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Network-1 Technologies Inc (NTIP)
:NTIP

Network-1 Technologies (NTIP) AI Stock Analysis

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Network-1 Technologies

(NYSE MKT:NTIP)

Rating:52Neutral
Price Target:
$1.50
▲(20.00%Upside)
Network-1 Technologies faces significant financial challenges with declining revenues and operational inefficiencies. The corporate strategy of share repurchases indicates confidence in financial stability, but ongoing litigation poses risks. Technical indicators remain neutral, and while the dividend yield is attractive, the negative P/E ratio raises concerns about the company's valuation.

Network-1 Technologies (NTIP) vs. SPDR S&P 500 ETF (SPY)

Network-1 Technologies Business Overview & Revenue Model

Company DescriptionNetwork-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 MoneyNetwork-1 Technologies generates revenue primarily through its intellectual property licensing model. The company acquires patents and intellectual property, often through purchase or internal development, and then licenses these patents to third-party companies. Revenue is derived from licensing fees and royalties paid by these companies for the use of Network-1's patented technologies. Additionally, the company may engage in litigation to enforce its patents and secure settlements or judgments, which can also contribute to its earnings. Significant partnerships with technology firms or legal entities may enhance its ability to manage and monetize its patent portfolio effectively.

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.
Income Statement
45
Neutral
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
60
Neutral
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue526.00K100.00K2.60M0.0036.03M4.40M
Gross Profit272.00K72.00K1.73M-809.00K23.88M2.75M
EBITDA-3.18M-3.44M-1.90M279.00K19.88M-2.08M
Net Income-2.48M-3.03M-1.46M-2.33M14.28M-1.71M
Balance Sheet
Total Assets43.87M45.41M52.28M57.97M64.82M51.19M
Cash, Cash Equivalents and Short-Term Investments39.19M40.60M45.47M48.44M59.62M44.87M
Total Debt7.00K24.00K23.00K173.00K0.000.00
Total Liabilities1.17M1.10M1.58M2.86M4.66M2.03M
Stockholders Equity42.70M44.31M50.69M55.11M60.16M49.16M
Cash Flow
Free Cash Flow-321.00K-1.08M331.00K-5.96M19.40M-554.00K
Operating Cash Flow-321.00K-1.08M331.00K-5.44M19.50M-503.00K
Investing Cash Flow-1.93M1.05M6.54M-22.27M2.99M6.31M
Financing Cash Flow-3.57M-3.72M-3.42M-3.34M-3.50M-2.88M

Network-1 Technologies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.25
Price Trends
50DMA
1.24
Positive
100DMA
1.27
Negative
200DMA
1.29
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
51.69
Neutral
STOCH
57.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTIP, the sentiment is Positive. The current price of 1.25 is above the 20-day moving average (MA) of 1.24, above the 50-day MA of 1.24, and below the 200-day MA of 1.29, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.69 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NTIP.

Network-1 Technologies Risk Analysis

Network-1 Technologies disclosed 23 risk factors in its most recent earnings report. Network-1 Technologies reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Network-1 Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$22.06M2.10-11.99%-12.74%751.07%
61
Neutral
C$6.56B9.383.44%2.88%6.99%-11.09%
57
Neutral
$359.68M7.73-2.09%65.22%-133.47%
52
Neutral
$28.56M-5.44%8.00%-87.89%-44.93%
SSSST
52
Neutral
$59.69M-80.45%-19.84%49.40%
49
Neutral
$37.60M
-2.44%
$2.96M
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NTIP
Network-1 Technologies
1.25
-0.18
-12.59%
ACTG
Acacia Research
3.74
-1.50
-28.63%
OMEX
Odyssey Marine Exploration
1.20
-3.34
-73.57%
SGRP
Spar Group
0.94
-1.30
-58.04%
SST
System1
6.04
-8.86
-59.46%
LICN
Lichen China Ltd. Class A
4.18
-333.82
-98.76%

Network-1 Technologies Corporate Events

Legal ProceedingsStock Buyback
Network-1 Technologies Sues Samsung Over Patent Infringement
Negative
Jul 2, 2025

Network-1 Technologies, Inc. has initiated patent litigation against Samsung Electronics Co., LTD and Samsung Electronics America, Inc. for alleged infringement of several patents related to eSIM and 5G technologies in Samsung’s mobile devices. This legal action, filed in the United States District Court for the Eastern District of Texas, involves patents from Network-1’s M2M/IoT portfolio, which was acquired in December 2017. Additionally, Network-1’s Board of Directors has authorized a 10b5-1 trading plan to repurchase up to 1,000,000 shares of its common stock, allowing the company to buy back shares during periods when it might otherwise be restricted due to trading black-outs or insider trading laws.

Stock BuybackBusiness Operations and Strategy
Network-1 Technologies Extends Share Repurchase Program
Positive
Jun 23, 2025

On June 17, 2025, Network-1 Technologies, Inc. extended its share repurchase program, allowing the company to repurchase up to $5,000,000 of its common stock over the next two years. This decision, made by the Board of Directors, reflects Network-1’s strategy to leverage its strong cash position and is seen as beneficial for both the company and its shareholders, without affecting its future plans.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 05, 2025