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 September 30, 2024 and to date, no material events occurred with respect to our legal proceedings, except for the following: (i) with respect to our litigation against Meta(Facebook) involving certain of our Mirror Worlds patents, the oral argument on appeal to the U.S. Court of Appeals for the Federal Circuit took place on October 11. 2024 and a decision is pending (see Note I[2] to our unaudited condensed consolidated financial statements included herein), and (ii) on August 6, 2024, plaintiff Mitchell Mizel filed a putative 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. The Company strongly denied the allegations. On October 3, 2024, the litigation was settled on terms not material to the Company and the putative class action complaint was withdrawn with prejudice (see Note I[4] to our unaudited condensed consolidated financial statements included herein).