INVESTMENT AT FAIR VALUE

9 Months Ended

Sep. 30, 2021

Schedule of Investments [Abstract]

INVESTMENT AT FAIR VALUE

4. INVESTMENT AT FAIR VALUE

During 2016 and 2017, Acacia made certain investments in 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 nine months ended September 30, 2020, Acacia sold all remaining 298,450 shares Veritone common stock and recorded a realized loss of $3.3 million.

During the nine months ended September 30, 2020, Acacia exercised 154,312 warrants, and recognized a realized gain of $554,000 on the sale of common stock. During the nine months ended September 30, 2021, Acacia exercised all remaining 156,720 warrants, and recognized a realized gain of $3.6 million on the sale of common stock. The Company no longer has an investment in Veritone common stock and warrants.

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 and nine months ended September 30, 2021 and 2020, the consolidated statements of operations reflected the following: 

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2021		2020			2021			2020
	(In thousands)
Change in fair value of investment, warrants	$	–	$	(3,081	)	$	(2,752	)	$	225
Change in fair value of investment, common stock		–		–			–			3,479
Gain on sale of investment, warrants		–		–			3,591			554
Loss on sale of investment, common stock		–		–			–			(3,316	)
Net realized and unrealized (loss) gain	$	–	$	(3,081	)	$	839		$	942