EXHIBIT 99.1 FOR IMMEDIATE RELEASE Corey M. Horowitz, Chairman and CEO Network-1 Technologies, Inc. (203) 920-1055 (917) 692-0000 NETWORK-1 REPORTS THIRD QUARTER 2025 RESULTS NEW CANAAN, CT - November 6, 2025 - Network-1 Technologies, Inc. (NYSE American: NTIP), a company specializing in the acquisition, development, licensing, and monetization of its intellectual property assets, today announced financial results for the quarter ended September 30, 2025. Network-1 reported no revenue for the three month pe ...

Financial Position - As of September 30, 2025, the company reported cash and cash equivalents and marketable securities totaling $37,097,000, with working capital of $36,856,000[95]. - Working capital decreased by $3,210,000 to $36,856,000 as of September 30, 2025, compared to $40,066,000 at December 31, 2024, primarily due to dividend payments and cash used in operating activities[128]. - The company does not have any long-term debt, capital lease obligations, purchase obligations, or other long-term liabilities[134]. - The company maintains cash in money market funds, government securities, certificates of deposit, and short-term fixed income securities, minimizing exposure to interest rate risk[132]. Revenue and Income - The company generated licensing revenue exceeding $188,000,000 from the Remote Power Patent from May 2007 through February 2025, but has ceased asserting this patent[97]. - Revenue for the nine months ended September 30, 2025, was $150,000, compared to $100,000 for the same period in 2024, all from litigation settlements involving the Remote Power Patent[119]. - The net loss for the nine months ended September 30, 2025, was $1,386,000 or $0.06 per share, an improvement from a net loss of $1,894,000 or $0.08 per share for the same period in 2024[126]. Expenses - Operating expenses for the nine months ended September 30, 2025, were $2,315,000, a decrease of $223,000 from $2,538,000 in the same period in 2024[120]. - The company recognized $1,095,000 of net losses related to its equity share of ILiAD for the nine months ended September 30, 2025, compared to $1,613,000 for the same period in 2024[125]. Cash Flow - Net cash used in operating activities decreased by $79,000 to $606,000 for the nine months ended September 30, 2025, from $685,000 for the same period in 2024[129]. - Net cash used in investing activities increased by $3,855,000 to $2,241,000 for the nine months ended September 30, 2025, primarily due to decreased sales of marketable securities of $3,390,000[130]. - Net cash used in financing activities decreased by $920,000 to $2,590,000 for the nine months ended September 30, 2025, primarily due to a decrease of $796,000 in repurchases of common stock[131]. Investments and Risks - The company has invested $7,000,000 in ILiAD, a clinical stage biotechnology company, which involves significant risk and uncertainty[96]. - The company is currently involved in multiple patent infringement litigations, including cases against Optiver and Samsung, which may impact future revenue[99][100]. Strategic Goals - The company aims to continue its licensing efforts and acquire additional intellectual property assets to enhance monetization opportunities[105]. Compliance and Controls - The company’s financial statements are prepared in accordance with GAAP, requiring management to make estimates that could materially affect financial condition or results of operations[135]. - There were no changes in internal control over financial reporting that materially affected the company during the fiscal quarter ended September 30, 2025[140]. - The company does not have any off-balance sheet arrangements[133].

NEW CANAAN, CT / ACCESS Newswire / November 6, 2025 / Network-1 Technologies, Inc. (NYSE American:NTIP), a company specializing in the acquisition, development, licensing, and monetization of its intellectual property assets, today announced financial results for the quarter ended September 30, 2025. Network-1 reported no revenue for the three month periods ended September 30, 2025 and 2024. ...

Core Viewpoint - Network-1 Technologies, Inc. has initiated patent litigation against Optiver US LLC and Optiver Trading US LLC for infringement of specific U.S. patents [1] Company Summary - Network-1 Technologies, Inc. is pursuing legal action through its subsidiary HFT Solutions, LLC [1] - The litigation is taking place in the United States District Court for the Western District of Texas [1] Patent Details - The patents in question include U.S. Patent No. 10,931,286 among others [1]

Financial Performance [Q2 2025 Financial Results](index=1&type=section&id=Q2%202025%20Financial%20Results) Network-1 reported no revenue for Q2 2025, a decrease from $100,000 in Q2 2024, while net loss narrowed to $463,000, or $0.02 per share, primarily due to a reduced share of loss from its equity investee Q2 Financial Performance Comparison (2025 vs. 2024) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Revenue** | $0 | $100,000 | | **Net Loss** | $(463,000) | $(658,000) | | **Net Loss per Share (Basic & Diluted)** | $(0.02) | $(0.03) | - The net loss for Q2 2025 included a **$279,000** share of the net loss from its equity investee, ILiAD Biotechnologies, which was substantially lower than the **$677,000** share of loss recorded in Q2 2024[3](index=3&type=chunk) [H1 2025 Financial Results](index=1&type=section&id=H1%202025%20Financial%20Results) For H1 2025, Network-1's revenue increased to $150,000 from $100,000 in H1 2024, entirely from Remote Power Patent litigation settlements, while net loss significantly reduced to $826,000, or $0.04 per share H1 Financial Performance Comparison (2025 vs. 2024) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Revenue** | $150,000 | $100,000 | | **Net Loss** | $(826,000) | $(1,578,000) | | **Net Loss per Share (Basic & Diluted)** | $(0.04) | $(0.07) | - The reduced net loss in H1 2025 was heavily influenced by a lower share of loss from its equity investee, amounting to **$741,000** compared to **$1,305,000** in H1 2024[4](index=4&type=chunk) - All revenue in both 2025 and 2024 periods was derived from litigation settlements concerning the company's Remote Power Patent[2](index=2&type=chunk) [Financial Position](index=1&type=section&id=Financial%20Position) As of June 30, 2025, Network-1 maintained a solid balance sheet with **$38.485 million** in cash, cash equivalents, and marketable securities, and **$38.288 million** in working capital, deemed sufficient for future operations Key Balance Sheet Items (as of June 30, 2025) | Metric | Amount | | :--- | :--- | | **Cash and cash equivalents** | $13,424,000 | | **Marketable securities** | $25,061,000 | | **Total Current Assets** | $38,665,000 | | **Working Capital** | $38,288,000 | - Total assets decreased from **$45.4 million** at year-end 2024 to **$42.8 million** as of June 30, 2025, while total liabilities were reduced from **$1.1 million** to **$0.565 million** over the same period[17](index=17&type=chunk) Business and Operational Highlights [Patent Litigation and Portfolio Development](index=1&type=section&id=Patent%20Litigation%20and%20Portfolio%20Development) During the quarter, Network-1 actively pursued intellectual property monetization and expansion, initiating patent infringement litigation against Samsung and acquiring a new smart home technology patent portfolio - On June 27, 2025, Network-1 filed a patent infringement lawsuit against Samsung in the Eastern District of Texas, alleging infringement of its M2M/IoT patents by Samsung's mobile devices supporting eSIM and 5G technologies[5](index=5&type=chunk) - On March 31, 2025, the company acquired the "Smart Home Patent Portfolio," including **8 issued U.S. patents** and numerous pending U.S. and international applications related to the interoperability of smart home IoT devices[6](index=6&type=chunk) [Capital Allocation](index=1&type=section&id=Capital%20Allocation) Network-1 continued its capital return program for shareholders through share repurchases and dividends, with the Board of Directors authorizing an extension and increase of the share repurchase program and maintaining its semi-annual dividend policy - The Board of Directors extended and increased the share repurchase program, authorizing the repurchase of up to **$5,000,000** of common stock over the next 24 months[7](index=7&type=chunk) Share Repurchase Activity (H1 2025) | Period | Shares Repurchased | Cost (exclusive of commissions) | Average Price Per Share | | :--- | :--- | :--- | :--- | | **Q2 2025** | 44,811 | $55,337 | $1.23 | | **H1 2025** | 151,473 | $202,194 | $1.33 | - The company maintained its dividend policy of **$0.05 per share** semi-annually, with a dividend paid on March 28, 2025[9](index=9&type=chunk) Financial Statements [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The unaudited statement of operations details the company's revenues, operating expenses, other income, and net loss for the three and six-month periods ending June 30, 2025, compared to 2024, driven by operating expenses and equity method investee losses, partially offset by interest and dividend income Condensed Consolidated Statements of Operations Highlights | Metric | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | **Revenue** | $0 | $150,000 | | **Total Operating Expenses** | $720,000 | $1,515,000 | | **Operating Loss** | $(720,000) | $(1,365,000) | | **Total Other Income, net** | $467,000 | $1,100,000 | | **Share of Net Loss of Equity Method Investee** | $(279,000) | $(741,000) | | **Net Loss** | $(463,000) | $(826,000) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows total assets of **$42.8 million** and total stockholders' equity of **$42.3 million**, reflecting a decrease from year-end 2024 primarily due to net loss and capital returns Condensed Consolidated Balance Sheet Highlights | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $38,665,000 | $40,832,000 | | **Total Assets** | $42,826,000 | $45,414,000 | | **Total Liabilities** | $565,000 | $1,103,000 | | **Total Stockholders' Equity** | $42,261,000 | $44,311,000 | Company Overview and Forward-Looking Statements [Company Profile](index=3&type=section&id=Company%20Profile) Network-1 Technologies is an intellectual property company focused on acquiring, developing, licensing, and protecting patented technologies, holding **115 U.S.** and **17 international patents** across four main portfolios, with its Remote Power Patent generating over **$188 million** in licensing revenue - The company's business model is to acquire, develop, and monetize high-quality patents with significant licensing opportunities[10](index=10&type=chunk) - Network-1's Remote Power Patent has generated licensing revenue exceeding **$188,000,000** from May 2007 through June 30, 2025[10](index=10&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The earnings release includes forward-looking statements subject to significant risks and uncertainties, including unpredictable revenue from IP licensing, outcomes of pending litigation, and the ability to successfully execute its patent acquisition and investment strategy - The report contains forward-looking statements under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995[11](index=11&type=chunk) - Identified risks include uncertain revenue from IP licensing, outcomes of pending litigation (HFT and M2M/IoT portfolios), and the ability to successfully acquire and monetize new patent portfolios[11](index=11&type=chunk)

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including the balance sheets, statements of operations, changes in stockholders' equity, and cash flows, along with detailed notes explaining the basis of presentation, significant accounting policies, and specific financial line items [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's assets, liabilities, and stockholders' equity at specific points in time Condensed Consolidated Balance Sheets (in thousands) | ASSETS (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $13,424 | $13,145 | | Marketable securities, at fair value | $25,061 | $27,455 | | TOTAL CURRENT ASSETS | $38,665 | $40,832 | | Patents, net | $1,552 | $1,205 | | Equity investment | $2,596 | $3,337 | | TOTAL ASSETS | $42,826 | $45,414 | | | | | | LIABILITIES AND STOCKHOLDERS' EQUITY (in thousands) | | | | Total Current Liabilities | $377 | $766 | | Deferred tax liability | $188 | $337 | | TOTAL LIABILITIES | $565 | $1,103 | | TOTAL STOCKHOLDERS' EQUITY | $42,261 | $44,311 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $42,826 | $45,414 | - Total assets decreased from **$45.414 million** at December 31, 2024, to **$42.826 million** at June 30, 2025[14](index=14&type=chunk) - Total stockholders' equity decreased from **$44.311 million** at December 31, 2024, to **$42.261 million** at June 30, 2025[14](index=14&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This statement reports the company's revenues, expenses, and net loss over specific periods Condensed Consolidated Statements of Operations (in thousands, except per share data) | (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | REVENUE (in thousands) | $— | $100 | $150 | $100 | | TOTAL OPERATING EXPENSES (in thousands) | $720 | $724 | $1,515 | $1,642 | | OPERATING LOSS (in thousands) | $(720) | $(624) | $(1,365) | $(1,542) | | Total other income, net (in thousands) | $467 | $506 | $1,100 | $985 | | LOSS BEFORE INCOME TAXES AND SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE (in thousands) | $(253) | $(118) | $(265) | $(557) | | Total income tax benefit (in thousands) | $(69) | $(137) | $(180) | $(284) | | SHARE OF NET LOSS OF EQUITY METHOD INVESTEE (in thousands) | $(279) | $(677) | $(741) | $(1,305) | | NET LOSS (in thousands) | $(463) | $(658) | $(826) | $(1,578) | | Net loss per share - Basic | $(0.02) | $(0.03) | $(0.04) | $(0.07) | | Net loss per share - Diluted | $(0.02) | $(0.03) | $(0.04) | $(0.07) | - Net loss for the three months ended June 30, 2025, decreased to **$463 thousand** from **$658 thousand** in the prior year period[16](index=16&type=chunk) - Net loss for the six months ended June 30, 2025, decreased to **$826 thousand** from **$1.578 million** in the prior year period[16](index=16&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This statement details the changes in each component of stockholders' equity over a period Condensed Consolidated Statements of Changes in Stockholders' Equity (in thousands) | (in thousands) | Balance – January 1, 2025 | Balance – June 30, 2025 | | :------------- | :------------------------ | :---------------------- | | Common Stock (in thousands) | $229 | $228 | | Additional Paid-in Capital (in thousands) | $65,455 | $64,445 | | Accumulated Deficit (in thousands) | $(21,373) | $(22,412) | | Total Stockholders' Equity (in thousands) | $44,311 | $42,261 | - Total stockholders' equity decreased by **$2.050 million** from January 1, 2025, to June 30, 2025, primarily due to dividends declared (**$1.171 million**) and net loss (**$826 thousand** for six months, split between quarters)[19](index=19&type=chunk)[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement reports the cash generated and used by operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities (in thousands) | $(502) | $(660) | | Net cash provided by investing activities (in thousands) | $2,150 | $5,859 | | Net cash used in financing activities (in thousands) | $(1,369) | $(2,156) | | NET INCREASE IN CASH AND CASH EQUIVALENTS (in thousands) | $279 | $3,043 | | CASH AND CASH EQUIVALENTS, end of period (in thousands) | $13,424 | $19,939 | - Net cash used in operating activities decreased by **$158 thousand**, from **$660 thousand** in 2024 to **$502 thousand** in 2025[24](index=24&type=chunk) - Net cash provided by investing activities decreased significantly by **$3.709 million**, from **$5.859 million** in 2024 to **$2.150 million** in 2025[24](index=24&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information for the financial statements, clarifying accounting policies and specific line items [NOTE A – BASIS OF PRESENTATION AND NATURE OF BUSINESS](index=12&type=section&id=NOTE%20A%20%E2%80%93%20BASIS%20OF%20PRESENTATION%20AND%20NATURE%20OF%20BUSINESS) The Company's unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP for interim financial information. The Company's primary business involves the development, licensing, and protection of its intellectual property assets, which include various patent portfolios related to M2M/IoT, HFT, Cox, Smart Home, Mirror Worlds, and Remote Power technologies. The Company also holds an equity investment in ILiAD Biotechnologies, LLC - The Company owns **115 U.S. patents** (**54 expired**) and **17 international patents** across six portfolios: M2M/IoT, HFT, Cox, Smart Home, Mirror Worlds, and Remote Power[29](index=29&type=chunk) - Current strategy focuses on licensing existing patent portfolios, acquiring new high-quality patents, and forming strategic relationships for intellectual property monetization[30](index=30&type=chunk) - The Company has invested **$7 million** in ILiAD Biotechnologies, LLC, a clinical stage biotechnology company[31](index=31&type=chunk) [NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=13&type=section&id=NOTE%20B%20%E2%80%93%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the Company's key accounting policies, including the use of estimates, revenue recognition under ASC 606 (primarily from litigation settlements and license agreements), equity method investments (recognized on a one-quarter lag), and income tax accounting (using the asset and liability method with a valuation allowance for deferred tax assets). It also addresses the potential classification as a Personal Holding Company and recent accounting pronouncements - Revenue is recognized when intellectual property licensing is complete, a final judgment is obtained, or a litigation settlement agreement is entered, reflecting the expected consideration[34](index=34&type=chunk) Revenue Disaggregated by Source (in thousands) | Source | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :----------------- | :----------------------------- | :----------------------------- | :------------------------------- | :------------------------------- | | Litigation settlements | $150 | $100 | $— | $100 | | Total Revenue | $150 | $100 | $— | $100 | - The Company had a deferred tax liability of **$188 thousand** as of June 30, 2025, and a valuation allowance of **$1.671 million** offsetting deferred tax assets[39](index=39&type=chunk) - The Company is evaluating the impact of new FASB ASUs on Income Statement Expense Disaggregation (ASU 2024-03) and Income Tax Disclosures (ASU 2023-09)[46](index=46&type=chunk)[47](index=47&type=chunk) [NOTE C – PATENTS](index=17&type=section&id=NOTE%20C%20%E2%80%93%20PATENTS) This note details the Company's intangible assets related to patents, including their gross carrying amounts, accumulated amortization, and remaining useful lives. It also provides a schedule of future amortization expenses and the expiration dates for various patent portfolios Patents, Net (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :------------------------ | :------------ | :---------------- | | Gross carrying amount – patents | $8,887 | $8,473 | | Accumulated amortization – patents | $(7,335) | $(7,268) | | Patents, net | $1,552 | $1,205 | - Amortization expense for the six months ended June 30, 2025, was **$67 thousand**, up from **$60 thousand** in the prior year[49](index=49&type=chunk) - The M2M/IoT, HFT, and Smart Home Patent Portfolios have expiration dates ranging from 2033 to 2040, while Mirror Worlds, Cox, and Remote Power Patents have expired[50](index=50&type=chunk) [NOTE D – STOCKHOLDERS' EQUITY](index=17&type=section&id=NOTE%20D%20%E2%80%93%20STOCKHOLDERS'%20EQUITY) This note describes the Company's stock incentive plans, including the 2022 Stock Incentive Plan, and provides a summary of restricted stock unit activity. It also details the associated compensation expense and dividend equivalent rights - As of June 30, 2025, there were **92,500 shares** subject to outstanding awards under the 2022 Plan and **2,040,000 shares** available for issuance[52](index=52&type=chunk) Restricted Stock Unit Activity (Six Months Ended June 30, 2025) | Item | Number of Shares | | :-------------------------------------- | :--------------- | | Balance at December 31, 2024 | 487,500 | | Grants of restricted stock units | 70,000 | | Vested restricted stock units | (40,000) | | Balance at June 30, 2025 | 517,500 | - Restricted stock unit compensation expense for the six months ended June 30, 2025, was **$161 thousand**, down from **$210 thousand** in the prior year[53](index=53&type=chunk) [NOTE E – LOSS PER SHARE](index=19&type=section&id=NOTE%20E%20%E2%80%93%20LOSS%20PER%20SHARE) This note explains the calculation of basic and diluted loss per share. Due to net losses, all potentially dilutive shares (restricted stock units) were anti-dilutive and thus excluded from diluted loss per share calculations Weighted Average Common Shares Outstanding | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------- | :----------------------------- | :----------------------------- | | Weighted-average common shares outstanding – basic | 22,883,729 | 23,444,145 | | Weighted-average common shares outstanding – diluted | 22,883,729 | 23,444,145 | | Restricted stock units excluded (anti-dilutive) | 517,500 | 535,000 | [NOTE F – MARKETABLE SECURITIES](index=19&type=section&id=NOTE%20F%20%E2%80%93%20MARKETABLE%20SECURITIES) This note provides a breakdown of the Company's marketable securities by type, including their cost basis, unrealized gains and losses, and fair value. These securities are primarily classified within Level 1 of the fair value hierarchy Marketable Securities at Fair Value (June 30, 2025, in thousands) | Type of Security | Cost Basis (in thousands) | Unrealized Gains (in thousands) | Unrealized Losses (in thousands) | Fair Value (in thousands) | | :------------------ | :--------- | :--------------- | :---------------- | :--------- | | Certificates of deposit | $752 | $7 | $— | $759 | | Government securities | $12,844 | $78 | $(40) | $12,882 | | Fixed income mutual funds | $9,698 | $233 | $— | $9,931 | | Corporate bonds | $1,490 | $— | $(1) | $1,489 | | Total marketable securities | $24,874 | $318 | $(41) | $25,061 | - Total marketable securities decreased from **$27.455 million** at December 31, 2024, to **$25.061 million** at June 30, 2025[59](index=59&type=chunk) [NOTE G – COMMITMENTS AND CONTINGENCIES](index=21&type=section&id=NOTE%20G%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) This note outlines the Company's commitments and contingencies, including legal fees for patent litigation (often on a contingency basis), obligations related to patent acquisitions (Smart Home, HFT, Cox, M2M/IoT portfolios), and details of its operating lease for office space - Legal fees for patent litigation are typically **15-40% of net recovery**, with the Company responsible for expenses[61](index=61&type=chunk) - On March 31, 2025, the Company acquired the Smart Home Patent Portfolio for **$400 thousand cash**, with additional contingent payments and a percentage of net proceeds[62](index=62&type=chunk) - The Company extended its principal office lease for one year to April 30, 2026, with a base rent of **$5,500 per month**[66](index=66&type=chunk) [NOTE H – EMPLOYMENT ARRANGEMENTS AND OTHER AGREEMENTS](index=22&type=section&id=NOTE%20H%20%E2%80%93%20EMPLOYMENT%20ARRANGEMENTS%20AND%20OTHER%20AGREEMENTS) This note details the employment agreement with the Chairman and CEO, including his annual base salary, target bonus, and incentive compensation structure tied to royalties and payments from patent licensing activities and the ILiAD investment - The Chairman and CEO's annual base salary is **$535 thousand**, increasing by **3% per annum**, with an annual target bonus of **$175 thousand**[69](index=69&type=chunk) - Incentive compensation includes **5% of gross royalties** from the Remote Power Patent and **10% net interest** (min **6.25% gross**) from other patent portfolios and ILiAD investment[70](index=70&type=chunk) - Incentive Compensation earned by the Chairman and CEO for the six months ended June 30, 2025, was **$8 thousand**, compared to **$5 thousand** in the prior year[70](index=70&type=chunk) [NOTE I – LEGAL PROCEEDINGS](index=23&type=section&id=NOTE%20I%20%E2%80%93%20LEGAL%20PROCEEDINGS) This note provides updates on significant legal proceedings, including new patent infringement lawsuits against Samsung (M2M/IoT portfolio) and Citadel Securities/Jump Trading (HFT portfolio). It also details the ongoing appeal against Google/YouTube (Cox Patent Portfolio) and the conclusion of Remote Power Patent litigations, which generated $150,000 in revenue - On June 27, 2025, the Company commenced patent litigation against Samsung for infringement of M2M/IoT patents related to eSIM and 5G technologies[71](index=71&type=chunk) - In December 2024, HFT Solutions, LLC initiated patent litigations against Citadel Securities, LLC and Jump Trading, LLC for infringement of HFT Patent Portfolio[72](index=72&type=chunk) - The Company filed an appeal on May 14, 2024, to the U.S. Court of Appeals for the Federal Circuit regarding the dismissal of its patent infringement claims against Google and YouTube[73](index=73&type=chunk) - During the six months ended June 30, 2025, the Company received a **$150 thousand** conditional payment from a defendant in Remote Power Patent litigation, recorded as revenue[76](index=76&type=chunk) [NOTE J – INVESTMENT](index=24&type=section&id=NOTE%20J%20%E2%80%93%20INVESTMENT) This note details the Company's equity investment in ILiAD Biotechnologies, LLC, a clinical-stage biotechnology company. It outlines the Company's ownership percentage and the allocated net losses from this equity method investment - The Company has invested **$7 million** in ILiAD Biotechnologies, LLC, owning approximately **6.5%** of outstanding units on a non-fully diluted basis[77](index=77&type=chunk) - For the six months ended June 30, 2025, the Company recognized an allocated net loss of **$741 thousand** from its ILiAD investment, a decrease from **$1.305 million** in the prior year[78](index=78&type=chunk) - The carrying value of the ILiAD investment decreased from **$3.337 million** at December 31, 2024, to **$2.596 million** at June 30, 2025[78](index=78&type=chunk) [NOTE K – STOCK REPURCHASES](index=24&type=section&id=NOTE%20K%20%E2%80%93%20STOCK%20REPURCHASES) This note describes the Company's share repurchase program, including its extension and increase to $5,000,000. It provides details on shares repurchased during the period, the average price, and the remaining authorization. It also mentions the adoption of a 10b5-1 trading plan and the potential impact of the U.S. federal 1% excise tax on stock repurchases - On June 17, 2025, the Board authorized an extension and increase of the share repurchase program by **$5 million** over the next 24 months[81](index=81&type=chunk) - During the six months ended June 30, 2025, the Company repurchased **151,473 shares** at an aggregate cost of **$202,194** (average **$1.33 per share**)[82](index=82&type=chunk) - As of June 30, 2025, **$4.994853 million** remained available under the Share Repurchase Program[85](index=85&type=chunk) [NOTE L – CONCENTRATIONS OF CREDIT RISK](index=25&type=section&id=NOTE%20L%20%E2%80%93%20CONCENTRATIONS%20OF%20CREDIT%20RISK) This note addresses the Company's concentrations of credit risk, primarily related to cash and certificates of deposit held at financial institutions, noting amounts in excess of FDIC insured limits - At June 30, 2025, the Company had **$8 thousand** of cash and certificates of deposit in excess of the FDIC insured limit[86](index=86&type=chunk) - The Company held **$13.373 million** in cash equivalents in brokerage accounts at June 30, 2025[86](index=86&type=chunk) [NOTE M – DIVIDEND POLICY](index=25&type=section&id=NOTE%20M%20%E2%80%93%20DIVIDEND%20POLICY) This note outlines the Company's dividend policy of semi-annual cash dividends of $0.05 per share ($0.10 annually), typically paid in March and September, subject to Board review and financial conditions - The Company's dividend policy is semi-annual cash dividends of **$0.05 per share** (**$0.10 annually**), paid in March and September[87](index=87&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and results of operations, highlighting key business activities, financial performance drivers, liquidity, and capital resources. It discusses the Company's patent licensing strategy, ongoing litigations, and investment in ILiAD Biotechnologies [OVERVIEW](index=26&type=section&id=OVERVIEW) This section provides a high-level summary of the Company's business, strategic focus, and financial highlights for the period - The Company's core business is developing, licensing, and protecting intellectual property, holding **115 U.S. patents** (**54 expired**) and **17 international patents** across various technology sectors[89](index=89&type=chunk) - Principal liquidity sources at June 30, 2025, were cash, cash equivalents, and marketable securities totaling **$38.485 million**, with working capital of **$38.288 million**[91](index=91&type=chunk) - All revenue for 2024 and the first six months of 2025 derived from settlements involving the expired Remote Power Patent[93](index=93&type=chunk) - New patent litigations commenced against Samsung (M2M/IoT) and Citadel/Jump Trading (HFT), and an appeal is pending for the Google/YouTube (Cox) litigation[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) - The Company acquired the Smart Home Patent Portfolio on March 31, 2025, consisting of **8 U.S. patents**, **1 international patent**, and pending applications[98](index=98&type=chunk) [RESULTS OF OPERATIONS](index=28&type=section&id=RESULTS%20OF%20OPERATIONS) This section analyzes the Company's financial performance, comparing current period results to prior periods and explaining key drivers of changes [Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024](index=28&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20Three%20Months%20Ended%20June%2030%2C%202024) This subsection compares the financial performance for the three-month periods ended June 30, 2025, and 2024 - Revenue for the three months ended June 30, 2025, was **$0**, down from **$100 thousand** in the same period of 2024[106](index=106&type=chunk) - Net loss decreased by **$195 thousand** to **$463 thousand** for the three months ended June 30, 2025, primarily due to a **$398 thousand** decrease in the share of net losses from ILiAD[109](index=109&type=chunk) - Share of net losses from equity method investee (ILiAD) decreased to **$279 thousand** in Q2 2025 from **$677 thousand** in Q2 2024[108](index=108&type=chunk) [Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024](index=29&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20Six%20Months%20Ended%20June%2030%2C%202024) This subsection compares the financial performance for the six-month periods ended June 30, 2025, and 2024 - Revenue for the six months ended June 30, 2025, increased to **$150 thousand** from **$100 thousand** in the prior year, all from Remote Power Patent litigation settlements[110](index=110&type=chunk) - Operating expenses decreased by **$127 thousand** to **$1.515 million**, driven by lower professional fees and general and administrative expenses[111](index=111&type=chunk) - Net loss decreased by **$752 thousand** to **$826 thousand** for the six months ended June 30, 2025, primarily due to reduced ILiAD losses (**$564 thousand** decrease) and lower operating expenses[116](index=116&type=chunk) - Realized and unrealized gains on marketable securities increased to **$171 thousand** from **$102 thousand**, mainly due to timing of fixed income investment maturities[113](index=113&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=29&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section discusses the Company's ability to meet its short-term and long-term financial obligations and its sources of funding - At June 30, 2025, the Company's liquidity included **$38.485 million** in cash, cash equivalents, and marketable securities, with working capital of **$38.288 million**[117](index=117&type=chunk) - Working capital decreased by **$1.778 million** from December 31, 2024, primarily due to dividend payments (**$1.155 million**), patent acquisitions (**$414 thousand**), and stock repurchases (**$207 thousand**)[119](index=119&type=chunk) - Net cash used in operating activities decreased by **$158 thousand** to **$502 thousand** for the six months ended June 30, 2025[120](index=120&type=chunk) - Net cash provided by investing activities decreased by **$3.709 million** to **$2.150 million**, mainly due to decreased sales of marketable securities and patent acquisitions[121](index=121&type=chunk) - Net cash used in financing activities decreased by **$787 thousand** to **$1.369 million**, primarily due to a decrease in common stock repurchases[122](index=122&type=chunk) [OFF-BALANCE SHEET ARRANGEMENTS](index=30&type=section&id=OFF-BALANCE%20SHEET%20ARRANGEMENTS) This section confirms the absence of any off-balance sheet arrangements that could materially impact the Company's financial position - The Company does not have any off-balance sheet arrangements[123](index=123&type=chunk) [CONTRACTUAL OBLIGATIONS](index=30&type=section&id=CONTRACTUAL%20OBLIGATIONS) This section outlines the Company's contractual obligations, including long-term debt, capital leases, and purchase commitments - The Company has no long-term debt, capital lease obligations, purchase obligations, or other long-term liabilities[124](index=124&type=chunk) [CRITICAL ACCOUNTING ESTIMATES](index=30&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES) This section identifies accounting estimates that require significant judgment and could materially affect financial results if underlying assumptions change - Critical accounting estimates involve assumptions about highly uncertain matters, where changes could materially impact financial condition or results of operations[126](index=126&type=chunk) - Significant estimates include costs related to litigation, valuation of patent portfolios, stock-based compensation, recoverability of deferred tax assets, and carrying value of equity method investments[32](index=32&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that the Company does not have significant exposure to interest rate risk due to its investments primarily being in money market funds, government securities, certificates of deposit, and short-term fixed income securities - The Company does not believe its investments have significant exposure to interest rate risk, as they are primarily in money market funds, government securities, certificates of deposit, and short-term fixed income securities[122](index=122&type=chunk)[128](index=128&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of the Company's disclosure controls and procedures, concluding their effectiveness, and reports no material changes in internal control over financial reporting during the quarter [Evaluation of Disclosure Controls and Procedures](index=31&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This subsection reports on the effectiveness of the Company's disclosure controls and procedures as evaluated by management - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025[128](index=128&type=chunk) [Changes in Internal Controls](index=31&type=section&id=Changes%20in%20Internal%20Controls) This subsection reports any material changes in the Company's internal control over financial reporting during the period - No material changes in internal control over financial reporting occurred during the fiscal quarter ended June 30, 2025[129](index=129&type=chunk) [PART II. OTHER INFORMATION](index=32&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity security sales, defaults, other information, and exhibits [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) This section provides an update on legal proceedings, specifically noting the commencement of new patent litigation against Samsung Electronics Co., LTD and Samsung Electronics America, Inc. on June 27, 2025, for infringement of M2M/IoT Patent Portfolio patents - On June 27, 2025, the Company initiated patent litigation against Samsung for infringement of M2M/IoT Patent Portfolio patents related to eSIM and 5G technologies in mobile devices[131](index=131&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) This section advises investors to consider various risks and uncertainties that could negatively impact the Company's business, financial condition, results of operations, and stock price, referencing both the current 10-Q and the Annual Report on Form 10-K - Investors should carefully consider risks described in this Quarterly Report and the Annual Report on Form 10-K for the year ended December 31, 2024[132](index=132&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports no unregistered sales of equity securities during the quarter and details the Company's stock repurchase program, including its extension and increase, shares repurchased, and the remaining authorization [Recent Issuances of Unregistered Securities](index=32&type=section&id=Recent%20Issuances%20of%20Unregistered%20Securities) This subsection reports on any unregistered sales of equity securities during the reporting period - There were no unregistered sales of equity securities during the three months ended June 30, 2025[133](index=133&type=chunk) [Stock Repurchases](index=32&type=section&id=Stock%20Repurchases) This subsection details the Company's stock repurchase activities, including program authorizations and shares repurchased - The Board authorized an extension and increase of the Share Repurchase Program to repurchase up to **$5 million** of common stock over the subsequent 24-month period[134](index=134&type=chunk) - During the three months ended June 30, 2025, **44,811 shares** were repurchased at an aggregate cost of **$55,337** (average **$1.23 per share**)[134](index=134&type=chunk) - As of June 30, 2025, the remaining dollar value of shares that may be repurchased was **$4.994853 million**[134](index=134&type=chunk) [Item 3. Defaults Upon Senior Securities](index=33&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities - There were no defaults upon senior securities[137](index=137&type=chunk) [Item 5. Other Information](index=33&type=section&id=Item%205.%20Other%20Information) This section indicates that there is no other information to report - No other information is reported in this section[137](index=137&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications from the CEO and CFO (pursuant to Sections 302 and 906 of Sarbanes-Oxley Act) and Interactive Data Files (XBRL) - Exhibits include CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and Interactive Data Files (XBRL) (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE)[138](index=138&type=chunk) [Signatures](index=35&type=section&id=Signatures) This section contains the signatures of the registrant's authorized officers, including the Chairman and Chief Executive Officer and the Chief Financial Officer, certifying the report - The report is signed by Corey M. Horowitz, Chairman and Chief Executive Officer, and Robert Mahan, Chief Financial Officer, on August 8, 2025[142](index=142&type=chunk)

Financial Performance - Network-1 reported revenue of $150,000 for Q1 2025, compared to no revenue in Q1 2024, with revenue derived from a litigation settlement involving the Remote Power Patent[2] - The net loss for Q1 2025 was $363,000, or $0.02 per share, an improvement from a net loss of $920,000, or $0.04 per share, in Q1 2024[3] - Interest and dividend income increased to $484,000 in Q1 2025 from $431,000 in Q1 2024, while realized and unrealized gains on marketable securities rose to $149,000 from $48,000[4] Liquidity and Assets - As of March 31, 2025, Network-1's cash and cash equivalents and marketable securities totaled $39,193,000, with working capital of $38,443,000, indicating sufficient liquidity for operations[6] - The total assets of Network-1 as of March 31, 2025, were $43,871,000, a decrease from $45,414,000 at the end of 2024[15] Shareholder Returns - The company repurchased 106,662 shares at an average price of $1.38 during Q1 2025, with a total of 10,480,894 shares repurchased since the program's inception[7] - Network-1 declared a semi-annual cash dividend of $0.05 per share, consistent with its dividend policy, which has been paid since 2010[8] - The company has returned over $43,000,000 to shareholders through dividends and share repurchases since 2010[7] Intellectual Property - Network-1 acquired a Smart Home Patent Portfolio consisting of eight U.S. patents and one international patent, along with pending applications, enhancing its intellectual property assets[5] - Network-1's strategy includes monetizing four patent portfolios, focusing on high-quality patents with significant licensing opportunities[9]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________ FORM 10-Q _________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 (Registrant's Telephone Number) Securities registered pursuant to Section 12(b) of the Act: ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to__________ Commission File Numb ...

Financial Highlights [Revenue and Operating Expenses](index=1&type=section&id=Revenue%20and%20Operating%20Expenses) Network-1's revenue significantly decreased in 2024 due to lower litigation settlement agreements, leading to a corresponding decrease in operating expenses, primarily contingent legal fees | Metric | 2024 | 2023 | Change (YoY) | | :-------------------- | :----------- | :----------- | :----------- | | Revenue | $100,000 | $2,601,000 | -96.12% | | Operating Expenses | $3,721,000 | $4,836,000 | -22.91% | | Costs of Revenue | $28,000 | $874,000 | -96.80% | - Revenue in both 2024 and 2023 was derived from settlement agreements in litigations involving Network-1's Remote Power Patent. The decrease in operating expenses was primarily due to a **$846,000 decrease** in costs of revenue related to lower contingent legal fees and incentive bonus compensation, resulting from decreased litigation settlement revenue[2](index=2&type=chunk) [Net Loss and EPS](index=1&type=section&id=Net%20Loss%20and%20EPS) The company reported an increased net loss in 2024, primarily influenced by a substantial operating loss and its share of losses from an equity investee | Metric | 2024 | 2023 | | :-------------------------------- | :----------- | :----------- | | Net Loss | $(3,034,000) | $(1,457,000) | | Net Loss Per Share (Basic & Diluted) | $(0.13) | $(0.06) | - Included in net loss is Network-1's share of the net loss of its equity investee (ILiAD Biotechnologies, LLC) of **$1,912,000 in 2024**, compared to **$2,003,000 in 2023**[3](index=3&type=chunk) [Other Income](index=1&type=section&id=Other%20Income) Interest and dividend income remained stable in 2024, while realized and unrealized gains on marketable securities declined due to timing of maturities and lower yields | Metric | 2024 | 2023 | Change (YoY) | | :------------------------------------ | :----------- | :----------- | :----------- | | Interest and Dividend Income, net | $1,897,000 | $1,868,000 | +1.55% | | Net Realized and Unrealized Gain on Marketable Securities | $177,000 | $525,000 | -66.30% | - The decline in unrealized and realized gains in 2024 was primarily due to the timing of maturities of marketable securities and the declines in realized yields on fixed income holdings[4](index=4&type=chunk) [Liquidity and Capital Resources](index=1&type=section&id=Liquidity%20and%20Capital%20Resources) As of December 31, 2024, Network-1 maintained strong liquidity with significant cash, cash equivalents, and marketable securities, which management believes are sufficient to fund future operations | Metric (as of Dec 31, 2024) | Amount | | :-------------------------- | :----------- | | Cash and Cash Equivalents | $13,145,000 | | Marketable Securities | $27,455,000 | | Total Cash & Marketable Securities | $40,600,000 | | Working Capital | $40,066,000 | - Management believes that based on current cash, cash equivalents, and marketable securities positions, Network-1 will have **sufficient liquidity** to fund its operations for the foreseeable future[5](index=5&type=chunk) [Shareholder Returns](index=1&type=section&id=Shareholder%20Returns) Network-1 continued its share repurchase program in 2024, repurchasing over $1.27 million in stock, and maintained its semi-annual cash dividend policy, cumulatively returning over $41 million to shareholders since 2010 | Share Repurchase Program Activity | 2024 | Since Inception (Aug 2011 - Dec 31, 2024) | | :-------------------------------- | :----------- | :---------------------------------------- | | Shares Repurchased | 733,436 | 10,374,232 | | Cost (exclusive of commissions) | ~$1,270,438 | ~$19,983,000 | | Average Price Per Share | $1.73 | $1.93 | - Network-1's dividend policy consists of semi-annual cash dividends of **$0.05 per share** (**$0.10 per share annually**), which were declared and paid consistently in 2024. Combined with approximately **$22,000,000 in dividends paid since 2010**, Network-1 has returned in excess of **$41,000,000** to its shareholders through dividends and share repurchases[6](index=6&type=chunk)[7](index=7&type=chunk)[11](index=11&type=chunk) Company Overview [Business Description](index=2&type=section&id=Business%20Description) Network-1 specializes in the acquisition, development, licensing, and protection of intellectual property, assisting inventors and patent owners in monetizing their patented technologies - Network-1 Technologies, Inc. is engaged in the acquisition, development, licensing, and protection of its intellectual property and proprietary technologies. The company works with inventors and patent owners to assist in the development and monetization of their patented technologies[8](index=8&type=chunk) [Intellectual Property and Strategy](index=2&type=section&id=Intellectual%20Property%20and%20Strategy) The company holds 106 U.S. and 16 international patents, focusing on monetizing three key patent portfolios (Cox, M2M/IoT, HFT) and acquiring high-quality patents with significant licensing potential, building on past successes with its Remote Power and Mirror Worlds portfolios | Patent Holdings | Count | | :---------------- | :---- | | U.S. Patents | 106 | | International Patents | 16 | | Patent Portfolio | Licensing Revenue (through Dec 31, 2024) | | :-------------------- | :--------------------------------------- | | Remote Power Patent | >$188,000,000 | | Mirror Worlds Patent Portfolio | $47,150,000 | - Network-1's current strategy includes efforts to monetize three patent portfolios (the Cox, M2M/IoT, and HFT portfolios) and to focus on acquiring and investing in high-quality patents with the potential to generate significant licensing opportunities[8](index=8&type=chunk) [Forward-Looking Statements and Risks](index=2&type=section&id=Forward-Looking%20Statements%20and%20Risks) The release includes forward-looking statements subject to various risks, including uncertain revenue from intellectual property licensing, outcomes of pending litigation, ability to execute acquisition strategies, and potential impacts from AI development - * Uncertain revenue from licensing intellectual property * Uncertainty regarding the outcome of pending litigation involving Network-1's HFT Patent Portfolio and appeal to the Federal Circuit for the Cox Patent Portfolio * Ability to successfully execute its strategy to acquire or make investments in high-quality patents * Uncertainty as to whether cash dividends will continue to be paid * The increasing development of artificial intelligence could impact Network-1's business * Risk of being classified as a Personal Holding Company, potentially requiring a special cash dividend[9](index=9&type=chunk) Consolidated Financial Statements [Consolidated Statements of Operations and Comprehensive Loss](index=3&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) The consolidated statements of operations show a significant decrease in revenue and an increased net loss for 2024 compared to 2023, driven by lower operating income and continued equity method investee losses | Metric | 2024 | 2023 | | :-------------------------------------------------- | :----------- | :----------- | | REVENUE | $100,000 | $2,601,000 | | TOTAL OPERATING EXPENSES | $3,721,000 | $4,836,000 | | OPERATING LOSS | $(3,621,000) | $(2,235,000) | | Total other income, net | $2,074,000 | $2,393,000 | | (LOSS) INCOME BEFORE INCOME TAXES AND SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE | $(1,547,000) | $158,000 | | SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE | $(1,912,000) | $(2,003,000) | | NET LOSS | $(3,034,000) | $(1,457,000) | | Net Loss Per Share (Basic & Diluted) | $(0.13) | $(0.06) | | Cash dividends declared per share | $0.10 | $0.10 | [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets indicate a decrease in total assets and stockholders' equity from 2023 to 2024, primarily due to reductions in cash, marketable securities, and equity investment, while total liabilities also decreased | Metric (as of Dec 31) | 2024 | 2023 | | :------------------------------------ | :----------- | :----------- | | Cash and cash equivalents | $13,145,000 | $16,896,000 | | Marketable securities, at fair value | $27,455,000 | $28,571,000 | | Total Current Assets | $40,832,000 | $45,673,000 | | Equity investment | $3,337,000 | $5,249,000 | | TOTAL ASSETS | $45,414,000 | $52,277,000 | | Total Current Liabilities | $766,000 | $823,000 | | Deferred tax liability | $337,000 | $762,000 | | TOTAL LIABILITIES | $1,103,000 | $1,585,000 | | TOTAL STOCKHOLDERS' EQUITY | $44,311,000 | $50,692,000 |

Revenue and Financial Performance - Revenue from the Remote Power Patent generated over $188 million from May 2007 to December 31, 2024, constituting 100% of revenue for 2024 ($100,000) and 2023 ($2.6 million) [69] - The patent monetization cycle is lengthy and costly, leading to unpredictable revenue recognition [71] - The company anticipates fluctuations in quarterly and annual financial results due to various external factors [73] - The company has paid semi-annual cash dividends of $0.05 per share since December 2016, but future payments are subject to review [77] - The company is subject to inherent uncertainties in estimates, judgments, and assumptions in financial statement preparation, which could materially affect business and financial results [94] Patent and Intellectual Property - The company has established a patent portfolio of 106 U.S. patents and 16 foreign patents, but faces competition in acquiring high-quality patents [70] - The company is focused on monetizing its M2M/IoT Patent Portfolio and acquiring additional intellectual property [100] Legal and Regulatory Risks - The company faces significant risks in patent litigation, with ongoing cases against Citadel Securities and Jump Trading regarding the HFT Patent Portfolio [66] - The company is exposed to risks from changes in patent law and increased costs of enforcement due to legislative changes [78] - The rapid development of artificial intelligence may challenge the company's patent validity and enforcement capabilities [79] - Ongoing litigations against Citadel Securities and Jump Trading involve patents within the HFT Patent Portfolio, which could impact stock performance [100] Corporate Governance and Stockholder Rights - The corporate charter allows the Board of Directors to issue up to 10,000,000 shares of preferred stock, potentially affecting common stockholders' rights [95] - Anti-takeover provisions under Delaware law could prevent business combinations with stockholders owning 15% or more for three years without board or stockholder approvals [96] - By-laws require advance notice for director nominations and new business at stockholder meetings, impacting stockholder participation [97] - Provisions may deter unsolicited takeovers and limit stockholders' ability to approve transactions they deem beneficial [98] Market and Stock Performance - The common stock is traded on the NYSE American exchange under the symbol "NTIP" and may face delisting if continued listing standards are not met [93] - The stock price may be highly volatile, influenced by various factors including litigation outcomes and market fluctuations [100] - The increasing development of artificial intelligence and external economic factors may impact the company's business operations [100] Investment and Future Outlook - The company has invested $7 million in ILiAD, a clinical stage biotechnology company, with uncertain future outcomes [67] - The company may be classified as a Personal Holding Company in the future, which would impose a 20% tax on undistributed income [74]