Network-1 Technologies Reports Increased Net Loss and No Revenue for Q2 2026

Network-1 Technologies, Inc. reported its financial results for the second quarter of 2026, revealing a net loss of $655,000, or $0.03 per share, compared to a net loss of $463,000, or $0.02 per share, for the same period in 2025. The company did not generate any revenue during the quarter, maintaining the same status as the previous year, which had recorded $150,000 in revenue. The increase in net loss was attributed to higher operating expenses, which rose to $1,013,000 from $720,000, primarily due to increased litigation-related costs.

For the six months ending June 30, 2026, Network-1 reported a net loss of $1,166,000, or $0.05 per share, compared to a loss of $826,000, or $0.04 per share, in the same period of 2025. Operating expenses for the first half of 2026 totaled $2,428,000, up from $1,515,000 in 2025. The increase was largely driven by a rise in professional fees and litigation costs. Interest and dividend income also decreased to $734,000 from $929,000, reflecting lower available funds for investment and a shift to lower-yielding securities.

The company’s balance sheet as of June 30, 2026, showed total assets of $38,466,000, down from $40,332,000 at the end of 2025. Cash and cash equivalents decreased to $9,435,000 from $13,402,000, while marketable securities increased slightly to $24,317,000 from $23,467,000. The decline in cash was attributed to net cash used in operating activities, dividend payments, and patent acquisitions. The company’s working capital also decreased to $33,179,000 from $36,336,000.

Strategically, Network-1 continues to focus on its intellectual property assets, which include 121 U.S. patents, with ongoing litigation involving its M2M/IoT and HFT patent portfolios. The company has four pending patent infringement litigations, which it hopes will lead to future revenue generation. Additionally, Network-1 has made significant investments in ILiAD Biotechnologies, totaling $7 million, and recently recorded a gain of $1,052,000 from this investment due to a financing round completed by ILiAD.

Looking ahead, Network-1 Technologies anticipates that its future revenue will depend on the successful monetization of its patent portfolios and the outcomes of its ongoing litigations. The company has expressed its commitment to continue pursuing licensing opportunities and acquiring additional high-quality patents. However, it also acknowledges the risks associated with its business model, including the uncertainty of litigation outcomes and market conditions that could impact its financial performance.