The past year has been a fruitful one for our Company as we have executed on several key initiatives designed around building a solid foundation from which we will create lasting value. On behalf of all of the hard working people at Spherix and the dedicated investors that have given us their constant support, I am pleased to update you on the progress that we have made over the last year and to summarize our substantial opportunities that await us in the years ahead. All long-term growth strategies require diligent focus, measured risk taking and careful execution. As we look forward to the next year, we remain confident that our business plan takes into account each of these pillars of success and positions us well to achieve our full potential.
Over the past twelve months, we have made outstanding progress on our strategy to monetize our existing assets and generate cash flows through the enforcement of our valuable patents.
The Company's license agreement with RPX Corporation in May, generated millions in revenue. Further, it resulted in the cancelation of preferred stock held by RPX with an original book value of over $30 million and it removed all restrictions and liens controlled by RPX. The RPX license demonstrated the value of our patents.
Over the past year, we have recognized the power of strong strategic partnerships as a means to achieving our goals. With this in mind, we entered into a collaborative agreement with Equitable IP to monetize a portion of Spherix's patent portfolio. Equitable IP is a patent enforcement and monetization fund that has brought together key leadership from the areas of investment fund management, patent litigation, and patent monetization strategy. Our monetization partnership with Equitable IP has resulted in the filing of nine new patent infringement lawsuits against defendants with a combined market capitalization of approximately $48 billion. Defendants include Frontier Communications, Cincinnati Bell, Echostar, ATN International, Sprint, ViaSat, Fortinet, GTT Communications and Dragonwave. This includes two (2) new suits recently filed against GTT Communications (International License Exchange of America, LLC v. GTT Communications, Inc. United States District Court of Delaware, Case No.: 1:16-cv-00796-UNA filed September 9th) and DragonWave, Inc. (International License Exchange of America, LLC v. DragonWave Inc. et al United States District Court of Delaware, Case No.: 1:16-cv-00797-UNA, filed September 9th).
The ten (10) patent infringement suits currently on file, represent more suits on file than at any other time in recent Company history. The speed at which we were able to achieve this is testament to the Company's accelerated effort to achieve a formidable stream of licensing revenues from these valuable patents. While we are pleased with the number of suits filed, we anticipate more in the future. In addition, our agreement with Equitable has reduced our monetization costs, as demonstrated by first half 2016 reduced expenditures on a YOY basis.
New Board Member
Just over a year ago, we announced the appointment of Howard E. Goldberg to our Board of Directors. As a recognized industry leader in intellectual property and patent monetization, Howard's insight, leadership and strategic relationships have proven to be a valuable asset to the Company. Today we are enthused to announce that Eric Weisblum has joined our Board. Eric is currently CEO and a Board Member at Point Capital Inc., a business development company that invests in small U.S. companies. Over the course of his nearly 20 year career, Eric has invested in over 100 public companies and has structured and traded a wide array of financial instruments. We fully expect Eric's contributions and guidance in the board room to have an immediate impact on our long term plans to strategically monetize our assets.
DatChat Letter of Intent
The secure messaging industry is a multi-billion dollar industry that is becoming increasingly more relevant every day. From healthcare to government, education and consumer, every single vertical is experiencing rapid growth in users and revenue. Earlier this month we announced a non-binding letter of intent to make a strategic investment in DatChat, Inc., a leader in the secure messaging industry. We are excited by the possibility of having a seat at the table in this explosive industry, which would also serve to diversify the composition of the net asset value of our Company.
We appreciate your support
The entire team at Spherix continues to work hard with the capital that you have entrusted us to build and grow for you as shareholders. Our combination of world class management and key strategic partners sets us apart in our industry and sets the stage for the value creation that we know we are capable of. We thank you for your investment and support and look forward to continuing our policy of open and transparent communication with our stakeholders.
Shareholder & CEO
Spherix Incorporated was launched in 1967 as a scientific research company. Spherix is committed to advancing innovation by active participation in the patent market. Spherix draws on portfolios of pioneering technology patents to partner with and support product innovation.
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"), not limited to Risk Factors relating to its patent business contained therein. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.
Brett Mass, Managing Partner
Phone: (646) 536-7331
Phone: (703) 992-9325
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SOURCE Spherix Incorporated