Network-1 Technologies, Inc.

Financials

v3.19.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Mar. 31, 2019
Dec. 31, 2018
CURRENT ASSETS:    
Cash and cash equivalents $ 21,650,000 $ 23,763,000
Marketable securities, at fair value 30,837,000 31,228,000
Royalty receivables, net 774,000 444,000
Other current assets 83,000 112,000
Total Current Assets 53,344,000 55,547,000
OTHER ASSETS:    
Deferred tax assets 233,000 168,000
Patents, net of accumulated amortization 1,959,000 1,989,000
Equity investment 2,445,000 2,541,000
Operating leases right-of-use asset 95,000
Security deposits 21,000 21,000
Total Other Assets 4,753,000 4,719,000
TOTAL ASSETS 58,097,000 60,266,000
CURRENT LIABILITIES:    
Accounts payable 395,000 67,000
Income taxes payable 197,000 197,000
Accrued contingency fees and related costs 198,000 1,136,000
Accrued payroll 68,000 486,000
Operating lease obligations – current 88,000
Other accrued expenses 140,000 175,000
TOTAL CURRENT LIABILITIES 1,086,000 2,061,000
Operating lease obligations 8,000
TOTAL LIABILITIES 1,094,000 2,061,000
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY    
Preferred stock, $0.01 par value, authorized 10,000,000 shares; none issued and outstanding at March 31, 2019 and December 31, 2018
Common stock, $0.01 par value; authorized 50,000,000 shares; 23,782,761 and 23,735,927 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively 238,000 237,000
Additional paid-in capital 65,294,000 65,151,000
Accumulated deficit (8,558,000) (7,102,000)
Accumulated other comprehensive income (loss) 29,000 (81,000)
TOTAL STOCKHOLDERS' EQUITY 57,003,000 58,205,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 58,097,000 $ 60,266,000

Source

v3.19.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($)
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Condensed Consolidated Statements Of Operations And Comprehensive Income Loss    
REVENUE $ 606,000 $ 19,463,000
OPERATING EXPENSES:    
Costs of revenue 146,000 7,259,000
Professional fees and related costs 307,000 518,000
General and administrative 488,000 507,000
Amortization of patents 54,000 70,000
Stock-based compensation 144,000 226,000
TOTAL OPERATING EXPENSES 1,139,000 8,580,000
OPERATING INCOME(LOSS) (533,000) 10,883,000
OTHER INCOME:    
Interest income, net 301,000 143,000
Net realized and unrealized gain from investments 23,000
Total other income 324,000 143,000
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN NET LOSSES OF EQUITY METHOD INVESTEE (209,000) 11,026,000
INCOME TAXES (BENEFIT):    
Current 2,425,000
Deferred taxes, net (65,000)
Total income taxes (benefit) (65,000) 2,425,000
INCOME (LOSS) BEFORE EQUITY IN NET LOSS OF EQUITY METHOD INVESTEE: (144,000) 8,601,000
SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE (96,000)
NET INCOME (LOSS) $ (240,000) $ 8,601,000
Net Income (LOSS) Per Share    
Basic $ (0.01) $ 0.36
Diluted $ (0.01) $ 0.34
Weighted average common shares outstanding:    
Basic 23,745,848 23,807,014
Diluted 23,745,848 25,611,497
Cash dividends declared per share $ 0.05 $ 0.05
NET INCOME (LOSS) $ (240,000) $ 8,601,000
OTHER COMPREHENSIVE INOME (LOSS)    
Net unrealized holding gain (loss) on corporate bonds and notes arising during the period, net of tax 110,000 (25,000)
COMPREHENSIVE INCOME (LOSS) $ (130,000) $ 8,576,000

Source

v3.19.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net Income $ (240,000) $ 8,601,000
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Amortization of patents 54,000 70,000
Stock-based compensation 144,000 226,000
Loss from equity investment 96,000
Unrealized gains on marketable securities (14,000)
Deferred tax benefit (65,000)
Changes in operating assets and liabilities:    
Royalty receivables (330,000) 151,000
Prepaid taxes 125,000
Other current assets 29,000 22,000
Operating lease right-of-use assets 33,000
Accounts payable 328,000 185,000
Income taxes payable 2,319,000
Operating lease obligations (31,000)
Accrued expenses (1,419,000) 5,223,000
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (1,415,000) 16,922,000
CASH FLOWS FROM INVESTING ACTIVITIES:    
Sales of marketable securities 10,586,000
Purchases of marketable securities (10,068,000) (9,761,000)
Development of patents (24,000) (27,000)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 494,000 (9,788,000)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Cash dividends paid (1,191,000) (1,188,000)
Repurchases of common stock, net of commissions (1,000) (399,000)
Proceeds from exercise of options and warrants 30,000
NET CASH USED IN FINANCING ACTIVITIES (1,192,000) (1,557,000)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (2,113,000) 5,557,000
CASH AND CASH EQUIVALENTS, beginning of period 23,763,000 51,101,000
CASH AND CASH EQUIVALENTS, end of period 21,650,000 56,678,000
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 $ 27,000 $ 41,000

Source