Network-1 Technologies reported no revenue for the third quarter of 2026, while higher litigation-related costs and losses on its investment securities contributed to a wider net loss. For the first nine months of the year, the company also recorded an accounting gain tied to its investment in ILiAD Biotechnologies after ILiAD completed a $115 million financing.
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Revenue: Network-1 had no revenue in the three months ended Sept. 30, 2026, or in the first nine months of the year. It also had no third-quarter revenue in 2025, but recorded $150,000 for the first nine months of that year.
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Operating expenses: Third-quarter expenses rose to $1.608 million from $800,000 a year earlier. For the first nine months, expenses increased to $4.036 million from $2.315 million. The company attributed the increases primarily to litigation-related professional fees and other related costs.
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ILiAD investment: Network-1 recorded a $1.052 million gain in the first quarter after ILiAD closed a $115 million financing in February. The financing led Network-1 to switch from equity-method to cost-method accounting for the investment; the gain came from remeasuring its carrying value.
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Investment securities: Network-1 recorded net realized and unrealized losses of $1.060 million on marketable securities in the third quarter, compared with gains of $44,000 a year earlier. For the first nine months, losses totaled $1.339 million, versus gains of $215,000 in the same period of 2025. The company said the losses were primarily unrealized declines in fixed-income securities as higher short-term Treasury yields reduced their market prices.
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Net loss: The third-quarter net loss widened to $2.333 million, or 10 cents per share, from $560,000, or 2 cents per share, a year earlier. The nine-month loss increased to $3.499 million, or 15 cents per share, from $1.386 million, or 6 cents per share.
The results reflect a business with no reported revenue in the quarter and higher litigation costs, alongside investment-related gains and losses that affected reported earnings. For the nine-month period, the ILiAD accounting gain and the absence of equity-method losses from ILiAD partly offset the higher expenses and securities losses.