Network-1 Technologies, Inc.

Financials

v3.22.1
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
Mar. 31, 2022
Dec. 31, 2021
CURRENT ASSETS:    
Cash and cash equivalents $ 42,459,000 $ 44,497,000
Marketable securities, at fair value 14,076,000 15,126,000
Other current assets 111,000 150,000
TOTAL CURRENT ASSETS 56,646,000 59,773,000
OTHER ASSETS:    
Patents, net of accumulated amortization 1,833,000 1,384,000
Equity investment 2,218,000 2,651,000
Convertible note investment 1,000,000 1,000,000
Security deposits 13,000 13,000
Total other assets 5,064,000 5,048,000
TOTAL ASSETS 61,710,000 64,821,000
CURRENT LIABILITIES:    
Income taxes payable 2,952,000 2,952,000
Accounts payable 490,000 459,000
Accrued contingency fees and related costs 147,000 137,000
Accrued payroll 161,000 380,000
Other accrued expenses 261,000 180,000
Total current liabilities 4,011,000 4,108,000
LONG TERM LIABILITIES:    
Deferred tax liability 102,000 554,000
TOTAL LIABILITIES 4,113,000 4,662,000
STOCKHOLDERS’ EQUITY    
Preferred stock, $0.01 par value, authorized 10,000,000 shares; none issued and outstanding at March 31, 2022 and December 31, 2021
Common stock, $0.01 par value; authorized 50,000,000 shares; 23,883,024 and 23,792,212 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively 239,000 238,000
Additional paid-in capital 66,415,000 66,361,000
Accumulated deficit (9,042,000) (6,428,000)
Accumulated other comprehensive loss (15,000) (12,000)
TOTAL STOCKHOLDERS’ EQUITY 57,597,000 60,159,000
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 61,710,000 $ 64,821,000

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v3.22.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (UNAUDITED) - USD ($)
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Income Statement [Abstract]    
REVENUE $ 18,692,000
OPERATING EXPENSES:    
Costs of revenue 5,420,000
Professional fees and related costs 250,000 355,000
General and administrative 517,000 513,000
Amortization of patents 75,000 74,000
Stock-based compensation 55,000 59,000
TOTAL OPERATING EXPENSES 897,000 6,421,000
OPERATING (LOSS) INCOME (897,000) 12,271,000
OTHER (LOSS) INCOME:    
Interest and dividend income, net 80,000 50,000
Net realized and unrealized loss on marketable securities (514,000) (46,000)
Total other (loss) income, net (434,000) 4,000
(LOSS) INCOME BEFORE INCOME TAXES AND EQUITY IN NET LOSSES OF EQUITY METHOD INVESTEE (1,331,000) 12,275,000
INCOME TAX PROVISION:    
Current 890,000
Deferred taxes, net (452,000) 1,724,000
Total income tax (benefit) expense (452,000) 2,614,000
(LOSS) INCOME BEFORE SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE (879,000) 9,661,000
SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE (433,000) (210,000)
NET (LOSS) INCOME $ (1,312,000) $ 9,451,000
Net (loss) income per share:    
Basic $ (0.05) $ 0.39
Diluted $ (0.05) $ 0.38
Weighted average common shares outstanding:    
Basic 23,909,115 24,107,879
Diluted 23,909,115 24,616,379
Cash dividends declared per share $ 0.05 $ 0.05
NET (LOSS) INCOME $ (1,312,000) $ 9,451,000
OTHER COMPREHENSIVE (LOSS) INCOME    
Net unrealized holding (loss) gain on corporate bonds and notes during the period, net of tax (3,000) 11,000
COMPREHENSIVE (LOSS) INCOME $ (1,315,000) $ 9,462,000

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v3.22.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net (loss) income $ (1,312,000) $ 9,451,000
Adjustments to reconcile net (loss) income to net cash used in operating activities:    
Amortization of patents 75,000 74,000
Stock-based compensation 55,000 59,000
Loss from equity investment 433,000 210,000
Unrealized loss on marketable securities 510,000 23,000
Deferred tax expense (benefit) (452,000) 1,724,000
Changes in operating asset and liabilities:    
Royalty receivables (18,692,000)
Other current assets 39,000 32,000
Income taxes payable 890,000
Security deposit 8,000
Accounts payable 31,000 (232,000)
Accrued expenses (128,000) 5,078,000
NET CASH USED IN OPERATING ACTIVITIES (749,000) (1,375,000)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Sales of marketable securities 1,100,000 4,499,000
Purchases of marketable securities (563,000) (2,293,000)
Development of patents (524,000) (8,000)
Convertible note investment (1,000,000)
NET CASH PROVIDED BY INVESTING ACTIVITIES 13,000 1,198,000
CASH FLOWS FROM FINANCING ACTIVITIES:    
Cash dividends paid (1,190,000) (1,206,000)
Value of shares delivered to fund withholding taxes (112,000)
NET CASH USED IN FINANCING ACTIVITIES: (1,302,000) (1,206,000)
NET DECREASE IN CASH AND CASH EQUIVALENTS (2,038,000) (1,383,000)
CASH AND CASH EQUIVALENTS, beginning of period 44,497,000 25,505,000
CASH AND CASH EQUIVALENTS, end of period 42,459,000 24,122,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Interest
Income taxes
NON-CASH FINANCING ACTIVITY    
Accrued dividend rights on restricted stock units $ 10,000

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