6. Investment at Fair Value

12 Months Ended

Dec. 31, 2020

Schedule of Investments [Abstract]

Investment at fair value

6. 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, 2020, Acacia exercised 963,712 warrants, and recorded a realized gain of $11.5 million. At December 31, 2020, the fair value of the 156,720 remaining warrants held by Acacia totaled $2,752,000.

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.

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 year ended December 31, 2020, and 2019, the accompanying consolidated statements of operations reflected the following:

	2020			2019
	(In thousands)
Change in fair value of investment, warrants	$	1,996		$	(1,308	)
Change in fair value of investment, common stock		3,478			11,207
Gain on sale of investment, warrants		11,503			–
Loss on sale of investment, common stock		(3,316	)		(9,230	)
Net realized and unrealized gain on investment at fair value	$	13,661		$	669