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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
As of September 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 nine months ended September 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 September 30, 2024Nine Months Ended September 30, 2024
Intellectual Property OperationsIndustrial OperationsEnergy OperationsTotalIntellectual Property OperationsIndustrial OperationsEnergy OperationsTotal
(In thousands)
Revenues:
License fees$486 $— $— $486 $19,442 $— $— $19,442 
Printers and parts— 2,367 — 2,367 — 7,316 — 7,316 
Consumable products— 3,782 — 3,782 — 12,362 — 12,362 
Services— 858 — 858 — 2,505 — 2,505 
Oil sales— — 8,997 8,997 — — 17,740 17,740 
Natural gas sales— — 2,829 2,829 — — 5,550 5,550 
Natural gas liquids sales— — 3,837 3,837 — — 8,390 8,390 
Other service sales— — 154 154 — — 163 163 
Total revenues486 7,007 15,817 23,310 19,442 22,183 31,843 73,468 
Cost of revenues:
Inventor royalties220 — — 220 1,628 — — 1,628 
Contingent legal fees(22)— — (22)2,373 — — 2,373 
Litigation and licensing expenses797 — — 797 3,087 — — 3,087 
Amortization of patents4,712 — — 4,712 11,385 — — 11,385 
Cost of sales— 3,523 — 3,523 — 10,849 — 10,849 
Cost of production— — 11,729 11,729 — — 23,082 23,082 
Total cost of revenues5,707 3,523 11,729 20,959 18,473 10,849 23,082 52,404 
Segment gross (loss) profit(5,221)3,484 4,088 2,351 969 11,334 8,761 21,064 
Other operating expenses:
Engineering and development expenses— 108 — 108 — 420 — 420 
Sales and marketing expenses— 1,391 — 1,391 — 4,333 — 4,333 
Amortization of intangible assets— 433 — 433 — 1,299 — 1,299 
General and administrative expenses1,917 1,653 1,024 4,594 7,078 4,405 2,292 13,775 
Total other operating expenses1,917 3,585 1,024 6,526 7,078 10,457 2,292 19,827 
Segment operating (loss) income$(7,138)$(101)$3,064 (4,175)$(6,109)$877 $6,469 1,237 
Parent general and administrative expenses6,097 18,354 
Operating loss(10,272)(17,117)
Total other income (expense)4,112 (6,231)
Loss before income taxes$(6,160)$(23,348)
Three Months Ended September 30, 2023Nine Months Ended September 30, 2023
Intellectual Property OperationsIndustrial OperationsTotalIntellectual Property OperationsIndustrial OperationsTotal
(In thousands)
Revenues:
License fees$1,760 $— $1,760 $6,330 $— $6,330 
Printers and parts— 2,852 2,852 — 9,640 9,640 
Consumable products— 4,576 4,576 — 14,074 14,074 
Services— 896 896 — 2,747 2,747 
Total revenues1,760 8,324 10,084 6,330 26,461 32,791 
Cost of revenues:
Inventor royalties497 — 497 863 — 863 
Contingent legal fees346 — 346 890 — 890 
Litigation and licensing expenses2,026 — 2,026 5,663 — 5,663 
Amortization of patents2,601 — 2,601 7,802 — 7,802 
Cost of sales— 4,377 4,377 — 13,530 13,530 
Total cost of revenues5,470 4,377 9,847 15,218 13,530 28,748 
Segment gross (loss) profit(3,710)3,947 237 (8,888)12,931 4,043 
Other operating expenses:
Engineering and development expenses— 172 172 — 593 593 
Sales and marketing expenses— 1,613 1,613 — 5,385 5,385 
Amortization of intangible assets— 432 432 — 1,299 1,299 
General and administrative expenses1,818 1,567 3,385 5,317 5,444 10,761 
Total other operating expenses1,818 3,784 5,602 5,317 12,721 18,038 
Segment operating (loss) income$(5,528)$163 (5,365)$(14,205)$210 (13,995)
Parent general and administrative expenses7,788 21,011 
Operating income loss(13,153)(35,006)
Total other income15,718 29,077 
Income (loss) before income taxes$2,565 $(5,929)
September 30, 2024December 31, 2023
(In thousands)
Equity securities investments:
Equity securities$14,100 $63,068 
Equity securities without readily determinable fair value5,816 5,816 
Equity method investments30,934 30,934 
Total parent equity securities investments50,850 99,818 
Other parent assets176,739 218,909 
Segment total assets:
Intellectual property operations220,914 234,254 
Industrial operations47,816 47,854 
Energy operations211,253 32,710 
Total assets$707,572 $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 September 30, 2024Nine Months Ended September 30, 2024
Intellectual Property OperationsIndustrial OperationsEnergy OperationsTotalIntellectual Property OperationsIndustrial OperationsEnergy OperationsTotal
(In thousands)
Revenues by geographic area:
United States$483 $3,074 $15,817 $19,374 $7,878 $9,106 $31,843 $48,827 
Canada and Latin America2 233 — 235 3 719 — 722 
Total Americas485 3,307 15,817 19,609 7,881 9,825 31,843 49,549 
Europe, Middle East and Africa— 1,689 — 1,689 — 5,872 — 5,872 
China— 306 — 306 4,650 1,056 — 5,706 
India— 633 — 633 — 2,068 — 2,068 
Asia-Pacific, excluding China and India1 1,072 — 1,073 6,911 3,362 — 10,273 
Total Asia-Pacific1 2,011 — 2,012 11,561 6,486 — 18,047 
Total revenues$486 $7,007 $15,817 $23,310 $19,442 $22,183 $31,843 $73,468 
Three Months Ended September 30, 2023Nine Months Ended September 30, 2023
Intellectual Property OperationsIndustrial OperationsTotalIntellectual Property OperationsIndustrial OperationsTotal
(In thousands)
Revenues by geographic area:
United States$1,756 $3,476 $5,232 $2,815 $10,987 $13,802 
Canada and Latin America2 238 240 510 791 1,301 
Total Americas1,758 3,714 5,472 3,325 11,778 15,103 
Europe, Middle East and Africa— 1,840 1,840 — 6,767 6,767 
China— 793 793 3,000 2,408 5,408 
India— 1,024 1,024 — 2,022 2,022 
Asia-Pacific, excluding China and India2 953 955 5 3,486 3,491 
Total Asia-Pacific2 2,770 2,772 3,005 7,916 10,921 
Total revenues$1,760 $8,324 $10,084 $6,330 $26,461 $32,791 
September 30, 2024
Intellectual Property OperationsIndustrial OperationsEnergy OperationsTotal
(In thousands)
Long-lived tangible assets by geographic area:
United States$141 $252 $190,885 $191,278 
Malaysia— 964 — 964 
Other foreign countries— 273 — 273 
Total$141 $1,489 $190,885 $192,515 
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