Network-1 Technologies, Inc.

Financials

v3.10.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Jun. 30, 2018
Dec. 31, 2017
CURRENT ASSETS:    
Cash and cash equivalents $ 32,959,000 $ 51,101,000
Other investments 26,997,000 3,054,000
Royalty receivables, net 448,000 575,000
Prepaid taxes 125,000
Other current assets 44,000 83,000
Total Current Assets 60,448,000 54,938,000
OTHER ASSETS:    
Deferred tax assets 168,000 168,000
Patents, net of accumulated amortization 2,083,000 2,169,000
Security deposits 19,000 19,000
Total Other Assets 2,270,000 2,356,000
TOTAL ASSETS 62,718,000 57,294,000
CURRENT LIABILITIES:    
Accounts payable 234,000 244,000
Income taxes payable 1,164,000
Accrued contingency fees and related costs 737,000 1,780,000
Accrued payroll 58,000 709,000
Other accrued expenses 191,000 149,000
TOTAL LIABILITIES 2,384,000 2,882,000
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY    
Preferred stock, $0.01 par value, authorized 10,000,000 shares; none issued and outstanding at June 30, 2018 and December 31, 2017, respectively
Common stock, $0.01 par value; authorized 50,000,000 shares; 23,633,229 and 23,843,915 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively 236,000 238,000
Additional paid-in capital 64,916,000 64,435,000
Accumulated deficit (4,742,000) (10,219,000)
Accumulated other comprehensive loss (76,000) (42,000)
TOTAL STOCKHOLDERS' EQUITY 60,334,000 54,412,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 62,718,000 $ 57,294,000

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v3.10.0.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Condensed Consolidated Statements Of Operations And Comprehensive Income Loss        
REVENUE $ 471,000 $ 4,862,000 $ 19,934,000 $ 11,083,000
OPERATING EXPENSES:        
Costs of revenue 133,000 1,583,000 7,392,000 3,375,000
Professional fees and related costs 586,000 215,000 1,104,000 620,000
General and administrative 462,000 440,000 969,000 924,000
Amortization of patents 69,000 50,000 139,000 100,000
Stock-based compensation 225,000 237,000 451,000 474,000
TOTAL OPERATING EXPENSES 1,475,000 2,525,000 10,055,000 5,493,000
OPERATING INCOME (LOSS) (1,004,000) 2,337,000 9,879,000 5,590,000
OTHER INCOME:        
Interest income, net 203,000 25,000 346,000 34,000
INCOME (LOSS) BEFORE INCOME TAXES (801,000) 2,362,000 10,225,000 5,624,000
INCOME TAXES (BENEFIT):        
Current (237,000) 818,000 2,188,000 1,773,000
Deferred taxes, net 39,000
Total income taxes (benefit) (237,000) 818,000 2,188,000 1,812,000
NET INCOME (LOSS) $ (564,000) $ 1,544,000 $ 8,037,000 $ 3,812,000
Net Income (Loss) Per Share        
Basic $ (0.02) $ 0.06 $ 0.34 $ 0.16
Diluted $ (0.02) $ 0.06 $ 0.31 $ 0.14
Weighted average common shares outstanding:        
Basic 23,713,827 24,285,803 23,760,163 24,202,788
Diluted 23,713,827 26,693,310 25,599,581 26,514,620
Cash dividends declared per share $ 0.05 $ 0.05
NET INCOME (LOSS) $ (564,000) $ 1,544,000 $ 8,037,000 $ 3,812,000
OTHER COMPREHENSIVE INCOME (LOSS)        
Unrealized holding loss on securities available-for-sale arising during the period (9,000) 2,000 (34,000) 1,000
COMPREHENSIVE INCOME (LOSS) $ (573,000) $ 1,546,000 $ 8,003,000 $ 3,813,000

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v3.10.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net Income $ 8,037,000 $ 3,812,000
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization of Patents 139,000 100,000
Stock-based compensation 451,000 474,000
Deferred tax provision 39,000
Changes in operating assets and liabilities:    
Royalty receivables 127,000 (1,518,000)
Prepaid taxes 125,000 1,195,000
Other current assets 39,000 39,000
Accounts payable (10,000) (15,000)
Income taxes payable 1,164,000 640,000
Accrued expense (1,693,000) (2,598,000)
NET CASH PROVIDED BY OPERATING ACTIVITIES 8,379,000 2,168,000
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of other investments (23,977,000)
Development of patents (53,000) (8,000)
CASH USED IN INVESTING ACTIVITIES (24,030,000) (8,000)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Cash dividends paid (1,188,000) (1,214,000)
Value of shares delivered to fund withholding taxes (50,000) (56,000)
Repurchases of common stock, net of commissions (1,283,000) (981,000)
Proceeds from exercise of options and warrants 30,000 1,068,000
NET CASH USED IN FINANCING ACTIVITIES (2,491,000) (1,183,000)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (18,142,000) 977,000
CASH AND CASH EQUIVALENTS, beginning of period 51,101,000 50,918,000
CASH AND CASH EQUIVALENTS, end of period 32,959,000 51,895,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Cash paid during the period for: Interest
Cash paid during the period for: Income taxes 918,000
NON-CASH FINANCING ACTIVITY    
Accrued dividend rights on restricted stock units $ 41,000 $ 42,000

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