Network-1 Technologies, Inc.

Financials

v3.10.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Sep. 30, 2018
Dec. 31, 2017
CURRENT ASSETS:    
Cash and cash equivalents $ 27,193,000 $ 51,101,000
Other investments 29,612,000 3,054,000
Royalty receivables, net 1,861,000 575,000
Prepaid taxes 125,000
Other current assets 18,000 83,000
Total Current Assets 58,684,000 54,938,000
OTHER ASSETS:    
Deferred tax assets 168,000 168,000
Patents, net of accumulated amortization 2,062,000 2,169,000
Security deposits 21,000 19,000
Total Other Assets 2,251,000 2,356,000
TOTAL ASSETS 60,935,000 57,294,000
CURRENT LIABILITIES:    
Accounts payable 159,000 244,000
Income taxes payable 744,000
Accrued contingency fees and related costs 1,039,000 1,780,000
Accrued payroll 90,000 709,000
Other accrued expenses 164,000 149,000
TOTAL LIABILITIES 2,196,000 2,882,000
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY    
Preferred stock, $0.01 par value, authorized 10,000,000 shares; none issued and outstanding at September 30, 2018 and December 31, 2017
Common stock, $0.01 par value; authorized 50,000,000 shares; 23,755,171 and 23,843,915 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively 237,000 238,000
Additional paid-in capital 65,035,000 64,435,000
Accumulated deficit (6,452,000) (10,219,000)
Accumulated other comprehensive loss (81,000) (42,000)
TOTAL STOCKHOLDERS' EQUITY 58,739,000 54,412,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 60,935,000 $ 57,294,000

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v3.10.0.1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Condensed Consolidated Statements Of Income And Comprehensive Income        
REVENUE $ 1,798,000 $ 3,237,000 $ 21,732,000 $ 14,320,000
OPERATING EXPENSES:        
Costs of revenue 596,000 964,000 7,988,000 4,339,000
Professional fees and related costs 352,000 534,000 1,456,000 1,154,000
General and administrative 491,000 434,000 1,460,000 1,358,000
Amortization of patents 70,000 50,000 209,000 150,000
Stock-based compensation 120,000 237,000 571,000 711,000
TOTAL OPERATING EXPENSES 1,629,000 2,219,000 11,684,000 7,712,000
OPERATING INCOME 169,000 1,018,000 10,048,000 6,608,000
OTHER INCOME:        
Interest income, net 244,000 55,000 590,000 89,000
INCOME (LOSS) BEFORE INCOME TAXES 413,000 1,073,000 10,638,000 6,697,000
INCOME TAXES:        
Current 167,000 425,000 2,355,000 2,198,000
Deferred taxes, net 39,000
Total income taxes 167,000 425,000 2,355,000 2,237,000
NET INCOME $ 246,000 $ 648,000 $ 8,283,000 $ 4,460,000
Net Income Per Share        
Basic $ 0.01 $ 0.03 $ 0.35 $ 0.18
Diluted $ 0.01 $ 0.02 $ 0.33 $ 0.17
Weighted average common shares outstanding:        
Basic 23,525,645 24,150,388 23,767,700 24,185,129
Diluted 24,922,434 26,412,139 25,457,953 26,480,084
Cash dividends declared per share $ 0.05 $ 0.05 $ 0.10 $ 0.10
NET INCOME $ 246,000 $ 648,000 $ 8,283,000 $ 4,460,000
OTHER COMPREHENSIVE INOME (LOSS)        
Unrealized holding loss on securities available-for-sale arising during the period (5,000) (2,000) (39,000) (1,000)
COMPREHENSIVE INCOME $ 241,000 $ 646,000 $ 8,244,000 $ 4,459,000

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v3.10.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net Income $ 8,283,000 $ 4,460,000
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization of patents 209,000 150,000
Stock-based compensation 571,000 711,000
Deferred tax provision 39,000
Changes in operating assets and liabilities:    
Royalty receivables (1,286,000) (691,000)
Prepaid taxes 125,000 895,000
Other current assets 65,000 65,000
Accounts payable (85,000) (101,000)
Income taxes payable 744,000 930,000
Accrued expenses (1,334,000) (2,521,000)
NET CASH PROVIDED BY OPERATING ACTIVITIES 7,292,000 3,937,000
CASH FLOWS FROM INVESTING ACTIVITIES:    
Increase in security deposit (2,000)
Purchases of other investments (26,601,000)
Development of patents (102,000) (50,000)
CASH USED IN INVESTING ACTIVITIES (26,705,000) (50,000)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Cash dividends paid (2,445,000) (2,421,000)
Value of shares delivered to fund withholding taxes (545,000) (56,000)
Repurchases of common stock, net of commissions (1,535,000) (1,131,000)
Proceeds from exercise of options and warrants 30,000 1,068,000
NET CASH USED IN FINANCING ACTIVITIES (4,495,000) (2,540,000)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (23,908,000) 1,347,000
CASH AND CASH EQUIVALENTS, beginning of period 51,101,000 50,918,000
CASH AND CASH EQUIVALENTS, end of period 27,193,000 52,265,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Cash paid during the period for: Interest
Cash paid during the period for: Income taxes 1,501,000 440,000
NON-CASH FINANCING ACTIVITY    
Accrued dividend rights on restricted stock units $ 61,000 $ 84,000

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