INCOME/LOSS PER SHARE

12 Months Ended

Dec. 31, 2022

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


	Years Ended December 31,
		2022		2021
		(In thousands, except share and per share data)
Numerator:
Net (loss) income attributable to Acacia Research Corporation		$	(125,065)	$	149,197
Dividend on Series A redeemable convertible preferred stock		(2,799)		(1,452)
Accretion of Series A redeemable convertible preferred stock		(5,171)		(3,829)
Undistributed earnings allocated to participating securities		—		(25,112)
Net (loss) income attributable to common stockholders - Basic		(133,035)		118,804

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		—		—
Less: Change in fair value of dilutive Series B warrants		—		44,037
Add: Interest expense associated with Starboard Notes, net of tax		—		4,658
Add: Undistributed earnings allocated to participating securities		—		25,112
Reallocation of undistributed earnings to participating securities		—		(1,388)
Net (loss) income attributable to common stockholders - Diluted		$	(133,035)	$	188,224

Denominator:
Weighted average shares used in computing net (loss) income per share attributable to common stockholders - Basic		42,460,504		48,797,290
Potentially dilutive common shares:
Series A Preferred Stock		—		9,589,041
Restricted stock units		—		758,682
Stock options		—		37,167
Series A Warrants		—		—
Series B Warrants		—		39,288,690
Weighted average shares used in computing net (loss) income per share attributable to common stockholders - Diluted		42,460,504		98,470,870

Basic net (loss) income per common share		$	(3.13)	$	2.43
Diluted net (loss) income per common share		$	(3.13)	$	1.91

Anti-dilutive potential common shares excluded from the computation of diluted net income/loss per share:
Equity-based incentive awards		2,558,720		393,750
Series A warrants		—		5,000,000
Series B warrants		100,000,000		—
Total		102,558,720		5,393,750