||
TOTAL ASSETS | $ | 42,826,000 | $ | 45,414,000 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | 204,000 | $ | 203,000 | |||||
Accrued payroll | - | 292,000 | ||||||
Other accrued expenses | 173,000 | 247,000 | ||||||
Operating lease obligations | - | 24,000 | ||||||
Total Current Liabilities | 377,000 | 766,000 | ||||||
LONG TERM LIABILITIES: | ||||||||
Deferred tax liability | 188,000 | 337,000 | ||||||
TOTAL LIABILITIES | 565,000 | 1,103,000 | ||||||
COMMITMENTS AND CONTINGENCIES (Note G) | ||||||||
STOCKHOLDERS' EQUITY | ||||||||
Preferred stock, none issued and outstanding at June 30, 2025 and December 31, 2024 | - |
| ||||||
Common stock, | 228,000 | 229,000 | ||||||
Additional paid-in capital | 64,445,000 | 65,455,000 | ||||||
Accumulated deficit | (22,412,000 | ) | (21,373,000 | ) | ||||
TOTAL STOCKHOLDERS' EQUITY | 42,261,000 | 44,311,000 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 42,826,000 | $ | 45,414,000 | ||||
SOURCE: Network-1 Technologies, Inc.
View the original press release on ACCESS Newswire
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