Network-1 Technologies, Inc.

Financials

v3.23.2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
Jun. 30, 2023
Dec. 31, 2022
CURRENT ASSETS:    
Cash and cash equivalents $ 16,615,000 $ 13,448,000
Marketable securities, at fair value 29,755,000 34,991,000
Prepaid taxes 177,000 177,000
Other current assets 88,000 348,000
  TOTAL CURRENT ASSETS 46,635,000 48,964,000
  OTHER ASSETS:    
Patents, net of accumulated amortization 1,427,000 1,592,000
Equity investment 6,187,000 7,252,000
Operating leases right-of-use asset 129,000 161,000
Security deposit 13,000
  Total Other Assets 7,756,000 9,005,000
  TOTAL ASSETS 54,391,000 57,969,000
CURRENT LIABILITIES:    
Accounts payable 375,000 507,000
Income taxes payable 115,000 115,000
Accrued contingency fees and related costs 66,000
Accrued payroll 15,000 317,000
Other accrued expenses 101,000 587,000
Operating lease obligation, current 79,000 79,000
  Total Current Liabilities 751,000 1,605,000
  LONG TERM LIABILITIES:    
Deferred tax liability 914,000 1,161,000
Operating lease obligation, non-current 60,000 94,000
  TOTAL LIABILITIES 1,725,000 2,860,000
  STOCKHOLDERS’ EQUITY    
Preferred stock, $0.01 par value, authorized 10,000,000 shares; none issued and outstanding at June 30, 2023 and December 31, 2022
Common stock, $0.01 par value; authorized 50,000,000 shares; 23,811,260 and 23,863,639 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively 238,000 239,000
Additional paid-in capital 67,205,000 66,939,000
Accumulated deficit (14,763,000) (12,055,000)
Accumulated other comprehensive loss (14,000) (14,000)
  TOTAL STOCKHOLDERS’ EQUITY 52,666,000 55,109,000
  TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 54,391,000 $ 57,969,000

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v3.23.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Income Statement [Abstract]        
REVENUE $ 283,000 $ 820,000
OPERATING EXPENSES:        
Costs of revenue 81,000 232,000
Professional fees and related costs 59,000 157,000 357,000 407,000
General and administrative 610,000 601,000 1,391,000 1,173,000
Amortization of patents 82,000 76,000 165,000 151,000
TOTAL OPERATING EXPENSES 832,000 834,000 2,145,000 1,731,000
OPERATING LOSS (549,000) (834,000) (1,325,000) (1,731,000)
  OTHER INCOME (LOSS):        
Interest and dividend income, net 445,000 131,000 755,000 211,000
Net realized and unrealized gain (loss) on marketable securities (75,000) (576,000) 289,000 (1,090,000)
Total other (loss) income, net 370,000 (445,000) 1,044,000 (879,000)
  LOSS BEFORE INCOME TAXES AND SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE (179,000) (1,279,000) (281,000) (2,610,000)
INCOME TAXES PROVISION:        
Current
Deferred taxes, net (94,000) (102,000) (247,000) (554,000)
Total income tax benefit (94,000) (102,000) (247,000) (554,000)
LOSS BEFORE SHARE OF NET LOSS OF EQUITY METHOD INVESTEE: (85,000) (1,177,000) (34,000) (2,056,000)
SHARE OF NET LOSS OF EQUITY METHOD INVESTEE (391,000) (355,000) (1,065,000) (788,000)
NET LOSS $ (476,000) $ (1,532,000) $ (1,099,000) $ (2,844,000)
Net loss per share        
Basic $ (0.02) $ (0.06) $ (0.05) $ (0.12)
Diluted $ (0.02) $ (0.06) $ (0.05) $ (0.12)
Weighted average common shares outstanding:        
Basic 23,803,567 23,854,438 23,865,141 23,864,053
Diluted 23,803,567 23,854,438 23,865,141 23,864,053
Cash dividends declared per share $ 0.05 $ 0.05
OTHER COMPREHENSIVE LOSS Net unrealized holding loss on corporate bonds and notes during the period, net of tax $ (1,000) $ (4,000)
COMPREHENSIVE LOSS $ (476,000) $ (1,533,000) $ (1,099,000) $ (2,848,000)

Source

v3.23.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (1,099,000) $ (2,844,000)
Adjustments to reconcile net loss to net cash    
Amortization of patents 165,000 151,000
Stock-based compensation 267,000 233,000
Loss allocated from equity method investment 1,065,000 788,000
Unrealized (gain) loss on marketable securities (90,000) 808,000
Deferred tax benefit (247,000) (554,000)
Amortization of operating leases – right of use assets 32,000 10,000
Changes in operating assets and liabilities:    
Other current assets 260,000 (89,000)
Security deposit (13,000)
Accounts payable (132,000) 68,000
Income taxes payable (2,833,000)
Operating lease obligations (34,000) (10,000)
Accrued expenses (727,000) (336,000)
  NET CASH USED IN OPERATING ACTIVITIES (553,000) (4,608,000)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Sales of marketable securities 36,106,000 4,004,000
Purchases of marketable securities (30,780,000) (16,283,000)
Development of patents (524,000)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 5,326,000 (12,803,000)
  CASH FLOWS FROM FINANCING ACTIVITIES:    
Cash dividends paid (1,191,000) (1,195,000)
Value of shares delivered to fund withholding taxes (83,000) (112,000)
Repurchases of common stock, inclusive of commissions (332,000) (247,000)
NET CASH USED IN FINANCING ACTIVITIES: (1,606,000) (1,554,000)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3,167,000 (18,965,000)
CASH AND CASH EQUIVALENTS, beginning of period 13,448,000 44,497,000
CASH AND CASH EQUIVALENTS, end of period 16,615,000 25,532,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Interest
Income taxes 3,000,000
NON-CASH FINANCING ACTIVITIES    
Accrued dividend rights on restricted stock units 8,000
Right of use asset obtained in exchange for lease liability $ 204,000

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