Spherix Inc (NASDAQ:SPEX) has issued an update to shareholders, regarding its current patent infringement lawsuits and cost reduction initiatives. In the update, the CEO of SPEX, Anthony Hayes, claimed that the company was now in the optimum position to provide true value to shareholders, through its patent portfolio. He pointed out that during the last six months; Spherix had effectuated a total of ten new infringement lawsuits. It should be noted here that these patents together carry a market capitalization value of $48 billion.
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The company updated that it has more lawsuits filed, at the moment, than at any point in time, during the last four years. However, SPEX noted that it was working closely with its partner, Equitable IP, to reach fair settlements with any of the licensees. Mr. Hayes expressed his confidence in the potential filing of additional lawsuits, during the rest of the year. He stated that the management was encouraged with its current position and believes they would be able to create a sustainable share value, in the near future.
However, Spherix is not only making progress with its lawsuits, but also towards improving its financial position. The CEO, in the update, noted that they were making significant progress in reducing their overhead costs, thereby recording a decline in their monthly cash burn. He pointed towards the financial statements from the last two quarters, where the company recorded a sequential decline in expenses, which is expected to continue in future financial statements. SPEX also indicated that it currently has $7 million in cash, which coupled with declining costs could result in ample runway for achieving success.
Mr. Hayes closed by stating that patent infringement lawsuits tend to be long and would require immense patience on account of the shareholders. He also accepted the fact that each of their current lawsuits varied in size, complexity and scope. The management expects to obtain similar results, from its lawsuits, like the one it received this May, when it was awarded a multi-million settlement from RPX.
Spherix Inc (NASDAQ:SPEX) closed at $1.51 per share, at the end of the October 18 trading session, 27.84% higher than the previous close, after having a trade volume of 4.68 million.