Network-1 Technologies, Inc.

Financials

v3.21.2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
Sep. 30, 2021
Dec. 31, 2020
CURRENT ASSETS:    
Cash and cash equivalents $ 43,173,000 $ 25,505,000
Marketable securities, at fair value 17,667,000 19,366,000
Other current assets 26,000 120,000
TOTAL CURRENT ASSETS 60,866,000 44,991,000
OTHER ASSETS:    
Deferred tax assets, net 954,000
Patents, net of accumulated amortization 1,444,000 1,578,000
Equity investment 3,018,000 3,650,000
Convertible note investment 1,000,000
Security deposits 13,000 21,000
Total Other Assets 5,475,000 6,203,000
TOTAL ASSETS 66,341,000 51,194,000
CURRENT LIABILITIES:    
Income taxes payable 3,036,000
Accounts payable 399,000 597,000
Accrued contingency fees and related costs 46,000 932,000
Accrued payroll 277,000
Other accrued expenses 134,000 226,000
Total Current Liabilities 3,615,000 2,032,000
LONG TERM LIABILITIES:    
Deferred tax liability 680,000
TOTAL LIABILITIES 4,295,000 2,032,000
STOCKHOLDERS’ EQUITY    
Preferred stock, $0.01 par value, authorized 10,000,000 shares; none issued and outstanding at September 30,2021 and December 31,2020
Common stock, $0.01 par value; authorized 50,000,000 shares; 24,099,629 and 24,105,879 shares issued and outstanding at September 30,2021 and December 31,2020,respectively 241,000 241,000
Additional paid-in capital 66,307,000 66,124,000
Accumulated deficit  (4,496,000) (17,193,000)
Accumulated other comprehensive loss (6,000) (10,000)
TOTAL STOCKHOLDERS’ EQUITY 62,046,000 49,162,000
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 66,341,000 $ 51,194,000

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v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Income Statement [Abstract]        
REVENUE $ 17,000,000 $ 4,150,000 $ 35,692,000 $ 4,366,000
OPERATING EXPENSES:        
Costs of revenue 6,610,000 1,593,000 12,030,000 1,645,000
Professional fees and related costs 721,000 267,000 1,384,000 790,000
General and administrative 493,000 473,000 1,467,000 1,418,000
Amortization of patents 74,000 72,000 221,000 216,000
Stock-based compensation 65,000 85,000 183,000 242,000
TOTAL OPERATING EXPENSES 7,963,000 2,490,000 15,285,000 4,311,000
OPERATING INCOME 9,037,000 1,660,000 20,407,000 55,000
OTHER INCOME:        
Interest and dividend income, net 67,000 105,000 185,000 403,000
Net realized and unrealized gain (loss) on marketable securities (40,000) 68,000 (32,000) (48,000)
Total other income, net 27,000 173,000 153,000 355,000
INCOME BEFORE INCOME TAXES AND EQUITY IN NET LOSSES OF EQUITY METHOD INVESTEE 9,064,000 1,833,000 20,560,000 410,000
INCOME TAXES PROVISION:        
Current 2,326,000 355,000 3,036,000 (79,000)
Deferred taxes, net (37,000) (355,000) 1,635,000 79,000
Total income taxes provision 2,289,000 4,671,000
INCOME BEFORE SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE: 6,775,000 1,833,000 15,889,000 410,000
SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE (186,000) (146,000) (632,000) (644,000)
NET INCOME (LOSS) $ 6,589,000 $ 1,687,000 $ 15,257,000 $ (234,000)
Net Income (loss) per share        
Basic $ 0.28 $ 0.07 $ 0.63 $ (0.01)
Diluted $ 0.27 $ 0.07 $ 0.62 $ (0.01)
Weighted average common shares outstanding:        
Basic 23,934,361 24,012,333 24,136,506 23,992,203
Diluted 24,320,231 24,521,708 24,607,242 23,992,203
Cash dividends declared per share $ 0.05 $ 0.05 $ 0.10 $ 0.10
NET INCOME (LOSS) $ 6,589,000 $ 1,687,000 $ 15,257,000 $ (234,000)
OTHER COMPREHENSIVE INCOME (LOSS) Net unrealized holding gain (loss) on corporate bonds and notes arising during the period, net of tax (4,000) (67,000) 4,000 (75,000)
COMPREHENSIVE INCOME (LOSS) $ 6,585,000 $ 1,620,000 $ 15,261,000 $ (309,000)

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v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income (loss) $ 15,257,000 $ (234,000)
Adjustments to reconcile net income (loss) to net cash    
Amortization of patents 221,000 216,000
Stock-based compensation 183,000 242,000
Loss from equity investment 632,000 644,000
Deferred tax expense 1,634,000
Amortization of right of use asset, net 41,000
Unrealized (gain) loss on marketable securities 9,000 (10,000)
Changes in operating asset and liabilities:    
Royalty receivables 343,000
Other current assets 94,000 68,000
Accounts payable (197,000) (350,000)
Income taxes payable 3,036,000
Security deposit 8,000
Operating lease obligations (41,000)
Accrued expenses (1,276,000) (812,000)
NET CASH PROVIDED BY OPERATING ACTIVITIES 19,601,000 107,000
CASH FLOWS FROM INVESTING ACTIVITIES:    
Sales of marketable securities 12,291,000 17,539,000
Purchases of marketable securities (10,597,000) (13,145,000)
Development of patents (86,000) (50,000)
Convertible note investment (1,000,000)
NET CASH PROVIDED BY INVESTING ACTIVITIES 608,000 4,344,000
CASH FLOWS FROM FINANCING ACTIVITIES:    
Cash dividends paid (2,410,000) (2,456,000)
Value of shares delivered to fund withholding taxes (109,000)
Repurchases of common stock, inclusive of commissions (131,000) (252,000)
NET CASH USED IN FINANCING ACTIVITIES: (2,541,000) (2,817,000)
NET INCREASE IN CASH AND CASH EQUIVALENTS 17,668,000 1,634,000
CASH AND CASH EQUIVALENTS, beginning of period 25,505,000 22,587,000
CASH AND CASH EQUIVALENTS, end of period 43,173,000 24,221,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Interest
Income taxes
NON-CASH FINANCING ACTIVITY    
Accrued dividend rights on restricted stock units $ 19,000 $ 31,000

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