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]

[CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](index=3&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section highlights forward-looking statements, their inherent risks, and the safe harbor provisions under the Private Securities Litigation Reform Act of 1995 - This Quarterly Report contains forward-looking statements that involve risks and uncertainties, intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995[14](index=14&type=chunk) - Forward-looking statements cover business, operating, development, investment and finance strategies, relationship with Starboard Value LP, acquisition activities, financial results, intellectual property licensing, capital expenditures, earnings, litigation, regulatory matters, markets, liquidity, and accounting[14](index=14&type=chunk) - Key risks include inability to acquire or integrate businesses, employee retention, cybersecurity incidents, fluctuations in legal expenses, patent invalidity, supply chain disruptions, and external events like political unrest or pandemics[14](index=14&type=chunk) [PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Acacia Research Corporation for the three and six months ended June 30, 2023, and 2022, including balance sheets, statements of operations, statements of equity, and cash flows, along with comprehensive notes detailing accounting policies, investments, liabilities, and segment information [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20as%20of%20June%2030,%202023%20(Unaudited)%20and%20December%2031,%202022) | Metric | June 30, 2023 (Unaudited) (in thousands) | December 31, 2022 (in thousands) | | :--------------------------------- | :--------------------------------------- | :------------------------------------ | | **ASSETS** | | | | Total current assets | $485,792 | $427,985 | | Total assets | $534,708 | $482,928 | | **LIABILITIES & EQUITY** | | | | Total current liabilities | $77,806 | $87,209 | | Total liabilities | $176,121 | $193,682 | | Total stockholders' equity | $335,433 | $269,322 | [Unaudited Condensed Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030,%202023%20and%202022) | Metric (in thousands) | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $7,904 | $16,717 | $22,707 | $30,224 | | Operating loss | $(12,529) | $(5,670) | $(21,853) | $(14,178) | | Loss before income taxes | $(20,424) | $(47,690) | $(8,494) | $(135,834) | | Net loss attributable to Acacia Research Corporation | $(18,779) | $(61,503) | $(9,332) | $(134,769) | | Basic net loss per common share | $(0.36) | $(1.44) | $(0.26) | $(3.06) | | Diluted net loss per common share | $(0.36) | $(1.44) | $(0.26) | $(3.06) | - Total revenues decreased by **53%** for the three months ended June 30, 2023, and by **25%** for the six months ended June 30, 2023, primarily due to decreases in both Intellectual Property Operations and Industrial Operations revenues[27](index=27&type=chunk)[237](index=237&type=chunk)[246](index=246&type=chunk) - Net loss attributable to Acacia Research Corporation significantly decreased by **69%** for the three months and **93%** for the six months ended June 30, 2023, compared to the prior year, largely driven by changes in fair value of equity securities and warrants[27](index=27&type=chunk)[237](index=237&type=chunk)[246](index=246&type=chunk) [Unaudited Condensed Consolidated Statements of Series A Redeemable Convertible Preferred Stock and Stockholders' Equity](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Series%20A%20Redeemable%20Convertible%20Preferred%20Stock%20and%20Stockholders'%20Equity%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030,%202023%20and%202022) | Metric (in thousands) | June 30, 2023 | December 31, 2022 | | :-------------------- | :------------ | :---------------- | | Series A Redeemable Convertible Preferred Stock | $23,154 | $19,924 | | Common Stock | $58 | $43 | | Treasury Stock | $(98,258) | $(98,258) | | Additional Paid-in Capital | $738,712 | $663,284 | | Accumulated Deficit | $(316,121) | $(306,789) | | Total Stockholders' Equity | $335,433 | $269,322 | - Total stockholders' equity increased from **$269.3 million** at December 31, 2022, to **$335.4 million** at June 30, 2023, primarily due to an increase in additional paid-in capital from the Rights Offering and stock option exercises[22](index=22&type=chunk)[34](index=34&type=chunk) - The accumulated deficit increased from **$(306.8) million** to **$(316.1) million** during the six months ended June 30, 2023, reflecting the net loss for the period[22](index=22&type=chunk)[34](index=34&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Six%20Months%20Ended%20June%2030,%202023%20and%202022) | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(19,122) | $(17,553) | | Net cash provided by investing activities | $9,218 | $78,547 | | Net cash provided by (used in) financing activities | $77,322 | $(106,410) | | Increase (decrease) in cash and cash equivalents | $67,402 | $(45,416) | | Cash and cash equivalents, ending | $355,188 | $263,945 | - Cash flows from financing activities significantly increased to **$77.3 million** provided in H1 2023, compared to **$106.4 million** used in H1 2022, primarily due to proceeds from the Rights Offering[38](index=38&type=chunk)[286](index=286&type=chunk) - Net cash provided by investing activities decreased from **$78.5 million** in H1 2022 to **$9.2 million** in H1 2023, mainly due to lower net cash inflows from equity securities transactions[38](index=38&type=chunk)[284](index=284&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the company's significant accounting policies, financial statement components, and related party transactions [1. DESCRIPTION OF BUSINESS](index=11&type=section&id=1.%20DESCRIPTION%20OF%20BUSINESS) This note describes the company's opportunistic capital platform strategy, its relationship with Starboard Value, LP, and its two primary business segments - Acacia Research Corporation operates as an opportunistic capital platform, acquiring businesses based on public/private market valuation differentials, focusing on companies with market values under **$2 billion**, particularly **$1 billion** or less[41](index=41&type=chunk) - The company maintains a strategic relationship with Starboard Value, LP, which provides access to industry expertise and assistance in sourcing and evaluating acquisition opportunities[43](index=43&type=chunk) - The company's business segments include Intellectual Property Operations (

Acacia Research Corporation (NASDAQ:ACTG) Q1 2023 Results Conference Call May 11, 2023 4:30 PM ET Company Participants Rob Fink - Managing Partner MJ McNulty - Interim CEO Kirsten Hoover - Interim CFO Conference Call Participants Brett Reiss - Janney Montgomery Scott Adam Eagleston - Formidable AM Operator Good day, and welcome to the Acacia Research First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After managements prepared remarks there will be questio ...

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, 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 jurisdi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________________ FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED December 31, 2022 OR o 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 ______________________ (Exact name of registrant as specified in its charter) Delaware 95-4 ...

Acacia Research Corporation (NASDAQ:ACTG) Q4 2022 Earnings Call Transcript March 16, 2023 11:00 AM ET Company Participants Robert Fink - Investor Relations Martin McNulty - Interim Chief Executive Officer Kirsten Hoover - Interim Chief Financial Officer Conference Call Participants Operator Greetings. Welcome to the Acacia Research Fourth Quarter 2022 Financial Results. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Inst ...

Financial Data and Key Metrics Changes - Acacia's GAAP book value as of September 30 was $282.5 million, or $7.33 per basic share, compared to $268.2 million, or $6.60 per share as of June 30, and $430.5 million, or $8.80 per share at December 31, 2021 [21][22][24] - Pro forma book value will be $520.1 million or $5.22 per share after the completion of the Starboard transactions [19][23] - Cash and equity securities at fair value totaled $323.2 million at September 30, down from $670.7 million at December 31, 2021 [27] Business Line Data and Key Metrics Changes - Revenues for Q3 2022 were $15.9 million, compared to $1.6 million a year ago, with Printronix contributing $9.6 million and the intellectual property business generating $6.3 million [24][25] - General and administrative expenses were $15 million, up from $10.3 million in the same quarter last year [25] - Operating loss was $11.4 million, slightly improved from an operating loss of $12.7 million a year ago [25] Market Data and Key Metrics Changes - The current market conditions have shifted the acquisition pipeline more towards public targets due to elevated valuations in private markets [11] - Acacia expects to have more than $320 million in cash on the balance sheet by the end of the first quarter of 2023 following the initial steps of the Starboard transaction [23] Company Strategy and Development Direction - Acacia aims to establish a hybrid acquisition platform that combines elements of hedge fund activism and private equity [9][13] - The company is focused on acquiring businesses in industrials, healthcare, and mature technology sectors, while remaining open to other opportunities [42][56] - The partnership with Starboard is seen as crucial for accessing capital and enhancing acquisition capabilities [5][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the acquisition pipeline, which is described as the most robust seen to date [11][12] - The company is committed to a disciplined approach to acquisitions, emphasizing the importance of valuation and strategic fit [41][52] - Management highlighted the importance of demonstrating value to shareholders to encourage participation in the upcoming rights offering [50] Other Important Information - The agreement with Starboard will streamline Acacia's capital structure, eliminating complex derivatives and preferred shares [15][20] - Acacia has a strong internal team and a network of advisors to enhance acquisition processes and operational improvements post-acquisition [10][11] Q&A Session Summary Question: How does Acacia plan to monetize its investment in Viamet? - Acacia owns approximately 26% of Viamet and anticipates receiving milestone and royalty payments, with a larger payment expected before year-end [34] Question: What is the expected go-forward rate for operating expenses? - Operating expenses are expected to vary based on business activity, but $17.3 million is a reasonable starting point [35][36] Question: What is the status of the Wi-Fi IP portfolio? - The Wi-Fi IP portfolio has exceeded initial capital expectations and generated significant discussions with potential licensees [38][39] Question: What is the focus of Acacia's acquisition strategy? - Acacia is focused on acquiring businesses that can be improved in partnership with experienced executives, with a current emphasis on industrials, healthcare, and mature technology [41][42][56] Question: Are there conditions that need to be met before making the first acquisition? - There are no specific conditions such as shareholder approval that need to be met before pursuing acquisitions [47] Question: How important is the additional capital from the rights offering? - The rights offering is important for demonstrating value to shareholders, but the company will not rush into acquisitions solely to drive participation [50][52] Question: What criteria does Acacia use for acquisitions? - Acacia has a checklist of criteria for evaluating potential acquisitions, focusing on businesses that can be improved and are aligned with their strategic goals [53][56]

Acacia Research Corporation (NASDAQ:ACTG) Q2 2022 Earnings Conference Call August 11, 2022 11:00 AM ET Company Participants Rob Fink - FNK, IR Clifford Press - CEO Richard Rosenstein - CFO Conference Call Participants Anthony Stoss - Craig-Hallum Jeff Henriksen - Thorpe Abbotts Capital Brett Reiss - Janney David Hoff - Kubhera Enterprises Operator Good day, ladies and gentlemen, and welcome to the Acacia Research Second Quarter 2022 Financial Results Call. [Operator Instructions] It is now my pleasure to tu ...