2022 Q3 Form 10-Q Financial Statement

#000107261322000514 Filed on August 15, 2022

View on sec.gov

Income Statement

Concept 2022 Q3 2022 Q2 2022 Q1
Revenue
YoY Change
Cost Of Revenue $0.00 $0.00
YoY Change -100.0%
Gross Profit $0.00 $0.00 $0.00
YoY Change -100.0% -100.0%
Gross Profit Margin
Selling, General & Admin $756.0K $758.0K $822.0K
YoY Change -40.89% -8.45% -11.33%
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $82.00K $76.00K $75.00K
YoY Change 10.81% 4.11% 1.35%
% of Gross Profit
Operating Expenses $838.0K $834.0K $897.0K
YoY Change -38.06% -7.44% -10.39%
Operating Profit -$838.0K -$834.0K -$897.0K
YoY Change -109.27% -7.44% -107.31%
Interest Expense $3.780M -$445.0K -$434.0K
YoY Change 13900.0% -480.34% -10950.0%
% of Operating Profit
Other Income/Expense, Net $4.051M -$445.0K -$434.0K
YoY Change 14903.7% -480.34%
Pretax Income $3.213M -$1.279M -$1.331M
YoY Change -64.55% 63.14% -110.84%
Income Tax $702.0K -$102.0K -$452.0K
% Of Pretax Income 21.85%
Net Earnings $2.226M -$1.532M -$1.312M
YoY Change -66.22% 95.66% -113.88%
Net Earnings / Revenue
Basic Earnings Per Share $0.09 -$0.06 -$0.05
Diluted Earnings Per Share $0.09 -$0.06 -$54.87K
COMMON SHARES
Basic Shares Outstanding 23.77M shares 23.85M shares 23.91M shares
Diluted Shares Outstanding 24.07M shares 23.85M shares 23.91M shares

Balance Sheet

Concept 2022 Q3 2022 Q2 2022 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $48.92M $52.13M $56.54M
YoY Change -19.59% -3.07% 36.98%
Cash & Equivalents $21.16M $25.53M $42.46M
Short-Term Investments $27.76M $26.59M $14.08M
Other Short-Term Assets $108.0K $239.0K $111.0K
YoY Change 315.38% 312.07% 26.14%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $49.37M $52.36M $56.65M
YoY Change -18.89% -2.73% -5.67%
LONG-TERM ASSETS
Property, Plant & Equipment $177.0K $194.0K
YoY Change
Goodwill $5.000M
YoY Change
Intangibles
YoY Change
Long-Term Investments $7.661M $1.863M $3.218M
YoY Change 90.67% -55.69% -27.52%
Other Assets $13.00K $13.00K $13.00K
YoY Change 0.0% 0.0% 0.0%
Total Long-Term Assets $9.526M $4.827M $5.064M
YoY Change 73.99% -15.54% -15.1%
TOTAL ASSETS
Total Short-Term Assets $49.37M $52.36M $56.65M
Total Long-Term Assets $9.526M $4.827M $5.064M
Total Assets $58.89M $57.19M $61.71M
YoY Change -11.23% -3.96% -6.52%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $348.0K $527.0K $490.0K
YoY Change -12.78% 32.75% 34.99%
Accrued Expenses $460.0K $427.0K $569.0K
YoY Change 155.56% -61.7% -91.28%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $812.0K $1.073M $4.011M
YoY Change -77.54% -51.71% -48.44%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $111.0K $128.0K
YoY Change
Total Long-Term Liabilities $111.0K $128.0K $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $812.0K $1.073M $4.011M
Total Long-Term Liabilities $111.0K $128.0K $0.00
Total Liabilities $1.899M $1.201M $4.113M
YoY Change -55.79% -59.14% -51.89%
SHAREHOLDERS EQUITY
Retained Earnings -$9.996M -$10.83M
YoY Change
Common Stock $237.0K $238.0K
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $56.99M $55.99M $57.60M
YoY Change
Total Liabilities & Shareholders Equity $58.89M $57.19M $61.71M
YoY Change -11.23% -3.96% -6.52%

Cashflow Statement

Concept 2022 Q3 2022 Q2 2022 Q1
OPERATING ACTIVITIES
Net Income $2.226M -$1.532M -$1.312M
YoY Change -66.22% 95.66% -113.88%
Depreciation, Depletion And Amortization $82.00K $76.00K $75.00K
YoY Change 10.81% 4.11% 1.35%
Cash From Operating Activities -$572.0K -$3.859M -$749.0K
YoY Change -106.87% -130.52% -45.53%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $0.00 -$524.0K
YoY Change -100.0% -100.0% 6450.0%
Acquisitions
YoY Change
Other Investing Activities -$2.435M -$12.82M $537.0K
YoY Change -18.43% -618.24% -55.47%
Cash From Investing Activities -$2.435M -$12.82M $13.00K
YoY Change -18.94% -630.9% -98.91%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.361M -252.0K -1.302M
YoY Change 13.04% 92.37% 7.96%
NET CHANGE
Cash From Operating Activities -572.0K -3.859M -749.0K
Cash From Investing Activities -2.435M -12.82M 13.00K
Cash From Financing Activities -1.361M -252.0K -1.302M
Net Change In Cash -4.368M -16.93M -2.038M
YoY Change -205.94% -213.39% 47.36%
FREE CASH FLOW
Cash From Operating Activities -$572.0K -$3.859M -$749.0K
Capital Expenditures $0.00 $0.00 -$524.0K
Free Cash Flow -$572.0K -$3.859M -$225.0K
YoY Change -106.85% -130.38% -83.54%

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us-gaap Gain Contingency Patents Found Infringed Upon Number
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us-gaap Use Of Estimates
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<p id="xdx_845_eus-gaap--UseOfEstimates_z1pNwrWDoHD2" style="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top"> <td style="width: 0"/><td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>[1]</b></span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_863_zIzXQUk1gTa5">Use of Estimates and Assumptions</span></b></span></td></tr></table> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. The significant estimates and assumptions made in the preparation of the Company’s unaudited condensed consolidated financial statements include legal fees and related costs, income taxes, valuation of patents and equity method investments, including evaluation of the Company’s basis difference. Actual results could be materially different from those estimates, upon which the carrying values were based.</span></p>
CY2022Q2 us-gaap Cash Fdic Insured Amount
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224000 usd
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CY2022Q1 nssi Greater Than50 Million
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FiniteLivedIntangibleAssetsGross
8473000 usd
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328000 usd
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917000 usd
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CY2022Q2 nssi Over250 Million
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CY2021Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares
12500 shares
CY2021Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue
3.36
us-gaap Stock Issued During Period Shares Restricted Stock Award Gross
StockIssuedDuringPeriodSharesRestrictedStockAwardGross
670000 shares
nssi Issuance Weightedaverage Grant Date Fair Value
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1.92
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares
22500 shares
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue
2.55
CY2022Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares
660000 shares
CY2022Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue
1.93
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
1160000 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
685000 shares
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23864053 shares
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WeightedAverageNumberOfSharesOutstandingBasic
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CY2022Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
23854438 shares
CY2021Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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us-gaap Incremental Common Shares Attributable To Call Options And Warrants
IncrementalCommonSharesAttributableToCallOptionsAndWarrants
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nssi Weightedaverage Common Shares Outstanding Diluted
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CY2022Q2 nssi Weightedaverage Common Shares Outstanding Diluted
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CY2021Q2 nssi Weightedaverage Common Shares Outstanding Diluted
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CY2022Q2 nssi Options And Warrants Excluded From Computation Of Diluted Income Loss Per Share Because Effect Of Inclusion Would Have Been Antidilutive
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CY2021Q2 nssi Options And Warrants Excluded From Computation Of Diluted Income Loss Per Share Because Effect Of Inclusion Would Have Been Antidilutive
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685000 shares
CY2022Q1 nssi Hft Patent Acqusition Cash At Closing
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nssi Recognition Net Proceeds Payment Related To Mirror Worlds Patents
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CY2022Q2 nssi First100
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CY2022Q2 nssi Aadditional Consideration
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CY2022Q2 us-gaap Lessee Operating Lease Discount Rate
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CY2022Q2 us-gaap Lessee Operating Lease Remaining Lease Term
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CY2022Q2 us-gaap Short Term Lease Cost
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ShortTermLeaseCost
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ShortTermLeaseCost
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LeaseCost
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LeaseCost
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LeaseCost
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us-gaap Lease Cost
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CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
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CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Two
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CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Four
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CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
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CY2022Q2 nssi Operating Leases Imputed Interest
OperatingLeasesImputedInterest
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CY2022Q2 us-gaap Operating Lease Liability
OperatingLeaseLiability
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CY2022Q2 us-gaap Investments
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CY2022Q2 us-gaap Goodwill
Goodwill
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CY2022Q2 us-gaap Investments And Other Noncurrent Assets
InvestmentsAndOtherNoncurrentAssets
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CY2021Q2 nssi Stock Repurchase Program Dollar Amount That May Be Repurchased
StockRepurchaseProgramDollarAmountThatMayBeRepurchased
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us-gaap Weighted Average Number Of Shares Common Stock Subject To Repurchase Or Cancellation
WeightedAverageNumberOfSharesCommonStockSubjectToRepurchaseOrCancellation
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us-gaap Payments For Repurchase Of Equity
PaymentsForRepurchaseOfEquity
17473100 usd
nssi Weighted Average Price Per Share Common Stock Subject To Repurchase
WeightedAveragePricePerShareCommonStockSubjectToRepurchase
1.92
CY2022Q2 us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
103080 shares
CY2022Q2 us-gaap Stock Repurchased During Period Value
StockRepurchasedDuringPeriodValue
247824 usd
CY2022Q2 us-gaap Treasury Stock Acquired Average Cost Per Share
TreasuryStockAcquiredAverageCostPerShare
2.40
CY2022Q2 nssi Value Of Remaining Shares That May Be Repurchased
ValueOfRemainingSharesThatMayBeRepurchased
3682905 usd
CY2022Q2 nssi Royalty Receivables
RoyaltyReceivables
0 usd
CY2021Q4 nssi Royalty Receivables
RoyaltyReceivables
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us-gaap Common Stock Dividends Per Share Declared
CommonStockDividendsPerShareDeclared
0.05

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