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Recent Developments
−Removed: In December 2024, we completed two private placement transactions with accredited investors for net proceeds of $5 million.
−Removed: These proceeds will be used to fund our operations in 2025.
−Removed: On September 6, 2024, the CAFC issued its opinion in our long-standing patent infringement action against Qualcomm.
−Removed: The CAFC ruled in our favor on each of the issues we appealed and remanded the case back to the Middle District of Florida (Orlando) where the case was reopened.
−Removed: We are currently awaiting rulings from the district court on a number of outstanding motions, after which the court will schedule a pre-trial conference and a trial date.
+Added: Legal Proceedings
+Added: In March 2026, our patent enforcement trial against MediaTek, scheduled to commence in the Western District of Texas, was postponed by the court pending updates to expert reports and related briefings by the parties.
+Added: The court will issue a revised pretrial and trial schedule following its receipt of these submissions.
+Added: In January 2026, the CAFC granted our motion for an expected appeal of district court decisions in our patent infringement action against Qualcomm in the Middle District of Florida (Orlando division).
+Added: Briefings by both parties are expected to be completed by March 2026 with oral arguments scheduled by the CAFC for the next available session after completion of briefing.
+Added: Refer to Note 12 to our consolidated financial statements included in Item 8 for a complete discussion of our patent enforcement proceedings.
+Added: In March 2026, we issued 3.3 million shares of our common stock in satisfaction of approximately $0.7 million in convertible debt and related accrued interest that was scheduled to mature in March 2026.
+Added: In November 2025, we completed two registered direct offerings with accredited investors under a shelf registration statement ("Shelf") for net proceeds of approximately $4.4 million.
+Added: These proceeds are being used to fund our ongoing operations.
Liquidity and Capital Resources
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For the year ended December 31, 2025, we incurred a net loss of approximately $7.4 million and used cash for operations of approximately $5.1 million.
−Removed: A significant amount of future proceeds that we may receive from our patent enforcement and licensing programs will first be utilized to repay borrowings, legal fees, and litigation expenses under our contingent funding arrangements.
−Removed: In addition, we have approximately $1.6 million in convertible debt that, if not converted, will mature between July 2025 and March 2026.
+Added: A significant amount of future proceeds that we may receive from our patent enforcement and licensing programs will be utilized to repay borrowings, legal fees, and litigation expenses under our contingent funding arrangements.
+Added: We have $0.9 million in convertible debt, at conversion prices ranging from $0.08 to $0.13 per share, with maturity dates between July 2026 and January 2027 that we anticipate will be converted or extended in accordance with the current terms of the notes.
+Added: Additionally, we issued 3.3 million shares of our common stock in March 2026 in satisfaction of $0.7 million in convertible debt and related accrued interest that matured in March 2026.
+Added: Although all of our remaining convertible notes have conversion prices that are below the market price of our common stock, conversion is at the option of the holder and there can be no assurance that the holders will exercise their conversion option prior to maturity.
Our independent registered public accounting firm has included in their audit report an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern.
See Note 2 to our consolidated financial statements included in Item 8 for a discussion of our liquidity and our ability to continue as a going concern.
−Removed: We used cash for operations of approximately $3.2 million for the year ended December 31, 2024 and generated cash from operations of $10.8 million for the year ended December 31, 2023.
−Removed: The increase in cash used for operations from 2023 to 2024 is primarily due to proceeds received from the patent license and settlement agreement entered into in February 2023, net of contingent legal fees and expenses paid.
−Removed: We made payments of $13.9 million on our secured contingent payment obligation during the year ended December 31, 2023, and paid approximately $0.2 million and $0.3 million in other debt obligations during the years ended December 31, 2024 and 2023, respectively.
−Removed: During the year ended December 31, 2024, we received aggregate net proceeds from equity-based financings and option and warrant exercises of approximately $5.8 million, compared to aggregate net proceeds of $5.9 million from debt and equity-based financings and option exercises during the year ended December 31, 2023, including $5.0 million in new borrowings under our secured contingent payment obligation.
+Added: We used cash for operations of approximately $5.1 million and $3.2 million for the years ended December 31, 2025 and 2024, respectively.
+Added: The increase in cash used for operations from 2024 to 2025 is primarily due to reductions in wages payable and other accrued liabilities from 2024 to 2025, along with an increase in prepaid insurance and prepaid services in 2025.
+Added: We paid approximately $0.1 million and $0.2 million in debt obligations during the years ended December 31, 2025 and 2024, respectively.
+Added: During the years ended December 31, 2025 and 2024, we received aggregate net proceeds from equity-based financings and option and warrant exercises of approximately $4.8 million and $5.8, respectively.
Significant portions of our litigation costs to date have been funded by contingent payment arrangements with legal counsel.
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We expect to continue to invest in the support of our patent enforcement and licensing programs.
−Removed: We expect that cash flows generated from proceeds received from patent enforcement actions and/or technology licenses in 2025, after deduction of contingent payment obligations, will not be sufficient to cover our operating expenses and debt repayment obligations.
+Added: We expect that cash flows generated from proceeds received from patent enforcement actions and/or technology licenses in 2026, after deduction of contingent payment obligations, may not be sufficient to cover our operating expenses and debt repayment obligations.
In the event we do not generate revenues, or other patent-related proceeds, sufficient to cover our operational costs and contingent repayment obligations, we will be required to raise additional working capital through the sale of debt or equity securities or other financing arrangements.
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As of December 31, 2025, we have repaid Brickell an aggregate of $17.3 million to date under these agreements.
−Removed: The contingent payment obligation to Brickell is recorded at its estimated fair market value of $40.7 million at December 31, 2024, an increase of $11.3 million or 39% from the estimated fair market value at December 31, 2023.
−Removed: This increase in fair value is primarily the result of changes in the estimated amounts and timing of projected future cash flows due to changes in probabilities and time frames based on the status of various patent infringement actions, particularly as a result of the favorable CAFC decision received in September 2024 that remanded the Qualcomm case back to district court.
+Added: The contingent payment obligation to Brickell is recorded at its estimated fair market value of $39.7 million at December 31, 2025, a decrease of $1.1 million or 3% from the estimated fair market value at December 31, 2024.
+Added: This decrease in fair value is primarily the result of changes in the estimated amounts and timing of projected future cash flows due to changes in probabilities and time frames based on the status of various patent infringement actions.
Brickell is entitled to the first $5.8 million in proceeds received by us, net of contingent legal fees, from any patent-related actions.
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These contingent payment obligations are payable from our share of patent-related proceeds after satisfaction of our priority obligation to Brickell and payment of contingent fees to legal counsel.
−Removed: These unsecured contingent payment obligations are recorded at an aggregate estimated fair value of $5.9 million at December 31, 2024, representing a decrease of $1.7 million from the estimated fair market value at December 31, 2023.
−Removed: This decrease is primarily the result of changes in the estimated amounts and timing of projected future cash flows due to changes in probabilities and time frames based on the status of various patent infringement actions.
+Added: These unsecured contingent payment obligations are recorded at an aggregate estimated fair value of $6.4 million at December 31, 2025, representing an increase of $0.5 million, or 8.5% from the estimated fair market value at December 31, 2024.
+Added: This increase is primarily the result of changes in the estimated amounts and timing of projected future cash flows due to changes in probabilities and time frames based on the status of various patent infringement actions.
The maximum payment obligation for our unsecured contingent payment obligations is $10.8 million at December 31, 2025.
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The decrease in the carrying value of our convertible notes is the result of approximately $0.4 million in notes that were converted into approximately 3.0 million shares of our common stock during 2025.
−Removed: The outstanding convertible notes as of December 31, 2024 mature at varying dates from July 2025 to January 2028.
+Added: The outstanding convertible notes as of December 31, 2025 mature at varying dates from January 2026 to January 2028.
Notes representing approximately 45% of the outstanding principal balance are held by a single party and contain provisions for automatic extension of the maturity dates of the notes by up to ten one-year periods, if not revoked at the option of the holder.
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Revenues and Gross Margins
−Removed: We reported no licensing revenue for the year ended December 31, 2024.
−Removed: Licensing revenue was $25 million for the year ended December 31, 2023.
+Added: We reported no licensing revenue for the years ended December 31, 2025 and 2024.
Our licensing revenue is from patent licensing and settlement agreements resulting from patent enforcement actions filed by us.
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Our licensing revenue is expected to vary based on the market size of the licensee and the specific terms of the license and settlement agreement.
−Removed: Our licensing proceeds in 2023 were used to pay contingent out-of-pocket expenses and fees incurred by our litigation counsel and to repay a portion of our secured contingent payment obligations.
−Removed: The contingent out-of-pocket expenses, which are recognized in the same period as the corresponding revenue, are included in selling, general and administrative expenses.
Although we anticipate additional revenue to result from our licensing and patent enforcement actions, the amount and timing is highly unpredictable and there can be no assurance that we will achieve our anticipated results.
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Selling, general and administrative expenses consist primarily of executive, director, technical support, and finance and administrative personnel and third-party consulting costs, including share-based compensation, costs incurred for insurance, shareholder relations and outside legal and professional services, including litigation expenses, and maintenance expenses related to our patent assets.
−Removed: Our selling, general and administrative expenses were approximately $4.3 million for the year ended December 31, 2024, as compared to approximately $14.7 million for the year ended December 31, 2023, representing a decrease of approximately $10.5 million or 71%.
−Removed: This decrease results primarily from a $10.7 million decrease in litigation fees and expenses.
−Removed: We recognized approximately $11.1 million in contingent litigation expenses resulting from patent license and settlement arrangements for the year ended December 31, 2023.
−Removed: No contingent litigation expense was recognized during the year ended December 31, 2024.
−Removed: The contingent legal fees and expenses recognized are generally proportionate to the amount of gross proceeds received from our confidential patent license and settlement agreements.
+Added: Our selling, general and administrative expenses were approximately $7.6 million for the year ended December 31, 2025, as compared to approximately $4.3 million for the year ended December 31, 2024, representing an increase of approximately $3.3 million or 78%.
+Added: This increase results primarily from a $2.9 million increase in total share-based compensation and a $0.8 million increase in third-party consulting and lobbying fees, partially offset by a $0.4 million decrease in personnel related expenses.
+Added: The increase in share-based compensation is the result of new share-based compensation awards to non-employee directors and third-party consultants, as well as a one-time, noncash charge of $2.5 million which reflects the compensation cost recognized upon the modification of awards for executives and key employees during the second quarter of 2025 to extend the maturity date of those awards by five years.
+Added: The increases in third-party consulting and lobbying fees is a result of increased expenditures related to our social media and public awareness campaigns and business and financial advisory services incurred in 2025.
+Added: The decrease in personnel related expenses is due to 2024 bonuses to executives and other key employees, partially offset by increased base salaries for executives and key employees in 2025.
Change in Fair Value of Contingent Payment Obligations
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Increases or decreases in the significant unobservable inputs could result in material increases or decreases in fair value.
−Removed: Generally, changes in fair value are a result of changes in estimated amounts and timing of projected future cash flows resulting from increases in funded amounts, passage of time, and changes in the probabilities based on the litigation status of the funded actions.
−Removed: For the year ended December 31, 2024, we recorded a net increase in the aggregate fair value of our secured and unsecured contingent payment obligations of approximately $9.6 million.
−Removed: The majority of the change in fair value is attributable to changes in the estimated amounts and timing of projected future cash flows due to changes in the litigation status of various patent infringement actions, including the September 2024 CAFC remand of our infringement action against Qualcomm back to district court for trial.
+Added: Generally, changes in fair value are a result of changes in estimated amounts and timing of projected future cash flows resulting from increases in funded amounts, changes in estimated potential proceeds, the passage of time, and changes in the probabilities based on the litigation status of the funded actions.
+Added: For the year ended December 31, 2025, we recorded a net decrease in the aggregate fair value of our secured and unsecured contingent payment obligations of approximately $0.6 million, compared to an increase in the aggregate fair value of approximately $9.6 million for the year ended December 31, 2024.
+Added: The majority of the change in fair value is attributable to changes in the estimated amounts and timing of projected future cash flows due to changes in the litigation status of various patent infringement actions.
+Added: The significant increase in fair value in 2024 was, in part, the result of a September 2024 favorable CAFC decision that remanded our infringement action against Qualcomm to the district court.
Critical Accounting Policies
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Actual results could differ materially from the estimates made.
−Removed: Changes in fair value, including the component related to imputed interest, are included in the consolidated statements of comprehensive (loss) income under the heading “Change in fair value of contingent payment obligations.” Refer to Note 10 to our consolidated financial statements included in Item 8 for a discussion of the significant estimates and assumptions used in estimating the fair value of our contingent payment obligations.
+Added: Changes in fair value, including the component related to imputed interest, are included in the consolidated statements of comprehensive loss under the heading “Change in fair value of contingent payment obligations.” Refer to Note 10 to our consolidated financial statements included in Item 8 for a discussion of the significant estimates and assumptions used in estimating the fair value of our contingent payment obligations.
New Accounting Pronouncements
−Removed: In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures.
−Removed: This update modifies reportable segment disclosure requirements, primarily through enhanced disclosures about segment expenses categorized as significant or regularly provided to the Chief Operating Decision Maker (CODM).
−Removed: In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, and contain other disclosure requirements.
−Removed: ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.
−Removed: We adopted this standard during the fiscal year ended December 31, 2024.
−Removed: Other than additional disclosure, there was no material impact on our consolidated financial statements upon adoption.
−Removed: Refer to Note 17 to our consolidated financial statements included in Item 8 for the new disclosure.
−Removed: In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures.
−Removed: This update requires enhanced disclosures on income taxes paid, adds disaggregation of continuing operations before income taxes between foreign and domestic earnings, and defines specific categories for the reconciliation of jurisdictional tax rate to effective tax rate.
−Removed: This ASU is effective for fiscal years beginning after December 15, 2024, and can be applied on a prospective basis.
−Removed: We are currently evaluating the effect of adopting this new accounting guidance.
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) - Disaggregation of Income Statement Expenses.
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ASU 2024-04 is effective for reporting periods beginning after December 15, 2025, and interim periods within those annual reporting periods.
−Removed: Early adoption is permitted for entities that have adopted ASU 2020-06.
+Added: Early adoption is permitted for entities that have adopted ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity (Subtopics 470-20 and 815-40).
We are currently evaluating the impact of this new accounting guidance.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.