Network-1 reports year-end financial results for 2023

[ad_1]

NEW CANAAN, CT / ACCESSWIRE / March 8, 2024 / Network-1 Technologies, Inc. (NYSE American:NTIP) (“Network-1”), an intellectual property acquisition, development, licensing and monetization company, today announced its financial results for the year ended December 31, 2023. announced.

Network-1 had revenue of $2,601,000 for the year ended December 31, 2023 and no revenue for the year ended December 31, 2022. The proceeds realized in 2023 were due to a settlement agreement in a lawsuit related to Network-1’s remote power patents.. Network-1 increased operating expenses by $933,000 in 2023 compared to 2022. This was primarily due to his $874,000 increase in cost of revenue related to contingent attorney fees and incentive bonus compensation related to the litigation settlement.

Interest and dividend income for 2023 was $1,868,000 and interest and dividend income for 2022 was $1,020,000. The $848,000 increase in interest and dividend income in 2023 is primarily due to his higher yielding fixed income investments as interest rates in 2023 were generally higher. Additionally, in 2023, Network-1 recorded realized and unrealized gains on marketable securities of $525,000, compared to realized and unrealized losses on marketable securities of $1,351,000 in 2022. did. The improvement in unrealized and realized gains in 2023 was primarily due to favorable interest rates. Bond interest rate environment in 2023 compared to 2022.

Network-1 reported a net loss of $1,457,000, or $0.06 per basic and diluted share, for the year ended December 31, 2023, compared to a net loss of $1,457,000, or $0.06 per basic and diluted share, for the year ended December 31, 2022. reported a net loss of $2,326,000, or $0.10 per share on an basic and diluted basis.

As of December 31, 2023, Network-1’s primary sources of liquidity consisted of cash and cash equivalents and marketable securities of $45,467,000 and working capital of $44,850,000. Management believes that, based on Network-1’s current cash, cash equivalents, and marketable securities positions, Network-1 has sufficient liquidity to fund its operations for the foreseeable future. I think we are prepared.

On June 14, 2023, Network-1’s Board of Directors approved an extension and increase of Network-1’s stock repurchase program to repurchase up to $5,000,000 of common stock over a subsequent 24-month period. During the year ended December 31, 2023, Network-1 repurchased a total of 428,132 shares of its common stock pursuant to its stock repurchase program at approximately $955,000, or an average price of $2.23 per share. From the commencement of the share repurchase program (August 2011) through December 31, 2023, Network‑1 has purchased a total of 9,532,982 common shares for approximately $18,713,000 (excluding commissions) or an average price per share. I bought it back for $1.94.

Network-1’s dividend policy consists of semi-annual cash dividends of $0.05 per share ($0.10 per year), paid in March and September of each year. In March 2023 and 2024, Network‑1 continued to declare and pay dividends in accordance with its dividend policy. Network-1’s dividend policy is subject to periodic review by the Board of Directors and may change at any time depending on Network-1’s earnings, financial requirements and other factors then existing.

About Network One Technologies Co., Ltd.

Network-1 Technologies, Inc. is committed to developing, licensing, and protecting intellectual property and proprietary technology. Network-1 works with inventors and patent owners to help develop and monetize patented technology. Network-1 currently holds 100 U.S. patents covering various telecommunications and data networking technologies, as well as technologies related to document stream operating systems, media content identification, and high-frequency trading. Network-1’s current strategy includes continuing to pursue intellectual property licensing opportunities. Network-1’s strategy is to acquire and invest in high-quality patents that management believes have the potential to create significant licensing opportunities, as Network-1 has accomplished with its Remote Power patents and Mirror Worlds patent portfolio. It’s about focusing. Network-1’s Remote Power patents generated over $188 million in license revenue from May 2007 to December 31, 2023. Network-1 achieved license and other income of $47.15 million through December 31, 2023 with respect to the Mirrorworld patent portfolio.

This release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements address future events and circumstances with respect to Network-1’s business plans. Such statements include numerous statements disclosed in Network-1’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission on March 8, 2024. subject to risk factors and uncertainties. , the uncertainty of revenues from licensing Network-1’s intellectual property; the uncertainty of the outcome of pending litigation involving Network-1’s Cox patent portfolio and remote power patents; a non-infringement judgment, a dismissal of Network-1’s lawsuit against Meta Platforms, Inc. (formerly Facebook), and whether Network-1 obtains or invests in high-quality patents with significant licensing opportunities. Network-1’s ability to successfully execute its strategy to generate revenue and profits from the Cox Patent Portfolio, M2M/IoT Patent Portfolio, HFT Patent Portfolio, and additional revenue and profits from the Remote Power Patent and Mirror Worlds Patent Portfolios; the ability of Network-1 to enter into additional license agreements, the uncertainty as to whether cash dividends will continue to be paid; Network-1’s ability to enter into strategic relationships with third parties to obtain licenses; the increasing development of artificial intelligence could have a material impact on Network-1’s business, and Network-1’s ability to enter into strategic relationships with third parties to obtain licenses; The risk of being classified as a private holding company may result in Network-1 issuing special cash dividends. stockholders, future economic conditions, technological changes, legislative, regulatory and competitive developments; Except as otherwise required to be disclosed in periodic reports, Network-1 expressly disclaims any future obligation or undertaking to update or revise any forward-looking statements contained herein.

Network-1’s statement of operations, comprehensive loss and balance sheet are attached.

For more information regarding the highlights referenced above, please refer to Network-1’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 8, 2024 .

Network One Technologies Co., Ltd.
Consolidated Statement of Income and Comprehensive Loss

	year ended December 31
	2023			2022
revenue	$	2,601,000		$

Operating expenses:
cost of revenue		874,000				–
Professional fees and related costs		807,000				809,000
General and administration		2,889,000				2,778,000
Patent amortization		266,000				316,000

total operating expenses		4,836,000				3,903,000

operating loss		(2,235,000	)			(3,903,000	)
Other income/income
Interest and dividend income, net		1,868,000				1,020,000
Profit from converting banknotes		–				271,000
Equity method investment income		–				3,883,000
Net realized gain (loss) and unrealized gain (loss) on securities		525,000				(1,351,000	)
Other gross income, net		2,393,000				3,823,000

Pre-tax profit (loss) and its percentage
Net loss of equity method affiliates		158,000				(80,000	)

Income tax regulations:
the current		11,000				–
Deferred taxes, net		(399,000	)			607,000
Total corporate tax (benefits) expenses		(388,000	)			607,000
Profit (loss) before distributing net losses Equity method companies:		546,000				(687,000	)
Net loss ratio of equity method affiliates		(2,003,000	)			(1,639,000	)
net loss	$	(1,457,000	)		$	(2,326,000	)

Net loss per share:
basic	$	(0.06	)		$	(0.10	)
diluted	$	(0.06	)		$	(0.10	)

Weighted average common shares outstanding:
basic		23,791,287				23,825,917
diluted		23,791,287				23,825,917
Cash dividends declared per share	$	0.10			$	0.10

net loss	$	(1,457,000	)		$	(2,326,000	)
Other comprehensive income (loss)
Unrealized gains and losses on corporate bonds and corporate bonds After taxes incurred during the year		14,000				(2,000	)

total loss	$	(1,443,000	)		$	(2,328,000	)

Network One Technologies Co., Ltd.
Consolidated balance sheet

	December 31
	2023			2022
assets:
Current assets:
cash and cash equivalents	$	16,896,000		$	13,448,000
Marketable securities (fair value)		28,571,000			34,991,000
advance tax		–			177,000
Other current assets		206,000			348,000
Total current assets		45,673,000			48,964,000
Other assets:
Patents (excluding accumulated amortization)		1,326,000			1,592,000
stock investment		5,249,000			7,252,000
Operating lease right-of-use asset		16,000			161,000
deposit		13,000			–
Total other assets		6,604,000			9,005,000
Total assets	$	52,277,000		$	57,969,000
Debt and equity:

Current debt:
accounts payable	$	125,000		$	507,000
Accrued corporate taxes, etc.		–			115,000
unpaid salary		378,000			317,000
Other accrued expenses		297,000			587,000
Operating lease obligations, current		23,000			79,000

Total current liabilities		823,000			1,605,000

Long term responsibility:
Deferred tax liability		762,000			1,161,000
Operating lease obligations, non-current		–			94,000
Total debt	$	1,585,000		$	2,860,000

Promises and Contingencies (See Note I)

Shareholders’ equity

Preferred stock, $0.01 par value. 10,000,000 shares authorized. No issued or outstanding as of December 31, 2023 and December 31, 2022	$	–		$	–
Common stock, par value $0.01. 50,000,000 shares authorized. The number of outstanding shares as of December 31, 2023 and December 31, 2022 is 23,553,908 shares and 23,863,639 shares, respectively.		235,000			239,000
Additional paid-in capital		67,446,000			66,939,000
cumulative deficit		(16,989,000	)		(12,055,000	)
Accumulated other comprehensive loss		–			(14,000	)

Total shareholders’ equity		50,692,000			55,109,000
Total debt and stockholders’ equity	$	52,277,000		$	57,969,000