Network-1 Technologies (NTIP) AI Stock Analysis

• Market Cap: $28.56M
• Dividend Yield: 8%
• Average Volume (3M): 8.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.18
• Revenue Growth: -87.89%
• EPS Growth: -44.93%
• Country: US
• Employees: 2
• Sector: Industrials
• Sector Strength: 94
• Industry: Specialty Business Services
• EPS (TTM): -0.02
• Shares Outstanding: 22,846,563
• 10 Day Avg. Volume: 8,385
• 30 Day Avg. Volume: 8,841
• PEG Ratio: 0.08
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -25.84
• Enterprise Value/Market Cap: 0.51
• Enterprise Value/Revenue: 2.37
• Enterprise Value/Gross Profit: 203.98
• Enterprise Value/Ebitda: -1.89
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: $1.00 ▼(-20.00%Downside)

The overall stock score reflects significant financial challenges faced by Network-1 Technologies, primarily due to declining revenues and persistent net losses. While the company maintains a strong equity position, its operational inefficiencies and negative cash flows raise sustainability concerns. Technical analysis suggests a neutral to bearish outlook, further impacting investor sentiment. The high dividend yield offers some appeal, but the negative P/E ratio underscores profitability issues.

Network-1 Technologies Business Overview & Revenue Model

Company Description

Network-1 Technologies, Inc. develops, licenses, and protects intellectual property assets. The company owns 95 patents, including the Cox patent portfolio relating to enabling technology for identifying media content on the Internet; M2M/IoT patent portfolio related to enabling technology for authenticating, provisioning, and using embedded sim cards in next generation IoT, machine-to-machine, and other mobile devices, including smartphones, tablets, and computers; and HFT patent portfolio covering technologies relating to high frequency trading that addresses technological problems associated with speed and latency, and provide critical latency gains in trading systems. Its patents also comprise 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 the remote power patent covering the delivery of power over Ethernet cables for the purpose of remotely powering network devices, such as wireless access ports, IP phones, and network-based cameras. The company was formerly known as Network-1 Security Solutions, Inc. and changed its name to Network-1 Technologies, Inc. in October 2013. Network-1 Technologies, Inc. was incorporated in 1990 and is headquartered in New Canaan, Connecticut.

How the Company Makes Money

Network-1 Technologies generates revenue primarily through the licensing of its intellectual property assets. The company enters into license agreements with third parties, allowing them to use its patented technologies in exchange for licensing fees. Additionally, Network-1 may engage in litigation to enforce its patent rights and secure settlements or judgments, which can also contribute to its revenue streams. The company's earnings are significantly influenced by its ability to identify valuable patents, successfully negotiate licensing agreements, and effectively enforce its intellectual property rights.

Network-1 Technologies Financial Statement Overview

Summary

Network-1 Technologies displays financial instability, characterized by declining revenues and persistent net losses, which undermine profitability. Despite a strong equity position and low leverage, the company faces challenges with operational cash flows and asset shrinkage. The downward trend in revenue and free cash flow raises concerns about future growth prospects. The company must address operational inefficiencies and stabilize its revenue streams to improve financial health.

Income Statement

The income statement reveals a declining revenue trend with a significant drop from $36.03M in 2021 to $100K in 2024, leading to negative net income. The gross profit margin stands at 72% for 2024, but the company struggles with negative EBIT and EBITDA margins due to high expenses relative to revenue. The net profit margin also reflects losses. Revenue growth has been inconsistent, with a drastic decline in recent years.

Balance Sheet

The balance sheet shows a strong equity position with a debt-to-equity ratio near zero, indicating low leverage. Stockholders' equity remains robust at $44.31M in 2024, comprising most of the total assets. However, the shrinking asset base and consistent equity declines may signal future challenges. The equity ratio is high, indicating stability, but declining asset levels could be concerning.

Cash Flow

Cash flow statements demonstrate fluctuating free cash flow, with negative growth in recent years, and operating cash flow turning negative in 2024. The company maintains a positive cash balance, but negative free cash flow and operating cash flow to net income ratios suggest operational inefficiencies. The cash position is eroding due to negative operating cash flows, raising sustainability concerns.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
100.00K	2.60M	0.00	36.03M	4.40M
	Gross Profit
72.00K	1.73M	-809.00K	23.88M	2.75M
	EBIT
-3.62M	-2.23M	-3.90M	19.59M	-2.41M
	EBITDA
-3.62M	-1.90M	279.00K	19.88M	-2.41M
	Net Income Common Stockholders
-3.03M	-1.46M	-687.00K	14.28M	-922.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
40.60M	45.47M	48.44M	59.62M	44.87M
	Total Assets
45.41M	52.28M	57.97M	64.82M	51.19M
	Total Debt
24.00K	23.00K	173.00K	0.00	0.00
	Net Debt
-13.12M	-16.87M	-13.28M	-44.50M	-25.50M
	Total Liabilities
1.10M	1.58M	2.86M	4.66M	2.03M
	Stockholders Equity
44.31M	50.69M	55.11M	60.16M	49.16M
Cash Flow		Free Cash Flow
-1.08M	331.00K	-5.96M	19.40M	-554.00K
	Operating Cash Flow
-1.08M	331.00K	-5.44M	19.50M	-503.00K
	Investing Cash Flow
1.05M	6.54M	-22.27M	2.99M	6.31M
	Financing Cash Flow
-3.72M	-3.42M	-3.34M	-3.50M	-2.88M

Network-1 Technologies Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTIP, the sentiment is Neutral. The current price of 1.25 is above the 20-day moving average (MA) of 1.25, below the 50-day MA of 1.26, and below the 200-day MA of 1.32, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.99 is Neutral, neither overbought nor oversold. The STOCH value of 40.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NTIP.

Network-1 Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGRP	67 Neutral	$24.27M	2.10	-11.99%	―	-12.74%	751.07%
Sector *	65 Neutral	$4.46B	12.18	5.23%	249.77%	4.11%	-12.28%
ACTG	61 Neutral	$358.72M	7.73	-2.09%	―	65.22%	-133.47%
NTIP	50 Neutral	$28.56M	―	-5.44%	8.00%	-87.89%	-44.93%
OMEX	48 Neutral	$24.49M	―		―	-2.44%	―
SST	47 Neutral	$33.90M	―	-80.45%	―	-19.84%	49.40%
LICN		$3.48M	―		―	―	―