INCOME/LOSS PER SHARE

12 Months Ended

Dec. 31, 2023

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


	Years Ended December 31,
		2023		2022
		(In thousands, except share and per share data)
Numerator:
Net income (loss) attributable to Acacia Research Corporation		$	67,060	$	(125,065)
Dividend on Series A redeemable convertible preferred stock		(1,400)		(2,799)
Accretion of Series A redeemable convertible preferred stock		(3,230)		(5,171)
Return on settlement of Series A redeemable convertible preferred stock		(3,377)		—
Undistributed earnings allocated to participating securities		(3,913)		—
Net income (loss) attributable to common stockholders - Basic		55,140		(133,035)





Less: Change in fair value and gain on exercise of dilutive Series B warrants		(4,287)		—

Add: Interest expense associated with Starboard Notes, net of tax		1,518		—
Add: Undistributed earnings allocated to participating securities		3,913		—
Reallocation of undistributed earnings to participating securities		(3,076)		—
Net income (loss) attributable to common stockholders - Diluted		$	53,208	$	(133,035)

Denominator:
Weighted average shares used in computing net income (loss) per share attributable to common stockholders - Basic		75,296,025		42,460,504
Potentially dilutive common shares:


Employee stock options and restricted stock units		163,738		—

Series B Warrants		16,952,055		—
Weighted average shares used in computing net income (loss) per share attributable to common stockholders - Diluted		92,411,818		42,460,504

Basic net income (loss) per common share		$	0.73	$	(3.13)
Diluted net income (loss) per common share		$	0.58	$	(3.13)

Anti-dilutive potential common shares excluded from the computation of diluted net income/loss per share:
Equity-based incentive awards		2,098,747		2,558,720

Series B warrants		—		100,000,000
Total		2,098,747		102,558,720