XML 43 R29.htm IDEA: XBRL DOCUMENT
v3.22.1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2021
Accounting Policies [Abstract] |
Disaggregation of Revenue | License revenues were comprised of the following for the periods presented:
| Years Ended December 31,
| 2021 |  | 2020
| (In thousands)
Paid-up license revenue agreements | $ | 73,585 |  |  | $ | 28,389 |
Recurring License Revenue Agreements | 2,458 |  |  | 1,393 |
Total | $ | 76,043 |  |  | $ | 29,782 |
Printronix's net revenues from October 7, 2021 through December 31, 2021 were comprised of the following (in thousands):
Printers, consumables and parts | $ | 10,934 |  |  |
Services | 1,070 |  |  |
Total | $ | 12,004 |  |  |
Schedule of Other Operating Cost and Expense, by Component | Cost of revenues were comprised of the following for the periods presented:
| Years Ended December 31,
| 2021 |  | 2020
| (In thousands)
Inventor royalties | $ | 1,142 |  |  | $ | 7,349 |
Contingent legal fees | 12,074 |  |  | 7,419 |
Litigation and licensing expenses | 5,462 |  |  | 5,683 |
Amortization of patents | 9,851 |  |  | 4,681 |
Other patent portfolio expense (income) | 162 |  |  | (308) |
Total | $ | 28,691 |  |  | $ | 24,824 |
Schedule of Product Warranty Liability | The following is a summary of the accrued warranty liabilities for the period from October 7, 2021 through December 31, 2021, which are included in accrued expenses and other current liabilities, and other long-term liabilities in the consolidated balance sheet as of December 31, 2021 (in thousands):
Beginning balance (October 7, 2021) | $ | 260 |  |  |
Estimated future warranty expense | 17 |  |  |
Warranty claims settled | (55) |  |  |
Ending balance | $ | 222 |  |  |
Unrealized Gain (Loss) on Investments | Equity securities at fair value for the periods presented were comprised of the following:
Security Type |  | Cost |  | Gross Unrealized Gain |  | Gross Unrealized Loss |  | Fair Value
|  | (In thousands)
December 31, 2021: |  |  |  |  |  |  |  |
Equity securities - Life Sciences Portfolio (Note 4) |  | $ | 56,037 |  |  | $ | 262,811 |  |  | $ | (1,488) |  |  | $ | 317,360 |
Equity securities |  | 43,822 |  |  | 2,068 |  |  | (1,472) |  |  | 44,418 |
Total |  | $ | 99,859 |  |  | $ | 264,879 |  |  | $ | (2,960) |  |  | $ | 361,778 |
December 31, 2020: |  |  |  |  |  |  |  |
Equity securities - Life Sciences Portfolio (Note 4) |  | $ | 32,765 |  |  | $ | 72,689 |  |  | $ | (583) |  |  | $ | 104,871 |
Equity securities |  | 4,086 |  |  | 1,410 |  |  | (1,264) |  |  | 4,232 |
Total |  | $ | 36,851 |  |  | $ | 74,099 |  |  | $ | (1,847) |  |  | $ | 109,103 |
The consolidated statements of operations reflected the following net realized and unrealized gains from our Life Sciences Portfolio:
| Years Ended December 31,
| 2021 |  | 2020
| (In thousands)
Change in fair value of equity securities of public companies | $ | 188,875 |  |  | $ | 72,104 |
Change in fair value of equity securities without readily determinable fair value | — |  |  | 103,751 |
Conversion of equity securities without readily determinable fair value to equity securities of public companies | (102,067) |  |  | — |
Gain (loss) on sale of equity securities of public companies | 115,172 |  |  | (3,930) |
Gain on sale of prepaid investment and derivative | — |  |  | 2,845 |
Net realized and unrealized gain | $ | 201,980 |  |  | $ | 174,770 |
Schedule of useful lives of property and equipmen | Depreciation and amortization is computed on a straight-line basis over the following estimated useful lives of the assets:
Machinery and equipment | 2 to 10 years
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)
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of basic and diluted income/loss per share of common stock:
| Years Ended December 31,
| 2021 |  | 2020
| (In thousands, except share and per share data)
Numerator: |  |  |
Net income attributable to Acacia Research Corporation | $ | 149,197 |  |  | $ | 109,231 |
Dividend on Series A redeemable convertible preferred stock | (1,452) |  |  | (1,381) |
Accretion of Series A redeemable convertible preferred stock | (3,829) |  |  | (2,835) |
Undistributed earnings allocated to participating securities | (25,112) |  |  | (18,169) |
Net income attributable to common stockholders - Basic | 118,804 |  |  | 86,846 |
Add: Dividend on Series A redeemable convertible preferred stock | 1,452 |  |  | — |
Add: Accretion of Series A redeemable convertible preferred stock | 3,829 |  |  | — |
Less: Change in fair value of Series A redeemable convertible preferred stock embedded derivative | (8,280) |  |  | — |
Less: Change in fair value of Series A warrants | — |  |  | (1,348) |
Less: Change in fair value of dilutive Series B warrants | 44,037 |  |  | (5,557) |
Add: Interest expense associated with Starboard Notes, net of tax | 4,658 |  |  | 1,889 |
Add: Undistributed earnings allocated to participating securities | 25,112 |  |  | 18,169 |
Reallocation of undistributed earnings to participating securities | (1,388) |  |  | (15,105) |
Net income attributable to common stockholders - Diluted | $ | 188,224 |  |  | $ | 84,894 |
Denominator: |  |  |
Weighted average shares used in computing net income per share attributable to common stockholders - Basic | 48,797,290 |  |  | 48,840,829 |
Potentially dilutive common shares: |  |  |
Series A Preferred Stock | 9,589,041 |  |  | — |
Restricted stock units | 758,682 |  |  | 637,044 |
Stock options | 37,167 |  |  | 2,952 |
Series A Warrants | — |  |  | 77,592 |
Series B Warrants | 39,288,690 |  |  | 7,876,711 |
Weighted average shares used in computing net income per share attributable to common stockholders - Diluted | 98,470,870 |  |  | 57,435,128 |
Basic net income per common share | $ | 2.43 |  |  | $ | 1.78 |
Diluted net income per common share | $ | 1.91 |  |  | $ | 1.48 |
Anti-dilutive potential common shares excluded from the computation of diluted net income per common share: |  |  |
Equity-based incentive awards | 393,750 |  |  | 206,916 |
Series A warrants | 5,000,000 |  |  | — |
Series B warrants | — |  |  | 68,493,151 |
Total | 5,393,750 |  |  | 68,700,067 |

X
- Definition Schedule of useful lives of property and equipment [Table Text Block] + References No definition available. + Details
Name: | actg_ScheduleOfUsefulLivesOfPropertyAndEquipmentTableTextBlock
Namespace Prefix: | actg_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_AccountingPoliciesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of disaggregation of revenue into categories depicting how nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factor. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130545-203045 + Details
Name: | us-gaap_DisaggregationOfRevenueTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of an entity's basic and diluted earnings per share calculations, including a reconciliation of numerators and denominators of the basic and diluted per-share computations for income from continuing operations. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=124432515&loc=d3e3550-109257 + Details
Name: | us-gaap_ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of each detailed component of other operating costs and expenses that are applicable to sales and revenues, but not included in the cost of sales in the income statement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.3) -URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227 + Details
Name: | us-gaap_ScheduleOfOtherOperatingCostAndExpenseByComponentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the changes in the guarantor's aggregate product warranty liability, including the beginning balance of the aggregate product warranty liability, the aggregate reductions in that liability for payments made (in cash or in kind) under the warranty, the aggregate changes in the liability for accruals related to product warranties issued during the reporting period, the aggregate changes in the liability for accruals related to preexisting warranties (including adjustments related to changes in estimates), and the ending balance of the aggregate product warranty liability. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 460 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=123368208&loc=d3e12565-110249 + Details
Name: | us-gaap_ScheduleOfProductWarrantyLiabilityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of unrealized gains and losses on investments. + References No definition available. + Details
Name: | us-gaap_UnrealizedGainLossOnInvestmentsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration