Network-1 (NTIP) 10-Q 12 Aug 21 2021 Q2 Quarterly report Financial data

Cover

Cover - $ / shares	Aug. 10, 2021	Jun. 30, 2021
Cover [Abstract]
Document Type		10-Q
Amendment Flag		false
Document Quarterly Report		true
Document Transition Report		false
Document Period End Date		Jun. 30, 2021
Document Fiscal Period Focus		Q2
Document Fiscal Year Focus		2021
Current Fiscal Year End Date		--12-31
Entity File Number		1-15288
Entity Registrant Name		NETWORK 1 TECHNOLOGIES, INC.
Entity Central Index Key		0001065078
Entity Tax Identification Number		11-3027591
Entity Incorporation, State or Country Code		DE
Entity Address, Address Line One		445 Park Avenue
Entity Address, Address Line Two		Suite 912
Entity Address, City or Town		New York
Entity Address, State or Province		NY
Entity Address, Postal Zip Code		10022
City Area Code		212
Local Phone Number		829-5770
Title of 12(b) Security		Common Stock, par value $0.01 per share
Trading Symbol		NTIP
Security Exchange Name		NYSEAMER
Entity Current Reporting Status		No
Entity Interactive Data Current		No
Entity Filer Category		Non-accelerated Filer
Entity Small Business		true
Entity Emerging Growth Company		false
Entity Shell Company		false
Entity Common Stock, Shares Outstanding	24,088,379
Entity Listing, Par Value Per Share	$ 0.01

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
CURRENT ASSETS:
Cash and cash equivalents	$ 39,050,000	$ 25,505,000
Marketable securities, at fair value	14,725,000	19,366,000
Royalty receivables
Other current assets	58,000	120,000
TOTAL CURRENT ASSETS	53,833,000	44,991,000
OTHER ASSETS:
Deferred tax assets, net		954,000
Patents, net of accumulated amortization	1,498,000	1,578,000
Equity investment	3,204,000	3,650,000
Convertible note investment	1,000,000
Security deposits	13,000	21,000
Total Other Assets	5,715,000	6,203,000
TOTAL ASSETS	59,548,000	51,194,000
CURRENT LIABILITIES:
Income taxes payable	710,000
Accounts payable	397,000	597,000
Accrued contingency fees and related costs	932,000	932,000
Accrued payroll		277,000
Other accrued expenses	183,000	226,000
Total Current Liabilities	2,222,000	2,032,000
LONG TERM LIABILITIES:
Deferred tax liability	717,000
TOTAL LIABILITIES	2,939,000	2,032,000
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value, authorized 10,000,000 shares; none issued and outstanding at June 30,2021 and December 31,2020
Common stock, $0.01 par value; authorized 50,000,000 shares; 24,088,379 and 24,105,879 shares issued and outstanding at June 30,2021 and December 31,2020,respectively	241,000	241,000
Additional paid-in capital	66,242,000	66,124,000
Accumulated deficit	(9,872,000)	(17,193,000)
Accumulated other comprehensive loss	(2,000)	(10,000)
TOTAL STOCKHOLDERS’ EQUITY	56,609,000	49,162,000
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 59,548,000	$ 51,194,000

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, par value	50,000,000	50,000,000
Common stock, shares issued	24,088,379	24,105,879
Common stock, shares outstanding	24,088,379	24,105,879

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
REVENUE	$ 0	$ 55,000	$ 18,692,000	$ 216,000
OPERATING EXPENSES:
Costs of revenue		20,000	5,420,000	52,000
Professional fees and related costs	308,000	124,000	663,000	523,000
General and administrative	461,000	459,000	974,000	945,000
Amortization of patents	73,000	72,000	147,000	144,000
Stock-based compensation	59,000	85,000	118,000	157,000
TOTAL OPERATING EXPENSES	901,000	760,000	7,322,000	1,821,000
OPERATING INCOME (LOSS)	(901,000)	(705,000)	11,370,000	(1,605,000)
OTHER INCOME:
Interest and dividend income, net	68,000	120,000	118,000	298,000
Net realized and unrealized gain (loss) on marketable securities	49,000	206,000	8,000	(116,000)
Total other income, net	117,000	326,000	126,000	182,000
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN NET LOSSES OF EQUITY METHOD INVESTEE	(784,000)	(379,000)	11,496,000	(1,423,000)
INCOME TAXES PROVISION (BENEFIT):
Current	(180,000)	(142,000)	710,000	(382,000)
Deferred taxes, net	(52,000)	142,000	1,672,000	382,000
Total income taxes provision (benefit)	(232,000)		2,382,000
INCOME (LOSS) BEFORE SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE:	(552,000)	(379,000)	9,114,000	(1,423,000)
SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE	(231,000)	(205,000)	(446,000)	(498,000)
NET INCOME (LOSS)	$ (783,000)	$ (584,000)	$ 8,668,000	$ (1,921,000)
Net Income (Loss) Per Share
Basic	$ (0.03)	$ (0.02)	$ 0.36	$ (0.08)
Diluted	$ (0.03)	$ (0.02)	$ 0.35	$ (0.08)
Weighted average common shares outstanding:
Basic	23,839,455	23,945,916	24,106,169	23,987,715
Diluted	23,839,455	23,945,916	24,878,257	23,987,715
Cash dividends declared per share			$ 0.05	$ 0.05
NET INCOME (LOSS)	$ (783,000)	$ (584,000)	$ 8,668,000	$ (1,921,000)
OTHER COMPREHENSIVE INCOME (LOSS)
Net unrealized holding gain (loss) on corporate bonds and notes during the period, net of tax	(3,000)	175,000	8,000	(8,000)
COMPREHENSIVE INCOME (LOSS)	$ (786,000)	$ (409,000)	$ 8,676,000	$ (1,929,000)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (UNAUDITED) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance – December 31, 2019 at Dec. 31, 2019	$ 240,000	$ 65,824,000	$ (12,636,000)	$ 79,000	$ 53,507,000
Shares, Issued, Beginning Balance at Dec. 31, 2019	24,036,071
Dividends and dividend equivalents declared			(1,221,000)		(1,221,000)
Stock-based compensation		72,000			72,000
Cashless exercise of stock options	$ 1,000				1,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	105,000
Shares delivered to fund stock option exercises	$ (1,000)				(1,000)
Shares delivered to fund stock option exercises, shares	(100,293)
Vesting of restricted stock units
Vesting of restricted stock units, shares	11,250
Treasury stock purchased and retired	$ (1,000)		(153,000)		(154,000)
Treasury stock purchased and retired, shares	(72,300)
Net other comprehensive income				(183,000)	(183,000)
Net loss			(1,337,000)		(1,337,000)
Balance – June 30, 2020 at Mar. 31, 2020	$ 239,000	65,896,000	(15,347,000)	(104,000)	50,684,000
Shares, Issued, Ending Balance at Mar. 31, 2020	23,979,728
Balance – December 31, 2019 at Dec. 31, 2019	$ 240,000	65,824,000	(12,636,000)	79,000	53,507,000
Shares, Issued, Beginning Balance at Dec. 31, 2019	24,036,071
Net loss					(1,921,000)
Balance – June 30, 2020 at Jun. 30, 2020	$ 239,000	65,981,000	(16,029,000)	71,000	50,262,000
Shares, Issued, Ending Balance at Jun. 30, 2020	23,947,389
Balance – December 31, 2019 at Mar. 31, 2020	$ 239,000	65,896,000	(15,347,000)	(104,000)	50,684,000
Shares, Issued, Beginning Balance at Mar. 31, 2020	23,979,728
Stock-based compensation		85,000			85,000
Vesting of restricted stock units
Vesting of restricted stock units, shares	11,250
Treasury stock purchased and retired			(98,000)		(98,000)
Treasury stock purchased and retired, shares	(43,589)
Net other comprehensive income				175,000	175,000
Net loss			(584,000)		(584,000)
Balance – June 30, 2020 at Jun. 30, 2020	$ 239,000	65,981,000	(16,029,000)	71,000	50,262,000
Shares, Issued, Ending Balance at Jun. 30, 2020	23,947,389
Balance – December 31, 2019 at Dec. 31, 2020	$ 241,000	66,124,000	(17,193,000)	(10,000)	49,162,000
Shares, Issued, Beginning Balance at Dec. 31, 2020	24,105,879
Dividends and dividend equivalents declared			(1,216,000)		(1,216,000)
Stock-based compensation		59,000			59,000
Vesting of restricted stock units
Vesting of restricted stock units, shares	11,250
Net other comprehensive income				11,000	11,000
Net loss			9,451,000		9,451,000
Balance – June 30, 2020 at Mar. 31, 2021	$ 241,000	66,183,000	(8,958,000)	1,000	57,467,000
Shares, Issued, Ending Balance at Mar. 31, 2021	24,117,129
Balance – December 31, 2019 at Dec. 31, 2020	$ 241,000	66,124,000	(17,193,000)	(10,000)	49,162,000
Shares, Issued, Beginning Balance at Dec. 31, 2020	24,105,879
Net loss					8,668,000
Balance – June 30, 2020 at Jun. 30, 2021	$ 241,000	66,242,000	(9,872,000)	(2,000)	56,609,000
Shares, Issued, Ending Balance at Jun. 30, 2021	24,088,379
Balance – December 31, 2019 at Mar. 31, 2021	$ 241,000	66,183,000	(8,958,000)	1,000	57,467,000
Shares, Issued, Beginning Balance at Mar. 31, 2021	24,117,129
Stock-based compensation		59,000			59,000
Vesting of restricted stock units
Vesting of restricted stock units, shares	11,250
Treasury stock purchased and retired			(131,000)		(131,000)
Treasury stock purchased and retired, shares	(40,000)
Net other comprehensive income				(3,000)	(3,000)
Other comprehensive income loss net of tax portion attributable to parent shares
Net loss			(783,000)		(783,000)
Balance – June 30, 2020 at Jun. 30, 2021	$ 241,000	$ 66,242,000	$ (9,872,000)	$ (2,000)	$ 56,609,000
Shares, Issued, Ending Balance at Jun. 30, 2021	24,088,379

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 8,668,000	$ (1,921,000)
Adjustments to reconcile income (loss) to net cash
Amortization of patents	147,000	144,000
Stock-based compensation	118,000	157,000
Loss from equity method investment	446,000	498,000
Unrealized gain on marketable securities	(29,000)	(1,000)
Amortization of right of use asset		41,000
Deferred tax expense	1,672,000
Changes in operating asset and liabilities:
Royalty receivables		215,000
Other current assets	62,000	48,000
Income taxes payable	710,000
Security deposit	8,000
Accounts payable	(200,000)	(384,000)
Operating lease obligations		(41,000)
Accrued expenses	(332,000)	(829,000)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	11,270,000	(2,073,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of marketable securities	9,020,000	13,169,000
Purchases of marketable securities	(4,341,000)	(11,209,000)
Development of patents	(67,000)	(39,000)
Convertible note investment	(1,000,000)
NET CASH PROVIDED BY INVESTING ACTIVITIES	3,612,000	1,921,000
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash dividends paid	(1,206,000)	(1,211,000)
Repurchases of common stock, inclusive of commissions	(131,000)	(252,000)
NET CASH USED IN FINANCING ACTIVITIES:	(1,337,000)	(1,463,000)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	13,545,000	(1,615,000)
CASH AND CASH EQUIVALENTS, beginning of period	25,505,000	22,587,000
CASH AND CASH EQUIVALENTS, end of period	39,050,000	20,972,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest
Income taxes
NON-CASH FINANCING ACTIVITY
Accrued dividend rights on restricted stock units	$ 10,000	$ 19,000

BASIS OF PRESENTATION AND NATUR

BASIS OF PRESENTATION AND NATURE OF BUSINESS	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
BASIS OF PRESENTATION AND NATURE OF BUSINESS	NOTE A – BASIS OF PRESENTATION AND NATURE OF BUSINESS [1] BASIS OF PRESENTATION The accompanying condensed consolidated financial statements are unaudited, but, in the opinion of the management of Network-1 Technologies, Inc. (the “Company”), contain all adjustments consisting only of normal recurring items which the Company considers necessary for the fair presentation of the Company’s financial position as of June 30, 2021, and the results of its operations and comprehensive income (loss) for the three and six month periods ended June 30, 2021 and June 30, 2020, changes in stockholders’ equity for the three and six month periods ended June 30, 2021 and June 30, 2020, and its cash flows for the six month period ended June 30, 2021 and June 30, 2020. The unaudited condensed consolidated financial statements included herein have been prepared in accordance with the accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with U.S. GAAP may have been omitted pursuant to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 31, 2021. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results of operations to be expected for the full year. The accompanying unaudited condensed consolidated financial statements include accounts of the Company and its wholly-owned subsidiary, Mirror Worlds Technologies, LLC. [2] BUSINESS The Company is engaged in the development, licensing and protection of its intellectual property assets. The Company presently owns eighty-seven ( 87 f a ti a t ec h l o i e t a e a l i f i e ea r c a i e x i i l a y i n a arc i i n c m e t i c m t e s y t e m; (iii) the Cox patent portfolio (the “Cox Patent Portfolio”) relating to enabling technology for identifying media content on the Internet and taking further actions to be performed based on such identification; and (iv) the M2M/IoT patent portfolio (the “M2M/IoT Patent Portfolio”) relating to, among other things, enabling technology for authenticating, provisioning and using embedded sim cards in next generation IoT, Machine-to-Machine, and other mobile devices, including smartphones, tablets and computers. Until March 7, 2020, when the Remote Power Patent expired, the Company had been actively engaged in licensing its Remote Power Patent (U.S. Patent No. 6,218,930). As a result of the expiration of the Remote Power Patent, the Company no longer receives licensing revenue for its Remote Power Patent for any period subsequent to the expiration date (March 7, 2020). However, subsequent to the expiration date of the Remote Power Patent, the Company has received and may continue to receive licensing revenue from certain licensees for periods prior to March 7, 2020. On March 30, 2021, the Company entered into an amendment (the “Amendment”) to the Settlement and License Agreement, dated May 25, 2011, between the Company and Cisco (the “Agreement”). Pursuant to the Amendment, Cisco paid $ 18,692,000 17,000,000 The Company’s current strategy includes continuing to pursue licensing opportunities for its intellectual property assets. In addition, the Company continually reviews opportunities to acquire or license additional intellectual property as well as other strategic alternatives. The Company’s patent acquisition and development strategy is to focus on acquiring high quality patents which management believes have the potential to generate significant licensing opportunities as the Company has achieved with respect to its Remote Power Patent and Mirror Worlds Patent Portfolio. In addition, the Company may also enter into strategic relationships with third parties to develop, commercialize, license or otherwise monetize their intellectual property.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [1] Use of Estimates and Assumptions The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. The significant estimates and assumptions made in the preparation of the Company’s unaudited condensed consolidated financial statements include revenue recognition, 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. [2] Cash and Cash Equivalents The Company maintains cash deposits in high quality financial institutions insured by the Federal Deposit Insurance Corporation 250,000 8,173,000 The Company considers all highly liquid short-term investments, including certificates of deposit and money market funds, that are purchased with an original maturity of three months or less to be cash equivalents. [3] Marketable Securities The Company’s marketable securities are comprised of certificates of deposit with original maturity greater than three months from date of purchase, fixed income mutual funds, and corporate bonds and notes. The Company’s marketable securities are measured at fair value and are accounted for in accordance with ASU 2016-01. Unrealized holding gains and losses on certificates of deposit and fixed income mutual funds are recorded in net realized and unrealized gain (loss) from investments on the unaudited condensed consolidated statements of operations and comprehensive loss. Unrealized holding gains and losses, net of the related tax effect, on corporate bonds and notes are excluded from earnings and are reported as a separate component of stockholders’ equity until realized. Dividend and interest income are recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of the marketable securities. [4] Revenue Recognition Under ASC 606, revenue is recognized when the Company completes the licensing of its intellectual property to its licensees, in an amount that reflects the consideration the Company expects to be entitled to in exchange for licensing its intellectual property. The Company determines revenue recognition through the following steps: identification of the license agreement; identification of the performance obligations in the license agreement; determination of the consideration for the license; allocation of the transaction price to the performance obligations in the contract; and recognition of revenue when the Company satisfies its performance obligations. All of the Company’s revenue for the six months ended June 30, 2021 was as a result of resolution of a contractual dispute with a licensee to pay royalties to the Company pursuant to a royalty bearing license for the Remote Power Patent for the period beginning in the fourth quarter of 2017 through March 7, 2020 (when the Remote Power Patent expired) (see Note I[2] hereof). The Company relies on royalty reports received from third party licensees to record its revenue. From time to time, the Company may audit or otherwise dispute royalties reported from licensees. Any adjusted royalty revenue as a result of such audits or dispute is recorded by the Company in the period in which such adjustment is agreed to by the Company and the licensee or otherwise determined. Revenue from the Company’s patent licensing business is generated from negotiated license agreements. The timing and amount of revenue recognized from each licensee depends upon a variety of factors, including the terms of each agreement and the nature of the obligations of the parties. These agreements may include, but not be limited to, elements related to past infringement liabilities, non-refundable upfront license fees, and ongoing royalties on licensed products sold by the licensee. Generally, in the event of settlement of litigation related to the Company’s assertion of patent infringement involving its intellectual property, defendants will either pay (i) a non-refundable lump sum payment for a non-exclusive fully-paid license (a “Fully-Paid License”), or (ii) a non-refundable lump sum payment (license initiation fee) together with an ongoing obligation to pay quarterly or monthly royalties to the Company for the life of the licensed patent (a “Royalty Bearing License”). The Company’s license agreements, both Fully-Paid Licenses and Royalty Bearing Licenses, typically include some combination of the following: (i) the grant of a non-exclusive license to manufacture and/or sell products covered by its patented technologies; (ii) the release of the licensee from certain claims, and (iii) the dismissal of any pending litigation. The intellectual property rights granted pursuant to these licenses typically extend until the expiration of the related patents. Pursuant to the terms of these agreements, the Company typically has no further performance obligations with respect to the grant of the non-exclusive licenses. Generally, the license agreements provide for the grant of the licenses, releases, and other obligations following execution of the agreement and the receipt of the up-front lump sum payment for a Fully-Paid License or a license initiation fee for a Royalty Bearing License. The Company recognizes revenue from their Royalty Bearing Licenses in a manner consistent with the legal form of the arrangement, and in accordance with the royalty recognition constraint that applies to licenses of IP for which some or all of the consideration is in the form of sales or usage based royalty. Consequently, the Company recognizes revenue at the later of when (1) the subsequent sale occurs or (2) the performance obligation to which some or all of the sales based royalty has been satisfied. Non-Refundable Up-Front Fees: Fully-Paid Licenses provide for a non-refundable up-front payment, for which the Company has no future obligations or performance requirements, revenue is generally recognized when the Company has obtained the signed license agreement, all performance obligations have been substantially performed, amounts are fixed and determinable, and collectability is reasonably assured. Revenue from Fully-Paid Licenses may consist of one or more installments. The timing and amount of revenue recognized from each licensee depends upon a number of factors including the specific terms of each agreement and the nature of the deliverables and obligations. [5] Equity Method Investments Equity method investments are equity securities in entities the Company does not control but over which it has the ability to exercise significant influence. These investments are accounted for under the equity method of accounting in accordance with ASC 323, Investments — Equity Method and Joint Ventures [6] Costs of Revenue The Company includes in costs of revenue contingent legal fees payable to patent litigation counsel (see Note G[1] hereof), any other contractual payments to third parties related to net proceeds from settlements (see Note G[2] hereof) and incentive bonus compensation payable to its Chairman and Chief Executive Officer (see Note H[1] hereof). [7] Income Taxes The Company accounts for income taxes in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 740, Income Taxes ASC 740-10, Accounting for Uncertainty in Income Taxes U.S. federal, state and local income tax returns prior to 2017 are not subject to examination by any applicable tax authorities, except that tax authorities could challenge returns (only under certain circumstances) for earlier years to the extent they generated loss carry-forwards that are available for those future years. The personal holding company (“PHC”) rules under the Internal Revenue Code impose a 20% tax on a PHC’s undistributed personal holding company income (“UPHCI”), which means, in general, taxable income subject to certain adjustments. For a corporation to be classified as a PHC, it must satisfy two tests: (1) that more than 50% in value of its outstanding shares must be owned directly or indirectly by five or fewer individuals at any time during the second half of the year (after applying constructive ownership rules to attribute stock owned by entities to their beneficial owners and among certain family members and other related parties) (the “Ownership Test”) and (2) at least 60% of its adjusted ordinary gross income for a taxable year consists of dividends, interest, royalties, annuities and rents (the “Income Test”). Based on net income of $ 8,668,000 [8] New Accounting Standards Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes Equity Securities In January 2020, the FASB issued ASU 2020-01, Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). Codification Improvements In October 2020, the FASB issued ASU 2020-10, Codification Improvements

PATENTS

PATENTS	6 Months Ended
	Jun. 30, 2021
Patents
PATENTS	NOTE C – PATENTS The Company’s intangible assets at June 30 , 2021 include patents with estimated remaining economic useful lives ranging from 0.25 12.25 , 2021 and December 31, 2020 were as follows: June 30, 2021 December 31, 2020 Gross carrying amount – patents $ 7,915,000 $ 7,848,000 Accumulated amortization – patents (6,417,000 ) (6,270,000 ) Patents, net $ 1,498,000 $ 1,578,000 Amortization expense for the three months ended June 30 , 2021 and 2020 was 73,000 and $ 72,000 147,000 144,000 Twelve Months Ended June 30, 2022 $ 296,000 2023 296,000 2024 126,000 2025 86,000 2026 and thereafter 694,000 Total $ 1,498,000 The Company’s Remote Power Patent expired on March 7, 2020 September 2021 November 2023 September 2033 May 2034

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	NOTE D – STOCK-BASED COMPENSATION Restricted Stock Units The 2013 Stock Incentive Plan (“2013 Plan”) provides for the grant of any or all of the following types of awards: (a) stock options, (b) restricted stock, (c) deferred stock, (d) stock appreciation rights, and (e) other stock-based awards including restricted stock units. Awards under the 2013 Plan may be granted singly, in combination, or in tandem. Subject to standard anti-dilution adjustments as provided, the 2013 Plan provides for an aggregate of 2,600,000 1,832,308 A summary of restricted stock unit activity for the six months ended June 30, 2021 is as follows (each restricted stock unit issued by the Company represents the right to receive one share of the Company’s common stock): Number of Shares Weighted-Average Grant Date Fair Value Balance of restricted stock units outstanding at December 31, 2020 162,500 $ 2.25 Grants of restricted stock units 45,000 3.51 Vested restricted stock units (22,500 ) (3.51 ) Balance of unvested restricted stock units at June 30, 2021 185,000 $ 2.41 Restricted stock unit compensation expense was $ 59,000 85,000 118,000 157,000 The Company has an aggregate of $ 155,000 0.85 All of the Company’s outstanding (unvested) restricted stock units have dividend equivalent rights. As of June 30, 2021, there was $ 63,000 53,000

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE	6 Months Ended
	Jun. 30, 2021
Net Income (Loss) Per Share
EARNINGS (LOSS) PER SHARE	NOTE E – EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share is calculated by dividing the net loss by the weighted average number of outstanding common shares during the period. Diluted earnings (loss) per share data includes the dilutive effects of options, warrants and restricted stock units. Potentially dilutive shares of 685,000 862,500 Computations of basic and diluted weighted average common shares outstanding were as follows: Six Months Ended Three Months Ended 2021 2020 2021 2020 Weighted-average common shares outstanding – basic 24,106,169 23,987,715 23,839,455 23,945,916 Dilutive effect of options, warrants and restricted stock units 772,088 — — — Weighted-average common shares outstanding – diluted 24,878,257 23,987,715 23,839,455 23,945,916 Options and restricted stock units excluded from the computation of diluted loss per share because the effect of inclusion would have been anti-dilutive — 862,500 685,000 862,500

MARKETABLE SECURITIES

MARKETABLE SECURITIES	6 Months Ended
	Jun. 30, 2021
Marketable Securities
MARKETABLE SECURITIES	NOTE F – MARKETABLE SECURITIES Marketable securities as of June 30 , 2021 and December 31, 2020 were composed of: June 30, 2021 Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed income mutual funds $ 12,925,000 $ 38,000 $ — $ 12,963,000 Corporate bonds and notes 1,764,000 — (2,000 ) 1,762,000 Total marketable securities $ 14,689,000 $ 38,000 $ (2,000 ) $ 14,725,000 December 31, 2020 Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Certificates of deposit $ 3,534,000 $ 7,000 $ — $ 3,541,000 Fixed income mutual funds 11,255,000 80,000 — 11,335,000 Corporate bonds and notes 4,500,000 18,000 (28,000 ) 4,490,000 Total marketable securities $ 19,289,000 $ 105,000 $ (28,000 ) $ 19,366,000

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE G – COMMITMENTS AND CONTINGENCIES [1] Legal Fees Russ, August & Kabat provides legal services to the Company with respect to its patent litigation filed in May 2017 against Facebook, Inc. in the U.S. District Court for the Southern District of New York relating to several patents within the Company’s Mirror Worlds Patent Portfolio (see Note I[4] hereof). The terms of the Company’s agreement with Russ, August & Kabat provide for cash payments on a monthly basis subject to a cap plus a contingency fee ranging between 15% and 24% of the net recovery (after deduction of expenses) Russ, August & Kabat also provides legal services to the Company with respect to its pending patent litigations filed in April 2014 and December 2014 against Google Inc. and YouTube, LLC in the U.S. District Court for the Southern District of New York relating to certain patents within the Company’s Cox Patent Portfolio (see Note I[3] hereof). The terms of the Company’s agreement with Russ, August & Kabat provide for legal fees on a full contingency basis ranging from 15% to 30% of the net recovery (after deduction of expenses) Dovel & Luner, LLP provides legal services to the Company with respect to its patent litigation filed in September 2011 against sixteen (16) data networking equipment manufacturers in the U.S. District Court for the Eastern District of Texas, Tyler (see Note I[1] hereof). The terms of the Company’s agreement with Dovel & Luner LLP essentially provide for legal fees on a full contingency basis ranging from 12.5% to 35% (with certain exceptions) of the net recovery (after deduction for expenses) 887,000 Dovel & Luner, LLP also provided legal services to the Company with respect to the litigation settled in July 2010 against Cisco and several other major data networking equipment manufacturers (see Note I[2] hereof). The terms of the Company’s agreement with Dovel & Luner, LLP with respect to this litigation provided for legal fees of a maximum aggregate cash payment of $1.5 million plus a contingency fee of 24% (based on the settlement being achieved at the trial stage) 4,485,000 0 [2] Patent Acquisitions In connection with the Company’s acquisition of its Cox Patent Portfolio, the Company is obligated to pay Dr. Cox 12.5% As p ar o t a c i iti a l e n t ere i t a a r e e m e n it R ec g iti Interface, LLC (“Recognition”) pursuant to which g iti r e ce i e fr the Company a i t ere i t h e p r c ee rea li z e fr t m e ti z a ti t Mirror Worlds P a t e P r t f li a f ll ( i 10% t f i r milli e p r c e e ( ii 15% t e x milli n e r c ee ( iii 20% a n r ti t e r c e e i e x ce mil l 3,127,000 In connection with the Company’s acquisition of its M2M/IoT Patent Portfolio, the Company is obligated to pay M2M 14% 5% In addition, M2M will be entitled to receive from the Company $ 250,000 Obligation to pay M2M, net proceeds

EMPLOYMENT ARRANGEMENTS AND OTH

EMPLOYMENT ARRANGEMENTS AND OTHER AGREEMENTS	6 Months Ended
	Jun. 30, 2021
Compensation Related Costs [Abstract]
EMPLOYMENT ARRANGEMENTS AND OTHER AGREEMENTS	NOTE H - EMPLOYMENT ARRANGEMENTS AND OTHER AGREEMENTS [1] 475,000 which shall be increased by 3% per annum during the term of the Agreement. The Agreement established an annual target bonus of $ 175,000 for the Chairman and Chief Executive Officer based upon performance. In addition, the Company granted to the Chairman and Chief Executive Officer, under its 2013 Stock Incentive Plan, 750,000 restricted stock units (“RSUs”). All of the 750,000 RSUs have vested as of July 14, 2021 with the settlement of 125,000 of such RSUs to occur on or after January 1, 2022, but in no event later than March 15, 2022. Under the terms of the Agreement, so long as the Chairman and Chief Executive Officer continues to serve as an executive officer of the Company, whether pursuant to the Agreement or otherwise, the Chairman and Chief Executive Officer shall also receive incentive compensation in an amount equal to 5 10 6.25 - 0 2,000 935,000 10,000 [2] 175,000 [3] 200,000

LEGAL PROCEEDING

LEGAL PROCEEDING	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
LEGAL PROCEEDING	NOTE I – LEGAL PROCEEDING [1] On November 13, 2017, a jury empaneled in the U.S. District Court for the Eastern District of Texas, Tyler Division, found that certain claims of the Company’s Remote Power Patent were invalid and not infringed by HP. On February 2, 2018, the Company moved to throw out the jury verdict and have the Court determine that certain claims of the Remote Power Patent are not obvious (invalid) as a matter of law by filing motions for judgment as a matter of law on validity and a new trial on validity and infringement. On August 29, 2018, the District Court issued an order granting the Company’s motion for judgment as a matter of law that the Remote Power Patent is valid, thereby overturning the jury verdict of invalidity and denied the Company’s motion for a new trial on infringement. On August 30, 2018, the Company appealed the District Court’s denial of its motion for a new trial on infringement to the U.S. Court of Appeals for the Federal Circuit. On September 13, 2018, HP filed a cross-appeal of the District Court’s order that the Remote Power Patent is valid as a matter of law. On September 24, 2020, the U.S. Court of Appeals for the Federal Circuit overturned the judgment of non-infringement of the U.S. District Court of the Eastern District of Texas. The Federal Circuit also vacated the District Court judgment of validity of the Remote Power Patent. The Federal Circuit has remanded the case to the District Court for a new trial on infringement against HP and further proceedings on validity. On May 7, 2021, the U.S. District Court for the Eastern District of Texas, Tyler Division, granted the Company’s motion for new trial and denied the Company’s request for judgment as a matter of law on validity. On July 26, 2021, the Company entered into a settlement agreement with Hewlett-Packard pursuant to which Hewlett-Packard has agreed to pay the Company $ 17,000,000 [2] 9 million On March 30, 2021, the Company entered into an amendment (the “Amendment”) to the Settlement and License Agreement, dated May 25, 2011, between the Company and Cisco (the “Agreement”). Pursuant to the Amendment, Cisco paid $ 18,692,000 [3] the Company initiated litigation against Google Inc. (“Google”) and YouTube, LLC (“YouTube”) in the U.S. District Court for the Southern District of New York for infringement of several of its patents within its Cox Patent Portfolio acquired from Dr. Cox (see Note G[2] hereof) which relate to the identification of media content on the Internet. The lawsuit alleges that Google and YouTube have infringed and continue to infringe certain of the Company’s patents by making, using, selling and offering to sell unlicensed systems and related products and services, which include YouTube’s Content ID system. In May 2014, the defendants filed an answer to the complaint and asserted defenses of non-infringement and invalidity. The above referenced litigations that the Company commenced in the U.S. District Court for the Southern District of New York in April 2014 and December 2014 against Google and YouTube were subject to court ordered stays which were in effect from July 2, 2015 until January 2, 2019 as a result of proceedings at the Patent Trial and Appeal Board (PTAB) and the appeals of PTAB Final Written Decisions to the U.S. Court of Appeals for the Federal Circuit. Pursuant to a Joint Stipulation and Order Regarding Lifting of Stays, entered on January 2, 2019, the parties agreed, among other things, that the stays with respect to the litigations were lifted. In January 2019, the two litigations against Google and YouTube were consolidated. [4] the Company’s wholly-owned subsidiary, initiated litigation against Facebook, Inc. (“Facebook”) in the U.S. District Court for the Southern District of New York, for infringement of U.S. Patent No. 6,006,227, U.S. Patent No. 7,865,538 and U.S. Patent No. 8,255,439 (among the patents within the Company’s Mirror Worlds Patent Portfolio). The lawsuit alleged that the asserted patents are infringed by Facebook’s core technologies that enable Facebook’s Newsfeed and Timeline features. [5] [6]

INVESTMENT

INVESTMENT	6 Months Ended
	Jun. 30, 2021
Equity Method Investments and Joint Ventures [Abstract]
INVESTMENT	NOTE J – INVESTMENT During the period December 2018 through March 2021, the Company made an aggregate investment of $ 6,000,000 6,000,000 5,000,000 1,000,000 9.5 7.4 On March 12, 2021, the Company invested an additional $ 1,000,000 23,500,000 6 The Notes are required to be converted into a Qualified Financing (minimum financing of $15 million) at the lesser of (i) 80% of the price paid per unit in such offering or (ii) a price based on an enterprise value of $176,000,000. In addition, the Notes shall convert in the event of a merger at the lower of an enterprise value of $176,000,000 or the stated valuation of ILiAD in the merger transaction. noteholders will also have the option to have the Notes repaid except in a Qualified Offering or a stock-for-stock merger. For the three months ended June 30, 2021, the Company recorded a net loss from its equity investment in ILiAD totaling $ 231,000 446,000 The difference between the Company’s share of equity in ILiAD’s net assets and the equity investment carrying value reported on the Company’s unaudited condensed consolidated balance sheet at June 30, 2021 is due to an excess amount paid over the book value of the equity investment totaling approximately $ 5,000,000

Stock Repurchases

Stock Repurchases	6 Months Ended
	Jun. 30, 2021
Other Liabilities Disclosure [Abstract]
Stock Repurchases	Note K – Stock Repurchases On June 8, 2021, the Board of Directors authorized an extension and increase of the Company’s share repurchase program (the “Share Repurchase Program”) to repurchase up to $ 5,000,000 8,645,659 16,286,805 1.88 40,000 3.27 130,800 4,869,200

CONCENTRATIONS

CONCENTRATIONS	6 Months Ended
	Jun. 30, 2021
Risks and Uncertainties [Abstract]
CONCENTRATIONS	NOTE L – CONCENTRATIONS The Company had no 55,000 100 90 no

RELATED PARTY TRANSACTION

RELATED PARTY TRANSACTION	6 Months Ended
	Jun. 30, 2021
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTION	NOTE M – RELATED PARTY TRANSACTION On May 27, 2021, the Company repurchased from a director of the Company 40,000 3.27 130,800

DIVIDEND POLICY

DIVIDEND POLICY	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
DIVIDEND POLICY	NOTE N – DIVIDEND POLICY The Company’s dividend policy consists of semi-annual cash dividends of $ 0.05 the Company’s Board of Directors declared a semi-annual cash dividend of $ 0.05 March 31, 2021 March 16, 2021

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE O – SUBSEQUENT EVENTS On July 26, 2021, the Company agreed to settle its patent litigation against Hewlett-Packard Company and Hewlett-Packard Enterprise Company (collectively, “HP”) pending in the U.S. District Court for the Eastern District of Texas, Tyler Division, for infringement of Network-1’s Remote Power Patent. Under the terms of the settlement agreement, Hewlett-Packard Enterprise Company has agreed to pay the Company $ 17,000,000

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Use of Estimates and Assumptions	[1] Use of Estimates and Assumptions The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. The significant estimates and assumptions made in the preparation of the Company’s unaudited condensed consolidated financial statements include revenue recognition, 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.
Cash and Cash Equivalents	[2] Cash and Cash Equivalents The Company maintains cash deposits in high quality financial institutions insured by the Federal Deposit Insurance Corporation 250,000 8,173,000 The Company considers all highly liquid short-term investments, including certificates of deposit and money market funds, that are purchased with an original maturity of three months or less to be cash equivalents.
Marketable Securities	[3] Marketable Securities The Company’s marketable securities are comprised of certificates of deposit with original maturity greater than three months from date of purchase, fixed income mutual funds, and corporate bonds and notes. The Company’s marketable securities are measured at fair value and are accounted for in accordance with ASU 2016-01. Unrealized holding gains and losses on certificates of deposit and fixed income mutual funds are recorded in net realized and unrealized gain (loss) from investments on the unaudited condensed consolidated statements of operations and comprehensive loss. Unrealized holding gains and losses, net of the related tax effect, on corporate bonds and notes are excluded from earnings and are reported as a separate component of stockholders’ equity until realized. Dividend and interest income are recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of the marketable securities.
Revenue Recognition	[4] Revenue Recognition Under ASC 606, revenue is recognized when the Company completes the licensing of its intellectual property to its licensees, in an amount that reflects the consideration the Company expects to be entitled to in exchange for licensing its intellectual property. The Company determines revenue recognition through the following steps: identification of the license agreement; identification of the performance obligations in the license agreement; determination of the consideration for the license; allocation of the transaction price to the performance obligations in the contract; and recognition of revenue when the Company satisfies its performance obligations. All of the Company’s revenue for the six months ended June 30, 2021 was as a result of resolution of a contractual dispute with a licensee to pay royalties to the Company pursuant to a royalty bearing license for the Remote Power Patent for the period beginning in the fourth quarter of 2017 through March 7, 2020 (when the Remote Power Patent expired) (see Note I[2] hereof). The Company relies on royalty reports received from third party licensees to record its revenue. From time to time, the Company may audit or otherwise dispute royalties reported from licensees. Any adjusted royalty revenue as a result of such audits or dispute is recorded by the Company in the period in which such adjustment is agreed to by the Company and the licensee or otherwise determined. Revenue from the Company’s patent licensing business is generated from negotiated license agreements. The timing and amount of revenue recognized from each licensee depends upon a variety of factors, including the terms of each agreement and the nature of the obligations of the parties. These agreements may include, but not be limited to, elements related to past infringement liabilities, non-refundable upfront license fees, and ongoing royalties on licensed products sold by the licensee. Generally, in the event of settlement of litigation related to the Company’s assertion of patent infringement involving its intellectual property, defendants will either pay (i) a non-refundable lump sum payment for a non-exclusive fully-paid license (a “Fully-Paid License”), or (ii) a non-refundable lump sum payment (license initiation fee) together with an ongoing obligation to pay quarterly or monthly royalties to the Company for the life of the licensed patent (a “Royalty Bearing License”). The Company’s license agreements, both Fully-Paid Licenses and Royalty Bearing Licenses, typically include some combination of the following: (i) the grant of a non-exclusive license to manufacture and/or sell products covered by its patented technologies; (ii) the release of the licensee from certain claims, and (iii) the dismissal of any pending litigation. The intellectual property rights granted pursuant to these licenses typically extend until the expiration of the related patents. Pursuant to the terms of these agreements, the Company typically has no further performance obligations with respect to the grant of the non-exclusive licenses. Generally, the license agreements provide for the grant of the licenses, releases, and other obligations following execution of the agreement and the receipt of the up-front lump sum payment for a Fully-Paid License or a license initiation fee for a Royalty Bearing License. The Company recognizes revenue from their Royalty Bearing Licenses in a manner consistent with the legal form of the arrangement, and in accordance with the royalty recognition constraint that applies to licenses of IP for which some or all of the consideration is in the form of sales or usage based royalty. Consequently, the Company recognizes revenue at the later of when (1) the subsequent sale occurs or (2) the performance obligation to which some or all of the sales based royalty has been satisfied. Non-Refundable Up-Front Fees: Fully-Paid Licenses provide for a non-refundable up-front payment, for which the Company has no future obligations or performance requirements, revenue is generally recognized when the Company has obtained the signed license agreement, all performance obligations have been substantially performed, amounts are fixed and determinable, and collectability is reasonably assured. Revenue from Fully-Paid Licenses may consist of one or more installments. The timing and amount of revenue recognized from each licensee depends upon a number of factors including the specific terms of each agreement and the nature of the deliverables and obligations.
Equity Method Investments	[5] Equity Method Investments Equity method investments are equity securities in entities the Company does not control but over which it has the ability to exercise significant influence. These investments are accounted for under the equity method of accounting in accordance with ASC 323, Investments — Equity Method and Joint Ventures
Costs of Revenue	[6] Costs of Revenue The Company includes in costs of revenue contingent legal fees payable to patent litigation counsel (see Note G[1] hereof), any other contractual payments to third parties related to net proceeds from settlements (see Note G[2] hereof) and incentive bonus compensation payable to its Chairman and Chief Executive Officer (see Note H[1] hereof).
Income Taxes	[7] Income Taxes The Company accounts for income taxes in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 740, Income Taxes ASC 740-10, Accounting for Uncertainty in Income Taxes U.S. federal, state and local income tax returns prior to 2017 are not subject to examination by any applicable tax authorities, except that tax authorities could challenge returns (only under certain circumstances) for earlier years to the extent they generated loss carry-forwards that are available for those future years. The personal holding company (“PHC”) rules under the Internal Revenue Code impose a 20% tax on a PHC’s undistributed personal holding company income (“UPHCI”), which means, in general, taxable income subject to certain adjustments. For a corporation to be classified as a PHC, it must satisfy two tests: (1) that more than 50% in value of its outstanding shares must be owned directly or indirectly by five or fewer individuals at any time during the second half of the year (after applying constructive ownership rules to attribute stock owned by entities to their beneficial owners and among certain family members and other related parties) (the “Ownership Test”) and (2) at least 60% of its adjusted ordinary gross income for a taxable year consists of dividends, interest, royalties, annuities and rents (the “Income Test”). Based on net income of $ 8,668,000
New Accounting Standards	[8] New Accounting Standards Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes Equity Securities In January 2020, the FASB issued ASU 2020-01, Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). Codification Improvements In October 2020, the FASB issued ASU 2020-10, Codification Improvements

PATENTS (Tables)

PATENTS (Tables)	6 Months Ended
	Jun. 30, 2021
Patents
The Company’s intangible assets at June 30, 2021 include patents with estimated remaining economic useful lives ranging from 0.25 to 12.25 years. For all periods presented, all of the Company’s patents were subject to amortization. The gross carrying amounts and accumulated amortization related to acquired intangible assets as of June 30, 2021 and December 31, 2020 were as follows:	The Company’s intangible assets at June 30 , 2021 include patents with estimated remaining economic useful lives ranging from 0.25 12.25 , 2021 and December 31, 2020 were as follows: June 30, 2021 December 31, 2020 Gross carrying amount – patents $ 7,915,000 $ 7,848,000 Accumulated amortization – patents (6,417,000 ) (6,270,000 ) Patents, net $ 1,498,000 $ 1,578,000
Amortization expense for the three months ended June 30, 2021 and 2020 was $73,000 and $72,000, respectively. Amortization expense for the six months ended June 30, 2021 and 2020 was $147,000 and $144,000, respectively. Future amortization of intangible assets, net is as follows:	Amortization expense for the three months ended June 30 , 2021 and 2020 was 73,000 and $ 72,000 147,000 144,000 Twelve Months Ended June 30, 2022 $ 296,000 2023 296,000 2024 126,000 2025 86,000 2026 and thereafter 694,000 Total $ 1,498,000

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
A summary of restricted stock unit activity for the six months ended June 30, 2021 is as follows (each restricted stock unit issued by the Company represents the right to receive one share of the Company’s common stock):	A summary of restricted stock unit activity for the six months ended June 30, 2021 is as follows (each restricted stock unit issued by the Company represents the right to receive one share of the Company’s common stock): Number of Shares Weighted-Average Grant Date Fair Value Balance of restricted stock units outstanding at December 31, 2020 162,500 $ 2.25 Grants of restricted stock units 45,000 3.51 Vested restricted stock units (22,500 ) (3.51 ) Balance of unvested restricted stock units at June 30, 2021 185,000 $ 2.41

EARNINGS (LOSS) PER SHARE (Tabl

EARNINGS (LOSS) PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2021
Net Income (Loss) Per Share
Computations of basic and diluted weighted average common shares outstanding were as follows:	Computations of basic and diluted weighted average common shares outstanding were as follows: Six Months Ended Three Months Ended 2021 2020 2021 2020 Weighted-average common shares outstanding – basic 24,106,169 23,987,715 23,839,455 23,945,916 Dilutive effect of options, warrants and restricted stock units 772,088 — — — Weighted-average common shares outstanding – diluted 24,878,257 23,987,715 23,839,455 23,945,916 Options and restricted stock units excluded from the computation of diluted loss per share because the effect of inclusion would have been anti-dilutive — 862,500 685,000 862,500

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2021
Marketable Securities
Marketable securities as of June 30, 2021 and December 31, 2020 were composed of:	Marketable securities as of June 30 , 2021 and December 31, 2020 were composed of: June 30, 2021 Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed income mutual funds $ 12,925,000 $ 38,000 $ — $ 12,963,000 Corporate bonds and notes 1,764,000 — (2,000 ) 1,762,000 Total marketable securities $ 14,689,000 $ 38,000 $ (2,000 ) $ 14,725,000 December 31, 2020 Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Certificates of deposit $ 3,534,000 $ 7,000 $ — $ 3,541,000 Fixed income mutual funds 11,255,000 80,000 — 11,335,000 Corporate bonds and notes 4,500,000 18,000 (28,000 ) 4,490,000 Total marketable securities $ 19,289,000 $ 105,000 $ (28,000 ) $ 19,366,000

BASIS OF PRESENTATION AND NAT_2

BASIS OF PRESENTATION AND NATURE OF BUSINESS (Details Narrative)	6 Months Ended	26 Months Ended
	Jun. 30, 2021USD ($)Number	Mar. 07, 2020USD ($)
Related Party Transaction [Line Items]
Patents owned | Number	87
Cisco [Member] | Settlement and License Agreement [Member]
Related Party Transaction [Line Items]
Contractual obligation to pay royalties		$ 18,692,000
Hewlett Packard [Member] | Settlement and License Agreement [Member]
Related Party Transaction [Line Items]
Contractual obligation to pay royalties	$ 17,000,000

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Accounting Policies [Abstract]
FDIC insured limit	$ 250,000				$ 250,000
Cash in excess of FDIC insured limit	8,173,000				8,173,000
NET INCOME (LOSS)	$ (783,000)	$ 9,451,000	$ (584,000)	$ (1,337,000)	$ 8,668,000	$ (1,921,000)

The Company_s intangible assets

The Company’s intangible assets at June 30, 2021 include patents with estimated remaining economic useful lives ranging from 0.25 to 12.25 years. For all periods presented, all of the Company’s patents were subject to amortization. The gross carrying amou (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Patents, net	$ 1,498,000	$ 1,578,000
Patents [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount - patents	7,915,000	7,848,000
Accumulated amortization - patents	(6,417,000)	(6,270,000)
Patents, net	$ 1,498,000	$ 1,578,000

Amortization expense for the th

Amortization expense for the three months ended June 30, 2021 and 2020 was $73,000 and $72,000, respectively. Amortization expense for the six months ended June 30, 2021 and 2020 was $147,000 and $144,000, respectively. Future amortization of intangible a (Details)	Jun. 30, 2021USD ($)
Patents
2022	$ 296,000
2023	296,000
2024	126,000
2025	86,000
2026 and thereafter	694,000
Total	$ 1,498,000

PATENTS (Details Narrative)

PATENTS (Details Narrative)	6 Months Ended
	Jun. 30, 2021
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items]
Expiration date of Remote Power Patent	March 7, 2020
Minimum [Member]
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items]
Expiration dates of the patents within the Cox patent portfolio	September 2021
Expiration dates of the patents within the Company's M2M/IoT Patent Portfolio	September 2033
Maximum [Member]
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items]
Expiration dates of the patents within the Cox patent portfolio	November 2023
Expiration dates of the patents within the Company's M2M/IoT Patent Portfolio	May 2034

A summary of restricted stock u

A summary of restricted stock unit activity for the six months ended June 30, 2021 is as follows (each restricted stock unit issued by the Company represents the right to receive one share of the Company’s common stock): (Details)	6 Months Ended
	Jun. 30, 2021$ / sharesshares
Share-based Payment Arrangement [Abstract]
Restricted stock, Outstanding Number of shares, Beginning Balance | shares	162,500
Restricted stock, Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares	$ 2.25
Grants of restricted stock units | shares	45,000
Grants of restricted stock units, Weighted Average Grant Date Fair Value | $ / shares	$ 3.51
Vested restricted stock units | shares	(22,500)
Vested restricted stock units, Weighted Average Grant Date Fair Value | $ / shares	$ (3.51)
Unvested Resricted stock, Outstanding Number of shares, Ending Balance | shares	185,000
Unvested Restricted stock, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 2.41

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details Narrative) - Restricted Stock Units (RSUs) [Member] - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock unit compensation expense	$ 59,000	$ 85,000	$ 118,000	$ 157,000
Unrecognized restricted stock unit compensation expense	$ 155,000		$ 155,000
Weighted average amortized period			10 months 6 days
Accrued dividend rights on restricted stock unit			$ 63,000		$ 53,000
2013 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock originally for issuance			2,600,000
Common stock available for issuance	1,832,308		1,832,308

Computations of basic and dilut

Computations of basic and diluted weighted average common shares outstanding were as follows: (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Net Income (Loss) Per Share
Weighted-average common shares outstanding – basic	23,839,455	23,945,916	24,106,169	23,987,715
Dilutive effect of options, warrants and restricted stock units			772,088
Weighted-average common shares outstanding – diluted	23,839,455	23,945,916	24,878,257	23,987,715
Options and restricted stock units excluded from the computation of diluted loss per share because the effect of inclusion would have been anti-dilutive	685,000	862,500		862,500

EARNINGS (LOSS) PER SHARE (Deta

EARNINGS (LOSS) PER SHARE (Details Narrative) - shares	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Net Income (Loss) Per Share
Weighted Average Number Diluted Shares Outstanding Adjustment	685,000	862,500

Marketable securities as of Jun

Marketable securities as of June 30, 2021 and December 31, 2020 were composed of: (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Cost Basis [Member]
Other Investment Not Readily Marketable [Line Items]
Fixed income mutual funds	$ 12,925,000	$ 11,255,000
Corporate bonds and notes	1,764,000	4,500,000
Total marketable securities	14,689,000	19,289,000
Certificates of deposit		3,534,000
Gross Unrealized Gains [Member]
Other Investment Not Readily Marketable [Line Items]
Fixed income mutual funds	38,000	80,000
Corporate bonds and notes		18,000
Total marketable securities	38,000	105,000
Certificates of deposit		7,000
Fair Value [Member]
Other Investment Not Readily Marketable [Line Items]
Fixed income mutual funds	12,963,000	11,335,000
Corporate bonds and notes	1,762,000	4,490,000
Total marketable securities	14,725,000	19,366,000
Certificates of deposit		3,541,000
Gross Unrealized Losses [Member]
Other Investment Not Readily Marketable [Line Items]
Corporate bonds and notes	(2,000)	(28,000)
Total marketable securities	$ (2,000)	$ (28,000)

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Loss Contingencies [Line Items]
Obligated to pay Cox, net proceeds percentage	12.50%
Recognition net proceeds payment related to Mirror Worlds patents	$ 3,127,000
First $125 Million	10.00%
Next $125 Million	15.00%
Over $250 Million	20.00%
Obligated to pay M2M, net proceeds
First $100 Million	14.00%
Next $100 Million	5.00%
Additional consideration payable upon occurrence of certain future events	$ 250,000
Legal Service Agreement With Russ, August Kabot For Litigation Filed In May 2017 [Member]
Loss Contingencies [Line Items]
Legal Fees payment ,Terms	cash payments on a monthly basis subject to a cap plus a contingency fee ranging between 15% and 24% of the net recovery (after deduction of expenses)
Legal Service Agreement With Russ, August Kabot For Litigation Filed In April 2014 and December 2014 [Member]
Loss Contingencies [Line Items]
Legal Fees payment ,Terms	legal fees on a full contingency basis ranging from 15% to 30% of the net recovery (after deduction of expenses)
Legal Service Agreement With Dovel And Luner For Litigation Filed In September 2011 [Member]
Loss Contingencies [Line Items]
Legal Fees payment ,Terms	legal fees on a full contingency basis ranging from 12.5% to 35% (with certain exceptions) of the net recovery (after deduction for expenses)
Accrued expenses	$ 887,000
Legal Service Agreement With Dovel And Luner For Litigation Settlement In July 2010 [Member]
Loss Contingencies [Line Items]
Legal Fees payment ,Terms	legal fees of a maximum aggregate cash payment of $1.5 million plus a contingency fee of 24% (based on the settlement being achieved at the trial stage)
Contingent legal fees	$ 4,485,000	$ 0

EMPLOYMENT ARRANGEMENTS AND O_2

EMPLOYMENT ARRANGEMENTS AND OTHER AGREEMENTS (Details Narrative) - USD ($)	Jul. 14, 2021	Jul. 14, 2016	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Earned incentive compensation			$ 0	$ 2,000	$ 935,000	$ 10,000
Chief Executive Officer [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Annual base salary of Chief Financial Officer					175,000
Executive Vice President [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Annual base salary of Executive Vice President					$ 200,000
New Employment Agreement [Member] | Chief Executive Officer [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Salary and Wage, Excluding Cost of Good and Service Sold		$ 475,000
Target annual bonus paid Chairman and CEO		175,000
RSUs to chairman and chief executive officer on July 14, 2016					750,000
New Employment Agreement [Member] | Chief Executive Officer [Member] | Subsequent Event [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Restricted stock units to be vested, subject to future settlement	125,000
2013 Stock Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Target annual bonus paid Chairman and CEO		$ 750,000
Employment Agreement [Member] | Chief Executive Officer [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Percentage of gross royalties			5.00%		5.00%
Percentage of net royalties			10.00%		10.00%
Percentage minimum of gross royalties			6.25%		6.25%

LEGAL PROCEEDING (Details Narra

LEGAL PROCEEDING (Details Narrative) - USD ($)	Jul. 26, 2021	May 09, 2017	Jun. 30, 2021	Mar. 30, 2021
Google [Member] | On April 4, 2014 and December 3, 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Litigation pending, description			the Company initiated litigation against Google Inc. (“Google”) and YouTube, LLC (“YouTube”) in the U.S. District Court for the Southern District of New York for infringement of several of its patents within its Cox Patent Portfolio acquired from Dr. Cox (see Note G[2] hereof) which relate to the identification of media content on the Internet. The lawsuit alleges that Google and YouTube have infringed and continue to infringe certain of the Company’s patents by making, using, selling and offering to sell unlicensed systems and related products and services, which include YouTube’s Content ID system.
Facebook [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Litigation pending, description		the Company’s wholly-owned subsidiary, initiated litigation against Facebook, Inc. (“Facebook”) in the U.S. District Court for the Southern District of New York, for infringement of U.S. Patent No. 6,006,227, U.S. Patent No. 7,865,538 and U.S. Patent No. 8,255,439 (among the patents within the Company’s Mirror Worlds Patent Portfolio). The lawsuit alleged that the asserted patents are infringed by Facebook’s core technologies that enable Facebook’s Newsfeed and Timeline features.
License Agreement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum cisco royalty payment per year for remaining term of the remote power patent				$ 9,000,000
Amount of royalties paid by Cisco				$ 18,692,000
Hewlett Packard [Member] | Settlement and License Agreement [Member] | Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Full settlement of the litigation	$ 17,000,000

INVESTMENT (Details Narrative)

INVESTMENT (Details Narrative) - USD ($)	Mar. 12, 2021	Jun. 30, 2021	Jun. 30, 2021
Related Party Transaction [Line Items]
Aggregate investment		$ 6,000,000	$ 6,000,000
Equity investment		5,000,000	5,000,000
Convertible note investment		1,000,000	1,000,000
ILiAD [Member]
Related Party Transaction [Line Items]
Aggregate investment		6,000,000	6,000,000
Equity investment		5,000,000	5,000,000
Equity investment - net loss		$ 231,000	$ 446,000
ILiAD [Member] | Class C units [Member]
Related Party Transaction [Line Items]
Ownership percentage - non fully diluted		9.50%	9.50%
Ownership percentage fully diluted		7.40%	7.40%
ILiad Biotechnologies LLC [Member]
Related Party Transaction [Line Items]
Additional convertible note investment	$ 1,000,000
Maximum convertible debt offering	$ 23,500,000
Interest rate	6.00%
Notes conversion, description	The Notes are required to be converted into a Qualified Financing (minimum financing of $15 million) at the lesser of (i) 80% of the price paid per unit in such offering or (ii) a price based on an enterprise value of $176,000,000. In addition, the Notes shall convert in the event of a merger at the lower of an enterprise value of $176,000,000 or the stated valuation of ILiAD in the merger transaction.

Stock Repurchases (Details Narr

Stock Repurchases (Details Narrative) - USD ($)	May 27, 2021	Jun. 30, 2021	Jun. 08, 2021
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Stock Repurchase Program, dollar amount		4,869,200
Number of shares, common stock repurchased since inception		8,645,659
Aggregate cost of common stock repurchased since inception		$ 16,286,805
Average price per share, common stock repurchased since inception		$ 1.88
Board Of Directors [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Stock Repurchase Program, dollar amount			5,000,000
Number of shares, common stock repurchased since inception	40,000	40,000
Aggregate cost of common stock repurchased since inception	$ 130,800	$ 130,800
Average price per share, common stock repurchased since inception	$ 3.27	$ 3.27

CONCENTRATIONS (Details Narrati

CONCENTRATIONS (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Concentration Risk [Line Items]
Revenues	$ 0	$ 55,000	$ 18,692,000	$ 216,000
Royalty receivables	$ 0		$ 0		$ 0
Licensees One [Member]
Concentration Risk [Line Items]
Royalty receivables percentage			100.00%
Licensees Four [Member]
Concentration Risk [Line Items]
Percentage revenue			90.00%

RELATED PARTY TRANSACTION (Deta

RELATED PARTY TRANSACTION (Details Narrative) - USD ($)	May 27, 2021	Jun. 30, 2021
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Number of shares, common stock repurchased		8,645,659
Price per share, common stock repurchased		$ 1.88
Aggregate cost of common stock		$ 16,286,805
Board Of Directors [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Number of shares, common stock repurchased	40,000	40,000
Price per share, common stock repurchased	$ 3.27	$ 3.27
Aggregate cost of common stock	$ 130,800	$ 130,800

DIVIDEND POLICY (Details Narrat

DIVIDEND POLICY (Details Narrative) - $ / shares	1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 23, 2021	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Semi-annual cash dividend per common share				$ 0.05	$ 0.05
Board Of Directors [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Semi-annual cash dividend per common share	$ 0.05
Dividend payment date	Mar. 31, 2021
Semi-annual cash dividend record date	Mar. 16, 2021

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative)	Jul. 26, 2021USD ($)
Hewlett Packard Enterprise [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Full settlement of the litigation	$ 17,000,000