Network-1(US:NTIP)2025-11-06 21:34Financial Position - As of September 30, 2025, the company reported cash and cash equivalents and marketable securities totaling $37,097,000, with working capital of $36,856,000[95]. - Working capital decreased by $3,210,000 to $36,856,000 as of September 30, 2025, compared to $40,066,000 at December 31, 2024, primarily due to dividend payments and cash used in operating activities[128]. - The company does not have any long-term debt, capital lease obligations, purchase obligations, or other long-term liabilities[134]. - The company maintains cash in money market funds, government securities, certificates of deposit, and short-term fixed income securities, minimizing exposure to interest rate risk[132]. Revenue and Income - The company generated licensing revenue exceeding $188,000,000 from the Remote Power Patent from May 2007 through February 2025, but has ceased asserting this patent[97]. - Revenue for the nine months ended September 30, 2025, was $150,000, compared to $100,000 for the same period in 2024, all from litigation settlements involving the Remote Power Patent[119]. - The net loss for the nine months ended September 30, 2025, was $1,386,000 or $0.06 per share, an improvement from a net loss of $1,894,000 or $0.08 per share for the same period in 2024[126]. Expenses - Operating expenses for the nine months ended September 30, 2025, were $2,315,000, a decrease of $223,000 from $2,538,000 in the same period in 2024[120]. - The company recognized $1,095,000 of net losses related to its equity share of ILiAD for the nine months ended September 30, 2025, compared to $1,613,000 for the same period in 2024[125]. Cash Flow - Net cash used in operating activities decreased by $79,000 to $606,000 for the nine months ended September 30, 2025, from $685,000 for the same period in 2024[129]. - Net cash used in investing activities increased by $3,855,000 to $2,241,000 for the nine months ended September 30, 2025, primarily due to decreased sales of marketable securities of $3,390,000[130]. - Net cash used in financing activities decreased by $920,000 to $2,590,000 for the nine months ended September 30, 2025, primarily due to a decrease of $796,000 in repurchases of common stock[131]. Investments and Risks - The company has invested $7,000,000 in ILiAD, a clinical stage biotechnology company, which involves significant risk and uncertainty[96]. - The company is currently involved in multiple patent infringement litigations, including cases against Optiver and Samsung, which may impact future revenue[99][100]. Strategic Goals - The company aims to continue its licensing efforts and acquire additional intellectual property assets to enhance monetization opportunities[105]. Compliance and Controls - The company’s financial statements are prepared in accordance with GAAP, requiring management to make estimates that could materially affect financial condition or results of operations[135]. - There were no changes in internal control over financial reporting that materially affected the company during the fiscal quarter ended September 30, 2025[140]. - The company does not have any off-balance sheet arrangements[133].