2. Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Disaggregation of revenue

	2019		2018
	(In thousands)
Paid-up Revenue Agreements	$	6,343	$	100,496
Recurring Revenue Agreements		4,903		13,040
Other Settlements		–		3,470
Sales		–		14,500
	$	11,246	$	131,506

Schedule of fair value of financial assets and liabilities on a recurring basis

	Level 1		Level 2		Level 3
			(In thousands)
Assets as of December 31, 2019:
Trading securities - debt	$	–	$	93,843	$	–
Trading securities - equity		17,140		–		–
Investment at fair value - warrants (Note 6)		–		757		–
Investment at fair value - common stock (Note 6)		743		–		–
Total recurring fair value measurements as of December 31, 2019	$	17,883	$	94,600	$	–
Assets as of December 31, 2018:
Trading securities - debt	$	–	$	33,642	$	–
Trading securities - equity		3,012		–		–
Investment at fair value - warrants (Note 6)		–		2,064		–
Investment at fair value - common stock (Note 6)		5,395		–		–
Total recurring fair value measurements as of December 31, 2018	$	8,407	$	35,706	$	–
Liabilities as of December 31, 2019:
Profits interest units	$	–	$	591	$	–
Series A warrants		–		3,568		–
Embedded derivative liability		–		–		17,974
Total liabilities as of December 31, 2019	$	–	$	4,159	$	17,974
Liabilities as of December 31, 2018:
Profits interest units	$	–	$	591	$	–
Total liabilities as of December 31, 2018	$	–	$	591	$	–

Summary of changes in finacial liability Level 3

	Embedded Derivative
	(In thousands)
Opening balance as of January 1, 2019	$	–
Issuance of Series A redeemable convertible preferred stock with embedded derivative		21,232
Remeasurement of Series A redeemable convertible preferred stock embedded derivative to fair value		(3,258	)
Total Level 3 recurring fair value measurements as of December 31, 2019	$	17,974

Schedule of useful lives of property and equipment

Furniture and fixtures	3 to 5 years
Computer hardware and software	3 to 5 years
Leasehold improvements	2 to 5 years (Lesser of lease term or useful life of improvement)

Stock-based compensation assumptions used

The fair values of stock options granted during the year ended December 31, 2018 were estimated using the Black-Scholes option-pricing model, based on the following weighted-average assumptions:

	For the Year Ended December 31, 2018
Risk-free interest rate	2.26%
Term	4.37
Volatility	51%
Dividend yield	–%

Calculation of basic and diluted loss per common share

	2019			2018
	(In thousands, except percentage change values)
Basic
Numerator:
Net loss attributable to Acacia Research Corporation		(17,115	)		(105,029	)
Accretion of Series A Redeemable Convertible Preferred Stock		(307	)		–
Net loss attributable to common stockholders - basic		(17,422	)		(105,029	)
Denominator:
Weighted-average shares used in computing net loss per share attributable to common stockholders - basic		49,764,002			49,969,062
Basic net loss per share of common stock	$	(0.35	)	$	(2.10	)
Diluted
Numerator:
Net loss attributable to Acacia Research Corporation		(17,115	)		(105,029	)
Mark-to-market adjustment for preferred stock embedded derivative		(3,258	)		–
Net loss attributable to common stockholders - diluted		(20,373	)		(105,029	)
Denominator:
Weighted-average shares used in computing net loss per share attributable to common stockholders - basic		49,764,002			49,969,062
Effect of potentially dilutive securities: Series A preferred stock		1,132,771			–
Weighted-average shares used in computing net loss per share attributable to common stockholders - diluted		50,896,773			49,969,062
Diluted net loss per share of common stock	$	(0.40	)	$	(2.10	)