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RYE, N.Y., March 28, 2024 /PRNewswire/ -- Quest Patent Research Corporation (OTCQB: QPRC) (the "Company" or "Quest"), announced today the results of its operations for the year ended December 31, 2023. For the year ended December 31, 2023, the Company generated net income of approximately $3.6 million, or $0.68 per share (basic and diluted), on revenues of approximately $13.2 million as compared to a loss of approximately $0.8 million on revenues of $0.5 million for the year ended December 31, 2022. Revenue from both years was generated from the settlement of patent infringement litigation. The Company's balance sheet, statement of operations and statements of cash flows are included as exhibits to this press release.

About Quest Patent Research Corporation

Quest is an intellectual property asset management company. Its principal operations include the acquisition, licensing and enforcement of intellectual property rights that are either owned or controlled by the Company. Quest currently owns, controls or manages 22 intellectual property portfolios of which it is currently seeking or may seek monetization with respect to twelve portfolios, which principally consist of patent rights. Quest's business is described in its annual report on Form 10-K for the year ended December 31, 2023, which was filed with the Securities and Exchange Commission on March 28, 2024. Quest's website is www.qprc.com. Information contained on or derived from Quest's website, or any other website or any social media does not constitute a part of this press release.

Cautionary Note Regarding Forward-Looking Statements

This press release and the earnings call contain "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. The words "expect," "believe," "estimate," "intend," "plan," "anticipate," "may," "should," "strategy," "future," "will," "project," "potential" and similar expressions indicate forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. These risks and uncertainties include, but are not limited to the risk that the Quest may not generate any significant revenue or operate profitably in the future and the other risks described in "Forward Looking Statements," "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Quest's Form 10-K for the year ended December 31, 2023, which was filed with the Securities and Exchange Commission on March 28, 2024.

QUEST PATENT RESEARCH CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
	December 31,
	2023	2022

ASSETS
Current assets
Cash and cash equivalents	$ 563,484	$ 90,601
Accounts receivable, net of allowance for credit losses of $0 and $0, respectively	3,008,250	-
Other current assets	28,121	5,321
Total current assets	3,599,855	95,922

Patents, net of accumulated amortization of $2,412,397 and $1,625,846, respectively	3,674,603	1,131,154
Total assets	$ 7,274,458	$ 1,227,076

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable and accrued liabilities	296,536	148,533
Loans payable	138,000	138,000
Funding liability	7,325,502	5,453,204
Loan payable - related party	2,796,500	2,796,500
Warrant liability	281,809	145,428
Accrued interest	1,096,985	904,573
Total current liabilities	11,935,332	9,586,238

Non-current liabilities
Loan payable - SBA	150,000	150,000
Purchase price of patents	53,665	53,665
Total liabilities	12,138,997	9,789,903

Commitments and contingencies (Note 10)

Stockholders' deficit:
Preferred stock, par value $0.00003 per share - authorized 10,000,000 shares - no shares issued and outstanding	-	-
Common stock, par value $0.00003 per share; authorized 30,000,000 at December 31, 2023 and 2022; 5,331,973 shares issued and outstanding at December 31, 2023 and December 31, 2022	160	160
Additional paid-in capital	17,674,985	17,626,279
Accumulated deficit	(22,539,912)	(26,189,494)
Total Quest Patent Research Corporation stockholders' deficit	(4,864,767)	(8,563,055)
Non-controlling interest in subsidiary	228	228
Total stockholders' deficit	(4,864,539)	(8,562,827)
Total liabilities and stockholders' deficit	$ 7,274,458	$ 1,227,076

QUEST PATENT RESEARCH CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Year Ended December 31,
	2023	2022
Revenues
Patent licensing fees	$ 13,152,500	$ 451,194
Cost of revenue
Litigation and licensing expenses	5,534,596	303,671
Gross margin	7,617,904	147,523

Operating expenses
Selling, general and administrative expenses	2,740,554	1,979,718
Total operating expenses	2,740,554	1,979,718

Income (loss) from operations	4,877,350	(1,832,195)

Other income (expense)
Change in fair market value of warrant liability	(136,381)	1,490,759
Interest expense	(1,061,387)	(413,333)
Total other income (expense)	(1,197,768)	1,077,426

Income (loss) before income tax	3,679,582	(754,769)

Income tax benefit (expense)	(30,000)	1,253

Net income (loss)	$ 3,649,582	$ (753,516)

Income (loss) per share - basic and diluted	$ 0.68	$ (0.14)

Weighted average shares outstanding - basic and diluted	5,331,973	5,331,973

QUEST PATENT RESEARCH CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

	Year Ended December 31,
	2023	2022
Cash flows from operating activities:
Net income (loss)	$ 3,649,582	$ (753,516)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
Change in fair market value of warrant liability	136,381	(1,490,759)
Stock-based compensation	48,706	117,412
Amortization of intangible assets	786,552	910,326

Change in operating assets and liabilities:
Accounts receivable	(3,008,250)	-
Accrued interest	192,415	412,602
Other current assets	(22,800)	6,984
Accounts payable and accrued liabilities	147,999	19,108
Patents loan payable	-	(136,335)
Net cash provided by (used in) operating activities	1,930,585	(914,178)

Cash flows from investing activities:
Purchase of intangible assets	(3,330,000)	(1,502,000)
Net cash used in investing activities	(3,330,000)	(1,502,000)

Cash flows from financing activities:
Payments on loans - related party	-	(8,500)
Proceeds from funding liability	6,000,000	2,303,000
Payment of funding liability	(4,127,702)	(52,561)
Net cash provided by financing activities	1,872,298	2,241,939

Net increase (decrease) in cash and cash equivalents	472,883	(174,239)

Cash and cash equivalents at beginning of period	90,601	264,840

Cash and cash equivalents at end of period	$ 563,484	$ 90,601

Non-cash investing and financing activities:
Interest added to principal	$ 5,625	$ 4,895

Supplemental disclosure of cash flow information:
Cash paid during the period for:
Income taxes	$ 30,000	$ (1,253)
Interest	$ 969,930	$ -

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SOURCE Quest Patent Research Corporation