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Acacia Research (ACTG)

Founded in 1993, Acacia Research Corporation (ACTG) invests in Intellectual Property Assets and partners with inventors and patent owners to realize the financial value in their patented inventions. Acacia bridges the gap between invention and application, facilitating efficiency and delivering monetary rewards to the patent owner.

Company profile

Ticker
ACTG
Exchange
CEO
Clifford Press
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
SEC CIK
Subsidiaries
Pixel Acquisition Holdco LLC • Printronix Holding Corp. • Printronix LLC • Merton Acquisition Holdco LLC ...
IRS number
954405754

ACTG stock data

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

11 Aug 22
12 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 263.95M 263.95M 263.95M 263.95M 263.95M 263.95M
Cash burn (monthly) 8.47M (no burn) 15.9M (no burn) 4.8M (no burn)
Cash used (since last report) 12.31M n/a 23.09M n/a 6.97M n/a
Cash remaining 251.64M n/a 240.86M n/a 256.98M n/a
Runway (months of cash) 29.7 n/a 15.2 n/a 53.6 n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
1 Aug 22 Lawrence Wesley Golby ACTG Common Stock Payment of exercise Dispose F No No 0 9,614 0 230,035
18 Jun 22 Booth Marc W. ACTG Common Stock Payment of exercise Dispose F No No 0 5,764 0 304,557
6 Jun 22 Rosenstein Richard Jay ACTG Common Stock Payment of exercise Dispose F No No 0 10,395 0 176,074
12 May 22 Booth Marc W. ACTG Common Stock Payment of exercise Dispose F No No 0 5,114 0 310,321
12 May 22 Rosenstein Richard Jay ACTG Common Stock Payment of exercise Dispose F No No 0 5,431 0 186,469
59.5% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 95 111 -14.4%
Opened positions 7 26 -73.1%
Closed positions 23 17 +35.3%
Increased positions 22 35 -37.1%
Reduced positions 46 30 +53.3%
13F shares Current Prev Q Change
Total value 122.71M 258.69M -52.6%
Total shares 27.25M 29.28M -7.0%
Total puts 665.2K 1.15M -42.4%
Total calls 46.6K 59.5K -21.7%
Total put/call ratio 14.3 19.4 -26.4%
Largest owners Shares Value Change
BLK Blackrock 3.28M $14.8M -2.7%
IVZ Invesco 2.64M $11.89M +1.8%
Vanguard 2.54M $11.44M +8.7%
Renaissance Technologies 1.98M $8.93M -2.7%
Formidable Asset Management 1.95M $8.79M +23.8%
ArrowMark Colorado 1.8M $8.12M 0.0%
Granahan Investment Management 1.65M $7.46M -29.7%
Pacific Ridge Capital Partners 1.27M $5.72M -0.1%
STT State Street 932.91K $4.21M -0.1%
Geode Capital Management 841.18K $3.79M +2.3%
Largest transactions Shares Bought/sold Change
Granahan Investment Management 1.65M -699.83K -29.7%
Formidable Asset Management 1.95M +374.62K +23.8%
Dimensional Fund Advisors 703.73K -345.42K -32.9%
Vanguard 2.54M +203.3K +8.7%
Wolf Hill Capital Management 366.26K -156.93K -30.0%
Prescott Group Capital Management, L.L.C. 0 -155.65K EXIT
Millennium Management 75.33K -153.99K -67.2%
Kerrisdale Advisers 0 -150K EXIT
SeaCrest Wealth Management 0 -145K EXIT
Wolverine Trading 131.86K +131.86K NEW

Financial report summary

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Risks
  • Our acquisitions of and investment in operating businesses and intellectual property assets are costly and could negatively affect our results of operations, dilute our stockholders’ ownership, or cause us to incur significant expense, and we may not realize the expected benefits of our operating businesses because of difficulties related to integration.
  • Our platform’s success is dependent on our ability to attract and retain employees and management teams of our operating businesses, the loss of any of whom could materially adversely affect our financial condition, business and results of operations.
  • The success of our platform and the integration of our operating businesses is dependent on our relationship with Starboard.
  • The due diligence process we undertake in connection with new acquisitions of operating businesses or intellectual property assets may not reveal all material facts.
  • Our acquisition strategy may include acquisitions of privately held companies, which provide more limited information, may be dependent on the talents and efforts of only a few key portfolio company personnel, and have greater vulnerability to economic downturns when compared to public company targets.
  • If, in the future, we cease to control and operate our operating businesses, we may be deemed to be an investment company under the Investment Company Act of 1940, as amended.
  • Both Acacia and our operating businesses outsource a number of services to third-party service providers, which are subject to disruptions, delays, and decrease in our control, which could adversely impact our results of operations.
  • Recent U.S. tax legislation may adversely affect our financial condition, results of operations and cash flows, including the ability to use net operating losses and certain other tax attributes.
  • Data security and integrity are critically important to our businesses, and cybersecurity incidents, including cyberattacks, breaches of security, unauthorized access to or disclosure of confidential information, business disruption, or the perception that confidential information is not secure, could result in a material loss of business, regulatory enforcement, substantial legal liability and/or significant harm to their reputation, which could have a material adverse effect on our business, financial condition and results of operations.
  • Public health threats such as COVID-19 could have a material adverse effect on our operations, the operations of our business partners, and the global economy as a whole.
  • Our intellectual property business is reliant on the strength of our patent portfolios and is subject to evolving legislation, regulations, and rules associated with patent law.
  • Patent litigation is inherently risky because courts may find our patents invalid, not infringed, or unenforceable, and the USPTO, or other relevant patent office, may either invalidate our patents or materially narrow the scope of their claims during the course of a reexamination, opposition or other such proceeding.
  • The enforcement of our intellectual property depends in part upon our ability to retain the best legal counsel in order to achieve favorable outcomes from litigation, and we may become conflicted out of such representation.
  • We may experience delays in successful prosecution, enforcement, and licensing of our patent portfolio.
  • Certain of our operating businesses rely, or may rely in the future, on their intellectual property and licenses to use others’ intellectual property for competitive advantage. If our operating businesses are unable to protect their intellectual property or obtain or retain licenses to use other’s intellectual property, or if they infringe upon or are alleged to have infringed upon others’ intellectual property, it could have a material adverse effect on our financial condition, business and results of operations.
  • Certain of our operating businesses’ inability to develop new products and enhance existing products to meet customer product requirements on a cost competitive basis may negatively impact our results of operations.
  • Certain of our operating businesses are dependent on a limited number of customers to derive a large portion of their revenue, and the loss of one of these customers may adversely affect the financial condition, business and results of operations of these businesses.
  • Certain of our operating businesses have limited suppliers for key product components and services they rely on and any interruption in supply could impair their ability to make and deliver their signature products, adversely affecting our business, financial condition, and results of operations.
  • Failure of our operating businesses to manage inventory levels or production capacity may negatively impact our results of operations.
  • Certain of our operating businesses’ inability to perform satisfactorily under service contracts for managed print services may negatively impact our financial performance and results of operations.
  • Decreased consumption of supplies could negatively impact the results of operations of certain of our operating businesses.
  • Due to the international nature of certain of our operating businesses, changes in a country’s or region’s political or economic conditions or other factors could negatively impact the results of operations of certain of our operating businesses.
  • Our quarterly performance may be volatile, which in turn may adversely affect the trading price of our common stock.
  • We do not currently intend to pay dividends on our common stock in the foreseeable future, and consequently, your ability to achieve a return on your investment will depend on appreciation in the price of our common stock.
Management Discussion
  • Total revenues decreased $0.7 million to $16.7 million for the three months ended June 30, 2022, as compared to $17.4 million for the three months ended June 30, 2021, due to the decrease in ARG's revenues, partially offset by the net revenues contributed from Printronix of $8.7 million. ARG executed three new license agreements during the second quarter of 2022, a decrease of three versus the comparable prior period, which contributed to ARG's revenues decreasing by $9.3 million. Refer to “Investments in Patent Portfolios” above for additional information regarding the impact of portfolio acquisition trends on current and future licensing and enforcement related revenues. Refer to "Revenues" below for further information.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Bad
New words: add, ARC, ARG, European, HSBC, lapse, move, slightly, submission, Trust
Removed: Semiconductor, Speech, wireline