Network-1 Technologies, Inc.

Financials

v3.19.2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
Jun. 30, 2019
Dec. 31, 2018
CURRENT ASSETS:    
Cash and cash equivalents $ 18,923,000 $ 23,763,000
Marketable securities, at fair value 32,116,000 31,228,000
Royalty receivables, net 641,000 444,000
Other current assets 58,000 112,000
Total Current Assets 51,738,000 55,547,000
OTHER ASSETS:    
Deferred tax assets 271,000 168,000
Patents, net of accumulated amortization 1,883,000 1,989,000
Equity investment 3,392,000 2,541,000
Operating leases right-of-use asset 63,000
Security deposits 21,000 21,000
Total Other Assets 5,630,000 4,719,000
TOTAL ASSETS 57,368,000 60,266,000
CURRENT LIABILITIES:    
Accounts payable 200,000 67,000
Income taxes payable 197,000 197,000
Accrued contingency fees and related costs 276,000 1,136,000
Accrued payroll 64,000 486,000
Operating lease obligations – current 64,000
Other accrued expenses 184,000 175,000
TOTAL CURRENT LIABILITIES 985,000 2,061,000
TOTAL LIABILITIES 985,000 2,061,000
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY    
Preferred stock, $0.01 par value, authorized 10,000,000 shares; none issued and outstanding at June 30, 2019 and December 31, 2018
Common stock, $0.01 par value; authorized 50,000,000 shares; 24,088,811 and 23,735,927 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively 241,000 237,000
Additional paid-in capital 65,524,000 65,151,000
Accumulated deficit (9,464,000) (7,102,000)
Accumulated other comprehensive income (loss) 82,000 (81,000)
TOTAL STOCKHOLDERS' EQUITY 56,383,000 58,205,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 57,368,000 $ 60,266,000

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v3.19.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Condensed Consolidated Statements Of Operations And Comprehensive Income Loss        
REVENUE $ 599,000 $ 471,000 $ 1,205,000 $ 19,934,000
OPERATING EXPENSES:        
Costs of revenue 175,000 133,000 321,000 7,392,000
Professional fees and related costs 238,000 586,000 545,000 1,104,000
General and administrative 488,000 462,000 976,000 969,000
Amortization of patents 87,000 69,000 141,000 139,000
Stock-based compensation 127,000 225,000 271,000 451,000
TOTAL OPERATING EXPENSES 1,115,000 1,475,000 2,254,000 10,055,000
OPERATING INCOME(LOSS) (516,000) (1,004,000) (1,049,000) 9,879,000
OTHER INCOME:        
Interest income, net 301,000 203,000 602,000 346,000
Net realized and unrealized gain on marketable securities 22,000 45,000
Total other income 323,000 203,000 647,000 346,000
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN NET LOSSES OF EQUITY METHOD INVESTEE (193,000) (801,000) (402,000) 10,225,000
INCOME TAXES (BENEFIT):        
Current (237,000) 2,188,000
Deferred taxes, net (38,000) (103,000)
Total income taxes (benefit) (38,000) (237,000) (103,000) 2,188,000
INCOME (LOSS) BEFORE SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE: (155,000) 564,000 (299,000) 8,037,000
SHARE OF NET (LOSSES) OF EQUITY METHOD INVESTEE (53,000) (149,000)
NET INCOME (LOSS) $ (208,000) $ (564,000) $ (448,000) $ 8,037,000
Net Income (LOSS) Per Share        
Basic $ (0.01) $ (0.02) $ (0.02) $ 0.34
Diluted $ (0.01) $ (0.02) $ (0.02) $ 0.31
Weighted average common shares outstanding:        
Basic 23,917,563 23,713,827 23,830,367 23,760,163
Diluted 23,917,563 23,713,827 23,830,367 25,599,581
Cash dividends declared per share $ 0.05 $ 0.05
NET INCOME (LOSS) $ (208,000) $ (564,000) $ (448,000) $ 8,037,000
OTHER COMPREHENSIVE INOME (LOSS)        
Net unrealized holding gain (loss) on corporate bonds and notes arising during the period, net of tax 53,000 (9,000) 163,000 (34,000)
COMPREHENSIVE INCOME (LOSS) $ (155,000) $ (573,000) $ (285,000) $ 8,003,000

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v3.19.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income (loss) $ (448,000) $ 8,037,000
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Amortization of patents 141,000 139,000
Stock-based compensation 271,000 451,000
Loss from equity investment 149,000
Deferred tax benefit (103,000)
Amortization of right of use asset, net 67,000
Unrealized gain on marketable securities (45,000)
Changes in operating assets and liabilities:    
Royalty receivables (197,000) 127,000
Prepaid taxes 125,000
Other current assets 54,000 39,000
Accounts payable 133,000 (10,000)
Income taxes payable 1,164,000
Operating lease obligations (67,000)
Accrued expenses (1,297,000) (1,693,000)
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES (1,342,000) 8,379,000
CASH FLOWS FROM INVESTING ACTIVITIES:    
Sales of marketable securities 21,611,000 4,894,000
Purchases of marketable securities (22,291,000) (24,378,000)
Development of patents (35,000) (53,000)
Equity Investment (1,000,000)
NET CASH USED IN INVESTING ACTIVITY (1,715,000) (19,537,000)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Cash dividends paid (1,191,000) (1,188,000)
Value of shares delivered to fund withholding taxes (366,000) (50,000)
Repurchases of common stock, net of commissions (333,000) (1,283,000)
Proceeds from exercise of options and warrants 107,000 30,000
NET CASH USED IN FINANCING ACTIVITIES (1,783,000) (2,491,000)
NET DECREASE IN CASH AND CASH EQUIVALENTS (4,840,000) (13,649,000)
CASH AND CASH EQUIVALENTS, beginning of period 23,763,000 44,351,000
CASH AND CASH EQUIVALENTS, end of period 18,923,000 30,702,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Cash paid during the period for: Income taxes 918,000
NON-CASH FINANCING ACTIVITY    
Accrued dividend rights on restricted stock units $ 27,000 $ 41,000

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