Network-1 Technologies, Inc.

Financials

v3.20.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Sep. 30, 2020
Dec. 31, 2019
CURRENT ASSETS:    
Cash and cash equivalents $ 24,221,000 $ 22,587,000
Marketable securities, at fair value 21,271,000 25,730,000
Royalty receivables, net 0 343,000
Other current assets 30,000 98,000
TOTAL CURRENT ASSETS 45,522,000 48,758,000
OTHER ASSETS:    
Patents, net of accumulated amortization 1,653,000 1,819,000
Equity investment 3,793,000 4,437,000
Operating leases right-of-use asset 0 41,000
Security deposits 21,000 21,000
Total Other Assets 5,467,000 6,318,000
TOTAL ASSETS 50,989,000 55,076,000
CURRENT LIABILITIES:    
Accounts payable 70,000 421,000
Accrued contingency fees and related costs 75,000 492,000
Accrued payroll 5,000 334,000
Operating lease obligations - current 0 41,000
Other accrued expenses 194,000 281,000
TOTAL CURRENT LIABILITIES 344,000 1,569,000
TOTAL LIABILITIES 344,000 1,569,000
STOCKHOLDERS' EQUITY    
Preferred stock, $0.01 par value, authorized 10,000,000 shares; none issued and outstanding at September 30,2020 and December 31,2019 0 0
Common stock, $0.01 par value; authorized 50,000,000 shares; 24,033,076 and 24,036,071 shares issued and outstanding at September 30,2020 and December 31,2019,respectively 240,000 240,000
Additional paid-in capital 66,065,000 65,824,000
Accumulated deficit (15,664,000) (12,636,000)
Accumulated other comprehensive income 4,000 79,000
TOTAL STOCKHOLDERS' EQUITY 50,645,000 53,507,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 50,989,000 $ 55,076,000

Source

v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)        
REVENUE $ 4,150,000 $ 520,000 $ 4,366,000 $ 1,725,000
OPERATING EXPENSES:        
Costs of revenue 1,593,000 138,000 1,645,000 459,000
Professional fees and related costs 267,000 267,000 790,000 812,000
General and administrative 473,000 466,000 1,418,000 1,442,000
Amortization of patents 72,000 71,000 216,000 212,000
Stock-based compensation 85,000 154,000 242,000 425,000
TOTAL OPERATING EXPENSES 2,490,000 1,096,000 4,311,000 3,350,000
OPERATING INCOME (LOSS) 1,660,000 (576,000) 55,000 (1,625,000)
OTHER INCOME (LOSS):        
Interest and dividend income, net 105,000 270,000 403,000 872,000
Net realized and unrealized gain (loss) on marketable securities 68,000 (39,000) (48,000) 6,000
Total other income, net 173,000 231,000 355,000 878,000
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN NET LOSSES OF EQUITY METHOD INVESTEE 1,833,000 (345,000) 410,000 (747,000)
INCOME TAXES PROVISION (BENEFIT):        
Current 355,000 (197,000) (79,000) (197,000)
Deferred taxes, net (355,000) 67,000 79,000 (36,000)
Total income taxes (benefit) 0 (130,000) 0 (233,000)
INCOME (LOSS) BEFORE SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE: 1,833,000 (215,000) 410,000 (514,000)
SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE (146,000) (196,000) (644,000) (345,000)
NET INCOME (LOSS) $ 1,687,000 $ (411,000) $ (234,000) $ (859,000)
Net Income (loss) per share        
EPS, Basic $ 0.07 $ (0.02) $ (0.01) $ (0.04)
EPS, Diluted $ 0.07 $ (0.02) $ (0.01) $ (0.04)
Weighted average common shares outstanding:        
Basic 24,012,333 24,138,191 23,992,203 23,935,304
Diluted 24,521,708 24,138,191 23,992,203 23,935,304
Cash dividends declared per share $ 0.05 $ 0.05 $ 0.10 $ 0.10
OTHER COMPREHENSIVE INCOME (LOSS)        
Net unrealized holding gain (loss) on corporate bonds and notes arising during the period, net of tax $ (67,000) $ 20,000 $ (75,000) $ 183,000
COMPREHENSIVE INCOME (LOSS) $ 1,620,000 $ (391,000) $ (309,000) $ (676,000)

Source

v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (234,000) $ (859,000)
Adjustments to reconcile net loss to net cash used in operating activities:    
Amortization of patents 216,000 212,000
Stock-based compensation 242,000 425,000
Loss from equity investment 644,000 345,000
Deferred tax benefit 0 (36,000)
Amortization of right of use asset, net 41,000 76,000
Unrealized gain on marketable securities (10,000) (17,000)
Changes in operating asset and liabilities:    
Royalty receivables 343,000 (49,000)
Other current assets 68,000 81,000
Accounts payable (350,000) 178,000
Income taxes payable 0 (197,000)
Operating lease obligations (41,000) (74,000)
Accrued expenses (812,000) (1,473,000)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 107,000 (1,388,000)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Sales of marketable securities 17,539,000 30,836,000
Purchases of marketable securities (13,145,000) (30,691,000)
Development of patents (50,000) (55,000)
Equity investment   (2,500,000)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 4,344,000 (2,410,000)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Cash dividends paid (2,456,000) (2,428,000)
Value of shares delivered to fund withholding taxes (109,000) (499,000)
Repurchases of common stock, inclusive of commissions (252,000) (408,000)
Proceeds from exercise of options 0 107,000
NET CASH USED IN FINANCING ACTIVITIES: (2,817,000) (3,228,000)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,634,000 (7,026,000)
CASH AND CASH EQUIVALENTS, beginning of period 22,587,000 23,763,000
CASH AND CASH EQUIVALENTS, end of period 24,221,000 16,737,000
Cash paid during the period for:    
Interest 0 0
Income taxes 0 0
NON-CASH FINANCING ACTIVITY    
Accrued dividend rights on restricted stock units $ 31,000 $ 50,000

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