Acacia(US:ACTG)2022-08-11 20:12Financial Position - As of June 30, 2022, total assets decreased to $561.7 million from $798.9 million as of December 31, 2021, representing a decline of approximately 29.7%[12] - Cash and cash equivalents were reported at $263.9 million, down from $308.9 million, indicating a decrease of about 14.5%[12] - Total stockholders' equity fell to $268.2 million from $430.5 million, a reduction of approximately 37.7%[13] - The accumulated deficit increased to $316.5 million from $181.7 million, reflecting a rise of about 74.1%[13] - Current assets totaled $500.2 million, down from $730.7 million, marking a decrease of approximately 31.5%[12] Revenue and Earnings - Total revenues for the three months ended June 30, 2022, were $8,655 million, a decrease of 50.2% compared to $17,400 million for the same period in 2021[16] - The net loss attributable to Acacia Research Corporation for the six months ended June 30, 2022, was $134,769 million, compared to a net income of $19,660 million for the same period in 2021[16] - Basic net loss per common share for the three months ended June 30, 2022, was $(1.44), a decline from a profit of $0.31 for the same period in 2021[16] - Total revenues for the six months ended June 30, 2022, amounted to $10.68 million, compared to $23.20 million for the same period in 2021[52] Expenses and Losses - Total costs and expenses for the three months ended June 30, 2022, were $22,387 million, an increase of 42% from $15,756 million in the same period of 2021[16] - The company reported a significant loss in equity securities investments, with a change in fair value of $(57,647) million for the three months ended June 30, 2022, compared to a gain of $11,158 million in the same period of 2021[16] - General and administrative expenses increased to $10,722 million for the three months ended June 30, 2022, from $6,503 million in the same period of 2021, reflecting a rise of 64%[16] - The company reported a total other expense of $(42,020) million for the three months ended June 30, 2022, compared to an income of $18,532 million in the same period of 2021[16] Cash Flow and Investments - Cash and cash equivalents at the end of June 30, 2022, were $263,945, compared to $222,062 at the end of June 30, 2021, reflecting an 18.9% increase[27] - The company incurred a compensation expense for share-based awards of $2,257 for the six months ended June 30, 2022, compared to $979 for the same period in 2021, which is a 130% increase[27] - The company repurchased common stock amounting to $39,508 during the six months ended June 30, 2022[27] Acquisitions and Business Strategy - The company has focused on acquiring businesses valued at $1 billion or less, with a strategy to pursue larger acquisitions under favorable circumstances[29] - As of June 30, 2022, the company has monetized a portion of its Life Sciences Portfolio while retaining interests in several operating businesses[30] - The acquisition of Printronix was completed on October 7, 2021, for approximately $37.0 million, including an initial cash payment of $33.0 million and a $4.0 million working capital adjustment[36] Tax and Legal Matters - The effective tax rates for the three months ended June 30, 2022, and 2021 were zero and 3%, respectively, while for the six months ended June 30, 2022, and 2021, they were 11% and zero, respectively[112] - The Company had total unrecognized tax benefits of approximately $887,000 as of June 30, 2022, with $110,000 recorded in other long-term liabilities[113] - Acacia's Tax Benefits Preservation Plan aims to protect potential tax assets by discouraging ownership changes exceeding 4.9%[202] Stock and Shareholder Information - Acacia's Board of Directors approved a stock repurchase program for up to $40.0 million of shares of common stock effective March 31, 2022, with no time limit[198] - During July 2022, the company completed the March 2022 stock repurchase program with total purchases of 8,453,519 shares for $40.0 million at an average price of $4.73 per share[200] - The total number of shares repurchased from December 1, 2021, to June 30, 2022, was 9,467,338 shares for an aggregate amount of $55.0 million, averaging $4.80 per share[199] Operational and Market Conditions - The management anticipates potential impacts from public health threats, including COVID-19, on future operations and financial results[7] - The company has implemented robust disaster recovery and business continuity policies in response to the COVID-19 pandemic, ensuring operations can continue remotely[37] - The company is subject to claims and legal actions in the ordinary course of business, but management believes these will not materially affect its financial position[188]