Quarter Ended

Dec. 31,

Sept. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sept. 30,

Jun. 30,

Mar. 31,

2019

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