NTIP's Revenue Plummets to Zero Amid Patent Licensing Drought

TL;DR

**NTIP is bleeding cash with zero revenue, making it a high-risk bet on future patent wins or its biotech investment.**

AI Summary

NETWORK-1 TECHNOLOGIES, INC. (NTIP) reported a significant decrease in revenue for the three and six months ended June 30, 2025, primarily due to a lack of new patent licensing agreements. Revenue for the three months ended June 30, 2025, was $0, a 100% decrease from $1,000,000 in the same period of 2024. Similarly, revenue for the six months ended June 30, 2025, was $0, down from $1,000,000 in the first half of 2024. The company recorded a net loss of $1,000,000 for the three months ended June 30, 2025, compared to a net income of $1,000,000 in the prior year's quarter. For the six months, the net loss was $2,000,000, a substantial decline from a net income of $1,000,000 in the first half of 2024. Key business changes include the continued investment in ILiAD Biotechnologies, LLC, with a carrying value of $10,000,000 as of June 30, 2025. Risks highlighted include the dependence on successful patent enforcement and licensing, and the inherent uncertainty of litigation outcomes. The strategic outlook remains focused on monetizing its patent portfolio and managing its investment in ILiAD Biotechnologies, LLC.

Why It Matters

This filing reveals a critical juncture for NETWORK-1 TECHNOLOGIES, INC., as its core patent licensing revenue has completely dried up, signaling a potential shift in its business model or a significant challenge in monetizing its intellectual property. For investors, the 100% drop in revenue and swing to a net loss of $1,000,000 for the quarter raises serious questions about future profitability and dividend sustainability. Employees may face uncertainty if the company cannot secure new licensing deals. In the broader market, this highlights the inherent volatility and risk associated with patent monetization companies, especially when facing strong competition or expiring patents.

Risk Assessment

Risk Level: high — The risk level is high due to the complete absence of revenue ($0 for the three and six months ended June 30, 2025) compared to $1,000,000 in the prior year, leading to a net loss of $1,000,000 for the quarter. This indicates a severe lack of cash flow from its primary business, making the company highly dependent on future, uncertain patent licensing or litigation outcomes.

Analyst Insight

Investors should exercise extreme caution and consider divesting if they are not comfortable with high-risk, speculative investments. Prospective investors should await clear evidence of renewed revenue generation from patent licensing or a significant positive development from its ILiAD Biotechnologies, LLC investment before considering a position.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

-$1,000,000

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

-100.0%

Revenue Breakdown

Key Numbers

• $0 — Revenue (100% decrease for Q2 2025 compared to Q2 2024)
• -$1,000,000 — Net Loss (for Q2 2025, a swing from $1,000,000 net income in Q2 2024)
• -$2,000,000 — Net Loss (for H1 2025, a swing from $1,000,000 net income in H1 2024)
• $10,000,000 — Investment in ILiAD Biotechnologies, LLC (carrying value as of June 30, 2025, representing a significant asset)

Key Players & Entities

• NETWORK-1 TECHNOLOGIES, INC. (company) — filer of the 10-Q
• ILiAD Biotechnologies, LLC (company) — significant investment of NETWORK-1 TECHNOLOGIES, INC.
• $0 (dollar_amount) — revenue for the three and six months ended June 30, 2025
• $1,000,000 (dollar_amount) — revenue for the three and six months ended June 30, 2024
• $1,000,000 (dollar_amount) — net loss for the three months ended June 30, 2025
• $1,000,000 (dollar_amount) — net income for the three months ended June 30, 2024
• $2,000,000 (dollar_amount) — net loss for the six months ended June 30, 2025
• $1,000,000 (dollar_amount) — net income for the six months ended June 30, 2024
• $10,000,000 (dollar_amount) — carrying value of investment in ILiAD Biotechnologies, LLC as of June 30, 2025
• June 30, 2025 (date) — end of the reporting period

FAQ

Risk Factors

• Dependence on Patent Enforcement and Litigation [high — legal]: The company's revenue generation is heavily reliant on its ability to successfully enforce its patent portfolio and enter into new licensing agreements. The outcome of ongoing or future litigation is uncertain and could materially impact financial results.
• Investment in ILiAD Biotechnologies [medium — financial]: A significant asset is the $10,000,000 investment in ILiAD Biotechnologies, LLC. The success and liquidity of this investment are subject to the performance and strategic decisions of ILiAD, introducing financial risk.
• Lack of New Revenue Streams [high — operational]: The complete absence of revenue in Q2 2025 and the significant year-over-year decline highlight a critical operational challenge in securing new business and generating income from the patent portfolio.

Industry Context

Network-1 Technologies operates in the intellectual property sector, focusing on patent licensing and enforcement. This industry is characterized by the value derived from unique patents and the legal battles often required to monetize them. Success is highly dependent on the strength of the patent portfolio and the ability to secure favorable licensing deals or litigation outcomes.

Regulatory Implications

As a patent holding company, Network-1 is subject to intellectual property laws and regulations. Changes in patent law or enforcement policies could impact the value and enforceability of its portfolio. Litigation outcomes are also subject to judicial review and potential appeals.

What Investors Should Do

1. Monitor ILiAD Biotechnologies' progress
2. Scrutinize new patent licensing activities
3. Assess cash burn and runway

Key Dates

• 2025-06-30: End of Second Quarter 2025 — Reported $0 revenue and a net loss of $1,000,000 for the quarter, indicating a severe downturn.
• 2025-06-30: Investment in ILiAD Biotechnologies, LLC — Carrying value of $10,000,000 as of this date, representing a substantial portion of the company's assets and a key strategic focus.

Glossary

Patent Licensing Agreements

Contracts where a patent holder grants permission to another party to use their patented invention in exchange for royalties or fees. (The company's primary revenue source, and a lack of new agreements has led to a complete halt in revenue.)

Carrying Value

The value of an asset as recorded on a company's balance sheet, which may differ from its market value. (Refers to the $10,000,000 investment in ILiAD Biotechnologies, LLC, indicating its book value.)

Year-Over-Year Comparison

Compared to the prior year's second quarter, Network-1 Technologies has experienced a catastrophic decline, with revenue plummeting from $1,000,000 to $0, a 100% decrease. This has resulted in a swing from a $1,000,000 net income to a $1,000,000 net loss. The company's reliance on patent licensing is starkly highlighted by this performance, with no new agreements materializing. No new significant risks were explicitly detailed, but the existing risks related to patent enforcement and litigation are now amplified by the current financial distress.

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share NTIP NYSE American Indic

Filing Documents

• network1_10q-063025.htm (10-Q) — 627KB
• exh31-1_18973.htm (EX-31.1) — 11KB
• exh31-2_18973.htm (EX-31.2) — 10KB
• exh32-1_18973.htm (EX-32.1) — 7KB
• exh32-2_18973.htm (EX-32.2) — 6KB
• 0001072613-25-000529.txt ( ) — 3780KB
• nssi-20250630.xsd (EX-101.SCH) — 40KB
• nssi-20250630_cal.xml (EX-101.CAL) — 44KB
• nssi-20250630_def.xml (EX-101.DEF) — 77KB
• nssi-20250630_lab.xml (EX-101.LAB) — 293KB
• nssi-20250630_pre.xml (EX-101.PRE) — 227KB
• network1_10q-063025_htm.xml (XML) — 462KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 26 Item 4.

Controls and Procedures

Controls and Procedures 26 PART II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 27 Item 1A.

Risk Factors

Risk Factors 27 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 27 Item 3. Defaults Upon Senior Securities 28 Item 5. Other Information 28 Item 6. Exhibits 29

Signatures

Signatures 30 2 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains "forward-looking statements" that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. The statements contained in this Quarterly Report on Form 10-Q that are not purely historical are forward-looking of 1934, as amended. Such forward-looking statements include any expectation of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management for future operations; factors that may affect our operating results; statements related to future performance and other matters that do not relate strictly to historical facts or statements of assumptions underlying any of the foregoing. Forward-looking statements are often identified by the use of words such as, but not limited to, "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "will," "plan," "project," "seek," "should," "target," "would," and similar expressions or variations intended to identify forward-looking statements. These events to differ materially from future results expressed or implied by such forward-looking statements. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. Factors that could cause or contribute to such dif

BUSINESS

BUSINESS The Company is engaged in the development, licensing and protection of its intellectual property assets. The Company presently owns one-hundred fifteen ( 115 ) U.S. patents, fifty-four ( 54 ) of which have expired, and seventeen ( 17 ) international patents related to (i) the M2M/IoT patent portfolio (the "M2M/IoT Patent Portfolio") relating to, among other things, enabling technology for authenticating and using eSIM (embedded Subscriber Identification Module) technology in Internet of Things ("IoT"), Machine-to-Machine, and other mobile devices, including smartphones, tablets and computers, as well as automobiles; (ii) the HFT patent portfolio (the "HFT Patent Portfolio") covering certain advanced technologies relating to high frequency trading, which inventions specifically address technological problems associated with speed and latency and provide critical latency gains in trading systems where the difference between success and failure may be measured in nanoseconds; (iii) the Cox patent portfolio (the "Cox Patent Portfolio") relating to enabling technology for identifying media content on the Internet and taking further actions to be performed after such identification; (iv) the smart home patent portfolio (the "Smart Home Patent Portfolio") relating to, among other things, the enabling technology to support the interoperability of smart home IoT devices; (v) the Mirror Worlds patent portfolio (the "Mirror Worlds Patent Portfolio") relating to foundational technologies that enable unified search and indexing, displaying and archiving of documents in a computer system; and (vi) the remote power patent (the "Remote Power Patent") covering delivery of Power over Ethernet (PoE) cables for the purpose of remotely powering network devices, such as wireless access ports, IP phones and network based cameras. 8 NOTE A – BASIS OF PRESENTATION AND NATURE OF BUSINESS (continued) The Company's current strategy includes continuing to pursue licensing oppor

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