Network-1 Technologies, Inc. (NYSE American: NTIP), a company specialized in patent licensing and management, has reported a change in its independent registered public accounting firm. On Wednesday, the company was notified by Marcum LLP, its previous accounting firm, that due to Marcum's acquisition by CBIZ (NYSE:CBZ), Inc., it had to resign from its role for the fiscal year ending December 31, 2024, due to a conflict of interest related to services performed by CBIZ.
The resignation was not initiated by Network-1 and did not involve any disagreement on financial disclosures, accounting principles, or auditing scope that would have merited a mention in Marcum's reports for the fiscal years 2022 and 2023. The financial statements for these periods did not carry any adverse opinions or disclaimers and were not subject to any qualifications regarding uncertainties, audit scope, or accounting principles.
As of the last interim period through Wednesday, Network-1 had no disagreements with Marcum on matters that would have impacted their financial reporting. Additionally, there were no reportable events as outlined under Regulation S-K Item 304(a)(1)(v).
Network-1 is currently in the process of selecting a new independent registered public accounting firm to handle its accounting needs for the current fiscal year. Marcum has provided a letter, dated Thursday, November 14, 2024, to the Securities and Exchange Commission confirming their agreement with the disclosures made by Network-1 in this transition.
The details of these changes are included in the company's latest SEC filing, which is based on a press release statement. The company's leadership, including Chairman and CEO Corey M. Horowitz, has taken the necessary steps to ensure compliance with the regulatory requirements during this changeover.
In other recent news, Network-1 Technologies has made noteworthy strides in its governance structure. The company recently held its Annual Meeting of Stockholders, resulting in the re-election of directors Corey M. Horowitz, Jonathan Greene, Allison Hoffman, and Niv Harizman. Horowitz, also the company's Chairman and CEO, garnered the highest approval with 12,296,860 votes in favor.
In addition, shareholders approved the compensation of the company's named executive officers in a non-binding advisory vote. The frequency of future non-binding advisory votes on executive compensation was also decided, with the majority favoring an annual frequency. Furthermore, Marcum LLP was ratified as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024.
InvestingPro Insights
Network-1 Technologies' recent accounting firm change comes amid a complex financial landscape for the company. According to InvestingPro data, Network-1 has a market capitalization of $30.64 million USD, with a notable revenue growth of 129.39% in the last twelve months as of Q3 2024. This substantial growth is particularly interesting given the company's focus on patent licensing and management.
Despite the strong revenue growth, InvestingPro Tips reveal that Network-1 has not been profitable over the last twelve months. This is reflected in the negative P/E ratio of -24.61 and an operating income margin of -92.77%. However, the company maintains a strong financial position, with InvestingPro Tips highlighting that Network-1 holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations.
Investors may find it noteworthy that Network-1 pays a significant dividend to shareholders, with a current dividend yield of 7.41%. This, combined with the fact that management has been aggressively buying back shares, suggests a commitment to returning value to shareholders despite current profitability challenges.
For those interested in a deeper analysis, InvestingPro offers 6 additional tips for Network-1 Technologies, providing a more comprehensive view of the company's financial health and prospects.
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