Quest Patent Research Corporation

What they do

The company acquires, licenses and enforces intellectual property rights that it owns or controls, directly or through wholly-owned subsidiaries. It states it owns, controls or manages twenty-four intellectual property portfolios, with seven it is currently seeking or may seek to monetize, principally patent rights. It describes patent litigation as a necessary element of its business, and states that to date all of its patent license revenue has resulted from litigation commenced by it.

Revenue drivers

• Patent licensing and litigation settlements — The company states its primary revenue source will be licenses to use its intellectual property, including licenses granted as part of settling patent infringement lawsuits, and that all license revenue to date has come from litigation it commenced.
• IP portfolio acquisition and monetization — It acquires IP rights outright or via exclusive license, often with structures where the seller or financing source receives first net proceeds from monetization.

Recent performance

Recent quarterly revenue was $2.0M for the period ended 2026-06-30, up from $850,000 for 2024-06-30 and $900,000 for 2024-09-30, with $0.00 reported for 2024-12-31. At 2026-06-30 the company reported total assets of $10.0M, total liabilities of $32.3M and cash and equivalents of $480,606. Its balance sheet shows a funding liability of $26,319,092, a related-party loan payable of $2,796,500, and a stockholders' deficit of $22,246,786. Annual net income was $2.0M in 2025, following a $2.5M net loss in 2024, while operating cash flow was negative $5.9M in 2025. Diluted EPS was negative $1.59 in 2025.

Strategy

The company states it intends to acquire intellectual property rights, either through ownership or exclusive license, targeting technologies with potentially significant markets. It uses a due diligence process covering title and inventorship, patent drafting and prosecution quality, legal risks of licensing programs, marketplace applicability, and venue and procedural issues. Because it has limited cash, it expects to continue granting financing sources interests or first net proceeds in acquired IP until it generates sufficient cash to buy portfolios without outside financing.

Risks

• Going concern and history of losses — The independent auditors included a substantial doubt going concern paragraph for the year ended December 31, 2025, citing a history of losses, stockholders' equity deficiency and working capital deficiency of approximately $27,200,000 at December 31, 2025.
• Dependence on litigation for revenue — The company states all patent license revenue to date has resulted from litigation it commenced, and adverse decisions or fee awards could bankrupt a subsidiary and trigger defaults under financing agreements.
• Funding and financing concentration — It depends on funding sources including QPRC Finance, QF3 and QFL, and failure to meet obligations under patent purchase agreements could cause defaults or reduce QF3's willingness to make advances.
• Leverage and cash constraints — At 2026-06-30 total liabilities were $32.3M against $10.0M of total assets and $480,606 of cash, leaving it dependent on external financing for operations and legal fees.

Outlook

Management identifies as risks its ability to generate revenue from its IP rights, obtain financing, and remain current on patent purchase agreement obligations. It states its primary revenue source is expected to be licensing, including licenses granted as part of litigation settlements. The going concern qualification and working capital deficiency indicate continued dependence on funding sources including QPRC Finance, QF3 and QFL.