5. Investments

3 Months Ended

Mar. 31, 2020

Schedule of Investments [Abstract]

Investments

5. INVESTMENTS

Investment at Fair Value

During 2016 and 2017, Acacia made certain investments in Veritone, Inc. (“Veritone”). As a result of these transactions, Acacia received an aggregate total of 4,119,521 shares of Veritone common stock and warrants to purchase a total of 1,120,432 shares of Veritone common stock at an exercise price of $13.61 per share expiring between 2020 and 2027. During the year ended December 31, 2018, Acacia sold 2,700,000 shares Veritone common stock and recorded a realized loss of $19.1 million. During the year ended December 31, 2019, Acacia sold 1,121,071 shares Veritone common stock and recorded a realized loss of $9.2 million. During the three months ended March 31, 2020, Acacia sold all remaining 298,450 shares Veritone common stock and recorded a realized loss of $3.3 million.

At March 31, 2020, the fair value of the 1,120,432 common stock purchase warrants held by Acacia totaled $1,387,000.

Changes in the fair value of Acacia’s investment in Veritone are recorded as unrealized gains or losses in the consolidated statements of operations. For the three months ended March 31, 2020 and 2019, the accompanying consolidated statements of operations reflected the following:

	Three Months Ended
	March 31,
	2020			2019
	(In thousands)
Change in fair value of investment, warrants	$	630		$	(697	)
Change in fair value of investment, common stock		3,478			7,605
Loss on sale of investment, common stock		(3,316	)		(5,590	)
Net realized and unrealized gain (loss) on investment at fair value	$	792		$	1,318