Note A – Business

Network-1 Technologies, Inc. (the “Company”) is engaged in the development, licensing and protection of its intellectual property assets. The Company presently owns one hundred nineteen (119) U.S. patents, fifty-four (54) of such patents have expired, and fifteen (15) foreign patents (unexpired) related to (i) the M2M/IoT patent portfolio relating to, among other things, enabling technology for authenticating and using eSIM (embedded Subscriber Identification Module) technology in IoT, Machine-to-Machine, and other mobile devices, including smartphones, tablets and computers, and automobiles (the “MTM/IoT Patent Portfolio”); (ii) the HFT patent portfolio covering certain advanced technologies relating to high frequency trading, which inventions specifically address technological problems associated with speed and latency and provide critical latency gains in trading systems (the “HFT Patent Portfolio”); (iii) the Cox patent portfolio relating to enabling technology for identifying media content on the Internet and taking further actions to be performed after such identification (the “Cox Patent Portfolio”); (iv) our smart home phone patent portfolio relating to, among other things, the enabling technology to support the interoperability of smart home IoT devices (the “Smart Home Patent Portfolio”); (v) the remote power patent covering delivery of Power over Ethernet (PoE) cables for the purpose of remotely powering network devices, such as wireless access ports, IP phones and network based cameras (the “Remote Power Patent”); and (vi) the Mirror Worlds patent portfolio relating to foundational technologies that enable unified search and indexing, displaying and archiving of documents in a computer system (the “Mirror Worlds Patent Portfolio”).

The Company no longer intends to monetize its Remote Power Patent or Mirror Worlds Patent Portfolio. The Company’s current strategy includes continuing to pursue licensing opportunities for its other intellectual property assets. In addition, the Company reviews opportunities to acquire or license additional intellectual property as well as other strategic alternatives. The Company’s patent acquisition and development strategy is to focus on acquiring high quality patents which management believes have the potential to generate significant licensing opportunities as the Company had achieved with respect to its Remote Power Patent and Mirror Worlds Patent Portfolio. In addition, the Company may also enter into strategic relationships with third parties to develop, commercialize, license or otherwise monetize their intellectual property.

The Company has made equity investments totaling $7,000,000 in ILiAD Biotechnologies, Inc. (“ILiAD”), a clinical stage biotechnology company (see Note H hereof).