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CORRECTION OF IMMATERIAL ERROR | 12 Months Ended
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Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
CORRECTION OF IMMATERIAL ERROR | CORRECTION OF IMMATERIAL ERROR The Company identified and recorded an adjustment to the current and prior periods related to the estimated amortization period of deferred debt issuance costs. Pursuant to the Securities Purchase Agreement dated November 18, 2019 with Starboard and the Buyers, an upfront fee was payable by the Company upon the first closing of Senior Secured Notes. The fee was defined as 1.25% of the maximum $365.0 million principal amount of the Senior Secured Notes issuable under the Securities Purchase Agreement. The Company paid and capitalized this upfront fee of $4.6 million upon the issuance of our Senior Secured Notes in June 2020 (refer to Note 10). The lender fees were initially recognized as long-term deferred debt issuance costs and were included in other non-current assets in the consolidated balance sheets up to and as of September 30, 2021, and were to be amortized to interest expense until November 15, 2027, the original maturity/expiration date of the transactions governed by the Starboard investment. During the fourth quarter of 2021, it was determined the correct deferred debt issuance costs amortization period was the approximate seven month period ended December 31, 2020, the initial redemption date of the Notes. Accordingly, the Company has adjusted the related prior period consolidated financial statements to reflect this correction to the periods presented below. In accordance with Staff Accounting Bulletin ("SAB") No. 99, “Materiality,” and SAB No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements,” the Company evaluated the error a nd determined that the related impact did not materially misstate previously issued consolidated financial statements. Although the Company concluded that the misstatement was n ot material to its previously issued consolidated financial statements, the Company has determined it is appropriate to adjust its previously issued consolidated financial statements to correct for the error. The following are the relevant line items from the Company's consolidated financial statements illustrating the effect of the corrections to the periods presented:
| As of and for the Year Ended December 31, 2020
| As Previously Reported |  | Adjustments |  | As Adjusted
| (In thousands, except per share data)
Balance Sheet: |  |  |  |  |
Other non-current assets (excluding property, plant and equipment) | $ | 4,718 |  |  | $ | (4,213) |  |  | $ | 505 |
Total assets | 515,520 |  |  | (4,213) |  |  | 511,307 |
Accumulated deficit | (326,708) |  |  | (4,213) |  |  | (330,921) |
Total stockholders' equity | 292,529 |  |  | (4,213) |  |  | 288,316 |
Statement of Operations: |  |  |  |  |
Interest expense on Senior Secured Notes | $ | (5,923) |  |  | $ | (4,213) |  |  | $ | (10,136) |
Total other income | 131,803 |  |  | (4,213) |  |  | 127,590 |
Net income attributable to Acacia Research Corporation | 113,444 |  |  | (4,213) |  |  | 109,231 |
Income per share: |  |  |  |  |
Basic net income per common share | $ | 1.85 |  |  | $ | (0.07) |  |  | $ | 1.78 |
Diluted net income per common share | $ | 1.54 |  |  | $ | (0.06) |  |  | $ | 1.48 |
Statement of Cash Flows: |  |  |  |  |
Net income including noncontrolling interests in subsidiaries | $ | 113,444 |  |  | $ | (4,213) |  |  | $ | 109,231 |
Amortization of debt discount and issuance costs | 2,838 |  |  | 4,213 |  |  | 7,051 |
Net cash used in operating activities | (19,620) |  |  | — |  |  | (19,620) |
| As of and for the Three Months Ended March 31, 2021
| As Previously Reported |  | Adjustments |  | As Adjusted
| (Unaudited and in thousands, except per share data)
Balance Sheet: |  |  |  |  |
Other non-current assets | $ | 4,834 |  |  | $ | (4,060) |  |  | $ | 774 |
Total assets | 568,958 |  |  | (4,060) |  |  | 564,898 |
Accumulated deficit | (491,326) |  |  | (4,060) |  |  | (495,386) |
Total stockholders' equity | 128,148 |  |  | (4,060) |  |  | 124,088 |
Statement of Operations: |  |  |  |  |
Interest expense on Senior Secured Notes | $ | (1,310) |  |  | $ | 153 |  |  | $ | (1,157) |
Total other expense | (158,032) |  |  | 153 |  |  | (157,879) |
Net loss attributable to Acacia Research Corporation | (164,618) |  |  | 153 |  |  | (164,465) |
Loss per share: |  |  |  |  |
Basic and diluted net loss per common share | $ | (2.81) |  |  | $ | — |  |  | $ | (2.81) |
Statement of Cash Flows: |  |  |  |  |
Net loss including noncontrolling interests in subsidiaries | $ | (163,718) |  |  | $ | 153 |  |  | $ | (163,565) |
Amortization of debt discount and issuance costs | 702 |  |  | (153) |  |  | 549 |
Net cash used in operating activities | (6,120) |  |  | — |  |  | (6,120) |
| As of and for the Six Months Ended June 30, 2021
| As Previously Reported |  | Adjustments |  | As Adjusted
| (Unaudited and in thousands, except per share data)
Balance Sheet: |  |  |  |  |
Other non-current assets | $ | 4,653 |  |  | $ | (3,907) |  |  | $ | 746 |
Total assets | 627,732 |  |  | (3,907) |  |  | 623,825 |
Accumulated deficit | (471,819) |  |  | (3,907) |  |  | (475,726) |
Total stockholders' equity | 147,103 |  |  | (3,907) |  |  | 143,196 |
Statement of Operations: |  |  |  |  |
Interest expense on Senior Secured Notes | $ | (3,070) |  |  | $ | 306 |  |  | $ | (2,764) |
Total other expense | (139,653) |  |  | 306 |  |  | (139,347) |
Net loss attributable to Acacia Research Corporation | (145,111) |  |  | 306 |  |  | (144,805) |
Loss per share: |  |  |  |  |
Basic and diluted net loss per common share | $ | (3.03) |  |  | $ | 0.01 |  |  | $ | (3.02) |
Statement of Cash Flows: |  |  |  |  |
Net loss including noncontrolling interests in subsidiaries | $ | (144,205) |  |  | $ | 306 |  |  | $ | (143,899) |
Amortization of debt discount and issuance costs | 128 |  |  | (306) |  |  | (178) |
Net cash used in operating activities | (6,197) |  |  | — |  |  | (6,197) |
| As of and for the Nine Months Ended September 30, 2021
| As Previously Reported |  | Adjustments |  | As Adjusted
| (Unaudited and in thousands, except per share data)
Balance Sheet: |  |  |  |  |
Other non-current assets | $ | 4,482 |  |  | $ | (3,754) |  |  | $ | 728 |
Total assets | 749,834 |  |  | (3,754) |  |  | 746,080 |
Accumulated deficit | (382,215) |  |  | (3,754) |  |  | (385,969) |
Total stockholders' equity | 235,862 |  |  | (3,754) |  |  | 232,108 |
Statement of Operations: |  |  |  |  |
Interest expense on Senior Secured Notes | $ | (5,601) |  |  | $ | 459 |  |  | $ | (5,142) |
Total other expense | (37,316) |  |  | 459 |  |  | (36,857) |
Net loss attributable to Acacia Research Corporation | (55,507) |  |  | 459 |  |  | (55,048) |
Loss per share: |  |  |  |  |
Basic and diluted net loss per common share | $ | (1.21) |  |  | $ | 0.01 |  |  | $ | (1.20) |
Statement of Cash Flows: |  |  |  |  |
Net loss including noncontrolling interests in subsidiaries | $ | (54,601) |  |  | $ | 459 |  |  | $ | (54,142) |
Amortization of debt discount and issuance costs | 460 |  |  | (459) |  |  | 1 |
Net cash used in operating activities | (7,602) |  |  | — |  |  | (7,602) |

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