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18. Quarterly Financial Data (Unaudited) | 12 Months Ended
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Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract] |
Quarterly Financial Data (Unaudited) | 18. QUARTERLY FINANCIAL DATA (unaudited) The following table sets forth unaudited consolidated statements of operations data for the eight quarters in the period ended December 31, 2019. This information has been derived from Acacia’s unaudited condensed consolidated financial statements that have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the information when read in conjunction with the audited consolidated financial statements and related notes thereto. Acacia’s quarterly results have been, and may in the future be, subject to significant fluctuations. As a result, Acacia believes that results of operations for interim periods should not be relied upon as any indication of the results to be expected in any future periods.
| Quarter Ended |
| Dec. 31, |  | Sept. 30, |  | Jun. 30, |  | Mar. 31, |  | Dec. 31, |  | Sept. 30, |  | Jun. 30, |  | Mar. 31, |
| 2019 |  | 2019 |  | 2019 |  | 2019 |  | 2018 |  | 2018 |  | 2018 |  | 2018 |
| (Unaudited, in thousands, except share and per share information) |
Revenues | $ | 688 |  | $ | 1,711 |  | $ | 5,460 |  | $ | 3,387 |  | $ | 49,203 |  | $ | 13,725 |  | $ | 6,485 |  | $ | 62,093 |
Portfolio operations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Inventor royalties |  | 192 |  |  | 776 |  |  | 2,623 |  |  | 1,353 |  |  | 11,002 |  |  | 1,181 |  |  | 1,241 |  |  | 21,744 |
Contingent legal fees |  | 4 |  |  | 35 |  |  | 375 |  |  | 177 |  |  | 11,756 |  |  | 2,949 |  |  | 1,037 |  |  | 15,759 |
Patent acquisition expenses |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 4,000 |
Litigation and licensing expenses - patents |  | 1,160 |  |  | 987 |  |  | 1,855 |  |  | 3,801 |  |  | 1,689 |  |  | 1,549 |  |  | 2,639 |  |  | 2,989 |
Amortization of patents |  | 857 |  |  | 863 |  |  | 818 |  |  | 656 |  |  | 11,560 |  |  | 4,952 |  |  | 5,278 |  |  | 5,330 |
Other portfolio expenses (income) |  | 1,581 |  |  | (475 | ) |  | – |  |  | 650 |  |  | 400 |  |  | 2,202 |  |  | – |  |  | – |
Total portfolio operations |  | 3,794 |  |  | 2,186 |  |  | 5,671 |  |  | 6,637 |  |  | 36,407 |  |  | 12,833 |  |  | 10,195 |  |  | 49,822 |
Net portfolio income (loss) |  | (3,106 | ) |  | (475 | ) |  | (211 | ) |  | (3,250 | ) |  | 12,796 |  |  | 892 |  |  | (3,710 | ) |  | 12,271 |
General and administrative expenses (including non-cash stock compensation expense) |  | 4,328 |  |  | 4,630 |  |  | 3,763 |  |  | 3,655 |  |  | 2,754 |  |  | 5,855 |  |  | 6,916 |  |  | 3,301 |
Impairment of patent-related intangible assets |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 28,210 |  |  | – |
Operating income (loss) |  | (7,434 | ) |  | (5,105 | ) |  | (3,974 | ) |  | (6,905 | ) |  | 10,042 |  |  | (4,963 | ) |  | (38,836 | ) |  | 8,970 |
Total other income (expense) |  | 5,921 |  |  | (2,503 | ) |  | (1,774 | ) |  | 2,821 |  |  | (21,012 | ) |  | (27,595 | ) |  | 10,615 |  |  | (40,890 | )
Income (loss) before provision for income taxes |  | (1,513 | ) |  | (7,608 | ) |  | (5,748 | ) |  | (4,084 | ) |  | (10,970 | ) |  | (32,558 | ) |  | (28,221 | ) |  | (31,920 | )
Provision for income taxes |  | 2,147 |  |  | – |  |  | (9 | ) |  | (314 | ) |  | (397 | ) |  | (306 | ) |  | (285 | ) |  | (191 | )
Net income (loss) including noncontrolling interests |  | 634 |  |  | (7,608 | ) |  | (5,757 | ) |  | (4,398 | ) |  | (11,367 | ) |  | (32,864 | ) |  | (28,506 | ) |  | (32,111 | )
Net (income) loss attributable to noncontrolling interests in subsidiaries |  | – |  |  | – |  |  | – |  |  | 14 |  |  | (2 | ) |  | (331 | ) |  | 79 |  |  | 73 |
Net income (loss) attributable to Acacia Research Corporation | $ | 634 |  | $ | (7,608 | ) | $ | (5,757 | ) | $ | (4,384 | ) | $ | (11,369 | ) | $ | (33,195 | ) | $ | (28,427 | ) | $ | (32,038 | )
Less: Accretion of redeemable preferred stock |  | (307 | ) |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |
Net income (loss) attributable to common shareholders – basic: | $ | 327 |  | $ | (7,608 | ) | $ | (5,757 | ) | $ | (4,384 | ) | $ | (11,369 | ) | $ | (33,195 | ) | $ | (28,427 | ) | $ | (32,038 | )
Basic income (loss) per share | $ | 0.01 |  | $ | (0.15 | ) | $ | (0.12 | ) | $ | (0.09 | ) | $ | (0.23 | ) | $ | (0.67 | ) | $ | (0.57 | ) | $ | (0.63 | )
Weighted-average number of shares outstanding, basic |  | 49,875,750 |  |  | 49,828,361 |  |  | 49,696,016 |  |  | 49,655,881 |  |  | 49,639,172 |  |  | 49,557,748 |  |  | 50,061,812 |  |  | 50,632,958 |
Add: Accretion of redeemable preferred stock |  | 307 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |
Less: Mark-to-market adjustment for preferred stock embedded derivative |  | (3,258 | ) |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |
Net loss attributable to common shareholders – diluted: | $ | (2,624 | ) | $ | (7,608 | ) | $ | (5,757 | ) | $ | (4,384 | ) | $ | (11,369 | ) | $ | (33,195 | ) | $ | (28,427 | ) | $ | (32,038 | )
Diluted income (loss) per share | $ | (0.05 | ) | $ | (0.15 | ) | $ | (0.12 | ) | $ | (0.09 | ) | $ | (0.23 | ) | $ | (0.67 | ) | $ | (0.57 | ) | $ | (0.63 | )
Weighted-average number of shares outstanding, diluted |  | 54,406,835 |  |  | 49,828,361 |  |  | 49,696,016 |  |  | 49,655,881 |  |  | 49,639,172 |  |  | 49,557,748 |  |  | 50,061,812 |  |  | 50,632,958 |
Restatement Subsequent to the issuance of the interim reports for the periods ended March, June and September 2019, the Company identified balances that were presented incorrectly relating to the presentation of cash flows. The Company re-evaluated its determination of the classification of cash flows related to trading securities and determined the classification of such cash flows within investing activities to be more appropriate. Included below is a summary of the previously reported amounts, the impact of these adjustments and the as-adjusted amounts for the interim periods ended March, June and September 2019.
|  | Three months ended |  |  | Three months ended |  |  | Three months ended |
|  | March 31, 2019 |  |  | June 30, 2019 |  |  | September 30, 2019 |
|  | As reported |  |  | As adjusted |  |  | As reported |  |  | As adjusted |  |  | As reported |  |  | As adjusted |
Net cash provided by (used in) operating activities |  |  | (58,812 | ) |  |  | (1,958 | ) |  |  | (66,026 | ) |  |  | (2,268 | ) |  |  | (65,748 | ) |  |  | (846 | )
Net cash provided by (used in) investing activities |  |  | 3,288 |  |  |  | (53,566 | ) |  |  | 625 |  |  |  | (63,133 | ) |  |  | 3,721 |  |  |  | (61,181 | )
Net cash provided by financing activities |  |  | – |  |  |  | – |  |  |  | 79 |  |  |  | 79 |  |  |  | 79 |  |  |  | 79 |
Increase/(decrease) in cash and cash equivalent |  |  | (55,524 | ) |  |  | (55,524 | ) |  |  | (65,322 | ) |  |  | (65,322 | ) |  |  | (61,948 | ) |  |  | (61,948 | )

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- Definition The entire disclosure for quarterly financial data. Includes, but is not limited to, tabular presentation of financial information for fiscal quarters, effect of year-end adjustments, and an explanation of matters or transactions that affect comparability of the information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -URI http://asc.fasb.org/topic&trid=2126967 + Details
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