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Network-1 Reports First Quarter – GuruFocus.com

NEW CANAAN, Conn. /ACCESSWIRE/May 16, 2022/ Network-1 Technologies, Inc. (NYSE American: NTIP), a company engaged in the acquisition, development, licensing and monetization of intellectual property assets, today announced its financial results for the quarter ended March 31, 2022.

Network-1 recorded no revenue for the three months ended March 31, 2022, compared to revenues of $18,692,000 for the three months ended March 31, 2021. Revenues of $18,692,000 for the three months ended March 31, 2021 stemmed from the resolution of a contractual dispute with Cisco Systems, Inc. regarding the license of Network-1’s remote power supply patent.

Network-1 reported a net loss of $1,312,000 or ($0.05) per basic and diluted share for the three months ended March 31, 2022, compared to net income of $9,451,000 or $0.39 per share. basic share and $0.38 per diluted share for the three months ended March 31, 2022. March 31, 2021. Net loss of $1,312,000 for the three months ended March 31, 2022 was due to no revenue for this period.

As of March 31, 2022, Network-1’s primary sources of liquidity were cash and cash equivalents and marketable securities of $56,535,000 and working capital of $52,635,000. Network-1 believes, based on its current cash position, that it will have sufficient cash to fund its operations for the foreseeable future.

On March 25, 2022, Network-1’s new subsidiary, HFT Solutions, LLC, acquired a patent portfolio covering certain advanced technologies related to high-frequency trading (the “HFT Patent Portfolio”). HFT’s patent portfolio currently includes seven issued US patents and one US patent pending. The portfolio relates to technologies used by companies engaged in high-frequency trading activities. The inventions specifically address technological issues associated with speed and latency and provide critical latency gains in commercial systems where the difference between success and failure can be measured in nanoseconds.

To date, Network-1 has invested a total of $6,000,000 in ILiAD Biotechnologies, LLC, a privately-held clinical-stage biotechnology company dedicated to the prevention of human disease caused by Bordetella pertussis and is currently focused on its proprietary intranasal vaccine BPZE1. As of March 31, 2022, Network‑1 held approximately 9.5% of the outstanding units of ILiAD on a non-fully diluted basis and 7.2% of the outstanding units on a fully diluted basis (after taking into account the exercise or conversion of all outstanding units (options, warrants and convertible bonds).

Since the initiation of Network-1’s share repurchase program through March 31, 2022, Network-1 has repurchased a total of 8,984,134 common shares at a total cost of $17,225,276 (excluding commissions) or a price average per share of $1.92. Network‑1 did not repurchase any shares of its common stock during the three months ended March 31, 2022. As of March 31, 2022, the dollar value of the remaining shares repurchasable under the share repurchase program was $3,930,729.

Network-1 continues to pay dividends in accordance with its dividend policy, which consists of semi-annual cash dividends of $0.05 per share ($0.10 per share per annum) which are expected to be paid in March and September of each year. On February 23, 2022, Network-1’s Board of Directors declared a semi-annual cash dividend of $0.05 per share which was paid on March 24, 2022 to all shareholders of record as of March 9, 2022. The dividend policy of Network-1 is subject to periodic review by the Board of Directors and may be changed at any time based on Network-1’s revenues, financial needs and other factors existing at the time.

ABOUT NETWORK-1 TECHNOLOGIES, INC.

Network-1 Technologies, Inc. is committed to the development, licensing and protection of its intellectual property and proprietary technologies. Network-1 works with inventors and patent holders to help develop and monetize their patented technologies. Network-1 currently holds ninety-six (96) patents covering various telecommunications and data networking technologies as well as technologies relating to document flow operating systems and media content identification. Network-1’s current strategy includes efforts to monetize four patent portfolios (the Cox, M2M/IoT, HFT and Mirror Worlds patent portfolios). Network-1’s strategy is to focus on acquiring and investing in high-quality patents that management believes have the potential to generate significant licensing opportunities, as Network-1 realized. with respect to its Remote Power and Mirror Worlds patent portfolio. Network-1’s remote power patent generated licensing and other revenues of over $187,000,000 from May 2007 through March 31, 2022. Network-1 has generated licensing and other revenues of $47,150,000 through March 31, 2021 with respect to its Mirror Worlds patent portfolio.

This release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements address future events and conditions with respect to Network-1’s business plans. These statements are subject to a number of risk factors and uncertainties, as disclosed in the Network-1’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and its Quarterly Report on Form 10-Q for the quarterly period ending March 31. , 2022 filed with the Securities and Exchange Commission, including, among other things, Network-1’s uncertain revenue stream, uncertainty as to the outcome of ongoing litigation involving Network-1’s Cox patent portfolio, whether Network-1 will succeed in its appeal to the Federal Circuit of the non-infringement district court’s judgment dismissing Network-1’s litigation against Facebook, Network-1’s ability to successfully execute its acquisition or investment in high-quality patents with significant licensing opportunities, Network-1’s ability to generate revenue and profit from its Cox patent portfolio, M2M/IoT patent portfolio, HFT patent portfolio and additional revenues and profits from its Mirror Worlds io patent portfolio as well as a return on its investment in IliAD Biotechnologies, LLC or any other intellectual property that it may acquire or fund in advance Finally, Network-1’s ability to enter into additional license agreements, uncertainty of continued cash dividend payments, Network-1’s ability to enter into strategic relationships with third parties to license or otherwise monetize their intellectual property, the risk in the future that Network-1 will be classified as a personal holding company, which could result in Network-1 issuing a special cash dividend to its shareholders, future economic conditions and technological developments and legislative, regulatory and competitive developments. Except as otherwise required to be disclosed in periodic reports, Network-1 expressly disclaims any future obligation or undertaking to update or revise any forward-looking statements contained herein.

The unaudited condensed consolidated statements of earnings and comprehensive income and the unaudited condensed consolidated balance sheets are attached.

NETWORK-1 TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(UNAUDITED)

Three months completed
March, 31st,

REVENUE $ $ 18,692,000
EXPLOITATION CHARGES :

Revenue costs

5,420,000

Professional fees and related costs

250,000 355,000

general and administrative

517,000 513,000

Amortization of patents

75,000 74,000

Stock-based compensation

55,000 59,000
TOTAL OPERATING EXPENSES 897,000 6,421,000
INCOME (LOSS) FROM OPERATING (897,000 ) 12,271,000

OTHER INCOME (LOSSES):

Interest and dividend income, net

80,000 50,000

Net realized and unrealized loss on marketable securities

(514,000 ) (46,000 )

Total other (loss) income, net

(434,000 ) 4,000
(LOSS) INCOME BEFORE INCOME AND EQUITY TAXES IN NET LOSSES OF THE EQUITY EQUIVALENT METHOD (1,331,000 ) 12,275,000

PROVISION FOR INCOME TAX:

Fluent

890,000

Net deferred taxes

(452,000 ) 1,724,000
Total income tax expenses (benefits) (452,000 ) 2,614,000
(LOSS) EARNINGS BEFORE SHARE OF NET LOSSES EQUIVALENT METHOD EQUIVALENT $ (879,000 ) $ 9,661,000
SHARE OF THE COMPANY’S NET LOSSES EQUITY METHOD $ (433,000 ) $ (210,000 )
NET INCOME (LOSS) $ (1,312,000 ) $ 9,451,000
Net earnings (loss) per share:

Basic

$ (0.05 ) $ 0.39

Diluted

$ (0.05 ) $ 0.38
Weighted average common shares outstanding:

Basic

23 909 115 24,107,879

Diluted

23 909 115 24,616,379
Cash dividends declared per share $ 0.05 $ 0.05
NET INCOME (LOSS) $ (1,312,000 ) $ 9,451,000
OTHER COMPREHENSIVE RESULTS (LOSSES)

Net unrealized holding gain (loss) on bonds and corporate notes
the period, net of tax

(3,000 ) 11,000
OVERALL INCOME (LOSS) $ (1,315,000 ) $ 9,462,000

Condensed Consolidated Balance Sheet (unaudited)

Cash and cash equivalents

$ 42,459,000

Marketable securities, at fair value

$ 14,076,000

Total current assets

$ 56,646,000

Total assets

$ 61,710,000

Total current liabilities

$ 4,011,000

Total long-term liabilities

$ 102,000

Full shareholder equity

$ 57,597,000

THE SOURCE: Network-1 Technologies, Inc.

See the source version on accesswire.com:
https://www.accesswire.com/701591/Network-1-Reports-First-Quarter-2022-Results