Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM 10-Q

_________________

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to__________

Commission File Number 1-15288

NETWORK-1 TECHNOLOGIES, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware		11-3027591
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

65 Locust Avenue, Third Floor New Canaan, Connecticut		06840
(Address of principal executive offices)		(Zip Code)

203-920-1055

(Registrant’s Telephone Number)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Name of each exchange on which registered
Common Stock, par value $0.01 per share	NTIP	NYSE American

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§223.405) of this chapter during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐		Accelerated filer ☐

Non-accelerated filer ☒		Smaller reporting Company ☒

		Emerging growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of the registrant’s common stock, $.01 par value per share, outstanding as of October 21, 2024 was 23,036,537.

NETWORK-1 TECHNOLOGIES, INC.

Form 10-Q Index

		Page No.
PART I.	Financial Information

Item 1.	Condensed Consolidated Financial Statements (unaudited)

	Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023	4

	Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2024 and 2023	5

	Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended September 30, 2024 and 2023	6

	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023	8

	Notes to Unaudited Condensed Consolidated Financial Statements	9

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	23

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28

Item 4.	Controls and Procedures	28


PART II.	Other Information

Item 1.	Legal Proceedings	29

Item 1A.	Risk Factors	29

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29

Item 3.	Defaults Upon Senior Securities	30

Item 5.	Other Information	30

Item 6.	Exhibits	31

Signatures		32

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains “forward-looking statements” that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. The statements contained in this Quarterly Report on Form 10-Q that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include any expectation of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management for future operations; factors that may affect our operating results; statements related to future performance and other matters that do not relate strictly to historical facts or statements of assumptions underlying any of the foregoing. Forward-looking statements are often identified by the use of words such as, but not limited to, “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “will,” “plan,” “project,” “seek,” “should,” “target,” “would,” and similar expressions or variations intended to identify forward-looking statements. These statements are based on the beliefs and assumptions of our management based on information currently available to management. Such forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. Factors that could cause or contribute to such differences include various risks and uncertainties described below and elsewhere in this Quarterly Report on Form 10-Q as well as in our Annual Report on Form 10-K for the year ended December 31, 2023 (filed with the SEC on March 8, 2024). Furthermore, such forward-looking statements speak only as of the date of this report. Such risks and uncertainties include, but are not limited to, the following:

•

our uncertain revenue from licensing our intellectual property;

•

uncertainty of the outcome of our pending litigations;

•

our ability to achieve future revenue from our patent portfolios;

•

our ability to protect our patents;

•

our ability to execute our strategy to acquire or make investments in high quality patents with significant licensing opportunities;

•

our ability to enter into strategic relationships with third parties to license or otherwise monetize their intellectual property;

•

our ability to achieve a return on our investment in ILiAD Biotechnologies, LLC;

•

our ability to continue to acquire additional intellectual property;

•

uncertainty as to whether cash dividends will continue to be paid;

•

variations in our quarterly and annual operating results;

•

the increasing development of artificial intelligence could materially impact our business;

•

the risk that we may be determined to be a personal holding company in 2024 or future years which may result in our issuing a special cash dividend to our stockholders to the extent we have undistributed personal holding company income resulting in less cash available for our operations and strategic transactions; and

•

legislative, regulatory and competitive developments.

Item 1. Condensed Consolidated Financial Statements

NETWORK-1 TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


	September 30, 2024			December 31, 2023
ASSETS CURRENT ASSETS:
Cash and cash equivalents	$	14,315,000		$	16,896,000
Marketable securities, at fair value		27,201,000			28,571,000
Other current assets		141,000			206,000
TOTAL CURRENT ASSETS		41,657,000			45,673,000
OTHER ASSETS:
Patents, net of accumulated amortization		1,236,000			1,326,000
Equity investment		3,636,000			5,249,000
Operating leases right-of-use asset		43,000			16,000
Security deposit		13,000			13,000
Total Other Assets		4,928,000			6,604,000
TOTAL ASSETS	$	46,585,000		$	52,277,000
LIABILITIES AND STOCKHOLDERS’ EQUITY: CURRENT LIABILITIES:
Accounts payable	$	371,000		$	125,000
Accrued payroll		6,000			378,000
Other accrued expenses		182,000			297,000
Operating lease obligation, current		40,000			23,000
Total Current Liabilities		599,000			823,000
LONG TERM LIABILITIES:
Deferred tax liability		407,000			762,000
TOTAL LIABILITIES		1,006,000			1,585,000
COMMITMENTS AND CONTINGENCIES (Note G)
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value, authorized 10,000,000 shares; none issued and outstanding at September 30, 2024 and December 31, 2023		—			—
Common stock, $0.01 par value; authorized 50,000,000 shares; 23,110,495 and 23,553,908 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively		231,000			235,000
Additional paid-in capital		67,757,000			67,446,000
Accumulated deficit		(22,409,000	)		(16,989,000	)

TOTAL STOCKHOLDERS’ EQUITY		45,579,000			50,692,000
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	46,585,000		$	52,277,000

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

NETWORK-1 TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(UNAUDITED)


	Three Months Ended September,						Nine Months Ended September,
	2024			2023			2024			2023

REVENUE	$	—		$	—		$	100,000		$	820,000

OPERATING EXPENSES:
Costs of revenue		—			—			28,000			232,000
Professional fees and related costs		290,000			109,000			656,000			466,000
General and administrative		576,000			679,000			1,764,000			2,070,000
Amortization of patents		30,000			71,000			90,000			236,000

TOTAL OPERATING EXPENSES		896,000			859,000			2,538,000			3,004,000

OPERATING LOSS		(896,000	)		(859,000	)		(2,438,000	)		(2,184,000	)
OTHER INCOME:
Interest and dividend income, net		524,000			406,000			1,407,000			1,161,000
Net realized and unrealized gain on marketable securities		293,000			131,000			395,000			420,000
Total other income, net		817,000			537,000			1,802,000			1,581,000
LOSS BEFORE INCOME TAXES AND SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE		(79,000	)		(322,000	)		(636,000	)		(603,000	)

INCOME TAXES PROVISION:
Current		—			(13,000	)		—			(13,000	)
Deferred taxes, net		(71,000	)		(31,000	)		(355,000	)		(278,000	)
Total income tax benefit		(71,000	)		(44,000	)		(355,000	)		(229,000	)

LOSS BEFORE SHARE OF NET LOSS OF EQUITY METHOD INVESTEE:		(8,000	)		(278,000	)		(281,000	)		(312,000	)

SHARE OF NET LOSS OF EQUITY METHOD INVESTEE		(308,000	)		(532,000	)		(1,613,000	)		(1,597,000	)
NET LOSS	$	(316,000	)	$	(810,000	)	$	(1,894,000	)	$	(1,909,000	)
Net loss per share
Basic	$	(0.01	)	$	(0.03	)	$	(0.08	)	$	(0.08	)
Diluted	$	(0.01	)	$	(0.03	)	$	(0.08	)	$	(0.08	)

Weighted average common shares outstanding:
Basic		23,126,480			23,803,567			23,337,716			23,867,204
Diluted		23,126,480			23,803,567			23,337,716			23,867,204

Cash dividends declared per share	$	0.05		$	0.05		$	0.10		$	0.10
NET LOSS	$	(316,000	)	$	(810,000	)	$	(1,894,000	)	$	(1,909,000	)

OTHER COMPREHENSIVE LOSS
Net unrealized holding gain on corporate bonds and notes during the period, net of tax		—			14,000			—			14,000

COMPREHENSIVE LOSS	$	(316,000	)	$	(796,000	)	$	(1,894,000	)	$	(1,895,000	)

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

NETWORK-1 TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(UNAUDITED)

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024


													Accumulated
							Additional						Other		Total
	Common Stock						Paid-in			Accumulated			Comprehensive		Stockholders’
	Shares			Amount			Capital			Deficit			Loss		Equity

Balance – January 1, 2024		23,553,908		$	235,000		$	67,446,000		$	(16,989,000	)		—	$	50,692,000
Dividends and dividend equivalents declared		—			—			—			(1,207,000	)		—		(1,207,000	)
Stock-based compensation		—			—			115,000			—			—		115,000
Vesting of restricted stock units		111,250			1,000			(1,000	)		—			—		—
Value of shares delivered to pay withholding taxes		(28,853	)		—			—			(61,000	)		—		(61,000	)
Treasury stock purchased and retired		(83,744	)		(1,000	)		—			(185,000	)		—		(186,000	)
Net loss		—			—			—			(920,000	)		—		(920,000	)
Balance – March 31, 2024		23,552,561		$	235,000		$	67,560,000		$	(19,362,000	)		—	$	48,433,000
Stock-based compensation		—			—			95,000			—			—		95,000
Vesting of restricted stock units		11,250			1,000			(1,000	)		—			—		—
Treasury stock purchased and retired		(373,701	)		(4,000	)		—			(693,000	)		—		(697,000	)
Net loss		—			—			—			(658,000	)		—		(658,000	)
Balance – June 30, 2024		23,190,110		$	232,000		$	67,654,000		$	(20,713,000	)		—	$	47,173,000
Dividends and dividend equivalents declared		—			—			—			(1,181,000	)		—		(1,181,000	)
Stock-based compensation		—			—			103,000			—			—		103,000
Vesting of restricted stock units		40,000			—			—			—			—		—
Treasury stock purchased and retired		(119,615	)		(1,000	)		—			(199,000	)		—		(200,000	)
Net loss		—			—			—			(316,000	)		—		(316,000	)
Balance – September 30, 2024		23,110,495		$	231,000		$	67,757,000		$	(22,409,000	)		—	$	45,579,000

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

NETWORK-1 TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(UNAUDITED)

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023


													Accumulated
							Additional						Other			Total
	Common Stock						Paid-in			Accumulated			Comprehensive			Stockholders’
	Shares			Amount			Capital			Deficit			Loss			Equity

Balance – January 1, 2023		23,863,639		$	239,000		$	66,939,000		$	(12,055,000	)	$	(14,000	)	$	55,109,000
Dividends and dividend equivalents declared		—			—			—			(1,196,000	)		—			(1,196,000	)
Stock-based compensation		—			—			161,000			—			—			161,000
Vesting of restricted stock units		123,750			1,000			(1,000	)		—			—			—
Value of shares delivered to pay withholding taxes		(39,099	)		—			—			(83,000	)		—			(83,000	)
Treasury stock purchased and retired		(136,785	)		(1,000	)		—			(305,000	)		—			(306,000	)
Net loss		—			—			—			(623,000	)		—			(623,000	)
Balance – March 31, 2023		23,811,505		$	239,000		$	67,099,000		$	(14,262,000	)	$	(14,000	)	$	53,062,000
Stock-based compensation		—			—			106,000			—			—			106,000
Vesting of restricted stock units		11,250			—			—			—			—			—
Treasury stock purchased and retired		(11,495	)		(1,000	)		—			(25,000	)		—			(26,000	)
Net loss		—			—			—			(476,000	)		—			(476,000	)
Balance – June 30, 2023		23,811,260		$	238,000		$	67,205,000		$	(14,763,000	)	$	(14,000	)	$	52,666,000
Dividends and dividend equivalents declared		—			—			—			(1,194,000	)		—			(1,194,000	)
Stock-based compensation		—			—			121,000			—			—			121,000
Vesting of restricted stock units		11,250			—			—			—			—			—
Treasury stock purchased and retired		(163,038	)		(2,000	)		—			(371,000	)		—			(373,000	)
Realized gain on corporate bond		—			—			—			—			14,000			14,000
Net loss		—			—			—			(810,000	)		—			(810,000	)
Balance – September 30, 2023		23,659,472		$	236,000		$	67,326,000		$	(17,138,000	)	$	—		$	50,424,000

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

NETWORK-1 TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)


	Nine Months Ended September 30,
	2024			2023

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(1,894,000	)	$	(1,909,000	)
Adjustments to reconcile net loss to net cash used in operating activities
Amortization of patents		90,000			236,000
Stock-based compensation		313,000			388,000
Loss allocated from equity method investment		1,613,000			1,597,000
Unrealized gain on marketable securities		(244,000	)		(27,000	)
Deferred tax (benefit) expense		(355,000	)		(278,000	)
Amortization of operating leases – right of use assets		48,000			47,000

Changes in operating assets and liabilities:
Other current assets		65,000			307,000
Prepaid taxes		—			(131,000	)
Security deposit		—			(13,000	)
Accounts payable		246,000			(257,000	)
Income taxes payable		—			(89,000	)
Operating lease obligations		(58,000	)		(52,000	)
Accrued expenses		(509,000	)		(572,000	)
NET CASH USED IN OPERATING ACTIVITIES		(685,000	)		(753,000	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of marketable securities		13,582,000			44,488,000
Purchases of marketable securities		(11,968,000	)		(33,138,000	)

NET CASH PROVIDED BY INVESTING ACTIVITIES		1,614,000			11,350,000
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash dividends paid		(2,366,000	)		(2,371,000	)
Value of shares delivered to fund payment of withholding taxes		(61,000	)		(83,000	)
Repurchases of common stock, inclusive of commissions and excise tax		(1,083,000	)		(705,000	)

NET CASH USED IN FINANCING ACTIVITIES:		(3,510,000	)		(3,159,000	)

NET INCREASE IN CASH AND CASH EQUIVALENTS		(2,581,000	)		7,438,000

CASH AND CASH EQUIVALENTS, beginning of period		16,896,000			13,448,000

CASH AND CASH EQUIVALENTS, end of period	$	14,315,000		$	20,886,000

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for:
Interest		—			—
Income taxes		—		$	67,000

NON-CASH FINANCING ACTIVITIES
Accrued dividend rights on restricted stock units	$	59,000		$	22,000
Right of use asset for lease liability	$	75,000		$	98,000

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements

NETWORK-1 TECHNOLOGIES, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

NOTE A – BASIS OF PRESENTATION AND NATURE OF BUSINESS

[1] BASIS OF PRESENTATION

The accompanying condensed consolidated financial statements are unaudited, but, in the opinion of the management of Network-1 Technologies, Inc. (the “Company”), contain all adjustments consisting only of normal recurring items which the Company considers necessary for the fair presentation of the Company’s financial position as of September 30, 2024, and the results of its operations and comprehensive loss and its changes in stockholders’ equity for the three and nine months periods ended September 30, 2024 and September 30, 2023, and the statement of cash flows for the nine months ended September 30, 2024 and September 30, 2023. The unaudited condensed consolidated financial statements included herein have been prepared in accordance with the accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with U.S. GAAP may have been omitted pursuant to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 8, 2024. The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results of operations to be expected for the full year.

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Mirror Worlds Technologies, LLC and HFT Solutions, LLC. All intercompany balances and transactions have been eliminated in consolidation.

[2] BUSINESS

The Company is engaged in the development, licensing and protection of its intellectual property assets. The Company presently owns one-hundred four (104) U.S. patents, fifty-four (54) of such patents have expired, and sixteen (16) foreign patents related to (i) the Cox patent portfolio (the “Cox Patent Portfolio) relating to enabling technology for identifying media content on the Internet and taking further actions to be performed after such identification; (ii) the M2M/IoT patent portfolio (the “M2M/IoT Patent Portfolio”) relating to, among other things, enabling technology for authenticating and using eSIM (embedded Subscriber Identification Module) technology in Internet of Things (“IoT”), Machine-to-Machine, and other mobile devices, including smartphones, tablets and computers, as well as automobiles; (iii) the HFT patent portfolio (the “HFT Patent Portfolio”) covering certain advanced technologies relating to high frequency trading, which inventions specifically address technological problems associated with speed and latency and provide critical latency gains in trading systems where the difference between success and failure may be measured in nanoseconds; (iv) the Mirror Worlds patent portfolio (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 (v) the remote power patent (the “Remote Power Patent”) covering delivery of Power over Ethernet (PoE) cables for the purpose of remotely powering network devices, such as wireless access ports, IP phones and network based cameras.

NOTE A – BASIS OF PRESENTATION AND NATURE OF BUSINESS (continued)

The Company’s current strategy includes continuing to pursue licensing opportunities for its patent portfolios. In addition, the Company reviews opportunities to acquire or license additional intellectual property as well as other strategic alternatives. The Company’s patent acquisition and development strategy is to focus on acquiring high quality patents which management believes have the potential to generate significant licensing opportunities as the Company has achieved with respect to its Remote Power Patent and Mirror Worlds Patent Portfolio. In addition, the Company may also enter into strategic relationships with third parties to develop, commercialize, license or otherwise monetize their intellectual property.

The Company has also made equity investments totaling $7,000,000 in ILiAD Biotechnologies, LLC (“ILiAD”), a clinical stage biotechnology company (see Note J hereof).

NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

[1]

Use of Estimates and Assumptions

The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. The significant estimates and assumptions made in the preparation of the Company’s unaudited condensed consolidated financial statements include costs related to the Company’s assertion of litigation, valuation of the Company’s patent portfolios, stock-based compensation, the recoverability of deferred tax assets and the carrying value of the Company’s equity method investments. Actual results could be materially different from those estimates upon which the carrying values were based.

Certain amounts recorded to reflect the Company’s share of income or losses of its equity method investee, accounted for under the equity method, are based on estimates and the unaudited results of operations of the equity method investee and may require adjustment in the future when the audit of the equity method investee is complete. The Company reports its share of the results of its equity method investee on a one quarter lag basis.

[2]

Revenue Recognition

Under ASC 606, revenue is recognized when the Company completes the licensing of its intellectual property to its licensees, obtains a final judgment awarding damages or enters into a litigation settlement agreement involving its patents. With respect to licensing its intellectual property, obtaining a final judgment or entering into a litigation settlement agreement, revenue is recognized in an amount that reflects the consideration the Company expects to be entitled to in exchange for licensing its intellectual property, obtaining a final judgment or in a settlement of the litigation.

The Company determines revenue recognition through the following steps:

•

identification of the license agreement, the final judgment or the litigation settlement agreement;

•

identification of the performance obligations in the license agreement, the final judgment or the litigation settlement agreement;

•

determination of the consideration for the license, final judgment or settlement;

•

allocation of the transaction price to the performance obligations in the contract; and

•

recognition of revenue when the Company satisfies its performance obligations.

NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Revenue disaggregated by source is as follows:

Schedule of revenue disaggregated
	Nine Months Ended September 30,				Three Months Ended September 30,
	2024		2023		2024		2023

Litigation settlements	$	100,000	$	820,000	$	—	$	—
Total Revenue	$	100,000	$	820,000	$	—	$	—

During the three months ended September 30, 2024 and 2023, the Company had no revenue.

Revenue from the Company’s patent licensing and enforcement business is typically generated from negotiated license agreements or settlement agreements with respect to any of the Company’s patents. The timing and amount of revenue recognized from each licensee or such settlement agreement depends upon a variety of factors, including the terms of each agreement and the nature of the obligations of the parties. These agreements may include, but not be limited to, elements related to past infringement liabilities, non-refundable upfront license fees, and ongoing royalties on licensed products sold by the licensee. Generally, in the event of a litigation settlement related to the Company’s assertion of patent infringement involving its intellectual property, defendants may either pay (i) a non-refundable lump sum payment for a non-exclusive fully-paid license, (ii) a non-refundable lump sum payment (license initiation fee) together with an ongoing obligation to pay quarterly or monthly royalties to the Company for the life of the licensed patent, or (iii) a lump sum settlement payment with respect to litigation involving the Company’s expired patents.

Fully-paid licenses provide for a non-refundable up-front payment for which the Company has no future obligations or performance requirements, revenue is generally recognized when the Company has obtained the signed license agreement, all performance obligations have been substantially performed, amounts are fixed and determinable, and collectability is reasonably assured. Revenue from fully-paid licenses may consist of one or more installments. The timing and amount of revenue recognized from each licensee depends upon a number of factors including the specific terms of each agreement and the nature of the deliverables and obligations.

[3]

Equity Method Investments

Equity method investments are equity securities in entities the Company does not control but over which it has the ability to exercise significant influence. These investments are accounted for under the equity method of accounting in accordance with ASC 323, Investments — Equity Method and Joint Ventures (see Note J hereof). Equity method investments are measured at cost minus impairment, if any, plus or minus the Company’s share of an investee’s income or loss. The Company’s proportionate share of the income or loss from equity method investments is recognized on a one-quarter lag. When the Company’s carrying value in an equity method investment is reduced to zero, no further losses are recorded in the Company’s financial statements unless the Company has guaranteed obligations of the investee company or has committed additional funding. When the investee company subsequently reports income, the Company will not record its share of such income until it equals the amount of its share of losses not previously recognized.

[4]

Income Taxes

The Company accounts for income taxes in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 740, Income Taxes (ASC 740), which requires the Company to use the assets and liability method of accounting for income taxes. Under the assets and liability method, deferred income taxes are recognized for the tax consequences of

NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

temporary (timing) differences by applying enacted statutory tax rates applicable to future years to differences between financial statement carrying amounts and the tax bases of existing assets and liabilities and operating loss and tax credit carry forwards. Under this accounting standard, the effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. As of September 30, 2024, the Company had total deferred tax assets generated from its activities of $1,367,000. The Company’s deferred tax assets were offset by a valuation allowance of $1,367,000 as it was determined that it is more likely than not that certain deferred tax assets will not be realized. As of September 30, 2024, the Company also had a deferred tax liability of $407,000.

The personal holding company (“PHC”) rules under the Internal Revenue Code impose a 20% tax on a PHC’s undistributed personal holding company income (“UPHCI”), which means, in general, taxable income subject to certain adjustments and reduced by certain distributions to shareholders. For a corporation to be classified as a PHC, it must satisfy two tests: (i) that more than 50% in value of its outstanding shares must be owned directly or indirectly by five or fewer individuals at any time during the second half of the year (after applying constructive ownership rules to attribute stock owned by entities to their beneficial owners and among certain family members and other related parties) (the “Ownership Test”) and (ii) at least 60% of its adjusted ordinary gross income for a taxable year consists of dividends, interest, royalties, annuities and rents (the “Income Test”). At September 30, 2024, based on available information concerning the Company’s shareholder ownership, the Company did not satisfy the Ownership Test. However, during the second half of 2024 the Company may subsequently be determined to be a PHC in 2024 or in future years if it satisfies both the Ownership Test and Income Test. If the Company were to become a PHC in 2024 or any future year, it would be subject to the 20% tax on its UPHCI. In such event, the Company may issue a special cash dividend to its shareholders in an amount equal to the UPHCI rather than incur the 20% tax.

ASC 740-10, Accounting for Uncertainty in Income Taxes, defines uncertainty in income taxes and the evaluation of a tax position as a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likelihood of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. The Company had no uncertain tax positions as of September 30, 2024.

The Company recognizes interest and penalties, if any, related to income tax in the income tax provision in the unaudited condensed consolidated statements of operations and comprehensive loss.

U.S. federal, state and local income tax returns prior to 2020 are not subject to examination by any applicable tax authorities, except that tax authorities could challenge returns (only under certain circumstances) for earlier years to the extent they generated loss carry-forwards that are available for those future years.

NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

[5]

New Accounting Standards

Segments

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for all entities for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating ASU 2023-07 to determine its impact on the Company's disclosures, however, the Company does not expect ASU 2023-07 to have a material impact on the Company’s consolidated financial statements.

Income Tax Disclosure

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. ASU 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The new requirements will be effective for annual periods beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating ASU 2023-09 to determine its impact on the Company's disclosures, however, the Company does not expect ASU 2023-09 to have a material impact on the Company’s consolidated financial statements.

NOTE C – PATENTS

The Company’s intangible assets at September 30, 2024, include patents with estimated remaining economic useful lives ranging from 9 to 15 years. For all periods presented, all of the Company’s patents were subject to amortization. The gross carrying amounts and accumulated amortization related to acquired intangible assets as of September 30, 2024 and December 31, 2023 were as follows:


	September 30, 2024			December 31, 2023

Gross carrying amount – patents	$	8,473,000		$	8,473,000
Accumulated amortization – patents		(7,237,000	)		(7,147,000	)
Patents, net	$	1,236,000		$	1,326,000

Amortization expense for the three months ended September 30, 2024 and 2023 was $30,000 and $71,000, respectively. Amortization expense for the nine months ended September 30, 2024 and 2023 was $90,000 and $236,000, respectively. Future amortization of intangible assets for the next five years and thereafter is as follows:


For the Years Ended December 31,
2024 – remaining	$	30,000
2025		120,000
2026		120,000
2027		119,000
2028		116,000
Thereafter		731,000
Total	$	1,236,000

NOTE C – PATENTS (CONTINUED)

The expiration dates of patents within the Company’s M2M/IoT Patent Portfolio range from September 2033 to May 2034. The expiration dates within the Company’s HFT Patent Portfolio range from October 2039 to February 2040. All of the patents within the Company’s Mirror Worlds Patent Portfolio, Cox Patent Portfolio and the Remote Power Patent have expired.

NOTE D – STOCK-BASED COMPENSATION

Restricted Stock Units

The Company adopted the 2022 Stock Incentive Plan, (the “2022 Plan”), approved by its Board of Directors on July 25, 2022 and its stockholders on September 20, 2022. The 2022 Plan provides for the grant of any or all of the following types of awards: (a) stock options, (b) restricted stock, (c) deferred stock, (d) stock appreciation rights, and (e) other stock-based awards including restricted stock units.

As of September 30, 2024, there were 70,000 shares of common stock subject to outstanding awards under the 2022 Plan and 2,110,000 shares of common stock available for issuance under the 2022 Plan. In addition, there were 425,000 shares of common stock subject to outstanding awards under the 2013 Plan.

A summary of restricted stock unit activity for the nine months ended September 30, 2024 is as follows (each restricted stock unit issued by the Company represents the right to receive one share of the Company’s common stock):


	Number of Shares			Weighted-Average Grant Date Fair Value

Balance of restricted stock units outstanding at December 31, 2023		587,500		$	1.81
Grants of restricted stock units		70,000			2.17
Vested restricted stock units		(162,500	)		(2.38	)
Balance of restricted stock units outstanding at September 30, 2024		495,000		$	1.67

Restricted stock unit compensation expense was $103,000 and $121,000 for the three months ended September 30, 2024 and 2023, respectively. Restricted stock unit expense was $313,000 and $388,000 for the nine months ended September 30, 2024 and 2023, respectively. Stock-based compensation expense is included in general and administrative expenses in the unaudited condensed consolidated statements of operations and comprehensive loss.

The Company had an aggregate of $347,000 of unrecognized restricted stock unit compensation as of September 30, 2024 to be expensed over a weighted average period of 1.31 years.

All of the Company’s outstanding (unvested) restricted stock units have dividend equivalent rights. During the three and nine months ended September 30, 2024, the Company paid a total of $0 and $37,000, respectively, of such dividend equivalent rights. As of September 30, 2024 and December 31, 2023, there was $121,000 and $99,000, respectively, accrued for dividend equivalent rights which were included in other accrued expenses.

NOTE E – LOSS PER SHARE

Basic loss per share is calculated by dividing the net loss by the weighted average number of outstanding common shares during the period. Diluted per share data includes the dilutive effects of options and restricted stock units. Potentially dilutive shares of 495,000 and 598,750 at September 30, 2024 and 2023, respectively, consisted of outstanding restricted stock units. and stock options. However, since the Company generated a net loss in 2024 and 2023, all potentially dilutive shares were not reflected in diluted net loss per share because the impact of such instruments was anti-dilutive.

Computations of basic and diluted weighted average common shares outstanding were as follows:


	Nine Months Ended September 30,				Three Months Ended September 30,
	2024		2023		2024		2023
Weighted-average common shares outstanding – basic		23,337,716		23,867,204		23,126,480		23,803,567
Dilutive effect of restricted stock units and stock options		—		—		—		—
Weighted-average common shares outstanding – diluted		23,337,716		23,867,204		23,126,480		23,803,567
Restricted stock units excluded from the computation of diluted loss per share because the effect of inclusion would have been anti-dilutive		495,000		598,750		495,000		598,750

NOTE F – MARKETABLE SECURITIES

Marketable securities as of September 30, 2024 and December 31, 2023 were composed of the following:

Schedule of marketable securities
	September 30, 2024
	Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value

Certificates of deposit	$	755,000	$	13,000	$	—		$	768,000
Government securities		16,919,000		158,000		(8,000	)		17,069,000
Fixed income mutual funds		8,608,000		251,000		—			8,859,000
Corporate bonds and notes		502,000		3,000		—			505,000
Total marketable securities	$	26,784,000	$	425,000	$	(8,000	)	$	27,201,000

	December 31, 2023
	Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value

Certificates of deposit	$	6,112,000	$	—	$	(35,000	)	$	6,077,000
Government securities		14,701,000		127,000		(10,000	)		14,818,000
Fixed income mutual funds		7,585,000		91,000		—			7,676,000
Total marketable securities	$	28,398,000	$	218,000	$	(45,000	)	$	28,571,000

The Company’s marketable securities are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in an active market.

NOTE G – COMMITMENTS AND CONTINGENCIES

[1] Legal Fees

Russ, August & Kabat provides legal services to the Company with respect to its patent litigation filed in May 2017 against Facebook, Inc. (now Meta Platforms, Inc.) in the U.S. District Court for the Southern District of New York relating to several patents within the Company’s Mirror Worlds Patent Portfolio (see Note I[2] hereof). The terms of the Company’s agreement with Russ, August & Kabat provide for cash payments on a monthly basis subject to a cap plus a contingency fee ranging between 15% and 24% of the net recovery (after deduction of expenses) depending on the stage of the proceeding in which the result (settlement or judgment) is achieved. The Company is responsible for all approved expenses incurred with respect to this litigation.

Russ, August & Kabat also provides legal services to the Company with respect to its pending patent litigations filed in April 2014 and December 2014 against Google Inc. and YouTube, LLC in the U.S. District Court for the Southern District of New York relating to certain patents within the Company’s Cox Patent Portfolio (see Note I[1] hereof). The terms of the Company’s agreement with Russ, August & Kabat provide for legal fees on a full contingency basis ranging from 15% to 30% of the net recovery (after deduction of expenses) depending on the stage of the proceeding in which the result (settlement or judgment) is achieved. The Company is responsible for all of the approved expenses incurred with respect to this litigation.

Dovel & Luner, LLP (“Dovel”) provides legal services to the Company with respect to its patent litigation related to the Remote Power Patent (See Note I[4] hereof). The terms of the Company’s agreement with Dovel provide, among other things, for legal fees on a contingency basis ranging from 15% to 40% of the net recovery (after deduction of expenses where applicable) depending on the stage of the proceeding in which the result (settlement or judgment) is achieved. The Company is responsible for a portion of the expenses incurred with respect to this litigation.

[2] Patent Acquisitions

On March 25, 2022, the Company completed the acquisition of a new patent portfolio (HFT Patent Portfolio) currently consisting of nine U.S. patents and two pending U.S. patents covering certain advanced technologies relating to high frequency trading, which inventions specifically address technological problems associated with speed and latency and provide critical latency gains in trading systems where the difference between success and failure may be measured in nanoseconds. The Company paid the seller $500,000 at the closing and has an obligation to pay the seller an additional $500,000 in cash and $375,000 of the Company’s common stock (up to a maximum of 375,000 shares) upon achieving certain milestones with respect to the patent portfolio. The Company also has an additional obligation to pay the seller 15% of the first $50 million of net proceeds (after deduction of expenses) generated by the patent portfolio and 17.5% of net proceeds greater than $50 million. No such payments were made or accrued by the Company during the nine months ended September 30, 2024 and 2023.

In connection with the Company’s acquisition of its Cox Patent Portfolio, the Company is obligated to pay Dr. Cox 12.5% of the net proceeds (after deduction of expenses) generated by the Company from licensing, sale or enforcement of the patent portfolio. No such payments were made or accrued by the Company during the nine months ended September 30, 2024 and 2023.

As part of the acquisition of the Mirror Worlds Patent Portfolio, the Company also entered into an agreement with Recognition Interface, LLC (“Recognition”) pursuant to which Recognition received from the Company an interest in the net proceeds realized from the monetization of the Mirror Worlds Patent Portfolio, as follows: (i) 10% of the first $125 million of net proceeds; (ii)

NOTE G – COMMITMENTS AND CONTINGENCIES (CONTINUED)

15% of the next $125 million of net proceeds; and (iii) 20% of any portion of the net proceeds in excess of $250 million. Since entering into the agreement with Recognition in May 2013, the Company has paid Recognition an aggregate of $3,127,000 with respect to such net proceeds interest related to the Mirror Worlds Patent Portfolio. No such payments were made or accrued by the Company during the nine months ended September 30, 2024 and 2023.

In connection with the Company’s acquisition of its M2M/IoT Patent Portfolio, the Company is obligated to pay M2M 14% of the first $100 million of net proceeds (after deduction of expenses) and 5% of net proceeds greater than $100 million from Monetization Activities (as defined) related to the patent portfolio. In addition, M2M will be entitled to receive from the Company $250,000 of additional consideration upon the occurrence of certain future events related to the patent portfolio. No such payments were made or accrued by the Company during the nine months ended September 30, 2024 and 2023.

[3] Leases

The Company has one operating lease for its principal office space in New Canaan, Connecticut that expires on April 30, 2025. The Company pays a base rent of $5,500 for such office space. On September 29, 2023, the Company exercised its early termination right under the lease effective December 31, 2023 which was subsequently extended to March 31, 2024. On March 28, 2024, the Company agreed to revoke its exercise of its early termination right and the lease expires on April 30, 2025.

The calculated incremental borrowing rate was approximately 4.2%, which was calculated based on the remaining lease term of 3 years as of May 1, 2022. There are no material residual guarantees associated with the Company’s lease and there are no significant restrictions or covenants included in the Company’s lease agreement.

The remaining lease term as of September 30, 2024 is seven (7) months.

Right of use lease assets and related lease obligations for the Company’s operating leases were recorded in the unaudited condensed consolidated balance sheets as follows:


	As of September 30, 2024		As of December 31, 2023

Operating lease right-of-use assets	$	43,000	$	16,000

Operating lease obligations – current	$	40,000	$	23,000

The table below presents certain information related to the Company’s lease costs for the period ended:

Schedule of lease costs
	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2024		2023		2024		2023

Operating lease cost	$	18,000	$	20,000	$	45,000	$	59,000

NOTE G – COMMITMENTS AND CONTINGENCIES (CONTINUED)

Future lease payments included in the measurement of lease liabilities on the unaudited condensed consolidated balance sheet as of September 30, 2024, were as follows:


	Operating Leases

2024 – remaining period	$	18,000
2025		24,000
Total future minimum lease payments		42,000
Less imputed interest		(2,000	)
Total operating lease liability	$	40,000

NOTE–H - EMPLOYMENT ARRANGEMENTS AND OTHER AGREEMENTS

On March 22, 2022, the Company entered into an employment agreement (“Agreement”) with its Chairman and Chief Executive Officer, pursuant to which he continues to serve as the Company’s Chairman and Chief Executive Officer for a four-year term (“Term”), at an annual base salary of $535,000 which shall be increased by 3% per annum during the term of the Agreement. The Agreement established an annual target bonus of $175,000 for the Chairman and Chief Executive Officer based upon performance.

Under the terms of the Agreement (which terms are substantially the same as the prior employment agreement with the Chairman and Chief Executive Officer), so long as the Chairman and Chief Executive Officer continues to serve as an executive officer of the Company, whether pursuant to the Agreement or otherwise, the Chairman and Chief Executive Officer shall also receive incentive compensation in an amount equal to 5% of the Company’s gross royalties or other payments from Licensing Activities (as defined) (without deduction of legal fees or any other expenses) with respect to its Remote Power Patent and a 10% net interest (gross royalties and other payments after deduction of all legal fees and litigation expenses related to licensing, enforcement and sale activities, but in no event shall he receive less than 6.25% of the gross recovery) of the Company’s royalties and other payments relating to Licensing Activities with respect to patents other than the Remote Power Patent (including all of the Company’s patent portfolios and its return on investment in ILiAD Biotechnologies) (collectively, the “Incentive Compensation”). During the three and nine months ended September 30, 2024, the Chairman and Chief Executive Officer earned Incentive Compensation of $-0- and $5,000, respectively. During the three and nine months ended September 30, 2023, the Chairman and Chief Executive Officer earned Incentive Compensation of $-0- and $41,000, respectively.

NOTE I – LEGAL PROCEEDINGS

[1] On April 4, 2014 and December 3, 2014, the Company initiated litigation against Google Inc. (“Google”) and YouTube, LLC (“YouTube”) in the U.S. District Court for the Southern District of New York for infringement of several of its patents within its Cox Patent Portfolio acquired from Dr. Cox which relate to the identification of media content on the Internet. The lawsuit alleges that Google and YouTube have infringed and continue to infringe certain of the Company’s patents by making, using, selling and offering to sell unlicensed systems and related products and services, which include YouTube’s Content ID system. The litigations against Google and YouTube were subject to court ordered stays which were in effect from July 2, 2015 until January 2, 2019 as a result of proceedings at the Patent Trial and Appeal Board (PTAB) and the appeals of PTAB Final Written Decisions to the U.S. Court of Appeals for the Federal Circuit. Pursuant to a Joint Stipulation and Order Regarding Lifting of Stays, entered on January 2, 2019, the parties agreed, among other things, that the stays with respect to the litigations were lifted. In January 2019, the two litigations against Google and YouTube were consolidated. Discovery has been completed and the parties have each submitted summary judgment motions.

NOTE I – LEGAL PROCEEDINGS (CONTINUED)

On April 24, 2024, the U.S. District Court for the Southern District of New York issued a judgment dismissing the Company’s patent infringement claims finding that the asserted claims of two of the patents are invalid for indefiniteness and granting summary judgment that the asserted claims of another asserted patent are not infringed by Google’s accused system. The Court’s ruling disposes of all of the Company’s claims in the case. On May 14, 2024, the Company filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit.

[2] On May 9, 2017, Mirror Worlds Technologies, LLC, the Company’s wholly-owned subsidiary, initiated litigation against Facebook, Inc. (now Meta Platforms, Inc., “Meta”) in the U.S. District Court for the Southern District of New York, for infringement of U.S. Patent No. 6,006,227, U.S. Patent No. 7,865,538 and U.S. Patent No. 8,255,439 (among the patents within the Company’s Mirror Worlds Patent Portfolio). The lawsuit alleged that the asserted patents are infringed by Meta’s core technologies that enable Meta’s Newsfeed and Timeline features. On August 11, 2018, the Court issued an order granting Meta’s motion for summary judgment of non-infringement and dismissed the case. On August 17, 2018, the Company filed a Notice of Appeal to appeal the summary judgment decision to the U.S. Court of Appeals for the Federal Circuit. On January 23, 2020, the U.S. Court of Appeals for the Federal Circuit ruled in the Company’s favor and reversed the summary judgment finding of the District Court and remanded the litigation to the Southern District of New York for further proceedings.

On March 7, 2022, the District Court entered a ruling granting in part and denying in part a motion for summary judgment by Meta. In its ruling the Court (i) denied Meta’s motion that the asserted patents were invalid by concluding that all asserted claims were patent eligible under §101 of the Patent Act and (ii) granted summary judgment of non-infringement in favor of Meta and dismissed the case. The Company strongly disagrees with the decision of the District Court on non-infringement and on April 4, 2022, the Company filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit. On April 18, 2022, Meta filed a notice of cross-appeal with respect to the Court’s ruling on validity. Oral argument on the appeal took place on October 11, 2024 and a decision is pending.

[3] In October and November 2022, the Company initiated nine separate litigation against ten defendants for infringement of its Remote Power Patent seeking monetary damages based upon reasonable royalties, as follows: (i) On October 6, 2022, the Company initiated such litigation against Arista Networks, Inc., Fortinet, Inc., Honeywell International Inc. and Ubiquiti Inc. in the United States District Court, District of Delaware; (ii) On October 27, 2022, and November 3, 2022, the Company initiated such litigation against TP-Link USA Corporation and Hikvision USA, Inc. in the United States District Court for the Central District of California; (iii) On November 4, 2022, the Company initiated such litigation against Panasonic Holdings Corporation and Panasonic Corporation of North America in the United States District Court for the Eastern District of Texas (Marshall Division); and (iv) On November 8, 2022 and November 16, 2022, the Company initiated such litigation against Antaira Technologies, LLC and Dahua Technology USA in the United States District Court for the Central District of California.

The Company has entered into settlement agreements for an aggregate of $2,701,000 with all of the defendants in the above referenced litigations except Ubiquiti Inc. which litigation remains pending.

NOTE I – LEGAL PROCEEDINGS (CONTINUED)

During the three months ended September 30, 2024 and 2023, the Company did not enter into any settlement agreements with defendants. During the nine months ended September 30, 2024 and 2023, the Company entered into settlement agreements with defendants resulting in aggregate settlements payments of $100,000 and $820,000, respectively. A conditional payment of $150,000 in one settlement has not yet been recognized as revenue because the terms of the conditional payment have not been satisfied.

[4] On August 6, 2024, plaintiff Mitchell Mizel filed a putative class action against the Company and its Chairman and Chief Executive Officer in the United States District Court, Southern District of New York, alleging, among other things, that the Company is required to register as an “investment company” under the Investment Company Act of 1940 (the “Act”). The Company strongly disagreed with the allegations in the complaint. On October 3, 2024, the litigation was settled on terms not material to the Company and the complaint was withdrawn with prejudice.

NOTE J – INVESTMENT

During the period December 2018 through August 2022, the Company made aggregate investments of $7,000,000 in ILiAD Biotechnologies, LLC (“ILiAD”), a privately held clinical stage biotechnology company dedicated to the prevention and treatment of human disease caused by Bordetella pertussis. ILiAD is focused on validating its proprietary intranasal vaccine, BPZE1, for the prevention of pertussis (whooping cough). At September 30, 2024, the Company owned approximately 6.5% of the outstanding units of ILiAD on a non-fully diluted basis and 4.9% of the outstanding units on a fully diluted basis (after giving effect to the exercise all outstanding options and warrants). In connection with its initial investment, the Company’s Chairman and Chief Executive Officer obtained a seat on ILiAD’s Board of Managers and receives the same compensation for service on the Board of Managers as other non-management Board members.

For the three months ended September 30, 2024 and 2023, the Company recorded an allocated net loss from its equity method investment in ILiAD of $308,000 and $532,000, respectively. For the nine months ended September 30, 2024 and 2023, the Company recorded an allocated net loss from its equity method investment in ILiAD of $1,613,000 and $1,597,000, respectively.

The difference between the Company’s share of equity in ILiAD’s net assets and the purchase price of the investment is due to an excess amount paid over the book value of the investment of $6,849,000, which is accounted for as equity method goodwill.

The following table provides certain summarized financial information for ILiAD (the equity method investee) for the periods presented and has been compiled from ILiAD’s unaudited financial statements, reported on one quarter lag.


	Nine Months Ended June 30,						Three Months Ended June 30,
	2024			2023			2024			2023

Loss from continuing operations	$	(25,013,000	)	$	(17,929,000	)	$	(4,940,000	)	$	(8,232,000	)
Comprehensive loss	$	(24,409,000	)	$	(23,525,000	)	$	(4,754,000	)	$	(7,842,000	)

NOTE K – STOCK REPURCHASES

On June 13, 2023, the Board of Directors authorized an extension and increase of the Company’s share repurchase program (the “Share Repurchase Program”) to repurchase up to $5,000,000 of common stock over the subsequent 24 month period. The common stock may be repurchased from time to time in open market transactions or privately negotiated transactions at the Company’s discretion. The timing and amount of the shares repurchased is determined by management based on its evaluation of market conditions and other factors. The Share Repurchase Program may be increased, suspended or discontinued at any time. Since inception of the Share Repurchase Program through September 30, 2024, the Company has repurchased an aggregate of 10,217,856 shares of its common stock at an aggregate cost of $19,772,820 (exclusive of commissions and excise taxes) or an average per share price of $1.94.

During the three months ended September 30, 2024, the Company repurchased an aggregate of 119,615 shares of its common stock at an aggregate cost of $189,424 (exclusive of commissions and excise taxes) or an average per share price of $1.58. During the nine months ended September 30, 2024, the Company repurchased an aggregate of 577,060 shares of its common stock at an aggregate cost of $1,059,904 (exclusive of commissions and excise taxes) or an average per share price of $1.84.

On June 28, 2024, the Company entered into a written trading plan (the “10b5-1 Plan”) under Rule 10b5-1 of the Securities Exchange Act of 1934 (the “Exchange Act”). Adopting a trading plan that satisfies the conditions of Rule 10b5-1 allows a company to repurchase its shares at times when it might otherwise be prevented from doing so due to self-imposed trading black-outs or pursuant to insider trading laws. Purchases under the 10b5-1 Plan may be made during the following periods: (1) beginning on July 8, 2024 until two trading days after the Company issues a press release announcing its financial results for the quarter ended June 30, 2024, and (2) beginning on October 1, 2024 until two trading days after the Company issues a press release announcing its financial results for the quarter ended September 30, 2024. Under the 10b5-1 Plan, the Company’s third party broker may purchase up to 1,000,000 shares of the Company’s common stock, subject to certain price, market, volume and timing constraints, in accordance with the terms of the plan and subject to Rule 10b5-1 and Rule 10b-18 of the Exchange Act.

On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations occurring on or after January 1, 2023. The amount of the excise tax is generally 1% of the net fair market value of the net shares repurchased (repurchases net of new share issuances) at the time of the repurchase. The excise tax applies in cases where the total value of the stock repurchased during the taxable year exceeds $1,000,000. As such, the Company did incur the 1% excise tax during the three and nine months ended September 30, 2024 and recorded $8,000 of excise tax as a component of the cost of the repurchases of common stock.

At September 30, 2024, the dollar value of remaining shares that may be repurchased under the Share Repurchase Program was $3,312,801.

NOTE L – CONCENTRATIONS

The Company maintains cash and certificates of deposit in accounts at financial institutions. The accounts are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 at each institution. At September 30, 2024, the Company had $809,000 of cash and certificates of deposit in excess of the FDIC insured limit. The Company maintains cash equivalents in brokerage accounts at financial institutions. At September 30, 2024, the Company had cash equivalents of $13,296,000 in these brokerage accounts.

NOTE M – DIVIDEND POLICY

The Company’s dividend policy consists of semi-annual cash dividends of $0.05 per share ($0.10 per share annually) anticipated to be paid in March and September of each year. The Company has paid semi-annual cash dividends consistent with its policy. The Company’s dividend policy undergoes a periodic review by the Board of Directors and is subject to change at any time depending upon the Company’s earnings, financial requirements and other factors existing at the time.

ITEM 2:  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the financial statements and related notes contained elsewhere in this Quarterly Report on Form 10-Q.

OVERVIEW

Our principal business is the development, licensing and protection of our intellectual property assets. We presently own one-hundred four (104) U.S. patents and sixteen (16) foreign patents relating to:(i) our Cox Patent Portfolio relating to enabling technology for identifying media content on the Internet and taking further action to be performed after such identification; (ii) our M2M/IoT Patent Portfolio relating to, among other things, enabling technology for authenticating and using eSim (embedded Subscriber Identification Module) technology in IoT, Machine-to-Machine and other mobile devices, including smartphones, tablets and computers as well as automobiles; (iii) our HFT Patent Portfolio covering certain advanced technologies relating to high frequency trading, which inventions specifically address technological problems associated with speed and latency and provide critical latency gains in trading systems where the difference between success and failure may be measured in nanoseconds; (iv) our Mirror Worlds Patent Portfolio relating to foundational technologies that enable unified search and indexing, displaying and archiving of documents in a computer system; and (v) our Remote Power Patent covering the delivery of power over Ethernet (PoE) cables for the purpose of remotely powering network devices, such as wireless access ports, IP phones and network based cameras.

With respect to our one-hundred four (104) U.S. patents, fifty-four (54) of such patents have expired. However, we can assert expired patents against third parties but only for past damages up to the patent expiration date. We currently have pending litigation involving expired patents including our Remote Power Patent and certain patents within our Cox and Mirror Worlds Patent Portfolios (see Note I to our unaudited condensed consolidated financial statements included herein). Our revenue is largely dependent upon our ability to achieve successful litigation outcomes.

At September 30, 2024, our principal sources of liquidity consisted of cash and cash equivalents and marketable securities of $41,516,000 and working capital of $41,058,000. Based on our cash position, we review opportunities to acquire additional intellectual property as well as evaluate other strategic opportunities.

To date we have invested $7,000,000 in ILiAD, a clinical stage biotechnology company with an exclusive license to seventy-two (72) patents (see Note J to our unaudited condensed consolidated financial statements included herein). Our investment continues to involve significant risk and the outcome is uncertain.

We have been dependent upon our Remote Power Patent for a significant portion of our revenue. Our Remote Power Patent has generated licensing revenue in excess of $188,000,000 from May 2007 through September 30, 2024. We no longer receive licensing revenue for our Remote Power Patent for any period subsequent to March 7, 2020 (the expiration date of the patent). During the fourth quarter of 2022, we commenced nine separate litigations against ten defendants involving our Remote Power Patent for patent infringement for the period prior to March 7, 2020. As of September 30, 2024, we entered into settlements with nine defendants with respect to the aforementioned litigation, including one defendant for $100,000 for the nine months ended September 30, 2024, resulting in aggregate settlement payments made to us of $2,701,000 and a future conditional payment of $150,000 (see Note I[3] hereof). All of our revenue for 2023 and for the nine months ended September 30, 2024 was from these settlements involving our Remote Power Patent. If we are unable to successfully monetize our other patent portfolios or achieve a successful outcome of our investment in ILiAD, our business, financial condition and results of operations will be negatively impacted.

In addition, we have appealed the judgment of the District Court dismissing our litigation against Google and YouTube involving certain patents within our Cox Patent Portfolio and have also appealed the judgment of the District Court dismissing our litigation against Meta (Facebook) on the grounds of non-infringement involving certain patents within our Mirror Worlds Portfolio. We also intend to commence efforts to monetize certain patents within our HFT and M2M/IoT patent portfolios. We may not achieve successful outcomes of such appeals or litigation involving our patent assets.

Our current strategy includes continuing our licensing efforts with respect to our intellectual property assets and the monetization of our patent portfolios. In addition, we continue to seek to acquire additional intellectual property assets to develop, commercialize, license or otherwise monetize. Our strategy includes working with inventors and patent owners to assist in the development and monetization of their patented technologies. We may also enter into strategic relationships with third parties to develop, commercialize, license or otherwise monetize their intellectual property. Our patent acquisition and development strategy is to focus on acquiring high quality patents which management believes have the potential to generate significant licensing opportunities as we have achieved with respect to our Remote Power Patent and Mirror Worlds Patent Portfolio.

The significant components of expenses, when revenue is recorded, that may impact our net income (loss) relate to contingent legal fees and expenses related to our patent litigation (see Note G[1] to our unaudited condensed consolidated financial statements included herein) and incentive compensation payable to our Chairman and Chief Executive Officer pursuant to his employment agreement (see Note H to our unaudited condensed consolidated financial statements included herein). Both such components of expenses are based on a percentage of the revenue received by us as a result of litigation or otherwise.

Our annual and quarterly operating and financial results may fluctuate significantly from period to period as a result of a variety of factors that are outside our control, including the timing and our ability to achieve successful outcomes of our patent litigation, our ability and timing of consummating future license agreements for our intellectual property, and whether we will achieve a return on our investment in ILiAD and the timing of any such return.

Our future operating results may also be materially impacted by our ability to acquire high quality patents which management believes have the potential to generate significant licensing opportunities. In the future, we may not be able to identify or consummate such patent acquisitions or, if consummated, achieve significant licensing revenue with respect to such acquisitions.

In 2024 and future years we could be classified as a Personal Holding Company. If this is the case, we would be subject to a 20% tax on the amount of any undistributed personal holding company income (as defined) for such year that we do not distribute to our shareholders (see Note B[4] to our unaudited condensed consolidated financial statements included in this Quarterly Report).

RESULTS OF OPERATIONS

Three Months Ended September 30, 2024 Compared to Three Months Ended September 30, 2023

Revenue. We had no revenue for the three months ended September 30, 2024 and September 30, 2023 as we had no litigation outcomes during such periods.

Operating Expenses. Operating expenses for the three months ended September 30, 2024 were $896,000 as compared to $859,000 for the three months ended September 30, 2023. The increase in operating expenses of $37,000 was primarily as a result of increased professional fees of $181,000 offset by decreases in general and administrative expenses of $85,000, amortization of patents of $41,000 and stock-based compensation of $18,000.

General and administrative expenses were $473,000 for the three months ended September 30, 2024 as compared to $558,000 for the three months ended September 30, 2023. The decrease in general and administrative expenses of $85,000 was primarily due to decreased state franchise and capital-based taxes of $100,000.

Interest and Dividend Income. Interest and dividend income for the three months ended September 30, 2024 was $524,000 as compared to $406,000 for the three months ended September 30, 2023 as a result of higher yielding fixed income investments with longer maturities.

Realized and Unrealized Gain on Marketable Securities. For the three months ended September 30, 2024, we recorded realized and unrealized gains on marketable securities of $293,000, as compared to $131,000 for the three months ended September 30, 2023 largely due to the timing of the maturities of fixed income investments and a relatively stable interest rate environment.

Income Taxes. For the three months ended September 30, 2024, we had no current tax expense for federal, state and local income taxes and a deferred tax benefit of $71,000. For the three months ended September 30, 2023, we had a current tax benefit of $13,000 for federal, state and local income taxes and a deferred tax benefit of $31,000.

Share of Net Losses of Equity Method Investee. We recognized $308,000 of net losses during the three month period ended September 30, 2024 related to our equity share of ILiAD net losses, as compared to a recognized net loss of $532,000 for the three months ended September 30, 2023. We expect to continue to record our share of net losses from ILiAD as ILiAD is a privately held clinical stage biotechnology company.

Net Loss. As a result of the foregoing, we realized a net loss of $316,000 or $0.01 per share basic and diluted for the three months ended September 30, 2024, compared with a net loss of $810,000 or $0.03 per share basic and diluted for the three months ended September 30, 2023. Our decreased net loss for the three months ended September 30, 2024 was primarily due to increases in interest income of $118,000 and in realized and unrealized gains from investments of $162,000, along with a decrease in our equity share of ILiAD net losses of $224,000.

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023

Revenue. We had revenue of $100,000 for the nine months ended September 30, 2024 compared to revenue of $820,000 for the nine months ended September 30, 2023. All such revenue was from litigation settlements involving our Remote Power Patent (see Note I[3] and B[2] to our unaudited condensed consolidated financial statements included herein).

Operating Expenses. Operating expenses for the nine months ended September 30, 2024 were $2,538,000 as compared to $3,004,000 for the nine months ended September 30, 2023. The decrease in operating expenses of $466,000 was primarily as a result of decreases in costs of revenue of $204,000 related to litigation settlements, amortization of patents of $146,000 and general and administrative expenses of $306,000, offset by increased professional fees of $190,000.

General and administrative expenses were $1,764,000 for the nine months ended September 30, 2024 as compared to $2,070,000 for the nine months ended September 30, 2023. The decrease in general and administrative expenses of $306,000 was primarily due to decreases in payroll and payroll taxes of $188,000, exchange listing fees of $43,000, stock-based compensation of $75,000 and the timing of recording certain state franchise and capital-based taxes of $37,000.

Interest and Dividend Income. Interest and dividend income for the nine months ended September 30, 2024 was $1,407,000 as compared to $1,161,000 for the nine months ended September 30, 2023. The increase in interest and dividend income of $246,000 for the nine months ended September 30, 2024 was primarily due to higher yielding fixed income investments with long maturities.

Realized and Unrealized Gain on Marketable Securities. For the nine months ended September 30, 2024, we recorded realized and unrealized gains on marketable securities of $395,000 as compared to gains of $420,000 for the nine months ended September 30, 2023 largely due to a relatively stable interest rate environment.

Income Taxes. For the nine months ended September 30, 2024, we had no current tax expense for federal, state and local income taxes and a deferred tax benefit of $355,000. For the nine months ended September 30, 2023, we had a current tax benefit of $13,000 for federal, state and local income taxes and a deferred tax benefit of $278,000.

Share of Net Losses of Equity Method Investee. We recognized $1,613,000 of net losses during the nine month period ended September 30, 2024 related to our equity share of ILiAD net losses, as compared to a recognized net loss of $1,597,000 for the nine months ended September 30, 2023. We expect to continue to record our share of net losses from ILiAD as ILiAD is a privately held clinical stage biotechnology company.

Net Loss. As a result of the foregoing, we realized a net loss of $1,894,000 or $0.08 per share basic and diluted for the nine months ended September 30, 2024, compared with a net loss of $1,909,000 or $0.08 per share basic and diluted for the nine months ended September 30, 2023.

LIQUIDITY AND CAPITAL RESOURCES

We have financed our operations primarily from revenue from licensing our patents. At September 30, 2024, our principal sources of liquidity consisted of cash and cash equivalents and marketable securities of $41,516,000 and working capital of $41,058,000. Based on our current cash position, we believe that we will have sufficient cash to fund our operations for the next twelve months and the foreseeable future. Our patent infringement litigation or realization of our investment in ILiAD may result in a material increase in our liquidity and capital resources.

Working capital decreased by $3,792,000 at September 30, 2024 to $41,058,000 as compared to working capital of $44,850,000 at December 31, 2023. The decrease in working capital was primarily due to payment of dividends of $2,366,000 and repurchases of common stock of $1,083,000.

Net cash used in operating activities for the nine months ended September 30, 2024 decreased by $68,000 from $753,000 for the nine months ended September 30, 2023, to $685,000 for the nine months ended September 30, 2024.

Net cash provided by investing activities during the nine months ended September 30, 2024 decreased by $9,736,000 to $1,614,000 as compared to $11,350,000 for the nine months ended September 30, 2023, primarily as a result of net investment shifting materially in 2023 from marketable securities to investments in securities classified as cash and cash equivalents.

Net cash used in financing activities for the nine months ended September 30, 2024 and 2023 was $3,510,000 and $3,159,000, respectively. The change of $351,000 primarily resulted from an increase in repurchases of common stock of $378,000 in 2024.

We maintain our cash in money market funds, government securities, certificates of deposit and short-term fixed income securities. Accordingly, we do not believe that our investments have significant exposure to interest rate risk.

OFF-BALANCE SHEET ARRANGEMENTS

We do not have any off-balance sheet arrangements.

CONTRACTUAL OBLIGATIONS

We do not have any long-term debt, capital lease obligations, purchase obligations or other long-term liabilities.

CRITICAL ACCOUNTING ESTIMATES

Our unaudited condensed consolidated financial statements are prepared in accordance with GAAP. The preparation of our financial statements included in this Quarterly Report on Form 10-Q requires management to make estimates that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. To the extent that there are material differences between these estimates and actual results, our financial condition or results of operations would be affected. We base our estimates on our own historical experience and other assumptions that we believe are reasonable after taking account of our circumstances and expectations for the future based on available information. We evaluate these estimates on an ongoing basis.

We consider an accounting estimate to be critical if: (i) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made, and (ii) changes in the estimate that are reasonably likely to occur from the period to period or use of different estimates that we reasonably could have used in the current period, would have a material impact on our financial condition or results of operations. There are items within our financial statements that require estimation but are not deemed critical, as defined above.

For a detailed discussion of our significant accounting policies and related judgements, see Note B to our consolidated financial statements included herein.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not Applicable

ITEM 4.  CONTROLS AND PROCEDURES

(a)            Evaluation of Disclosure Controls and Procedures

Our Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon this review, these officers concluded that, as of the end of the period covered by this Quarterly Report on Form 10-Q, our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in applicable rules and forms and is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

(b)           Changes in Internal Controls

There was no change in our internal control over financial reporting that occurred during the fiscal quarter ended September 30, 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

For a description of our legal proceedings see Note I and Note N to our unaudited condensed consolidated financial statements included in this Quarterly Report and Item 3. Legal Proceedings of our Annual Report on Form 10-K for the year ended December 31, 2023 (filed with the SEC on March 8, 2024). During the three months ended September 30, 2024 and to date, no material events occurred with respect to our legal proceedings, except for the following: (i) with respect to our litigation against Meta(Facebook) involving certain of our Mirror Worlds patents, the oral argument on appeal to the U.S. Court of Appeals for the Federal Circuit took place on October 11. 2024 and a decision is pending (see Note I[2] to our unaudited condensed consolidated financial statements included herein), and (ii) on August 6, 2024, plaintiff Mitchell Mizel filed a putative class action against the Company and its Chairman and Chief Executive Officer in the United States District Court, Southern District of New York, alleging, among other things, that the Company is required to register as an “investment company” under the Investment Company Act of 1940. The Company strongly denied the allegations. On October 3, 2024, the litigation was settled on terms not material to the Company and the putative class action complaint was withdrawn with prejudice (see Note I[4] to our unaudited condensed consolidated financial statements included herein).

ITEM 1A. Risk Factors

Our operations and financial results are subject to various risks and uncertainties that could adversely affect our business, financial condition, results of operations and trading price of our common stock. Investors should carefully consider the risks described in this Quarterly Report on Form 10-Q for the three months ended September 30, 2024, and our Annual Report on Form 10-K for the year ended December 31, 2023 (pages 10-19), filed with the SEC on March 8, 2024.

ITEM 2.  Unregistered Sales of Equity Securities and Use of Proceeds

Recent Issuances of Unregistered Securities

There were no such issuances during the three months ended September 30, 2024.

Stock Repurchases

On June 13, 2023, our Board of Directors authorized an extension and increase of the Share Repurchase Program to repurchase up to $5,000,000 of shares of our common stock over the subsequent 24 month period. The common stock may be repurchased from time to time in open market transactions or privately negotiated transactions at our discretion. The timing and amount of the shares repurchased is determined by management based on its evaluation of market conditions and other factors. The Share Repurchase Program may be increased, suspended or discontinued at any time. Since inception of the Share Repurchase Program in August 2011 through September 30, 2024, we have repurchased an aggregate of 10,217,856 shares of our common stock at an aggregate cost of $19,772,820 (exclusive of commissions and excise taxes) or an average per share price of $1.94. During the three months ended September 30, 2024, we repurchased an aggregate of 119,615 shares of our common stock at an aggregate cost of $189,424 (exclusive of commissions and excise taxes) or an average per share price of $1.58. During the nine months ended September 30, 2024, we repurchased an aggregate of 577,060 shares of our common stock at an aggregate cost of $1,059,904 (exclusive of commissions and excise taxes) or an average per share price of $1.84. At September 30, 2024, the remaining dollar value of shares that may be repurchased under the Share Repurchase Program was $3,312,801.

During the months of July, August and September 2024, we purchased common stock pursuant to our Share Repurchase Program as indicated below:

Period	Total Number of Shares Purchased	Average Price Paid Per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
July 1 to July 31, 2024	47,228	$1.59	47,228	$3,427,067
August 1 to August 31, 2024	59,573	$1.59	59,573	$3,332,105
September 1 to September 30, 2024	12,814	$1.51	12,814	$3,312,801
Total	119,615	$1.58	119,615

ITEM 3. Defaults Upon Senior Securities

None

ITEM 5. OTHER INFORMATION

None

ITEM 6.  Exhibits

(a)   Exhibits

31.1

Controls and Procedure Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*

31.2

Controls and Procedure Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*

32.1

Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*

32.2

Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*

101

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XBRL Scheme Document

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_____________________________

* Filed herewith

** Furnished herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	NETWORK-1 TECHNOLOGIES, INC.

Date:      October 24, 2024	By:	/s/ Corey M. Horowitz
		Corey M. Horowitz Chairman and Chief Executive Officer (Principal Executive Officer)

Date:      October 24, 2024

By:

/s/ Robert Mahan

Robert Mahan
Chief Financial Officer

(Principal Financial Officer)

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C.ss.1350)

I, Corey M. Horowitz, Chairman and Chief Executive Officer of Network-1 Technologies, Inc. (the “Registrant”), certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarterly period ended September 30, 2024 of the Registrant;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (that Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: October 24, 2024

/s/ Corey M. Horowitz

Corey M. Horowitz
Chairman and Chief Executive Officer

(Principal Executive Officer)

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C.ss.1350)

I, Robert Mahan, Chief Financial Officer of Network-1 Technologies, Inc. (the “Registrant”), certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarterly period ended September 30, 2024 of the Registrant;

(d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.


Date: October 24, 2024		/s/ Robert Mahan
		Robert Mahan Chief Financial Officer (Principal Financial Officer)

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. ss. 1350)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. ss. 1350), the undersigned, Corey M. Horowitz, Chief Executive Officer and Chairman of Network-1 Technologies, Inc., a Delaware corporation (the “Company”), does hereby certify to his knowledge, that:

The Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 of the Company (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Act of 1934, and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Corey M. Horowitz

Chairman and Chief Executive Officer

(Principal Executive Officer)

October 24, 2024

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. ss. 1350)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. ss. 1350), the undersigned, Robert Mahan, Chief Financial Officer of Network-1 Technologies, Inc., a Delaware corporation (the “Company”), does hereby certify to his knowledge, that:

/s/ Robert Mahan

Chief Financial Officer
(Principal Financial Officer)

October 24, 2024

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2024	Oct. 21, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	1-15288
Entity Registrant Name	NETWORK-1 TECHNOLOGIES, INC.
Entity Central Index Key	0001065078
Entity Tax Identification Number	11-3027591
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	65 Locust Avenue
Entity Address, Address Line Two	Third Floor
Entity Address, City or Town	New Canaan
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06840
City Area Code	203
Local Phone Number	920-1055
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	NTIP
Security Exchange Name	NYSEAMER
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		23,036,537

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
ASSETS CURRENT ASSETS:
Cash and cash equivalents	$ 14,315,000	$ 16,896,000
Marketable securities, at fair value	27,201,000	28,571,000
Other current assets	141,000	206,000
TOTAL CURRENT ASSETS	41,657,000	45,673,000
OTHER ASSETS:
Patents, net of accumulated amortization	1,236,000	1,326,000
Equity investment	3,636,000	5,249,000
Operating leases right-of-use asset	43,000	16,000
Security deposit	13,000	13,000
Total Other Assets	4,928,000	6,604,000
TOTAL ASSETS	46,585,000	52,277,000
LIABILITIES AND STOCKHOLDERS’ EQUITY: CURRENT LIABILITIES:
Accounts payable	371,000	125,000
Accrued payroll	6,000	378,000
Other accrued expenses	182,000	297,000
Operating lease obligation, current	40,000	23,000
Total Current Liabilities	599,000	823,000
LONG TERM LIABILITIES:
Deferred tax liability	407,000	762,000
TOTAL LIABILITIES	1,006,000	1,585,000
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value, authorized 10,000,000 shares; none issued and outstanding at September 30, 2024 and December 31, 2023
Common stock, $0.01 par value; authorized 50,000,000 shares; 23,110,495 and 23,553,908 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively	231,000	235,000
Additional paid-in capital	67,757,000	67,446,000
Accumulated deficit	(22,409,000)	(16,989,000)
TOTAL STOCKHOLDERS’ EQUITY	45,579,000	50,692,000
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 46,585,000	$ 52,277,000

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	50,000,000	50,000,000
Common Stock, Shares, Issued	23,110,495	23,553,908
Common Stock, Shares, Outstanding	23,110,495	23,553,908

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
REVENUE			$ 100,000	$ 820,000
OPERATING EXPENSES:
Costs of revenue			28,000	232,000
Professional fees and related costs	290,000	109,000	656,000	466,000
General and administrative	576,000	679,000	1,764,000	2,070,000
Amortization of patents	30,000	71,000	90,000	236,000
TOTAL OPERATING EXPENSES	896,000	859,000	2,538,000	3,004,000
OPERATING LOSS	(896,000)	(859,000)	(2,438,000)	(2,184,000)
OTHER INCOME:
Interest and dividend income, net	524,000	406,000	1,407,000	1,161,000
Net realized and unrealized gain on marketable securities	293,000	131,000	395,000	420,000
Total other income, net	817,000	537,000	1,802,000	1,581,000
LOSS BEFORE INCOME TAXES AND SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE	(79,000)	(322,000)	(636,000)	(603,000)
INCOME TAXES PROVISION:
Current		(13,000)		(13,000)
Deferred taxes, net	(71,000)	(31,000)	(355,000)	(278,000)
Total income tax benefit	(71,000)	(44,000)	(355,000)	(229,000)
LOSS BEFORE SHARE OF NET LOSS OF EQUITY METHOD INVESTEE:	(8,000)	(278,000)	(281,000)	(312,000)
SHARE OF NET LOSS OF EQUITY METHOD INVESTEE	(308,000)	(532,000)	(1,613,000)	(1,597,000)
NET LOSS	$ (316,000)	$ (810,000)	$ (1,894,000)	$ (1,909,000)
Net loss per share
Basic	$ (0.01)	$ (0.03)	$ (0.08)	$ (0.08)
Diluted	$ (0.01)	$ (0.03)	$ (0.08)	$ (0.08)
Weighted average common shares outstanding:
Basic	23,126,480	23,803,567	23,337,716	23,867,204
Diluted	23,126,480	23,803,567	23,337,716	23,867,204
Cash dividends declared per share	$ 0.05	$ 0.05	$ 0.10	$ 0.10
NET LOSS	$ (316,000)	$ (810,000)	$ (1,894,000)	$ (1,909,000)
OTHER COMPREHENSIVE LOSS
Net unrealized holding gain on corporate bonds and notes during the period, net of tax		14,000		14,000
COMPREHENSIVE LOSS	$ (316,000)	$ (796,000)	$ (1,894,000)	$ (1,895,000)

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Begining Balance at Dec. 31, 2022	$ 239,000	$ 66,939,000	$ (12,055,000)	$ (14,000)	$ 55,109,000
Begining Balance, Shares at Dec. 31, 2022	23,863,639
Dividends and dividend equivalents declared			(1,196,000)		(1,196,000)
Stock-based compensation		161,000			161,000
Vesting of restricted stock units	$ 1,000	(1,000)
Vesting of restricted stock units Shares	123,750
Value of shares delivered to pay withholding taxes			(83,000)		(83,000)
Value of shares delivered to pay withholding taxes shares	(39,099)
Treasury stock purchased and retired	$ (1,000)		(305,000)		(306,000)
Treasury stock purchased and retired shares	(136,785)
Net loss			(623,000)		(623,000)
Ending Balance at Mar. 31, 2023	$ 239,000	67,099,000	(14,262,000)	(14,000)	53,062,000
Ending Balance, Shares at Mar. 31, 2023	23,811,505
Stock-based compensation		106,000			106,000
Vesting of restricted stock units
Vesting of restricted stock units Shares	11,250
Treasury stock purchased and retired	$ (1,000)		(25,000)		(26,000)
Treasury stock purchased and retired shares	(11,495)
Net loss			(476,000)		(476,000)
Ending Balance at Jun. 30, 2023	$ 238,000	67,205,000	(14,763,000)	(14,000)	52,666,000
Ending Balance, Shares at Jun. 30, 2023	23,811,260
Dividends and dividend equivalents declared			(1,194,000)		(1,194,000)
Stock-based compensation		121,000			121,000
Vesting of restricted stock units
Vesting of restricted stock units Shares	11,250
Treasury stock purchased and retired	$ (2,000)		(371,000)		(373,000)
Treasury stock purchased and retired shares	(163,038)
Realized gain on corporate bond				14,000	14,000
Net loss			(810,000)		(810,000)
Ending Balance at Sep. 30, 2023	$ 236,000	67,326,000	(17,138,000)		50,424,000
Ending Balance, Shares at Sep. 30, 2023	23,659,472
Begining Balance at Dec. 31, 2023	$ 235,000	67,446,000	(16,989,000)		50,692,000
Begining Balance, Shares at Dec. 31, 2023	23,553,908
Dividends and dividend equivalents declared			(1,207,000)		(1,207,000)
Stock-based compensation		115,000			115,000
Vesting of restricted stock units	$ 1,000	(1,000)
Vesting of restricted stock units Shares	111,250
Value of shares delivered to pay withholding taxes			(61,000)		(61,000)
Value of shares delivered to pay withholding taxes shares	(28,853)
Treasury stock purchased and retired	$ (1,000)		(185,000)		(186,000)
Treasury stock purchased and retired shares	(83,744)
Net loss			(920,000)		(920,000)
Ending Balance at Mar. 31, 2024	$ 235,000	67,560,000	(19,362,000)		48,433,000
Ending Balance, Shares at Mar. 31, 2024	23,552,561
Stock-based compensation		95,000			95,000
Vesting of restricted stock units	$ 1,000	(1,000)
Vesting of restricted stock units Shares	11,250
Treasury stock purchased and retired	$ (4,000)		(693,000)		(697,000)
Treasury stock purchased and retired shares	(373,701)
Net loss			(658,000)		(658,000)
Ending Balance at Jun. 30, 2024	$ 232,000	67,654,000	(20,713,000)		47,173,000
Ending Balance, Shares at Jun. 30, 2024	23,190,110
Dividends and dividend equivalents declared			(1,181,000)		(1,181,000)
Stock-based compensation		103,000			103,000
Vesting of restricted stock units
Vesting of restricted stock units Shares	40,000
Treasury stock purchased and retired	$ (1,000)		(199,000)		(200,000)
Treasury stock purchased and retired shares	(119,615)
Net loss			(316,000)		(316,000)
Ending Balance at Sep. 30, 2024	$ 231,000	$ 67,757,000	$ (22,409,000)		$ 45,579,000
Ending Balance, Shares at Sep. 30, 2024	23,110,495

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,894,000)	$ (1,909,000)
Adjustments to reconcile net loss to net cash used in operating activities
Amortization of patents	90,000	236,000
Stock-based compensation	313,000	388,000
Loss allocated from equity method investment	1,613,000	1,597,000
Unrealized gain on marketable securities	(244,000)	(27,000)
Deferred tax (benefit) expense	(355,000)	(278,000)
Amortization of operating leases – right of use assets	48,000	47,000
Changes in operating assets and liabilities:
Other current assets	65,000	307,000
Prepaid taxes		(131,000)
Security deposit		(13,000)
Accounts payable	246,000	(257,000)
Income taxes payable		(89,000)
Operating lease obligations	(58,000)	(52,000)
Accrued expenses	(509,000)	(572,000)
NET CASH USED IN OPERATING ACTIVITIES	(685,000)	(753,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of marketable securities	13,582,000	44,488,000
Purchases of marketable securities	(11,968,000)	(33,138,000)
NET CASH PROVIDED BY INVESTING ACTIVITIES	1,614,000	11,350,000
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash dividends paid	(2,366,000)	(2,371,000)
Value of shares delivered to fund payment of withholding taxes	(61,000)	(83,000)
Repurchases of common stock, inclusive of commissions and excise tax	(1,083,000)	(705,000)
NET CASH USED IN FINANCING ACTIVITIES:	(3,510,000)	(3,159,000)
NET INCREASE IN CASH AND CASH EQUIVALENTS	(2,581,000)	7,438,000
CASH AND CASH EQUIVALENTS, beginning of period	16,896,000	13,448,000
CASH AND CASH EQUIVALENTS, end of period	14,315,000	20,886,000
Cash paid during the period for:
Interest
Income taxes		67,000
NON-CASH FINANCING ACTIVITIES
Accrued dividend rights on restricted stock units	59,000	22,000
Right of use asset for lease liability	$ 75,000	$ 98,000

BASIS OF PRESENTATION AND NATURE OF BUSINESS

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION AND NATURE OF BUSINESS

NOTE A – BASIS OF PRESENTATION AND NATURE OF BUSINESS

[1] BASIS OF PRESENTATION

[2] BUSINESS

The Company has also made equity investments totaling $7,000,000 in ILiAD Biotechnologies, LLC (“ILiAD”), a clinical stage biotechnology company (see Note J hereof).

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

[1]

Use of Estimates and Assumptions

[2]

Revenue Recognition

The Company determines revenue recognition through the following steps:

•

identification of the license agreement, the final judgment or the litigation settlement agreement;

•

identification of the performance obligations in the license agreement, the final judgment or the litigation settlement agreement;

•

determination of the consideration for the license, final judgment or settlement;

•

allocation of the transaction price to the performance obligations in the contract; and

•

recognition of revenue when the Company satisfies its performance obligations.

Revenue disaggregated by source is as follows:

Schedule of revenue disaggregated
	Nine Months Ended September 30,				Three Months Ended September 30,
	2024		2023		2024		2023

Litigation settlements	$	100,000	$	820,000	$	—	$	—
Total Revenue	$	100,000	$	820,000	$	—	$	—

During the three months ended September 30, 2024 and 2023, the Company had no revenue.

[3]

Equity Method Investments

[4]

Income Taxes

The Company recognizes interest and penalties, if any, related to income tax in the income tax provision in the unaudited condensed consolidated statements of operations and comprehensive loss.

[5]

New Accounting Standards

Segments

Income Tax Disclosure

PATENTS

9 Months Ended

Sep. 30, 2024

Patents

PATENTS

NOTE C – PATENTS


	September 30, 2024			December 31, 2023

Gross carrying amount – patents	$	8,473,000		$	8,473,000
Accumulated amortization – patents		(7,237,000	)		(7,147,000	)
Patents, net	$	1,236,000		$	1,326,000


For the Years Ended December 31,
2024 – remaining	$	30,000
2025		120,000
2026		120,000
2027		119,000
2028		116,000
Thereafter		731,000
Total	$	1,236,000

STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

STOCK-BASED COMPENSATION

NOTE D – STOCK-BASED COMPENSATION

Restricted Stock Units


	Number of Shares			Weighted-Average Grant Date Fair Value

Balance of restricted stock units outstanding at December 31, 2023		587,500		$	1.81
Grants of restricted stock units		70,000			2.17
Vested restricted stock units		(162,500	)		(2.38	)
Balance of restricted stock units outstanding at September 30, 2024		495,000		$	1.67

The Company had an aggregate of $347,000 of unrecognized restricted stock unit compensation as of September 30, 2024 to be expensed over a weighted average period of 1.31 years.

LOSS PER SHARE

9 Months Ended

Sep. 30, 2024

Net loss per share

LOSS PER SHARE

NOTE E – LOSS PER SHARE

Computations of basic and diluted weighted average common shares outstanding were as follows:


	Nine Months Ended September 30,				Three Months Ended September 30,
	2024		2023		2024		2023
Weighted-average common shares outstanding – basic		23,337,716		23,867,204		23,126,480		23,803,567
Dilutive effect of restricted stock units and stock options		—		—		—		—
Weighted-average common shares outstanding – diluted		23,337,716		23,867,204		23,126,480		23,803,567
Restricted stock units excluded from the computation of diluted loss per share because the effect of inclusion would have been anti-dilutive		495,000		598,750		495,000		598,750

MARKETABLE SECURITIES

9 Months Ended

Sep. 30, 2024

Marketable Securities

MARKETABLE SECURITIES

NOTE F – MARKETABLE SECURITIES

Marketable securities as of September 30, 2024 and December 31, 2023 were composed of the following:

Schedule of marketable securities
	September 30, 2024
	Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value

Certificates of deposit	$	755,000	$	13,000	$	—		$	768,000
Government securities		16,919,000		158,000		(8,000	)		17,069,000
Fixed income mutual funds		8,608,000		251,000		—			8,859,000
Corporate bonds and notes		502,000		3,000		—			505,000
Total marketable securities	$	26,784,000	$	425,000	$	(8,000	)	$	27,201,000

	December 31, 2023
	Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value

Certificates of deposit	$	6,112,000	$	—	$	(35,000	)	$	6,077,000
Government securities		14,701,000		127,000		(10,000	)		14,818,000
Fixed income mutual funds		7,585,000		91,000		—			7,676,000
Total marketable securities	$	28,398,000	$	218,000	$	(45,000	)	$	28,571,000

The Company’s marketable securities are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in an active market.

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2024

COMMITMENTS AND CONTINGENCIES (Note G)

COMMITMENTS AND CONTINGENCIES

NOTE G – COMMITMENTS AND CONTINGENCIES

[1] Legal Fees

[2] Patent Acquisitions

[3] Leases

The remaining lease term as of September 30, 2024 is seven (7) months.

Right of use lease assets and related lease obligations for the Company’s operating leases were recorded in the unaudited condensed consolidated balance sheets as follows:


	As of September 30, 2024		As of December 31, 2023

Operating lease right-of-use assets	$	43,000	$	16,000

Operating lease obligations – current	$	40,000	$	23,000

The table below presents certain information related to the Company’s lease costs for the period ended:

Schedule of lease costs
	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2024		2023		2024		2023

Operating lease cost	$	18,000	$	20,000	$	45,000	$	59,000

Future lease payments included in the measurement of lease liabilities on the unaudited condensed consolidated balance sheet as of September 30, 2024, were as follows:


	Operating Leases

2024 – remaining period	$	18,000
2025		24,000
Total future minimum lease payments		42,000
Less imputed interest		(2,000	)
Total operating lease liability	$	40,000

EMPLOYMENT ARRANGEMENTS AND OTHER AGREEMENTS

9 Months Ended

Sep. 30, 2024

Employment Arrangements And Other Agreements

EMPLOYMENT ARRANGEMENTS AND OTHER AGREEMENTS

NOTE–H - EMPLOYMENT ARRANGEMENTS AND OTHER AGREEMENTS

LEGAL PROCEEDINGS

9 Months Ended

Sep. 30, 2024

COMMITMENTS AND CONTINGENCIES (Note G)

LEGAL PROCEEDINGS

NOTE I – LEGAL PROCEEDINGS

The Company has entered into settlement agreements for an aggregate of $2,701,000 with all of the defendants in the above referenced litigations except Ubiquiti Inc. which litigation remains pending.

INVESTMENT

9 Months Ended

Sep. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENT

NOTE J – INVESTMENT


	Nine Months Ended June 30,						Three Months Ended June 30,
	2024			2023			2024			2023

Loss from continuing operations	$	(25,013,000	)	$	(17,929,000	)	$	(4,940,000	)	$	(8,232,000	)
Comprehensive loss	$	(24,409,000	)	$	(23,525,000	)	$	(4,754,000	)	$	(7,842,000	)

STOCK REPURCHASES

9 Months Ended

Sep. 30, 2024

Other Liabilities Disclosure [Abstract]

STOCK REPURCHASES

NOTE K – STOCK REPURCHASES

At September 30, 2024, the dollar value of remaining shares that may be repurchased under the Share Repurchase Program was $3,312,801.

CONCENTRATIONS

9 Months Ended

Sep. 30, 2024

Risks and Uncertainties [Abstract]

CONCENTRATIONS

NOTE L – CONCENTRATIONS

DIVIDEND POLICY

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

DIVIDEND POLICY

NOTE M – DIVIDEND POLICY

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Use of Estimates and Assumptions

[1]

Use of Estimates and Assumptions

Revenue Recognition

[2]

Revenue Recognition

The Company determines revenue recognition through the following steps:

•

identification of the license agreement, the final judgment or the litigation settlement agreement;

•

identification of the performance obligations in the license agreement, the final judgment or the litigation settlement agreement;

•

determination of the consideration for the license, final judgment or settlement;

•

allocation of the transaction price to the performance obligations in the contract; and

•

recognition of revenue when the Company satisfies its performance obligations.

Revenue disaggregated by source is as follows:

Schedule of revenue disaggregated
	Nine Months Ended September 30,				Three Months Ended September 30,
	2024		2023		2024		2023

Litigation settlements	$	100,000	$	820,000	$	—	$	—
Total Revenue	$	100,000	$	820,000	$	—	$	—

During the three months ended September 30, 2024 and 2023, the Company had no revenue.

Equity Method Investments

[3]

Equity Method Investments

Income Taxes

[4]

Income Taxes

The Company recognizes interest and penalties, if any, related to income tax in the income tax provision in the unaudited condensed consolidated statements of operations and comprehensive loss.

New Accounting Standards

[5]

New Accounting Standards

Segments

Income Tax Disclosure

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Schedule of revenue disaggregated

Schedule of revenue disaggregated
	Nine Months Ended September 30,				Three Months Ended September 30,
	2024		2023		2024		2023

Litigation settlements	$	100,000	$	820,000	$	—	$	—
Total Revenue	$	100,000	$	820,000	$	—	$	—

PATENTS (Tables)

9 Months Ended

Sep. 30, 2024

Patents

Schedule of gross carrying amounts and accumulated amortization related to acquired intangible assets


	September 30, 2024			December 31, 2023

Gross carrying amount – patents	$	8,473,000		$	8,473,000
Accumulated amortization – patents		(7,237,000	)		(7,147,000	)
Patents, net	$	1,236,000		$	1,326,000

Schedule of future amortization of intangible assets


For the Years Ended December 31,
2024 – remaining	$	30,000
2025		120,000
2026		120,000
2027		119,000
2028		116,000
Thereafter		731,000
Total	$	1,236,000

STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

Schedule of restricted stock unit activity


	Number of Shares			Weighted-Average Grant Date Fair Value

Balance of restricted stock units outstanding at December 31, 2023		587,500		$	1.81
Grants of restricted stock units		70,000			2.17
Vested restricted stock units		(162,500	)		(2.38	)
Balance of restricted stock units outstanding at September 30, 2024		495,000		$	1.67

LOSS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2024

Net loss per share

Schedule of basic and diluted weighted average common shares outstanding


	Nine Months Ended September 30,				Three Months Ended September 30,
	2024		2023		2024		2023
Weighted-average common shares outstanding – basic		23,337,716		23,867,204		23,126,480		23,803,567
Dilutive effect of restricted stock units and stock options		—		—		—		—
Weighted-average common shares outstanding – diluted		23,337,716		23,867,204		23,126,480		23,803,567
Restricted stock units excluded from the computation of diluted loss per share because the effect of inclusion would have been anti-dilutive		495,000		598,750		495,000		598,750

MARKETABLE SECURITIES (Tables)

9 Months Ended

Sep. 30, 2024

Marketable Securities

Schedule of marketable securities

Schedule of marketable securities
	September 30, 2024
	Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value

Certificates of deposit	$	755,000	$	13,000	$	—		$	768,000
Government securities		16,919,000		158,000		(8,000	)		17,069,000
Fixed income mutual funds		8,608,000		251,000		—			8,859,000
Corporate bonds and notes		502,000		3,000		—			505,000
Total marketable securities	$	26,784,000	$	425,000	$	(8,000	)	$	27,201,000

	December 31, 2023
	Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value

Certificates of deposit	$	6,112,000	$	—	$	(35,000	)	$	6,077,000
Government securities		14,701,000		127,000		(10,000	)		14,818,000
Fixed income mutual funds		7,585,000		91,000		—			7,676,000
Total marketable securities	$	28,398,000	$	218,000	$	(45,000	)	$	28,571,000

COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Sep. 30, 2024

COMMITMENTS AND CONTINGENCIES (Note G)

Schedule of right of use lease assets and related lease obligations


	As of September 30, 2024		As of December 31, 2023

Operating lease right-of-use assets	$	43,000	$	16,000

Operating lease obligations – current	$	40,000	$	23,000

Schedule of lease costs

Schedule of lease costs
	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2024		2023		2024		2023

Operating lease cost	$	18,000	$	20,000	$	45,000	$	59,000

Schedule of future lease payments included in the measurement of lease liabilities


	Operating Leases

2024 – remaining period	$	18,000
2025		24,000
Total future minimum lease payments		42,000
Less imputed interest		(2,000	)
Total operating lease liability	$	40,000

INVESTMENT (Tables)

9 Months Ended

Sep. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

Schedule of financial information for ILiAD


	Nine Months Ended June 30,						Three Months Ended June 30,
	2024			2023			2024			2023

Loss from continuing operations	$	(25,013,000	)	$	(17,929,000	)	$	(4,940,000	)	$	(8,232,000	)
Comprehensive loss	$	(24,409,000	)	$	(23,525,000	)	$	(4,754,000	)	$	(7,842,000	)

BASIS OF PRESENTATION AND NATURE OF BUSINESS (Details Narrative)	9 Months Ended
	Sep. 30, 2024 USD ($) Integer
U.S. Patents owned by the company	104
Expired patents	54
Foreign patents owned by the company	16
ILiAD Biotechnologies, LLC [Member]
Aggregate investment amount \| $	$ 7,000,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Product Information [Line Items]
Total Revenue			$ 100,000	$ 820,000
Litigation Settlements [Member]
Product Information [Line Items]
Total Revenue			$ 100,000	$ 820,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Accounting Policies [Abstract]
Litigation settlement amount	$ 0	$ 0
Deferred tax assets	1,367,000
Valuation allowance	1,367,000
Deferred tax liability	$ 407,000

PATENTS (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Patents
Gross carrying amount – patents	$ 8,473,000	$ 8,473,000
Accumulated amortization – patents	(7,237,000)	(7,147,000)
Patents, net	$ 1,236,000	$ 1,326,000

PATENTS (Details 1)	Sep. 30, 2024 USD ($)
Patents
2024 - remaining	$ 30,000
2025	120,000
2026	120,000
2027	119,000
2028	116,000
Thereafter	731,000
Total	$ 1,236,000

PATENTS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
PATENTS (Details Narrative) - USD ($)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Amortization expense	$ 30,000	$ 71,000	$ 90,000	$ 236,000
Minimum [Member]
Estimated remaining economic useful of patents	9 years		9 years
Expiration dates of the patents within the Company's M2M/IoT Patent Portfolio			September 2033
Expiration dates within companys HFT patent portfolio			October 2039
Maximum [Member]
Estimated remaining economic useful of patents	15 years		15 years
Expiration dates of the patents within the Company's M2M/IoT Patent Portfolio			May 2034
Expiration dates within companys HFT patent portfolio			February 2040

STOCK-BASED COMPENSATION (Details)	9 Months Ended
STOCK-BASED COMPENSATION (Details)	Sep. 30, 2024 $ / shares shares
Equity [Abstract]
Restricted stock, Outstanding Number of shares, Beginning Balance \| shares	587,500
Restricted stock, Weighted Average Grant Date Fair Value, Beginning Balance \| $ / shares	$ 1.81
Grants of restricted stock units \| shares	70,000
Grants of restricted stock units, Weighted Average Grant Date Fair Value \| $ / shares	$ 2.17
Vested restricted stock units \| shares	(162,500)
Vested restricted stock units, Weighted Average Grant Date Fair Value \| $ / shares	$ (2.38)
Restricted stock, Outstanding Number of shares, Ending Balance \| shares	495,000
Restricted stock, Weighted Average Grant Date Fair Value, Ending Balance \| $ / shares	$ 1.67

STOCK-BASED COMPENSATION (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
STOCK-BASED COMPENSATION (Details Narrative) - USD ($)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Dividend equivalent rights	$ 0		$ 37,000
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Restricted stock unit compensation expense	103,000	$ 121,000	313,000	$ 388,000
Unrecognized restricted stock unit compensation expense	347,000		$ 347,000
Weighted average amortized period			1 year 3 months 21 days
Accrued dividend rights on restricted stock unit	$ 121,000		$ 121,000		$ 99,000
Stock Incentive Plan 2022 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock subject to outstanding awards under 2022 plan	70,000		70,000
Common stock available for issuance under 2022 Plan	2,110,000		2,110,000
Common stock subject to outstanding awards under 2013 plan	425,000		425,000

LOSS PER SHARE (Details) - shares	3 Months Ended		9 Months Ended
LOSS PER SHARE (Details) - shares	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Net loss per share
Weighted-average common shares outstanding – basic	23,126,480	23,803,567	23,337,716	23,867,204
Dilutive effect of restricted stock units and stock options
Weighted-average common shares outstanding – diluted	23,126,480	23,803,567	23,337,716	23,867,204
Restricted stock units excluded from the computation of diluted loss per share because the effect of inclusion would have been anti-dilutive	495,000	598,750	495,000	598,750

LOSS PER SHARE (Details Narrative) - shares	9 Months Ended
LOSS PER SHARE (Details Narrative) - shares	Sep. 30, 2024	Sep. 30, 2023
Net loss per share
Potentially Dilutive Shares	495,000	598,750

MARKETABLE SECURITIES (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Fair Value [Member]
Schedule of Investments [Line Items]
Certificates of deposit	$ 768,000	$ 6,077,000
Government securities	17,069,000	14,818,000
Fixed income mutual funds	8,859,000	7,676,000
Corporate bonds and notes	505,000
Total marketable securities	27,201,000	28,571,000
Cost Basis [Member]
Schedule of Investments [Line Items]
Certificates of deposit	755,000	6,112,000
Government securities	16,919,000	14,701,000
Fixed income mutual funds	8,608,000	7,585,000
Corporate bonds and notes	502,000
Total marketable securities	26,784,000	28,398,000
Gross Unrealized Gains [Member]
Schedule of Investments [Line Items]
Certificates of deposit	13,000
Government securities	158,000	127,000
Fixed income mutual funds	251,000	91,000
Corporate bonds and notes	3,000
Total marketable securities	425,000	218,000
Gross Unrealized Losses [Member]
Schedule of Investments [Line Items]
Certificates of deposit		(35,000)
Government securities	(8,000)	(10,000)
Fixed income mutual funds
Corporate bonds and notes
Total marketable securities	$ (8,000)	$ (45,000)

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
COMMITMENTS AND CONTINGENCIES (Note G)
Operating lease right-of-use assets	$ 43,000	$ 16,000
Operating lease obligations – current	$ 40,000	$ 23,000

COMMITMENTS AND CONTINGENCIES (Details 1) - USD ($)	3 Months Ended		9 Months Ended
COMMITMENTS AND CONTINGENCIES (Details 1) - USD ($)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
COMMITMENTS AND CONTINGENCIES (Note G)
Operating lease cost	$ 18,000	$ 20,000	$ 45,000	$ 59,000

COMMITMENTS AND CONTINGENCIES (Details 2)	Sep. 30, 2024 USD ($)
COMMITMENTS AND CONTINGENCIES (Note G)
2024 – remaining period	$ 18,000
2025	24,000
Total future minimum lease payments	42,000
Less imputed interest	(2,000)
Total operating lease liability	$ 40,000

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	1 Months Ended	9 Months Ended	104 Months Ended
	Mar. 25, 2022	Sep. 30, 2024	Dec. 31, 2021	May 01, 2022
COMMITMENTS AND CONTINGENCIES (Note G)
Contingency fee minimum - Meta litigation		15.00%
Contingency fee maximum - Meta litigation		24.00%
Legal fees on a full contingency minimum - Google litigation		15.00%
Legal fees on a full contingency maximum - Google litigation		30.00%
Legal fees on a contingency basis minimum - Remote power patent		15.00%
Legal fees on a contingency basis maximum - Remote power patent		40.00%
HFT patent acqusition - cash at closing	$ 500,000
Contingent cash payable upon achieving certain milestones	500,000
Contingent common stock issued upon achieving certain milestones - dollar value	$ 375,000
Contingent common stock issued upon achieving certain milestones - maximum shares	375,000
First $50 million of HFT net proceeds	15.00%
Greater than $50 million of HFT net proceeds	17.50%
Obligation to pay Recognition, net proceeds
Obligated to pay Cox, net proceeds percentage		12.50%
First $125 Million		10.00%
Next $125 Million		15.00%
Over $250 Million		20.00%
Recognition net proceeds payment related to Mirror Worlds patents			$ 3,127,000
Obligated to pay M2M
First $100 Million		14.00%
Next $100 Million		5.00%
Additional consideration payable upon occurrence of certain future events		$ 250,000
Base rent		$ 5,500
Lease borrowing rate - incremental				4.20%
Remaining lease term				3 years

EMPLOYMENT ARRANGEMENTS AND OTHER AGREEMENTS (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Mar. 22, 2022	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
CEO incentive compensation - remote power patent, gross royalties	5.00%
CEO incentive compensation - other patents, gross royalties	6.25%
CEO incentive compensation - remote power patent		$ 0	$ 0	$ 5,000	$ 41,000
Chief Executive Officer [Member]
CEO incentive compensation, other patents, net interest	10.00%
Chief Executive Officer [Member] \| New Employment Agreement [Member]
Annual base salary	$ 535,000
Annual base salary increase	3.00%
Annual target bonus	$ 175,000

LEGAL PROCEEDINGS (Details Narrative) - USD ($)		2 Months Ended	3 Months Ended		8 Months Ended	9 Months Ended		24 Months Ended
LEGAL PROCEEDINGS (Details Narrative) - USD ($)	May 09, 2017	Nov. 30, 2022	Sep. 30, 2024	Sep. 30, 2023	Dec. 03, 2014	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024
Litigation settlement amount								$ 2,701,000
Revenues						$ 100,000	$ 820,000
Conditional settlement payment unrecognized						$ 150,000
Google [Member]
Litigation pending, description					the Company initiated litigation against Google Inc. (“Google”) and YouTube, LLC (“YouTube”) in the U.S. District Court for the Southern District of New York for infringement of several of its patents within its Cox Patent Portfolio acquired from Dr. Cox which relate to the identification of media content on the Internet. The lawsuit alleges that Google and YouTube have infringed and continue to infringe certain of the Company’s patents by making, using, selling and offering to sell unlicensed systems and related products and services, which include YouTube’s Content ID system. The litigations against Google and YouTube were subject to court ordered stays which were in effect from July 2, 2015 until January 2, 2019 as a result of proceedings at the Patent Trial and Appeal Board (PTAB) and the appeals of PTAB Final Written Decisions to the U.S. Court of Appeals for the Federal Circuit. Pursuant to a Joint Stipulation and Order Regarding Lifting of Stays, entered on January 2, 2019, the parties agreed, among other things, that the stays with respect to the litigations were lifted. In January 2019, the two litigations against Google and YouTube were consolidated. Discovery has been completed and the parties have each submitted summary judgment motions.
Facebook [Member]
Litigation pending, description	the Company’s wholly-owned subsidiary, initiated litigation against Facebook, Inc. (now Meta Platforms, Inc., “Meta”) in the U.S. District Court for the Southern District of New York, for infringement of U.S. Patent No. 6,006,227, U.S. Patent No. 7,865,538 and U.S. Patent No. 8,255,439 (among the patents within the Company’s Mirror Worlds Patent Portfolio). The lawsuit alleged that the asserted patents are infringed by Meta’s core technologies that enable Meta’s Newsfeed and Timeline features.
Remote Power Patent [Member]
Litigation pending, description		the Company initiated nine separate litigation against ten defendants for infringement of its Remote Power Patent seeking monetary damages based upon reasonable royalties, as follows: (i) On October 6, 2022, the Company initiated such litigation against Arista Networks, Inc., Fortinet, Inc., Honeywell International Inc. and Ubiquiti Inc. in the United States District Court, District of Delaware; (ii) On October 27, 2022, and November 3, 2022, the Company initiated such litigation against TP-Link USA Corporation and Hikvision USA, Inc. in the United States District Court for the Central District of California; (iii) On November 4, 2022, the Company initiated such litigation against Panasonic Holdings Corporation and Panasonic Corporation of North America in the United States District Court for the Eastern District of Texas (Marshall Division); and (iv) On November 8, 2022 and November 16, 2022, the Company initiated such litigation against Antaira Technologies, LLC and Dahua Technology USA in the United States District Court for the Central District of California.

INVESTMENT (Details) - USD ($)	3 Months Ended		6 Months Ended
INVESTMENT (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]
ILiAD Loss from continuing operations	$ (4,940,000)	$ (8,232,000)	$ (25,013,000)	$ (17,929,000)
ILiAD Comprehensive loss	$ (4,754,000)	$ (7,842,000)	$ (24,409,000)	$ (23,525,000)

INVESTMENT (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
INVESTMENT (Details Narrative) - USD ($)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
ILiAD Biotechnologies, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Aggregrate investment	$ 7,000,000		$ 7,000,000
Book value of the investment	$ 6,849,000		$ 6,849,000
Iliad [Member] \| Class C Units [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage not fully diluted	6.50%		6.50%
Iliad [Member]
Schedule of Equity Method Investments [Line Items]
Aggregrate investment	$ 7,000,000		$ 7,000,000
Equity investment net loss	$ 308,000	$ 532,000	$ 1,613,000	$ 1,597,000
Iliad [Member] \| Class C Units [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage fully diluted			4.90%

STOCK REPURCHASES (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended	9 Months Ended	146 Months Ended
STOCK REPURCHASES (Details Narrative) - USD ($)	Aug. 16, 2022	Sep. 30, 2024	Sep. 30, 2024	Jun. 30, 2024	Jun. 13, 2023
Other Liabilities Disclosure [Abstract]
Stock Repurchase Program, dollar amount, that may be repurchased					$ 5,000,000
Number of shares, common stock repurchased since inception				10,217,856
Aggregate cost of common stock repurchased since inception				$ 19,772,820
Average price per share, common stock repurchased since inception				$ 1.94
Number of shares, repurchased		119,615	577,060
Aggregate repurchased, cost		$ 189,424	$ 1,059,904
Average repurchased price per share		$ 1.58	$ 1.84
Excise tax description	The excise tax applies in cases where the total value of the stock repurchased during the taxable year exceeds $1,000,000.
Excise taxcomponent of cost		$ 8,000	$ 8,000
Value of remaining shares that may be repurchased		$ 3,312,801	$ 3,312,801

CONCENTRATIONS (Details Narrative)	Sep. 30, 2024 USD ($)
Risks and Uncertainties [Abstract]
FDIC insured amount	$ 250,000
Excess of Insured amount	809,000
Cash equivalents	$ 13,296,000

DIVIDEND POLICY (Details Narrative)	9 Months Ended
DIVIDEND POLICY (Details Narrative)	Sep. 30, 2024 $ / shares
Equity [Abstract]
Dividends, per share - semi-annual	$ 0.05
Dividends, per share - annual	$ 0.10

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