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Quest Patent Research Corp (QPRC+7.50%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing revenues of $900,000, an increase from $250,000 in the same quarter the previous year. The revenue was generated from licenses pursuant to the settlement of patent infringement lawsuits in the TLL, DIP, and Multimodal Media portfolios.
Cost of revenues for the quarter was $651,518, compared to $327,759 in the previous year. These costs are associated with litigation and licensing expenses.
Selling, general, and administrative expenses increased to $764,292 from $598,296, primarily due to compensation expenses.
The company reported a net loss of $591,319 for the quarter, compared to a net loss of $833,286 in the previous year. The loss is attributed to operating expenses and interest expenses.
Cash used in operating activities was $235,581, while cash used in investing and financing activities was $0 and $191,121, respectively.
Quest had current assets of $1,132,939 and current liabilities of $11,814,286 as of September 30, 2024, resulting in negative working capital.
The filing also discusses agreements with QF3, QFL, and Intelligent Partners, which provide funding for operating expenses and patent acquisitions.
Quest continues to engage in litigation to enforce its patents, with recent actions involving companies such as Fortinet, Inc. (FTNT-0.39%), Sonicwall, Inc., and Samsung Electronics Co., Ltd.
The company acknowledges substantial doubt about its ability to continue as a going concern due to its history of losses, working capital deficiency, and reliance on litigation for revenue generation.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Quest Patent Research Corp quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.