Network-1 Technologies, Inc.

Financials

v3.24.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
Dec. 31, 2023
Dec. 31, 2022
CURRENT ASSETS:    
Cash and cash equivalents $ 16,896,000 $ 13,448,000
Marketable securities, at fair value 28,571,000 34,991,000
Prepaid taxes 177,000
Other current assets 206,000 348,000
Total Current Assets 45,673,000 48,964,000
OTHER ASSETS:    
Patents, net of accumulated amortization 1,326,000 1,592,000
Equity investment 5,249,000 7,252,000
Operating leases right of use asset 16,000 161,000
Security deposits 13,000
Total Other Assets 6,604,000 9,005,000
TOTAL ASSETS 52,277,000 57,969,000
CURRENT LIABILITIES:    
Accounts payable 125,000 507,000
Income taxes payable 115,000
Accrued payroll 378,000 317,000
Other accrued expenses 297,000 587,000
Operating lease obligations, current 23,000 79,000
Total Current Liabilities 823,000 1,605,000
LONG TERM LIABILITIES:    
Deferred tax liability 762,000 1,161,000
Operating lease obligation, non-current 94,000
TOTAL LIABILITIES 1,585,000 2,860,000
STOCKHOLDERS' EQUITY    
Preferred stock, $0.01 par value; authorized 10,000,000 shares; none issued and outstanding at December 31, 2023 and December 31, 2022
Common stock, $0.01 par value; authorized 50,000,000 shares; 23,553,908 and 23,863,639 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively 235,000 239,000
Additional paid-in capital 67,446,000 66,939,000
Accumulated deficit (16,989,000) (12,055,000)
Accumulated other comprehensive loss (14,000)
TOTAL STOCKHOLDERS’ EQUITY 50,692,000 55,109,000
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 52,277,000 $ 57,969,000

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v3.24.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($)
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Income Statement [Abstract]    
REVENUE $ 2,601,000
OPERATING EXPENSES:    
Costs of revenue 874,000
Professional fees and related costs 807,000 809,000
General and administrative 2,889,000 2,778,000
Amortization of patents 266,000 316,000
TOTAL OPERATING EXPENSES 4,836,000 3,903,000
OPERATING LOSS (2,235,000) (3,903,000)
OTHER INCOME    
Interest and dividend income, net 1,868,000 1,020,000
Gain on conversion of note 271,000
Gain on equity method investment 3,883,000
Net realized and unrealized gain (loss) on marketable securities 525,000 (1,351,000)
Total other income, net 2,393,000 3,823,000
INCOME (LOSS) BEFORE INCOME TAXES AND SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE 158,000 (80,000)
INCOME TAXES PROVISION:    
Current 11,000
Deferred taxes, net (399,000) 607,000
Total income taxes (benefit) expense (388,000) 607,000
INCOME (LOSS) BEFORE SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE: 546,000 (687,000)
SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE (2,003,000) (1,639,000)
NET LOSS $ (1,457,000) $ (2,326,000)
Basic $ (0.06) $ (0.10)
Diluted $ (0.06) $ (0.10)
Weighted average common shares outstanding:    
Basic 23,791,287 23,825,917
Diluted 23,791,287 23,825,917
Cash dividends declared per share $ 0.10 $ 0.10
OTHER COMPREHENSIVE INCOME (LOSS)    
Net unrealized holding gain (loss) on corporate bonds and notes arising during the year, net of tax $ 14,000 $ (2,000)
COMPREHENSIVE LOSS $ (1,443,000) $ (2,328,000)

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v3.24.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (1,457,000) $ (2,326,000)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Amortization of patents 266,000 316,000
Stock-based compensation 508,000 585,000
Loss allocated from equity investment 2,003,000 1,639,000
Deferred tax (benefit) expense (399,000) 607,000
Amortization of right of use asset, net 65,000 43,000
Gain on equity method investment (3,883,000)
Accrued interest on convertible note (86,000)
Gain on conversion of note (271,000)
Unrealized (gain) loss on marketable securities (103,000) 880,000
Changes in operating assets and liabilities:    
Other current assets 142,000 (208,000)
Prepaid taxes 177,000 (167,000)
Accounts payable (382,000) 48,000
Income taxes payable (115,000) (2,837,000)
Security deposit (13,000) 13,000
Operating lease obligations (70,000) (31,000)
Accrued expenses (291,000) 242,000
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 331,000 (5,436,000)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Sales of marketable securities 53,521,000 13,156,000
Purchases of marketable securities (46,984,000) (33,903,000)
Development of patents (524,000)
Equity Investment (1,000,000)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 6,537,000 (22,271,000)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Cash dividends paid (2,371,000) (2,453,000)
Value of shares delivered to fund withholding taxes (83,000) (355,000)
Repurchases of common stock, inclusive of commissions (966,000) (534,000)
NET CASH USED IN FINANCING ACTIVITIES (3,420,000) (3,342,000)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS 3,448,000 (31,049,000)
CASH AND CASH EQUIVALENTS, beginning of year 13,448,000 44,497,000
CASH AND CASH EQUIVALENTS, end of year 16,896,000 13,448,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Interest
Income taxes 65,000 3,004,000
NON-CASH FINANCING ACTIVITY    
Accrued dividend rights on restricted stock units 65,000 37,000
Modification of right-of-use asset 80,000 204,000
Conversion of note receivable $ 1,086,000

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