Financial Data and Key Metrics Changes - The GAAP book value at March 31, 2024, was $589.6 million or $5.89 per share, compared to $5.90 per share at December 31, 2023 [14][18] - Total revenues for the first quarter were $24.3 million, up from $14.8 million in the same quarter last year, reflecting a significant increase [19] - The net loss attributable to Acacia was $0.2 million or $0.00 per share, compared to a net income of $9.4 million or a loss of $0.07 per diluted share in the first quarter of last year [22] Business Line Data and Key Metrics Changes - The intellectual property business generated $13.6 million in licensing and other revenue during the quarter, compared to $4.2 million in the same quarter last year, indicating strong growth [19] - Printronix generated $8.8 million in revenues during the quarter, down from $10.6 million in the same quarter last year [20] - Benchmark, the energy operations unit, generated $1.9 million in revenue during the quarter, excluding gains on hedging contracts [20] Market Data and Key Metrics Changes - The cash, cash equivalents, and equity securities at fair value totaled $461.7 million at March 31, 2024, compared to $403.2 million at December 31, 2023 [23] - Cash per share stood at $4.39 per share as of March 31, 2024 [24] Company Strategy and Development Direction - The company is focused on two main strategies: growing cash flow and earnings from current businesses and evaluating opportunities to acquire new businesses [5] - The acquisition of Benchmark significantly expands the portfolio, adding approximately 140,000 net acres and 470 operated producing wells [9] - The company aims to deploy capital into new acquisitions across various sectors, including industrials, technology, and healthcare [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the M&A environment, noting a strong pipeline of opportunities in both public and private markets [13] - The company is not reliant on leverage for returns and is seeing traditional banks reemerging, which may allow for opportunistic leverage use [13] - Management indicated that while they are not looking to make macro-related bets, a hard landing could present good buying opportunities [40] Other Important Information - The company has approximately $400 million in capital to deploy into new acquisitions [12] - The Board of Directors nominated Michelle Felman as an independent director, bringing extensive experience in real estate, finance, and investing [15][16] Q&A Session Summary Question: Valuation of Benchmark - The investment in Benchmark is marked at cost, and the book value did not increase due to deal-related expenses [26][27] Question: Expected EBITDA from Benchmark - Benchmark is expected to generate approximately $45 million in EBITDA, with Acacia entitled to 73.5% of that amount [28][30] Question: Acquisition Strategy - The company is looking for acquisitions with a favorable risk/reward profile and is not focused on making acquisitions for the sake of it [37][38] Question: Cash on Balance Sheet - Cash and cash equivalents were reported at $439 million, with the total including equity securities at $460 million [43][44] Question: Stock Buyback Plans - The company has not yet bought back any stock, evaluating opportunities for acquisitions instead [48][50] Question: Income from Liquidity - Interest income for the quarter was reported at $4.9 million [60]

Table of Contents SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ______________ Commission file number: 001-37721 Acacia Research Corporation (Name of registrant as specified in its charter) Delaware 95-4405754 (Stat ...

Revenue and Financial Performance - Total revenues for Q1 2024 were $24.3 million, a significant increase from $14.8 million in Q1 2023, driven by $13.6 million from intellectual property operations[2][4] - Total revenues for Q1 2024 were $24,320 thousand, a significant increase from $14,803 thousand in Q1 2023[17] - Intellectual property operations revenue grew to $13,623 thousand in Q1 2024, compared to $4,176 thousand in Q1 2023[17] - Industrial operations revenue decreased to $8,841 thousand in Q1 2024 from $10,627 thousand in Q1 2023[17] - Energy operations generated $1,856 thousand in revenue in Q1 2024, a new segment not present in Q1 2023[17] - Benchmark Energy generated $1.9 million in revenue in Q1 2024, with no comparable revenue in Q1 2023[2][5] Net Income and Loss - GAAP net loss for Q1 2024 was $0.2 million, or $0.00 per share, compared to a net income of $9.4 million in Q1 2023[2][4] - Net loss attributable to Acacia Research Corporation was $186 thousand in Q1 2024, compared to a net income of $9,447 thousand in Q1 2023[17] - Operating loss improved to $2,087 thousand in Q1 2024 from $9,324 thousand in Q1 2023[17] Cash and Investments - Acacia holds $461.7 million in cash, cash equivalents, and equity investments as of March 31, 2024, up from $403.2 million at the end of 2023[8] - The company has $400 million in cash and marketable securities, net of cash deployed in Benchmark's recent acquisition[1] - Cash and cash equivalents increased to $438,762 thousand as of March 31, 2024, up from $340,091 thousand at the end of 2023[16] Asset and Equity Changes - Book value per share at March 31, 2024 was $5.89, or $5.95 excluding a $6.2 million accrual related to the AIP Matter[2][9] - Accounts receivable decreased to $15,372 thousand as of March 31, 2024, down from $80,555 thousand at the end of 2023[16] - Total assets slightly decreased to $631,725 thousand as of March 31, 2024, from $633,545 thousand at the end of 2023[16] - Equity securities investments showed a change in fair value of $26,701 thousand loss in Q1 2024, compared to a $3,343 thousand gain in Q1 2023[17] Acquisitions and Divestitures - The company completed the sale of Arix Bioscience Plc shares for $57.1 million, realizing a gain of $28.6 million[2] - Benchmark's recent acquisition added 140,000 net acres and 470 operated producing wells in the Western Anadarko Basin[2] Expenses - General and administrative expenses increased to $12.4 million in Q1 2024, up from $12.0 million in Q1 2023[5] Life Sciences Portfolio - Acacia's life sciences portfolio has generated $564.1 million in proceeds from sales and royalties, with remaining positions valued at $25.7 million[7]

Acacia Research Corporation (NASDAQ:ACTG) Q4 2023 Earnings Conference Call March 14, 2024 4:30 PM ET Company Participants Rob Fink - FNK, Investor Relations MJ McNulty - Chief Executive Officer Kirsten Hoover - Interim Chief Financial Officer Conference Call Participants Anthony Stoss - Craig-Hallum Brett Reiss - Janney Montgomery Scott Operator Good afternoon, everyone. And welcome to the Acacia Research Fourth Quarter and Year End 2023 Financial Results Call. At this time, all participants are in a listen ...

Part I This section outlines Acacia Research Corporation's business, strategic focus, operational structure, and key risks including legal proceedings [Business](index=5&type=section&id=Item%201.%20Business) Acacia Research Corporation focuses on acquiring and managing undervalued companies across industrial, energy, and intellectual property segments, supported by its strategic relationship with Starboard Value LP - The company focuses on acquiring and managing businesses across the industrial, energy, technology, and healthcare sectors, particularly targeting companies with market values of **$1 billion** or less[12](index=12&type=chunk)[14](index=14&type=chunk) - A strategic relationship with controlling shareholder Starboard Value, LP provides access to industry expertise, operating partners, and assistance in sourcing and evaluating acquisition opportunities[17](index=17&type=chunk) - In July 2023, a recapitalization was completed, resulting in Starboard converting its preferred stock and exercising warrants. As of March 11, 2024, Starboard beneficially owns approximately **61.2%** of the company's common stock[19](index=19&type=chunk) [Our Operations](index=8&type=section&id=Our%20Operations) The company's operations are diversified across Intellectual Property, Energy, and Industrial (Printronix) business segments - The Intellectual Property business has generated approximately **$1.8 billion** in gross licensing revenue to date, with over 1,600 license agreements executed[31](index=31&type=chunk) - In November 2023, the company invested **$10.0 million** to acquire a **50.4%** equity interest in Benchmark Energy II, LLC, establishing its Energy Operations business[32](index=32&type=chunk) - In February 2024, Benchmark agreed to acquire certain assets from Revolution Resources for **$145.0 million** in cash, a transaction expected to close in Q2 2024 and increase Acacia's interest in Benchmark to approximately **73.1%**[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - The Industrial Operations business was established through the October 2021 acquisition of Printronix Holding Corp., a leading manufacturer of industrial impact printers[37](index=37&type=chunk) [Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) The company faces various risks including acquisition integration, reliance on Starboard, segment-specific challenges, and cybersecurity threats - The consummation of the Revolution Transaction is subject to conditions and its failure to close could adversely affect the company's business and stock price[50](index=50&type=chunk)[51](index=51&type=chunk) - The company's growth strategy of acquiring operating businesses involves significant risks, including integration difficulties, potential for unknown liabilities, and diversion of management attention[54](index=54&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk) - Due to Starboard's majority ownership (**approx. 61.2%**), Acacia is a "controlled company" under Nasdaq rules and may rely on exemptions from certain corporate governance requirements, such as having a majority of independent directors[83](index=83&type=chunk)[84](index=84&type=chunk) - The Intellectual Property business is subject to risks from evolving patent laws, fluctuating legal expenses, and the inherent uncertainty of litigation outcomes[89](index=89&type=chunk)[94](index=94&type=chunk)[97](index=97&type=chunk) - The Energy Operations business is exposed to risks from volatile oil and gas prices, inflationary pressures on costs, and potential regulatory changes related to climate change and seismic activity[106](index=106&type=chunk)[110](index=110&type=chunk)[139](index=139&type=chunk) - The Industrial Operations business (Printronix) faces risks from its reliance on a limited number of customers, potential supply chain interruptions for key components, and the need to continuously develop new products[153](index=153&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk) [Cybersecurity](index=33&type=section&id=Item%201C.%20Cybersecurity) Acacia integrates cybersecurity risk management into its enterprise framework, overseen by the Audit Committee, with no material incidents to date - The company has integrated cybersecurity risk management into its broader risk framework, aligned with standards from CIS and NIST[175](index=175&type=chunk)[176](index=176&type=chunk) - The Audit Committee of the Board of Directors provides oversight for cybersecurity policies and risks[183](index=183&type=chunk) - To date, no cybersecurity incidents have materially affected the company's business strategy, results of operations, or financial condition[180](index=180&type=chunk) [Properties](index=34&type=section&id=Item%202.%20Properties) The company maintains leased corporate and operational offices, with segment-specific facilities including manufacturing sites and energy assets - The company's corporate headquarters are in a leased space of approximately 8,600 square feet in New York, NY[184](index=184&type=chunk) - The Energy Operations business holds over 13,000 net acres and an interest in over 125 wells, primarily in Texas and Oklahoma[188](index=188&type=chunk) [Legal Proceedings](index=35&type=section&id=Item%203.%20Legal%20Proceedings) Acacia is subject to various legal actions, particularly in its Intellectual Property segment, including an ongoing lawsuit with Slingshot Technologies - The company is involved in a lawsuit with Slingshot Technologies, LLC, which alleges misappropriation of information related to a patent portfolio acquisition. The case was transferred to the Delaware Superior Court in September 2023[526](index=526&type=chunk) Part II This section covers the company's common stock market, dividend policy, MD&A of financial performance, liquidity, market risk, and internal controls [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=36&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Acacia's common stock trades on Nasdaq, with no expected dividends and a recently approved $20 million share repurchase program - The company's common stock trades on The Nasdaq Global Select Market under the symbol "ACTG"[195](index=195&type=chunk) - A stock repurchase program was approved in November 2023, authorizing up to **$20 million** in share buybacks. No shares were repurchased under this program as of December 31, 2023[197](index=197&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's 2023 financial performance, highlighting a 111% revenue increase, net income turnaround, liquidity, and critical accounting estimates [Results of Operations](index=43&type=section&id=Results%20of%20Operations) Total revenues increased 111% to $125.1 million in 2023, driven by Intellectual Property, leading to a significant shift from loss to income before taxes Summary of Results of Operations (2023 vs. 2022) | | Years Ended December 31, | | | | :--- | :--- | :--- | :--- | | (In thousands, except percentage change values) | 2023 | 2022 | $ Change | % Change | | Total revenues | $ 125,102 | $ 59,223 | $ 65,879 | 111 % | | Total costs and expenses | 104,166 | 99,315 | 4,851 | 5 % | | Operating income (loss) | 20,936 | (40,092) | 61,028 | (152 %) | | Total other income (expense) | 46,490 | (87,058) | 133,548 | (153 %) | | Income (loss) before income taxes | 67,426 | (127,150) | 194,576 | (153 %) | | Income tax benefit | 1,504 | 16,211 | (14,707) | (91 %) | | Net income (loss) attributable to Acacia Research Corporation | 67,060 | (125,065) | 192,125 | (154 %) | - Intellectual Property Operations revenues increased by **$69.6 million** (**357%**) in 2023, primarily due to a single patent portfolio generating significant license revenue in the fourth quarter[238](index=238&type=chunk)[247](index=247&type=chunk) - Industrial Operations (Printronix) revenue decreased by **$4.6 million** (**12%**) due to lower sales of printer units[238](index=238&type=chunk)[251](index=251&type=chunk) - There was a significant positive change in the valuation of equity securities, from a **$263.7 million** unrealized loss in 2022 to a **$31.4 million** unrealized gain in 2023[242](index=242&type=chunk) [Liquidity and Capital Resources](index=49&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $403.2 million in cash and equity securities, bolstered by Starboard's warrant exercise, sufficient for future needs - Consolidated cash, cash equivalents, and equity securities totaled **$403.2 million** at December 31, 2023, up from **$349.4 million** at year-end 2022[270](index=270&type=chunk) Cash Flow Summary | | Years Ended December 31, | | :--- | :--- | :--- | | (In thousands) | 2023 | 2022 | | **Net cash provided by (used in):** | | | | Operating activities | $ (22,506) | $ (37,336) | | Investing activities | 16,178 | 184,464 | | Financing activities | 58,632 | (166,137) | | **Increase (decrease) in cash and cash equivalents** | **$ 52,305** | **$ (21,575)** | - The company received approximately **$55.0 million** in gross proceeds and cancelled **$60.0 million** in Senior Secured Notes as part of the Series B Warrants exercise by Starboard in July 2023[265](index=265&type=chunk) [Critical Accounting Estimates](index=52&type=section&id=Critical%20Accounting%20Estimates) Management's critical accounting estimates involve revenue recognition, asset valuation, financial instrument fair value, oil and gas reserves, and income taxes - Key critical accounting estimates include revenue recognition, valuation of assets (long-lived, goodwill, intangibles), valuation of financial instruments (warrants, derivatives), estimation of oil and gas reserves, and accounting for income taxes[280](index=280&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risk from equity investments and foreign currency fluctuations, with potential impacts on its financial position - The company's equity investments in public and private companies had a carrying value of **$99.8 million** as of December 31, 2023[298](index=298&type=chunk) - A hypothetical 10% adverse change in foreign exchange rates would have an approximate **$5.7 million** effect on the company's financial position and results of operations as of December 31, 2023[300](index=300&type=chunk) [Controls and Procedures](index=56&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023 - Management concluded that as of December 31, 2023, the company's disclosure controls and procedures were effective[303](index=303&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2023[305](index=305&type=chunk) Part III This section incorporates information on corporate governance, executive compensation, security ownership, and accountant fees by reference from the 2024 proxy statement [Directors, Executive Officers, Corporate Governance, Compensation, Security Ownership, and Accountant Fees](index=58&type=section&id=Item%2010%2C%2011%2C%2012%2C%2013%2C%2014) Information on directors, executive compensation, security ownership, and accountant fees is incorporated by reference from the 2024 proxy statement - Detailed information regarding directors, executive compensation, security ownership, and related party transactions is incorporated by reference from the forthcoming 2024 proxy statement[310](index=310&type=chunk)[312](index=312&type=chunk)[313](index=313&type=chunk)[314](index=314&type=chunk)[315](index=315&type=chunk) Part IV This section contains exhibits and the complete consolidated financial statements, including the independent auditor's report and detailed notes [Exhibits and Financial Statement Schedules](index=59&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This item lists exhibits and includes the full consolidated financial statements with Grant Thornton LLP's unqualified auditor's report [Financial Statements](index=63&type=section&id=Financial%20Statements) Audited consolidated financial statements for 2023 and 2022 are presented, showing total assets of $633.5 million and net income of $67.1 million in 2023 Key Financial Position Data (December 31, 2023) | Metric | Amount (in thousands) | | :--- | :--- | | **Assets** | | | Cash and cash equivalents | $ 340,091 | | Total current assets | $ 554,512 | | Total assets | $ 633,545 | | **Liabilities & Equity** | | | Total current liabilities | $ 27,636 | | Total liabilities | $ 43,936 | | Total stockholders' equity | $ 589,609 | Key Operational & Per-Share Data (Year Ended Dec 31, 2023) | Metric | Amount (in thousands, except per share) | | :--- | :--- | | Total revenues | $ 125,102 | | Operating income | $ 20,936 | | Net income attributable to Acacia | $ 67,060 | | Basic net income per common share | $ 0.73 | | Diluted net income per common share | $ 0.58 | [Notes to Consolidated Financial Statements](index=71&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes provide detailed disclosures on accounting policies, acquisitions, equity, goodwill, Starboard recapitalization, fair value, and segment reporting - Note 10 details the comprehensive recapitalization with Starboard, which resulted in the conversion of all Series A Preferred Stock, exercise/cancellation of all warrants, and cancellation of all Senior Secured Notes, simplifying the capital structure[472](index=472&type=chunk)[473](index=473&type=chunk) - Note 19 provides a breakdown of revenues and operating results by the three segments: Intellectual Property, Industrial, and the newly formed Energy Operations[574](index=574&type=chunk)[579](index=579&type=chunk)[583](index=583&type=chunk) - Note 3 details the acquisition of a **50.4%** interest in Benchmark Energy for **$10.0 million** in November 2023, which established the Energy Operations segment[451](index=451&type=chunk)[452](index=452&type=chunk)

Exhibit 99.1 Acacia Research Reports Fourth Quarter 2023 Financial Results Intellectual Property Licensing and Settlement Agreements Drive Q4 Income; Company Continues to Advance Capital Allocation and Business Strategy, Announced Agreement to Acquire Cash Flow-Generating Oil and Gas Assets with a Goal of Driving Book Value per Share New York, NY, March 14, 2024 - Acacia Research Corporation (Nasdaq: ACTG) (“Acacia” or the “Company”) today reported financial results for the three months and full year ended ...

NEW YORK--(BUSINESS WIRE)--Acacia Research Corporation (Nasdaq: ACTG) today announced an agreement related to its intellectual property business. Atlas Global Technologies LLC (“AGT”), a subsidiary of Acacia Research Group LLC (the patent licensing business of Acacia Research Corporation), entered into licensing and settlement agreements relating to its WiFi-6 patent portfolio during the fourth quarter of 2023, with aggregate payments under such agreements totaling more than $81 million. The details of suc ...

Acacia Research Corporation (NASDAQ:ACTG) Q3 2023 Earnings Conference Call November 13, 2023 4:30 PM ET Company Participants Jeff Stanlis - FNK IR MJ McNulty - Interim Chief Executive Officer Kirsten Hoover - Interim Chief Financial Officer Conference Call Participants Anthony Stoss - Craig-Hallum Capital Group Brett Reiss - Janney Montgomery Scott John Levin - Levin Capital Strategies Operator Greetings, and welcome to the Acacia Research Third Quarter 2023 Financial Results Conference Call. [Operator Inst ...

SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ______________ Commission file number: 001-37721 Acacia Research Corporation (Name of registrant as specified in its charter) Delaware 95-4405754 (State or other jur ...

Financial Data and Key Metrics Changes - GAAP book value at June 30, 2023, was $335.4 million or $5.71 per basic share, compared to $269.3 million or $6.19 per share at December 31, 2022 [11] - Total second quarter revenues were $7.9 million, down from $16.7 million in the same quarter last year [12] - GAAP net loss attributable to Acacia Research was $18.8 million or $0.36 per diluted share, compared to a net loss of $61.5 million or $1.44 per diluted share in the second quarter of last year [13] Business Line Data and Key Metrics Changes - Printronix generated $7.5 million in revenue in the quarter, down from $8.7 million last year [12] - The intellectual property business generated $400,000 in licensing and other revenue during the quarter, down from $8.1 million in the same quarter last year [12] - General and administrative expenses were $9.4 million, down from $10.7 million in the same quarter of last year due to reduced headcount and compensation costs [12] Market Data and Key Metrics Changes - Total liabilities for warrants and convertible preferred stock were $94.9 million at June 30, 2023 [11] - Cash, cash equivalents, and equity securities at fair value totaled $408 million at June 30, 2023, compared to $349.4 million at December 31, 2022 [14] Company Strategy and Development Direction - The company completed a recapitalization transaction with its largest shareholder, signaling a transformation of Acacia [5] - A corporate incentive plan was put in place to align employee incentives with those of shareholders [6] - The company is focused on sourcing, evaluating, and executing potential transactions, with a growing pipeline of opportunities [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the upcoming trial related to WiFi 6 patents, which could accelerate licensing activity [9] - The company is seeing more attractive valuations in the private market, indicating potential for future acquisitions [23][24] - Management acknowledged the eagerness of shareholders for capital deployment and transaction outcomes [26] Other Important Information - The recapitalization transaction resulted in an incremental $166.8 million increase in book value and an incremental $41.4 million increase in shares outstanding [19] - Cash per share stood at $6.05 as of June 30, 2023, with a pro forma cash per share of approximately $3.44 assuming completion of all phases of the Starboard transaction [19] Q&A Session Summary Question: Inquiry about Wi-Fi 6 licensing and M&A strategy - Management confirmed engagement with multiple parties regarding Wi-Fi 6 licensing and noted ongoing evaluation of attractive public market opportunities [21][22] Question: Request for transparency on patent business - Management acknowledged the strength of the patent team and considered the suggestion to provide a spreadsheet of pending cases and trial dates for shareholders [27][28] Question: Clarification on cash balance post recapitalization - Management provided details on the cash balance adjustment following the payment of $60 million in notes, confirming a post-recap cash balance of $343.4 million [30][31]