Revenue Performance - Generated $23.3 million in consolidated revenue for Q3 2024, up 131% from $10.1 million in Q3 2023[4] - Total revenues for the three months ended September 30, 2024, were $23.3 million, a significant increase from $10.1 million in the same period last year, representing a 130.7% growth[13] - Total revenues for the three months ended September 30, 2024, were $23.31 million, a significant increase from $10.08 million in the same period of 2023, representing a 131.5% year-over-year growth[25] - Energy Operations contributed $15.8 million in revenue, while Industrial Operations generated $7.0 million, reflecting a decrease from $8.3 million in the same quarter last year[10] - Intellectual property operations generated revenues of $0.49 million for the three months ended September 30, 2024, compared to $1.76 million in the same period of 2023, reflecting a decline of 72.2%[25] - Energy operations reported revenues of $15.82 million for the three months ended September 30, 2024, with no revenues recorded in the same period of 2023, indicating a strong market entry[25] Financial Losses - Recorded a GAAP net loss of $14.0 million, or $0.14 diluted net loss per share, compared to a net income of $1.6 million, or $0.03 diluted net income per share in Q3 2023[10] - GAAP net loss for the three months ended September 30, 2024, was $(14.0) million, compared to a net income of $1.6 million in the same period last year[13] - Net loss attributable to Acacia Research Corporation for the three months ended September 30, 2024, was $(13.99) million, compared to a net income of $1.64 million in the same period of 2023[26] - The company reported a basic net loss per common share of $(0.14) for the three months ended September 30, 2024, compared to $(0.02) for the same period in 2023[26] Operating Performance - Achieved Total Company Adjusted EBITDA of $1.7 million for Q3 2024, with Operated Segment Adjusted EBITDA of $6.9 million[4] - Total Company Adjusted EBITDA for the three months ended September 30, 2024, was $6,332 thousand, compared to a GAAP operating loss of $2,087 thousand[34] - For the nine months ended September 30, 2024, the consolidated total Adjusted EBITDA was $6,332 thousand, with Parent Costs at $(4,103) thousand[34] - The operating loss for the three months ended September 30, 2024, was $(10.3) million, an improvement from $(13.2) million in the prior year[13] - The operating loss for the three months ended September 30, 2024, was $(10.27) million, an improvement from $(13.15) million in the same period of 2023[25] - The Energy Operations reported a GAAP operating income of $156 thousand, with depreciation, depletion, and amortization expenses of $422 thousand[34] - The Industrial Operations had a GAAP operating loss of $(234) thousand, with depreciation and amortization expenses of $683 thousand[30] - Intellectual Property Operations Adjusted EBITDA was not specified for the three months ended September 30, 2024, but the GAAP operating loss was $(7,138) thousand[36] Cash Flow and Assets - Generated $70.4 million in operating cash flow during the nine months ended September 30, 2024[3] - Cash, cash equivalents, and equity investments measured at fair value totaled $374.2 million as of September 30, 2024, down from $403.2 million at December 31, 2023, primarily due to acquisitions and stock repurchases[16] - Cash and cash equivalents increased to $360.05 million as of September 30, 2024, up from $340.09 million as of December 31, 2023[24] - Total assets rose to $707.57 million as of September 30, 2024, compared to $633.55 million as of December 31, 2023, reflecting a growth of 11.6%[24] Liabilities and Equity - Total liabilities increased to $129.01 million as of September 30, 2024, compared to $43.94 million as of December 31, 2023, indicating a significant rise in financial obligations[24] - Acacia's total indebtedness was $70.0 million in non-recourse debt as of September 30, 2024, while the parent company's total indebtedness was zero[16] - Book value per share was $5.85 at September 30, 2024, down from $5.90 at December 31, 2023[3] - The book value per share as of September 30, 2024, was $5.85, which would have been $6.00 excluding non-recurring legal expenses of $14.9 million[17] Stock Repurchase and Acquisitions - Acquired Deflecto Acquisition, Inc. for $103.7 million, expected to generate approximately $128-$136 million in revenue in 2024[4] - Repurchased 3.0 million shares for $14.0 million as part of the stock repurchase program[3] - The company has repurchased 3,007,294 common shares for $14.0 million as part of its stock repurchase program, which has a cap of $20.0 million[18] - The company’s cash reserves were approximately $280 million for potential future transactions following the Deflecto acquisition[3] Other Financial Metrics - General and administrative expenses were $11.1 million, a decrease from $11.6 million in the same quarter last year[10] - Unrealized losses for the three months ended September 30, 2024, were $(4.1) million, compared to unrealized gains of $8.8 million in the prior year[13] - The company reported a realized hedge gain of $800 thousand for the three months ended September 30, 2024[34] - Legacy matter costs for Parent were $2,193 thousand for the three months ended September 30, 2024[34] - Stock-based compensation for the three months ended September 30, 2024, was $858 thousand, with $415 thousand attributed to Parent Costs[34] - The company emphasizes that Adjusted EBITDA is a non-GAAP financial measure intended to provide investors with useful supplemental information[34]

Core Viewpoint - The article discusses the investment position of the analyst in ACTG shares, indicating a beneficial long position through various means such as stock ownership and options [1]. Group 1 - The analyst expresses personal opinions regarding the investment without receiving compensation from any company mentioned [1]. - There is an emphasis on the lack of business relationships with any companies whose stocks are discussed in the article [2]. - The article highlights that past performance is not indicative of future results, and no specific investment recommendations are made [3].

Core Insights - The article discusses the investment potential of ACTG shares, highlighting a beneficial long position held by the analyst [1]. Group 1 - The analyst expresses a personal opinion on ACTG shares, indicating a positive outlook based on their own analysis [1]. - There is no compensation received for the article, suggesting an independent viewpoint [1]. - The article does not provide specific investment recommendations or advice, maintaining a neutral stance on suitability for investors [2].

Financial Data and Key Metrics - Consolidated revenue for Q2 2024 was $25.8 million, up 227% YoY and 121% compared to the first six months of 2023, driven by the acquisition of operated producing wells in the Western Anadarko Basin [8] - Intellectual property operations revenue increased by $4.9 million YoY due to more license agreements executed during the quarter [8] - Energy operations delivered $14.2 million in Q2 revenue, while industrial operations revenue decreased by $1.2 million due to lower printer sales [8] - Adjusted EBITDA for the intellectual property business was $8.5 million, Printronix generated $2.3 million, and Benchmark generated $8.4 million in the first six months of 2024 [9] - Book value per share was $5.95 as of June 30, 2024, compared to $5.90 at the end of 2023 [10] Business Line Performance - Intellectual property business generated $5.3 million in licensing revenue, up over 200% YoY due to increased license agreements and higher average fees [20] - Printronix (industrial operations) generated $6.3 million in revenue, down from $7.5 million YoY due to lower printer sales, but operating losses decreased due to cost improvements [17][21] - Benchmark (energy operations) delivered $14.2 million in revenue, with $7 million in adjusted EBITDA for Q2, reflecting partial results from the April acquisition [14][21] Market and Strategic Focus - Acacia focuses on acquiring businesses with stable cash flow generation and scalability, particularly in Technology, Energy, and Industrials [6][7] - The company’s energy strategy involves acquiring mature, long-lived assets and optimizing production through field enhancements and low capital intensity [13] - Acacia’s intellectual property business continues to evaluate new patent portfolios for acquisition, with the Wi-Fi 6 portfolio representing a lucrative opportunity [15][16] Management Commentary on Environment and Outlook - Management remains cautious about market volatility but believes the impact on underlying businesses will be negligible [18] - The M&A environment remains constructive, with a strong pipeline of opportunities, particularly in oil and gas, industrials, and technology [18][19] - Acacia’s strategic relationship with Starboard enhances its sourcing and operating network, providing access to industry expertise and acquisition opportunities [26] Other Important Information - Acacia’s cash, cash equivalents, and equity securities totaled $405.2 million as of June 30, 2024, with no parent company debt and $82 million in non-recourse debt at Benchmark [24][25] - The company’s hedge book covers approximately 70% of net oil and gas production over the next three years, with significant realized and unrealized derivative gains and losses [14] Q&A Session Summary Question: Share buyback plans - Acacia is evaluating the timing of executing its authorized share buyback program [28] Question: Benchmark revenue expectations for Q3 - Management suggested interpolating revenue estimates for Q3 based on data provided in the investor deck [30] Question: Benchmark’s operating income ratio - Management highlighted that EBITDA is a better metric for evaluating profitability, with the business performing as expected [32] Question: Drivers of Benchmark’s revenue growth - Revenue growth will be driven by operational improvements to existing wells, cost optimization, and potential partnerships for undeveloped acreage [34][35][36] Question: G&A expenses related to Benchmark - Acacia consolidates 73.5% of Benchmark’s G&A expenses, with adjustments for minority interest [38] Question: Printronix turnaround progress - Management is pleased with Printronix’s progress in transitioning to higher-margin consumables and reducing operating costs [41] Question: Operating cash flow for H1 2024 - The $71 million operating cash flow was driven by patent settlements recorded as revenue in Q4 2023, with cash received in H1 2024 [45]

Financial Performance - Total revenues for the quarter ended June 30, 2024, were $25.8 million, a significant increase from $7.9 million in the same quarter of 2023, representing a 227% year-over-year growth[25]. - The net loss attributable to Acacia Research Corporation for the quarter was $8.4 million, an improvement from a net loss of $18.8 million in the same quarter of 2023[22]. - Basic net loss per common share was $0.08, compared to $0.36 in the prior year, indicating a reduction in loss per share[23]. - Total costs and expenses for the quarter were $30.6 million, up from $20.4 million in the same quarter of 2023, reflecting increased operational activities[25]. - Operating loss for the quarter was $4.8 million, a decrease from $12.5 million in the same quarter of the previous year[25]. - The net loss for the six months ended June 30, 2024, was $9.018 million, slightly improved from a net loss of $9.332 million in the same period of 2023[39]. - Operating activities generated net cash of $70.955 million, a significant recovery from a cash outflow of $19.122 million in the prior year[39]. Revenue Sources - Intellectual property operations generated revenues of $5.3 million, compared to $0.4 million in the prior year, marking a 1,233% increase[25]. - Energy operations contributed $14.2 million in revenues for the quarter, with no prior year comparison as this segment was newly established[25]. - For the three months ended June 30, 2024, paid-up license revenue agreements generated $4,888,000, a significant increase from $75,000 in the same period of 2023[65]. - Recurring License Revenue Agreements for the same period totaled $445,000, up from $319,000 in 2023[65]. - Total license revenues for the three months ended June 30, 2024, reached $5,333,000, compared to $394,000 in 2023, marking a substantial growth[65]. - Printronix's net revenues for the three months ended June 30, 2024, were $6,335,000, down from $7,510,000 in 2023[72]. - For the six months ended June 30, 2024, Printronix reported total revenues of $15,176,000, a decrease from $18,137,000 in the same period of 2023[72]. - Benchmark's total revenue for the three months ended June 30, 2024, was $14,170,000, compared to $16,026,000 in 2023[78]. Assets and Liabilities - Acacia Research Corporation's total liabilities and stockholders' equity stood at $753.6 million as of June 30, 2024, compared to $633.5 million in the previous year[19]. - As of June 30, 2024, cash and cash equivalents increased to $386.988 million from $340.091 million at the beginning of the period, reflecting an increase of $46.897 million[39]. - Total stockholders' equity increased to $335.433 million as of June 30, 2024, up from $269.322 million at the end of 2022[34]. - The company reported a change in fair value of equity securities amounting to $31.445 million, compared to a loss of $9.960 million in the previous year[39]. - The company’s oil and natural gas properties had a net value of $192.6 million as of June 30, 2024, significantly up from $25.1 million as of December 31, 2023[128]. Investments and Acquisitions - The company invested $10 million to acquire a 50.4% equity interest in Benchmark Energy II, LLC, which includes over 13,000 net acres and interests in over 125 wells[50]. - On April 17, 2024, Benchmark completed a transaction to acquire upstream assets in Texas and Oklahoma for $145 million, with the company's contribution being $59.9 million[52]. - The company recognized an asset retirement obligation of $28.8 million as part of the acquisition of oil and gas producing properties[117]. Stock and Shareholder Information - The weighted average number of shares outstanding increased to 100,079,803 from 58,408,711 in the prior year, affecting per share calculations[23]. - Starboard Value, LP holds approximately 60.9% of the common stock, providing access to industry expertise for evaluating acquisition opportunities[45]. - The Board approved a stock repurchase program for up to $20.0 million, with a cap of 5,800,000 shares of common stock[196]. - No stock repurchases occurred under this program for the three and six months ended June 30, 2024[196]. - The 2024 Acacia Research Corporation Stock Incentive Plan reserves 11,168,000 shares for issuance, plus 1,421,848 shares transferred from the 2016 Plan[204]. Expenses and Costs - The company recorded a compensation expense for share-based awards of $1.749 million for the six months ended June 30, 2024, compared to $1.351 million in the same period of 2023[39]. - The total amortization expense for other intangible assets for the six months ended June 30, 2024, was $7.5 million, compared to $6.1 million for the same period in 2023, indicating a year-over-year increase of approximately 22.95%[136]. - The company’s asset retirement obligation as of June 30, 2024, was $29,261,000, with a current portion of $1,543,000[139]. Tax and Legal Matters - The company's effective tax rates were (44)% and (8)% for the three months ended June 30, 2024 and 2023, respectively, and (48)% and 10% for the six months ended June 30, 2024 and 2023, respectively[108]. - As of June 30, 2024, the company had total unrecognized tax benefits of approximately $757,000, which would impact the effective tax rate if recognized[110]. - An accrual of $14.5 million was recorded as of June 30, 2024, related to a dispute involving former executives' profit interests, which will result in a payment in Q3 2024[192]. Miscellaneous - The company has not obtained control of any new patent portfolios during the six months ended June 30, 2024[48]. - The company has made no material payments related to guarantees and indemnities, estimating the fair value of its obligations to be immaterial[193]. - The lease for the New York office was amended to extend the term for Unit 601 for 40 months commencing on April 1, 2024, with annual rent increases[181].

Revenue Growth - Consolidated revenue for Q2 2024 was $25.8 million, representing a 227% increase compared to $7.9 million in Q2 2023[4] - Total revenues for the first six months of 2024 reached $50.2 million, up 121% from $22.7 million in the same period of 2023[3] - Total revenues for Q2 2024 reached $25,838,000, a significant increase from $7,904,000 in Q2 2023, representing a growth of 227% year-over-year[20] - Intellectual property operations generated revenues of $5,333,000 in Q2 2024, compared to $394,000 in Q2 2023, marking a growth of 1,253%[20] - Energy operations contributed $14,170,000 in revenues for Q2 2024, with no revenues reported in Q2 2023[20] - Benchmark generated approximately $14.2 million in revenue during Q2 2024, contributing significantly to the overall revenue growth[5] Financial Performance - Acacia recorded a GAAP net loss of $8.4 million, or $0.08 diluted net loss per share, for Q2 2024, an improvement from a net loss of $18.8 million, or $0.36 per share, in Q2 2023[7] - The company reported a net loss attributable to Acacia Research Corporation of $8,446,000 for Q2 2024, an improvement from a net loss of $18,779,000 in Q2 2023[25] - Adjusted EBITDA for Q2 2024 was $4.1 million, with a total of $10.4 million for the first half of 2024[4] - Adjusted EBITDA for Q2 2024 was $4,091,000, compared to $6,332,000 in Q1 2024, indicating a decrease in operational performance[28] - Excluding the impact of a $12.9 million accrual related to the AIP Matter, the diluted net loss per share for Q2 2024 would have been $0.02[8] Assets and Liabilities - Cash, cash equivalents, and equity investments measured at fair value totaled $405.2 million at June 30, 2024, compared to $403.2 million at December 31, 2023[10] - Total current assets decreased to $493,934,000 as of June 30, 2024, down from $554,512,000 at the end of 2023[18] - The company’s total liabilities increased significantly to $156,848,000 as of June 30, 2024, compared to $43,936,000 at the end of 2023[18] - Cash and cash equivalents rose to $386,988,000 as of June 30, 2024, up from $340,091,000 at the end of 2023[18] Costs and Expenses - The company incurred total costs and expenses of $30,596,000 in Q2 2024, compared to $20,433,000 in Q2 2023, reflecting a 50% increase[21] Shareholder Information - The company's book value per share increased to $5.95 as of June 30, 2024, compared to $5.90 at December 31, 2023[4] - The weighted average number of shares outstanding increased to 100,079,803 in Q2 2024, compared to 58,408,711 in Q2 2023, indicating a dilution effect on earnings per share[26] Acquisitions - The acquisition of upstream assets in Texas and Oklahoma added approximately 470 operated producing wells and expanded Benchmark's portfolio by about 140,000 net acres[5]

Group 1: Inseego (INSG) - Inseego leads in 5G and IoT solutions, achieving a non-GAAP gross margin of 38.7% in Q1 2024, marking one of its highest levels in seven quarters due to favorable product mix and operational efficiencies [3][4] - The company reported $12.3 million in cash as of Q1, a significant increase from the previous year, and terminated its Asset-Based Lending arrangement, enhancing liquidity and reducing interest costs [4] - Inseego's strategic focus on capital optimization and cost reduction positions it as a strong candidate for growth and profitability [4] Group 2: Oscar Health (OSCR) - Oscar Health, a technology-driven health insurance company, reported $177.4 million in net profits for Q1 2024, a $217.1 million increase year-over-year [6][7] - The company achieved an adjusted EBITDA of $219.3 million, reflecting a year-over-year rise of $168.2 million, indicating strong financial stability [6] - Oscar's selling, general, and administrative expenditure ratio decreased by 8.7% to 18.4%, while its medical loss ratio increased by 2.1% to 74.2%, showcasing effective management of healthcare expenses [7] Group 3: Acacia Research (ACTG) - Acacia Research reported an EPS of 6 cents in Q1 2024, indicating potential profitability after non-recurring costs, with an operating loss improvement from $9.3 million in Q1 2023 to $2.1 million [8][9] - The company held over $400 million in cash and marketable securities as of Q1, providing flexibility for expansion opportunities [9] - Acacia Research maintains a cautious debt profile with total non-recourse debt at $13.0 million and a sound balance sheet structure, highlighted by a $28.6 million realized gain from the sale of Arix Bioscience [9]

Investors with any experience in the world of penny stocks know that risk is real. That risk is higher as the price of shares goes lower. Thus, stocks trading between $5 and $10 are somewhat more stable than their sub-$5 counterparts. Stocks in the $5 to $10 price range have generally passed major tests and become more stable in the process. That's true of all of the shares discussed below. These shares also appear to be poised for breakouts moving forward. Furthermore, all of the stocks discussed below hav ...

Core Viewpoint - Acacia Research (NASDAQ: ACTG) is a business development company focusing on acquiring, managing, and selling small to mid-sized companies across various sectors, including industrial, energy, technology, and healthcare [3][4]. Business Overview - Acacia Research is primarily owned (61%) by Starboard Value LP, an investment adviser [3]. - The company operates in three main business lines: patent licensing, industrial operations, and energy operations [3][4]. - Recent acquisition includes a 50.4% stake in Benchmark Energy II, an independent oil and gas company [4]. Financial Performance - For the most recent earnings release, revenues from the three business lines are as follows: - Intellectual property operations: $13.6 million in 2024 (up from $4.2 million in 2023) - Industrial operations: $8.8 million in 2024 (down from $10.6 million in 2023) - Energy operations: $1.9 million in 2024 (newly reported) [5]. - Patent licensing is the largest revenue source, but growth may not continue as no new patent portfolios were purchased in the recent quarter [5][6]. Cash Position - The company has $438 million in cash and cash equivalents, equating to $4.38 per share, which is approximately 79% of the current share price of $5.55 [9]. - Remaining current assets of about $114 million exceed total liabilities, indicating a strong cash position [9]. Valuation Metrics - Acacia Research has an overall A- valuation grade, with strong enterprise value metrics [11]. - Key valuation metrics include: - EV / Sales (TTM): 0.70 (A grade) - EV / EBITDA (TTM): 2.07 (A+ grade) - Price / Book (TTM): 0.98 (B grade) [12]. Investment Considerations - The company’s performance is characterized by high variability due to its business model, making future performance difficult to forecast [5][16]. - Despite the risks, the significant cash position provides a buffer against potential downturns, leading to a cautious but optimistic investment outlook [16].

Core Insights - The article highlights three stocks under $5 that present significant investment opportunities in the gold industry, healthcare technology, and specialty finance sectors [1][2]. Group 1: Acacia (ACTG) - Acacia's oil and gas subsidiary, Benchmark, has expanded its portfolio through a significant acquisition in Texas and Oklahoma, which is expected to generate approximately $50 million in asset-level cash flow in 2024 [3][4]. - Total sales for Acacia increased from $14.8 million to $24.3 million in Q1 2024, with a notable rise in licensing and other revenue from the intellectual property sector [4]. - Acacia has eliminated non-recourse debt at Benchmark and paid off senior secured notes, resulting in a debt-free parent company and a healthier financial position [4]. Group 2: CareCloud (CCLD) - CareCloud has reduced yearly expenditures by nearly $22 million since October 2023, leading to a Q1 2024 GAAP operational gain of $129,000, a significant improvement from a loss of $223,000 in Q1 2023 [5]. - The company's Q1 2024 GAAP net loss decreased to $241,000 from $401,000, and it reported an adjusted EBITDA of $3.7 million [5]. - CareCloud's free cash flow in Q1 2024 was $2.2 million, up from $2.0 million in Q1 2023, allowing for a reduction in debt commitments [6]. Group 3: New Gold (NGD) - New Gold generated substantial cash from operations amounting to $73 million in Q1 2024, despite reduced sales compared to Q1 2023, maintaining $530 million in total liquidity and $157 million in cash [7]. - The company invested over $35 million in growth capital during Q1, focusing on development initiatives to increase production capacity [7]. - New Gold's safety statistics indicate a commitment to responsible mining, with a total recordable injury frequency rate (TRIFR) of 0.92 in Q1 [8].