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SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
As of December 31, 2024, the Company operates and reports its results in four reportable segments: Intellectual Property Operations, Industrial Operations, Energy Operations and Manufacturing Operations.
The Company reports segment information based on the management approach and organizes its businesses based on products and services. The Company’s Chief Operating Decision Maker (“CODM”) is its Chief Executive Officer, and the management approach designates the internal reporting used by the Chief Executive Officer for decision making, allocating resources 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. Specific asset information is not included in management’s review at this time.
The Company’s Intellectual Property Operations segment invests in IP 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, accordingly, the periods presented below include Benchmark’s operations for the full year ended December 31, 2024, which include post-asset acquisition earnings related to the Revolution Transaction, compared to an approximate two month period ended December 31, 2023.
The Company’s Manufacturing Operations segment generates operating income by serving a broad range of wholesale and retail markets within the highly-fragmented specialty plastics industry. Deflecto primarily designs and manufactures (i) “take-one” point of purchase brochure, folder and applications display holders, (ii) plastic injection-molded office supply and arts, crafts and education products, (iii) plastic and aluminum air venting and air control products, (iv) extruded vinyl chair mats, (v) safety reflectors for bicycles and (vi) mud flaps and splash guards for the heavy duty truck market. The Manufacturing Operations reporting segment did not exist prior to the acquisition of Deflecto in October 2024, accordingly, the periods presented below include Deflecto’s operations from October 18, 2024 through December 31, 2024. As of and for the year ended December 31, 2023, the consolidated results represented the results of the Intellectual Property Operations and Industrial Operations and an approximate two month period ended December 31, 2023 results of the Energy Operations.
The Company’s reportable segment information, including Deflecto’s operations from October 18, 2024 through December 31, 2024, is as follows:
Year Ended December 31, 2024
Intellectual Property OperationsIndustrial OperationsEnergy OperationsManufacturing OperationsTotal
(In thousands)
Revenues:
License fees$19,525 $— $— $— $19,525 
Revenues - industrial operations— 30,421 — — 30,421 
Oil sales— — 26,468 — 26,468 
Natural gas sales— — 9,194 — 9,194 
Natural gas liquids sales— — 13,014 — 13,014 
Other service sales— — 507 — 507 
Air distribution— — — 7,782 7,782 
Safety products— — — 7,977 7,977 
Office products— — — 7,424 7,424 
Total revenues19,525 30,421 49,183 23,183 122,312 
Cost of revenues:
Cost of sales - intellectual property operations24,551 — — — 24,551 
Cost of sales - industrial operations— 14,912 — — 14,912 
Cost of sales - manufacturing operations— — — 16,904 16,904 
Cost of production— — 36,291 — 36,291 
Total cost of revenues24,551 14,912 36,291 16,904 92,658 
Segment gross (loss) profit(5,026)15,509 12,892 6,279 29,654 
Other operating expenses:
General and administrative expenses8,826 13,705 3,427 6,303 32,261 
Total other operating expenses8,826 13,705 3,427 6,303 32,261 
Segment operating (loss) income$(13,852)$1,804 $9,465 $(24)(2,607)
Parent general and administrative expenses30,319 
Operating loss(32,926)
Total other expense(5,221)
Loss before income taxes$(38,147)
he Company’s three reportable segments for the year ended December 31, 2023 is as follows:
Year Ended December 31, 2023
Intellectual Property OperationsIndustrial OperationsEnergy OperationsTotal
(In thousands)
Revenues:
License fees$89,156 $— $— $89,156 
Revenues - industrial operations— 35,098 — 35,098 
Oil sales— — 256 256 
Natural gas sales— — 372 372 
Natural gas liquids sales— — 220 220 
Total revenues89,156 35,098 848 125,102 
Cost of revenues:
Cost of sales - intellectual property operations34,164 — — 34,164 
Cost of sales - industrial operations— 18,009 — 18,009 
Cost of production— — 656 656 
Total cost of revenues34,164 18,009 656 52,829 
Segment gross profit54,992 17,089 192 72,273 
Other operating expenses:
General and administrative expenses7,402 16,365 264 24,031 
Total other operating expenses7,402 16,365 264 24,031 
Segment operating income (loss)$47,590 $724 $(72)48,242 
Parent general and administrative expenses27,306 
Operating income20,936 
Total other income46,490 
Income before income taxes$67,426 
December 31,
20242023
(In thousands)
Total parent assets150,033 318,727 
Segment total assets:
Intellectual property operations213,854 234,254 
Industrial operations48,438 47,854 
Energy operations209,355 32,710 
Manufacturing operations134,714 — 
Total assets$756,394 $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 and Deflecto 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.
Year Ended December 31, 2024
Intellectual Property OperationsIndustrial OperationsEnergy OperationsManufacturing OperationsTotal
(In thousands)
Revenues by geographic area:
United States$7,957 $12,855 $49,183 $13,400 $83,395 
Canada and Latin America6 857 — 3,569 4,432 
Total Americas7,963 13,712 49,183 16,969 87,827 
Europe, Middle East and Africa— 7,974 — 1,575 9,549 
China4,650 1,482 — 3,923 10,055 
India— 2,700 — 26 2,726 
Asia-Pacific, excluding China and India6,912 4,553 — 690 12,155 
Total Asia-Pacific11,562 8,735 — 4,639 24,936 
Total revenues$19,525 $30,421 $49,183 $23,183 $122,312 
Year Ended December 31, 2023
Intellectual Property OperationsIndustrial OperationsEnergy OperationsTotal
(In thousands)
Revenues by geographic area:
United States$80,407 $14,128 $848 $95,383 
Canada and Latin America514 1,100 — 1,614 
Total Americas80,921 15,228 848 96,997 
Europe, Middle East and Africa— 8,935 — 8,935 
China8,200 3,512 — 11,712 
India— 2,849 — 2,849 
Asia-Pacific, excluding China and India35 4,574 — 4,609 
Total Asia-Pacific8,235 10,935 — 19,170 
Total revenues$89,156 $35,098 $848 $125,102 
December 31, 2024
Intellectual Property OperationsIndustrial OperationsEnergy OperationsManufacturing OperationsTotal
(In thousands)
Long-lived tangible assets by geographic area:
United States$126 $220 $192,435 $7,685 $200,466 
Canada— — — 7,225 7,225 
Europe— 99 — 4,257 4,356 
Asia-Pacific— 925 — 2,573 3,498 
Total$126 $1,244 $192,435 $21,740 $215,545 
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 
Asia-Pacific— 2,063 — 2,063 
Total$201 $2,155 $25,117 $27,473