Network-1 Technologies Reports $150,000 Revenue in Q1 2025, Net Loss Decreases

Network-1 Technologies, Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $150,000, a significant increase from zero revenue in the same period last year. This revenue was primarily derived from a conditional payment related to a settlement involving the company's Remote Power Patent. The company’s operating expenses decreased to $795,000 from $918,000 year-over-year, largely due to reduced professional fees and general administrative costs. Despite the increase in revenue, Network-1 recorded a net loss of $363,000, or $0.02 per share, compared to a net loss of $920,000, or $0.04 per share, in the prior year.

The company’s total assets decreased to $43.9 million as of March 31, 2025, down from $45.4 million at the end of 2024. This decline was attributed to a reduction in cash and cash equivalents, which fell to $12.3 million from $13.1 million, and a decrease in marketable securities. The company’s working capital also decreased to $38.4 million, primarily due to dividend payments and the acquisition of patents. The total stockholders' equity was reported at $42.7 million, down from $44.3 million at the end of the previous fiscal year.

In terms of strategic developments, Network-1 Technologies acquired its Smart Home Patent Portfolio from IoT and M2M Technologies, LLC for $400,000, which includes eight U.S. patents and several pending applications. The company continues to focus on licensing opportunities for its patent portfolios and is actively pursuing additional intellectual property acquisitions. The company has also invested $7 million in ILiAD Biotechnologies, LLC, a clinical-stage biotechnology firm, and reported a share of net losses from this investment amounting to $462,000 for the quarter.

Operationally, the company has seen fluctuations in its cash flows, with net cash provided by operating activities increasing to $159,000 from a negative $596,000 in the prior year. The increase was driven by a lower net loss and changes in accounts payable and accrued expenses. However, net cash provided by investing activities decreased significantly, primarily due to reduced sales and increased purchases of marketable securities. The company’s cash position remains strong, with sufficient liquidity to fund operations for the foreseeable future.

Looking ahead, Network-1 Technologies remains focused on its strategy to monetize its patent portfolios and explore new licensing opportunities. The company acknowledges the inherent risks associated with its business model, particularly the dependency on successful litigation outcomes and the performance of its investment in ILiAD. The management is optimistic about future growth but recognizes the uncertainties that could impact financial performance, including potential changes in market conditions and the outcomes of ongoing legal proceedings.