Revenue Performance - Revenue for the three months ended June 30, 2024, was $100,000, a decrease of 64.7% compared to $283,000 for the same period in 2023, all from litigation settlements involving the Remote Power Patent[87] - Revenue for the six months ended June 30, 2024, was $100,000, a decrease of 87.8% compared to $820,000 for the same period in 2023, all from litigation settlements involving the Remote Power Patent[93] - The Remote Power Patent has generated over $188,000,000 in licensing revenue from May 2007 to June 30, 2024, but no revenue has been received since its expiration on March 7, 2020[79] Operating Expenses - Operating expenses for the three months ended June 30, 2024, were $724,000, down 12.9% from $832,000 for the same period in 2023, primarily due to decreases in costs related to litigation settlements and general administrative expenses[88] - Operating expenses for the six months ended June 30, 2024, were $1,642,000, down 24.5% from $2,145,000 for the same period in 2023, mainly due to decreases in costs related to litigation settlements and general administrative expenses[93] Net Loss - Net loss for the three months ended June 30, 2024, was $658,000, or $0.03 per share, compared to a net loss of $476,000, or $0.02 per share, for the same period in 2023, reflecting a higher loss from equity method investee ILiAD[91] - Net loss for the six months ended June 30, 2024, was $1,578,000, or $0.07 per share, compared to a net loss of $1,099,000, or $0.05 per share, for the same period in 2023, driven by decreased revenue and increased losses from ILiAD[96] Financial Position - As of June 30, 2024, the company had cash and cash equivalents and marketable securities totaling $42,599,000, with working capital of $42,369,000, a decrease from $44,850,000 at December 31, 2023[98] - The company has invested $7,000,000 in ILiAD, a clinical stage biotechnology company, which involves significant risk and uncertainty regarding the outcome[78] Legal Matters - The U.S. District Court dismissed the company's patent infringement claims against Google Inc. and YouTube, LLC, ruling that the asserted claims of two patents are invalid and that another patent is not infringed[109] - The company filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit regarding the patent infringement case[109] - A class action lawsuit was filed against the company and its CEO, alleging that the company must register as an "investment company" under the Investment Company Act of 1940[109] Strategic Plans - The company plans to continue its licensing efforts and seeks to acquire additional intellectual property assets to enhance monetization opportunities[82] Internal Controls - The company has not experienced any material changes in internal control over financial reporting during the fiscal quarter ended June 30, 2024[107]

Revenue and Loss - Network-1 reported no revenue for Q1 2024, a decrease from $537,000 in Q1 2023, which was generated from patent infringement lawsuit settlements[3] - The net loss for Q1 2024 was $920,000, or $0.04 per share, compared to a net loss of $623,000, or $0.03 per share, in Q1 2023[4] - The company incurred a loss of $292,000 excluding its share of losses from equity method investee ILiAD Biotechnologies, LLC, compared to an income of $51,000 in Q1 2023[4] Liquidity and Assets - As of March 31, 2024, Network-1 had cash and cash equivalents of $18,105,000 and marketable securities valued at $25,289,000, totaling $43,394,000 in liquidity[5] - Network-1's total assets decreased to $49,617,000 as of March 31, 2024, down from $52,277,000 at the end of 2023[12] Share Repurchase and Dividends - The company repurchased 83,744 shares at an average price of $2.17 during Q1 2024, with a total repurchase cost of $182,070[6] - Network-1 continues to pay semi-annual dividends of $0.05 per share, with the latest payment made on March 29, 2024[7] Operating Expenses and Revenue Generation - Total operating expenses for Q1 2024 were $918,000, down from $1,313,000 in Q1 2023[14] - The Remote Power Patent has generated over $188,000,000 in licensing revenue since May 2007, while the Mirror Worlds Patent Portfolio has achieved $47,150,000 in revenue through March 31, 2024[8] Shares Outstanding - The company reported a weighted average of 23,540,468 common shares outstanding for Q1 2024[14]

Revenue Performance - The company reported no revenue for the three months ended March 31, 2024, compared to $537,000 for the same period in 2023, primarily from litigation settlements involving the Remote Power Patent[104]. - Licensing revenue from the Remote Power Patent exceeded $188,000,000 from May 2007 to March 31, 2024, but no revenue has been generated since the patent's expiration on March 7, 2020[96]. Operating Expenses - Operating expenses decreased to $918,000 for the three months ended March 31, 2024, down from $1,313,000 in the same period of 2023, reflecting a reduction in costs associated with litigation settlements and professional fees[105]. Net Loss - The company recognized a net loss of $920,000 or $0.04 per share for the three months ended March 31, 2024, compared to a net loss of $623,000 or $0.03 per share for the same period in 2023, attributed to the absence of revenue[111]. Cash and Investments - Cash and cash equivalents, along with marketable securities, totaled $43,394,000 as of March 31, 2024, with working capital decreasing to $43,067,000 from $44,850,000 at December 31, 2023[94][114]. - The company has invested $7,000,000 in ILiAD, a clinical stage biotechnology company, which holds an exclusive license to 70 patents, with ongoing risks associated with this investment[95]. Interest and Gains - Interest and dividend income increased to $431,000 for the three months ended March 31, 2024, compared to $310,000 for the same period in 2023, due to higher interest rates[107]. - The company recorded realized and unrealized gains on marketable securities of $48,000 for the three months ended March 31, 2024, down from $364,000 for the same period in 2023[108]. Future Plans - The company plans to continue its licensing efforts and seeks to acquire additional intellectual property assets to enhance monetization opportunities[98].

Revenue and Income - Network-1 reported revenue of $2,601,000 for the year ended December 31, 2023, compared to no revenue in 2022[3] - Interest and dividend income rose to $1,868,000 in 2023, up from $1,020,000 in 2022, reflecting higher yielding fixed income investments[4] - The Remote Power Patent has generated over $188,000,000 in licensing revenue since May 2007, while the Mirror Worlds Patent Portfolio has achieved $47,150,000 in revenue[9] Expenses and Losses - Operating expenses increased by $933,000 in 2023, primarily due to contingent legal fees and incentive bonuses related to litigation settlements[3] - The net loss for 2023 was $1,457,000, or $0.06 per share, an improvement from a net loss of $2,326,000, or $0.10 per share, in 2022[5] - The company’s accumulated deficit increased to $16,989,000 in 2023, compared to $12,055,000 in 2022[14] Cash and Liquidity - As of December 31, 2023, Network-1 had cash and cash equivalents and marketable securities totaling $45,467,000, indicating sufficient liquidity for operations[6] - The company repurchased 428,132 shares at a cost of approximately $955,000 during 2023, with a total of 9,532,982 shares repurchased since the program's inception[7] - Network-1 declared and paid semi-annual cash dividends of $0.05 per share in 2023, consistent with its dividend policy[8] Assets - Total assets decreased to $52,277,000 as of December 31, 2023, down from $57,969,000 in 2022[14]

Financial Performance - Revenue for 2023 was $2,601,000, with a net loss of $1,457,000, compared to no revenue and a net loss of $2,326,000 in 2022[70] - The company faced a net income of $14,281,000 in 2021, with revenue of $36,029,000, indicating significant fluctuations in financial performance[70] - The company may be classified as a Personal Holding Company in the future, which could result in a 20% tax on undistributed income[71] - The ability to continue paying cash dividends and raise capital if needed is essential for maintaining investor confidence[97] Revenue Generation - The Remote Power Patent generated over $188,000,000 in revenue from May 2007 to December 31, 2023, constituting 100% of revenue for 2023[64] - The patent monetization cycle is long and costly, with significant time lags before recognizing revenue from acquired patents[68] - The company aims to further develop, license, and monetize its M2M/IoT and HFT Patent Portfolios, which are critical for future revenue[97] Investments and Assets - The company invested $7,000,000 in ILiAD, a clinical stage biotechnology company, with uncertain future returns[63] - The company has 100 U.S. patents and 15 foreign patents, focusing on acquiring high-quality patent assets for significant licensing opportunities[67] Competition and Market Position - The company faces intense competition in acquiring intellectual property and entering strategic relationships, with competitors having greater resources[80] - The company faces risks from technology changes, legislative, regulatory, and competitive developments that could affect its market position[97] Stock and Shareholder Matters - 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[89] - The company has authorized the issuance of up to 10,000,000 shares of preferred stock, which could adversely affect common stockholders if issued[91] - The company has a dividend policy of $0.05 per share, paid semi-annually, but future payments are subject to review and may change[73] Corporate Governance - The company has been dependent on its CEO, Corey M. Horowitz, for its success, with no key-man insurance in place[72] - The company is subject to "anti-takeover" provisions that could prevent business combinations with stockholders owning 15% or more for three years unless approvals are obtained[92] - Provisions in the corporate charter and by-laws may deter unsolicited takeovers and limit stockholders' ability to influence management changes[94] Legal Matters - The company is involved in litigation against Google and YouTube regarding patents, which could impact its financial performance[97] Financial Reporting - The preparation of financial statements involves estimates and assumptions that could materially affect the company's financial condition and operating results[90] Stock Price Volatility - The stock price may be highly volatile, influenced by factors beyond the company's control, including market fluctuations unrelated to operating performance[96]

Financial Position - As of September 30, 2023, the company had cash and cash equivalents of $44,568,000 and working capital of $44,267,000[93] - As of September 30, 2023, the company's cash and cash equivalents and marketable securities totaled $44,568,000, with working capital at $44,267,000[128] - Working capital decreased by $3,092,000 from $47,359,000 at December 31, 2022, primarily due to dividend payments of $2,371,000 and increased operating expenses of $326,000[129] - The company has no off-balance sheet arrangements or long-term debt obligations[134][135] - The company maintains its cash in low-risk investments, minimizing exposure to interest rate risk[133] Revenue and Income - The company generated licensing revenue exceeding $187,000,000 from the Remote Power Patent from May 2007 to September 30, 2023, but no revenue has been received since the patent's expiration on March 7, 2020[95] - For the nine months ended September 30, 2023, the company reported revenue of $820,000 from litigation settlements, compared to no revenue for the same period in 2022[116] - Interest and dividend income for the nine months ended September 30, 2023 was $1,161,000, an increase of $629,000 from $532,000 in the same period of 2022[120] Expenses and Losses - Operating expenses for the nine months ended September 30, 2023 were $3,004,000, an increase of $435,000 from $2,569,000 in the same period of 2022[117] - The company recognized a net loss of $1,909,000 or $0.08 per share for the nine months ended September 30, 2023, compared to a net loss of $618,000 or $0.03 per share for the same period in 2022[127] - The company recognized $532,000 of net losses related to its equity share of ILiAD for the three months ended September 30, 2023, compared to $285,000 for the same period in 2022[113] Investments - The company has invested $7,000,000 in ILiAD, a clinical stage biotechnology company, which has significant risks and uncertain outcomes[94] - The company recorded realized and unrealized gains on marketable securities of $420,000 for the nine months ended September 30, 2023, compared to losses of $1,358,000 in the same period of 2022[124] Cash Flow - Net cash used in operating activities for the nine months ended September 30, 2023 was $753,000, a decrease of $4,427,000 from $5,180,000 for the same period in 2022[130] - Net cash provided by investing activities increased by $26,588,000 to $11,350,000 compared to $(15,238,000) for the nine months ended September 30, 2022[131] - Net cash used in financing activities was $3,159,000 for the nine months ended September 30, 2023, compared to $2,915,000 for the same period in 2022, reflecting an increase in treasury share repurchases[133] Corporate Governance - The Chief Executive Officer and Chief Financial Officer confirmed the effectiveness of the company's disclosure controls and procedures as of the end of the reporting period[139] - There were no changes in internal controls over financial reporting that materially affected the company during the fiscal quarter ended September 30, 2023[140] Future Plans - The company plans to continue its licensing efforts and seeks to acquire additional intellectual property assets to monetize[98] Accounting Estimates - The company’s critical accounting estimates include revenue recognition and the valuation of equity method investments, which could materially affect reported results[137][138]

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 June 30, 2023 203-920-1055 NETWORK-1 TECHNOLOGIES, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 11-3027591 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 ...

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, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to__________ Commission File Number 1-15288 NETWORK-1 TECHNOLOGIES, INC. (Exact Name of Registrant as Specified in Its Charte ...

Part I [Business](index=4&type=section&id=Item%201.%20Business) The company's principal business is developing and licensing intellectual property, with future revenue dependent on monetizing its diverse patent assets - The company's primary business model revolves around the development, licensing, and protection of its intellectual property assets[11](index=11&type=chunk) Key Patent Portfolios | Portfolio | Technology Focus | | :--- | :--- | | **Cox Patent Portfolio** | Identifying media content on the Internet | | **M2M/IoT Patent Portfolio** | Embedded SIM technology for IoT and mobile devices | | **HFT Patent Portfolio** | High-frequency trading technologies addressing speed and latency | | **Mirror Worlds Patent Portfolio** | Unified search, indexing, and archiving of computer documents | | **Remote Power Patent** | Power over Ethernet (PoE) for network devices | - The company has historically been dependent on its Remote Power Patent for a significant portion of revenue, which expired on March 7, 2020. Future revenue is now largely dependent on monetizing other patent assets[16](index=16&type=chunk) - The company has invested **$7,000,000** in ILiAD Biotechnologies, a clinical-stage biotech company, and owned approximately **6.8%** of its outstanding units as of December 31, 2022[14](index=14&type=chunk)[52](index=52&type=chunk) Financial Position as of December 31, 2022 | Metric | Amount | | :--- | :--- | | Cash and cash equivalents | $48,439,000 | | Working capital | $47,359,000 | [Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) The company faces substantial risks from uncertain patent litigation outcomes, the expiration of its key revenue-generating patent, and investment volatility - Revenue is uncertain as it is generally dependent upon the unpredictable outcomes of patent litigation[63](index=63&type=chunk) - The company was heavily dependent on its Remote Power Patent, which expired in March 2020, and may not be able to generate significant future revenue from its other patents[66](index=66&type=chunk) - The **$7,000,000** investment in ILiAD, a privately held clinical-stage biotechnology company, remains subject to substantial risks despite recording gains in 2022[65](index=65&type=chunk) - The company could be classified as a Personal Holding Company (PHC) in the future, which would result in a **20%** tax on its undistributed PHC income[72](index=72&type=chunk) - As of March 10, 2023, executive officers and directors beneficially owned **30.8%** of the outstanding common stock, which may allow them to exercise substantial control over stockholder decisions[87](index=87&type=chunk) [Unresolved Staff Comments](index=21&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[98](index=98&type=chunk) [Properties](index=21&type=section&id=Item%202.%20Properties) The company leases approximately 2,000 square feet for its principal executive offices in New Canaan, Connecticut, with the lease expiring April 30, 2025 - The company leases its principal executive offices in New Canaan, Connecticut. The lease for approximately **2,000 square feet** expires on April 30, 2025, with a base rent of **$5,500 per month**[99](index=99&type=chunk) [Legal Proceedings](index=21&type=section&id=Item%203.%20Legal%20Proceedings) Network-1 is actively engaged in multiple patent infringement litigations, including ongoing cases against Google, YouTube, and Meta, plus new litigations for its expired Remote Power Patent - The company has ongoing litigation against Google Inc. and YouTube, LLC for infringement of patents within its Cox Patent Portfolio related to YouTube's Content ID system[100](index=100&type=chunk)[101](index=101&type=chunk) - The company is appealing a District Court's summary judgment of non-infringement in its case against Meta Platforms, Inc. (Facebook) involving patents from the Mirror Worlds Patent Portfolio[102](index=102&type=chunk)[105](index=105&type=chunk) - In October and November 2022, the company initiated nine separate litigations against ten defendants for infringement of its Remote Power Patent for damages prior to its expiration. Settlements with four defendants resulted in aggregate payments of **$537,300** and a conditional payment of **$150,000**[106](index=106&type=chunk)[107](index=107&type=chunk) - A lawsuit is pending against Netgear for an alleged breach of a Settlement and License Agreement concerning royalty payments for PoE products[108](index=108&type=chunk) [Mine Safety Disclosures](index=23&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - None[109](index=109&type=chunk) Part II [Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=23&type=section&id=Item%205.%20Market%20For%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NYSE American, maintains a **$0.10** annual dividend, and actively repurchased shares in 2022, with **2,300,000** shares available for future issuance - The company's common stock trades on the NYSE American exchange under the symbol "NTIP"[111](index=111&type=chunk) - The company has a dividend policy of paying semi-annual cash dividends of **$0.05 per share**, totaling **$0.10 per share** annually[112](index=112&type=chunk) 2022 Share Repurchase Activity | Metric | Value | | :--- | :--- | | Shares Repurchased | 228,530 | | Total Cost (ex-commissions) | $531,000 | | Average Price Per Share | $2.33 | - As of December 31, 2022, there were **2,300,000** shares available for future issuance under the company's 2022 Stock Incentive Plan[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company reported no revenue and a net loss in FY2022, a significant decline from 2021, with financial results highly volatile and strong liquidity Financial Performance Comparison (2022 vs. 2021) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Revenue | $0 | $36,029,000 | | Operating (Loss) Income | ($3,903,000) | $19,586,000 | | Net (Loss) Income | ($2,326,000) | $14,281,000 | | (Loss) Income Per Share (basic) | ($0.10) | $0.59 | - The company recorded a gain of **$3,883,000** on its equity method investment in ILiAD and a **$271,000** gain on the conversion of its ILiAD convertible note in 2022[129](index=129&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk) - Working capital decreased by **$8.3 million** to **$47.4 million** at December 31, 2022, primarily due to the operating loss, income tax payments, and cash dividends[154](index=154&type=chunk) - Net cash used in operating activities was **$5.4 million** in 2022, compared to net cash provided by operating activities of **$19.5 million** in 2021, mainly due to the lack of revenue in 2022[156](index=156&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is not applicable to the company - Not applicable[167](index=167&type=chunk) [Financial Statements and Supplementary Data](index=33&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section refers to the consolidated financial statements and notes, which are located on pages F-1 through F-23 of the report - The consolidated financial statements are located on pages F-1 through F-23[168](index=168&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=33&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[169](index=169&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%209A.%20Controls%20and%20Procedures) The CEO and CFO concluded that the company's disclosure controls and internal controls over financial reporting were effective as of December 31, 2022, with no material changes - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period[170](index=170&type=chunk) - Management concluded that the company's internal controls over financial reporting were effective as of December 31, 2022[175](index=175&type=chunk) [Other Information](index=34&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[176](index=176&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=35&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not Applicable[178](index=178&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=35&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) The section provides biographical details for the company's directors and executive officers, outlining the Board's structure with four standing committees and three independent members Key Executive Officers | Name | Position | | :--- | :--- | | Corey M. Horowitz | Chairman, Chief Executive Officer | | Jonathan E. Greene | Executive Vice President, Secretary | | Robert M. Mahan | Chief Financial Officer | - The Board of Directors has four standing committees: Audit, Compensation, Nominating and Corporate Governance, and Strategic Development[191](index=191&type=chunk) - Three of the five directors (Emanuel Pearlman, Allison Hoffman, and Niv Harizman) are considered independent under NYSE American standards[191](index=191&type=chunk)[228](index=228&type=chunk) [Executive Compensation](index=40&type=section&id=Item%2011.%20Executive%20Compensation) Chairman and CEO Corey M. Horowitz's 2022 total compensation was approximately **$1.92 million**, including salary, bonus, and stock awards, with non-management directors receiving cash fees and **15,000** RSUs Summary Compensation Table - Corey M. Horowitz (Chairman and CEO) | Year | Salary | Bonus | Stock Awards | Total Compensation | | :--- | :--- | :--- | :--- | :--- | | 2022 | $535,000 | $175,000 | $1,102,940 | $1,922,615 | | 2021 | $535,000 | $1,976,000 | $0 | $2,549,500 | - The CEO's employment agreement includes incentive compensation equal to **5%** of gross royalties from the Remote Power Patent and a **10%** net interest in royalties from other patents[205](index=205&type=chunk) - In 2022, non-management directors received an annual cash fee of **$40,000**, plus committee fees, and were granted **15,000** RSUs[213](index=213&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=45&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) As of March 10, 2023, executive officers and directors as a group beneficially owned **30.8%** of common stock, with Chairman and CEO Corey M. Horowitz holding **28.4%** Beneficial Ownership as of March 10, 2023 | Owner | Percentage Owned | | :--- | :--- | | All officers and directors as a group | 30.8% | | Corey M. Horowitz | 28.4% | | Steven D. Heinemann | 8.6% | | Goose Hill Capital LLC | 6.2% | [Certain Relationships and Related Transactions, and Director Independence](index=47&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) In 2022, the company repurchased **41,500** shares from director Allison Hoffman for **$100,430**, with the Audit Committee reviewing such transactions, and three of five directors confirmed as independent - On June 1, 2022, the company repurchased **41,500** shares of its common stock from director Allison Hoffman for an aggregate price of **$100,430**[226](index=226&type=chunk) - The Audit Committee is responsible for reviewing and approving related-person transactions[227](index=227&type=chunk) - Three of the five company directors are considered independent[228](index=228&type=chunk) [Principal Accountant Fees and Services](index=47&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) For FY2022, the company incurred total audit fees of **$152,032** and tax fees of **$33,591**, with all services pre-approved by the Audit Committee Accountant Fees for FY 2022 | Fee Type | Amount | | :--- | :--- | | Audit Fees | $152,032 | | Tax Fees | $33,591 | - All audit and permissible non-audit services were pre-approved by the Audit Committee[231](index=231&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=83&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed as part of the Form 10-K report, including corporate documents and SEC certifications - This section provides a list of all financial statements and exhibits included with or incorporated by reference into the Form 10-K filing[358](index=358&type=chunk)[361](index=361&type=chunk) Financial Statements [Consolidated Financial Statements](index=48&type=section&id=Consolidated%20Financial%20Statements) The audited consolidated financial statements for 2022 and 2021 reflect a significant downturn, with a **$2.3 million** net loss in 2022 on zero revenue, decreased assets and equity, and a shift to cash used in operations Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $13,448 | $44,497 | | Total Assets | $57,969 | $64,821 | | Total Liabilities | $2,860 | $4,662 | | Total Stockholders' Equity | $55,109 | $60,159 | Consolidated Statement of Operations Highlights (in thousands) | Account | 2022 | 2021 | | :--- | :--- | :--- | | Revenue | $0 | $36,029 | | Operating (Loss) Income | ($3,903) | $19,586 | | Net (Loss) Income | ($2,326) | $14,281 | Consolidated Statement of Cash Flows Highlights (in thousands) | Account | 2022 | 2021 | | :--- | :--- | :--- | | Net Cash (Used in) Provided by Operating Activities | ($5,436) | $19,499 | | Net Cash (Used in) Provided by Investing Activities | ($22,271) | $2,994 | | Net Cash Used in Financing Activities | ($3,342) | ($3,501) |

NETWORK-1 TECHNOLOGIES, INC. 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 September 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to__________ Commission File Number 1-15288 (Exact Name of Registrant as Specified in Its Ch ...