Network-1 Technologies, Inc.

Financials

v3.20.1
CONSOLIDATED BALANCE SHEETS - USD ($)
Dec. 31, 2019
Dec. 31, 2018
CURRENT ASSETS:    
Cash and cash equivalents $ 22,587,000 $ 23,763,000
Marketable securities, at fair value 25,730,000 31,228,000
Royalty receivables, net 343,000 444,000
Other current assets 98,000 112,000
Total Current Assets 48,758,000 55,547,000
OTHER ASSETS:    
Deferred tax assets 168,000
Patent, net of accumulated amortization 1,819,000 1,989,000
Equity investment 4,437,000 2,541,000
Operating leases right-of-use asset 41,000
Security deposits 21,000 21,000
Total Other Assets 6,318,000 4,719,000
TOTAL ASSETS 55,076,000 60,266,000
CURRENT LIABILITIES:    
Accounts payable 421,000 67,000
Income taxes payable 50,000 197,000
Accrued contingency fees and related costs 492,000 1,136,000
Accrued payroll 334,000 486,000
Operating lease obligations - current 41,000
Other accrued expenses 231,000 175,000
TOTAL LIABILITIES 1,569,000 2,061,000
STOCKHOLDERS' EQUITY    
Preferred stock, $0.01 par value; authorized 10,000,000 shares; none issued and outstanding at December 31, 2019 and December 31, 2018
Common stock, $0.01 par value; authorized 50,000,000 shares;24,036,071 and 23,735,927 shares issued and outstanding at December 31, 2019 and December 31, 2018, respectively 240,000 237,000
Additional paid-in capital 65,824,000 65,151,000
Accumulated deficit (12,636,000) (7,102,000)
Accumulated other comprehensive income (loss) 79,000 (81,000)
TOTAL STOCKHOLDERS' EQUITY 53,507,000 58,205,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 55,076,000 $ 60,266,000

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v3.20.1
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)    
REVENUE $ 3,037,000 $ 22,106,000
OPERATING EXPENSES:    
Costs of revenue 882,000 8,072,000
Professional fees and related costs 1,490,000 1,635,000
General and administrative 2,167,000 2,255,000
Amortization of patents 285,000 290,000
Stock-based compensation 567,000 687,000
TOTAL OPERATING EXPENSES 5,391,000 12,939,000
OPERATING INCOME (LOSS) (2,354,000) 9,167,000
OTHER INCOME (LOSS):    
Interest and dividend income, net 1,150,000 876,000
Net realized and unrealized gain (loss) on marketable securities 37,000 (29,000)
Total other income, net 1,187,000 847,000
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN NET LOSSES OF EQUITY METHOD INVESTEE (1,167,000) 10,014,000
INCOME TAXES PROVISION:    
Current (147,000) 2,308,000
Deferred taxes, net 168,000
Total income taxes provision 21,000 2,308,000
INCOME (LOSS) BEFORE SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE (1,188,000) 7,706,000
SHARE OF NET (LOSSES) OF EQUITY METHOD INVESTEE (604,000)  
NET INCOME (LOSS) $ (1,792,000) $ 7,706,000
Net Income (Loss) Per Share:    
Basic $ (0.07) $ 0.32
Diluted $ (0.07) $ 0.30
Weighted average common shares outstanding:    
Basic 23,978,774 23,763,785
Diluted 23,978,774 25,354,978
Cash dividends declared per share $ 0.10 $ 0.10
NET INCOME (LOSS) $ (1,792,000) $ 7,706,000
OTHER COMPREHENSIVE INCOME (LOSS):    
Net unrealized holding gain (loss) on corporate bonds and notes arising during the year, net of tax 160,000 (39,000)
COMPREHENSIVE INCOME (LOSS) $ (1,632,000) $ 7,667,000

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v3.20.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income (loss) $ (1,792,000) $ 7,706,000
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Amortization of Patents 285,000 290,000
Stock -based compensation 567,000 687,000
Loss from equity investment 604,000  
Deferred tax expense 168,000
Amortization of right of use asset, net 127,000  
Unrealized gain on marketable securities (5,000)  
Changes in operating assets and liabilities:    
Royalty receivables 101,000 131,000
Prepaid Taxes 125,000
Other current assets 14,000 (31,000)
Accounts payable 351,000 (177,000)
Income taxes payable (147,000) 197,000
Operating lease obligations (126,000)  
Accrued expense (752,000) (835,000)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (605,000) 8,093,000
CASH FLOWS FROM INVESTING ACTIVITIES:    
Sales of marketable securities 33,888,000 19,897,000
Purchases of marketable securities (28,225,000) (40,369,000)
Development of patents (115,000) (110,000)
Equity investment (2,500,000) (2,541,000)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 3,048,000 (23,114,000)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Cash dividends paid (2,416,000) (2,444,000)
Value of shares delivered to fund withholding taxes (538,000) (545,000)
Repurchases of common stock, inclusive of commissions (772,000) (1,608,000)
Proceeds from exercises of stock options 107,000 30,000
NET CASH USED IN FINANCING ACTIVITIES (3,619,000) (4,567,000)
NET DECREASE IN CASH AND CASH EQUIVALENTS (1,176,000) (19,588,000)
CASH AND CASH EQUIVALENTS, beginning of year 23,763,000 43,351,000
CASH AND CASH EQUIVALENTS, end of year 22,587,000 23,763,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Cash paid during the years for: Interest
Cash paid during the years for: Income taxes 1,986,000
NON-CASH FINANCING ACTIVITY    
Accrued dividend rights on restricted stock units $ 48,000 $ 63,000

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