Acacia Research Corp Files 2023 Annual Report on Form 10-K

TL;DR

<b>Acacia Research Corp has filed its annual 10-K report for the fiscal year ending December 31, 2023, detailing its financial performance and business operations.</b>

AI Summary

ACACIA RESEARCH CORP (ACTG) filed a Annual Report (10-K) with the SEC on March 15, 2024. Acacia Research Corp filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located at 767 3rd Avenue, 6th Floor, New York, NY 10017. Acacia Research Corp is classified under SIC code 6794 as Patent Owners & Lessors. The report includes financial data for the fiscal years 2023, 2022, and 2021.

Why It Matters

For investors and stakeholders tracking ACACIA RESEARCH CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Acacia Research Corp's financial health, operational segments, and strategic direction for the past fiscal year, crucial for investors assessing the company's value and future prospects. The detailed financial statements and disclosures within the 10-K allow stakeholders to understand the company's revenue streams, expenses, assets, liabilities, and equity, enabling informed investment decisions.

Risk Assessment

Risk Level: low — ACACIA RESEARCH CORP shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate red flags or significant negative financial disclosures, indicating a routine update.

Analyst Insight

Review the detailed financial statements and segment performance within the 10-K to identify trends and potential investment opportunities or risks.

Revenue Breakdown

Key Numbers

• 2023-12-31 — CONFORMED PERIOD OF REPORT (20231231)
• 2024-03-15 — FILED AS OF DATE (20240315)
• 2023-01-01 — Fiscal Year Start Date (2023-01-01)
• 2023-12-31 — Fiscal Year End Date (2023-12-31)

Key Players & Entities

• ACACIA RESEARCH CORP (company) — COMPANY CONFORMED NAME
• 0000934549 (company) — CENTRAL INDEX KEY
• 6794 (company) — STANDARD INDUSTRIAL CLASSIFICATION
• DE (company) — STATE OF INCORPORATION
• 767 3RD AVENUE, 6TH FLOOR (company) — BUSINESS ADDRESS STREET 1
• NEW YORK (company) — BUSINESS ADDRESS CITY
• 10017 (company) — BUSINESS ADDRESS ZIP
• 332-236-8500 (company) — BUSINESS PHONE

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-15: Filing Date — Date the 10-K was officially filed with the SEC.

Key Financial Figures

• $2 billion — companies with market values in the sub-$2 billion range and particularly on businesses va
• $1 billion — nd particularly on businesses valued at $1 billion or less. We are, however, opportunistic
• $0.001 — eferred Stock of the Company, par value $0.001 per share (the "Series A Redeemable Con
• $60.0 million — ion Transactions"), the cancellation of $60.0 million aggregate principal amount of the Compa
• $55.0 million — gregate gross proceeds of approximately $55.0 million. Following completion of the transactio
• $1.8 b — ross licensing revenue of approximately $1.8 billion, and have returned $865.2 million
• $865.2 million — imately $1.8 billion, and have returned $865.2 million to our patent

Filing Documents

• actg-20231231.htm (10-K) — 2485KB
• thirdamendedandrestatedcer.htm (EX-3.1) — 71KB
• employmentagreementchiefad.htm (EX-10.17) — 83KB
• servicesagreement-starboar.htm (EX-10.21) — 98KB
• actg-20231231xex211.htm (EX-21.1) — 4KB
• actg-20231231xex231.htm (EX-23.1) — 2KB
• actg-20231231xex311.htm (EX-31.1) — 8KB
• actg-20231231xex312.htm (EX-31.2) — 8KB
• actg-20231231xex321.htm (EX-32.1) — 5KB
• actg-20231231xex322.htm (EX-32.2) — 5KB
• clawbackpolicy11-2x23xex971.htm (EX-97.1) — 46KB
• actg-20231231_g1.jpg (GRAPHIC) — 8KB
• image_01.jpg (GRAPHIC) — 16KB
• 0000934549-24-000023.txt (&nbsp;) — 15246KB
• actg-20231231.xsd (EX-101.SCH) — 89KB
• actg-20231231_cal.xml (EX-101.CAL) — 127KB
• actg-20231231_def.xml (EX-101.DEF) — 702KB
• actg-20231231_lab.xml (EX-101.LAB) — 1136KB
• actg-20231231_pre.xml (EX-101.PRE) — 953KB
• actg-20231231_htm.xml (XML) — 2327KB

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 9 Item 1B. Unresolved Staff Comments 30

Cybersecurity

Item 1C. Cybersecurity 30 Item 2.

Properties

Properties 31 Item 3.

Legal Proceedings

Legal Proceedings 32 Item 4. Mine Safety Disclosures 32 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 33 Item 6. [Reserved] 33 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 34 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 53 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 53 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 53 Item 9A.

Controls and Procedures

Controls and Procedures 53 Item 9B. Other Information 54 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 54 PART III Item 10. Directors, Executive Officers and Corporate Governance 55 Item 11.

Executive Compensation

Executive Compensation 55 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 55 Item 13. Certain Relationships and Related Transactions, and Director Independence 55 Item 14. Principal Accountant Fees and Services 55 PART IV Item 15. Exhibits and Financial Statement Schedules 56 Item 16. Form 10-K Summary 58 i Table of Contents PART I CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of the federal securities laws. To the extent that statements in this Annual Report on Form 10-K are not recitations of historical fact, such statements constitute forward-looking statements, which, by definition, involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Throughout this Annual Report on Form 10-K, we have attempted to identify forward-looking statements by using words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecasts," "goal," "intend," "may," "plan," "potential," "predict," "project," "seek," "should," "will," or other forms of these words or similar words or expressions or the negative thereof, although not all forward-looking statements contain these terms. Forward-looking statements include statements regarding, among other things, our business, operating, development, investment and finance strategies, our relationship with Starboard Value LP, acquisition and development activities, financial results of our acquired businesses, intellectual property ("IP"), licensing and enforcement activities, other related business activities, capital expenditures, earnings, litigation, regulatory matters, markets for our services, liquidity and capital resources and accounti

BUSINESS

ITEM 1. BUSINESS General Acacia Research Corporation (the "Company," "Acacia," "we," "us," or "our") is focused on acquiring and managing companies across industries including but not limited to the industrial, energy, technology, and healthcare verticals. We focus on identifying, pursuing and acquiring businesses where we are uniquely positioned to deploy our strategy, people and processes to generate and compound shareholder value. We have a wide range of transactional and operational capabilities to realize the intrinsic value in the businesses that we acquire. Our ideal transactions include the acquisition of public or private companies, the acquisition of divisions of other companies, or structured transactions that can result in the recapitalization or restructuring of the ownership of a business to enhance value. We are particularly attracted to situations where we believe value is not fully recognized, the value of certain operations are masked by a diversified business mix, or where private ownership has not invested the capital and/or resources necessary to support long-term value. Through our public market activities, we aim to initiate shareholding positions in public companies as a path to complete whole company acquisitions or strategic transactions that unlock value. We believe this business model is differentiated from private equity funds, which do not typically own public securities prior to acquiring companies, hedge funds, which do not typically acquire entire businesses, and other acquisition vehicles such Special Purpose Acquisition Companies, which are narrowly focused on completing one singular, defining acquisition. Our focus is companies with market values in the sub-$2 billion range and particularly on businesses valued at $1 billion or less. We are, however, opportunistic, and may pursue acquisitions that are larger under the right circumstances. We believe the Company has the potential to develop advantaged opportunities due to its:

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View this 10-K filing on SEC EDGAR