Reconciliation of Operating Profit (Loss) from Segments to Consolidated |
The Company's segment information is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | 2022 | | | | Intellectual Property Operations | | Industrial Operations | | Total | | | | | | | | (In thousands) | Revenues: | | | | | | | | | | | | License fees | $ | 8,062 | | | $ | — | | | $ | 8,062 | | | | | | | | Printers and parts | — | | | 3,662 | | | 3,662 | | | | | | | | Consumable products | — | | | 4,214 | | | 4,214 | | | | | | | | Services | — | | | 779 | | | 779 | | | | | | | | Total revenues | 8,062 | | | 8,655 | | | 16,717 | | | | | | | | | | | | | | | | | | | | Cost of revenues: | | | | | | | | | | | | Inventor royalties | 190 | | | — | | | 190 | | | | | | | | Contingent legal fees | 755 | | | — | | | 755 | | | | | | | | Litigation and licensing expenses | 1,089 | | | — | | | 1,089 | | | | | | | | Amortization of patents | 2,600 | | | — | | | 2,600 | | | | | | | | | | | | | | | | | | | | Cost of sales | — | | | 4,592 | | | 4,592 | | | | | | | | Total cost of revenues | 4,634 | | | 4,592 | | | 9,226 | | | | | | | | Segment gross profit | 3,428 | | | 4,063 | | | 7,491 | | | | | | | | | | | | | | | | | | | | Other operating expenses: | | | | | | | | | | | | Engineering and development expenses | — | | | 145 | | | 145 | | | | | | | | Sales and marketing expenses | — | | | 2,294 | | | 2,294 | | | | | | | | Amortization of intangible assets | — | | | 433 | | | 433 | | | | | | | | General and administrative expenses | 1,807 | | | 2,253 | | | 4,060 | | | | | | | | Total other operating expenses | 1,807 | | | 5,125 | | | 6,932 | | | | | | | | Segment operating income (loss) | $ | 1,621 | | | $ | (1,062) | | | 559 | | | | | | | | | | | | | | | | | | | | Parent general and administrative expenses | | | | | 6,229 | | | | | | | | Operating loss | | | | | (5,670) | | | | | | | | Total other expense | | | | | (42,020) | | | | | | | | Loss before income taxes | | | | | $ | (47,690) | | | | | | | |
For comparability purposes, Acacia's three months ended June 30, 2021 general and administrative expenses, as reported in the consolidated statement of operations, were $6.5 million and included parent general and administrative expenses of $5.1 million, which derives a comparative Intellectual Property Operations general and administrative expense amount of approximately $1.4 million. | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, | | 2022 | | | | Intellectual Property Operations | | Industrial Operations | | Total | | | | | | | | (In thousands) | Revenues: | | | | | | | | | | | | License fees | $ | 10,677 | | | $ | — | | | $ | 10,677 | | | | | | | | Printers and parts | — | | | 7,916 | | | 7,916 | | | | | | | | Consumable products | — | | | 9,598 | | | 9,598 | | | | | | | | Services | — | | | 2,033 | | | 2,033 | | | | | | | | Total revenues | 10,677 | | | 19,547 | | | 30,224 | | | | | | | | | | | | | | | | | | | | Cost of revenues: | | | | | | | | | | | | Inventor royalties | 360 | | | — | | | 360 | | | | | | | | Contingent legal fees | 1,304 | | | — | | | 1,304 | | | | | | | | Litigation and licensing expenses | 2,333 | | | — | | | 2,333 | | | | | | | | Amortization of patents | 5,201 | | | — | | | 5,201 | | | | | | | | | | | | | | | | | | | | Cost of sales | — | | | 8,784 | | | 8,784 | | | | | | | | Total cost of revenues | 9,198 | | | 8,784 | | | 17,982 | | | | | | | | Segment gross profit | 1,479 | | | 10,763 | | | 12,242 | | | | | | | | | | | | | | | | | | | | Other operating expenses: | | | | | | | | | | | | Engineering and development expenses | — | | | 335 | | | 335 | | | | | | | | Sales and marketing expenses | — | | | 4,310 | | | 4,310 | | | | | | | | Amortization of intangible assets | — | | | 866 | | | 866 | | | | | | | | General and administrative expenses | 3,523 | | | 4,675 | | | 8,198 | | | | | | | | Total other operating expenses | 3,523 | | | 10,186 | | | 13,709 | | | | | | | | Segment operating (loss) income | $ | (2,044) | | | $ | 577 | | | (1,467) | | | | | | | | | | | | | | | | | | | | Parent general and administrative expenses | | | | | 12,711 | | | | | | | | Operating loss | | | | | (14,178) | | | | | | | | Total other expense | | | | | (121,656) | | | | | | | | Loss before income taxes | | | | | $ | (135,834) | | | | | | | |
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Schedule of Segment Reporting Information, by Segment |
| | | | | | | | | | | | | | | June 30, 2022 | | December 31, 2021 | | (In thousands) | Equity securities investments: | | | | Equity securities at fair value | $ | 126,345 | | | $ | 361,778 | | Equity securities without readily determinable fair value | 5,816 | | | 5,816 | | Investment securities - equity method investments | 73,020 | | | 30,934 | | | | | | Total parent equity securities investments | 205,181 | | | 398,528 | | | | | | Other parent assets | 135,355 | | | 172,726 | | | | | | Segment total assets: | | | | Intellectual property operations | 169,561 | | | 175,286 | | Industrial operations | 51,602 | | | 52,316 | | Total assets | $ | 561,699 | | | $ | 798,856 | |
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Revenue from External Customers by Geographic Areas |
| | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | 2022 | | | | Intellectual Property Operations | | Industrial Operations | | Total | | | | | | | | (In thousands) | Revenues by geographic area: | | | | | | | | | | | | United States | $ | 7,964 | | | $ | 4,032 | | | $ | 11,996 | | | | | | | | Canada and Latin America | 4 | | | 180 | | | 184 | | | | | | | | Total Americas | 7,968 | | | 4,212 | | | 12,180 | | | | | | | | | | | | | | | | | | | | Europe, Middle East and Africa | 89 | | | 2,298 | | | 2,387 | | | | | | | | | | | | | | | | | | | | China | — | | | 1,091 | | | 1,091 | | | | | | | | India | — | | | 232 | | | 232 | | | | | | | | Asia-Pacific, excluding China and India | 5 | | | 822 | | | 827 | | | | | | | | Total Asia-Pacific | 5 | | | 2,145 | | | 2,150 | | | | | | | | Total revenues | $ | 8,062 | | | $ | 8,655 | | | $ | 16,717 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, | | 2022 | | | | Intellectual Property Operations | | Industrial Operations | | Total | | | | | | | | (In thousands) | Revenues by geographic area: | | | | | | | | | | | | United States | $ | 10,061 | | | $ | 7,881 | | | $ | 17,942 | | | | | | | | Canada and Latin America | 10 | | | 552 | | | 562 | | | | | | | | Total Americas | 10,071 | | | 8,433 | | | 18,504 | | | | | | | | | | | | | | | | | | | | Europe, Middle East and Africa | 589 | | | 4,806 | | | 5,395 | | | | | | | | | | | | | | | | | | | | China | — | | | 2,224 | | | 2,224 | | | | | | | | India | — | | | 1,981 | | | 1,981 | | | | | | | | Asia-Pacific, excluding China and India | 17 | | | 2,103 | | | 2,120 | | | | | | | | Total Asia-Pacific | 17 | | | 6,308 | | | 6,325 | | | | | | | | Total revenues | $ | 10,677 | | | $ | 19,547 | | | $ | 30,224 | | | | | | | |
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