After a 52-week low, the time came for Network-1 Security Solutions Inc. (OTC:NSSI) to enjoy an all-time high on the stock market. Could it be that a reverse of the negative trend is coming? 
A free fall in terms of share price – this is what has happened in the last several months for NSSI. The bottom was reached last Thursday when the session closed at $1.20 per share. Nevertheless, the stock managed to regain some of its lost positions in the next two days. Monday was especially noticeable with more than 413k shares exchanging hands, which is a 52-week high, together with an increase in the share price, the session yesterday closing at $1.28 per share.
Otherwise, the only recent piece of news to come out from the company is the press release last Monday about Network-1 initiating patent litigation against 16 companies, among which are Hewlett-Packard, Alcatel-Lucent, Dell, Juniper etc. The target – seeking monetary damages based upon reasonable royalties. Yet to see what the outcome would be.
It is also interesting to mentioned that Network-1 has an interesting balance sheet. The 10-Q for the second quarter of 2011, for example, includes the following figures: [BANNER]
- $21.8 million in cash;
- $24.7 million in total current assets;
- $2.6 million in total current liabilities;
- $28.4 million in accumulated deficit;
- $1.8 million in royalty revenue;
- $6.6 million in net income;
Quite surprising, given the stock performance. After all, it is not every day that a penny stock enterprise has almost $22 million in cash handy, 10 times less in liabilities, and $6.6 million in revenue for just a quarter. But then again, the royalty revenue is almost 4 times less than the net income. In the meantime, the stock price has dropped seriously in the last months, despite the above results. In terms, there is still much uncertainty in place as to what comes next.
