Investment Thesis
Network-1 Technologies faces severe operational distress with a catastrophic 91.9% YoY revenue collapse to $384K, resulting in negative operating income (-$1.4M) and negative free cash flow (-$2.8M). Despite a fortress balance sheet with zero debt and $8.6M cash, the company's operational performance is critically deteriorating, burning capital with no clear path to profitability or revenue stabilization.
Strengths
- Zero long-term debt with minimal leverage (0.00x D/E ratio)
- Strong liquidity position with $8.6M cash and 31.34x current ratio
- Substantial stockholders' equity base of $38.0M provides financial cushion
Risks
- Revenue collapsed 91.9% YoY indicating severe business model failure or contract losses
- Negative operating cash flow (-$310K) and free cash flow (-$2.8M) with ongoing cash burn despite capex spending of $2.5M
- Persistent operating losses (-$1.4M) and negative net income with deteriorating operational metrics (ROE/ROA: -1.3%)
Key Metrics to Watch
- Quarterly revenue trajectory and contract wins/losses in patent licensing segment
- Operating cash flow trend and ability to reach positive cash generation
- Cash runway given current burn rate and sustainability of $8.6M cash position
Financial Metrics
Revenue
384.0K
Net Income
-511.0K
EPS (Diluted)
$-0.02
Free Cash Flow
-2.8M
Total Assets
39.4M
Cash
8.6M
Profitability Ratios
Gross Margin
1,897.9%
Operating Margin
-368.5%
Net Margin
-133.1%
ROE
-1.3%
ROA
-1.3%
FCF Margin
-731.8%
Balance Sheet & Liquidity
Current Ratio
31.34x
Quick Ratio
31.34x
Debt/Equity
0.00x
Debt/Assets
3.4%
Interest Coverage
N/A
Long-term Debt
0.0
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-10T07:38:38.167878 |
Data as of: 2026-03-31 |
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