QUARTERLY FINANCIAL DATA (unaudited)

The following table sets forth unaudited consolidated statements of operations data for the eight quarters in the period ended December 31, 2016. This information has been derived from Acacia’s unaudited condensed consolidated financial statements that have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the information when read in conjunction with the audited consolidated financial statements and related notes thereto. Acacia’s quarterly results have been, and may in the future be, subject to significant fluctuations. As a result, Acacia believes that results of operations for interim periods should not be relied upon as any indication of the results to be expected in any future periods.



	Quarter Ended
	Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,
	2016			2016			2016			2016			2015			2015			2015			2015
	(Unaudited, in thousands, except share and per share information)
Revenues	$	24,721		$	41,351		$	64,658		$	21,969		$	34,210		$	40,336		$	12,994		$	37,497
Operating costs and expenses:
Cost of revenues:
Inventor royalties	1,573			—			17,844			3,313			9,325			1,265			116			7,756
Contingent legal fees	4,109			10,418			7,709			4,238			4,784			5,512			1,972			3,901
Litigation and licensing expenses - patents	7,723			7,324			7,348			5,463			8,675			9,012			10,345			11,341
Amortization of patents	10,760			10,759			6,467			6,222			13,038			13,228			13,688			13,113
General and administrative expenses (including non-cash stock compensation expense)	7,994			7,535			8,334			9,056			10,575			9,587			9,442			8,572
Research, consulting and other expenses - business development	522			1,334			666			557			997			732			802			860
Impairment of patent-related intangible assets	—			40,165			—			2,175			—			—			—			74,731
Impairment of goodwill	—			—			—			—			—			—			—			30,149
Other	1,742			(1,242		)	—			—			426			—			3,465			250
Total operating costs and expenses	34,423			76,293			48,368			31,024			47,820			39,336			39,830			150,673
Operating income (loss)	(9,702		)	(34,942		)	16,290			(9,055		)	(13,610		)	1,000			(26,836		)	(113,176		)
Total other income (expense)	(3		)	(52		)	261			592			228			(104		)	(180		)	—
Income (loss) before (provision for) benefit from income taxes	(9,705		)	(34,994		)	16,551			(8,463		)	(13,382		)	896			(27,016		)	(113,176		)
Provision for income taxes	(192		)	(5,927		)	(9,655		)	(2,414		)	(170		)	(119		)	(337		)	(4,174		)
Net income (loss) including noncontrolling interests	(9,897		)	(40,921		)	6,896			(10,877		)	(13,552		)	777			(27,353		)	(117,350		)
Net (income) loss attributable to noncontrolling interests in operating subsidiaries	(68		)	348			186			266			422			(4,463		)	43			1,440
Net income (loss) attributable to Acacia Research Corporation	$	(9,965	)	$	(40,573	)	$	7,082		$	(10,611	)	$	(13,130	)	$	(3,686	)	$	(27,310	)	$	(115,910	)
Net loss per common share attributable to Acacia Research Corporation:
Basic and diluted income (loss) per share	$	(0.20	)	$	(0.81	)	$	0.14		$	(0.21	)	$	(0.27	)	$	(0.08	)	$	(0.55	)	$	(2.33	)
Weighted-average number of shares outstanding, basic	49,925,550			50,015,869			50,124,302			50,237,784			49,212,207			49,423,472			49,630,369			49,749,941
Weighted-average number of shares outstanding, diluted	49,925,550			50,015,869			50,618,757			50,237,784			49,212,207			49,423,472			49,630,369			49,749,941