Network-1 Technologies, Inc.

What they do

Network-1 develops, licenses and enforces intellectual property, holding 121 U.S. patents (54 expired) and 15 unexpired foreign patents across M2M/IoT, HFT, Cox, Smart Home, Remote Power and Mirror Worlds portfolios. Revenue comes from patent licensing and litigation outcomes. It also holds a minority equity investment in clinical-stage biotechnology company ILiAD Biotechnologies, in which it has invested $7,000,000.

Revenue drivers

• Remote Power Patent (legacy) — Generated all of the company's revenue in 2025 and 2024 and more than $188,000,000 from May 2007 through December 31, 2025, but the company is no longer enforcing it.
• M2M/IoT Patent Portfolio — Monetized through litigation, including the June 2025 suit against Samsung in the Eastern District of Texas over six eSIM and 5G patents, with trial set for June 7, 2027.
• HFT Patent Portfolio — High-frequency trading latency patents; part of four pending litigations, but no revenue disclosed from this portfolio.
• Cox Patent Portfolio — Media-content identification patents; the Google/YouTube non-infringement judgment was overturned on appeal in April 2026 and remanded, with trial set for December 7, 2026.

Recent performance

For the three and six months ended June 30, 2026, Network-1 reported no revenue, versus $150,000 in the six months ended June 30, 2025. Second quarter 2026 operating expenses were $1,013,000 versus $720,000 a year earlier, and first-half 2026 operating expenses were $2,428,000 versus $1,515,000, driven by higher litigation professional fees. The second quarter 2026 net loss was $655,000, or $0.03 per share, compared with a $463,000 net loss, or $0.02 per share, in the prior-year quarter. First-half 2026 net loss was $1,166,000, or $0.05 per share, versus $826,000, or $0.04 per share, a year earlier.

Strategy

Network-1 states its strategy is to continue monetizing its existing patent portfolios while seeking to acquire additional high-quality intellectual property with significant licensing potential. It also works with inventors and patent owners to develop and monetize their technologies. The company holds $7,000,000 invested in ILiAD and on February 5, 2026, after ILiAD's $115,000,000 preferred stock financing, its ILiAD ownership fell to about 2.5% on a fully diluted basis; it no longer uses the equity method for that investment. The company maintains a semiannual dividend of $0.05 per share ($0.10 annualized) and repurchased 34,980 shares for $51,000 in the second quarter of 2026.

Risks

• Litigation-dependent revenue — Revenue is entirely dependent on uncertain patent litigation outcomes, and the company reported no revenue in the first half of 2026.
• Patent validity challenges — Third parties defend by asserting non-infringement and invalidity, and patents may face USPTO inter partes review that could invalidate or narrow claims.
• Expired and unenforced portfolios — The company no longer intends to monetize the expired Remote Power Patent and Mirror Worlds Patent Portfolio, and is no longer enforcing the Remote Power Patent.
• ILiAD investment risk — Network-1's $7,000,000 ILiAD stake was diluted to about 2.5% fully diluted after the February 2026 financing, and a failed ILiAD outcome would negatively impact its financial condition.

Outlook

Management states that based on its cash position, it has sufficient liquidity to fund operations for the foreseeable future, citing $33,752,000 in cash, cash equivalents and marketable securities and $33,179,000 of working capital at June 30, 2026. The company expects its future revenue to depend on monetizing its M2M/IoT, HFT, Cox and Smart Home portfolios, with trial dates set for the Google/YouTube matter in December 2026 and the Samsung matter in June 2027. The dividend policy remains subject to periodic Board review.