Exhibit
99.1
FOR
IMMEDIATE RELEASE
Corey M. Horowitz, Chairman and CEO
Network-1
Technologies, Inc.
(917) 692-0000
NETWORK-1 REPORTS SECOND QUARTER 2026 RESULTS
New Canaan, Connecticut
— August 6, 2026 — 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, 2026.
For the three month
periods ended June 30, 2026 and 2025, Network-1 reported no revenue. For the six month period ended June 30, 2026, Network-1 reported
no revenue, compared to $150,000 of revenue for the six month period ended June 30, 2025.
Operating expenses
for the three month period ended June 30, 2026 were $1,013,000, compared to $720,000 for the comparable three month period in 2025. For
the six month period ended June 30, 2026, operating expenses were $2,428,000, compared to $1,515,000 for the six month period ended June
30, 2025. The increases in operating expenses were primarily due to higher litigation-related professional fees and related costs.
During the first half
of 2026, Network-1 recorded a gain of $1,052,000 related to the remeasurement of the carrying value of its investment in ILiAD Biotechnologies,
Inc. (“ILiAD”) following ILiAD’s closing of its $115,000,000 financing in February 2026. As a result of the financing,
Network-1 transitioned from the equity method of accounting to the cost method for its investment in ILiAD, which produced the accounting
gain recognized in the first quarter of 2026.
Network-1 reported
a net loss of $655,000, or $0.03 per share basic and diluted, for the three month period ended June 30, 2026, compared to a net loss
of $463,000, or $0.02 per share basic and diluted, for the comparable three month period ended June 30, 2025. For the six month period
ended June 30, 2026, Network-1 reported a net loss of $1,166,000, or $0.05 per share basic and diluted, compared to a net loss of $826,000,
or $0.04 per share basic and diluted, for the six month period ended June 30, 2025. The increases in net loss were primarily driven by
higher litigation related operating expenses, partially offset by the gain on the ILiAD investment and the absence of equity-method losses
in ILiAD in 2026.
Network-1 continues
to pursue four pending patent litigations involving its M2M/IoT, HFT and Cox patent portfolios. 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 six patents within Network-1’s
M2M/IoT Patent Portfolio. The lawsuit alleges that Samsung infringes the asserted patents by supporting certain eSIM (embedded Subscriber
Identification Module) and certain 5G technologies in its mobile devices, including its Galaxy smartphones, watches and tablets. A trial
date has been scheduled for June 7, 2027.
In connection with
Network-1’s litigation against Google and YouTube involving the Cox patent portfolio, in April 2026 the U.S. Court of Appeals for
the Federal Circuit issued an opinion overturning the judgment of non-infringement entered by the U.S. District Court for the Southern
District of New York relating to Network-1’s Patent No. 8,205,237 for certain implementations of Google’s Content ID system
and remanded the matter to the District Court for further proceedings. A trial date has been scheduled for December 7, 2026.
As of June 30, 2026,
Network-1’s principal sources of liquidity consisted of cash and cash equivalents and marketable securities of $33,752,000, and
working capital of $33,179,000. Management believes that based on Network-1’s current cash position, it has sufficient liquidity
to fund operations for the foreseeable future.
Network-1’s dividend
policy consists of semiannual cash dividends of $0.05 per share ($0.10 per share annually), historically paid in March and September.
During the six month period ended June 30, 2026, Network-1 declared and paid a semiannual cash dividend of $0.05 per share in March 2026
consistent with this policy. The dividend policy remains subject to 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.
During the three month period ended June
30, 2026, Network-1 repurchased 34,980 shares of its common stock at an aggregate cost of $51,000 (exclusive of commissions) under its
Share Repurchase Program. Since inception of the program in 2011 through June 30, 2026, Network-1 has repurchased approximately 10,682,470
shares at an aggregate cost of approximately $20,403,652 (exclusive of commissions) or an average per share price of approximately $1.91.
Combined with the approximately $25,400,000 in dividends paid beginning in 2010 through June 30, 2026, Network-1 has returned, through
dividends and share repurchases, in excess of $45,800,000 to its shareholders.
ABOUT
NETWORK-1 TECHNOLOGIES, INC.
Network-1
Technologies, Inc. is engaged in the acquisition, development, licensing and protection of intellectual property and proprietary technologies.
Network-1 works with inventors and patent owners to assist in the development and monetization of patented technologies. As of June 30,
2026, Network-1 owns 121 U.S. patents (54 expired) and 15 international patents covering various technologies, including enabling technology
for authenticating and using eSIM technology in Internet of Things Machine-to-Machine and other mobile devices, 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 IoT devices. Network-1’s current strategy
includes efforts to monetize its M2M/IoT, HFT, Cox and Smart Home 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 achieved in the past with respect to its Remote Power Patent and Mirror Worlds Patent Portfolio. Network-1’s Remote Power
Patent generated licensing revenue in excess of $188,000,000 and Network-1 achieved licensing and other revenue in excess of $47,000,000
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 Network-1’s Annual Report on Form 10-K for the year ended December 31, 2025 filed
with the Securities and Exchange Commission on March 13, 2026, including, but not limited to, 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,
its M2M/IoT Patent Portfolio and 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 M2M/IoT Patent Portfolio, HFT Patent Portfolio, Smart Home Portfolio and Cox Patent Portfolio, as well as a successful outcome
on its investment in ILiAD Biotechnologies, Inc. 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 to 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 Condensed Consolidated
Balance Sheets and Condensed Consolidated Statements of Operations as of and for the three month and six month periods ended June 30,
2026 are attached.
NETWORK-1
TECHNOLOGIES, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
| | |
| | |
| |
| | |
June
30, 2026 | | |
December
31, 2025 | |
ASSETS CURRENT
ASSETS: | |
(Unaudited) | | |
| |
| Cash
and cash equivalents | |
$ | 9,435,000 | | |
$ | 13,402,000 | |
| Marketable
securities, at fair value | |
| 24,317,000 | | |
| 23,467,000 | |
| Other
current assets | |
| 149,000 | | |
| 237,000 | |
TOTAL
CURRENT ASSETS | |
| 33,901,000 | | |
| 37,106,000 | |
OTHER
ASSETS: | |
| | | |
| | |
| Patents, net
of accumulated amortization | |
| 1,766,000 | | |
| 1,479,000 | |
| Equity
investments | |
| 2,786,000 | | |
| 1,734,000 | |
| Security
deposit | |
| 13,000 | | |
| 13,000 | |
Total
Other Assets | |
| 4,565,000 | | |
| 3,226,000 | |
TOTAL
ASSETS | |
$ | 38,466,000 | | |
$ | 40,332,000 | |
LIABILITIES
AND STOCKHOLDERS’ EQUITY: CURRENT
LIABILITIES: | |
| | | |
| | |
| Accounts
payable | |
| 656,000 | | |
$ | 253,000 | |
| Accrued
payroll | |
| — | | |
| 289,000 | |
| Other
accrued expenses | |
| 66,000 | | |
| 228,000 | |
| Total
Current Liabilities | |
| 722,000 | | |
| 770,000 | |
LONG
TERM LIABILITIES: | |
| | | |
| | |
| Deferred
tax liability | |
| 245,000 | | |
| — | |
TOTAL
LIABILITIES | |
| 967,000 | | |
| 770,000 | |
COMMITMENTS
AND CONTINGENCIES (Note H) | |
| — | | |
| | |
STOCKHOLDERS’
EQUITY | |
| | | |
| | |
Preferred stock, $0.01 par value, authorized 10,000,000 shares;
none issued and outstanding at June 30, 2026 and December 31, 2025 | |
| — | | |
| — | |
| | |
| | | |
| | |
| Common
stock, $0.01 par value; authorized 50,000,000 shares; 22,863,181 and 22,824,009 shares issued and outstanding at June 30, 2026 and December 31,
2025, respectively | |
| 229,000 | | |
| 228,000 | |
| | |
| | | |
| | |
| Additional
paid-in capital | |
| 62,672,000 | | |
| 63,426,000 | |
| | |
| | | |
| | |
| Accumulated
deficit | |
| (25,402,000 | ) | |
| (24,092,000 | ) |
| | |
| | | |
| | |
| TOTAL
STOCKHOLDERS’ EQUITY | |
| 37,499,000 | | |
| 39,562,000 | |
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY | |
$ | 38,466,000 | | |
$ | 40,332,000 | |
NETWORK-1
TECHNOLOGIES, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| | |
| | |
| | |
| | |
| |
| | |
Three
Months Ended
June 30, | | |
Six
Months Ended
June 30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| | |
| | |
| | |
| | |
| |
| REVENUE | |
$ | — | | |
$ | — | | |
$ | — | | |
$ | 150,000 | |
| |
| | | |
| | | |
| | | |
| | |
| OPERATING
EXPENSES: | |
| | | |
| | | |
| | | |
| | |
| Costs of revenue | |
| — | | |
| — | | |
| — | | |
| 42,000 | |
| Professional
fees and related costs | |
| 481,000 | | |
| 164,000 | | |
| 1,256,000 | | |
| 285,000 | |
| General
and administrative | |
| 488,000 | | |
| 519,000 | | |
| 1,084,000 | | |
| 1,121,000 | |
| Amortization
of patents | |
| 44,000 | | |
| 37,000 | | |
| 88,000 | | |
| 67,000 | |
| | |
| | | |
| | | |
| | | |
| | |
| TOTAL
OPERATING EXPENSES | |
| 1,013,000 | | |
| 720,000 | | |
| 2,428,000 | | |
| 1,515,000 | |
| | |
| | | |
| | | |
| | | |
| | |
| OPERATING
LOSS | |
| (1,013,000 | ) | |
| (720,000 | ) | |
| (2,428,000 | ) | |
| (1,365,000 | ) |
OTHER
INCOME: | |
| | | |
| | | |
| | | |
| | |
| Interest
and dividend income, net | |
| 350,000 | | |
| 445,000 | | |
| 734,000 | | |
| 929,000 | |
| Gain
on equity investment | |
| — | | |
| — | | |
| 1,052,000 | | |
| — | |
| Net
realized and unrealized gain (loss) on marketable securities | |
| 8,000 | | |
| 22,000 | | |
| (279,000 | ) | |
| 171,000 | |
| Total
other income, net | |
| 358,000 | | |
| 467,000 | | |
| 1,507,000 | | |
| 1,100,000 | |
LOSS
BEFORE INCOME TAXES AND SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE | |
| (655,000 | ) | |
| (253,000 | ) | |
| (921,000 | ) | |
| (265,000 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| INCOME
TAX PROVISION: | |
| | | |
| | | |
| | | |
| | |
| Current | |
| — | | |
| (31,000 | ) | |
| — | | |
| (31,000 | ) |
| Deferred
tax (benefit) expense, net | |
| — | | |
| (38,000 | ) | |
| 245,000 | | |
| (149,000 | ) |
| Total
income tax (benefit) expense | |
| — | | |
| (69,000 | ) | |
| 245,000 | | |
| (180,000 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| LOSS
BEFORE SHARE OF NET LOSS OF EQUITY METHOD INVESTEE: | |
| (655,000 | ) | |
| (184,000 | ) | |
| (1,166,000 | ) | |
| (85,000 | ) |
| | |
| | | |
| | | |
| | | |
| | |
SHARE
OF NET LOSS OF EQUITY METHOD INVESTEE | |
| — | | |
| (279,000 | ) | |
| — | | |
| (741,000 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| NET LOSS | |
$ | (655,000 | ) | |
$ | (463,000 | ) | |
$ | (1,166,000 | ) | |
$ | (826,000 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Net loss per share | |
| | | |
| | | |
| | | |
| | |
| Basic | |
$ | (0.03 | ) | |
$ | (0.02 | ) | |
$ | (0.05 | ) | |
$ | (0.04 | ) |
| Diluted | |
$ | (0.03 | ) | |
$ | (0.02 | ) | |
$ | (0.05 | ) | |
$ | (0.04 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Weighted average common
shares outstanding: | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 22,836,456 | | |
| 22,873,907 | | |
| 22,824,937 | | |
| 22,883,729 | |
| Diluted | |
| 22,836,456 | | |
| 22,873,907 | | |
| 22,824,937 | | |
| 22,883,729 | |
| | |
| | | |
| | | |
| | | |
| | |
| Cash dividends declared
per share | |
| — | | |
| — | | |
$ | 0.05 | | |
$ | 0.05 | |
| | |
| | | |
| | | |
| | | |
| | |
