NETWORK-1 TECHNOLOGIES, INC.
For the period ended Dec 31, 2025. Filed Mar 13, 2026.
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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Mar 13, 2026
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-K
Period ended 2024-12-31; filed 2025-02-28.
0001072613-25-000187
Item 7. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2025-12-31; filed 2026-03-13.
0001072613-26-000270
Item 7. 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 39 current paragraphs.
18 unchanged; 18 reworded; 3 added; 4 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 1 previous and 1 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 (3)
Current report
To date we have invested $7,000,000 in ILiAD, a clinical stage biotechnology company dedicated to the prevention and treatment of human disease caused byBordetella pertussiswith a focus on validating its proprietary intranasal vaccine, BPZE1, for the prevention of pertussis (see Note H to our consolidated financial statements included herein). On February 5, 2026, ILiAD completed a $115,000,000 preferred stock financing. As part of the financing, ILIAD converted from a limited liability company to a corporation. The financing was led by RA Capital Management with participation from new investors Janus Henderson Investors and BNP Paribas Asset Management Alts, as well as existing investors including a multi-national pharmaceutical company and AI Life Sciences. As a result of the financing, the Company’s percentage ownership of ILiAD was reduced to approximately 3.1% on a non-fully diluted basis and approximately 2.5% on a fully diluted basis. As a result of the closing of the financing and the conversion to a corporation, we will no longer account for our investment in ILiAD using the equity method of accounting and will use the fair value method of accounting (see Note O of our consolidated financial statements included herein).
Current report
Professional fees and related costs were $788,000 for 2025 as compared to $959,000 for 2024. The decrease in professional fees and related costs of $171,000 in 2025 was primarily due to one-time settlement costs in 2024 of $205,000. This decrease was offset somewhat by higher legal fees related to patents and patent litigation of $53,000.
Current report
Net cash provided by investing activities during 2025 increased by $2,673,000 as a result of increased sales of marketable securities of $907,000 and decreased purchases of marketable securities of $2,181,000, offset by the acquisition of patents of $415,000.
Removed paragraphs (4)
Previous report
With respect to our one hundred and six (106) U.S. patents, fifty-four (54) of such patents have expired. However, we can assert expired patents against third parties but only for past damages up to the patent expiration date. In 2024, our revenue was from our expired Remote Power Patent and we are currently appealing to the Federal Circuit a District Court dismissal of claims involving certain expired patents within our Cox Patent Portfolio (see Note K to our consolidated financial statements included herein). Our revenue is dependent upon our ability to achieve successful litigation outcomes.
Previous report
To date we have invested $7,000,000 in ILiAD, a clinical stage biotechnology company with an exclusive license to seventy-four (74) patents (see Note H to our consolidated financial statements included herein). Our investment continues to involve significant risk and the outcome is uncertain.
Previous report
We had costs of revenue of $28,000 and $874,000 for 2024 and 2023, respectively. Included in the costs of revenue for 2024 were contingent legal fees of $23,000 and incentive bonus compensation of $5,000 payable to our Chairman and Chief Executive Officer. Included in the costs of revenue for 2023 were contingent legal fees of $744,000 and incentive bonus compensation of $130,000 payable to our Chairman and Chief Executive Officer pursuant to his employment Agreement (see Note J [1] to our consolidated financial statement included herein).
Previous report
Net cash used in investing activities during 2024 decreased by $5,488,000 as a result of our holdings of marketable securities declining by $1,049,000 in 2024 as compared to $6,537,000 in 2023.
Reworded paragraphs (18)
Previous wording
Our principal business is the development, licensing and protection of our intellectual property assets. We presently own one hundred and six (106) U.S. patents and sixteen (16) foreign patents relating to: (i) our M2M/IoT Patent Portfolio relating to, among other things, enabling technology for authenticating and using eSIM (embedded Subscriber Identification Module) technology in IoT, Machine-to-Machine and other mobile devices, including smartphones, tablets and computers, as well as automobiles; (ii) our 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) our Cox Patent Portfolio relating to enabling technology for identifying media content on the Internet and taking further action to be performed after such identification; (iv) our Remote Power Patent covering the 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**;** and (v) our Mirror Worlds Patent Portfolio relating to foundational technologies that enable unified search and indexing, displaying and archiving of documents in a computer system.
Current wording
Our principal business is the development, licensing and protection of our intellectual property assets. We presently own one hundred nineteen (119) U.S. patents, fifty-four (54) of which have expired, and fifteen (15) foreign patents (unexpired) relating to: (i) our M2M/IoT Patent Portfolio relating to, among other things, enabling technology for authenticating and using eSIM (embedded Subscriber Identification Module) technology in IoT, Machine-to-Machine and other mobile devices, including smartphones, tablets and computers, as well as automobiles; (ii) our 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; (iii) our Cox Patent Portfolio relating to enabling technology for identifying media content on the internet and taking further action to be performed after such identification; (iv) our Smart Home Patent Portfolio relating to, among other things, the enabling technology to support the interoperability of smart home IT devices; (v) our Remote Power Patent covering the 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**;** and (vi) our Mirror Worlds Patent Portfolio relating to foundational technologies that enable unified search and indexing, displaying and archiving of documents in a computer system.
Previous wording
At December 31, 2024, our principal sources of liquidity consisted of cash and cash equivalents and marketable securities of $40,600,000 and working capital of $40,066,000**.**Based on our cash position, we review opportunities to acquire additional intellectual property as well as evaluate other strategic opportunities.
Current wording
At December 31, 2025, our principal sources of liquidity consisted of cash and cash equivalents and marketable securities of $36,869,000 and working capital of $36,336,000**.**Based on our cash position, we review opportunities to acquire additional intellectual property as well as evaluate other strategic opportunities.
Previous wording
We have been dependent upon our Remote Power Patent for a significant portion of our revenue. Our Remote Power Patent has generated revenue in excess of $188,000,000 from May 2007 through December 31, 2024. 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). During the fourth quarter of 2022, we commenced nine separate litigations against ten defendants involving our Remote Power Patent for patent infringement for the period prior to March 7, 2020. During 2024, we entered into a settlement agreement with one defendant for which we received $100,000. Such settlement payment constituted all of our revenue for 2024. During 2023, we entered into settlement agreements with eight of the defendants with respect to the aforementioned litigation resulting in aggregate settlement payments made to us of $2,601,000 and a future conditional payment of $150,000 (see Note K to our consolidated financial statements included herein). All of our revenue for 2023 was from these 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
In the past, we have been dependent upon our Remote Power Patent for a significant portion of our revenue. Our Remote Power Patent generated revenue in excess of $188,000,000 from May 2007 through December 31, 2025. During the year ended December 31, 2025 and 2024, our Remote Power Patent generated all of our revenue. We no longer intend to enforce our Remote Power Patent as the patent has expired. Our future revenue is dependent on our ability to monetize our M2M/ IOT Patent Portfolio, HFT Patent Portfolio, Cox Patent Portfolio (if we are successful on our appeal to the Federal Circuit) and Smart Home Patent Portfolio. If we are unable to successfully monetize such patent portfolios or achieve a successful outcome of our investment in ILiAD, our business, financial condition and results of operations will be negatively impacted.
Previous wording
In addition, we have pending litigation involving certain patents within our HFT Patent Portfolio and have appealed the judgment of the District Court dismissing our litigation against Google and YouTube on the grounds of non-infringement involving certain patents within our Cox Patent Portfolio. In addition, we intend to monetize our M2M/IoT Patent Portfolio. We may not achieve successful outcomes of such litigation, the appeal, or future litigation involving our patent assets.
Current wording
We have pending litigation involving certain patents within our M2M/IoT Patent Portfolio and HFT Patent Portfolio and have appealed the judgment of the District Court dismissing our litigation against Google and YouTube on the grounds of non-infringement involving certain patents within our Cox Patent Portfolio (see “Legal Proceedings” at pages 19-20 hereof). We may not achieve successful outcomes of such litigation, the appeal, or future litigation involving our patent assets.
Previous wording
Our current dividend policy consists of semi-annual cash dividends of $0.05 per share ($0.10 per share annually) which have been paid in March and September of each year. In 2024 and 2023, we paid semi-annual cash dividends in accordance with our dividend policy. At this time, we anticipate continuing to pay dividends consistent with our policy. However, our dividend policy undergoes a periodic review by our Board of Directors and is subject to change at any time depending upon our financial requirements, earnings and other factors existing at the time (see Note N to our consolidated financial statements included herein).
Current wording
Our current dividend policy consists of semi-annual cash dividends of $0.05 per share ($0.10 per share annually) which have been paid in March and September of each year. To date, we have paid semi-annual cash dividends in accordance with our dividend policy. At this time, we anticipate continuing to pay dividends consistent with our policy. However, our dividend policy undergoes a periodic review by our Board of Directors and is subject to change at any time depending upon our financial requirements, earnings and other factors existing at the time (see Note N to our consolidated financial statements included herein).
Previous wording
Revenue. We had revenue of $100,000 for the year ended December 31, 2024 (“2024”) as compared to revenue of $2,601,000 for the year ended December 31, 2023 (“2023”). All of our revenue for 2024 and 2023 was from litigation settlements involving our Remote Power Patent (see Note K[4] to our consolidated financial statements included herein).
Current wording
Revenue. We had revenue of $150,000 for the year ended December 31, 2025 (“2025”) as compared to revenue of $100,000 for the year ended December 31, 2024 (“2024”). All of our revenue for 2025 and 2024 was from litigation settlements involving our Remote Power Patent (see Note K[5] to our consolidated financial statements included herein).
Previous wording
Operating Expenses. Operating expenses for 2024 were $3,721,000 as compared to $4,836,000 for 2023. The decrease in operating expenses of $1,115,000 was primarily due to lower costs of revenue of $846,000, general and administrative of $275,000 and amortization of patents of $146,000. These reductions were offset somewhat due to higher professional fees of $152,000.
Current wording
Operating Expenses. Operating expenses for 2025 were $3,456,000 as compared to $3,721,000 for 2024. The decrease in operating expenses of $265,000 was primarily due to decreased professional fees and related costs of $171,000 and decreased general and administrative expenses of $129,000.
Previous wording
General and administrative expenses were $2,614,000 for 2024 as compared to $2,889,000 for 2023. The decrease in general and administrative expenses for 2024 was primarily due to lower payroll and related employer taxes of $159,000 and stock-based compensation of $109,000.
Current wording
General and administrative expenses were $2,485,000 for 2025 as compared to $2,614,000 for 2024. The decrease in general and administrative expenses of $129,000 for 2025 was primarily due to decreased stock-based compensation of $92,000 and state franchise taxes of $59,000 offset by increased executive compensation of $45,000 and consulting fees of $20,000.
Previous wording
Operating Loss.We had an operating loss of $3,621,000 for 2024 compared with an operating loss of $2,235,000 for 2023. The operating loss increase of $1,386,000 was primarily due to lower revenue from patent litigation settlements in 2024 of $2,501,000 as compared to 2023.**
Current wording
*Operating Loss.*We had an operating loss of $3,306,000 for 2025 compared with an operating loss of $3,621,000 for 2024. The operating loss decrease of $315,000 was primarily due to increased revenue of $50,000 and decreased operating expenses of $265,000.
Previous wording
Realized and Unrealized Loss on Marketable Securities. For 2024, we recorded realized and unrealized gains on marketable securities of $177,000 as compared to realized and unrealized gains on marketable securities of $525,000 in 2023, primarily due to the timing of maturities on marketable securities and the declines in yields on our fixed income holdings.
Current wording
Realized and Unrealized Loss on Marketable Securities. For 2025, we recorded realized and unrealized gains on marketable securities of $277,000 as compared to realized and unrealized gains on marketable securities of $177,000 in 2024, primarily due to increased unrealized gains of $150,000 in 2025.
Previous wording
Income Taxes. For 2024, we had no current tax expense for federal, state and local income taxes and a deferred tax benefit of $425,000**.**For 2023, we had a current income tax for federal, state and local income taxes of $11,000 and a deferred tax benefit of $399,000.
Current wording
Income Taxes. For 2025, we realized a $31,000 current income tax benefit related to a federal income tax refund, as compared to no current income tax expense for 2024. We had a deferred tax benefit of $337,000 and $425,000 for 2025 and 2024, respectively. The decrease in our deferred tax benefit was primarily due to a decrease of $309,000 in net losses of ILiAD recognized in 2025.
Previous wording
Share of Net Losses of Equity Method Investee. We recognized $1,912,000 of net losses during 2024 related to our equity share of ILiAD net losses, as compared to recognized net losses of $2,003,000 for 2023 (see Note H to our consolidated financial statements included herein). We anticipate continuing to record our share of net losses from ILiAD.
Current wording
Share of Net Losses of Equity Method Investee. We recognized $1,603,000 of net losses during 2025 related to our equity share of ILiAD net losses, as compared to recognized net losses of $1,912,000 for 2024 (see Note H to our consolidated financial statements included herein).
Previous wording
Net Loss. As a result of the foregoing, we realized a net loss of $3,034,000 or $0.13 per share basic and diluted for 2024 compared with a net loss of $1,457,000 or $0.06 per share basic and diluted for 2023. Our net loss for 2024 increased by $1,577,000 as compared to 2023 primarily due to lower revenue from patent litigation settlements in 2024 of $2,501,000.
Current wording
Net Loss. As a result of the foregoing, we realized a net loss of $2,420,000 or $0.11 per share basic and diluted for 2025 compared with a net loss of $3,034,000 or $0.13 per share basic and diluted for 2024. Our net loss for 2025 decreased by $614,000 as compared to 2024 primarily due a decrease in 2025 of our operating loss of $315,000 and our recognized share of net losses of ILiAD of $309,000.
Previous wording
We have financed our operations primarily from revenue from licensing our patents. At December 31, 2024, our principal sources of liquidity consisted of cash and cash equivalents and marketable securities of $40,600,000 and working capital of $40,066,000**.**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 December 31, 2025, our principal sources of liquidity consisted of cash and cash equivalents and marketable securities of $36,869,000 and working capital of $36,336,000**.**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 $4,784,000 at December 31,2024 to $40,600,000 as compared to working capital of $44,850,000 at December 31, 2023. The decrease in working capital in 2024 was primarily due to our operating loss of $3,621,000, cash dividends payments of $2,366,000 and share repurchases of $1,295,000, offset by interest and dividend income of $1,897,000.
Current wording
Working capital decreased by $3,730,000 at December 31, 2025 to $36,336,000 as compared to working capital of $40,066,000 at December 31, 2024. The decrease in working capital in 2025 was primarily due to our operating loss of $2,999,000 (which excludes $307,000 of non-cash stock-based compensation), cash dividend payments of $2,296,000, the acquisition of patents of $415,000 and share repurchases of $293,000, offset by interest and dividend income of $1,844,000 and net realized and unrealized gains on marketable securities of $277,000.
Previous wording
Net cash used in operating activities for 2024 increased by $1,407,000 from $1,076,000 used in operating activities for 2024 compared to $331,000 provided by operating activities for 2023, primarily because of the increase in our net loss of $1,577,000.
Current wording
Net cash used in operating activities for 2025 decreased by $207,000 from $1,076,000 used in operating activities for 2024 compared to $869,000 used in operating activities for 2025, primarily because of decreased net loss of $614,000 and a decrease in uses of operating assets and liabilities, offset somewhat by a decreased share of net loss of equity investee of $309,000 and an increased unrealized gain of $216,000.
Previous wording
Net cash used in financing activities for 2024 and 2023 was $3,724,000 and $3,420,000, respectively. The increase of $304,000 primarily resulted from higher repurchases of common shares of $329,000.
Current wording
Net cash used in financing activities for 2025 and 2024 was $2,596,000 and $3,724,000, respectively. The decrease of $1,128,000 in 2025 primarily resulted from a decrease in repurchases of common shares of $1,002,000.
Previous wording
We maintain our cash equivalents and marketable securities in money market funds, government securities, certificates of deposit, corporate bonds and short-term fixed income securities. Accordingly, we do not believe that our investments have significant exposure to interest rate risk.
Current wording
We maintain our cash in money market funds, government securities, certificates of deposit, corporate bonds and short-term fixed income securities. Accordingly, we do not believe that our investments have significant exposure to interest rate risk.