0001072613-26-000270
SEC filingNetwork-1 Technologies reported a net loss of $2.4 million for FY 2025, an improvement from a $3.0 million loss in FY 2024. Revenue was minimal at $150,000, derived entirely from a litigation settlement related to the now-expired Remote Power Patent. The company's operating loss narrowed to $3.3 million from $3.6 million, primarily due to decreased operating expenses. Other income of $2.1 million, mainly from interest/dividends and marketable securities gains, partially offset operating losses. The company maintains a strong liquidity position with $36.9 million in cash and marketable securities and $36.3 million in working capital. Future revenue is dependent on monetizing other patent portfolios (M2M/IoT, HFT, Cox, Smart Home) through ongoing litigation and licensing efforts.
Network-1 Technologies reported a net loss of $2.4 million for FY 2025, representing an improvement from the $3.0 million net loss in FY 2024. Revenue was minimal at $150,000, derived entirely from a litigation settlement related to the company's Remote Power Patent, which has now expired. The operating loss narrowed to $3.3 million from $3.6 million in the prior year, primarily due to decreased operating expenses. Other income of $2.1 million, consisting of $1.8 million in interest and dividend income and $277,000 in net realized and unrealized gains on marketable securities, partially offset the operating losses. The company's share of net losses from equity method investee ILiAD Biotechnologies was $1.6 million. Basic and diluted loss per share was $0.11 compared to $0.13 in FY 2024.
Revenue for FY 2025 was $150,000, representing a 50% increase from the $100,000 reported in FY 2024. All revenue for both periods came from litigation settlements involving the company's Remote Power Patent, which generated over $188 million in cumulative revenue from May 2007 through December 31, 2025. The company no longer intends to enforce this patent as it has expired. Future revenue is dependent on the company's ability to monetize its other patent portfolios, including M2M/IoT, HFT, Cox, and Smart Home portfolios. The company has pending litigation involving patents within its M2M/IoT and HFT portfolios and a pending appeal involving its Cox Patent Portfolio. Revenue concentration remains high, with the Remote Power Patent constituting 100% of revenue for 2025, 2024, and 2023.
Operating expenses decreased to $3.5 million in FY 2025 from $3.7 million in FY 2024, primarily due to reduced professional fees and related costs ($788,000 vs. $959,000) and lower general and administrative expenses ($2.5 million vs. $2.6 million). The decrease in professional fees was mainly attributable to one-time settlement costs of $205,000 in 2024. General and administrative expense reduction resulted from decreased stock-based compensation and state franchise taxes, partially offset by increased executive compensation and consulting fees. The company recorded a total income tax benefit of $368,000, consisting of a $31,000 current income tax benefit and a $337,000 deferred tax benefit. The deferred tax benefit decreased from $425,000 in FY 2024 primarily due to reduced net losses from ILiAD.
The company reported net cash used in operating activities of $869,000 for FY 2025, an improvement from $1.1 million used in FY 2024. Net cash provided by investing activities was $3.7 million, primarily from net sales of marketable securities. Net cash used in financing activities was $2.6 million, mainly for cash dividend payments of $2.3 million and share repurchases of $293,000. At December 31, 2025, the company had total assets of $40.3 million, including $13.4 million in cash and cash equivalents and $23.5 million in marketable securities. Total liabilities were $770,000, resulting in stockholders' equity of $39.6 million. The company maintains strong liquidity with cash and cash equivalents plus marketable securities of $36.9 million and working capital of $36.3 million.
The company's future revenue is dependent on its ability to monetize its M2M/IoT, HFT, Cox, and Smart Home patent portfolios through ongoing litigation and licensing efforts. Pending litigation includes cases against Samsung Electronics (M2M/IoT portfolio), Citadel Securities, Jump Trading, and Optiver (HFT portfolio), and an appeal involving Google and YouTube (Cox portfolio). The company continues to seek acquisition of additional intellectual property assets and may enter into strategic relationships with third parties. The company anticipates continuing its semi-annual dividend policy of $0.05 per share ($0.10 annually), though this is subject to periodic review. Key risks include uncertainty of litigation outcomes, potential classification as a Personal Holding Company subject to additional taxes, dependence on CEO Corey Horowitz, and rapid technological changes that could impact patent value.