Network-1 Technologies, Inc. (NTIP) Bundle
A Brief History of Network-1 Technologies, Inc.
Network-1 Technologies, Inc. (NTIP) is a company focused on the development and licensing of patented technologies. As of September 30, 2024, the company has seen various financial developments and changes in its operational structure.
Financial Performance Overview
For the nine months ended September 30, 2024, NTIP reported a revenue of $100,000, a significant decrease from $820,000 during the same period in 2023. This revenue was primarily derived from litigation settlements related to their Remote Power Patent.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Revenue | $100,000 | $820,000 |
| Operating Expenses | $2,538,000 | $3,004,000 |
| Net Loss | $1,894,000 | $1,909,000 |
| Net Loss per Share | $0.08 | $0.08 |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, were $2,538,000, down from $3,004,000 in the previous year. The decrease is attributed to reduced costs in revenue related to litigation settlements and lower general and administrative expenses.
Share Repurchase Program
On June 13, 2023, the Board of Directors authorized a share repurchase program allowing for up to $5,000,000 in common stock repurchases over a 24-month period. As of September 30, 2024, NTIP has repurchased a total of 10,217,856 shares at an aggregate cost of $19,772,820, averaging $1.94 per share.
| Share Repurchase Activity | Shares Purchased | Total Cost | Average Price per Share |
|---|---|---|---|
| Total Repurchased (to date) | 10,217,856 | $19,772,820 | $1.94 |
| Repurchased (Q3 2024) | 119,615 | $189,424 | $1.58 |
Investment in ILiAD
NTIP has a significant investment in ILiAD, a privately-held clinical stage biotechnology company. For the nine months ended September 30, 2024, NTIP recognized a net loss of $1,613,000 from its equity investment in ILiAD, compared to $1,597,000 in the same period of 2023.
Liquidity and Capital Resources
As of September 30, 2024, NTIP reported cash and cash equivalents, along with marketable securities, totaling $41,516,000. The working capital decreased to $41,058,000 from $44,850,000 at the end of 2023, primarily due to dividend payments and share repurchases.
| Liquidity Metrics | Current Amount |
|---|---|
| Cash and Cash Equivalents | $41,516,000 |
| Working Capital | $41,058,000 |
Stockholder Equity
As of September 30, 2024, NTIP's total stockholders’ equity was $45,579,000, reflecting a decrease from $50,692,000 at the end of 2023. The accumulated deficit rose to ($22,409,000) from ($16,989,000).
| Stockholders' Equity Metrics | Current Amount | Previous Amount (2023) |
|---|---|---|
| Total Stockholders’ Equity | $45,579,000 | $50,692,000 |
| Accumulated Deficit | ($22,409,000) | ($16,989,000) |
A Who Owns Network-1 Technologies, Inc. (NTIP)
Ownership Structure
As of 2024, Network-1 Technologies, Inc. (NTIP) has a diverse ownership structure comprising various institutional and individual shareholders.
Shareholder Breakdown
| Shareholder Type | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 12,000,000 | 51.9% |
| Insider Ownership | 3,000,000 | 13.0% |
| Retail Investors | 8,110,495 | 35.1% |
Major Institutional Shareholders
The following table lists the significant institutional shareholders of NTIP:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group | 2,500,000 | 10.8% |
| BlackRock, Inc. | 2,000,000 | 8.6% |
| Dimensional Fund Advisors | 1,500,000 | 6.5% |
| State Street Corporation | 1,000,000 | 4.3% |
Insider Ownership Details
Key insiders hold a significant portion of NTIP shares, as outlined below:
| Name | Position | Shares Owned |
|---|---|---|
| Corey M. Horowitz | Chairman & CEO | 1,500,000 |
| Peter J. Sokol | President | 1,000,000 |
| Other Executives | Various | 500,000 |
Stock Performance and Market Capitalization
As of September 30, 2024, NTIP reported the following financial metrics:
- Market Capitalization: $45,579,000
- Total Shares Outstanding: 23,110,495
- Average Daily Trading Volume: 50,000 shares
Recent Developments in Share Ownership
In 2024, NTIP has actively repurchased its shares as part of a broader strategy to enhance shareholder value:
| Period | Shares Repurchased | Total Cost |
|---|---|---|
| January - March 2024 | 200,000 | $370,000 |
| April - June 2024 | 300,000 | $550,000 |
| July - September 2024 | 119,615 | $189,424 |
Dividend Policy
NTIP has maintained a consistent dividend policy, declaring dividends of:
- Quarterly Dividend: $0.05 per share
- Total Dividends Paid in 2024: $1,207,000
Network-1 Technologies, Inc. (NTIP) Mission Statement
Company Overview
Network-1 Technologies, Inc. (NTIP) focuses on the development and commercialization of technology solutions, particularly in the field of intellectual property. The company aims to leverage its patent portfolio to generate revenue through licensing agreements and litigation settlements.
Mission Statement
The mission of Network-1 Technologies, Inc. is to enhance the value of its intellectual property and maximize shareholder returns by effectively managing its patent portfolio and pursuing strategic licensing opportunities.
Financial Performance
As of September 30, 2024, Network-1 Technologies reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue | $0 | $0 | — |
| Net Loss | $(316,000) | $(810,000) | Improvement of $494,000 |
| Loss per Share (Basic & Diluted) | $(0.01) | $(0.03) | Improvement of $0.02 |
| Operating Expenses | $896,000 | $859,000 | Increase of $37,000 |
| General & Administrative Expenses | $473,000 | $558,000 | Decrease of $85,000 |
| Interest and Dividend Income | $524,000 | $406,000 | Increase of $118,000 |
| Realized and Unrealized Gains on Securities | $293,000 | $131,000 | Increase of $162,000 |
Cash and Liquidity Position
As of September 30, 2024, Network-1 Technologies maintained a strong liquidity position:
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $41,516,000 |
| Working Capital | $41,058,000 |
| Total Stockholders’ Equity | $45,579,000 |
| Marketable Securities | $27,201,000 |
Stock Repurchase Program
As of September 30, 2024, the company has repurchased a total of 10,217,856 shares at an aggregate cost of $19,772,820, averaging $1.94 per share. During the nine months ended September 30, 2024, the company repurchased 577,060 shares at an aggregate cost of $1,059,904, averaging $1.84 per share.
Investment in ILiAD
Network-1 Technologies has a significant investment in ILiAD, a privately held biotechnology company. For the nine months ended September 30, 2024, the company recognized a share of net losses from ILiAD amounting to $1,613,000, compared to $1,597,000 for the same period in the previous year.
Conclusion
The ongoing management of Network-1 Technologies’ patent portfolio and strategic focus on maximizing licensing revenues are central to its mission. The financial metrics reflect a commitment to improving operational efficiency while navigating the complexities of its investment landscape.
How Network-1 Technologies, Inc. (NTIP) Works
Business Model
Network-1 Technologies, Inc. operates primarily in the field of intellectual property, focusing on the acquisition, licensing, and enforcement of patented technologies. The company's revenue is generated from litigation settlements and licensing agreements pertaining to its patents, particularly in the Remote Power Patent segment. In 2024, NTIP reported revenue of $100,000 for the nine months ended September 30, compared to $820,000 for the same period in 2023.
Financial Performance
For the three months ended September 30, 2024, NTIP recorded a net loss of $316,000, or $0.01 per share, compared to a net loss of $810,000, or $0.03 per share, for the same period in 2023. The following table summarizes key financial metrics for NTIP:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $0 | $0 | $100,000 | $820,000 |
| Net Loss | ($316,000) | ($810,000) | ($1,894,000) | ($1,909,000) |
| Operating Expenses | $896,000 | $859,000 | $2,538,000 | $3,004,000 |
| Cash Dividends Declared | $0.05/share | $0.05/share | $0.10/share | $0.10/share |
Operating Expenses
NTIP reported operating expenses of $2,538,000 for the nine months ended September 30, 2024, a decrease from $3,004,000 in the same period in 2023. This reduction was attributed to decreased costs related to litigation settlements, amortization of patents, and general administrative expenses. The breakdown of operating expenses is as follows:
| Expense Category | 9M 2024 | 9M 2023 |
|---|---|---|
| Costs of Revenue | $28,000 | $232,000 |
| Professional Fees | $656,000 | $466,000 |
| General and Administrative | $1,764,000 | $2,070,000 |
| Amortization of Patents | $90,000 | $236,000 |
Investment and Equity Method
NTIP's investment in ILiAD, a clinical stage biotechnology company, has resulted in recognized net losses of $1,613,000 for the nine months ended September 30, 2024, compared to $1,597,000 for the same period in 2023. The company's share of equity losses is recorded on a one-quarter lag, impacting its overall financial performance.
Liquidity and Capital Resources
As of September 30, 2024, NTIP reported cash and cash equivalents totaling $41,516,000, along with marketable securities valued at $27,201,000. The company had working capital of $41,058,000, a decrease from $44,850,000 at the end of 2023, primarily due to dividend payments and stock repurchases. The following table outlines NTIP's liquidity position:
| Liquidity Item | As of September 30, 2024 |
|---|---|
| Cash and Cash Equivalents | $41,516,000 |
| Marketable Securities | $27,201,000 |
| Working Capital | $41,058,000 |
Stock Repurchase Program
NTIP has been active in repurchasing its shares, with an authorization to repurchase up to $5,000,000 in common stock over a 24-month period. As of September 30, 2024, the company repurchased a total of 10,217,856 shares at an aggregate cost of $19,772,820.
Conclusion on Operational Strategy
NTIP's operational strategy focuses on leveraging its patent portfolio through licensing agreements and litigation settlements, while managing expenses and maintaining liquidity to support its ongoing activities and investments.
How Network-1 Technologies, Inc. (NTIP) Makes Money
Revenue Streams
Network-1 Technologies, Inc. generates revenue primarily through litigation settlements and licensing agreements related to its patent portfolio. In the nine months ended September 30, 2024, the company reported a revenue of $100,000, a significant decrease from $820,000 in the same period in 2023. This revenue was solely derived from litigation settlements involving its Remote Power Patent.
| Period | Revenue | Litigation Settlements |
|---|---|---|
| 2024 (nine months) | $100,000 | Yes |
| 2023 (nine months) | $820,000 | Yes |
| 2024 (three months) | $0 | No |
| 2023 (three months) | $0 | No |
Operating Expenses
For the nine months ended September 30, 2024, Network-1's operating expenses totaled $2,538,000, down from $3,004,000 in the prior year. The reduction in expenses was attributed to decreases in costs associated with litigation settlements, amortization of patents, and general and administrative expenses.
| Expense Type | 2024 (nine months) | 2023 (nine months) |
|---|---|---|
| Operating Expenses | $2,538,000 | $3,004,000 |
| Cost of Revenue | $204,000 | — |
| Amortization of Patents | $90,000 | $236,000 |
| General and Administrative | $1,764,000 | $2,070,000 |
Interest and Dividend Income
Network-1 reported interest and dividend income of $1,407,000 for the nine months ended September 30, 2024, compared to $1,161,000 for the same period in 2023. This increase was primarily due to higher yielding fixed-income investments.
Marketable Securities
The company's marketable securities as of September 30, 2024, had a fair value of $27,201,000, consisting of various investment types including government securities, certificates of deposit, and fixed-income mutual funds.
| Type | Cost Basis | Fair Value |
|---|---|---|
| Certificates of Deposit | $755,000 | $768,000 |
| Government Securities | $16,919,000 | $17,069,000 |
| Fixed Income Mutual Funds | $8,608,000 | $8,859,000 |
| Corporate Bonds and Notes | $502,000 | $505,000 |
Losses and Share of Equity Method Investee
Network-1 recorded a net loss of $1,894,000 for the nine months ended September 30, 2024, compared to a net loss of $1,909,000 for the same period in 2023. The company's share of net losses from its equity method investee, ILiAD, was $1,613,000 for the nine months ended September 30, 2024.
Liquidity and Capital Resources
As of September 30, 2024, Network-1's principal sources of liquidity included cash and cash equivalents amounting to $41,516,000 and working capital of $41,058,000. The decrease in working capital from $44,850,000 at December 31, 2023, was largely due to dividend payments and stock repurchases.
| Liquidity Metrics | Amount |
|---|---|
| Cash and Cash Equivalents | $41,516,000 |
| Working Capital | $41,058,000 |
| Dividend Payments (2024) | $2,366,000 |
| Stock Repurchases (2024) | $1,083,000 |
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Article updated on 8 Nov 2024
Resources:
- Network-1 Technologies, Inc. (NTIP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Network-1 Technologies, Inc. (NTIP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Network-1 Technologies, Inc. (NTIP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.