Network-1(NTIP) - 2025 Q2 - Quarterly Results

Financial Performance Q2 2025 Financial Results 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] H1 2025 Financial Results 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] - All revenue in both 2025 and 2024 periods was derived from litigation settlements concerning the company's Remote Power Patent[2] Financial Position 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] Business and Operational Highlights Patent Litigation and Portfolio Development 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] - 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] Capital Allocation 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] 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] Financial Statements Condensed Consolidated Statements of Operations 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 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 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] - Network-1's Remote Power Patent has generated licensing revenue exceeding $188,000,000 from May 2007 through June 30, 2025[10] Forward-Looking Statements 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] - 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]