Network-1 Technologies (NTIP) AI Stock Analysis

• Market Cap: $28.56M
• Dividend Yield: 8%
• Average Volume (3M): 12.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• Revenue Growth: -87.89%
• EPS Growth: -44.93%
• Country: US
• Employees: 2
• Sector: Industrials
• Sector Strength: 86
• Industry: Specialty Business Services
• EPS (TTM): -0.02
• Shares Outstanding: 22,846,563
• 10 Day Avg. Volume: 23,343
• 30 Day Avg. Volume: 12,095
• PEG Ratio: 0.73
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.79
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 6.37
• Enterprise Value/Gross Profit: 109.29
• Enterprise Value/Ebitda: -2.65
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• 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 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 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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	526.00K	100.00K	2.60M	0.00	36.03M	4.40M
Gross Profit	272.00K	72.00K	1.73M	-809.00K	23.88M	2.75M
EBITDA	-3.18M	-3.44M	-1.90M	279.00K	19.88M	-2.08M
Net Income	-2.48M	-3.03M	-1.46M	-2.33M	14.28M	-1.71M
Balance Sheet
Total Assets	43.87M	45.41M	52.28M	57.97M	64.82M	51.19M
Cash, Cash Equivalents and Short-Term Investments	39.19M	40.60M	45.47M	48.44M	59.62M	44.87M
Total Debt	7.00K	24.00K	23.00K	173.00K	0.00	0.00
Total Liabilities	1.17M	1.10M	1.58M	2.86M	4.66M	2.03M
Stockholders Equity	42.70M	44.31M	50.69M	55.11M	60.16M	49.16M
Cash Flow
Free Cash Flow	-321.00K	-1.08M	331.00K	-5.96M	19.40M	-554.00K
Operating Cash Flow	-321.00K	-1.08M	331.00K	-5.44M	19.50M	-503.00K
Investing Cash Flow	-1.93M	1.05M	6.54M	-22.27M	2.99M	6.31M
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 Price: 1.25
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGRP	67 Neutral	$22.06M	2.10	-11.99%	―	-12.74%	751.07%
Sector *	61 Neutral	C$6.56B	9.38	3.44%	2.88%	6.99%	-11.09%
ACTG	57 Neutral	$359.68M	7.73	-2.09%	―	65.22%	-133.47%
NTIP	52 Neutral	$28.56M	―	-5.44%	8.00%	-87.89%	-44.93%
SST	52 Neutral	$59.69M	―	-80.45%	―	-19.84%	49.40%
OMEX	49 Neutral	$37.60M	―		―	-2.44%	―
LICN		$2.96M	―		―	―	―

Network-1 Technologies Corporate Events

Network-1 Technologies Sues Samsung Over Patent Infringement

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.

Network-1 Technologies Extends Share Repurchase Program

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.