Acacia Research Corporation

Good afternoon, ladies and gentlemen, and welcome to the Acacia Research Third Quarter Financial Results. At this time, all participants have been placed on a listen-only mode, and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to Rob Fink. Sir, the floor is yours.

Thank you, Operator. Hosting the call today are Clifford Press, Chief Executive Officer, and Richard Rosenstein, Chief Financial Officer. Before beginning, I would like to remind you that the information provided during this call may contain forward-looking statements relating to current expectations, estimates, forecasts, and projections about future events that are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to the company's plans, objectives, and expectations for future operation and are based on the current estimates and projections, future results, or trends. Actual results may differ materially from those projected as a result of certain risks and uncertainties. For discussion of such risks and uncertainties, please see the risk factors described in Acacia's annual report on Form 10-K, the quarterly reports on Form 10-Q that are filed with the FCC. I'd like to remind everyone that a press release disclosing the company's financial results was issued this afternoon after the close of market. This release may be accessed on the company's website at AcaciaResearch.com under the news and events tab. With all that said, I'd now like to turn the call over to Clifford Press. Clifford, the call is yours.

Thank you, Rob. Good afternoon, everyone. This has been an active period for Acacia. During the quarter, we essentially completed our planned monetization of the Woodford Life Sciences portfolio with the IPO of Oxford Nanoport Technologies at the end of September, on the London Stock Exchange. Oxford Nanopore is the largest single position in that portfolio, and we were the fourth largest shareholder pre-IPO. As a result of the IPO, we recognized nearly 120 million in realized and unrealized gains for the quarter. Acacia sold approximately 10% of its position in this IPO, generating net proceeds of approximately $22 million, and our remaining position represent just over 35 million shares was valued at $267.8 million at September 30th, 2021. We have entered into a six-month lockup for our remaining shares, and because of this agreement, we are valuing our remaining position at a slight discount until the expiry of the lockup. We have now recovered $256 million of our original $282 million investment in this life science portfolio. As of September 30th, we held positions in four public companies, including Arex Biosciences, Immunocore, and Oxford Nanopore, valued at $348.7 million. We also continue to hold meaningful positions in three private life sciences companies, and we believe there is significant potential for these companies. Looking ahead, we are actively working to complete acquisitions of companies through a tightly coordinated research process, leveraging our team's experience in public and private markets with a seasoned board of directors. We focus on mature technology, life sciences, healthcare, and industrials in certain segments of the financial services area, including insurance. Our primary opportunity set remains with companies that are under $2 billion in equity market cap. As we have said in the past, we view this segment as the least efficient area in the public markets and one that favors our primary research approach and permanent capital structure. Our ongoing partnership with Starboard Value LP continues to result in a growing pipeline of potentially attractive acquisition opportunities. Our expanded team is performing due diligence with involvement of our board of directors as we evaluate these opportunities. And we have recently identified two public companies where we have built meaningful positions and have made offers to both. With respect to our IP business, investments made over the past year have resulted in a diversified portfolio, producing revenue through a range of licensing agreements. This was a slower quarter for us with $1.6 million in revenue, down from $19.5 million in the third quarter of last year. However, subsequent to the end of the quarter, we were pleased to enter into a very important license agreement with Samsung Electronics Company Limited relating to our Wi-Fi 6 standards essential patents. Terms of this agreement are confidential. The completion of the first license related to this Wi-Fi 6 portfolio in such a short period since we acquired it is indicative of the very significant value of the investment. Beyond that, our team is actively advancing a number of opportunities to monetize our existing IP assets and acquire additional portfolios. Just after the quarter ended, we acquired Printronics, a company that provides printing solutions on unique formats and in certain industrial settings where laser and other printers are not feasible. Printronics' solutions have been integrated into long-standing workflows where they provide specialized capabilities. This has resulted in strong recurring revenue for consumables and ongoing maintenance. Printronics generates substantial operating and free cash flow. We couldn't be more pleased with this acquisition. We've been impressed by the management team at Printronics, who bring with them many years of experience in this highly specialized field, and we are excited to welcome the customers and employees of Printronics. to the Acacia family. Acacia today has substantial capital resources, with $605 million in cash and public equity investments at the end of September, another $35 million in restricted cash relating to our preferred stock. If Starboard Value were to exercise the remainder of their warrants at $5.25 per share cash exercise price, our capital available would rise to more than $1 billion. This does not include the potential value of our private holdings, which we carry at cost. With that, I'd like to turn the call over to Rich Rosenstein, our CFO, to discuss the results. Rich?