INCOME/LOSS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Earnings Per Share, Basic and Diluted

The following table presents the calculation of basic and diluted income/loss per share of common stock:


	Years Ended December 31,
	2021		2020
	(In thousands, except share and per share data)
Numerator:
Net income attributable to Acacia Research Corporation	$	149,197	$	109,231
Dividend on Series A redeemable convertible preferred stock	(1,452)		(1,381)
Accretion of Series A redeemable convertible preferred stock	(3,829)		(2,835)
Undistributed earnings allocated to participating securities	(25,112)		(18,169)
Net income attributable to common stockholders - Basic	118,804		86,846

Add: Dividend on Series A redeemable convertible preferred stock	1,452		—
Add: Accretion of Series A redeemable convertible preferred stock	3,829		—
Less: Change in fair value of Series A redeemable convertible preferred stock embedded derivative	(8,280)		—
Less: Change in fair value of Series A warrants	—		(1,348)
Less: Change in fair value of dilutive Series B warrants	44,037		(5,557)
Add: Interest expense associated with Starboard Notes, net of tax	4,658		1,889
Add: Undistributed earnings allocated to participating securities	25,112		18,169
Reallocation of undistributed earnings to participating securities	(1,388)		(15,105)
Net income attributable to common stockholders - Diluted	$	188,224	$	84,894

Denominator:
Weighted average shares used in computing net income per share attributable to common stockholders - Basic	48,797,290		48,840,829
Potentially dilutive common shares:
Series A Preferred Stock	9,589,041		—
Restricted stock units	758,682		637,044
Stock options	37,167		2,952
Series A Warrants	—		77,592
Series B Warrants	39,288,690		7,876,711
Weighted average shares used in computing net income per share attributable to common stockholders - Diluted	98,470,870		57,435,128

Basic net income per common share	$	2.43	$	1.78
Diluted net income per common share	$	1.91	$	1.48

Anti-dilutive potential common shares excluded from the computation of diluted net income per common share:
Equity-based incentive awards	393,750		206,916
Series A warrants	5,000,000		—
Series B warrants	—		68,493,151
Total	5,393,750		68,700,067