Network-1 Technologies, Inc.

Financials

v3.22.2.2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
Sep. 30, 2022
Dec. 31, 2021
ASSETS   CURRENT ASSETS:    
Cash and cash equivalents $ 21,164,000 $ 44,497,000
Marketable securities, at fair value 27,759,000 15,126,000
Prepaid taxes 336,000 10,000
Other current assets 108,000 140,000
TOTAL CURRENT ASSETS 49,367,000 59,773,000
OTHER ASSETS:    
Patents, net of accumulated amortization 1,675,000 1,384,000
Equity investment 7,661,000 2,651,000
Convertible note investment 1,000,000
Operating leases right of - use asset 177,000
Security deposits 13,000 13,000
Total other assets 9,526,000 5,048,000
TOTAL ASSETS 58,893,000 64,821,000
    LIABILITIES AND STOCKHOLDERS’ EQUITY:   CURRENT LIABILITIES:    
Income taxes payable 4,000 2,952,000
Accounts payable 348,000 459,000
Accrued contingency fees and related costs 35,000 137,000
Accrued payroll 26,000 380,000
Other accrued expenses 327,000 180,000
Operating lease obligation, current 72,000
Total current liabilities 812,000 4,108,000
LONG TERM LIABILITIES:    
  Deferred tax liability 976,000 554,000
  Operating lease obligation, noncurrent 111,000
TOTAL LIABILITIES 1,899,000 4,662,000
STOCKHOLDERS’ EQUITY    
Preferred stock, $0.01 par value, authorized 10,000,000 shares; none issued and outstanding at September 30, 2022 and December 31, 2021
Common stock, $0.01 par value; authorized 50,000,000 shares; 23,727,231 and 23,792,212 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively 237,000 238,000
Additional paid-in capital 66,767,000 66,361,000
Accumulated deficit (9,996,000) (6,428,000)
Accumulated other comprehensive loss (14,000) (12,000)
TOTAL STOCKHOLDERS’ EQUITY 56,994,000 60,159,000
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 58,893,000 $ 64,821,000

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v3.22.2.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (UNAUDITED) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Income Statement [Abstract]        
REVENUE $ 17,000,000 $ 35,692,000
OPERATING EXPENSES:        
Costs of revenue 6,610,000 12,030,000
Professional fees and related costs 117,000 721,000 524,000 1,384,000
General and administrative 639,000 558,000 1,812,000 1,650,000
Amortization of patents 82,000 74,000 233,000 221,000
TOTAL OPERATING EXPENSES 838,000 7,963,000 2,569,000 15,285,000
OPERATING INCOME (LOSS) (838,000) 9,037,000 (2,569,000) 20,407,000
 OTHER INCOME:        
Interest and dividend income, net 321,000 67,000 532,000 185,000
Gain on conversion of note 271,000 271,000
Gain on equity method investment 3,727,000 3,727,000
Net realized and unrealized loss on marketable securities (268,000) (40,000) (1,358,000) (32,000)
Total other income, net 4,051,000 27,000 3,172,000 153,000
INCOME BEFORE INCOME TAXES AND EQUITY IN NET LOSSES OF EQUITY METHOD INVESTEE 3,213,000 9,064,000 603,000 20,560,000
INCOME TAXES PROVISION:        
Current (274,000) 2,326,000 (274,000) 3,036,000
Deferred taxes, net 976,000 (37,000) 422,000 1,635,000
Total income tax expense 702,000 2,289,000 148,000 4,671,000
INCOME (LOSS) BEFORE SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE: 2,511,000 6,775,000 455,000 15,889,000
SHARE OF NET LOSS OF EQUITY METHOD INVESTEE (285,000) (186,000) (1,073,000) (632,000)
NET INCOME (LOSS) $ 2,226,000 $ 6,589,000 $ (618,000) $ 15,257,000
Basic $ 0.09 $ 0.28 $ (0.03) $ 0.63
Diluted $ 0.09 $ 0.27 $ (0.03) $ 0.62
Weighted average common shares outstanding:        
Basic 23,765,089 23,934,361 23,830,702 24,136,506
Diluted 24,065,724 24,320,231 23,830,702 24,607,242
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 $ 2,000 $ (4,000) $ (2,000) $ 4,000
COMPREHENSIVE INCOME (LOSS) $ 2,228,000 $ 6,585,000 $ (620,000) $ 15,261,000

Source

v3.22.2.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net (loss) income $ (618,000) $ 15,257,000
used in operating activities:    
Amortization of patents 233,000 221,000
Stock-based compensation 407,000 183,000
Loss allocated from equity method investment 1,073,000 632,000
Deferred tax expense 422,000 1,634,000
Amortization of right of use asset, net 27,000
Gain on equity method investment (3,727,000)
Accrued interest on convertible note (86,000)
Gain on conversion of note (271,000)
Unrealized loss on marketable securities 1,079,000 9,000
Changes in operating asset and liabilities:    
Other current assets 32,000 94,000
Prepaid taxes (326,000)
Accounts payable (110,000) (197,000)
Income taxes payable (2,948,000) 3,036,000
Security deposit 8,000
Operating lease obligations (21,000)
Accrued expenses (346,000) (1,276,000)
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES (5,180,000) 19,601,000
CASH FLOWS FROM INVESTING ACTIVITIES:    
Sales of marketable securities 8,750,000 12,291,000
Purchases of marketable securities (22,464,000) (10,597,000)
Development of patents (524,000) (86,000)
Equity Investment (1,000,000)
Convertible note investment (1,000,000)
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES (15,238,000) 608,000
CASH FLOWS FROM FINANCING ACTIVITIES:    
Cash dividends paid (2,381,000) (2,410,000)
Value of shares delivered to fund withholding taxes (112,000)
Repurchases of common stock, inclusive of commissions (422,000) (131,000)
NET CASH USED IN FINANCING ACTIVITIES: (2,915,000) (2,541,000)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (23,333,000) 17,668,000
CASH AND CASH EQUIVALENTS, beginning of period 44,497,000 25,505,000
CASH AND CASH EQUIVALENTS, end of period 21,164,000 43,173,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Interest
Income taxes 3,165,000
NON-CASH FINANCING ACTIVITIES    
Accrued dividend rights on restricted stock units 37,000 19,000
Right of use asset obtained in exchange for lease liability 204,000
Conversion of note receivable $ 1,086,000

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