Quest Patent Research Corporation

QPRC: 10-Q · periodic report

Quest Patent Research posted its first revenue in over a year, booking $2.0 million in patent licensing fees in Q2 2026 from the settlement of its Koyo portfolio suit against Samsung, but still lost $2.1 million ($0.40 per share) in the quarter and $5.1 million ($0.95 per share) for the first half, more than double the year-ago loss. The company disclosed substantial doubt about its ability to continue as a going concern, citing a $39.9 million accumulated deficit, roughly $31.1 million of negative working capital, just $480,606 of cash, and a low stock price that severely impairs its ability to raise funds. About 98% of accounts receivable is due from Samsung under the settlement, and management notes approximately 80% of the recovery is paid or payable to tax authorities, the patent seller, litigation funders and counsel; the company also carries $26.3 million of funding liabilities to QPRC Finance and QF3 that are payable only out of future IP monetization proceeds. Disclosure controls were deemed not effective due to ongoing material weaknesses (one person serving as CEO and acting CFO), the PTAB canceled all claims of four patents asserted against Samsung, and active infringement suits continue against Renesas, Denso, Seagate, Texas Instruments, Lenovo, QNAP and Bitdefender.

SEC 10-Q•2mo ago

QPRC: 10-Q · periodic report

Quest Patent Research Corp reported a net loss of $2.94 million for the first quarter of 2026, with zero revenue generated from its patent licensing activities. The company cited increased litigation expenses of $1.71 million related to its newly acquired Monterey Research portfolio, which was purchased for $9 million using non-recourse financing from QPRC Finance. The filing includes explicit going-concern language, stating that substantial doubt exists regarding the company's ability to continue as a going concern. This is driven by a $29.6 million working capital deficit, an accumulated deficit of $37.8 million, and severe limitations on raising capital due to low stock price and lack of an active trading market. Management also disclosed material weaknesses in internal controls over financial reporting. The company operates with only one full-time employee, who serves as both CEO and acting CFO without an accounting background, resulting in a lack of segregation of duties and excessive reliance on third-party consultants.

SEC 10-Q•5mo ago