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

Revenue Performance - Network-1 reported no revenue for the three months ended September 30, 2024, and 2023, while revenue for the nine months ended September 30, 2024, was $100,000, down 87% from $820,000 in the same period of 2023[2]. - The company faces uncertainties regarding future revenue from licensing its intellectual property and ongoing litigation outcomes[9]. Net Loss and Financial Improvement - The net loss for the three months ended September 30, 2024, was $316,000 or $0.01 per share, an improvement from a net loss of $810,000 or $0.03 per share for the same period in 2023[3]. - For the nine months ended September 30, 2024, the net loss was $1,894,000 or $0.08 per share, compared to a net loss of $1,909,000 or $0.08 per share for the same period in 2023[4]. - Comprehensive loss for the period was $316,000 compared to $796,000 in the previous period, indicating a 60% improvement[13]. Cash and Assets - As of September 30, 2024, Network-1 had cash and cash equivalents and marketable securities totaling $41,516,000, indicating sufficient cash to fund operations for the next twelve months[5]. - Total current assets decreased to $41,657,000 from $45,673,000, a decline of approximately 9%[13]. - Cash and cash equivalents decreased to $14,315,000 from $16,896,000, a decline of about 13%[13]. - Total stockholders' equity decreased to $45,579,000 from $50,692,000, a decrease of approximately 10%[13]. - Equity investment decreased to $3,636,000 from $5,249,000, a decline of about 31%[13]. Liabilities and Obligations - Total liabilities decreased to $1,006,000 from $1,585,000, representing a reduction of about 37%[13]. - Accounts payable increased to $371,000 from $125,000, a rise of 196%[13]. - Operating lease obligation, current increased to $40,000 from $23,000, a rise of approximately 74%[13]. Shareholder Returns and Dividends - Network-1 continues to pay semi-annual cash dividends of $0.05 per share, with a total annual dividend of $0.10 per share[7]. - Network-1's Board of Directors periodically reviews its dividend policy, which may change based on earnings and financial requirements[7]. Patent Monetization Strategy - The Remote Power Patent has generated licensing revenue exceeding $188 million from May 2007 through September 30, 2024[8]. - Network-1's strategy includes monetizing five patent portfolios, focusing on high-quality patents with significant licensing opportunities[8]. Share Repurchase Activity - During the three months ended September 30, 2024, Network-1 repurchased 119,615 shares at an average price of $1.58, and a total of 577,060 shares at an average price of $1.84 for the nine months ended September 30, 2024[6].