2. Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Disaggregation of revenue

Revenues were comprised of the following for the periods presented:

	2020		2019
	(In thousands)
Paid-up Revenue Agreements	$	28,389	$	6,343
Recurring Revenue Agreements		1,393		4,903
Total Revenue	$	29,782	$	11,246

Schedule of useful lives of property and equipment

. Depreciation and amortization is computed on a straight-line basis over the following estimated useful lives of the assets:

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)

Calculation of basic and diluted loss per common share

	Years Ended
	December 31,
	2020			2019
	(In thousands, except share and per share information)
Numerator:
Net income (loss) attributable to Acacia Research Corporation	$	113,444		$	(17,115	)
Dividend on Series A redeemable convertible preferred stock		(1,381	)		–
Accretion of Series A redeemable convertible preferred stock		(2,835	)		(307	)
Undistributed earnings allocated to participating securities		(18,898	)		–
Net income (loss) attributable to common stockholders - basic		90,330			(17,422	)
Add: Accretion of Series A redeemable convertible preferred stock		–			307
Less: Change in fair value of Series A redeemable convertible preferred stock embedded derivative		–			(3,258	)
Less: Change in fair value of Series A warrants		(1,348	)		–
Less: Change in fair value of dilutive Series B warrants		(5,557	)		–
Add: Interest expense associated with Starboard Notes, net of tax		1,889			–
Add: Undistributed earnings allocated to participating securities		18,898			–
Reallocation of undistributed earnings to participating securities		(15,740	)		–
Net income (loss) attributable to common stockholders - diluted	$	88,471		$	(20,373	)
Denominator:
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders - basic		48,840,829			49,764,002
Potentially dilutive common shares:
Series A Preferred Stock		–			1,132,771
Restricted stock units		637,044			–
Employee stock options		2,952			–
Series A Warrants		77,592			–
Series B Warrants		7,876,712			–
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders - diluted		57,435,128			50,896,773
Basic net income (loss) per common share	$	1.85		$	(0.35	)
Diluted net income (loss) per common share	$	1.54		$	(0.40	)

Schedule of antidilutive shares

Anti-dilutive potential common shares excluded from the computation of diluted net income (loss) per common share:
Equity-based incentive awards	206,916	1,783,254
Series A warrants	–	5,000,000
Series B warrants	68,493,151	–
Total	68,700,067	6,783,254