Quest Patent Research Corporation Reports Significant Revenue Decline and Net Loss for Fiscal Year 2024

Quest Patent Research Corporation (QPRC) reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with revenues of approximately $2.8 million, a stark decrease from $13.2 million in 2023. The company attributed this drop primarily to a reduced number of patent licensing settlements. Despite generating a net income of $2.3 million in 2023, QPRC faced a net loss of approximately $2.5 million in 2024, reflecting ongoing challenges in monetizing its intellectual property portfolios. The company's total assets were reported at approximately $3.5 million, with a working capital deficiency of about $11.5 million.

In terms of operational changes, QPRC has been actively restructuring its financial agreements. In March 2023, the company entered into a financing agreement with QF3, which included a facility of up to $25 million for acquiring patent rights, alongside $4.3 million for operating expenses. This agreement was part of a broader strategy to enhance its intellectual property portfolio, which currently consists of 22 portfolios, six of which are targeted for monetization. The company also reported that it had utilized $3.3 million from QF3 to acquire a patent portfolio from Tower Semiconductor Ltd.

The company’s litigation activities have been a critical component of its revenue generation strategy. QPRC has engaged in multiple patent infringement lawsuits, with settlements contributing to its revenue. Notably, the company resolved several cases in 2023, including actions against Trend Micro and ZTE Corporation, which positively impacted its financial results for that year. However, the ongoing litigation remains costly, and the company has expressed concerns about its ability to fund future legal actions without external financing.

Looking ahead, QPRC faces substantial challenges, including a history of losses and a lack of sufficient internal controls over financial reporting, which has raised doubts about its ability to continue as a going concern. The company has acknowledged the need for significant funding to support its operations and litigation efforts, but its financial condition may hinder its ability to secure necessary capital. As of the end of 2024, QPRC's accumulated deficit stood at approximately $26.4 million, and the company is actively seeking to improve its financial stability while navigating a competitive and uncertain market for intellectual property monetization.