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SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
As of June 30, 2024, the Company operates and reports its results in three reportable segments: Intellectual Property Operations, Industrial Operations and Energy Operations.
The Company reports segment information based on the management approach and organizes its businesses based on products and services. The management approach designates the internal reporting used by the chief operating decision maker for decision making and performance assessment as the basis for determining the Company’s reportable segments. The performance measure of the Company’s reportable segments is primarily income or (loss) from operations. Income or
(loss) from operations for each segment includes all revenues, cost of revenues, gross profit and other operating expenses directly attributable to the segment. Other than the Company's equity securities investments, specific asset information is not included in managements review at this time.
The Company’s Intellectual Property Operations segment invests in IP and related absolute return assets, and engages in the licensing and enforcement of patented technologies. Through our Patent Licensing, Enforcement and Technologies Business we are a principal in the licensing and enforcement of patent portfolios, with our operating subsidiaries obtaining the rights in the patent portfolio or purchasing the patent portfolio outright. While we, from time to time, partner with inventors and patent owners, from small entities to large corporations, we assume all responsibility for advancing operational expenses while pursuing a patent licensing and enforcement program. When applicable, we share net licensing revenue with our patent partners as that program matures, on a prearranged and negotiated basis. We may also provide upfront capital to patent owners as an advance against future licensing revenue. Currently, on a consolidated basis, our operating subsidiaries own or control the rights to multiple patent portfolios, which include U.S. patents and certain foreign counterparts, covering technologies used in a variety of industries. We generate revenues and related cash flows from the granting of IP rights for the use of patented technologies that our operating subsidiaries control or own.
The Company’s Industrial Operations segment generates operating income by designing and manufacturing printers and consumable products for various industrial printing applications. Printers consist of hardware and embedded software and may be sold with maintenance service agreements. Consumable products include inked ribbons which are used in Printronix’s printers. Printronix’s products are primarily sold through channel partners, such as dealers and distributors, to end-users.
The Company's Energy Operations segment generates operating income from its wells and engages in the acquisition, exploration, development, and production of oil and natural gas resources located in Texas and Oklahoma. Benchmark seeks to acquire predictable and shallow decline, cash flowing oil and gas properties whose value can be enhanced via a disciplined, field optimization strategy, with risk managed through robust commodity hedges and low leverage. The Energy Operations reporting segment did not exist prior to the acquisition of Benchmark in November 2023. As of and for the three and six months ended June 30, 2023, the consolidated results represented the results of the Company's two reporting segments: Intellectual Property Operations and Industrial Operations.
The Company's segment information is as follows:
Three Months Ended June 30, 2024Six Months Ended June 30, 2024
Intellectual Property OperationsIndustrial OperationsEnergy OperationsTotalIntellectual Property OperationsIndustrial OperationsEnergy OperationsTotal
(In thousands)(In thousands)
Revenues:
License fees$5,333 $— $— $5,333 $18,956 $— $— $18,956 
Printers and parts— 1,884 — 1,884 — 4,949 — 4,949 
Consumable products— 3,567 — 3,567 — 8,580 — 8,580 
Services— 884 — 884 — 1,647 — 1,647 
Oil sales— — 8,082 8,082 — — 8,743 8,743 
Natural gas sales— — 1,991 1,991 — — 2,721 2,721 
Natural gas liquids sales— — 4,097 4,097 — — 4,562 4,562 
Total revenues5,333 6,335 14,170 25,838 18,956 15,176 16,026 50,158 
Cost of revenues:
Inventor royalties802 — — 802 1,408 — — 1,408 
Contingent legal fees571 — — 571 2,395 — — 2,395 
Litigation and licensing expenses1,152 — — 1,152 2,290 — — 2,290 
Amortization of patents3,240 — — 3,240 6,673 — — 6,673 
Cost of sales— 3,277 — 3,277 — 7,326 — 7,326 
Cost of production— — 10,038 10,038 — — 11,353 11,353 
Total cost of revenues5,765 3,277 10,038 19,080 12,766 7,326 11,353 31,445 
Segment gross (loss) profit(432)3,058 4,132 6,758 6,190 7,850 4,673 18,713 
Other operating expenses:
Engineering and development expenses— 178 — 178 — 312 — 312 
Sales and marketing expenses— 1,387 — 1,387 — 2,942 — 2,942 
Amortization of intangible assets— 433 — 433 — 866 — 866 
General and administrative expenses1,821 1,294 883 3,998 5,161 2,752 1,268 9,181 
Total other operating expenses1,821 3,292 883 5,996 5,161 6,872 1,268 13,301 
Segment operating (loss) income$(2,253)$(234)$3,249 762 $1,029 $978 $3,405 5,412 
Parent general and administrative expenses5,520 12,257 
Operating loss(4,758)(6,845)
Total other expense(11,132)(10,343)
Loss before income taxes$(15,890)$(17,188)
Three Months Ended June 30, 2023Six Months Ended June 30, 2023
Intellectual Property OperationsIndustrial OperationsTotalIntellectual Property OperationsIndustrial OperationsTotal
(In thousands)
Revenues:
License fees$394 $— $394 $4,570 $— $4,570 
Printers and parts— 2,324 2,324 — 6,788 6,788 
Consumable products— 4,328 4,328 — 9,498 9,498 
Services— 858 858 — 1,851 1,851 
Total revenues394 7,510 7,904 4,570 18,137 22,707 
Cost of revenues:
Inventor royalties145 — 145 366 — 366 
Contingent legal fees12 — 12 544 — 544 
Litigation and licensing expenses2,253 — 2,253 3,637 — 3,637 
Amortization of patents2,600 — 2,600 5,201 — 5,201 
Cost of sales— 3,933 3,933 — 9,153 9,153 
Total cost of revenues5,010 3,933 8,943 9,748 9,153 18,901 
Segment gross (loss) profit(4,616)3,577 (1,039)(5,178)8,984 3,806 
Other operating expenses:
Engineering and development expenses— 205 205 — 421 421 
Sales and marketing expenses— 1,859 1,859 — 3,772 3,772 
Amortization of intangible assets— 434 434 — 867 867 
General and administrative expenses1,602 1,592 3,194 3,499 3,877 7,376 
Total other operating expenses1,602 4,090 5,692 3,499 8,937 12,436 
Segment operating (loss) income$(6,218)$(513)(6,731)$(8,677)$47 (8,630)
Parent general and administrative expenses5,798 13,223 
Operating income loss(12,529)(21,853)
Total other (expense) income(7,895)13,359 
Loss before income taxes$(20,424)$(8,494)
June 30, 2024December 31, 2023
(In thousands)
Equity securities investments:
Equity securities$18,174 $63,068 
Equity securities without readily determinable fair value5,816 5,816 
Equity method investments30,934 30,934 
Total parent equity securities investments54,924 99,818 
Other parent assets203,728 218,909 
Segment total assets:
Intellectual property operations231,034 234,254 
Industrial operations47,180 47,854 
Energy operations216,727 32,710 
Total assets$753,593 $633,545 
The Company's revenues and long-lived tangible assets by geographic area are presented below. Intellectual Property Operations revenues are attributed to licensees domiciled in foreign jurisdictions. Printronix's net sales to external customers are attributed to geographic areas based upon the final destination of products shipped. The Company, primarily through its Printronix subsidiary, has identified three global regions for marketing its products and services: Americas, Europe, Middle East and Africa, and Asia-Pacific. Assets are summarized based on the location of held assets. Benchmark's sales are only attributed to the United States of America.
Three Months Ended June 30, 2024Six Months Ended June 30, 2024
Intellectual Property OperationsIndustrial OperationsEnergy OperationsTotalIntellectual Property OperationsIndustrial OperationsEnergy OperationsTotal
(In thousands)
Revenues by geographic area:
United States$5,331 $2,873 $14,170 $22,374 $7,395 $6,032 $16,026 $29,453 
Canada and Latin America— 220 — 220 1 486 — 487 
Total Americas5,331 3,093 14,170 22,594 7,396 6,518 16,026 29,940 
Europe, Middle East and Africa— 1,705 — 1,705 — 4,183 — 4,183 
China— 232 — 232 4,650 750 — 5,400 
India— 517 — 517 — 1,435 — 1,435 
Asia-Pacific, excluding China and India2 788 — 790 6,910 2,290 — 9,200 
Total Asia-Pacific2 1,537 — 1,539 11,560 4,475 — 16,035 
Total revenues$5,333 $6,335 $14,170 $25,838 $18,956 $15,176 $16,026 $50,158 
Three Months Ended June 30, 2023Six Months Ended June 30, 2023
Intellectual Property OperationsIndustrial OperationsTotalIntellectual Property OperationsIndustrial OperationsTotal
(In thousands)
Revenues by geographic area:
United States$386 $3,277 $3,663 $1,059 $7,511 $8,570 
Canada and Latin America7 334 341 508 553 1,061 
Total Americas393 3,611 4,004 1,567 8,064 9,631 
Europe, Middle East and Africa— 1,962 1,962 — 4,927 4,927 
China— 772 772 3,000 1,615 4,615 
India— 170 170 — 998 998 
Asia-Pacific, excluding China and India1 995 996 3 2,533 2,536 
Total Asia-Pacific1 1,937 1,938 3,003 5,146 8,149 
Total revenues$394 $7,510 $7,904 $4,570 $18,137 $22,707 
June 30, 2024
Intellectual Property OperationsIndustrial OperationsEnergy OperationsTotal
(In thousands)
Long-lived tangible assets by geographic area:
United States$183 $6 $192,980 $193,169 
Malaysia— 1,576 — 1,576 
Other foreign countries— 157 — 157 
Total$183 $1,739 $192,980 $194,902 
December 31, 2023
Intellectual Property OperationsIndustrial OperationsEnergy OperationsTotal
(In thousands)
Long-lived tangible assets by geographic area:
United States$201 $92 $25,117 $25,410 
Malaysia— 1,949 — 1,949 
Other foreign countries— 114 — 114 
Total$201 $2,155 $25,117 $27,473