NETWORK-1 TECHNOLOGIES, INC.
For the period ended Jun 30, 2025. Filed Aug 8, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 8, 2025
NTIP$1.600.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0001072613-25-000350
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001072613-25-000529
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 40 previous paragraphs and 47 current paragraphs.
20 unchanged; 18 reworded; 5 added; 2 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
On June 27, 2025, we commenced patent litigation against Samsung Electronics Co., LTD and Samsung Electronics America, Inc. (collectively, “Samsung”) in the United States District Court for the Eastern District of Texas for infringement of certain patents within our M2M/IoT Patent Portfolio. The lawsuit alleges that Samsung infringes our patents by supporting certain eSIM (embedded Subscriber Identification Module) and 5G technologies in its mobile devices, including its Galaxy smartphones, watches and tablets (see Note I[1] to our unaudited condensed consolidated financial statements included herein).
Current report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Current report
Revenue. We had revenue of $150,000 for the six months ended June 30, 2025 and $100,000 in revenue for the six months ended June 30, 2024. All such revenue was from litigation settlements involving our Remote Power Patent (See Note I[4] to our unaudited condensed consolidated financial statements included herein).
Current report
Income Taxes. For the six months ended June 30, 2025, we realized a $31,000 current tax benefit related to a federal income tax refund, as compared to no current tax expense for federal, state and local income taxes for the same period in 2024. We had a deferred tax benefit of $149,000 and $284,000 for the six months ended June 30, 2025 and 2024, respectively. The decrease of $135,000 in our deferred tax benefit was primarily due to a decrease of $564,000 in our recognized net losses of our equity method investee for the six months ended June 30, 2025.
Current report
Net cash used in operating activities decreased by $158,000 to $502,000 for the six months ended June 30, 2025, from $660,000 for the six months ended June 30, 2024. The decrease was primarily attributable to the decrease in our net loss of $752,000, offset by non-cash income and expense items of $698,000, including reduced recognized losses of our equity method investee of $564,000. The decrease in cash used in operating activities is also a result of a net decrease in cash used in operating assets and liabilities of $104,000, including decreased cash used in payment of accrued expenses of $139,000, offset by decreased cash provided by accounts payable of $80,000**.**
Removed paragraphs (2)
Previous report
Interest and Dividend Income. Interest and dividend income for the three months ended March 31, 2025, was $484,000 as compared to $431,000 for the three months ended March 31, 2024 as a result of investing in higher yielding fixed income investments with longer maturities.
Previous report
Net cash provided by (used in) operating activities increased by $755,000 to $159,000 for the three months ended March 31, 2025, from ($596,000) for the three months ended March 31, 2024. The increase primarily attributable to the lower net loss of $557,000 and increased accounts payable of $322,000 and accrued expenses of $155,000 related to the timing of certain payments, offset by the reduced loss recognized with respect to our equity method investee (ILiAD) of $166,000 and increased unrealized gains on marketable securities of $169,000.
Reworded paragraphs (18)
Previous wording
Our principal business is the development, licensing and protection of our intellectual property assets. We presently own one-hundred fourteen (114) U.S. patents, fifty-four (54) of which have expired, and sixteen (16) international patents related to (i) the M2M/IoT patent portfolio (the “M2M/IoT Patent Portfolio”) relating to, among other things, enabling technology for authenticating and using eSIM (embedded Subscriber Identification Module) technology in Internet of Things (“IoT”), Machine-to-Machine, and other mobile devices, including smartphones, tablets and computers, as well as automobiles; (ii) the HFT patent portfolio (the “HFT Patent Portfolio”) covering certain advanced technologies relating to high frequency trading, which inventions specifically address technological problems associated with speed and latency and provide critical latency gains in trading systems where the difference between success and failure may be measured in nanoseconds; (iii) the Cox patent portfolio (the “Cox Patent Portfolio) relating to enabling technology for identifying media content on the Internet and taking further actions to be performed after such identification; (iv) the smart home patent portfolio (the “ Smart Home Patent Portfolio”) relating to, among other things, the enabling technology to support the interoperability of smart home IoT devices; (v) the Mirror Worlds patent portfolio (the “Mirror Worlds Patent Portfolio”) relating to foundational technologies that enable unified search and indexing, displaying and archiving of documents in a computer system; and (vi) the remote power patent (the “Remote Power Patent”) covering delivery of Power over Ethernet (PoE) cables for the purpose of remotely powering network devices, such as wireless access ports, IP phones and network based cameras.
Current wording
Our principal business is the development, licensing and protection of our intellectual property assets. We presently own one-hundred fifteen (115) U.S. patents, fifty-four (54) of which have expired, and seventeen (17) international patents related to (i) the M2M/IoT patent portfolio (the “M2M/IoT Patent Portfolio”) relating to, among other things, enabling technology for authenticating and using eSIM (embedded Subscriber Identification Module) technology in Internet of Things (“IoT”)Machine-to-Machine, and other mobile devices, including smartphones, tablets and computers, as well as automobiles; (ii) the HFT patent portfolio (the “HFT Patent Portfolio”) covering certain advanced technologies relating to high frequency trading, which inventions specifically address technological problems associated with speed and latency and provide critical latency gains in trading systems where the difference between success and failure may be measured in nanoseconds; (iii) the Cox patent portfolio (the “Cox Patent Portfolio) relating to enabling technology for identifying media content on the Internet and taking further actions to be performed after such identification; (iv) the smart home patent portfolio (the “Smart Home Patent Portfolio”) relating to, among other things, the enabling technology to support the interoperability of smart home IoT devices; (v) the Mirror Worlds patent portfolio (the “Mirror Worlds Patent Portfolio”) relating to foundational technologies that enable unified search and indexing, displaying and archiving of documents in a computer system; and (vi) the remote power patent (the “Remote Power Patent”) covering delivery of Power over Ethernet (PoE) cables for the purpose of remotely powering network devices, such as wireless access ports, IP phones and network based cameras.
Previous wording
Although fifty-four (54) of our U.S. patents have expired, we can assert expired patents against third parties but only for past damages up to the patent expiration date. We currently have a pending appeal involving certain expired patents within our Cox Patent Portfolio and our revenue for the three months ended March 31, 2025 related to a settlement payment received from litigation involving our expired Remote Power Patent. (see Note I to our unaudited condensed consolidated financial statements included herein).
Current wording
Although fifty-four (54) of our U.S. patents have expired, we can assert expired patents against third parties but only for past damages up to the patent expiration date. We currently have a pending appeal involving certain expired patents within our Cox Patent Portfolio and our revenue for the six months ended June 30, 2025 related to a settlement payment received from litigation involving our expired Remote Power Patent. (see Note I[4] to our unaudited condensed consolidated financial statements included herein).
Previous wording
At March 31, 2025 our principal sources of liquidity consisted of cash and cash equivalents and marketable securities of $39,193,000 and working capital of $38,443,000. Based on our cash position, we review opportunities to acquire additional intellectual property as well as evaluate other strategic opportunities.
Current wording
At June 30, 2025 our principal sources of liquidity consisted of cash and cash equivalents and marketable securities of $38,485,000 and working capital of $38,288,000. Based on our cash position, we review opportunities to acquire additional intellectual property as well as evaluate other strategic opportunities.
Previous wording
To date we have invested $7,000,000 in ILiAD, a clinical stage biotechnology company with an exclusive license to seventy-six (76) patents (see Note J to our unaudited condensed consolidated financial statements included herein). Our investment continues to involve significant risk and the outcome is uncertain.
Current wording
To date we have invested $7,000,000 in ILiAD, a clinical stage biotechnology company with an exclusive license to seventy-seven (77) patents (see Note J to our unaudited condensed consolidated financial statements included herein). Our investment continues to involve significant risk and the outcome is uncertain.
Previous wording
We have been dependent upon our Remote Power Patent for a significant portion of our revenue. Our Remote Power Patent has generated licensing revenue in excess of $188,000,000 from May 2007 through March 31, 2025. We no longer receive licensing revenue for our Remote Power Patent for any period subsequent to March 7, 2020 (the expiration date of the patent). All of our revenue for 2024 and for the three months ended March 31, 2025 was from settlements involving our Remote Power Patent. If we are unable to successfully monetize our other patent portfolios or achieve a successful outcome of our investment in ILiAD, our business, financial condition and results of operations will be negatively impacted.
Current wording
We have been dependent upon our Remote Power Patent for a significant portion of our revenue. Our Remote Power Patent has generated licensing revenue in excess of $188,000,000 from May 2007 through June 30, 2025. We no longer receive licensing revenue for our Remote Power Patent for any period subsequent to March 7, 2020 (the expiration date of the patent). All of our revenue for 2024 and for the six months ended June 30, 2025 was from settlements involving our Remote Power Patent.
Previous wording
In December 2024, we commenced patent infringement litigations against Citadel Securities, LLC and Jump Trading, LLC involving our HFT patent Portfolio. In addition, we have appealed the judgment of the District Court dismissing our litigation against Google and YouTube involving certain patents within our Cox Patent Portfolio. We also intend to commence efforts to monetize certain patents within our M2M/IoT patent portfolio. We may not achieve successful outcomes of such appeals or litigation involving our patent assets. Our revenue is largely dependent on our ability to achieve successful litigation outcomes.
Current wording
In December 2024, we commenced patent infringement litigations against Citadel Securities, LLC and Jump Trading, LLC involving our HFT Patent Portfolio (see Note I[2] to our unaudited condensed consolidated financial statements included herein).
Previous wording
On March 31, 2025, we acquired our Smart Home Patent Portfolio from IoT and M2M Technologies, LLC, relating to, among other things, enabling technology to support the interoperability of smart home IoT devices. The patent portfolio currently consists of eight (8) U.S. patents and one (1) international patent as well as eleven (11) U.S. pending patent applications and five (5) pending international patents (see Note G[2] to the unaudited condensed consolidated financial statements included herein).
Current wording
On March 31, 2025, we acquired our Smart Home Patent Portfolio from IoT and M2M Technologies, LLC, relating to, among other things, enabling technology to support the interoperability of smart home IoT devices. The patent portfolio currently consists of eight (8) U.S. patents and one (1) international patent as well as eleven (11) U.S. pending patent applications and five (5) pending international patents (see Note G[2] to our unaudited condensed consolidated financial statements included herein).
Previous wording
Revenue. We had revenue of $150,000 for the three months ended March 31, 2025 and no revenue for the three months ended March 31, 2024. The revenue for the three months ended March 31, 2025 related to a conditional payment received from a defendant with respect to a settlement involving our Remote Power Patent (see Note I[3] to our unaudited condensed consolidated financial statements included herein).
Current wording
Revenue. We had no revenue for the three months ended June 30, 2025 and $100,000 in revenue for the three months ended June 30, 2024 from a litigation settlement involving our Remote Power Patent (See Note I[4] to our unaudited condensed consolidated financial statements included herein).
Previous wording
Income Taxes. For the three months ended March 31, 2025, we had no current tax expense for federal, state and local income taxes and a deferred tax benefit of $111,000. For the three months ended March 31, 2024, we had no current tax expense for federal, state and local income taxes and a deferred tax benefit of $147,000.
Current wording
Income Taxes. For the three months ended June 30, 2025, we realized a $31,000 current tax benefit related to a federal income tax refund, as compared to no current tax expense for federal, state and local income taxes for the same period in 2024. We had a deferred tax benefit of $38,000 and $137,000 for the three months ended June 30, 2025 and 2024, respectively. The decrease of $99,000 was caused primarily by a decrease in the net losses of ILiAD recognized in 2025.
Previous wording
Share of Net Losses of Equity Method Investee. We recognized $462,000 of net losses during the three month period ended March 31, 2025, related to our equity share of ILiAD net losses, as compared to a recognized net loss of $628,000 for the three months ended March 31, 2024. We anticipate continuing to record our share of net losses from ILiAD.
Current wording
Share of Net Losses of Equity Method Investee. We recognized $279,000 of net losses during the three month period ended June 30, 2025, related to our equity share of ILiAD net losses, as compared to a recognized net loss of $677,000 for the three months ended June 30, 2024. We anticipate continuing to record our share of net losses from ILiAD.
Previous wording
Operating Expenses. Operating expenses for the three months ended March 31, 2025 were $795,000 as compared to $918,000 for the three months ended March 31, 2024. The decrease in operating expenses of $123,000 was primarily as a result of decreased professional fees of $98,000.
Current wording
Operating Expenses. Operating expenses for the six months ended June 30, 2025 were $1,515,000 as compared to $1,642,000 for the six months ended June 30, 2024. The decrease in operating expenses of $127,000 was primarily as a result of lower professional fees and related costs of $81,000 from decreased revenue from litigation settlements in 2025 and decreased general and administrative expenses of $67,000.
Previous wording
General and administrative expenses were $602,000 for the three months ended March 31, 2025 as compared to $669,000 for the three months ended March 31, 2024. The decrease in general and administrative expenses of $67,000 was primarily due to lower stock-based compensation of $34,000 and state franchise taxes of $38,000.
Current wording
General and administrative expenses were $1,121,000 for the six months ended June 30, 2025 as compared to $1,188,000 for the six months ended June 30, 2024. The decrease in general and administrative expenses of $67,000 was primarily due to decreased stock-based compensation of $49,000.
Previous wording
Realized and Unrealized Gain on Marketable Securities. For the three months ended March 31, 2025, we recorded realized and unrealized gains on marketable securities of $149,000, as compared to $48,000 for the three months ended March 31, 2024. The increase was largely due to the timing of the maturities of fixed income investments.
Current wording
Realized and Unrealized Gain on Marketable Securities. For the six months ended June 30, 2025, we recorded realized and unrealized gains on marketable securities of $171,000, as compared to $102,000 for the six months ended June 30, 2024. The increase was largely due to the timing of the maturities of fixed income investments.
Previous wording
Net Loss. As a result of the foregoing, we realized a net loss of $363,000 or $0.02 per share basic and diluted for the three months ended March 31, 2025, compared with a net loss of $920,000 or $0.04 per share basic and diluted for the three months ended March 31, 2024. The reduction in net loss of $557,000 for the three months ended March 31, 2025, as compared to 2024, was primarily the result of the reduced loss recognized with respect to our equity method investee (ILiAD) of $166,000, higher revenue of $150,000, lower operating expenses of $123,000, and higher realized and unrealized gains on marketable securities of $101,000.
Current wording
Net Loss. As a result of the foregoing, we realized a net loss of $826,000 or $0.04 per share basic and diluted for the six months ended June 30, 2025, compared with a net loss of $1,578,000 or $0.07 per share basic and diluted for the six months ended June 30, 2024. The reduction in net loss of $752,000 for the six months ended June 30, 2025, as compared to 2024, was primarily the result of decreased recognized losses in our equity method investee of $564,000, decreased operating expenses of $127,000, increased other income of $115,000 and increased revenue of $50,000, offset by decreased income tax benefits of $104,000.
Previous wording
We have financed our operations primarily from revenue from licensing our patents. At March 31, 2025 our principal sources of liquidity consisted of cash and cash equivalents and marketable securities of $39,193,000 and working capital of $38,443,000. Based on our current cash position, we believe that we will have sufficient cash to fund our operations for the next twelve months and the foreseeable future. Our patent infringement litigation or realization of our investment in ILiAD may result in a material increase in our liquidity and capital resources.
Current wording
We have financed our operations primarily from revenue from licensing our patents. At June 30, 2025 our principal sources of liquidity consisted of cash and cash equivalents and marketable securities of $38,485,000 and working capital of $38,288,000. Based on our current cash position, we believe that we will have sufficient cash to fund our operations for the next twelve months and the foreseeable future. Our patent infringement litigation or realization of our investment in ILiAD may result in a material increase in our liquidity and capital resources.
Previous wording
Working capital decreased by $1,623,000 at March 31, 2025 to $38,443,000 as compared to working capital of $40,066,000 at December 31, 2024. The decrease in working capital was primarily due to payment of dividends of $1,144,000 and the acquisition of patents of $414,000.
Current wording
Working capital decreased by $1,778,000 at June 30, 2025 to $38,288,000 as compared to working capital of $40,066,000 at December 31, 2024. The decrease in working capital was primarily due to payment of dividends of $1,155,000, the acquisition of patents of $414,000 and repurchases of our common stock of $207,000.
Previous wording
Net cash provided by investing activities during the three months ended March 31, 2025 decreased by $2,976,000 to $285,000 as compared to $3,262,000 for the three months ended March 31, 2024, primarily as a result of decreased sales and increased purchases of marketable securities of $1,557,000 and $1,006,000, respectively, and the acquisition of patents of $414,000.
Current wording
Net cash provided by investing activities during the six months ended June 30, 2025 decreased by $3,709,000 to $2,150,000 as compared to $5,859,000 for the six months ended June 30, 2024, primarily as a result of decreased sales of marketable securities of $5,298,000, offset by decreased purchases of marketable securities of $2,003,000 and the acquisition of patents in 2025 of $414,000.
Previous wording
Net cash used in financing activities for the three months ended March 31, 2025 and 2024 was $1,301,000 and $1,457,000, respectively. The decrease of $156,000 for the three months ended March 31, 2025 primarily resulted from decreases in cash dividends paid of $66,000, the value of shares delivered by employees to fund withholding taxes due upon the vesting of RSU’s of $54,000, and repurchases of common stock of $36,000.
Current wording
Net cash used in financing activities for the six months ended June 30, 2025 and 2024 was $1,369,000 and $2,156,000, respectively. The decrease of $787,000 for the six months ended June 30, 2025 primarily resulted from a decrease of $676,000 in repurchases of our common stock.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
In addition, we have appealed the judgment of the District Court dismissing our litigation against Google and YouTube involving certain patents within our Cox Patent Portfolio (see Note I[3] to our unaudited condensed consolidated financial statements included herein).
Current report — wording carried from elsewhere
If we are unable to successfully monetize our patent portfolios or achieve a successful outcome of our investment in ILiAD, our business, financial condition and results of operations will be negatively impacted.
Current report — wording carried from elsewhere
Net Loss. As a result of the foregoing, we realized a net loss of $463,000 or $0.02 per share basic and diluted for the three months ended June 30, 2025, compared with a net loss of $658,000 or $0.03 per share basic and diluted for the three months ended June 30, 2024. The reduction in our net loss of $195,000 for the three months ended June 30, 2025, as compared to 2024, was primarily the result of a decrease of $398,000 of our share of net losses of ILiAD, which offset the effect of decreases in revenue of $100,000, other income of $39,000 and income tax benefits of $68,000**.**
Current report — wording carried from elsewhere
Share of Net Losses of Equity Method Investee. We recognized $741,000 of net losses during the six month period ended June 30, 2025 related to our equity share of ILiAD net losses, as compared to a recognized net loss of $1,305,000 for the six months ended June 30, 2024. We anticipate continuing to record our share of net losses from ILiAD.