INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Income before Income Tax, Domestic and Foreign

The components of income before income taxes were as follows:


	Years Ended December 31,
	2021		2020
	(In thousands)
Domestic	$	175,635	$	108,072
Foreign	(983)		—
Total	$	174,652	$	108,072

Schedule of Effective Income Tax Rate Reconciliation

For purposes of reconciling the Company’s provision for income taxes at the statutory rate and the Company’s income tax expense (benefit) at the effective tax rate, a notional 21% tax rate was applied as follows:


	Years Ended December 31,
	2021		2020
Statutory federal tax rate - expense (benefit)	21	%	21	%

Foreign rate differential	5	%	(1)	%

Nondeductible permanent items	(1)	%	—	%

Expired tax attributes	4	%	—	%
Derivative fair value adjustment	5	%	11	%
Valuation allowance	(21)	%	(33)	%
Other	1	%	1	%
Effective income tax rate	14	%	(1)	%

Schedule of Components of Income Tax Expense (Benefit)

Acacia’s income tax (expense) benefit for the periods presented consisted of the following:


	Years Ended December 31,
	2021		2020
	(In thousands)
Current:

State	$	(15)	$	(66)
Foreign	(8,530)		1,225
Total current	(8,545)		1,159
Deferred:
Federal	(54,165)		—
State	1,573		—
Foreign	332		—
Total deferred	(52,260)		—

Change in valuation allowance	36,518		—
Income tax (expense) benefit	$	(24,287)	$	1,159

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences and carryforwards that give rise to significant portions of deferred tax assets and liabilities consisted of the following:


	December 31,
	2021		2020
	(In thousands)
Deferred tax assets:
Net operating loss and capital loss carryforwards and credits	$	78,428	$	113,561

Compensation expense for share-based awards	383		497
Fixed assets and intangibles	—		677
Basis of investments in affiliates	18		254
Accrued liabilities and other	1,495		432
Lease liability	726		330
State taxes	—		15
Total deferred tax assets	81,050		115,766
Valuation allowance	(40,585)		(76,969)
Total deferred tax assets, net of valuation allowance	40,465		38,797
Deferred tax liabilities:
ROU Asset	(726)		(330)
Fixed assets and intangibles	(2,572)		—
Unrealized gain on investments held at fair value	(55,696)		(38,374)
Other	(23)		(93)
Total deferred tax liabilities	(59,017)		(38,797)
Net deferred tax liabilities	$	(18,552)	$	—

Schedule of Unrecognized Tax Benefits Roll Forward

The following changes occurred in the amount of unrecognized tax benefits:


	Years Ended December 31,
	2021		2020
	(In thousands)
Beginning balance	$	731	$	731
Additions for current year tax positions	27		—
Additions included in purchase accounting for prior year positions	129		—
Reductions for prior year tax positions	—		—
Ending Balance (excluding interest and penalties)	887		731
Interest and penalties	—		—
Total	$	887	$	731