Network-1 Technologies, Inc. (NTIP): Business Model Canvas [10-2024 Updated]
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Network-1 Technologies, Inc. (NTIP) Bundle
In the fast-paced world of technology and innovation, understanding the business model of Network-1 Technologies, Inc. (NTIP) reveals how the company leverages its extensive patent portfolio to create value. With a strategic focus on licensing agreements and patent enforcement, NTIP navigates the complexities of intellectual property while engaging with key partners and customers. Explore the intricacies of their Business Model Canvas to uncover how NTIP positions itself in the competitive landscape of technology and biotechnology.
Network-1 Technologies, Inc. (NTIP) - Business Model: Key Partnerships
Collaborations with Patent Holders
Network-1 Technologies, Inc. engages in partnerships with various patent holders to enhance its intellectual property portfolio. In 2024, the company reported revenue of $100,000, significantly down from $820,000 in 2023, primarily from litigation settlements involving its Remote Power Patent. This revenue generation underscores the importance of collaborations with patent holders.
Strategic Alliances with Technology Firms
Strategic alliances with technology firms are crucial for Network-1. These partnerships facilitate access to advanced technologies and resources. The company has invested in technology firms, notably ILiAD Biotechnologies, where it recognized $1,613,000 in net losses for the nine months ended September 30, 2024. These alliances enable NTIP to leverage technological advancements while sharing the associated risks.
Legal Partnerships for Patent Enforcement
Legal partnerships are essential for Network-1 to enforce its patents effectively. As of September 30, 2024, the company reported operating expenses of $2,538,000 for the nine months ended, which included increased professional fees due to legal activities. The company’s ongoing patent litigation efforts necessitate robust legal partnerships to protect its intellectual property rights and pursue potential infringements.
| Partnership Type | Details | Financial Impact |
|---|---|---|
| Collaborations with Patent Holders | Revenue from Remote Power Patent settlements | $100,000 (2024), down from $820,000 (2023) |
| Strategic Alliances with Technology Firms | Investment in ILiAD Biotechnologies | Net loss of $1,613,000 (nine months ended September 30, 2024) |
| Legal Partnerships for Patent Enforcement | Increased professional fees due to litigation | Operating expenses of $2,538,000 (nine months ended September 30, 2024) |
Network-1 Technologies, Inc. (NTIP) - Business Model: Key Activities
Development and licensing of patents
Network-1 Technologies, Inc. focuses on the development and licensing of its extensive patent portfolio. As of September 30, 2024, the gross carrying amount of patents was reported at $8,473,000, with accumulated amortization of $7,237,000, resulting in a net patent value of $1,236,000. The company generated $100,000 in revenue from litigation settlements involving its Remote Power Patent during the nine months ended September 30, 2024, a decline from $820,000 for the same period in 2023.
Patent litigation and enforcement
Patent litigation is a significant activity for Network-1 Technologies, as it seeks to enforce its intellectual property rights. The company reported operating expenses of $2,538,000 for the nine months ended September 30, 2024, which included costs associated with litigation efforts. Legal and professional fees increased to $656,000 during this period. In the third quarter of 2024, the company recognized a net loss of $316,000, attributed in part to litigation activities.
Investment in biotechnology ventures
Network-1 is also involved in biotechnology investments, specifically through its equity method investment in ILiAD Biotechnologies. For the nine months ended September 30, 2024, the company recognized a loss of $1,613,000 from its equity investment in ILiAD. This investment strategy reflects the company's broader goal of diversifying its portfolio and leveraging opportunities in high-growth sectors.
| Key Financial Metrics | 2024 (Nine Months Ended September 30) | 2023 (Nine Months Ended September 30) |
|---|---|---|
| Revenue from Litigation Settlements | $100,000 | $820,000 |
| Operating Expenses | $2,538,000 | $3,004,000 |
| Legal and Professional Fees | $656,000 | $466,000 |
| Net Loss | $1,894,000 | $1,909,000 |
| Loss from Equity Method Investment (ILiAD) | $1,613,000 | $1,597,000 |
Network-1 Technologies, Inc. (NTIP) - Business Model: Key Resources
Patent Portfolios
Network-1 Technologies, Inc. holds a total of 104 U.S. patents. The company’s patent portfolios include significant intellectual property assets that contribute to its revenue generation, primarily through licensing and litigation settlements. The expiration dates of key patents within its portfolios range from September 2033 to February 2040.
Cash and Marketable Securities
As of September 30, 2024, Network-1 Technologies reported $41.5 million in cash and marketable securities. This includes:
| Type | Cost Basis | Unrealized Gains | Unrealized Losses | Fair Value |
|---|---|---|---|---|
| Certificates of Deposit | $755,000 | $13,000 | $0 | $768,000 |
| Government Securities | $16,919,000 | $158,000 | $(8,000) | $17,069,000 |
| Fixed Income Mutual Funds | $8,608,000 | $251,000 | $0 | $8,859,000 |
| Corporate Bonds and Notes | $502,000 | $3,000 | $0 | $505,000 |
| Total | $26,784,000 | $425,000 | $(8,000) | $27,201,000 |
This financial positioning allows the company to fund operations and invest in further patent acquisitions.
Human Capital
The company’s human capital is a critical resource, particularly in the areas of legal and technical expertise. The team includes professionals skilled in patent law and technology, which supports its litigation and licensing activities. This expertise is essential for navigating complex legal environments and maximizing the value of the company's patent portfolio.
Network-1 Technologies, Inc. (NTIP) - Business Model: Value Propositions
Innovative technology solutions via patents
Network-1 Technologies, Inc. focuses on developing and acquiring patents that provide innovative solutions primarily in the technology sector. As of September 30, 2024, the gross carrying amount of patents held by the company was $8,473,000, with accumulated amortization totaling $7,237,000. This results in a net patent value of $1,236,000.
The company's patent portfolio includes technologies related to M2M (Machine-to-Machine) communications and IoT (Internet of Things), which are critical in modern technological applications. The expiration dates of patents within the M2M/IoT Patent Portfolio range from September 2033 to May 2034, ensuring a sustained competitive advantage in this domain.
Revenue generation through licensing agreements
Revenue generation at Network-1 is significantly supported through licensing agreements linked to its patents. For the nine months ended September 30, 2024, the company reported revenue of $100,000, a decrease from $820,000 for the same period in 2023, primarily due to fewer litigation settlements. All revenue during this period was derived from litigation settlements involving their Remote Power Patent.
Network-1's strategy emphasizes the monetization of its intellectual property through licensing, creating a steady revenue stream while minimizing operational costs associated with product development. The company has historically leveraged its patents effectively, and its ongoing litigation efforts are aimed at enhancing this revenue model.
Protection of intellectual property rights
Intellectual property rights are central to Network-1's business model, safeguarding its innovations and ensuring competitive positioning. The company actively engages in patent litigation to protect its technologies. For instance, in 2024, Network-1 recognized $1,613,000 of losses related to its equity method investment in ILiAD, a clinical stage biotechnology company, which underscores the risks associated with maintaining ownership stakes in ventures linked to its IP strategy.
As of September 30, 2024, the company had a total accumulated deficit of $22,409,000, reflective of its investments in litigation and patent maintenance. The proactive stance on intellectual property rights not only fortifies their existing revenue streams but also positions Network-1 favorably for future licensing opportunities as its patent portfolio matures.
| Category | Value |
|---|---|
| Gross Carrying Amount of Patents | $8,473,000 |
| Accumulated Amortization | $7,237,000 |
| Net Patent Value | $1,236,000 |
| Revenue (9 months ended Sept 30, 2024) | $100,000 |
| Revenue (9 months ended Sept 30, 2023) | $820,000 |
| Accumulated Deficit | $22,409,000 |
| Loss from Equity Method Investment in ILiAD (9 months ended Sept 30, 2024) | $1,613,000 |
Network-1 Technologies, Inc. (NTIP) - Business Model: Customer Relationships
Direct engagement with licensees
Network-1 Technologies, Inc. (NTIP) maintains a direct engagement strategy with its licensees, facilitating a strong relationship that is essential for maximizing the value derived from its patent portfolio. As of September 30, 2024, NTIP's revenue from litigation settlements related to its Remote Power Patent totaled $100,000 for the nine-month period, a significant decline from $820,000 for the same period in 2023.
Legal support for patent holders
As part of its customer relationship strategy, NTIP provides comprehensive legal support for patent holders. This support is crucial for maintaining the integrity and enforceability of its patents. The company's operating expenses for the nine months ended September 30, 2024, were $2,538,000, down from $3,004,000 in the prior year, reflecting a decrease in costs associated with litigation and patent management.
Ongoing communication during litigation processes
NTIP emphasizes ongoing communication with stakeholders during litigation processes. This approach not only helps in managing expectations but also builds trust with licensees. For the three months ended September 30, 2024, NTIP reported a net loss of $316,000, an improvement compared to a net loss of $810,000 in the same quarter of 2023. This reduction in losses can be attributed to increased interest income and gains from investments, which may be partially related to effective communication strategies during ongoing litigation.
| Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Loss | $316,000 | $810,000 | -61% |
| Revenue from Litigation Settlements | $100,000 | $820,000 | -88% |
| Operating Expenses | $2,538,000 | $3,004,000 | -15% |
Network-1 Technologies, Inc. (NTIP) - Business Model: Channels
Direct licensing agreements
Network-1 Technologies generates revenue through direct licensing agreements related to its patent portfolio. For the nine months ended September 30, 2024, the company reported revenue of $100,000 from litigation settlements involving its Remote Power Patent. This figure represents a significant decline from $820,000 in revenue for the same period in 2023.
The revenue from these agreements is typically derived from negotiated license agreements or settlement agreements, which may include non-refundable upfront fees or ongoing royalties from licensed products.
Legal settlements from patent litigation
Legal settlements are another crucial channel for Network-1 Technologies. The company has been involved in various patent infringement litigations, which can lead to substantial settlements. During the nine-month period ending September 30, 2024, all revenue was attributed to litigation settlements. In particular, the company's litigation efforts focus on enforcing its patents and obtaining compensation for past infringements.
The legal settlements can include lump-sum payments for a non-exclusive license, ongoing royalty obligations, or settlements related to expired patents, which can significantly impact the company’s cash flow.
Marketing through industry partnerships
Network-1 Technologies pursues marketing through strategic industry partnerships. These partnerships help enhance its visibility and promote its patent portfolio to potential licensees. While specific financial data regarding the impact of these partnerships on revenue is not disclosed, they are essential for broadening the company's market reach and establishing its intellectual property as a valuable asset within the industry.
As of September 30, 2024, Network-1's cash and cash equivalents, along with marketable securities, amounted to $41,516,000, reflecting the financial strength that can support ongoing marketing efforts and partnership development.
| Channel Type | Revenue (2024) | Revenue (2023) | Notes |
|---|---|---|---|
| Direct Licensing Agreements | $100,000 | $820,000 | Revenue generated from licensing agreements related to patents. |
| Legal Settlements | $100,000 | $820,000 | All revenue for 2024 derived from litigation settlements. |
| Industry Partnerships | N/A | N/A | Partnerships aimed at increasing market visibility and licensing opportunities. |
Network-1 Technologies, Inc. (NTIP) - Business Model: Customer Segments
Technology companies needing licenses
Network-1 Technologies, Inc. focuses on serving technology companies that require licenses for their intellectual property. In 2024, the company generated revenue of $100,000 from litigation settlements involving its Remote Power Patent. The demand for licensing agreements is driven by the increasing reliance on patented technologies in various sectors, including telecommunications and IoT (Internet of Things). The company has a robust portfolio of patents that appeal to firms looking to enhance their product offerings without the overhead of developing proprietary technologies.
Investors seeking patent-backed opportunities
Investors are another critical customer segment for Network-1 Technologies. The company has positioned itself as an attractive investment opportunity due to its patent portfolio, which has the potential to generate substantial licensing revenues. As of September 30, 2024, Network-1 reported total assets of $46,585,000, with marketable securities valued at $27,201,000. The cash and cash equivalents of $41,516,000 provide a solid financial foundation, appealing to investors looking for stability and growth potential in the patent licensing space.
Biotech firms for collaborative ventures
Network-1 is also targeting biotech firms for collaborative ventures, particularly in areas where its patented technologies can be integrated into biopharmaceutical developments. The company recognizes the potential for joint ventures that leverage its intellectual property to create innovative solutions in healthcare and technology. The collaboration with ILiAD Biotechnologies, a clinical-stage company, reflects this strategy, although it has resulted in net losses allocated from equity method investments amounting to $1,613,000 for the nine months ended September 30, 2024.
| Customer Segment | Characteristics | Financial Metrics | Opportunities |
|---|---|---|---|
| Technology Companies | Require licenses for patented technologies | Revenue from litigation settlements: $100,000 (2024) | Increase in licensing agreements |
| Investors | Seeking patent-backed investments | Total Assets: $46,585,000 Marketable Securities: $27,201,000 |
Growth potential in patent licensing |
| Biotech Firms | Collaborative ventures in healthcare | Loss from ILiAD investment: $1,613,000 (2024) | Innovative healthcare solutions |
Network-1 Technologies, Inc. (NTIP) - Business Model: Cost Structure
Legal fees for litigation and patent enforcement
The company incurs significant legal fees associated with litigation and patent enforcement. For the nine months ended September 30, 2024, the total legal costs were included in the operating expenses of $2,538,000. The professional fees related to these activities amounted to $656,000 for the same period.
Administrative expenses and salaries
Administrative expenses, which include salaries and related costs, were reported at $1,764,000 for the nine months ended September 30, 2024. This reflects a decrease from $2,070,000 for the same period in 2023, primarily due to reductions in payroll and payroll taxes. The general and administrative expenses for the three months ended September 30, 2024, were $473,000, compared to $558,000 for the same period in 2023.
R&D for new patent acquisitions
Research and development costs related to new patent acquisitions are also a critical part of the cost structure. The amortization of patents, which reflects R&D expenditures, was $90,000 for the nine months ended September 30, 2024. Additionally, the company has recognized losses from its investment in ILiAD, amounting to $1,613,000 over the same period.
| Cost Category | Q3 2024 Amount | Q3 2023 Amount | Nine Months 2024 Amount | Nine Months 2023 Amount |
|---|---|---|---|---|
| Legal Fees | Included in Operating Expenses | Included in Operating Expenses | $656,000 | Not Disclosed |
| Administrative Expenses | $473,000 | $558,000 | $1,764,000 | $2,070,000 |
| R&D (Amortization of Patents) | $30,000 | $71,000 | $90,000 | $236,000 |
| Loss from ILiAD Investment | $308,000 | $532,000 | $1,613,000 | $1,597,000 |
Network-1 Technologies, Inc. (NTIP) - Business Model: Revenue Streams
Licensing fees from patents
Network-1 Technologies generates revenue through licensing fees associated with its patented technologies. For the nine months ended September 30, 2024, the company reported total revenue of $100,000, a significant decrease from $820,000 for the same period in 2023. This revenue was entirely derived from litigation settlements involving the company's Remote Power Patent.
Settlement payments from litigation
Settlement payments form a crucial part of NTIP's revenue model. The company utilizes its patent portfolio to engage in litigation against alleged infringers, resulting in negotiated settlement agreements. In the nine months ended September 30, 2024, all revenue recorded was from litigation settlements, indicating the company’s reliance on this revenue stream for its financial performance.
| Period | Total Revenue | Revenue from Litigation Settlements |
|---|---|---|
| Q3 2024 | $0 | $0 |
| Q3 2023 | $0 | $0 |
| 9 Months Ended September 30, 2024 | $100,000 | $100,000 |
| 9 Months Ended September 30, 2023 | $820,000 | $820,000 |
Interest income from investments
In addition to licensing fees and settlement payments, Network-1 also earns interest income from its investments. For the nine months ended September 30, 2024, the company reported interest and dividend income of $1,407,000, an increase from $1,161,000 in the same period of the previous year. This increase was attributed to higher yielding fixed-income investments.
| Period | Interest and Dividend Income |
|---|---|
| Q3 2024 | $524,000 |
| Q3 2023 | $406,000 |
| 9 Months Ended September 30, 2024 | $1,407,000 |
| 9 Months Ended September 30, 2023 | $1,161,000 |
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.