Network-1 Security Solutions Inc. reported financial results for the first quarter ended March 31, 2013. The company had revenue of $4,064,000 for the three months March 31, 2013 as compared with revenue of $4,425,000 for the three months ended March 31, 2012. The decrease of $361,000 or 8% in revenue for the three months ended March 31, 2013 was primarily due to greater license initiation fees achieved from patent litigation settlements of $565,000 in the three months ended March 31, 2012 as compared with $258,000 in the three months ended March 31, 2013. Net of such license initiation fees, royalty revenue for the three months ended March 31, 2013 decreased 1.4% to $3,806,000 from $3,860,000. The company reported net income of $1,392,000 or $0.05 per share on a diluted basis for the three months ended March 31, 2013 as compared to $1,923,000 or $0.07 per share on a diluted basis for the three months ended March 31, 2012. Operating income was $2,049,000 against $2,358,000 a year ago. Income before income taxes was $2,055,000 against $2,367,000 a year ago.

Network-1 Security Solutions Inc. reported earnings results for the full year ended December 31, 2012. For the year, the company reported net income of $2,626,000 or $0.09 per diluted share as compared to $8,493,000 or $0.27 per diluted share last year. Royalty revenue was $8,698,000 as compared with $7,398,000 last year. Operating income was $3,333,000 compared to $1,533,000 last year. Income before income taxes was $3,372,000 compared to $1,581,000 last year.

On December 19, 2012, the board of directors of Network-1 Security Solutions Inc. elected Niv Harizman and Allison Hoffman as members of the board of directors. Mr. Harizman and Ms. Hoffman will serve as directors until their respective successors shall have been duly elected and qualified or until their respective earlier resignation or removal. Niv Harizman, age 48, is a Managing Member of Tyto Capital Partners LLC, a position he has held since August 2010. Allison Hoffman, age 42, has been providing legal services on a consulting basis since December 2012. From June 1999 to September 2012, Ms. Hoffman was employed by ALM Media LLC as Senior Vice President, Chief Legal Officer and Secretary (January 2007 September 2012), Vice President, General Counsel and Secretary (August 2001 to December 2006) and Assistant General Counsel (June 1999 July 2001).