Network-1(NTIP) - 2024 Q3 - Quarterly Report

Financial Performance - The company reported no revenue for the three months ended September 30, 2024, and September 30, 2023, due to no litigation outcomes during these periods [82]. - Operating expenses for the nine months ended September 30, 2024, were $2,538,000, a decrease of $466,000 compared to $3,004,000 for the same period in 2023 [86]. - The company recognized a net loss of $1,894,000 or $0.08 per share for the nine months ended September 30, 2024, compared to a net loss of $1,909,000 or $0.08 per share for the same period in 2023 [89]. - The company recorded interest and dividend income of $1,407,000 for the nine months ended September 30, 2024, an increase of $246,000 compared to $1,161,000 for the same period in 2023 [87]. Assets and Capital - As of September 30, 2024, the company had cash and cash equivalents and marketable securities totaling $41,516,000, with working capital of $41,058,000 [72]. - Working capital decreased by $3,792,000 from December 31, 2023, primarily due to dividend payments of $2,366,000 and common stock repurchases of $1,083,000 [91]. Investments and Revenue Potential - The company has invested $7,000,000 in ILiAD, a clinical stage biotechnology company, which involves significant risk and uncertainty [73]. - Licensing revenue from the Remote Power Patent exceeded $188,000,000 from May 2007 through March 7, 2020, after which no further licensing revenue is received [74]. - The company continues to seek opportunities to acquire additional intellectual property assets to enhance its revenue potential [77]. - The company has ongoing litigation involving its patents, including appeals against Google and Meta, with the potential for future revenue generation [76]. Litigation and Legal Matters - Ongoing litigation against Meta regarding Mirror Worlds patents with oral argument on appeal held on October 11, 2024, decision pending [102]. - A putative class action filed against the Company was settled on October 3, 2024, with terms not material to the Company [102]. Internal Controls and Procedures - No material changes in internal control over financial reporting during the fiscal quarter ended September 30, 2024 [100]. - The Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures are effective as of the end of the reporting period [99].