Network-1 Technologies, Inc.

Financials

v3.19.3
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
Sep. 30, 2019
Dec. 31, 2018
CURRENT ASSETS:    
Cash and cash equivalents $ 16,737,000 $ 23,763,000
Marketable securities, at fair value 31,283,000 31,228,000
Royalty receivables, net 493,000 444,000
Other current assets 31,000 112,000
Total Current Assets 48,544,000 55,547,000
OTHER ASSETS:    
Deferred tax assets 204,000 168,000
Patents, net of accumulated amortization 1,832,000 1,989,000
Equity investment 4,696,000 2,541,000
Operating leases right-of-use asset 52,000
Security deposits 21,000 21,000
Total Other Assets 6,805,000 4,719,000
TOTAL ASSETS 55,349,000 60,266,000
CURRENT LIABILITIES:    
Accounts payable 245,000 67,000
Income taxes payable 197,000
Accrued contingency fees and related costs 112,000 1,136,000
Accrued payroll 30,000 486,000
Operating lease obligations – current 53,000
Other accrued expenses 198,000 175,000
TOTAL CURRENT LIABILITIES 638,000 2,061,000
TOTAL LIABILITIES 638,000 2,061,000
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY    
Preferred stock, $0.01 par value, authorized 10,000,000 shares; none issued and outstanding at September 30, 2019 and 12/31/2018
Common stock, $0.01 par value; authorized 50,000,000 shares; 24,137,841 and 23,735,927 shares issued and outstanding at September 30, 2019 and December 31, 2018, 241,000 237,000
Additional paid-in capital 65,678,000 65,151,000
Accumulated deficit (11,310,000) (7,102,000)
Accumulated other comprehensive income (loss) 102,000 (81,000)
TOTAL STOCKHOLDERS' EQUITY 54,711,000 58,205,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 55,349,000 $ 60,266,000

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v3.19.3
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Condensed Consolidated Statements Of Operations And Comprehensive Income Loss        
REVENUE $ 520,000 $ 1,798,000 $ 1,725,000 $ 21,732,000
OPERATING EXPENSES:        
Costs of revenue 138,000 596,000 459,000 7,988,000
Professional fees and related costs 267,000 352,000 812,000 1,456,000
General and administrative 466,000 491,000 1,442,000 1,460,000
Amortization of patents 71,000 70,000 212,000 209,000
Stock-based compensation 154,000 120,000 425,000 571,000
TOTAL OPERATING EXPENSES 1,096,000 1,629,000 3,350,000 11,684,000
OPERATING INCOME(LOSS) (576,000) 169,000 (1,625,000) 10,048,000
OTHER INCOME (LOSS):        
Interest and dividend income, net 270,000 244,000 872,000 590,000
Net realized and unrealized gain (loss) on marketable securities (39,000) 6,000
Total other income, net 231,000 244,000 878,000 590,000
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN NET LOSSES OF EQUITY METHOD INVESTEE (345,000) 413,000 (747,000) 10,638,000
INCOME TAXES PROVISION (BENEFIT):        
Current (197,000) 167,000 (197,000) 2,355,000
Deferred taxes, net 67,000 (36,000)
Total income taxes provision (benefit) (130,000) 167,000 (233,000) 2,355,000
INCOME (LOSS) BEFORE SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE: (215,000) 246,000 (514,000) 8,283,000
SHARE OF NET (LOSSES) OF EQUITY METHOD INVESTEE (196,000) (345,000)
NET INCOME (LOSS) $ (411,000) $ 246,000 $ (859,000) $ 8,283,000
Net Income (LOSS) Per Share        
Basic $ (0.02) $ 0.01 $ (0.04) $ 0.35
Diluted $ (0.02) $ 0.01 $ (0.04) $ 0.33
Weighted average common shares outstanding:        
Basic 24,138,191 23,525,645 23,935,304 23,767,700
Diluted 24,138,191 24,922,434 23,935,304 25,457,953
Cash dividends declared per share $ 0.05 $ 0.05 $ 0.10 $ 0.10
NET INCOME (LOSS) $ (411,000) $ 246,000 $ (859,000) $ 8,283,000
OTHER COMPREHENSIVE INOME (LOSS)        
Net unrealized holding gain (loss) on corporate bonds and notes arising during the period, net of tax 20,000 (5,000) 183,000 (39,000)
COMPREHENSIVE INCOME (LOSS) $ (391,000) $ 241,000 $ (676,000) $ 8,244,000

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v3.19.3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income (loss) $ (859,000) $ 8,283,000
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Amortization of patents 212,000 209,000
Stock-based compensation 425,000 571,000
Loss from equity investment 345,000
Deferred tax benefit (36,000)
Amortization of right of use asset, net 76,000
Unrealized gain on marketable securities (17,000)
Changes in operating assets and liabilities:    
Royalty receivables (49,000) (1,286,000)
Prepaid taxes 125,000
Other current assets 81,000 65,000
Accounts payable 178,000 (85,000)
Income taxes payable (197,000) 744,000
Operating lease obligations (74,000)
Accrued expenses (1,473,000) (1,334,000)
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES (1,388,000) 7,292,000
CASH FLOWS FROM INVESTING ACTIVITIES:    
Sales of marketable securities 30,836,000
Increase in security deposit (2,000)
Purchases of marketable securities (30,691,000) (26,601,000)
Development of patents (55,000) (102,000)
Equity Investment (2,500,000)
NET CASH USED IN INVESTING ACTIVITY (2,410,000) (26,705,000)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Cash dividends paid (2,428,000) (2,445,000)
Value of shares delivered to fund withholding taxes (499,000) (545,000)
Repurchases of common stock, net of commissions (408,000) (1,535,000)
Proceeds from exercise of options 107,000 30,000
NET CASH USED IN FINANCING ACTIVITIES (3,228,000) (4,495,000)
NET DECREASE IN CASH AND CASH EQUIVALENTS (7,026,000) (23,908,000)
CASH AND CASH EQUIVALENTS, beginning of period 23,763,000 51,101,000
CASH AND CASH EQUIVALENTS, end of period 16,737,000 27,193,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Cash paid during the period for: Interest
Cash paid during the period for: Income taxes 1,501,000
NON-CASH FINANCING ACTIVITY    
Accrued dividend rights on restricted stock units $ 50,000 $ 61,000

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