NTIP · Network-1 Technologies, Inc.

Revenue Stalled as Licensing Pipeline Remains Dormant

Revenue was unchanged at $150K year-over-year, reflecting the absence of new licensing agreements during the quarter. The company's patent monetization strategy is inherently lumpy, and Q1 FY2026 saw no contribution from its M2M/IoT, HFT, Cox, or Smart Home portfolios. Management noted that future revenue depends entirely on successful outcomes from five pending patent infringement litigations, making near-term visibility poor.

Litigation Costs Drive Operating Loss Deeply Negative

Non-Cash Gain on ILiAD Investment Partially Offsets Losses

Cash Flow Turns Negative; Working Capital Declines

Capital Allocation: Dividends and Buybacks Continue

Outlook: Litigation Outcomes and ILiAD Monetization Are Key Catalysts

Management's outlook emphasizes that pending patent infringement litigation and the realization of the ILiAD investment could materially improve liquidity and capital resources. The company's strategy of acquiring high-quality patents for licensing remains unchanged, but near-term financial performance hinges on legal developments.