Acacia Research Corporation

Good morning, ladies and gentlemen, and welcome to the Acacia Research First Quarter 2022 Earnings Call. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Rob Fink. Sir, the floor is yours.

Thank you, Operator. Hosting the call today are Clifford Press Chief Executive Officer, Rich Rosenstein Chief Financial Officer, and M.J. McNulty, Chief Operating Officer and Head of M&A. 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 operations and are based on the current estimates, 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 and quarterly reports on Form 10-Q that are both filed with the FDC. I would also like to remind everyone that a press release disclosing the company's financial results was issued this morning before the market opened. 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, and good morning, everyone. As we are all well aware, valuations across the equity markets started compressing during the first quarter, and there was a significant increase in volatility. That volatility has continued, and the disruptions are creating attractive opportunities for Acacia. With an expanded team of M&A professionals and ready access to a strong base of permanent capital, we are in a very good position to put our capital to work. Our team is now in place, headed by MJ McNulty and Wes Golby. We have also built and continue to expand our network of like-minded investors and strategic executives who engage with us on investment projects and can serve as partners in executing complex transactions. The hard work of the last year to build an infrastructure and a network while we were realizing gains and increasing our base of capital is now aligned at an opportune time as valuations become more attractive. Our transaction activity is increasing across the range of companies that fit our criteria. Illustrating this in more detail, We have access to nearly $1 billion in capital and significant experience with complex transactions, including situations that are mispriced in the public market or where we see an opportunity to unlock value. We have established a dynamic strategic partnership with Starboard Value LP with a clear focus on the type of opportunities we are seeking, and we are fortunate to be able to operate in a flexible fashion. We can acquire public or private companies or discrete divisions of companies and we're able to participate in or lead consortia of investors to complete larger transactions. Simultaneously, we are increasing our capital base. During the quarter, we realized an additional $59.5 million in gains from monetization of the life sciences portfolio as we continue to opportunistically divest these positions. To date, we have realized $394 million from this portfolio, having invested $294 million to acquire it. We continue to hold $163.7 million in assets at market value for the public companies and at cost for the private companies. In April, Mycovia received approval from the U.S. Food and Drug Administration for its novel compound for the treatment of recurring yeast infections. This approval has triggered a milestone payment to Acacia of $26 million due by the end of 2022. And more importantly, sets the stage for commercialization of this important drug, which will generate significant future royalties for Acacia. While our focus on acquisitions is on operating assets, We also consider our stock to be an attractive investment with Acacia shares trading below book value. During the first quarter, we completed the $15 million buyback program that we announced in December, purchasing 3.1 million shares at an average price of $4.80 per share. We subsequently announced an additional $40 million buyback authorization, and we have been executing on that authorization since. With that, I'd like to ask MJ McNulty, our chief operating officer and head of M&A, to provide a brief update on our process for managing our acquisition pipeline. MJ?