Cover
Cover - $ / shares | Nov. 04, 2021 | Sep. 30, 2021 |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
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 | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 24,099,629 | |
Entity Listing, Par Value Per Share | $ 0.01 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 43,173,000 | $ 25,505,000 |
Marketable securities, at fair value | 17,667,000 | 19,366,000 |
Other current assets | 26,000 | 120,000 |
TOTAL CURRENT ASSETS | 60,866,000 | 44,991,000 |
OTHER ASSETS: | ||
Deferred tax assets, net | 954,000 | |
Patents, net of accumulated amortization | 1,444,000 | 1,578,000 |
Equity investment | 3,018,000 | 3,650,000 |
Convertible note investment | 1,000,000 | |
Security deposits | 13,000 | 21,000 |
Total Other Assets | 5,475,000 | 6,203,000 |
TOTAL ASSETS | 66,341,000 | 51,194,000 |
CURRENT LIABILITIES: | ||
Income taxes payable | 3,036,000 | |
Accounts payable | 399,000 | 597,000 |
Accrued contingency fees and related costs | 46,000 | 932,000 |
Accrued payroll | 277,000 | |
Other accrued expenses | 134,000 | 226,000 |
Total Current Liabilities | 3,615,000 | 2,032,000 |
LONG TERM LIABILITIES: | ||
Deferred tax liability | 680,000 | |
TOTAL LIABILITIES | 4,295,000 | 2,032,000 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $0.01 par value, authorized 10,000,000 shares; none issued and outstanding at September 30,2021 and December 31,2020 | ||
Common stock, $0.01 par value; authorized 50,000,000 shares; 24,099,629 and 24,105,879 shares issued and outstanding at September 30,2021 and December 31,2020,respectively | 241,000 | 241,000 |
Additional paid-in capital | 66,307,000 | 66,124,000 |
Accumulated deficit | (4,496,000) | (17,193,000) |
Accumulated other comprehensive loss | (6,000) | (10,000) |
TOTAL STOCKHOLDERS’ EQUITY | 62,046,000 | 49,162,000 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 66,341,000 | $ 51,194,000 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 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 or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 24,099,629 | 24,105,879 |
Common Stock, Shares, Outstanding | 24,099,629 | 24,105,879 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
REVENUE | $ 17,000,000 | $ 4,150,000 | $ 35,692,000 | $ 4,366,000 |
OPERATING EXPENSES: | ||||
Costs of revenue | 6,610,000 | 1,593,000 | 12,030,000 | 1,645,000 |
Professional fees and related costs | 721,000 | 267,000 | 1,384,000 | 790,000 |
General and administrative | 493,000 | 473,000 | 1,467,000 | 1,418,000 |
Amortization of patents | 74,000 | 72,000 | 221,000 | 216,000 |
Stock-based compensation | 65,000 | 85,000 | 183,000 | 242,000 |
TOTAL OPERATING EXPENSES | 7,963,000 | 2,490,000 | 15,285,000 | 4,311,000 |
OPERATING INCOME | 9,037,000 | 1,660,000 | 20,407,000 | 55,000 |
OTHER INCOME: | ||||
Interest and dividend income, net | 67,000 | 105,000 | 185,000 | 403,000 |
Net realized and unrealized gain (loss) on marketable securities | (40,000) | 68,000 | (32,000) | (48,000) |
Total other income, net | 27,000 | 173,000 | 153,000 | 355,000 |
INCOME BEFORE INCOME TAXES AND EQUITY IN NET LOSSES OF EQUITY METHOD INVESTEE | 9,064,000 | 1,833,000 | 20,560,000 | 410,000 |
INCOME TAXES PROVISION: | ||||
Current | 2,326,000 | 355,000 | 3,036,000 | (79,000) |
Deferred taxes, net | (37,000) | (355,000) | 1,635,000 | 79,000 |
Total income taxes provision | 2,289,000 | 4,671,000 | ||
INCOME BEFORE SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE: | 6,775,000 | 1,833,000 | 15,889,000 | 410,000 |
SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE | (186,000) | (146,000) | (632,000) | (644,000) |
NET INCOME (LOSS) | $ 6,589,000 | $ 1,687,000 | $ 15,257,000 | $ (234,000) |
Net Income (loss) per share | ||||
Basic | $ 0.28 | $ 0.07 | $ 0.63 | $ (0.01) |
Diluted | $ 0.27 | $ 0.07 | $ 0.62 | $ (0.01) |
Weighted average common shares outstanding: | ||||
Basic | 23,934,361 | 24,012,333 | 24,136,506 | 23,992,203 |
Diluted | 24,320,231 | 24,521,708 | 24,607,242 | 23,992,203 |
Cash dividends declared per share | $ 0.05 | $ 0.05 | $ 0.10 | $ 0.10 |
NET INCOME (LOSS) | $ 6,589,000 | $ 1,687,000 | $ 15,257,000 | $ (234,000) |
OTHER COMPREHENSIVE INCOME (LOSS) Net unrealized holding gain (loss) on corporate bonds and notes arising during the period, net of tax | (4,000) | (67,000) | 4,000 | (75,000) |
COMPREHENSIVE INCOME (LOSS) | $ 6,585,000 | $ 1,620,000 | $ 15,261,000 | $ (309,000) |
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 – June 30, 2020 at Dec. 31, 2019 | $ 240,000 | $ 65,824,000 | $ (12,636,000) | $ 79,000 | $ 53,507,000 |
Beginning Balance (in shares) 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 | |||
Vesting of restricted stock units | |||||
Vesting of restricted stock units (in shares) | 11,250 | ||||
Treasury stock purchased and retired | $ (1,000) | (153,000) | (154,000) | ||
Treasury stock purchased and retired (in shares) | (72,300) | ||||
Net other comprehensive loss | (183,000) | (183,000) | |||
Net income | (1,337,000) | (1,337,000) | |||
Balance – September 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 | ||||
Cashless exercise of stock options (in shares) | 105,000 | ||||
Shares delivered to fund stock option exercises | $ (1,000) | (1,000) | |||
Shares delivered to fund stock option exercises (in shares) | (100,293) | ||||
Balance – June 30, 2020 at Dec. 31, 2019 | $ 240,000 | 65,824,000 | (12,636,000) | 79,000 | 53,507,000 |
Beginning Balance (in shares) at Dec. 31, 2019 | 24,036,071 | ||||
Net income | (234,000) | ||||
Balance – September 30, 2020 at Sep. 30, 2020 | $ 240,000 | 66,065,000 | (15,664,000) | 4,000 | 50,645,000 |
Shares, Issued, Ending Balance at Sep. 30, 2020 | 24,033,076 | ||||
Balance – June 30, 2020 at Mar. 31, 2020 | $ 239,000 | 65,896,000 | (15,347,000) | (104,000) | 50,684,000 |
Beginning Balance (in shares) at Mar. 31, 2020 | 23,979,728 | ||||
Stock-based compensation | 85,000 | 85,000 | |||
Vesting of restricted stock units | |||||
Vesting of restricted stock units (in shares) | 11,250 | ||||
Treasury stock purchased and retired | (98,000) | (98,000) | |||
Treasury stock purchased and retired (in shares) | (43,589) | ||||
Net other comprehensive loss | 175,000 | 175,000 | |||
Net income | (584,000) | (584,000) | |||
Balance – September 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 | ||||
Dividends and dividend equivalents declared | (1,213,000) | (1,213,000) | |||
Stock-based compensation | 85,000 | 85,000 | |||
Vesting of restricted stock units | $ 1,000 | (1,000) | |||
Vesting of restricted stock units (in shares) | 136,250 | ||||
Net other comprehensive loss | (67,000) | (67,000) | |||
Net income | 1,687,000 | 1,687,000 | |||
Balance – September 30, 2020 at Sep. 30, 2020 | $ 240,000 | 66,065,000 | (15,664,000) | 4,000 | 50,645,000 |
Shares, Issued, Ending Balance at Sep. 30, 2020 | 24,033,076 | ||||
Value of shares delivered to pay withholding taxes (in shares) | (50,563) | ||||
Balance – June 30, 2020 at Dec. 31, 2020 | $ 241,000 | 66,124,000 | (17,193,000) | (10,000) | 49,162,000 |
Beginning Balance (in shares) 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 (in shares) | 11,250 | ||||
Net other comprehensive loss | 11,000 | 11,000 | |||
Net income | 9,451,000 | 9,451,000 | |||
Balance – September 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 – June 30, 2020 at Dec. 31, 2020 | $ 241,000 | 66,124,000 | (17,193,000) | (10,000) | 49,162,000 |
Beginning Balance (in shares) at Dec. 31, 2020 | 24,105,879 | ||||
Net income | 15,257,000 | ||||
Balance – September 30, 2020 at Sep. 30, 2021 | $ 241,000 | 66,307,000 | (4,496,000) | (6,000) | 62,046,000 |
Shares, Issued, Ending Balance at Sep. 30, 2021 | 24,099,629 | ||||
Balance – June 30, 2020 at Mar. 31, 2021 | $ 241,000 | 66,183,000 | (8,958,000) | 1,000 | 57,467,000 |
Beginning Balance (in shares) at Mar. 31, 2021 | 24,117,129 | ||||
Stock-based compensation | 59,000 | 59,000 | |||
Vesting of restricted stock units | |||||
Vesting of restricted stock units (in shares) | 11,250 | ||||
Treasury stock purchased and retired | (131,000) | (131,000) | |||
Treasury stock purchased and retired (in shares) | (40,000) | ||||
Net other comprehensive loss | (3,000) | (3,000) | |||
Net income | (783,000) | (783,000) | |||
Balance – September 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 | ||||
Dividends and dividend equivalents declared | (1,213,000) | (1,213,000) | |||
Stock-based compensation | 65,000 | 65,000 | |||
Vesting of restricted stock units | |||||
Vesting of restricted stock units (in shares) | 11,250 | ||||
Value of shares delivered to pay withholding taxes | (109,000) | (109,000) | |||
Net other comprehensive loss | (4,000) | (4,000) | |||
Net income | 6,589,000 | 6,589,000 | |||
Balance – September 30, 2020 at Sep. 30, 2021 | $ 241,000 | $ 66,307,000 | $ (4,496,000) | $ (6,000) | $ 62,046,000 |
Shares, Issued, Ending Balance at Sep. 30, 2021 | 24,099,629 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 15,257,000 | $ (234,000) |
Adjustments to reconcile net income (loss) to net cash | ||
Amortization of patents | 221,000 | 216,000 |
Stock-based compensation | 183,000 | 242,000 |
Loss from equity investment | 632,000 | 644,000 |
Deferred tax expense | 1,634,000 | |
Amortization of right of use asset, net | 41,000 | |
Unrealized (gain) loss on marketable securities | 9,000 | (10,000) |
Changes in operating asset and liabilities: | ||
Royalty receivables | 343,000 | |
Other current assets | 94,000 | 68,000 |
Accounts payable | (197,000) | (350,000) |
Income taxes payable | 3,036,000 | |
Security deposit | 8,000 | |
Operating lease obligations | (41,000) | |
Accrued expenses | (1,276,000) | (812,000) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 19,601,000 | 107,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Sales of marketable securities | 12,291,000 | 17,539,000 |
Purchases of marketable securities | (10,597,000) | (13,145,000) |
Development of patents | (86,000) | (50,000) |
Convertible note investment | (1,000,000) | |
NET CASH PROVIDED BY INVESTING ACTIVITIES | 608,000 | 4,344,000 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Cash dividends paid | (2,410,000) | (2,456,000) |
Value of shares delivered to fund withholding taxes | (109,000) | |
Repurchases of common stock, inclusive of commissions | (131,000) | (252,000) |
NET CASH USED IN FINANCING ACTIVITIES: | (2,541,000) | (2,817,000) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 17,668,000 | 1,634,000 |
CASH AND CASH EQUIVALENTS, beginning of period | 25,505,000 | 22,587,000 |
CASH AND CASH EQUIVALENTS, end of period | 43,173,000 | 24,221,000 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest | ||
Income taxes | ||
NON-CASH FINANCING ACTIVITY | ||
Accrued dividend rights on restricted stock units | $ 19,000 | $ 31,000 |
BASIS OF PRESENTATION AND NATUR
BASIS OF PRESENTATION AND NATURE OF BUSINESS | 9 Months Ended |
Sep. 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 September 30, 2021, and the results of its operations and comprehensive income (loss) for the three and nine month periods ended September 30, 2021 and September 30, 2020, changes in stockholders’ equity for the three and nine month periods ended September 30, 2021 and September 30, 2020, and its cash flows for the nine month period ended September 30, 2021 and September 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 nine months ended September 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-eight ( 88 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. NOTE A – BASIS OF PRESENTATION AND NATURE OF BUSINESS (continued) 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 | 9 Months Ended |
Sep. 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 5,835,000 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. NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ( continued [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 nine months ended September 30, 2021 was as a result of (i) 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) and (ii) settlement of a patent litigation with another licensee also involving the Remote Power Patent (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 a litigation settlement 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”). NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ( continued 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). NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ( continued [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 $ 15,257,000 NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ( continued [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 | 9 Months Ended |
Sep. 30, 2021 | |
Patents | |
PATENTS | NOTE C – PATENTS The include patents with estimated remaining economic useful lives ranging from 1.75 12 The gross carrying amounts and accumulated amortization related to acquired intangible assets as of September, 2021 and December 31, 2020 were as follows September 30, 2021 December 31, 2020 Gross carrying amount – patents $ 7,934,000 $ 7,848,000 Accumulated amortization – patents (6,490,000 ) (6,270,000 ) Patents, net $ 1,444,000 $ 1,578,000 NOTE C – PATENTS ( continued Amortization expense for the three months ended September 30 , 2021 and 2020 was 74,000 and $ 72,000 221,000 and $ 216,000 Future amortization of intangible assets, net is as follows: Twelve Months Ended September 30, 2022 $ 297,000 2023 297,000 2024 87,000 2025 87,000 2026 and thereafter 676,000 Total $ 1,444,000 The Company’s Remote Power Patent expired on March 7, 2020. All of the patents within the Company’s Mirror Worlds Patent Portfolio have expired. All of the patents within the Cox Patent Portfolio expired in September 2021 except for two patents which expire in July 2023 and November 2023. The expiration dates of patents within the Company’s M2M/IoT Patent Portfolio range from September 2033 to May 2034. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 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 NOTE D – STOCK-BASED COMPENSATION ( continued A summary of restricted stock unit activity for the nine months ended September 30, 2021 is as follows 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 1 (158,750 ) (2.35 ) Balance of unvested restricted stock units at September 30, 2021 48,750 $ 3.09 ______________________________ 1 Restricted stock unit compensation expense was $ 65,000 85,000 183,000 242,000 The Company has an aggregate of $ 94,000 0.76 All of the Company’s outstanding (unvested) restricted stock units have dividend equivalent rights. As of September 30, 2021, there was $ 72,000 53,000 |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 9 Months Ended |
Sep. 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 548,750 726,250 Computations of basic and diluted weighted average common shares outstanding were as follows: Nine Months Ended Three Months Ended 2021 2020 2021 2020 Weighted-average common shares outstanding – basic 24,136,506 23,992,203 23,934,361 24,012,333 Dilutive effect of options and restricted stock units 470,736 — 385,870 509,375 Weighted-average common shares outstanding – diluted 24,607,242 23,992,203 24,320,231 24,521,708 Options and restricted stock units excluded from the computation of diluted loss per share because the effect of inclusion would have been anti-dilutive — 726,250 — — |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 9 Months Ended |
Sep. 30, 2021 | |
Marketable Securities | |
MARKETABLE SECURITIES | NOTE F – MARKETABLE SECURITIES Marketable securities 30 , 2021 and December 31, 2020 were composed of: September 30, 2020 Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed income mutual funds $ 12,313,000 $ 3,000 $ — $ 12,316,000 Corporate bonds and notes 5,357,000 — (6,000 ) 5,351,000 Total marketable securities $ 17,670,000 $ 3,000 $ (6,000 ) $ 17,667,000 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 | 9 Months Ended |
Sep. 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) depending on the stage of the proceeding in which the result (settlement or judgment) is achieved 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) depending on the stage of the proceeding in which the result (settlement or judgment) is achieved Dovel & Luner, LLP provided 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 provided 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) depending on the stage of the preceding in which a result (settlement or judgment) is achieved 46,000 NOTE G – COMMITMENTS AND CONTINGENCIES (continued) 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) 1,385,000 1,421,000 [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 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 |
EMPLOYMENT ARRANGEMENTS AND OTH
EMPLOYMENT ARRANGEMENTS AND OTHER AGREEMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Employment Arrangements And Other Agreements | |
EMPLOYMENT ARRANGEMENTS AND OTHER AGREEMENTS | NOTE H - EMPLOYMENT ARRANGEMENTS AND OTHER AGREEMENTS [1] The Company's Chairman and Chief Executive Officer currently serves on an at-will basis at an annual base salary of $535,000. The Company's Chairman and Chief Executive Officer had served pursuant to a five-year employment agreement with the Company which expired in July 2021 (the "Prior Agreement"). Under certain terms of the Prior Agreement which survived its expiration, 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 receives incentive compensation in an amount equal to 5% of the Company's gross royalties or other payments from Licensing Activities (as defined) (without deduction of legal fees or any other expenses) with respect to its Remote Power Patent and a 10% net interest (gross royalties and other payments after deduction of all legal fees and litigation expenses related to licensing, enforcement and sale activities, but in no event shall he receive less than 6.25% of the gross recovery) of the Company's royalties and other payments relating to Licensing Activities with respect to patents other than the Remote Power Patent (including the Mirror Worlds Patent Portfolio, Cox Patent Portfolio and M2M/IoT Patent Portfolio) (collectively, the "Incentive Compensation"). During the three months ended September 30, 2021 and 2020 , the Chairman and Chief Executive Officer earned Incentive Compensation of $ 850,000 208,000 1,785,000 218,000 , respectively. NOTE H - EMPLOYMENT ARRANGEMENTS AND OTHER AGREEMENTS (continued) [2] 175,000 [3] 200,000 |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS | NOTE I – LEGAL PROCEEDINGS [1] 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 the Company’s Remote Power Patent. Under the terms of the settlement agreement, Hewlett-Packard Enterprise Company paid the Company $ 17,000,000 [2] 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 NOTE I – LEGAL PROCEEDINGS (continued) 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. Discovery has been substantially completed and a trial date has not yet been set. [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 | 9 Months Ended |
Sep. 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 7.3 NOTE J – INVESTMENT (continued) 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 For the three months ended September 30, 2021, the Company recorded a net loss from its equity investment in ILiAD totaling $ 186,000 632,000 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 September 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 | 9 Months Ended |
Sep. 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 | 9 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | NOTE L – CONCENTRATIONS Revenue from the Company’s Remote Power Patent constituted 100 100 100 100 95 no |
RELATED PARTY TRANSACTION
RELATED PARTY TRANSACTION | 9 Months Ended |
Sep. 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 | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
DIVIDEND POLICY | NOTE N – DIVIDEND POLICY The Company’s dividend policy consists of semi-annual cash dividends of $ 0.05 0.05 March 31, 2021 March 16, 2021 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE O – SUBSEQUENT EVENTS On October 26, 2021, the Company settled its litigation against Plantronics, Inc. in consideration for a payment of $3 37,000 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 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 5,835,000 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 nine months ended September 30, 2021 was as a result of (i) 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) and (ii) settlement of a patent litigation with another licensee also involving the Remote Power Patent (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 a litigation settlement 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”). NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ( continued 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 $ 15,257,000 |
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) | 9 Months Ended |
Sep. 30, 2021 | |
Patents | |
The gross carrying amounts and accumulated amortization related to acquired intangible assets as of September, 2021 and December 31, 2020 were as follows | The include patents with estimated remaining economic useful lives ranging from 1.75 12 The gross carrying amounts and accumulated amortization related to acquired intangible assets as of September, 2021 and December 31, 2020 were as follows September 30, 2021 December 31, 2020 Gross carrying amount – patents $ 7,934,000 $ 7,848,000 Accumulated amortization – patents (6,490,000 ) (6,270,000 ) Patents, net $ 1,444,000 $ 1,578,000 |
Future amortization of intangible assets, net is as follows: | Amortization expense for the three months ended September 30 , 2021 and 2020 was 74,000 and $ 72,000 221,000 and $ 216,000 Future amortization of intangible assets, net is as follows: Twelve Months Ended September 30, 2022 $ 297,000 2023 297,000 2024 87,000 2025 87,000 2026 and thereafter 676,000 Total $ 1,444,000 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
A summary of restricted stock unit activity for the nine months ended September 30, 2021 is as follows | A summary of restricted stock unit activity for the nine months ended September 30, 2021 is as follows 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 1 (158,750 ) (2.35 ) Balance of unvested restricted stock units at September 30, 2021 48,750 $ 3.09 ______________________________ |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 9 Months Ended |
Sep. 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: Nine Months Ended Three Months Ended 2021 2020 2021 2020 Weighted-average common shares outstanding – basic 24,136,506 23,992,203 23,934,361 24,012,333 Dilutive effect of options and restricted stock units 470,736 — 385,870 509,375 Weighted-average common shares outstanding – diluted 24,607,242 23,992,203 24,320,231 24,521,708 Options and restricted stock units excluded from the computation of diluted loss per share because the effect of inclusion would have been anti-dilutive — 726,250 — — |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Marketable Securities | |
Marketable securities | Marketable securities 30 , 2021 and December 31, 2020 were composed of: September 30, 2020 Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed income mutual funds $ 12,313,000 $ 3,000 $ — $ 12,316,000 Corporate bonds and notes 5,357,000 — (6,000 ) 5,351,000 Total marketable securities $ 17,670,000 $ 3,000 $ (6,000 ) $ 17,667,000 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) | 9 Months Ended | 26 Months Ended |
Sep. 30, 2021USD ($)Number | Mar. 07, 2020USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||
Gain Contingency, Patents Found Infringed upon, Number | Number | 88 | |
Cisco [Member] | Settlement And License Agreement [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 18,692,000 | |
Hewlett Packard [Member] | Settlement And License Agreement [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 17,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accounting Policies [Abstract] | ||||||||
Cash, FDIC Insured Amount | $ 250,000 | $ 250,000 | ||||||
Cash, Uninsured Amount | 5,835,000 | 5,835,000 | ||||||
NET INCOME (LOSS) | $ 6,589,000 | $ (783,000) | $ 9,451,000 | $ 1,687,000 | $ (584,000) | $ (1,337,000) | $ 15,257,000 | $ (234,000) |
The gross carrying amounts and
The gross carrying amounts and accumulated amortization related to acquired intangible assets as of September, 2021 and December 31, 2020 were as follows (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Patents, Gross | $ 1,444,000 | $ 1,578,000 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 7,934,000 | 7,848,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (6,490,000) | (6,270,000) |
Finite-Lived Patents, Gross | $ 1,444,000 | $ 1,578,000 |
Future amortization of intangib
Future amortization of intangible assets, net is as follows: (Details) | Sep. 30, 2021USD ($) |
Patents | |
Finite-Lived Intangible Asset, Expected Amortization, Year One | $ 297,000 |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 297,000 |
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 87,000 |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 87,000 |
Finite-Lived Intangible Asset, Expected Amortization, after Year Five | 676,000 |
Finite-Lived Intangible Assets, Net | $ 1,444,000 |
A summary of restricted stock u
A summary of restricted stock unit activity for the nine months ended September 30, 2021 is as follows (Details) | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Beginning Balance | shares | 162,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 2.25 |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | shares | 45,000 |
[custom:IssuanceWeightedaverageGrantDateFairValue] | $ / shares | $ 3.51 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | shares | (158,750) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value | $ / shares | $ (2.35) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Ending Balance | shares | 48,750 |
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price, Ending Balance | $ / shares | $ 3.09 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details Narrative) - Restricted Stock Units (RSUs) [Member] - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Payment Arrangement, Expense | $ 65,000 | $ 85,000 | $ 183,000 | $ 242,000 | |
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 94,000 | $ 94,000 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 9 months 3 days | ||||
[custom:AccruedDividendRightsOnRestrictedStockUnit] | $ 72,000 | $ 53,000 | |||
Stock Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
[custom:CommonStockOriginallyForIssuance] | 2,600,000 | ||||
Common Stock, Capital Shares Reserved for Future 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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net Income (loss) per share | ||||
Weighted-average common shares outstanding – basic | 23,934,361 | 24,012,333 | 24,136,506 | 23,992,203 |
Dilutive effect of options and restricted stock units | 385,870 | 509,375 | 470,736 | |
Weighted-average common shares outstanding – diluted | 24,320,231 | 24,521,708 | 24,607,242 | 23,992,203 |
Options and restricted stock units excluded from the computation of diluted loss per share because the effect of inclusion would have been anti-dilutive | 726,250 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details Narrative) - shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Net Income (loss) per share | ||
Weighted Average Number Diluted Shares Outstanding Adjustment | 548,750 | 726,250 |
Marketable securities (Details)
Marketable securities (Details) - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 |
Cost Basis [Member] | ||
Other Investment Not Readily Marketable [Line Items] | ||
Fixed income mutual funds | $ 11,255,000 | $ 12,313,000 |
Corporate bonds and notes | 4,500,000 | 5,357,000 |
Other Investments | 19,289,000 | 17,670,000 |
Other Investments | (19,289,000) | (17,670,000) |
Certificates of deposit | 3,534,000 | |
Gross Unrealized Gains [Member] | ||
Other Investment Not Readily Marketable [Line Items] | ||
Fixed income mutual funds | 80,000 | 3,000 |
Corporate bonds and notes | 18,000 | |
Other Investments | 105,000 | 3,000 |
Other Investments | (105,000) | (3,000) |
Certificates of deposit | 7,000 | |
Fair Value [Member] | ||
Other Investment Not Readily Marketable [Line Items] | ||
Fixed income mutual funds | 11,335,000 | 12,316,000 |
Corporate bonds and notes | 4,490,000 | 5,351,000 |
Other Investments | 19,366,000 | 17,667,000 |
Other Investments | (19,366,000) | (17,667,000) |
Certificates of deposit | 3,541,000 | |
Gross Unrealized Losses [Member] | ||
Other Investment Not Readily Marketable [Line Items] | ||
Corporate bonds and notes | (28,000) | (6,000) |
Other Investments | 28,000 | 6,000 |
Other Investments | $ (28,000) | $ (6,000) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Loss Contingencies [Line Items] | ||
Obligated to pay Cox, net proceeds percentage | 12.50% | |
First $125 Million | 10.00% | |
Next $125 Million | 15.00% | |
Recognition net proceeds payment related to Mirror Worlds patents | $ 3,127,000 | |
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 [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) depending on the stage of the proceeding in which the result (settlement or judgment) is achieved | |
Legal Service Agreement With Russ August Kabot One [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) depending on the stage of the proceeding in which the result (settlement or judgment) is achieved | |
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) depending on the stage of the preceding in which a result (settlement or judgment) is achieved | |
Accrued Liabilities and Other Liabilities | $ 46,000 | |
Legal Service Agreement With Dovel And Luner For Litigation Settlement Filed 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) | |
Legal Fees | $ 1,385,000 | $ 1,421,000 |
EMPLOYMENT ARRANGEMENTS AND O_2
EMPLOYMENT ARRANGEMENTS AND OTHER AGREEMENTS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Chairman and chief executive officer [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Salary and Wage, NonOfficer, Excluding Cost of Good and Service Sold | $ 850,000 | $ 208,000 | $ 1,785,000 | $ 218,000 |
Chief Financial Officer [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Salary and Wage, NonOfficer, Excluding Cost of Good and Service Sold | 175,000 | |||
Executive Vice President [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Salary and Wage, NonOfficer, Excluding Cost of Good and Service Sold | $ 200,000 |
LEGAL PROCEEDINGS (Details Narr
LEGAL PROCEEDINGS (Details Narrative) - USD ($) | Jul. 26, 2021 | May 09, 2017 | Sep. 30, 2021 | Mar. 30, 2021 |
Google [Member] | On April Four Two Thousand Fourteen And December Three Two Thousand Fourteen [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] | ||||
Amount of royalties paid bi 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 | Sep. 30, 2021 | Sep. 30, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Aggregrate investment | $ 6,000,000 | $ 6,000,000 | |
Equity investment | 5,000,000 | 5,000,000 | |
Convertable note investment | 1,000,000 | 1,000,000 | |
Iliad [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Aggregrate investment | 6,000,000 | 6,000,000 | |
Equity investment | 5,000,000 | 5,000,000 | |
Equity investment - net loss | $ 186,000 | $ 632,000 | |
Iliad [Member] | Class C Units [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Ownership percentage not fully diluted | 9.50% | 9.50% | |
Ownership percentage fully diluted | 7.30% | 7.30% | |
I Liad Biotechnologies L L C [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Additional convertable 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 | Sep. 30, 2021 | Jun. 08, 2021 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and 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, Excluding Share-based Payments and 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 | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | |||
Royalty receivables | $ 0 | $ 0 | $ 0 |
Licensees One [Member] | |||
Concentration Risk [Line Items] | |||
Royalty receivables percentage | 100.00% | 100.00% | |
Percentage revenue | 100.00% | 95.00% | |
Licensees Two [Member] | |||
Concentration Risk [Line Items] | |||
Percentage revenue | 100.00% |
RELATED PARTY TRANSACTION (Deta
RELATED PARTY TRANSACTION (Details Narrative) - USD ($) | May 27, 2021 | Sep. 30, 2021 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Number of shares, common stock repurchased | 8,645,659 | |
Average price per share, common stock repurchased | 1.88 | |
Aggregate cost of common stock repurchased | $ 16,286,805 | |
Board Of Directors [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Number of shares, common stock repurchased | 40,000 | 40,000 |
Average price per share, common stock repurchased | 3.27 | 3.27 |
Aggregate cost of common stock repurchased | $ 130,800 | $ 130,800 |
DIVIDEND POLICY (Details Narrat
DIVIDEND POLICY (Details Narrative) - $ / shares | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Feb. 28, 2021 | Feb. 23, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Semi-annual cash dividends per common share | $ 0.05 | $ 0.05 | $ 0.10 | $ 0.10 | ||
Board Of Directors [Member] | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Semi-annual cash dividends per common share | $ 0.05 | |||||
Divident payment date | Mar. 31, 2021 | |||||
Semi-annual cash dividend record date | Mar. 16, 2021 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) | Oct. 26, 2021USD ($) |
Plantronics [Member] | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Litigation Settlement, Expense | $ 37,000 |