NETWORK-1 TECHNOLOGIES INC

For a description of our legal proceedings see Note I and Note N to our unaudited condensed consolidated financial statements included in this Quarterly Report and Item 3. Legal Proceedings of our Annual Report on Form 10-K for the year ended December 31, 2023 (filed with the SEC on March 8, 2024). During the three months ended June 30, 2024 and to date, no material events occurred with respect to our legal proceedings, except for the following: (i) on April 24, 2024, in connection with our patent infringement litigation against Google Inc and You Tube, LLC, the U.S. District Court for the Southern District of New York issued a judgment dismissing our patent infringement claims finding that the asserted claims of two of the patents are invalid for indefiniteness and granting summary judgment that the asserted claims of another asserted patent are not infringed by Google’s accused system. The Court’s ruling disposes of all of our claims in the case. On May 14, 2024, the Company filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit (see Note I[1] to our unaudited condensed consolidated financial statements included herein) and (ii) on August 6, 2024, plaintiff Mitchell Mizel filed a class action against the Company and its Chairman and Chief Executive Officer in the United States District Court, Southern District of New York, alleging, among other things, that the Company is required to register as an “investment company” under the Investment Company Act of 1940 (see Note N to our unaudited condensed consolidated financial statements included herein).