XML 31 R21.htm IDEA: XBRL DOCUMENT
v3.23.1

SEGMENT REPORTING | 3 Months Ended
--- | ---
Mar. 31, 2023
Segment Reporting [Abstract] |
SEGMENT REPORTING | SEGMENT REPORTING As of March 31, 2023, the Company operates and reports its results in two reportable segments: Intellectual Property Operations and Industrial Operations. The Company reports segment information based on the management approach and organizes its businesses based on products and services. The management approach designates the internal reporting used by the chief operating decision maker for decision making and performance assessment as the basis for determining the Company’s reportable segments. The performance measure of the Company’s reportable segments is primarily income or (loss) from operations. Income or (loss) from operations for each segment includes all revenues, cost of revenues, gross profit and other operating expenses directly attributable to the segment. Other than the Company's equity securities investments, specific asset information is not included in managements review at this time. The Company’s Intellectual Property Operations segment invests in IP and related absolute return assets, and engages in the licensing and enforcement of patented technologies. Through our Patent Licensing, Enforcement and Technologies Business we are a principal in the licensing and enforcement of patent portfolios, with our operating subsidiaries obtaining the rights in the patent portfolio or purchasing the patent portfolio outright. While we, from time to time, partner with inventors and patent owners, from small entities to large corporations, we assume all responsibility for advancing operational expenses while pursuing a patent licensing and enforcement program. When applicable, we share net licensing revenue with our patent partners as that program matures, on a prearranged and negotiated basis. We may also provide upfront capital to patent owners as an advance against future licensing revenue. Currently, on a consolidated basis, our operating subsidiaries own or control the rights to multiple patent portfolios, which include U.S. patents and certain foreign counterparts, covering technologies used in a variety of industries. We generate revenues and related cash flows from the granting of IP rights for the use of patented technologies that our operating subsidiaries control or own. The Company’s Industrial Operations segment generates operating income by designing and manufacturing printers and consumable products for various industrial printing applications. Printers consist of hardware and embedded software and may be sold with maintenance service agreements. Consumable products include inked ribbons which are used in Printronix’s printers. Printronix’s products are primarily sold through channel partners, such as dealers and distributors, to end-users. The Company's segment information is as follows:
| Three Months Ended March 31,
| 2023 |  | 2022
| Intellectual Property Operations |  | Industrial Operations |  | Total |  | Intellectual Property Operations |  | Industrial Operations |  | Total
| (In thousands)
Revenues: |  |  |  |  |  |  |  |  |  |  |
License fees | $ | 4,176 |  |  | $ | — |  |  | $ | 4,176 |  |  | $ | 2,615 |  |  | $ | — |  |  | $ | 2,615 |
Printers and parts | — |  |  | 4,464 |  |  | 4,464 |  |  | — |  |  | 4,254 |  |  | 4,254 |
Consumable products | — |  |  | 5,170 |  |  | 5,170 |  |  | — |  |  | 5,384 |  |  | 5,384 |
Services | — |  |  | 993 |  |  | 993 |  |  | — |  |  | 1,254 |  |  | 1,254 |
Total revenues | 4,176 |  |  | 10,627 |  |  | 14,803 |  |  | 2,615 |  |  | 10,892 |  |  | 13,507 |
Cost of revenues: |  |  |  |  |  |  |  |  |  |  |
Inventor royalties | 221 |  |  | — |  |  | 221 |  |  | 170 |  |  | — |  |  | 170 |
Contingent legal fees | 532 |  |  | — |  |  | 532 |  |  | 549 |  |  | — |  |  | 549 |
Litigation and licensing expenses | 1,384 |  |  | — |  |  | 1,384 |  |  | 1,244 |  |  | — |  |  | 1,244 |
Amortization of patents | 2,601 |  |  | — |  |  | 2,601 |  |  | 2,601 |  |  | — |  |  | 2,601 |
Cost of sales | — |  |  | 5,220 |  |  | 5,220 |  |  | — |  |  | 4,192 |  |  | 4,192 |
Total cost of revenues | 4,738 |  |  | 5,220 |  |  | 9,958 |  |  | 4,564 |  |  | 4,192 |  |  | 8,756 |
Segment gross profit | (562) |  |  | 5,407 |  |  | 4,845 |  |  | (1,949) |  |  | 6,700 |  |  | 4,751 |
Other operating expenses: |  |  |  |  |  |  |  |  |  |  |
Engineering and development expenses | — |  |  | 216 |  |  | 216 |  |  | — |  |  | 190 |  |  | 190 |
Sales and marketing expenses | — |  |  | 1,913 |  |  | 1,913 |  |  | — |  |  | 2,016 |  |  | 2,016 |
Amortization of intangible assets | — |  |  | 433 |  |  | 433 |  |  | — |  |  | 433 |  |  | 433 |
General and administrative expenses | 1,897 |  |  | 2,285 |  |  | 4,182 |  |  | 1,716 |  |  | 2,422 |  |  | 4,138 |
Total other operating expenses | 1,897 |  |  | 4,847 |  |  | 6,744 |  |  | 1,716 |  |  | 5,061 |  |  | 6,777 |
Segment operating (loss) income | $ | (2,459) |  |  | $ | 560 |  |  | (1,899) |  |  | $ | (3,665) |  |  | $ | 1,639 |  |  | (2,026) |
Parent general and administrative expenses |  |  |  |  | 7,425 |  |  |  |  |  |  | 6,482 |
Operating loss |  |  |  |  | (9,324) |  |  |  |  |  |  | (8,508) |
Total other (expense) income |  |  |  |  | 21,254 |  |  |  |  |  |  | (79,636) |
(Loss) income before income taxes |  |  |  |  | $ | 11,930 |  |  |  |  |  |  | $ | (88,144) |
| March 31, 2023 |  | December 31, 2022
| (In thousands)
Equity securities investments: |  |  |
Equity securities | $ | 60,724 |  |  | $ | 61,608 |
Equity securities without readily determinable fair value | 5,816 |  |  | 5,816 |
Equity method investments | 30,934 |  |  | 30,934 |
Total parent equity securities investments | 97,474 |  |  | 98,358 |
Other parent assets | 235,144 |  |  | 156,394 |
Segment total assets: |  |  |
Intellectual property operations | 171,639 |  |  | 176,119 |
Industrial operations | 52,347 |  |  | 52,057 |
Total assets | $ | 556,604 |  |  | $ | 482,928 |
The Company's revenues and long-lived tangible assets by geographic area are presented below. Intellectual Property Operations revenues are attributed to licensees domiciled in foreign jurisdictions. Printronix's net sales to external customers are attributed to geographic areas based upon the final destination of products shipped. The Company, primarily through its Printronix subsidiary, has identified three global regions for marketing its products and services: Americas, Europe, Middle East and Africa, and Asia-Pacific. Assets are summarized based on the location of held assets.
| Three Months Ended March 31,
| 2023 |  | 2022
| Intellectual Property Operations |  | Industrial Operations |  | Total |  | Intellectual Property Operations |  | Industrial Operations |  | Total
| (In thousands)
Revenues by geographic area: |  |  |  |  |  |  |  |  |  |  |
United States | $ | 673 |  |  | $ | 4,234 |  |  | $ | 4,907 |  |  | $ | 2,097 |  |  | $ | 3,849 |  |  | $ | 5,946 |
Canada and Latin America | 501 |  |  | 219 |  |  | 720 |  |  | 6 |  |  | 372 |  |  | 378 |
Total Americas | 1,174 |  |  | 4,453 |  |  | 5,627 |  |  | 2,103 |  |  | 4,221 |  |  | 6,324 |
Europe, Middle East and Africa | — |  |  | 2,965 |  |  | 2,965 |  |  | 500 |  |  | 2,508 |  |  | 3,008 |
China | 3,000 |  |  | 843 |  |  | 3,843 |  |  | — |  |  | 1,133 |  |  | 1,133 |
India | — |  |  | 828 |  |  | 828 |  |  | — |  |  | 1,749 |  |  | 1,749 |
Asia-Pacific, excluding China and India | 2 |  |  | 1,538 |  |  | 1,540 |  |  | 12 |  |  | 1,281 |  |  | 1,293 |
Total Asia-Pacific | 3,002 |  |  | 3,209 |  |  | 6,211 |  |  | 12 |  |  | 4,163 |  |  | 4,175 |
Total revenues | $ | 4,176 |  |  | $ | 10,627 |  |  | $ | 14,803 |  |  | $ | 2,615 |  |  | $ | 10,892 |  |  | $ | 13,507 |
| March 31, 2023
| Intellectual Property Operations |  | Industrial Operations |  | Total
| (In thousands)
Long-lived tangible assets by geographic area: |  |  |  |  |
United States | $ | 290 |  |  | $ | 255 |  |  | $ | 545 |
Malaysia | — |  |  | 2,543 |  |  | 2,543 |
Other foreign countries | — |  |  | 187 |  |  | 187 |
Total | $ | 290 |  |  | $ | 2,985 |  |  | $ | 3,275 |
| December 31, 2022
| Intellectual Property Operations |  | Industrial Operations |  | Total
| (In thousands)
Long-lived tangible assets by geographic area: |  |  |  |  |
United States | $ | 324 |  |  | $ | 302 |  |  | $ | 626 |
Malaysia | — |  |  | 2,703 |  |  | 2,703 |
Other foreign countries | — |  |  | 208 |  |  | 208 |
Total | $ | 324 |  |  | $ | 3,213 |  |  | $ | 3,537 |

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

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration