Exhibit 99.1

FOR IMMEDIATE RELEASE

 

Corey M. Horowitz, Chairman and CEO

Network-1 Technologies, Inc.

212-829-5770

 

 

 

NETWORK-1 REPORTS FIRST QUARTER 2020 RESULTS

 

New York, New York May 19, 2020 - Network-1 Technologies, Inc. (NYSE AMERICAN: NTIP), a company specializing in the development, licensing, and protection of its intellectual property assets, today announced financial results for the quarter ended March 31, 2020.

Network-1 had revenue of $161,000 for the three months ended March 31, 2020 as compared to revenue of $606,000 for the three months ended March 31, 2019. The decrease in revenue of $445,000 for the three months ended March 31, 2020 was due to a decline in revenue from certain licensees, licensing revenue of $130,000 in connection with the conversion of a royalty bearing license to a fully-paid license during the three months ended March 31, 2019 and the expiration of Network-1’s Remote Power Patent on March 7, 2020.

Network-1 reported a net loss of $1,337,000 or $(0.06) per share basic and diluted for the three months ended March 31, 2020 compared with a net loss of $240,000 or $(0.01) per share basic and diluted for the three months ended March 31, 2019. The increased net loss of $1,097,000 for the three months ended March 31, 2020 was primarily due to decreased revenue of $445,000, Network-1’s share of net losses of $293,000 from its equity method investment, and net realized and unrealized losses on marketable securities of $322,000.

At March 31, 2020, Network-1’s principal sources of liquidity consisted of cash and cash equivalents and marketable securities of $45,003,000 and working capital of $44,755,000. Network-1 believes based on its current cash position that it will have sufficient cash to fund its operations for the foreseeable future.

Since inception of Network-1’s Share Repurchase Program in August 2011 through March 31, 2020, Network-1 has repurchased an aggregate of 8,562,070 shares of its common stock at an aggregate cost of $16,058,472 (exclusive of commissions) or an average per share price of $1.88. During the three months ended March 31, 2020, Network-1 repurchased 72,300 shares of its common stock at an aggregate cost of $151,626 (exclusive of commissions) or an average per share price of $2.10. At March 31, 2020, the remaining dollar value of shares that may be repurchased under the Share Repurchase Program was $4,293,632.

On December 7, 2016, the Board of Directors of Network-1 approved the initiation of a dividend policy providing for the payment of a regular semi-annual dividend of $0.05 per common share commencing in 2017. Network-1 anticipated paying the semi-annual dividends in March and September of each year. All dividends were paid in accordance with the dividend policy. It was anticipated that the semi-annual regular dividend will continue to be paid through March 2020 (the expiration of Network-1’s Remote Power Patent) provided that Network-1 continued to receive royalties from licensees of its Remote Power Patent. On February 19, 2020, Network-1’s Board of Directors declared a semi-annual cash dividend of $0.05 per common share with a payment date of March 31, 2020 to all shareholders of record on March 16, 2020. The Board of Directors is reviewing Network-1’s dividend policy.

 

 

 

 

ABOUT NETWORK-1 TECHNOLOGIES, INC.

 

Network-1 Technologies, Inc. is engaged in the development, licensing and protection of its intellectual property and proprietary technologies. Network-1 works with inventors and patent owners to assist in the development and monetization of their patented technologies. Network-1 currently owns eighty-three (83) patents covering various telecommunications and data networking technologies as well as technologies relating to document stream operating systems and the identification of media content. Network-1's current strategy includes continuing to pursue licensing opportunities for its Remote Power Patent and its efforts to monetize three patent portfolios (the Cox, Mirror Worlds and M2M/IoT Patent Portfolios). Network-1's strategy is to focus on acquiring and investing in high quality patents which management believes have the potential to generate significant licensing opportunities  as Network-1 has achieved with respect to its Remote Power Patent and Mirror Worlds Patent Portfolio. Network-1’s Remote Power Patent has generated licensing revenue in excess of $147,000,000 from May 2007 through March 31, 2020. Network-1 has achieved licensing and other revenue of $47,150,000 through March 31, 2020 with respect to its Mirror Worlds 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 conditions concerning Network-1's business plans. Such statements are subject to a number of risk factors and uncertainties as disclosed in the Network-1's Annual Report on Form 10-K for the year ended December 31, 2019 and its Quarterly Report on 10-Q for the three months ended March 31, 2020 filed with the Securities and Exchange Commission including, among others, Network-1’s uncertain revenue stream, the risk that Network-1 will not receive significant licensing revenue from Cisco and certain other licensees if the District Court order confirming the HP jury verdict finding of non-infringement is not reversed by the Federal Circuit Court of Appeals, the risk that the global COVID-19 pandemic could have an adverse impact on Network-1’s business, the ability of Network-1 to successfully execute its strategy to acquire or make investments in high quality patents with significant licensing opportunities, Network-1's ability to achieve revenue and profits from its Cox Patent Portfolio, its M2M/IoT Patent Portfolio and additional revenue and profit from its Mirror Worlds Patent Portfolio as well as a return on its investment in IliAD Biotechnologies, LLC or other intellectual property it may acquire or finance in the future, the ability of Network-1 to enter into additional license agreements, uncertainty as to whether cash dividends will continue be paid, the uncertainty of patent litigation and proceedings at the United States Patent and Trademark Office, the difficulty in Network-1 verifying royalty amounts owed to it by its licensees, Network-1's ability to enter into strategic relationships with third parties to license or otherwise monetize their intellectual property, the risk in the future of Network-1 being classified as a Personal Holding Company, future economic conditions and technology changes and 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 statement contained herein.

 

 

The unaudited condensed consolidated statements of operations and comprehensive loss and unaudited condensed consolidated balance sheet are attached.

 

 

 

 

 

 

 

 

 

 

 

 

 

 Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited)

 

 

   Three Months Ended 
   March 31, 
         
   2020   2019 
           
           
REVENUE  $161,000   $606,000 
           
OPERATING EXPENSES:          
Costs of revenue   32,000    146,000 
Professional fees and related costs   399,000    307,000 
General and administrative   486,000    488,000 
Amortization of patents   72,000    54,000 
Stock-based compensation   72,000    144,000 
           
TOTAL OPERATING EXPENSES   1,061,000    1,139,000 
           
OPERATING LOSS   (900,000)   (533,000)
           
OTHER INCOME (LOSS):          
Interest and dividend income, net   178,000    301,000 
Net realized and unrealized gain (loss) on marketable securities   (322,000)   23,000 
Total other income (loss), net   (144,000)   324,000 
           
LOSS BEFORE INCOME TAXES AND EQUITY IN NET LOSSES OF EQUITY METHOD INVESTEE   (1,044,000)   (209,000)
           
INCOME TAXES PROVISION (BENEFIT):          
Current        
Deferred taxes, net       (65,000)
Total income taxes provision (benefit)       (65,000)
           
LOSS BEFORE SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE:  $(1,044,000)  $(144,000)
           
           
SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE  $(293,000)  $(96,000)
           
NET LOSS  $(1,337,000)  $(240,000)
           
Net Loss Per Share          
Basic  $(0.06)  $(0.01)
Diluted  $(0.06)  $(0.01)
           
Weighted average common shares outstanding:          
Basic   24,029,513    23,745,848 
Diluted   24,029,513    23,745,848 
           
Cash dividends declared per share  $0.05   $0.05 
           
NET LOSS  $(1,337,000)  $(240,000)
           
OTHER COMPREHENSIVE INCOME (LOSS)          
Net unrealized holding gain (loss) on corporate bonds and notes during the period, net of tax   (163,000)   115,000 
Amounts reclassified from accumulated other comprehensive income (loss)   (20,000)   (5,000)
Net other comprehensive income (loss)   (183,000)   110,000 
           
COMPREHENSIVE LOSS  $(1,520,000)  $(130,000)

 

 

 

 

 

Condensed Consolidated Balance Sheet (Unaudited)

 

 

Cash and cash equivalents  $26,594,000 
      
Marketable securities, at fair value  $18,409,000 
      
Total current assets  $45,222,000 
      
Total assets  $51,151,000 
      
Total current liabilities  $467,000 
      
Total long term liabilities  $0 
      
Total stockholders’ equity  $50,684,000 
      

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The following information was filed by Network 1 Technologies Inc (NTIP) on Friday, May 22, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one quarter to another to evaluate Network 1 Technologies Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Network 1 Technologies Inc.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account