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What changed in NETWORK-1 TECHNOLOGIES, INC.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of NETWORK-1 TECHNOLOGIES, INC.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+135 added−155 removedSource: 10-K (2026-03-13) vs 10-K (2024-12-31)

Top changes in NETWORK-1 TECHNOLOGIES, INC.'s 2025 10-K

135 paragraphs added · 155 removed · 105 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeWe presently own one hundred and six (106) U.S. patents, fifty-four (54) of such patents have expired, and sixteen (16) foreign patents relating to (i) 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; (ii) our HFT Patent Portfolio covering certain advanced -2- 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; (iii) 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; (iv) 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 ; and (v) our Mirror Worlds Patent Portfolio relating to foundational technologies that enable unified search and indexing, displaying and archiving of documents in a computer system.
Biggest changeWe presently own one hundred nineteen (119) U.S. patents, fifty-four (54) of such patents have expired, and fifteen (15) foreign patents (unexpired) relating to (i) 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 (“M2M/IoT Patent Portfolio”); (ii) our HFT -2- 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.
You may obtain, free of charge on our Internet website, copies of our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, Section 16 filings and amendments to those reports or statements filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.
You may obtain, free of charge on our website, copies of our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, Section 16 filings and amendments to those reports or statements filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.
Investment in ILiAD Biotechnologies During the period December 2018 to date, we made aggregate investments of $7,000,000 in ILiAD, a privately held clinical stage biotechnology company dedicated to the prevention and treatment of human disease caused by Bordetella pertussis . ILiAD is currently focused on validating its proprietary intranasal vaccine, BPZE1, for the prevention of pertussis (whooping cough).
Investment in ILiAD Biotechnologies During the period December 2018 to date, we made aggregate investments of $7,000,000 in 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).
Nix is an entrepreneur and inventor, and founder and Chief Executive Officer of Vobal Technologies, LLC. In 2016, Mr. Nix was recognized as “Creator of the Year” by the Intellectual Property Law Association of Chicago for his intellectual property related to eSIM technology. -4- HFT Patent Portfolio On March 25, 2022, we acquired the HFT Patent Portfolio.
Nix is an entrepreneur and inventor, and founder and former Chief Executive Officer of Vobal Technologies, LLC. In 2016, Mr. Nix was recognized as “Creator of the Year” by the Intellectual Property Law Association of Chicago for his intellectual property related to eSIM technology. -4- HFT Patent Portfolio On March 25, 2022, we acquired the HFT Patent Portfolio.
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 our Mirror Worlds Patent Portfolio.
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 previously achieved with respect to our Remote Power Patent and our Mirror Worlds Patent Portfolio.
The America Invents Act and its implementation increased the uncertainties and costs surrounding the enforcement of patent rights has made it more difficult to successfully enforce our patents. -8- In addition, future changes in patent law could adversely impact our business.
The America Invents Act and its implementation increased the uncertainties and costs surrounding the enforcement of patent rights has made it more difficult to successfully enforce our patents. -7- In addition, future changes in patent law could adversely impact our business.
We have a pending appeal to the Federal Circuit of a District Court ruling dismissing our case against Google Inc. and YouTube, LLC involving assertion of certain patents within our Cox Patent Portfolio (see “Legal Proceedings” at page 20 hereof). The patents within our Cox Patent Portfolio are based on a patent application filed in 2000.
We have a pending appeal to the Federal Circuit of a District Court ruling dismissing our case against Google Inc. and YouTube, LLC involving assertion of certain patents within our Cox Patent Portfolio (see “Legal Proceedings” at pages 19-20 hereof). The patents within our Cox Patent Portfolio are based on a patent application filed in 2000.
In general, it addressed issues surrounding the enforceability of patents and the increase in patent litigation by, among other things, establishing new procedures for patent litigation and new administrative post-grant review procedures to challenge the patentability of issued patents outside of litigation, including Inter Partes Review (IPR) and Covered Business Method Review (CBM) proceedings which provide third parties a timely and cost effective alternative to district court litigation to challenge the validity of an issued patent.
In general, it addressed issues surrounding the enforceability of patents and the increase in patent litigation by, among other things, establishing new procedures for patent litigation and new administrative post-grant review procedures to challenge the patentability of issued patents outside of litigation, including Inter Partes Review (IPR) proceedings which provide third parties a timely and cost effective alternative to district court litigation to challenge the validity of an issued patent.
In addition, we may also enter into strategic relationships with third parties to develop, commercialize, license or otherwise monetize their intellectual property. We have been dependent upon our Remote Power Patent for a significant portion of our revenue. Our Remote Power Patent has generated revenue in excess of $188,000,000 from May 2007 through December 31, 2024.
In addition, we may also enter into strategic relationships with third parties to develop, commercialize, license or otherwise monetize their intellectual property. In the past we have been dependent upon our Remote Power Patent for a significant portion of our revenue. Our Remote Power Patent generated revenue in excess of $188,000,000 from May 2007 through December 31, 2025.
We have pending litigations involving our assertion of infringement claims concerning certain patents within our HFT Patent Portfolio. In addition, we have a pending appeal to the U.S.
We have pending litigations involving our assertion of infringement claims concerning certain patents within our M2M/IoT Patent Portfolio and HFT Patent Portfolio. In addition, we have a pending appeal to the U.S.
Entities including, among others, Acacia Research Corporation (NASDAQ:ACTG), Intellectual Ventures, WI-LAN Inc., VirnetX Holdings Corporation (NYSE MKT:VHC) and RPX Corporation, seek to acquire intellectual property or partner with third parties to license or enforce intellectual property rights. In addition, we also compete with strategic corporate buyers with respect to the acquisition of intellectual property assets.
Entities including, among others, Acacia Research Corporation (NASDAQ:ACTG), Intellectual Ventures, WI-LAN Inc., and RPX Corporation, seek to acquire intellectual property or partner with third parties to license or enforce intellectual property rights. In addition, we also compete with strategic corporate buyers with respect to the acquisition of intellectual property assets.
This portfolio covers 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 HFT Patent Portfolio currently includes eleven (11) issued U.S. patents and two pending U.S. patents.
This portfolio covers 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. The HFT Patent Portfolio currently includes eleven (11) issued U.S. patents and two pending U.S. patents.
Court of Appeals for the Federal Circuit of the District Court judgment of non-infringement dismissing our case against Google and YouTube involving certain patents within our Cox Patent Portfolio (see “Legal Proceedings” at page 20 of this Annual Report). At December 31, 2024, we had cash and cash equivalents and marketable securities of $40,600,000 and working capital of $40,066,000.
Court of Appeals for the Federal Circuit of a District Court’s judgment of non-infringement dismissing our case against Google and YouTube involving certain patents within our Cox Patent Portfolio (see “Legal Proceedings” at pages 19-20 of this Annual Report). At December 31, 2025, we had cash and cash equivalents and marketable securities of $36,869,000 and working capital of $36,336,000.
BPZE1 is a live-attenuated intranasal vaccine designed to overcome deficiencies of current pertussis vaccines, including poor durability of protection and failure to prevent nasopharyngeal Bordetella pertussis infections that lead to escape mutants and transmission to vulnerable infants.
BPZE1 is a live-attenuated intranasal vaccine designed to overcome deficiencies of current pertussis vaccines, including poor durability of protection and failure to prevent nasopharyngeal Bordetella pertussis infections that lead to escape mutants and transmission to vulnerable infants. On February 5, 2026, ILiAD completed a $115,000,000 preferred stock financing .
The expiration dates of the forty-one (41) issued U.S. patents currently within our M2M/IoT Patent Portfolio range from September 2033 to May 2034.
The expiration dates of the forty-five (45) issued U.S. patents currently within our M2M/IoT Patent Portfolio range from September 2033 to May 2034. The expiration dates of the fourteen (14) foreign patents currently within our M2M/IoT Patent Portfolio range from October 2034 - December 2034.
In connection with our investment, Corey Horowitz, our Chairman and Chief Executive Officer, became a member of ILiAD’s Board of Managers and receives the same compensation for service on the Board as the other non-management Board members.
In connection with our investment, Corey Horowitz, our Chairman and Chief Executive Officer, became a member of ILiAD’s Board of Managers and received the same compensation for service on the Board as the other non-management Board members. Following ILiAD’s completion of a preferred stock financing in February 2026, Mr. Horowitz no longer serves on the Board.
The M2M/IoT Patent Portfolio currently consists of forty-one (41) issued U.S. patents, six (6) pending U.S. patent applications, and fifteen (15) registered foreign patents. Since we acquired the M2M/IoT Patent Portfolio in December 2017, we have been issued twenty-nine (29) additional U.S. patents with respect to the portfolio. We anticipate further issuances of additional claims for this portfolio.
The M2M/IoT Patent Portfolio currently consists of forty-five (45) issued U.S. patents, five (5) pending U.S. patent applications, and fourteen (14) registered foreign patents. Since we acquired the M2M/IoT Patent Portfolio in December 2017, we have been issued thirty-three (33) additional U.S. patents with respect to the portfolio. We anticipate further issuances of additional claims for this portfolio.
We no longer receive revenue for our Remote Power Patent for any infringement period subsequent to March 7, 2020 (the expiration date of the patent). During the year ended December 31, 2024 and 2023, our Remote Power Patent generated all of our revenue. Our future revenue is largely dependent on our ability to monetize our other patent assets.
During the year ended December 31, 2025 and 2024, our Remote Power Patent generated all of our revenue. We are no longer enforcing our Remote Power Patent. Our future revenue is dependent on our ability to monetize our other patent assets.
In addition to the materials that are posted on our website, you may read and copy any materials we file with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Washington, DC 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.
The information we post on our website is intended for reference purposes only; none of the information posted on our website is part of this Annual Report or incorporated by reference herein. -8- In addition to the materials that are posted on our website, you may read and copy any materials we file with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Washington, DC 20549.
On December 31, 2024, we 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 of all outstanding options and warrants). Our current strategy includes continuing our efforts to monetize our intellectual property.
On December 31, 2025, we owned approximately 6.4% of the outstanding units of ILiAD on a non-fully diluted basis and approximately 4.8% of the outstanding units on a fully diluted basis (see “Business- Investment in ILiAD Biotechnologies). Our current strategy includes continuing our efforts to monetize our intellectual property.
Our current 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 has been the case with our Remote Power Patent and Mirror Worlds Patent Portfolio. Our Remote Power Patent has generated licensing revenue in excess of $188,000,000 from May 2007 through December 31, 2024.
Our current 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 our Remote Power Patent and Mirror Worlds Patent Portfolio.
Based on our current cash position, we believe that we will have sufficient cash to fund our operations for the foreseeable future. -3- Overview of Our Patents We currently own one hundred and six (106) U.S. patents and sixteen (16) foreign patents relating to patents within our M2M/IoT Patent Portfolio, HFT Patent Portfolio, Cox Patent Portfolio, Mirror Worlds Patent Portfolio and our Remote Power Patent.
Based on our current cash position, we believe that we will have sufficient cash to fund our operations for the foreseeable future. -3- Overview of Our Patents We are currently developing patents within our M2M/IoT Patent Portfolio, HFT Patent Portfolio and Smart Home Patent Portfolio.
We are currently involved in several litigations to protect our patents including certain patents within our HFT Patent Portfolio and an appeal to the Federal Circuit of a District Court dismissal involving certain patents within our Cox Patent Portfolio (see “Legal Proceedings” at page 20 (hereof).
We are currently involved in several litigations to protect our patents including certain patents within our M2M/IoT Patent Portfolio and HFT Patent Portfolio as well as an appeal to the Federal Circuit of a District Court dismissal involving certain patents within our Cox Patent Portfolio (see “Legal Proceedings” at pages 19-20 (hereof). -6- Revenue Concentration Revenue from our Remote Power Patent as a result of a litigation settlement constituted 100% of our revenue for the year ended December 31, 2025.
Available Information We file or furnish various reports, such as registration statements, quarterly and current reports, proxy statements and other materials with the SEC. Our website address is www.network-1.com .
Our principal executive offices are located at 65 Locust Avenue, Third Floor, New Canaan, Connecticut 06840 and our telephone number is (203) 920-1055. Available Information We file or furnish various reports, such as registration statements, quarterly and current reports, proxy statements and other materials with the SEC. Our website address is www.network-1.com .
Since the acquisition of our Mirror Worlds Patent Portfolio in May 2013, we have received licensing and other revenue of $47,150,000 through December 31, 2024. In addition, we may enter into third party strategic relationships with inventors and patent owners to assist in the development and monetization of their patent technologies.
We no longer intend to enforce our Remote Power Patent and Mirror Worlds Patent Portfolio as all such patents have expired. Our revenue is dependent on our ability to monetize our other patent portfolios. In addition, we may enter into third party strategic relationships with inventors and patent owners to assist in the development and monetization of their patent technologies.
The SEC also maintains an Internet site that contains reports, proxy and other information statements, and other information regarding issuers, including us, that file electronically with the SEC. The address of the SEC’s Internet site is http://www.sec.gov . Employees and Consultants We currently have two full-time employees and two consultants providing monthly services to us.
You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains a website that contains reports, proxy and other information statements, and other information regarding issuers, including us, that file electronically with the SEC. The address of the SEC’s website is http://www.sec.gov .
On December 31, 2024, we 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 of all outstanding options, and warrants).
Pertussis is a life-threatening disease caused by the highly contagious respiratory bacterium Bordetella pertussis . On December 31, 2025, we owned approximately 6.4% of the outstanding units of ILiAD on a non-fully diluted basis and approximately 4.8% of the outstanding units on a fully diluted basis.
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We have invested $7,000,000 in ILiAD Biotechnologies, LLC (“ILiAD”), a clinical stage biotechnology company with an exclusive license to seventy-four (74) patents.
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(“HFT Patent Portfolio”); and (iii) 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 (“Cox Patent Portfolio”); (iv) our smart home patent portfolio relating to, among other things, the enabling technology to support the interoperability of smart home IoT devices (“Smart Home Patent Portfolio; (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 ; and (vi) our Mirror Worlds Patent Portfolio relating to foundational technologies that enable unified search and indexing, displaying and archiving of documents in a computer system.
Removed
With respect to our one hundred and six (106) 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 expiration date. In 2024, our revenue was achieved from claims related to our expired Remote Power Patent and we have appealed to the U.S.
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We no longer intend to monetize our Remote Power Patent and Mirror Worlds Patent Portfolio as such patents have expired. We have invested $7,000,000 in ILiAD Biotechnologies, Inc.
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Court of Appeals for the Federal Circuit the District Court order dismissing our claims involving certain expired patents within our Cox Patent Portfolio (see “Legal Proceedings” at page 20 hereof).
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(“ILiAD”), a clinical stage biotechnology company dedicated to the prevention and treatment of human disease caused by Bordetella pertussis with a focus on validating its proprietary intranasal vaccine, BPZE1, for the prevention of pertussis (whooping cough).
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He is an inventor or co-inventor of over seventy (70) U.S. patents. -5- Remote Power Patent Our Remote Power Patent (U.S. Patent No. 6,218,930) covers the delivery of power over Ethernet cables for the purpose of remotely powering network devices such as wireless access ports, IP phones and network based cameras. Our Remote Power Patent expired on March 7, 2020.
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In addition, we are currently monetizing certain patents within our M2M/IoT Patent Portfolio, HFT Patent Portfolio and Cox Patent Portfolio (see “Legal Proceedings” at pages 19-20 hereof).
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Notwithstanding the expiration of the Remote Power Patent in March 2020, in October and November 2022, we asserted the patent in nine separate actions against ten defendants for damages prior to March 7, 2020 and have reached settlement agreements with nine of the defendants (see “Legal Proceedings” at page 20 hereof).
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He is an inventor or co-inventor of over seventy (70) U.S. patents. -5- Smart Home Patent Portfolio Our Smart Home Patent Portfolio, acquired in March 2025, relates to, among other things, enabling technology to support the interoperability of smart home IoT devices. Our Smart Home Patent Portfolio currently consists of nine issued U.S. patents, four pending U.S.
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On June 13, 2003, the Institute of Electrical Engineers (IEEE), a non-profit, technical professional association, approved the 802.3af Power over Ethernet standard (the “Standard”), which covers technologies deployed in delivering power over Ethernet networks.
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Patents and one registered foreign patent and five pending foreign patents. The expiration dates within our HFT Patent Portfolio range from October 2039 to February 2040.
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The Standard provides for the Power Sourcing Equipment (PSE) to be deployed in switches or as standalone midspan hubs to provide power to remote devices such as wireless access points, IP phones and network-based cameras. The technology is commonly referred to as Power over Ethernet (“PoE”).
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We are obligated to pay the seller 12.5% of the first $100 million of net proceeds (after the deduction of expenses) and 5% of the net proceeds in excess of $100 million from Monetization Activities (as defined) related to the patent portfolio. In addition, we are obligated to pay the seller $50,000 upon certain events.
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In 2009, the IEEE Standards Association approved 802.3at, a new PoE standard which, among other things, increased the available power for delivery over Ethernet networks. We believe that our Remote Power Patent covers several of the key technologies covered by both the 802.3af and 802.3at standards.
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The financing was led by RA Capital Management with participation from new investors Janus Henderson Investors and BNP Paribas Asset Management Alts, as well as existing investors including a multi-national pharmaceutical company and AI Life Sciences.
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Mirror Worlds Patent Portfolio Our Mirror Worlds Patent Portfolio, acquired in May 2013, consists of ten (10) U.S. patents and covers foundational technologies that enable unified search and indexing, displaying and archiving of documents in a computer system. All of our patents within our Mirror Worlds Patent Portfolio have expired.
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Following the closing of the financing, we owned approximately 3.1% of the outstanding shares on a non-fully diluted basis and approximately 2.5% of the outstanding shares on a fully diluted basis (see Note O to our consolidated financial statements included herein). Corporate Information We were incorporated under the laws of the State of Delaware in July 1990.
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Our 227 Patent, within this portfolio, was previously asserted in litigations against Apple Inc. and Microsoft Corporation which were settled resulting in aggregate payments to us of $29,650,000. In December 2024, the U.S.
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Employees and Consultants We currently have two full-time employees and two consultants providing monthly services to us.
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Circuit Court of Appeals for the Federal Circuit affirmed the judgment of the District Court granting Meta Platform’s Inc.’s (formerly Facebook) motion for summary judgment of non- infringement dismissing Network-1 claims against Meta involving certain patents within our Mirror Worlds Patent Portfolio.
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The inventions relating to document stream operating systems covered by our Mirror Worlds Patent Portfolio resulted from the work done by Yale University computer scientist, Professor David Gelernter, and his then graduate student, Dr. Eric Freeman, in the mid-1990s.
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Certain aspects of the technologies developed by David Gelernter were commercialized in their company's product offering called “Scopeware.” Technologies embodied in Scopeware are now common in various computer and web-based operating systems. -6- As part of our acquisition of the Mirror Worlds Patent Portfolio in 2013, we also entered into an agreement with Recognition Interface, LLC (“Recognition”), an entity that financed the commercialization of the Mirror Worlds patent portfolio prior to its sale to Mirror Worlds, LLC and also retained an interest in the licensing proceeds of the Mirror Worlds patent portfolio.
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Pursuant to the terms of the agreement with us, we are obligated to pay Recognition an interest in the net proceeds realized from our monetization of the Mirror Worlds Patent Portfolio as follows: (i) 10% of the first $125 million of net proceeds; (ii) 15% of the next $125 million of net proceeds; and (iii) 20% of any portion of the net proceeds in excess of $250 million.
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Since entering into the agreement with Recognition in May 2013, we have paid Recognition an aggregate of $3,127,000 with respect to such net proceeds interest in our Mirror Worlds Patent Portfolio (no such payments were made during the years 2024 and 2023).
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We have previously successfully asserted litigation with respect to our Remote Power Patent and our Mirror Worlds Patent Portfolio. -7- Revenue Concentration Revenue from our Remote Power Patent as a result of a litigation settlement with a defendant constituted 100% of our revenue for the year ended December 31, 2024.
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Pertussis is a life-threatening disease caused by the highly contagious respiratory bacterium Bordetella pertussis . ILiAD has the exclusive license to seventy-four (74) issued patents and has fifty-four (54) pending patent applications.
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On August 24, 2022, ILiAD consummated a private equity financing of $42,800,000, of which a multi-national pharmaceutical company invested $30,000,000. -9- Corporate Information We were incorporated under the laws of the State of Delaware in July 1990. Our principal executive offices are located at 65 Locust Avenue, Third Floor, New Canaan, Connecticut 06840 and our telephone number is (203) 920-1055.
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The information we post on our website is intended for reference purposes only; none of the information posted on our website is part of this Annual Report or incorporated by reference herein.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIf any of the following risks actually occur, our business, financial condition, results of operations and cash flow could be materially adversely affected, and the trading price of our common stock could decline significantly. -10- Risks Related to Our Business Our revenue is uncertain as it is dependent upon litigation outcomes involving our patents which we cannot predict.
Biggest changeAdditional risks that we do not know of or that we currently believe are immaterial may also impair our business operations. If any of the following risks actually occur, our business, financial condition, results of operations and cash flow could be materially adversely affected, and the trading price of our common stock could decline significantly.
This concentration of ownership will limit other stockholders' ability to influence corporate matters and may have the effect of delaying or preventing a third party from acquiring control over us. -16- Our common stock may be delisted from the NYSE American exchange if we fail to comply with continued listing standards.
This concentration of ownership will limit other stockholders' ability to influence corporate matters and may have the effect of delaying or preventing a third party from acquiring control over us. Our common stock may be delisted from the NYSE American exchange if we fail to comply with continued listing standards.
Patent litigation is inherently risky and uncertain and we cannot assure you that any of our current or future litigation will result in a favorable outcome for us. Accordingly, our revenue is uncertain. If we are unable to protect our patents, our business would be negatively impacted. We believe our patents are valid, enforceable and valuable.
Patent litigation is inherently risky and uncertain and we cannot assure you that any of our current or future litigation will result in a favorable outcome for us. Accordingly, our revenue is uncertain. -9- If we are unable to protect our patents, our business would be negatively impacted. We believe our patents are valid, enforceable and valuable.
Such challenges could result in lengthy legal battles or the invalidation of our patents, thereby impacting our potential future revenue. -14- AI driven legal analytics tools can also empower potential infringers with sophisticated insights into the strengths and weaknesses of our patent claims, potentially reducing our leverage in litigation and licensing negotiations.
Such challenges could result in lengthy legal battles or the invalidation of our patents, thereby impacting our potential future revenue. AI driven legal analytics tools can also empower potential infringers with sophisticated insights into the strengths and weaknesses of our patent claims, potentially reducing our leverage in litigation and licensing negotiations.
Investors are advised that our financial results could be adversely affected if we are unable to adapt to the rapid changes brought about by AI and ML technologies, and our ability to enforce our patent rights is consequently diminished. Changes in patent law could adversely impact our business.
Investors are advised that our financial results could be adversely affected if we are unable to adapt to the rapid changes brought about by AI and ML technologies, and our ability to enforce our patent rights is consequently diminished. -13- Changes in patent law could adversely impact our business.
Furthermore, the outcome of our efforts to monetize our patents is uncertain and we may not be successful. -12- Our quarterly and annual operating and financial results, including our revenue, are difficult to predict and are likely to fluctuate significantly in future periods.
Furthermore, the outcome of our efforts to monetize our patents is uncertain and we may not be successful. Our quarterly and annual operating and financial results, including our revenue, are difficult to predict and are likely to fluctuate significantly in future periods.
Many of these competitors also have greater financial resources and human resources than us. -15- Our markets are subject to rapid technological change and our technologies face potential technology obsolescence. The markets covered by our intellectual property are characterized by rapid technological changes, changing customer requirements, frequent new product introductions and enhancements, and evolving industry standards.
Many of these competitors also have greater financial resources and human resources than us. -14- Our markets are subject to rapid technological change and our technologies face potential technology obsolescence. The markets covered by our intellectual property are characterized by rapid technological changes, changing customer requirements, frequent new product introductions and enhancements, and evolving industry standards.
If we were determined to be a PHC in 2025 or any future year, we would be subject to an additional 20% tax on our UPHCI. In such event, we may issue a special cash dividend to our shareholders in an amount equal to the UPHCI rather than incur the 20% tax. We are dependent upon our CEO and Chairman.
If we were determined to be a PHC in 2026 or any future year, we would be subject to an additional 20% tax on our UPHCI. In such event, we may issue a special cash dividend to our shareholders in an amount equal to the UPHCI rather than incur the 20% tax. We are dependent upon our CEO and Chairman.
In addition, the securities markets have from time to time experienced significant price and volume fluctuations that are unrelated to the operating performance of particular companies. These market fluctuations may also have a material and adverse effect on the market price of our common stock. -18-
In addition, the securities markets have from time-to-time experienced significant price and volume fluctuations that are unrelated to the operating performance of particular companies. These market fluctuations may also have a material and adverse effect on the market price of our common stock. -17-
During the second half of 2024, based on available information concerning our shareholder ownership, we did not satisfy the Ownership Test. In addition, we did not satisfy the Income Test for 2024. Thus, we were not a PHC for 2024. However, we may be determined to be a PHC in the future.
During the second half of 2025, based on available information concerning our shareholder ownership, we did not satisfy the Ownership Test. In addition, we did not satisfy the Income Test for 2025. Thus, we were not a PHC for 2025. However, we may be determined to be a PHC in the future.
These provisions may also limit the ability of stockholders to delay, deter or prevent a change of control, or approve transactions that they may deem to be in their best interests. -17- Our stock price may be volatile.
These provisions may also limit the ability of stockholders to delay, deter or prevent a change of control, or approve transactions that they may deem to be in their best interests. -16- Our stock price may be volatile.
Despite this belief, third parties typically defend assertion of our patents by asserting defenses, among others, of non-infringement and invalidity. In addition, in the future certain of our patents may be subject to USPTO post-grant inter partes review proceedings (IPRs) which could result in all or a part of our patents being invalidated or the claims being limited.
Despite this belief, third parties typically defend assertion of our patents by asserting defenses, among others, of non-infringement and invalidity. In addition, certain of our patents may become subject to USPTO post-grant inter partes review proceedings (IPRs) which could result in all or a part of our patents being invalidated or the claims being limited.
The market price of our common stock may be highly volatile and could fluctuate widely in price in response to various factors, many of which are beyond our control, including, but not limited to, the following: • the outcome of our litigations against Citadel Securities, LLC and Jump Trading, LLC involving certain patents within our HFT Patent Portfolio; • our ability to monetize our M2M/IoT Patent Portfolio; • the outcome of our appeal to the Federal Circuit of the District Court dismissal of our litigation against Google and YouTube involving certain patents within our Cox Patent Portfolio; • our ability to achieve a successful outcome of our investment in ILiAD; • our ability to acquire additional intellectual property; • our ability to enter into strategic relationships with third parties to license or otherwise monetize their intellectual property; • variations in our quarterly and annual operating results; • our ability to continue to pay cash dividends; • our ability to raise capital if needed; • sales of our common stock; • technology changes; • the increasing development of artificial intelligence could impact our business; • legislative, regulatory and competitive developments; and • economic and other external factors.
The market price of our common stock may be highly volatile and could fluctuate widely in price in response to various factors, many of which are beyond our control, including, but not limited to, the following: • the outcome of our litigations against Citadel Securities, LLC, Jump Trading, LLC and Optiver US, LLC and Optiver Trading US, LLC involving certain patents within our HFT Patent Portfolio; • the outcome of our litigation against Samsung Electronics Co., LTD and Samsung Electronics America, Inc. involving certain patents within our M2M/IoT Patent Portfolio; • the outcome of our appeal to the Federal Circuit of the District Court dismissal of our litigation against Google and YouTube involving certain patents within our Cox Patent Portfolio; • our ability to achieve a successful outcome of our investment in ILiAD; • our ability to acquire additional intellectual property; • our ability to enter into strategic relationships with third parties to license or otherwise monetize their intellectual property; • variations in our quarterly and annual operating results; • our ability to continue to pay cash dividends; • our ability to raise capital if needed; • sales of our common stock; • technology changes; • the increasing development of artificial intelligence could impact our business; • legislative, regulatory and competitive developments; and • economic and other external factors.
We may not achieve successful outcomes of litigations involving our HFT Patent Portfolio or be able to monetize our M2M/IoT Patent Portfolio, which would have a material negative impact on our ability to achieve significant revenue and net income in the future.
We may not achieve successful outcomes of litigations involving our HFT Patent Portfolio or M2M/IoT Patent Portfolio, which would have a material negative impact on our ability to achieve significant revenue and net income in the future.
We may not achieve successful outcomes in these patent litigations involving our HFT Patent Portfolio or be able to monetize our M2M/IoT Patent Portfolio which would have a material negative impact on our ability to achieve significant revenue and net income in the future. The outcome of our substantial investment in ILiAD is uncertain.
We may not achieve successful outcomes in these patent litigations involving our HFT Patent Portfolio and M2M/IoT Patent Portfolio which would have a material negative impact on our ability to achieve significant revenue and net income in the future. The outcome of our substantial investment in ILiAD is uncertain.
Our success is largely dependent upon the personal efforts of Corey M. Horowitz, our Chairman, Chief Executive Officer and Chairman of our Board of Directors. On March 22, 2022, we entered into a new four year employment agreement with Mr. Horowitz pursuant to which he continues to serve as our Chairman and Chief Executive Officer.
Our success is largely dependent upon the personal efforts of Corey M. Horowitz, our Chairman, Chief Executive Officer and Chairman of our Board of Directors. On March 22, 2022, we entered into a four year employment agreement with Mr. Horowitz pursuant to which he has continued to serve as our Chairman and Chief Executive Officer.
We have pending litigations involving our HFT Patent Portfolio and a pending appeal to the Federal Circuit of dismissal of our litigation against Google and YouTube involving certain patents within our Cox Patent Portfolio (see “Legal Proceedings” at page 20 of this Annual Report).
We have pending litigations involving our M2M/IoT Patent Portfolio and HFT Patent Portfolio and a pending appeal to the Federal Circuit of dismissal of our litigation against Google and YouTube involving certain patents within our Cox Patent Portfolio (see “Legal Proceedings” at pages 19-20 of this Annual Report).
Based upon the success we achieved from licensing our Remote Power Patent (twenty-eight (28) license agreements and in excess of $188,000,000 of revenue through December 31, 2024), the revenue we generated from our Mirror Worlds Patent Portfolio ($47,150,000), establishing a patent portfolio currently consisting of one hundred and six (106) U.S. patents and sixteen (16) foreign patents, and our cash position, we believe we have the expertise and sufficient capital to compete in the patent monetization market and to enter strategic relationships with third parties to develop, commercialize, license or otherwise monetize their patents.
Based upon the success we achieved from licensing our Remote Power Patent (twenty-eight (28) license agreements and in excess of $188,000,000 of revenue through December 31, 2025), the revenue we generated from our Mirror Worlds Patent Portfolio ($47,150,000), establishing a patent portfolio currently consisting of one hundred nineteen (119) U.S. patents and fifteen (15) foreign patents, and our cash position, we believe we have the expertise and sufficient capital to compete in the patent monetization market and to enter strategic relationships with third parties to develop, commercialize, license or otherwise monetize their patents.
Our revenue, net income and results of operations may widely fluctuate, including years where we may have no revenue, as a result of a variety of factors that are outside our control, including the timing and our ability to achieve successful outcomes from current and future patent litigation, our ability and timing in consummating future license agreements for our intellectual property assets, the timing and extent of payments received by us from licensees, whether we will achieve a successful outcome of our investment in ILiAD, and the timing and our ability to achieve revenue from future strategic relationships.
Our revenue, net income and results of operations may widely fluctuate, including years where we may have no revenue, as a result of a variety of factors that are outside our control, including the timing and our ability to achieve successful outcomes from current and future patent litigation, our ability and timing in consummating future license agreements for our intellectual property assets, the timing and extent of payments received by us from licensees, whether we will achieve a successful outcome of our investment in ILiAD, and the timing and our ability to achieve revenue from future strategic relationships. -11- In the future we could be classified as a Personal Holding Company resulting in a 20% tax on our PHC Income that we do not distribute to our shareholders.
The loss of the services of Mr. Horowitz would have a material adverse effect on our business and prospects. We do not maintain key-man life insurance on the life of Mr. Horowitz. -13- Cash dividends may not be continued to be paid.
The loss of the services of Mr. Horowitz would have a material adverse effect on our business and prospects. We do not maintain key-man life insurance on the life of Mr. Horowitz. The Company and Mr. Horowitz are in discussions to extend his employment agreement. Cash dividends may not be continued to be paid.
There are inherent uncertainties involved in estimates, judgments and assumptions used in the preparation of financial statements in accordance with U.S. GAAP. Any changes in estimates, judgments and assumptions could have a material adverse effect on our business, financial condition, and operating results.
Such delisting could adversely affect the price and trading (including liquidity) of our common stock. -15- There are inherent uncertainties involved in estimates, judgments and assumptions used in the preparation of financial statements in accordance with U.S. GAAP. Any changes in estimates, judgments and assumptions could have a material adverse effect on our business, financial condition, and operating results.
Our common stock is currently traded on the NYSE American exchange under the symbol “NTIP”. If we fail to meet any of the continued listing standards of the NYSE American exchange, our common stock could be delisted. Such delisting could adversely affect the price and trading (including liquidity) of our common stock.
Our common stock is currently traded on the NYSE American exchange under the symbol “NTIP”. If we fail to meet any of the continued listing standards of the NYSE American exchange, our common stock could be delisted.
However, our dividend policy undergoes a periodic review by our Board of Directors and is subject to change at any time depending upon our earnings, financial requirements and other factors existing at the time. We may not be in a position to continue to pay dividends in the future.
However, our dividend policy undergoes a periodic review by our Board of Directors and is subject to change at any time depending upon our earnings, financial requirements and other factors existing at the time.
While we have contingent legal fee arrangements, or a contingency plus a fixed cash amount arrangement, with our patent litigation counsel in each litigation, we are responsible for all or a portion of the expenses which are anticipated to be material.
While we have contingent legal fee arrangements with our patent litigation counsel in each litigation, except for proceedings at the USPTO which are on a fixed fee basis, we are responsible for all or a portion of the expenses which are anticipated to be material.
Legislation, regulations, court rulings and actions by the USPTO have materially increased the risk and cost of enforcement of patents and may continue to do so in the future. Legislation, regulations, court rulings and actions by the USPTO have materially increased the risk and cost of enforcing patents.
We may not be in a position to continue to pay dividends in the future. -12- Legislation, regulations, court rulings and actions by the USPTO have materially increased the risk and cost of enforcement of patents and may continue to do so in the future.
As of February 15 , 2025, our executive officers and directors beneficially owned 31.9% of our outstanding common stock.
As of February 15 , 2026, our executive officers and directors beneficially owned 32.6% of our outstanding common stock.
U.S. patent laws were amended by the Leahy-Smith America Invents Act, referred to as the America Invents Act, which became effective on March 16, 2013. The America Invents Act included a number of significant changes to U.S. patent law.
Legislation, regulations, court rulings and actions by the USPTO have materially increased the risk and cost of enforcing patents. U.S. patent laws were amended by the Leahy-Smith America Invents Act, referred to as the America Invents Act, which became effective on March 16, 2013. The America Invents Act included a number of significant changes to U.S. patent law.
On December 26, 2024, we commenced patent litigations against Citadel Securities, LLC and Jump Trading, LLC in the United States District Court for the Northern District of Illinois for infringement of certain patents within our HFT Patent Portfolio (see “Legal Proceedings” at page 20 hereof). We also intend to make efforts to monetize our M2M/IoT Patent Portfolio.
On December 26, 2024, we commenced patent litigations against Citadel Securities, LLC and Jump Trading, LLC in the United States District Court for the Northern District of Illinois for infringement of certain patents within our HFT Patent Portfolio.
Our revenue is dependent upon our litigation outcomes. We currently have pending patent infringement litigations involving our HFT Patent Portfolio and a pending appeal of dismissal of litigation involving our Cox Patent Portfolio (see “Legal Proceedings” at page 20 hereof).
We currently have pending patent infringement litigations involving our M2M/IoT Patent Portfolio and HFT Patent Portfolio as well as a pending appeal of dismissal of litigation involving our Cox Patent Portfolio (see “Legal Proceedings” at pages 19-20 hereof).
We may not be able to capitalize in the future on our strategy to acquire high quality patents with significant licensing opportunities or enter into strategic relationships with third parties to license or otherwise monetize their intellectual property.
Our failure to successfully monetize our other patent portfolios would have a negative impact on our business, financial condition and operating results. -10- We may not be able to capitalize in the future on our strategy to acquire high quality patents with significant licensing opportunities or enter into strategic relationships with third parties to license or otherwise monetize their intellectual property.
We have invested $7,000,000 in ILiAD, a privately held clinical stage biotechnology company, with focus on validating its proprietary intranasal vaccine (BPZE1) for the prevention of pertussis (whopping cough). Notwithstanding the aforementioned, ILiAD still faces material risks going forward.
We have invested $7,000,000 in ILiAD, a privately held clinical stage biotechnology company, with focus on validating its proprietary intranasal vaccine (BPZE1) for the prevention of pertussis (whopping cough). ILiAD faces material risks going forward. Accordingly, our investment in ILiAD remains subject to substantial risks (see Note H to our consolidated financial statements included herein).
Accordingly, our investment in ILiAD remains subject to substantial risks. -11- We have been dependent upon our Remote Power Patent for a significant portion of our revenue in the past and we may not be able to generate future revenue from our other patents.
We have been dependent upon our Remote Power Patent for a significant portion of our revenue in the past and we may not be able to generate future revenue from our other patents. Our Remote Power Patent has generated revenue for us in excess of $188,000,000 from May 2007 through December 31, 2025.
Our Remote Power Patent has generated revenue for us in excess of $188,000,000 from May 2007 through December 31, 2024. Revenue from our Remote Power Patent constituted 100% of our revenue for 2024 ($100,000) and 2023 ($2,601,000).
Revenue from our Remote Power Patent constituted 100% of our revenue for 2025 ($150,000), 2024 ($100,000) and 2023 ($2,601,000) We no longer intend to enforce our Remote Power patent which expired in March 2020. Our revenue is dependent on our ability to successfully monetize our other patent portfolios.
Removed
Additional risks that we do not know of or that we currently believe are immaterial may also impair our business operations.
Added
Risks Related to Our Business Our revenue is uncertain as it is dependent upon litigation outcomes involving our patents which we cannot predict. Our revenue is dependent upon our litigation outcomes.
Removed
We had no revenue in 2022 and revenue from our Remote Power Patent constituted 100% of our revenue for 2021 ($36,029,000), 2020 ($4,403,000) and 2019 ($3,037,000). As a result of the expiration of our Remote Power Patent on March 7, 2020, we no longer receive revenue from such patent for any period subsequent to the expiration date.
Added
On September 8, 2025, we commenced patent litigation against Optiver US LLC and Optiver Trading US LLC in the United States District Court for the Western District of Texas also for infringement of certain patents within our HFT Patent Portfolio.
Removed
Our failure to successfully monetize our other patents, including our HFT Patent Portfolio and M2M/IoT Patent Portfolio, would have a negative impact on our business, financial condition and operating results.
Added
On June 27, 2025, we commenced patent litigation against Samsung Electronics Co., LTD and Samsung Electronics America, Inc. in the United Stated District Court for the Eastern District of Texas for infringement of certain patents within our M2M/IoT Patent Portfolio (see Legal Proceedings at page 19 hereof).
Removed
In the future we could be classified as a Personal Holding Company resulting in a 20% tax on our PHC Income that we do not distribute to our shareholders.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeWe have recently implemented overall risk procedures which incorporate certain uniform processes. To date, we have not engaged any consultants, auditors or other third parties in connection with our risk management system or processes. In connection with our use of third party service providers, we have certain processes in place to oversee and identify cybersecurity risks from threats and incidents.
Biggest changeWe have implemented overall risk procedures which incorporate certain uniform processes. To date, we have not engaged any consultants, auditors or other third parties in connection with our risk management system or processes. In connection with our use of third-party service providers, we have certain processes in place to oversee and identify cybersecurity risks from threats and incidents.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeITEM 2. PROPERTIES Our principal executive offices are located in New Canaan, Connecticut, where we lease approximately 2,000 square feet of office space at a base rent of $5,500 per month pursuant to a lease amendment, dated May 1, 2022, which term expires on April 30, 2025.
Biggest changeITEM 2. PROPERTIES Our principal executive offices are located in New Canaan, Connecticut, where we lease approximately 2,000 square feet of office space at a base rent of $5,500 per month. The lease expires on April 30, 2026. We believe that our office facility is suitable and appropriate to support our current needs. -18-
Removed
We believe that our office facility is suitable and appropriate to support our current needs. -19-

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeCox Patent Portfolio Litigation On April 4, 2014 and December 3, 2014, we 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 our patents within our Cox Patent Portfolio which relate to the identification of media content on the Internet.
Biggest changeDistrict Court for the Southern District of New York for infringement of several of our patents within our Cox Patent Portfolio which relate to the identification of media content on the Internet.
The lawsuit alleged that Google and YouTube had infringed and continued to infringe certain of our patents by making, using, selling and offering to sell unlicensed systems and related products and services, which included YouTube’s Content ID system.
The lawsuit alleged that Google and YouTube had infringed and continued to infringe certain of our patents by making, using, selling and offering to sell unlicensed systems and related products and services, which included YouTube’s Content ID system. In April 2024, following a motion for summary judgment by the defendants, the U.S.
ITEM 3. LEGAL PROCEEDINGS HFT Patent Portfolio Litigation On December 24, 2024, our wholly-owned subsidiary, HFT Solutions, LLC (“HFT”), initiated patent litigations against Citadel Securities, LLC and Jump Trading, LLC in the United States District Court for the Northern District of Illinois for infringement of U.S. Patent No. 10,931,286, U.S. Patent No. 11,128,305, and U.S. Patent No. 11,575,381.
A trial date has been scheduled for June 7, 2027. HFT Patent Portfolio Litigation On December 24, 2024, our wholly-owned subsidiary, HFT Solutions, LLC (“HFT”), initiated patent litigations against Citadel Securities, LLC and Jump Trading, LLC in the United States District Court for the Northern District of Illinois for infringement of U.S. Patent No. 10,931,286, U.S.
The Court’s ruling disposes of all of our claims in the case. On May 14, 2024, we filed a notice of appeal to the U.S.
The Court’s ruling disposes of all of our claims in the case. On May 14, 2024, we filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit and oral argument on the appeal took place on March 9, 2026.
Removed
The asserted patents are part of the HFT Patent Portfolio acquired by us in March 2022.
Added
ITEM 3. LEGAL PROCEEDINGS M2M/IoT Patent Portfolio Litigation On June 27, 2025, we commenced patent litigation against Samsung Electronics Co., LTD and Samsung Electronics America, Inc.(collectively, “Samsung”) in the United States District Court for the Eastern District of Texas for infringement of U.S. Patent No. 11,233,780, U.S. Patent No.11,916,893, U.S. Patent No.12,207,094, U.S. Patent No. 12,166,869, U.S.
Removed
The HFT Patent Portfolio relates to, among other things, 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.
Added
Patent No.11,606,204, and U.S. Patent No.11,973,864. All such patents are part of our M2M/IoT Patent Portfolio. The lawsuit alleges that Samsung infringes the asserted patents by supporting certain eSIM (embedded Subscriber Identification Module) and 5G technologies in its mobile devices, including its Galaxy smartphones, watches and tablets. The parties are conducting discovery.
Removed
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 then pending at the Patent Trial and Appeal Board (PTAB) and appeals to the U.S. District Court of Appeals for the Federal Circuit.
Added
Patent No. 11,128,305, and U.S. Patent No. 11,575,381. All such patents are part of our HFT Patent Portfolio. In the Citadel action, on April 7, 2025, the defendant Citadel filed a motion to dismiss under 35 U.S.C. § 101, asserting that the asserted patents are directed to patent-ineligible subject matter.
Removed
Pursuant to a joint stipulation and order, 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. The consolidated actions proceeded and discovery was subsequently completed.
Added
On December 1, 2025, the Court denied Citadel’s motion to dismiss. On January 5, 2026, Citadel filed its answer asserting defenses of non-infringement, patent invalidity and counterclaims for the same. In the Jump Trading action, on April 7, 2025, defendant filed an answer and counterclaims of non-infringement and invalidity of the asserted patents.
Removed
On April 24, 2024, following a motion for summary judgment by the defendants, the U.S.
Added
On September 8, 2025, we commenced patent litigation on behalf of HFT against Optiver US LLC and Optiver Trading US LLC in the U.S. District Court for the Western District of Texas, also for infringement of U.S. Patent No. 10,931,286, U.S. Patent No.11,128,305 and U. S. No.11,575,381.
Removed
Court of Appeals for the Federal Circuit and the appeal is pending. -20- Remote Power Patent Litigation In October and November 2022, we initiated nine separate litigations against ten defendants for infringement of our Remote Power Patent seeking monetary damages based upon reasonable royalties, as follows: (i) on October 6, 2022, we 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, we 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, we 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, we initiated such litigation against Antaira Technologies, LLC and Dahua Technology USA in the United States District Court for the Central District of California.
Added
On November 21, 2025, the Optiver defendants filed their answer and counterclaims of non-infringement and invalidity of the asserted patents. A trial date has been scheduled for June 7, 2027. Cox Patent Portfolio Litigation On April 4, 2014 and December 3, 2014, we initiated litigation against Google Inc. (“Google”) and YouTube, LLC (“YouTube”) in the U.S.
Removed
During the year ended December 31, 2023, we entered into settlement agreements with eight of the defendants resulting in aggregate settlement payments to us of $2,601,000 and a conditional payment of $150,000. On February 21, 2025, we received the conditional payment of $150,000 from a defendant as the conditions were satisfied in accordance with the settlement agreement.
Added
A decision on the appeal is pending. -19- Remote Power Patent Litigation On February 21, 2025, we received an additional settlement payment of $150,000 from a defendant in litigation involving the Company’s Remote Power Patent as a result of satisfaction of certain conditions in the settlement agreement.
Removed
During the year ended December 31, 2024, we entered into a settlement agreement with one additional defendant resulting in a settlement payment to us of $100,000. On January 14, 2025, the U.S. District Court for the District of Delaware granted Ubiquiti’s partial motion for summary judgment on indirect infringement.
Removed
On February 13, 2025, the Court granted the parties joint motion to dismiss the litigation. Mirror Worlds Patent Portfolio Litigation On May 9, 2017, Mirror Worlds Technologies, LLC, our 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.
Removed
Patent No. 6,006,227, U.S. Patent No. 7,865,538 and U.S. Patent No. 8,255,439 (among the patents within our Mirror Worlds Patent Portfolio). The lawsuit alleges that the asserted patents are infringed by Meta’s core technologies that enable Meta’s Newsfeed and Timeline features. We seek, among other things, monetary damages based upon reasonable royalties. On August 11, 2018, the U.S.
Removed
District Court for the Southern District of New York District Court issued an order granting Meta’s motion for summary judgment of non-infringement and dismissed the case. On January 23, 2020, the U.S.
Removed
Court of Appeals for the Federal Circuit ruled in our favor and reversed the summary judgment finding on non-infringement of the District Court and remanded the litigation to the Southern District of New York for further proceedings. -21- On March 7, 2022, the U.S.
Removed
District Court for the Southern District of New York entered a ruling granting in part and denying in part a motion for summary judgment by Meta.
Removed
In its ruling, the District 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.
Removed
On April 4, 2022, we filed an appeal of the District Court decision to the U.S. Court of Appeals for the Federal Circuit. On December 4, 2024, the U.S. Court of Appeals for the Federal Circuit affirmed the judgment of the District Court granting Meta’s motion for summary judgment of non-infringement dismissing our claims against Meta.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeOur Share Repurchase Program may be increased, suspended or discontinued at any time. -23- During the months of October, November and December 2024, we repurchased 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 October 1, 2024 to October 31, 2024 142,274 $1.35 142,274 $3,120,855 November 1, 2024 to November 30, 2024 12,653 $1.32 12,653 $3,104,155 December 1, 2024 to December 31, 2024 1,449 $1.30 1,449 $3,102,266 Total 156,376 $1.35 156,376 During the year ended December 31, 2024, we repurchased an aggregate of 733,436 shares of our common stock pursuant to our Share Repurchase Program at a cost of $1,270,438 (exclusive of commissions) or an average price per share of $1.73.
Biggest changeOur Share Repurchase Program may be increased, suspended or discontinued at any time. -21- During the months of October, November and December 2025, we repurchased 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 October 1, 2025 to October 31, 2025 932 $1.50 932 $4,915,030 November 1, 2025 to November 30, 205 3,152 $1.46 3,152 $4,910,431 December 1, 2025 to December 31, 2025 __ __ __ $4,910,431 Total 4,084 $1.47 4,084 During the year ended December 31, 2025, we repurchased an aggregate of 212,262 shares of our common stock pursuant to our Share Repurchase Program at a cost of $286,617 (exclusive of commissions) or an average price per share of $1.35.
Number of securities to be issued upon exercise of outstanding options and rights Weighted-average exercise price of outstanding options and rights Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column(a)) (a) (b) (c) Equity compensation plans approved by security holders 487,500 (1) $ — (2) 2,110,000 (3) Equity compensation plans not approved by security holders $ — $ — — Total 487,500 $ — 2,110,000 ___________________ (1) Consists of shares issuable upon vesting of outstanding restricted stock units issued under the 2022 Stock Incentive Plan and the 2013 Stock Incentive Plan.
Number of securities to be issued upon exercise of outstanding options and rights Weighted-average exercise price of outstanding options and rights Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column(a)) (a) (b) (c) Equity compensation plans approved by security holders 512,500 (1) $ — (2) 2,005,000 (3) Equity compensation plans not approved by security holders $ — $ — — Total 512,500 $ — 2,005,000 _________________________ (1) Consists of shares issuable upon vesting of outstanding restricted stock units issued under the 2022 Stock Incentive Plan and the 2013 Stock Incentive Plan.
Purchases under the 10b5-1 Plan may be made during the following periods: (1) beginning on January 2, 2025 until two trading days after we issue a press release announcing our financial results for the year ended December 31, 2024, and (2) beginning on April 1, 2025 until two trading days after we issue a press release announcing our financial results for the quarter ended March 31, 2025.
Purchases under the 10b5-1 Plan may be made during the following periods: (1) beginning on January 12, 2026 until two trading days after we issue a press release announcing our financial results for the year ended December 31, 2025, and (2) beginning on April 1, 2026 until two trading days after we issue a press release announcing our financial results for the quarter ended March 31, 2026.
However, our dividend policy undergoes a periodic review by our Board of Directors and is subject to change at any time depending upon our earnings, financial requirements and other factors existing at the time. As of December 31, 2024, we had accrued dividends of $121,000 for unvested restricted stock units with dividend equivalent rights. Recent Issuances of Unregistered Securities .
However, our dividend policy undergoes a periodic review by our Board of Directors and is subject to change at any time depending upon our earnings, financial requirements and other factors existing at the time. As of December 31, 2025, we had accrued dividends of $161,000 for unvested restricted stock units with dividend equivalent rights. Recent Issuances of Unregistered Securities .
Under the 10b5-1 Plan, our third party broker may purchase up to 1,000,000 shares of our 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. -24- Equity Compensation Plan Information The following table summarizes share and exercise price information for our equity compensation plans as of December 31, 2024.
Under the 10b5-1 Plan, our third-party broker may purchase up to 1,000,000 shares of our 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. -22- Equity Compensation Plan Information The following table summarizes share and exercise price information for our equity compensation plans as of December 31, 2025.
Awards under the 2022 Plan may be granted to our employees, directors and consultants. As of December 31, 2024, there were 62,500 shares issuable upon vesting of outstanding restricted stock units under our 2022 Plan and 425,000 shares issuable upon vesting outstanding restricted stock units under our 2013 Stock Incentive Plan (“2013 Plan”).
Awards under the 2022 Plan may be granted to our employees, directors and consultants. As of December 31, 2025, there were 87,500 shares issuable upon vesting of outstanding restricted stock units under our 2022 Plan and 425,000 shares issuable upon vesting outstanding restricted stock units under our 2013 Stock Incentive Plan (“2013 Plan”).
There were no unregistered sales of equity securities during the quarter ended December 31, 2024. Stock Repurchases. On June 14, 2023, our Board of Directors authorized an extension and increase of our share repurchase program (“Share Repurchase Program”) to repurchase up to $5,000,000 of shares of our common stock over the subsequent 24 month period.
There were no unregistered sales of equity securities during the quarter ended December 31, 2025. Stock Repurchases. On June 17, 2025, our Board of Directors authorized an extension and increase of our share repurchase program (“Share Repurchase Program”) to repurchase up to $5,000,000 of shares of our common stock over the subsequent 24 month period.
On February 19, 2025, our Board of Directors declared a semi-annual cash dividend of $0.05 per share with a payment date of March 28, 2025 to all common shareholders of record as of March 14 , 2025. At this time, we anticipate continuing to pay dividends consistent with our policy.
On September 5, 2025, our Board of Directors declared a semi-annual cash dividend of $0.05 per share with a payment date of September 29, 2025 to all common shareholders of record as of September 19, 2025. At this time, we anticipate continuing to pay dividends consistent with our policy.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information . Our common stock is listed for trading on the NYSE American exchange under the symbol “NTIP”. On February 24 , 2025, the closing price for our common stock as reported on the NYSE American exchange was $1.38 per share.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information . Our common stock is listed for trading on the NYSE American exchange under the symbol “NTIP”. On March 9 , 2026, the closing price for our common stock as reported on the NYSE American exchange was $1.48 per share.
On December 23, 2024, we entered into a written trading plan (the “10b5-1 Plan”) under Rule 10b5-1 of the Securities Exchange Act of 1934 (the” Exchange Act”).
Effective December 24, 2025, we entered into a written trading plan (the “10b5-1 Plan”) under Rule 10b5-1 of the Securities Exchange Act of 1934 (the” Exchange Act”).
On February 23, 2024, our Board of Directors declared a semi-annual cash dividend of $0.05 per share with a payment date of March 29, 2024 to all common shareholders of record as of March 15, 2024.
On February 19, 2025, our Board of Directors declared a semi-annual cash dividend of $0.05 per share with a payment date of March 28, 2025 to all common shareholders of record as of March 14 , 2025.
The number of record holders of our common stock was 36 as of February 24, 2025. In addition, we believe there were in excess of approximately 1200 holders of our common stock in “street name” as of February 24, 2025. Dividend Policy .
The number of record holders of our common stock was 36 as of March 9, 2026. In addition, we believe there were in excess of approximately 1,100 holders of our common stock in “street name” as of March 9, 2026. Dividend Policy .
Since the inception of our Share Repurchase Program (August 2011) to December 31, 2024, we have repurchased an aggregate of 10,374,232 shares of our common stock at a cost of $19,983,354 (exclusive of commissions) or an average per share price of $1.93.
Since the inception of our Share Repurchase Program (August 2011) to December 31, 2025, we have repurchased an aggregate of 10,586,494 shares of our common stock at a cost of $20,269,971 (exclusive of commissions) or an average per share price of $1.91.
Removed
On August 27 , 2024, our Board of Directors declared a semi-annual cash dividend of $0.05 per share with a payment date of September 26, 2024 to all common shareholders of record as of September 12, 2024.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

26 edited+10 added−10 removed10 unchanged
Biggest changeWe presently own one hundred and six (106) U.S. patents and sixteen (16) foreign patents relating to: (i) 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; (ii) 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; (iii) 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; (iv) 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 ; and (v) our Mirror Worlds Patent Portfolio relating to foundational technologies that enable unified search and indexing, displaying and archiving of documents in a computer system.
Biggest changeWe presently own one hundred nineteen (119) U.S. patents, fifty-four (54) of which have expired, and fifteen (15) foreign patents (unexpired) relating to: (i) 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; (ii) 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; (iii) 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; (iv) our Smart Home Patent Portfolio relating to, among other things, the enabling technology to support the interoperability of smart home IT devices; (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 ; and (vi) our Mirror Worlds Patent Portfolio relating to foundational technologies that enable unified search and indexing, displaying and archiving of documents in a computer system.
Both such components of expenses are based on a percentage of the revenue received by us as a result of litigation or otherwise. -27- 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.
Both such components of expenses are based on a percentage of the revenue received by us as a result of litigation or otherwise. -25- 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.
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 judgments, see Note B to our consolidated financial statements included herein. -31-
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 judgments, see Note B to our consolidated financial statements included herein. -28-
Our current dividend policy consists of semi-annual cash dividends of $0.05 per share ($0.10 per share annually) which have been paid in March and September of each year. In 2024 and 2023, we paid semi-annual cash dividends in accordance with our dividend policy. At this time, we anticipate continuing to pay dividends consistent with our policy.
Our current dividend policy consists of semi-annual cash dividends of $0.05 per share ($0.10 per share annually) which have been paid in March and September of each year. To date, we have paid semi-annual cash dividends in accordance with our dividend policy. At this time, we anticipate continuing to pay dividends consistent with our policy.
In 2025 and future years we could be classified as a Personal Holding Company.
In 2026 and future years we could be classified as a Personal Holding Company.
At December 31, 2024, our principal sources of liquidity consisted of cash and cash equivalents and marketable securities of $40,600,000 and working capital of $40,066,000 . 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.
At December 31, 2025, our principal sources of liquidity consisted of cash and cash equivalents and marketable securities of $36,869,000 and working capital of $36,336,000 . 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.
At December 31, 2024, our principal sources of liquidity consisted of cash and cash equivalents and marketable securities of $40,600,000 and working capital of $40,066,000 . Based on our cash position, we review opportunities to acquire additional intellectual property as well as evaluate other strategic opportunities.
At December 31, 2025, our principal sources of liquidity consisted of cash and cash equivalents and marketable securities of $36,869,000 and working capital of $36,336,000 . Based on our cash position, we review opportunities to acquire additional intellectual property as well as evaluate other strategic opportunities.
CONTRACTUAL OBLIGATIONS We do not have any long-term debt, capital lease obligations, purchase obligations or other long-term liabilities.
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.
Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Annual Report on Form 10-K, particularly in the “Risk Factors” Section on pages 10 – 18 hereof.
Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Annual Report on Form 10-K, particularly in the “Risk Factors” Section on pages 9-18 hereof. OVERVIEW Our principal business is the development, licensing and protection of our intellectual property assets.
However, our dividend policy undergoes a periodic review by our Board of Directors and is subject to change at any time depending upon our financial requirements, earnings and other factors existing at the time (see Note N to our consolidated financial statements included herein). -28- RESULTS OF OPERATIONS Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 Revenue .
However, our dividend policy undergoes a periodic review by our Board of Directors and is subject to change at any time depending upon our financial requirements, earnings and other factors existing at the time (see Note N to our consolidated financial statements included herein).
We may not achieve successful outcomes of such litigation, the appeal, or future 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 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.
As a result of the foregoing, we realized a net loss of $3,034,000 or $0.13 per share basic and diluted for 2024 compared with a net loss of $1,457,000 or $0.06 per share basic and diluted for 2023.
As a result of the foregoing, we realized a net loss of $2,420,000 or $0.11 per share basic and diluted for 2025 compared with a net loss of $3,034,000 or $0.13 per share basic and diluted for 2024.
We recognized $1,912,000 of net losses during 2024 related to our equity share of ILiAD net losses, as compared to recognized net losses of $2,003,000 for 2023 (see Note H to our consolidated financial statements included herein). We anticipate continuing to record our share of net losses from ILiAD. Net Loss .
We recognized $1,603,000 of net losses during 2025 related to our equity share of ILiAD net losses, as compared to recognized net losses of $1,912,000 for 2024 (see Note H to our consolidated financial statements included herein). Net Loss .
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 $4,784,000 at December 31,2024 to $40,600,000 as compared to working capital of $44,850,000 at December 31, 2023.
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 $3,730,000 at December 31, 2025 to $36,336,000 as compared to working capital of $40,066,000 at December 31, 2024.
For 2024, we recorded realized and unrealized gains on marketable securities of $177,000 as compared to realized and unrealized gains on marketable securities of $525,000 in 2023, primarily due to the timing of maturities on marketable securities and the declines in yields on our fixed income holdings. Income Taxes .
For 2025, we recorded realized and unrealized gains on marketable securities of $277,000 as compared to realized and unrealized gains on marketable securities of $177,000 in 2024, primarily due to increased unrealized gains of $150,000 in 2025. Income Taxes .
We maintain our cash equivalents and marketable securities in money market funds, government securities, certificates of deposit, corporate bonds and short-term fixed income securities. Accordingly, we do not believe that our investments have significant exposure to interest rate risk. -30- OFF-BALANCE SHEET ARRANGEMENTS We do not have any off-balance sheet arrangements.
The decrease of $1,128,000 in 2025 primarily resulted from a decrease in repurchases of common shares of $1,002,000. We maintain our cash in money market funds, government securities, certificates of deposit, corporate bonds and short-term fixed income securities. Accordingly, we do not believe that our investments have significant exposure to interest rate risk.
We had revenue of $100,000 for the year ended December 31, 2024 (“2024”) as compared to revenue of $2,601,000 for the year ended December 31, 2023 (“2023”). All of our revenue for 2024 and 2023 was from litigation settlements involving our Remote Power Patent (see Note K[4] to our consolidated financial statements included herein). Operating Expenses .
All of our revenue for 2025 and 2024 was from litigation settlements involving our Remote Power Patent (see Note K[5] to our consolidated financial statements included herein). Operating Expenses . Operating expenses for 2025 were $3,456,000 as compared to $3,721,000 for 2024.
Our net loss for 2024 increased by $1,577,000 as compared to 2023 primarily due to lower revenue from patent litigation settlements in 2024 of $2,501,000. -29- LIQUIDITY AND CAPITAL RESOURCES We have financed our operations primarily from revenue from licensing our patents.
Our net loss for 2025 decreased by $614,000 as compared to 2024 primarily due a decrease in 2025 of our operating loss of $315,000 and our recognized share of net losses of ILiAD of $309,000. LIQUIDITY AND CAPITAL RESOURCES We have financed our operations primarily from revenue from licensing our patents.
The decrease in general and administrative expenses for 2024 was primarily due to lower payroll and related employer taxes of $159,000 and stock-based compensation of $109,000. Operating Loss. We had an operating loss of $3,621,000 for 2024 compared with an operating loss of $2,235,000 for 2023.
The decrease in general and administrative expenses of $129,000 for 2025 was primarily due to decreased stock-based compensation of $92,000 and state franchise taxes of $59,000 offset by increased executive compensation of $45,000 and consulting fees of $20,000. Operating Loss. We had an operating loss of $3,306,000 for 2025 compared with an operating loss of $3,621,000 for 2024.
In addition, we have pending litigation involving certain patents within our HFT Patent Portfolio and have appealed the judgment of the District Court dismissing our litigation against Google and YouTube on the grounds of non-infringement involving certain patents within our Cox Patent Portfolio. In addition, we intend to monetize our M2M/IoT Patent Portfolio.
If we are unable to successfully monetize such patent portfolios or achieve a successful outcome of our investment in ILiAD, our business, financial condition and results of operations will be negatively impacted. -24- We have pending litigation involving certain patents within our M2M/IoT Patent Portfolio and HFT Patent Portfolio and have appealed the judgment of the District Court dismissing our litigation against Google and YouTube on the grounds of non-infringement involving certain patents within our Cox Patent Portfolio (see “Legal Proceedings” at pages 19-20 hereof).
Operating expenses for 2024 were $3,721,000 as compared to $4,836,000 for 2023. The decrease in operating expenses of $1,115,000 was primarily due to lower costs of revenue of $846,000, general and administrative of $275,000 and amortization of patents of $146,000. These reductions were offset somewhat due to higher professional fees of $152,000.
The decrease in operating expenses of $265,000 was primarily due to decreased professional fees and related costs of $171,000 and decreased general and administrative expenses of $129,000. Professional fees and related costs were $788,000 for 2025 as compared to $959,000 for 2024.
For 2024, we had no current tax expense for federal, state and local income taxes and a deferred tax benefit of $425,000 . For 2023, we had a current income tax for federal, state and local income taxes of $11,000 and a deferred tax benefit of $399,000. Share of Net Losses of Equity Method Investee .
For 2025, we realized a $31,000 current income tax benefit related to a federal income tax refund, as compared to no current income tax expense for 2024. We had a deferred tax benefit of $337,000 and $425,000 for 2025 and 2024, respectively.
Our Remote Power Patent has generated revenue in excess of $188,000,000 from May 2007 through December 31, 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).
In the past, we have been dependent upon our Remote Power Patent for a significant portion of our revenue. Our Remote Power Patent generated revenue in excess of $188,000,000 from May 2007 through December 31, 2025. During the year ended December 31, 2025 and 2024, our Remote Power Patent generated all of our revenue.
The operating loss increase of $1,386,000 was primarily due to lower revenue from patent litigation settlements in 2024 of $2,501,000 as compared to 2023 . Realized and Unrealized Loss on Marketable Securities.
The operating loss decrease of $315,000 was primarily due to increased revenue of $50,000 and decreased operating expenses of $265,000. Realized and Unrealized Loss on Marketable Securities.
To date we have invested $7,000,000 in ILiAD, a clinical stage biotechnology company with an exclusive license to seventy-four (74) patents (see Note H to our consolidated financial statements included herein). Our investment continues to involve significant risk and the outcome is uncertain. -26- We have been dependent upon our Remote Power Patent for a significant portion of our revenue.
To date we have invested $7,000,000 in ILiAD, a clinical stage biotechnology company dedicated to the prevention and treatment of human disease caused by Bordetella pertussis with a focus on validating its proprietary intranasal vaccine, BPZE1, for the prevention of pertussis (see Note H to our consolidated financial statements included herein).
Net cash used in investing activities during 2024 decreased by $5,488,000 as a result of our holdings of marketable securities declining by $1,049,000 in 2024 as compared to $6,537,000 in 2023. Net cash used in financing activities for 2024 and 2023 was $3,724,000 and $3,420,000, respectively. The increase of $304,000 primarily resulted from higher repurchases of common shares of $329,000.
Net cash provided by investing activities during 2025 increased by $2,673,000 as a result of increased sales of marketable securities of $907,000 and decreased purchases of marketable securities of $2,181,000, offset by the acquisition of patents of $415,000. Net cash used in financing activities for 2025 and 2024 was $2,596,000 and $3,724,000, respectively.
Removed
OVERVIEW Our principal business is the development, licensing and protection of our intellectual property assets.
Added
We no longer intend to enforce our Remote Power Patent as the patent has expired. Our future revenue is dependent on our ability to monetize our M2M/ IOT Patent Portfolio, HFT Patent Portfolio, Cox Patent Portfolio (if we are successful on our appeal to the Federal Circuit) and Smart Home Patent Portfolio.
Removed
With respect to our one hundred and six (106) 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.
Added
We may not achieve successful outcomes of such litigation, the appeal, or future litigation involving our patent assets.
Removed
In 2024, our revenue was from our expired Remote Power Patent and we are currently appealing to the Federal Circuit a District Court dismissal of claims involving certain expired patents within our Cox Patent Portfolio (see Note K to our consolidated financial statements included herein). Our revenue is dependent upon our ability to achieve successful litigation outcomes.
Added
On February 5, 2026, ILiAD completed a $115,000,000 preferred stock financing. As part of the financing, ILIAD converted from a limited liability company to a corporation.
Removed
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. During 2024, we entered into a settlement agreement with one defendant for which we received $100,000. Such settlement payment constituted all of our revenue for 2024.
Added
The financing was led by RA Capital Management with participation from new investors Janus Henderson Investors and BNP Paribas Asset Management Alts, as well as existing investors including a multi-national pharmaceutical company and AI Life Sciences.
Removed
During 2023, we entered into settlement agreements with eight of the defendants with respect to the aforementioned litigation resulting in aggregate settlement payments made to us of $2,601,000 and a future conditional payment of $150,000 (see Note K to our consolidated financial statements included herein). All of our revenue for 2023 was from these settlements involving our Remote Power Patent.
Added
As a result of the financing, the Company’s percentage ownership of ILiAD was reduced to approximately 3.1% on a non-fully diluted basis and approximately 2.5% on a fully diluted basis.
Removed
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.
Added
As a result of the closing of the financing and the conversion to a corporation, we will no longer account for our investment in ILiAD using the equity method of accounting and will use the fair value method of accounting (see Note O of our consolidated financial statements included herein).
Removed
We had costs of revenue of $28,000 and $874,000 for 2024 and 2023, respectively. Included in the costs of revenue for 2024 were contingent legal fees of $23,000 and incentive bonus compensation of $5,000 payable to our Chairman and Chief Executive Officer.
Added
RESULTS OF OPERATIONS Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 Revenue . We had revenue of $150,000 for the year ended December 31, 2025 (“2025”) as compared to revenue of $100,000 for the year ended December 31, 2024 (“2024”).
Removed
Included in the costs of revenue for 2023 were contingent legal fees of $744,000 and incentive bonus compensation of $130,000 payable to our Chairman and Chief Executive Officer pursuant to his employment Agreement (see Note J [1] to our consolidated financial statement included herein). General and administrative expenses were $2,614,000 for 2024 as compared to $2,889,000 for 2023.
Added
The decrease in professional fees and related costs of $171,000 in 2025 was primarily due to one-time settlement costs in 2024 of $205,000. This decrease was offset somewhat by higher legal fees related to patents and patent litigation of $53,000. -26- General and administrative expenses were $2,485,000 for 2025 as compared to $2,614,000 for 2024.
Removed
The decrease in working capital in 2024 was primarily due to our operating loss of $3,621,000, cash dividends payments of $2,366,000 and share repurchases of $1,295,000, offset by interest and dividend income of $1,897,000.
Added
The decrease in our deferred tax benefit was primarily due to a decrease of $309,000 in net losses of ILiAD recognized in 2025. Share of Net Losses of Equity Method Investee .
Removed
Net cash used in operating activities for 2024 increased by $1,407,000 from $1,076,000 used in operating activities for 2024 compared to $331,000 provided by operating activities for 2023, primarily because of the increase in our net loss of $1,577,000.
Added
The decrease in working capital in 2025 was primarily due to our operating loss of $2,999,000 (which excludes $307,000 of non-cash stock-based compensation), cash dividend payments of $2,296,000, the acquisition of patents of $415,000 and share repurchases of $293,000, offset by interest and dividend income of $1,844,000 and net realized and unrealized gains on marketable securities of $277,000. -27- Net cash used in operating activities for 2025 decreased by $207,000 from $1,076,000 used in operating activities for 2024 compared to $869,000 used in operating activities for 2025, primarily because of decreased net loss of $614,000 and a decrease in uses of operating assets and liabilities, offset somewhat by a decreased share of net loss of equity investee of $309,000 and an increased unrealized gain of $216,000.

Other NTIP 10-K year-over-year comparisons