Fri, May 9, 8:41 PM (45 days ago)
**Network-1 Technologies, Inc. (NTIP) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $150,000 (Q1 2024: $0) from a conditional settlement payment related to the Remote Power Patent. - **Operating Expenses:** $795,000 (Q1 2024: $918,000), with a decrease in professional fees and general administrative expenses. - **Net Loss:** $363,000 (Q1 2024: $920,000), showing improvement due to higher revenue, lower operating expenses, and gains on marketable securities. - **Cash Flow:** Positive operating cash flow of $159,000 (Q1 2024: -$596,000) due to lower net loss and increased accounts payable. - **Liquidity:** Strong liquidity position with $39,193,000 in cash and marketable securities, and working capital of $38,443,000. **Profit Margins and Earnings:** - **Gross Margin:** Not explicitly stated, but operating expenses were higher than revenue. - **Net Margin:** Approximately -242% (Q1 2024: -413%), indicating significant losses relative to revenue. **Trends and Uncertainties:** - **Revenue Trends:** Highly dependent on patent litigation settlements, with no revenue in Q1 2024. - **Operating Expenses:** Fluctuations in professional fees and administrative costs. - **Cash Flow:** Improved operating cash flow but negative financing cash flow due to dividends and stock repurchases. - **Uncertainties:** Outcome of pending litigations, ability to monetize other patent portfolios, and the success of the investment in ILiAD Biotechnologies. **Future Operations and Impact:** - **Strategic Focus:** Continued licensing efforts, patent acquisitions, and strategic relationships to monetize intellectual property. - **Potential Risks:** Classification as a Personal Holding Company, which may result in a 20% tax on undistributed income. - **Liquidity and Capital Resources:** Sufficient cash to fund operations for the next twelve months, with potential increases from litigation or investment outcomes. **Key Metrics:** - **Revenue Growth:** Significant increase from $0 to $150,000. - **Operating Expense Reduction:** $123,000 decrease, primarily due to lower professional fees. - **Net Loss Improvement:** $557,000 reduction in net loss, driven by higher revenue and lower operating expenses. - **Cash Flow Improvement:** Positive operating cash flow of $159,000, a $755,000 increase from Q1 2024.