Network-1 Technologies, Inc.

Financials

v3.8.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Sep. 30, 2017
Dec. 31, 2016
CURRENT ASSETS:    
Cash and cash equivalents $ 52,265,000 $ 50,918,000
Marketable securities, available for sale 1,064,000 1,065,000
Royalty receivables, net 3,570,000 2,879,000
Prepaid Taxes 300,000 1,195,000
Other current assets 18,000 83,000
Total Current Assets 57,217,000 56,140,000
OTHER ASSETS:    
Deferred tax assets 168,000 207,000
Patent, net of accumulated amortization 1,131,000 1,231,000
Security deposits 19,000 19,000
Total Other Assets 1,318,000 1,457,000
TOTAL ASSETS 58,535,000 57,597,000
CURRENT LIABILITIES:    
Accounts payable 70,000 171,000
Income taxes payable 930,000
Accrued contingency fees and related costs 1,789,000 2,681,000
Accrued payroll 240,000 1,748,000
Other accrued expenses 87,000 125,000
TOTAL LIABILITIES 3,116,000 4,725,000
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY    
Preferred stock, $0.01 par value, authorized 10,000,000 shares; none issued and outstanding at September 30, 2017 and December 31, 2016
Common stock, $0.01 par value; authorized 50,000,000 shares; 24,131,012 and 23,744,829 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively 241,000 238,000
Additional paid-in capital 64,141,000 62,367,000
Accumulated deficit (8,931,000) (9,702,000)
Accumulated other comprehensive loss (32,000) (31,000)
TOTAL STOCKHOLDERS' EQUITY 55,419,000 52,872,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 58,535,000 $ 57,597,000

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v3.8.0.1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Condensed Consolidated Statements Of Income And Comprehensive Income        
REVENUE $ 3,237,000 $ 34,326,000 $ 14,320,000 $ 59,963,000
OPERATING EXPENSES:        
Costs of revenue 964,000 16,943,000 4,339,000 24,183,000
Professional fees and related costs 534,000 633,000 1,154,000 1,458,000
General and administrative 434,000 428,000 1,358,000 1,256,000
Amortization of patents 50,000 49,000 150,000 760,000
Stock-based compensation 237,000 189,000 711,000 233,000
Contingent patent cost 500,000
TOTAL OPERATING EXPENSES 2,219,000 18,242,000 7,712,000 28,390,000
OPERATING INCOME 1,018,000 16,084,000 6,608,000 31,573,000
OTHER INCOME:        
Interest income, net 55,000 24,000 89,000 50,000
INCOME BEFORE INCOME TAXES 1,073,000 16,108,000 6,697,000 31,623,000
INCOME TAXES:        
Current 425,000 3,817,000 2,198,000 4,198,000
Deferred taxes, net 1,459,000 39,000 4,543,000
Total income taxes 425,000 5,276,000 2,237,000 8,741,000
NET INCOME $ 648,000 $ 10,832,000 $ 4,460,000 $ 22,882,000
Net Income Per Share        
Basic $ 0.03 $ 0.46 $ 0.18 $ 0.98
Diluted $ 0.02 $ 0.43 $ 0.17 $ 0.93
Weighted average common shares outstanding:        
Basic 24,150,388 23,320,514 24,185,129 23,291,408
Diluted 26,412,139 25,198,142 26,480,084 24,700,784
Cash dividends declared per share $ 0.05 $ 0.10
NET INCOME $ 648,000 $ 10,832,000 $ 4,460,000 $ 22,882,000
OTHER COMPREHENSIVE INCOME:        
Unrealized holding gain (loss) on securities available-for-sale arising during the period (2,000) (4,000) (1,000) 39,000
COMPREHENSIVE INCOME $ 646,000 $ 10,828,000 $ 4,459,000 $ 22,921,000

Source

v3.8.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) - USD ($)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net Income $ 4,460,000 $ 22,882,000
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization of Patents 150,000 760,000
Stock -based compensation 711,000 233,000
Deferred tax provision 39,000 4,543,000
Changes in operating assets and liabilities:    
Royalty receivables (691,000) 123,000
Prepaid Taxes 895,000
Other current assets 65,000 176,000
Accounts payable (101,000) 323,000
Accrued expense (2,521,000) 4,020,000
Income taxes payable 930,000 4,080,000
NET CASH PROVIDED BY OPERATING ACTIVITIES 3,937,000 37,140,000
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of patents (50,000) (4,000)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Cash dividends (2,421,000)
Value of shares delivered to fund withholding taxes on exercise of options (56,000) (44,000)
Repurchases of common stock, net of commissions (1,131,000) (1,000)
Proceeds from exercises of options and warrants 1,068,000 60,000
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (2,540,000) 15,000
NET INCREASE IN CASH AND CASH EQUIVALENTS 1,347,000 37,151,000
CASH AND CASH EQUIVALENTS, beginning of period 50,918,000 20,608,000
CASH AND CASH EQUIVALENTS, end of period 52,265,000 57,759,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
CASH PAID DURING THE PERIOD FOR: Interest
CASH PAID DURING THE PERIOD FOR: Taxes 440,000
NON-CASH FINANCING ACTIVITY    
Accrued dividend rights on restricted stock units $ 84,000

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