Network-1(US:NTIP)2024-08-12 20:33Revenue 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]