Acacia(US:ACTG)2022-11-11 01:15Financial Performance - Total revenues for the nine months ended September 30, 2022, were $29,105 million, compared to $46,102 million for the same period in 2021[16]. - Intellectual property operations revenue for Q3 2022 was $6,320 million, a significant increase from $1,582 million in Q3 2021[16]. - Total costs and expenses for Q3 2022 were $27,243 million, up from $14,304 million in Q3 2021[16]. - Operating loss for Q3 2022 was $(11,365) million, slightly improved from $(12,722) million in Q3 2021[16]. - Net income attributable to Acacia Research Corporation for Q3 2022 was $28,090 million, compared to $89,757 million in Q3 2021[16]. - Basic net income per common share for Q3 2022 was $0.54, down from $1.49 in Q3 2021[16]. - Net loss for the nine months ended September 30, 2022, was $92.36 million, compared to a loss of $54.14 million for the same period in 2021, representing an increase of 70.5%[27]. Assets and Equity - As of September 30, 2022, total assets decreased to $485.3 million from $798.9 million as of December 31, 2021, representing a decline of approximately 39.2%[12]. - Total stockholders' equity decreased to $282.5 million from $430.5 million, reflecting a decline of approximately 34.4%[13]. - Current assets totaled $427.2 million, down from $730.7 million, a decrease of about 41.5%[12]. - Cash and cash equivalents were reported at $241.9 million, down from $308.9 million, a decrease of about 21.6%[12]. - The accumulated deficit increased to $288.4 million from $181.7 million, indicating a rise of approximately 58.7%[13]. - The company reported a significant reduction in equity securities at fair value, which fell to $81.4 million from $361.8 million, a decrease of about 77.5%[12]. Inventories and Assets Management - Inventories increased to $13.8 million from $8.9 million, representing a growth of approximately 55.3%[12]. - Printronix's net inventories increased to $13.8 million as of September 30, 2022, from $8.9 million as of December 31, 2021, representing a 54% increase[131]. - Printronix's equity securities at fair value totaled $81.384 million as of September 30, 2022, down from $361.778 million at December 31, 2021[77]. Cash Flow and Operating Activities - Net cash used in operating activities for the nine months ended September 30, 2022, was $13.60 million, compared to $9.28 million for the same period in 2021, representing an increase of 46.5%[27]. - Cash and cash equivalents at the end of September 30, 2022, were $241.87 million, down from $254.14 million at the end of September 30, 2021, indicating a decrease of 4.8%[27]. Acquisitions and Investments - The company acquired Printronix for approximately $37.0 million, which included an initial cash payment of $33.0 million and a $4.0 million working capital adjustment[36]. - The company is focused on acquiring businesses with market values in the sub-$2 billion range, particularly those valued at $1 billion or less, while remaining opportunistic for larger acquisitions[29]. - As of September 30, 2022, the company has monetized a portion of its Life Sciences Portfolio while retaining interests in several operating businesses, including a controlling interest in one company[30]. Tax and Compliance - The Company has unrecognized tax benefits of approximately $887,000 as of September 30, 2022, which is expected to remain unchanged within the next 12 months[110]. - The Company anticipates receiving a milestone payment of approximately $27.0 million related to FDA approval before year-end 2022[127]. - The Company has not recorded any interest and penalties for unrecognized tax benefits for the periods presented[110]. Leases and Operating Costs - Acacia has leased approximately 8,600 square feet of office space for its corporate headquarters in New York, with a lease term that now extends to February 28, 2025[189]. - Printronix has a total of 73,649 square feet of leased facilities, with significant leases including 8,662 square feet in Irvine, California, and 52,000 square feet in Johor, Malaysia[190][191]. - Printronix's operating lease costs were $474,000 for the three months ended September 30, 2022, compared to $155,000 for the same period in 2021, reflecting a year-over-year increase of 206.5%[193]. Risks and Uncertainties - The company continues to face substantial risks and uncertainties that could materially affect future financial results, including costly acquisitions and market conditions[6]. - The ongoing COVID-19 pandemic has not had a material impact on the company's operations to date, but potential risks remain[37].