Network-1 Technologies, Inc.

Financials

v3.20.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Jun. 30, 2020
Dec. 31, 2019
CURRENT ASSETS:    
Cash and cash equivalents $ 20,972,000 $ 22,587,000
Marketable securities, at fair value 23,763,000 25,730,000
Royalty receivables, net 128,000 343,000
Other current assets 51,000 98,000
TOTAL CURRENT ASSETS 44,914,000 48,758,000
OTHER ASSETS:    
Patents, net of accumulated amortization 1,714,000 1,819,000
Equity investment 3,938,000 4,437,000
Operating leases right-of-use asset 0 41,000
Security deposits 21,000 21,000
Total Other Assets 5,673,000 6,318,000
TOTAL ASSETS 50,587,000 55,076,000
CURRENT LIABILITIES:    
Accounts payable 38,000 421,000
Accrued contingency fees and related costs 45,000 492,000
Accrued payroll 16,000 334,000
Operating lease obligations - current 0 41,000
Other accrued expenses 226,000 281,000
TOTAL CURRENT LIABILITIES 325,000 1,569,000
TOTAL LIABILITIES 325,000 1,569,000
STOCKHOLDERS? EQUITY    
Preferred stock, $0.01 par value, authorized 10,000,000 shares; none issued and outstanding at June 30,2020 and December 31,2019 0 0
Common stock, $0.01 par value; authorized 50,000,000 shares; 23,947,389 and 24,036,071 shares issued and outstanding at June 30,2020 and December 31,2019 respectively 239,000 240,000
Additional paid-in capital 65,981,000 65,824,000
Accumulated deficit (16,029,000) (12,636,000)
Accumulated other comprehensive income 71,000 79,000
TOTAL STOCKHOLDERS' EQUITY 50,262,000 53,507,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 50,587,000 $ 55,076,000

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v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)        
REVENUE $ 55,000 $ 599,000 $ 216,000 $ 1,205,000
OPERATING EXPENSES:        
Costs of revenue 20,000 175,000 52,000 321,000
Professional fees and related costs 124,000 238,000 523,000 545,000
General and administrative 459,000 488,000 945,000 976,000
Amortization of patents 72,000 87,000 144,000 141,000
Stock-based compensation 85,000 127,000 157,000 271,000
TOTAL OPERATING EXPENSES 760,000 1,115,000 1,821,000 2,254,000
OPERATING LOSS (705,000) (516,000) (1,605,000) (1,049,000)
OTHER INCOME (LOSS):        
Interest and dividend income, net 120,000 301,000 298,000 602,000
Net realized and unrealized gain (loss) on marketable securities 206,000 22,000 (116,000) 45,000
Total other income, net 326,000 323,000 182,000 647,000
LOSS BEFORE INCOME TAXES AND EQUITY IN NET LOSSES OF EQUITY METHOD INVESTEE (379,000) (193,000) (1,423,000) (402,000)
INCOME TAXES PROVISION (BENEFIT):        
Current (142,000) 0 (382,000) 0
Deferred taxes, net 142,000 (38,000) 0 (103,000)
Total income taxes (benefit) 0 (38,000) 0 (103,000)
LOSS BEFORE SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE: (379,000) (155,000) (1,423,000) (299,000)
SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE (205,000) (53,000) (498,000) (149,000)
NET LOSS $ (584,000) $ (208,000) $ (1,921,000) $ (448,000)
Net loss per share        
EPS, Basic $ (0.02) $ (0.01) $ (0.08) $ (0.02)
EPS, Diluted $ (0.02) $ (0.01) $ (0.08) $ (0.02)
Weighted average common shares outstanding:        
Basic 23,945,916 23,917,563 23,987,715 23,830,367
Diluted 23,945,916 23,917,563 23,987,715 23,830,367
Cash dividends declared per share $ 0 $ 0 $ 0.05 $ 0.05
NET LOSS $ (584,000) $ (208,000) $ (1,921,000) $ (448,000)
OTHER COMPREHENSIVE LOSS        
Net unrealized holding gain (loss) on corporate bonds and notes arising during the period, net of tax 175,000 53,000 (8,000) 163,000
COMPREHENSIVE LOSS $ (409,000) $ (155,000) $ (1,929,000) $ (285,000)

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v3.20.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (1,921,000) $ (448,000)
used in operating activities:    
Amortization of patents 144,000 141,000
Stock-based compensation 157,000 271,000
Loss from equity investment 498,000 149,000
Deferred tax benefit 0 (103,000)
Amortization of right of use asset, net 41,000 67,000
Unrealized (gain) on marketable securities (1,000) (45,000)
Changes in operating asset and liabilities:    
Royalty receivables 215,000 (197,000)
Other current assets 48,000 54,000
Accounts payable (384,000) 133,000
Operating lease obligations (41,000) (67,000)
Accrued expenses (829,000) (1,297,000)
NET CASH USED IN OPERATING ACTIVITIES (2,073,000) (1,342,000)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Sales of marketable securities 13,169,000 21,611,000
Purchases of marketable securities (11,209,000) (22,291,000)
Development of patents (39,000) (35,000)
Equity investment 0 (1,000,000)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 1,921,000 (1,715,000)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Cash dividends paid (1,211,000) (1,191,000)
Value of shares delivered to fund withholding taxes 0 (366,000)
Repurchases of common stock, inclusive of commissions (252,000) (333,000)
Proceeds from exercise of options 0 107,000
NET CASH USED IN FINANCING ACTIVITIES (1,463,000) (1,783,000)
NET DECREASE IN CASH AND CASH EQUIVALENTS (1,615,000) (4,840,000)
CASH AND CASH EQUIVALENTS, beginning of period 22,587,000 23,763,000
CASH AND CASH EQUIVALENTS, end of period 20,972,000 18,923,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Income taxes 0 0
NON-CASH FINANCING ACTIVITY    
Accrued dividend rights on restricted stock units $ 19,000 $ 27,000

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