18. Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

18.   QUARTERLY FINANCIAL DATA (unaudited)

The following table sets forth unaudited consolidated statements of operations data for the eight quarters in the period ended December 31, 2019. This information has been derived from Acacia’s unaudited condensed consolidated financial statements that have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the information when read in conjunction with the audited consolidated financial statements and related notes thereto. Acacia’s quarterly results have been, and may in the future be, subject to significant fluctuations. As a result, Acacia believes that results of operations for interim periods should not be relied upon as any indication of the results to be expected in any future periods.

	Quarter Ended
	Dec. 31,			Sept. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sept. 30,			Jun. 30,			Mar. 31,
	2019			2019			2019			2019			2018			2018			2018			2018
	(Unaudited, in thousands, except share and per share information)
Revenues	$	688		$	1,711		$	5,460		$	3,387		$	49,203		$	13,725		$	6,485		$	62,093
Portfolio operations:
Inventor royalties		192			776			2,623			1,353			11,002			1,181			1,241			21,744
Contingent legal fees		4			35			375			177			11,756			2,949			1,037			15,759
Patent acquisition expenses		–			–			–			–			–			–			–			4,000
Litigation and licensing expenses - patents		1,160			987			1,855			3,801			1,689			1,549			2,639			2,989
Amortization of patents		857			863			818			656			11,560			4,952			5,278			5,330
Other portfolio expenses (income)		1,581			(475	)		–			650			400			2,202			–			–
Total portfolio operations		3,794			2,186			5,671			6,637			36,407			12,833			10,195			49,822
Net portfolio income (loss)		(3,106	)		(475	)		(211	)		(3,250	)		12,796			892			(3,710	)		12,271
General and administrative expenses (including non-cash stock compensation expense)		4,328			4,630			3,763			3,655			2,754			5,855			6,916			3,301
Impairment of patent-related intangible assets		–			–			–			–			–			–			28,210			–
Operating income (loss)		(7,434	)		(5,105	)		(3,974	)		(6,905	)		10,042			(4,963	)		(38,836	)		8,970
Total other income (expense)		5,921			(2,503	)		(1,774	)		2,821			(21,012	)		(27,595	)		10,615			(40,890	)
Income (loss) before provision for income taxes		(1,513	)		(7,608	)		(5,748	)		(4,084	)		(10,970	)		(32,558	)		(28,221	)		(31,920	)
Provision for income taxes		2,147			–			(9	)		(314	)		(397	)		(306	)		(285	)		(191	)
Net income (loss) including noncontrolling interests		634			(7,608	)		(5,757	)		(4,398	)		(11,367	)		(32,864	)		(28,506	)		(32,111	)
Net (income) loss attributable to noncontrolling interests in subsidiaries		–			–			–			14			(2	)		(331	)		79			73
Net income (loss) attributable to Acacia Research Corporation	$	634		$	(7,608	)	$	(5,757	)	$	(4,384	)	$	(11,369	)	$	(33,195	)	$	(28,427	)	$	(32,038	)
Less: Accretion of redeemable preferred stock		(307	)		–			–			–			–			–			–			–
Net income (loss) attributable to common shareholders – basic:	$	327		$	(7,608	)	$	(5,757	)	$	(4,384	)	$	(11,369	)	$	(33,195	)	$	(28,427	)	$	(32,038	)
Basic income (loss) per share	$	0.01		$	(0.15	)	$	(0.12	)	$	(0.09	)	$	(0.23	)	$	(0.67	)	$	(0.57	)	$	(0.63	)
Weighted-average number of shares outstanding, basic		49,875,750			49,828,361			49,696,016			49,655,881			49,639,172			49,557,748			50,061,812			50,632,958
Add: Accretion of redeemable preferred stock		307			–			–			–			–			–			–			–
Less: Mark-to-market adjustment for preferred stock embedded derivative		(3,258	)		–			–			–			–			–			–			–
Net loss attributable to common shareholders – diluted:	$	(2,624	)	$	(7,608	)	$	(5,757	)	$	(4,384	)	$	(11,369	)	$	(33,195	)	$	(28,427	)	$	(32,038	)
Diluted income (loss) per share	$	(0.05	)	$	(0.15	)	$	(0.12	)	$	(0.09	)	$	(0.23	)	$	(0.67	)	$	(0.57	)	$	(0.63	)
Weighted-average number of shares outstanding, diluted		54,406,835			49,828,361			49,696,016			49,655,881			49,639,172			49,557,748			50,061,812			50,632,958

Restatement

Subsequent to the issuance of the interim reports for the periods ended March, June and September 2019, the Company identified balances that were presented incorrectly relating to the presentation of cash flows. The Company re-evaluated its determination of the classification of cash flows related to trading securities and determined the classification of such cash flows within investing activities to be more appropriate.

Included below is a summary of the previously reported amounts, the impact of these adjustments and the as-adjusted amounts for the interim periods ended March, June and September 2019.

	Three months ended						Three months ended						Three months ended
	March 31, 2019						June 30, 2019						September 30, 2019
	As reported			As adjusted			As reported			As adjusted			As reported			As adjusted
Net cash provided by (used in) operating activities		(58,812	)		(1,958	)		(66,026	)		(2,268	)		(65,748	)		(846	)
Net cash provided by (used in) investing activities		3,288			(53,566	)		625			(63,133	)		3,721			(61,181	)
Net cash provided by financing activities		–			–			79			79			79			79
Increase/(decrease) in cash and cash equivalent		(55,524	)		(55,524	)		(65,322	)		(65,322	)		(61,948	)		(61,948	)