Quest Patent Research Corp (QPRC)

[db7]

disclaimer I have no position here... from reading the 10Q it looks like they finally got a sizable settlement BUT then owed it all right back out of the coffers?


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We generated revenue from patent fees of approximately $6,200,000 and approximately $7,049,000 for the three and six months ended June 30, 2018, respectively, from settlements in the power management portfolio actions. We generated revenue from patent fees of approximately $621,000 for the three and six months ended June 30, 2017, from settlements in the anchor structure portfolio actions. Because the settlements represent one-time payments, the timing and receipt of which cannot be predicted or planned, the timing of our revenue is dependent upon the timing of any settlements of litigation with no assurance as to when or whether any action will be settled in a manner which generates either revenue or cash flow to us.



Operating expenses for the three months ended June 30, 2018 increased by approximately $4,707,000, or 626%, compared to the three months ended June 30, 2017. Operating expenses for the six months ended June 30, 2018 increased by approximately $5,596,000, or 581%, compared to the six months ended June 30, 2017. Our principal operating expense for both the three and six months ended June 30, 2018 was litigation and licensing expenses of approximately $5,210,000 and $6,009,000, respectively, which represent fees payable to attorneys and third-party funding sources associated with the power management portfolio settlements. These fees became payable as a result of settlement agreements that provided for a recovery



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