INCOME/LOSS PER SHARE

3 Months Ended

Mar. 31, 2023

The following table presents the calculation of basic and diluted income/loss per share of common stock:


	Three Months Ended March 31,
		2023		2022
		(In thousands, except share and per share data)
Numerator:
Net income (loss) attributable to Acacia Research Corporation		$	9,447	$	(73,266)
Dividend on Series A redeemable convertible preferred stock		(700)		(700)
Accretion of Series A redeemable convertible preferred stock		(1,554)		(1,151)
Undistributed earnings allocated to participating securities		(1,235)		—
Net income (loss) attributable to common stockholders - Basic		5,958		(75,117)

Add: Dividend on Series A redeemable convertible preferred stock		700		—
Add: Accretion of Series A redeemable convertible preferred stock		1,554		—
Less: Change in fair value of Series A redeemable convertible preferred stock embedded derivative		(5,023)		—
Less: Change in fair value of Series A warrants		—		—
Less: Change in fair value of dilutive Series B warrants		(11,628)		—
Add: Interest expense associated with Starboard Notes, net of tax		708		—
Add: Undistributed earnings allocated to participating securities		1,235		—
Reallocation of undistributed earnings to participating securities		—		—
Net loss attributable to common stockholders - Diluted		$	(6,496)	$	(75,117)

Denominator:
Weighted average shares used in computing net (loss) income per share attributable to common stockholders - Basic		47,971,931		46,544,313
Potentially dilutive common shares:
Series A Preferred Stock		9,589,041		—
Restricted stock units		—		—
Stock options		—		—
Series A Warrants		—		—
Series B Warrants		31,506,849		—
Weighted average shares used in computing net (loss) income per share attributable to common stockholders - Diluted		89,067,821		46,544,313

Basic net income (loss) per common share		$	0.12	$	(1.61)
Diluted net loss per common share		$	(0.07)	$	(1.61)

Anti-dilutive potential common shares excluded from the computation of diluted net income/loss per share:
Equity-based incentive awards		2,368,870		4,029,318
Series A warrants		—		5,000,000
Series B warrants		—		100,000,000
Total		2,368,870		109,029,318