Network-1 Technologies Reports Significant Revenue Decline, Net Loss in Nine Months Ended September 30, 2024

Network-1 Technologies, Inc. reported its financial results for the nine months ended September 30, 2024, revealing significant changes in revenue and expenses compared to the same period in 2023. The company generated revenue of $100,000, a substantial decline from $820,000 in the prior year. This decrease is attributed to the absence of new licensing agreements or settlements related to its patent portfolios, which primarily drive revenue.

Operating expenses for the nine months decreased to $2,538,000 from $3,004,000 in 2023, reflecting a reduction of $466,000. This decline was largely due to lower general and administrative expenses, which fell from $2,070,000 to $1,764,000. Despite the decrease in expenses, the company reported a net loss of $1,894,000, slightly improved from a net loss of $1,909,000 in the previous year. The basic loss per share remained consistent at $0.08.

For the three months ended September 30, 2024, the company reported no revenue, similar to the same period in 2023. Operating expenses increased marginally to $896,000 from $859,000, primarily due to higher professional fees. The net loss for this quarter was $316,000, a significant improvement from a loss of $810,000 in the prior year.

The company’s cash and cash equivalents decreased to $14,315,000 as of September 30, 2024, down from $16,896,000 at the end of 2023. Total current assets also declined to $41,657,000 from $45,673,000, while total assets fell to $46,585,000 from $52,277,000. Total stockholders’ equity decreased to $45,579,000 from $50,692,000, reflecting the ongoing net losses and dividend payments.

Network-1 continues to focus on its strategy of pursuing licensing opportunities for its patent portfolios and acquiring high-quality patents. The company has made equity investments totaling $7,000,000 in ILiAD Biotechnologies, LLC, a clinical-stage biotechnology firm. The company is also involved in ongoing litigation related to its patents, including cases against Google and Meta Platforms, with appeals filed following unfavorable rulings.

In terms of cash flow, net cash used in operating activities for the nine months was $685,000, a slight improvement from $753,000 in 2023. However, net cash provided by investing activities significantly decreased to $1,614,000 from $11,350,000, indicating a reduction in investment activity. The company repurchased shares totaling $1,059,904 during the nine months, reflecting its ongoing share repurchase program.

Overall, Network-1 Technologies is navigating a challenging environment with reduced revenue and ongoing litigation, while maintaining a focus on its core strategy of intellectual property monetization.