Network-1 Technologies, Inc.

Financials

v3.20.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Mar. 31, 2020
Dec. 31, 2019
CURRENT ASSETS:    
Cash and cash equivalents $ 26,594,000 $ 22,587,000
Marketable securities, at fair value 18,409,000 25,730,000
Royalty receivables, net 144,000 343,000
Other current assets 75,000 98,000
Total Current Assets 45,222,000 48,758,000
OTHER ASSETS:    
Patent, net of accumulated amortization 1,755,000 1,819,000
Equity investment 4,144,000 4,437,000
Operating leases right-of-use asset 9,000 41,000
Security deposits 21,000 21,000
Total Other Assets 5,929,000 6,318,000
TOTAL ASSETS 51,151,000 55,076,000
CURRENT LIABILITIES:    
Accounts payable 214,000 421,000
Accrued contingency fees and related costs 24,000 492,000
Accrued payroll 13,000 334,000
Operating lease obligations - current 9,000 41,000
Other accrued expenses 207,000 281,000
TOTAL CURRENT LIABILITIES 467,000 1,569,000
TOTAL LIABILITIES 467,000 1,569,000
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY    
Preferred stock, $0.01 par value, authorized 10,000,000 shares; none issued and outstanding at March 31, 2020 and December 31, 2019
Common stock, $0.01 par value; authorized 50,000,000 shares; 23,979,728 and 24,036,071 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively 239,000 240,000
Additional paid-in capital 65,896,000 65,824,000
Accumulated deficit (15,347,000) (12,636,000)
Accumulated other comprehensive income (loss) (104,000) 79,000
TOTAL STOCKHOLDERS' EQUITY 50,684,000 53,507,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 51,151,000 $ 55,076,000

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v3.20.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($)
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)    
REVENUE $ 161,000 $ 606,000
OPERATING EXPENSES:    
Costs of revenue 32,000 146,000
Professional fees and related costs 399,000 307,000
General and administrative 486,000 488,000
Amortization of patents 72,000 54,000
Stock-based compensation 72,000 144,000
TOTAL OPERATING EXPENSES 1,061,000 1,139,000
OPERATING LOSS (900,000) (533,000)
OTHER INCOME (LOSS):    
Interest and dividend income, net 178,000 301,000
Net realized and unrealized gain (loss) on marketable securities (322,000) 23,000
Total other income (loss), net (144,000) 324,000
LOSS BEFORE INCOME TAXES AND EQUITY IN NET LOSSES OF EQUITY METHOD INVESTEE (1,044,000) (209,000)
INCOME TAXES PROVISION (BENEFIT):    
Current
Deferred taxes, net (65,000)
Total income taxes provision (benefit) (65,000)
LOSS BEFORE SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE: (1,044,000) (144,000)
SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE (293,000) (96,000)
NET LOSS $ (1,337,000) $ (240,000)
Net Loss Per Share    
Basic $ (0.06) $ (0.01)
Diluted $ (0.06) $ (0.01)
Weighted average common shares outstanding:    
Basic 24,029,513 23,745,848
Diluted 24,029,513 23,745,848
Cash dividends declared per share $ 0.05 $ 0.05
NET LOSS $ (1,337,000) $ (240,000)
OTHER COMPREHENSIVE INCOME (LOSS):    
Net unrealized holding gain (loss) on corporate bonds and notes during the period, net of tax (163,000) 115,000
Amounts reclassified from accumulated other comprehensive income (loss) (20,000) (5,000)
Net other comprehensive income (loss) (183,000) 110,000
COMPREHENSIVE LOSS $ (1,520,000) $ (130,000)

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v3.20.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (1,337,000) $ (240,000)
Adjustments to reconcile net loss to net cash used in operating activities:    
Amortization of Patents 72,000 54,000
Stock -based compensation 72,000 144,000
Loss from equity investment 293,000 96,000
Amortization of right of use asset, net 32,000  
Unrealized (gain) loss on marketable securities 220,000 (14,000)
Deferred tax benefit (65,000)
Changes in operating assets and liabilities:    
Royalty receivables 199,000 (330,000)
Other current assets 23,000 29,000
Operating lease right-of-use assets 33,000
Accounts payable (207,000) 328,000
Operating lease obligations (33,000) (31,000)
Accrued expense (872,000) (1,419,000)
NET CASH USED IN OPERATING ACTIVITIES (1,538,000) (1,415,000)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Sales of marketable securities 10,919,000 10,586,000
Purchases of marketable securities (4,001,000) (10,068,000)
Development of patents (8,000) (24,000)
NET CASH PROVIDED BY INVESTING ACTIVITIES 6,910,000 494,000
CASH FLOWS FROM FINANCING ACTIVITIES:    
Cash dividends paid (1,211,000) (1,191,000)
Repurchases of common stock, inclusive of commissions (154,000) (1,000)
NET CASH USED IN FINANCING ACTIVITIES (1,365,000) (1,192,000)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 4,007,000 (2,113,000)
CASH AND CASH EQUIVALENTS, beginning of period 22,587,000 23,763,000
CASH AND CASH EQUIVALENTS, end of period 26,594,000 21,650,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Cash paid during the period for: Interest
Cash paid during the period for: Income taxes
NON-CASH FINANCING ACTIVITY    
Accrued dividend rights on restricted stock units $ 19,000 $ 27,000

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