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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2022

License revenues were comprised of the following for the periods presented:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(In thousands)
Paid-up license revenue agreements	$	6,000	$	1,100	$	15,553	$	23,110
Recurring License Revenue Agreements	320		482		1,444		1,675
Total	$	6,320	$	1,582	$	16,997	$	24,785

Printronix's net revenues were comprised of the following for the periods presented:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2022			2022
	(In thousands)
Printers, consumables and parts	$	8,509		$	26,023
Services	1,049			3,082
Total	$	9,558		$	29,105

Schedule of Other Operating Cost and Expense, by Component

Cost of revenues were comprised of the following for the periods presented:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(In thousands)
Inventor royalties	$	732	$	280	$	1,092	$	823
Contingent legal fees	1,010		285		2,314		5,735
Litigation and licensing expenses	939		782		3,272		4,881
Amortization of patents	2,601		2,612		7,802		7,086

Total	$	5,282	$	3,959	$	14,480	$	18,525

Schedule of Product Warranty Liability

The following is a summary of the accrued warranty liabilities, which are included in accrued expenses and other current liabilities, and other long-term liabilities in the consolidated balance sheets:


	Nine Months Ended September 30,
	2022
	(In thousands)
Beginning balance	$	222
Estimated future warranty expense	23
Warranty claims settled	(111)
Ending balance	$	134

Unrealized Gain (Loss) on Investments

Equity securities at fair value for the periods presented were comprised of the following:


Security Type	Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
	(In thousands)
September 30, 2022:
Equity securities - Life Sciences Portfolio (Note 3)	$	38,066	$	19,232	$	(1,014)	$	56,284
Equity securities - other common stock	47,600		8		(22,508)		25,100
Total	$	85,666	$	19,240	$	(23,522)	$	81,384

December 31, 2021:
Equity securities - Life Sciences Portfolio (Note 3)	$	56,037	$	262,811	$	(1,488)	$	317,360
Equity securities - other common stock	43,822		2,068		(1,472)		44,418
Total	$	99,859	$	264,879	$	(2,960)	$	361,778

The following unrealized and realized gains or losses from our investment in the Life Sciences Portfolio are recorded in the change in fair value of equity securities and gain or loss on sale of equity securities, respectively, in the consolidated statements of operations:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(In thousands)
Change in fair value of equity securities of public companies	$	(39,008)	$	243,930	$	(243,106)	$	214,247
Change in fair value of equity securities without readily determinable fair value	—		(180,023)		—		(102,067)

Gain on sale of equity securities of public companies	36,397		37,112		101,102		52,167


Net realized and unrealized (loss) gain	$	(2,611)	$	101,019	$	(142,004)	$	164,347

Schedule of Useful Lives of Property and Equipment

Depreciation and amortization is computed on a straight-line basis over the following estimated useful lives of the assets:


Machinery and equipment			2 to 10 years
Furniture and fixtures			3 to 5 years
Computer hardware and software			3 to 5 years
Leasehold improvements			2 to 5 years (Lesser of lease term or useful life of improvement)