Network-1 Technologies, Inc.

Financials

v3.21.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Mar. 31, 2021
Dec. 31, 2020
CURRENT ASSETS:    
Cash and cash equivalents $ 24,122,000 $ 25,505,000
Marketable securities, at fair value 17,149,000 19,366,000
Royalty receivables 18,692,000 0
Other current assets 88,000 120,000
TOTAL CURRENT ASSETS 60,051,000 44,991,000
OTHER ASSETS:    
Deferred tax assets, net 0 954,000
Patents, net of accumulated amortization 1,512,000 1,578,000
Equity investment 3,440,000 3,650,000
Convertible note investment 1,000,000 0
Security deposits 13,000 21,000
Total Other Assets 5,965,000 6,203,000
TOTAL ASSETS 66,016,000 51,194,000
CURRENT LIABILITIES:    
Income taxes payable 890,000 0
Accounts payable 363,000 597,000
Accrued contingency fees and related costs 5,422,000 932,000
Accrued payroll 941,000 277,000
Other accrued expenses 164,000 226,000
Total Current Liabilities 7,780,000 2,032,000
LONG TERM LIABILITIES:    
Deferred tax liability 769,000 0
TOTAL LIABILITIES 8,549,000 2,032,000
COMMITMENTS AND CONTINGENCIES 0 0
STOCKHOLDERS' EQUITY    
Preferred stock, $0.01 par value, authorized 10,000,000 shares; none issued and outstanding at March 31, 2021 and December 31, 2020 0 0
Common stock, $0.01 par value; authorized 50,000,000 shares; 24,117,129 and 24,105,879 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively 241,000 241,000
Additional paid-in capital 66,183,000 66,124,000
Accumulated deficit (8,958,000) (17,193,000)
Accumulated other comprehensive income (loss) 1,000 (10,000)
TOTAL STOCKHOLDERS' EQUITY 57,467,000 49,162,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 66,016,000 $ 51,194,000

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v3.21.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($)
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)    
REVENUE $ 18,692,000 $ 161,000
OPERATING EXPENSES:    
Costs of revenue 5,420,000 32,000
Professional fees and related costs 355,000 399,000
General and administrative 513,000 486,000
Amortization of patents 74,000 72,000
Stock-based compensation 59,000 72,000
TOTAL OPERATING EXPENSES 6,421,000 1,061,000
OPERATING INCOME (LOSS) 12,271,000 (900,000)
OTHER INCOME (LOSS):    
Interest and dividend income, net 50,000 178,000
Net realized and unrealized gain (loss) on marketable securities (46,000) (322,000)
Total other income (loss), net 4,000 (144,000)
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN NET LOSSES OF EQUITY METHOD INVESTEE 12,275,000 (1,044,000)
INCOME TAXES PROVISION:    
Current 890,000 0
Deferred taxes, net 1,724,000 0
Total income taxes provision 2,614,000 0
INCOME (LOSS) BEFORE SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE 9,661,000 (1,044,000)
SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE (210,000) (293,000)
NET INCOME (LOSS) $ 9,451,000 $ (1,337,000)
Net Income (Loss) Per Share    
Basic $ 0.39 $ (0.06)
Diluted $ 0.38 $ (0.06)
Weighted average common shares outstanding:    
Basic 24,107,879 24,029,513
Diluted 24,616,379 24,029,513
Cash dividends declared per share $ 0.05 $ 0.05
OTHER COMPREHENSIVE INCOME (LOSS)    
Net unrealized holding gain (loss) on corporate bonds and notes during the period, net of tax $ 11,000 $ (163,000)
Amounts reclassified from accumulated other comprehensive income (loss) 0 (20,000)
Net other comprehensive income (loss) 11,000 (183,000)
COMPREHENSIVE INCOME (LOSS) $ 9,462,000 $ (1,520,000)

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v3.21.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income (loss) $ 9,451,000 $ (1,337,000)
Adjustments to reconcile income (loss) to net cash used in operating activities:    
Amortization of patents 74,000 72,000
Stock-based compensation 59,000 72,000
Loss from equity method investment 210,000 293,000
Amortization of right of use asset, net 0 32,000
Unrealized loss on marketable securities 23,000 220,000
Deferred tax expense 1,724,000 0
Changes in operating asset and liabilities:    
Royalty receivables (18,692,000) 199,000
Other current assets 32,000 23,000
Income taxes payable 890,000 0
Security deposit 8,000 0
Accounts payable (232,000) (207,000)
Operating lease obligations 0 (33,000)
Accrued expenses 5,078,000 (872,000)
NET CASH USED IN OPERATING ACTIVITIES (1,375,000) (1,538,000)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Sales of marketable securities 4,499,000 10,919,000
Purchases of marketable securities (2,293,000) (4,001,000)
Development of patents (8,000) (8,000)
Convertible note investment (1,000,000) 0
NET CASH PROVIDED BY INVESTING ACTIVITIES 1,198,000 6,910,000
CASH FLOWS FROM FINANCING ACTIVITIES:    
Cash dividends paid (1,206,000) (1,211,000)
Repurchases of common stock, inclusive of commissions 0 (154,000)
NET CASH USED IN FINANCING ACTIVITIES (1,206,000) (1,365,000)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,383,000) 4,007,000
CASH AND CASH EQUIVALENTS, beginning of period 25,505,000 22,587,000
CASH AND CASH EQUIVALENTS, end of period 24,122,000 26,594,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Cash paid for Interest 0 0
Cash paid for Income taxes 0 0
NON-CASH FINANCING ACTIVITY    
Accrued dividend rights on restricted stock units $ 10,000 $ 19,000

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