2015 Q4 Form 10-Q Financial Statement

#000093454915000060 Filed on November 09, 2015

View on sec.gov

Income Statement

Concept 2015 Q4 2015 Q3 2014 Q4
Revenue $37.50M $12.99M $31.03M
YoY Change 20.84% -65.06% 105.97%
Cost Of Revenue $7.760M $120.0K $4.360M
YoY Change 77.98% -97.43% 32.93%
Gross Profit $29.74M $12.88M $26.67M
YoY Change 11.51% -60.41% 126.21%
Gross Profit Margin 79.31% 99.12% 85.95%
Selling, General & Admin $12.47M $11.41M $19.34M
YoY Change -35.52% -40.88% 12.84%
% of Gross Profit 41.93% 88.59% 72.52%
Research & Development $860.0K $800.0K $640.0K
YoY Change 34.38% -33.88% -16.88%
% of Gross Profit 2.89% 6.21% 2.4%
Depreciation & Amortization $13.20M $13.70M $10.20M
YoY Change 29.41% 0.74% -16.39%
% of Gross Profit 44.38% 106.37% 38.25%
Operating Expenses $26.69M $29.36M $33.70M
YoY Change -20.8% -17.46% -2.74%
Operating Profit -$113.2M -$26.84M -$15.24M
YoY Change 642.62% 112.43% -52.02%
Interest Expense -$180.0K
YoY Change 200.0%
% of Operating Profit
Other Income/Expense, Net $0.00 -$180.0K -$451.0K
YoY Change -100.0% 215.79% -380.12%
Pretax Income -$113.2M -$27.02M -$15.69M
YoY Change 621.28% 112.89% -50.34%
Income Tax $4.174M $337.0K $450.0K
% Of Pretax Income
Net Earnings -$115.9M -$27.31M -$16.24M
YoY Change 613.56% 119.98% -51.27%
Net Earnings / Revenue -309.12% -210.17% -52.35%
Basic Earnings Per Share -$0.34
Diluted Earnings Per Share -$2.330M -$550.3K -$0.34
COMMON SHARES
Basic Shares Outstanding 50.74M shares 49.63M shares 48.94M shares
Diluted Shares Outstanding 49.75M shares 49.63M shares 48.94M shares

Balance Sheet

Concept 2015 Q4 2015 Q3 2014 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $135.2M $157.8M $193.0M
YoY Change -29.95% -30.39% -24.81%
Cash & Equivalents $135.2M $157.8M $134.5M
Short-Term Investments $0.00 $0.00 $58.60M
Other Short-Term Assets $15.10M $16.80M $5.600M
YoY Change 169.64% 88.76% -47.17%
Inventory
Prepaid Expenses
Receivables $33.50M $12.76M $20.17M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $183.9M $187.3M $218.7M
YoY Change -15.93% -24.57% -20.1%
LONG-TERM ASSETS
Property, Plant & Equipment $272.0K $319.0K $500.0K
YoY Change -45.6% -49.68% -34.73%
Goodwill $30.10M $30.15M $30.10M
YoY Change 0.0% 0.0% -0.16%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $1.110M $353.0K $355.0K
YoY Change 212.68% 0.57% 11.64%
Total Long-Term Assets $164.0M $280.3M $317.6M
YoY Change -48.36% -6.74% -0.63%
TOTAL ASSETS
Total Short-Term Assets $183.9M $187.3M $218.7M
Total Long-Term Assets $164.0M $280.3M $317.6M
Total Assets $347.9M $467.6M $536.3M
YoY Change -35.14% -14.81% -9.61%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $17.30M $17.50M $121.0K
YoY Change 14197.52% 5.42% -5.47%
Accrued Expenses $1.000M $0.00 $31.40M
YoY Change -96.82% -100.0% 103.9%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $33.23M $26.72M $45.91M
YoY Change -27.63% -30.31% 76.57%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $311.0K $291.0K $228.0K
YoY Change 36.4% -6.13% -28.53%
Total Long-Term Liabilities $311.0K $291.0K $228.0K
YoY Change 36.4% -6.13% -28.53%
TOTAL LIABILITIES
Total Short-Term Liabilities $33.23M $26.72M $45.91M
Total Long-Term Liabilities $311.0K $291.0K $228.0K
Total Liabilities $33.75M $28.17M $47.30M
YoY Change -28.66% -32.91% 51.63%
SHAREHOLDERS EQUITY
Retained Earnings -$288.1M -$172.2M -$128.1M
YoY Change 124.94% 53.97% 106.39%
Common Stock $51.00K $51.00K $50.00K
YoY Change 2.0% 2.0% 2.04%
Preferred Stock
YoY Change
Treasury Stock (at cost) $34.64M $34.64M $34.64M
YoY Change 0.0% 0.0% 0.0%
Treasury Stock Shares 1.729M shares 1.729M shares 1.729M shares
Shareholders Equity $310.2M $430.0M $483.6M
YoY Change
Total Liabilities & Shareholders Equity $347.9M $467.6M $536.3M
YoY Change -35.14% -14.81% -9.61%

Cashflow Statement

Concept 2015 Q4 2015 Q3 2014 Q4
OPERATING ACTIVITIES
Net Income -$115.9M -$27.31M -$16.24M
YoY Change 613.56% 119.98% -51.27%
Depreciation, Depletion And Amortization $13.20M $13.70M $10.20M
YoY Change 29.41% 0.74% -16.39%
Cash From Operating Activities -$12.10M $8.600M -$9.700M
YoY Change 24.74% -40.69% -846.15%
INVESTING ACTIVITIES
Capital Expenditures $0.00 -$800.0K -$18.30M
YoY Change -100.0% -66.67% 24.49%
Acquisitions
YoY Change
Other Investing Activities $0.00 $37.30M $14.50M
YoY Change -100.0% 1521.74% -60.6%
Cash From Investing Activities $0.00 $36.40M -$3.800M
YoY Change -100.0% -36500.0% -117.27%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -10.40M -6.400M -6.300M
YoY Change 65.08% 3.23% -58.28%
NET CHANGE
Cash From Operating Activities -12.10M 8.600M -9.700M
Cash From Investing Activities 0.000 36.40M -3.800M
Cash From Financing Activities -10.40M -6.400M -6.300M
Net Change In Cash -22.50M 38.60M -19.80M
YoY Change 13.64% 370.73% -341.46%
FREE CASH FLOW
Cash From Operating Activities -$12.10M $8.600M -$9.700M
Capital Expenditures $0.00 -$800.0K -$18.30M
Free Cash Flow -$12.10M $9.400M $8.600M
YoY Change -240.7% -44.38% -46.25%

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us-gaap Net Income Loss
NetIncomeLoss
-44126000 USD
CY2014Q3 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
-420000 USD
us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
-736000 USD
CY2015Q3 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
-43000 USD
us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
3998000 USD
CY2014Q3 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-12575000 USD
us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-50356000 USD
CY2015Q3 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-27450000 USD
us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-44691000 USD
CY2014Q3 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-57000 USD
us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-144000 USD
CY2015Q3 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-180000 USD
us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-56000 USD
CY2014Q3 us-gaap Operating Costs And Expenses
OperatingCostsAndExpenses
49825000 USD
us-gaap Operating Costs And Expenses
OperatingCostsAndExpenses
146761000 USD
CY2015Q3 us-gaap Operating Costs And Expenses
OperatingCostsAndExpenses
39830000 USD
us-gaap Operating Costs And Expenses
OperatingCostsAndExpenses
126986000 USD
CY2014Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-12633000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
-46915000 USD
CY2015Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-26836000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
-39446000 USD
CY2014Q4 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
355000 USD
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Use of Estimates.&#160;&#160;</font><font style="font-family:inherit;font-size:10pt;">The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Acacia believes that, of the significant accounting policies described herein, the accounting policies associated with revenue recognition, stock-based compensation expense, impairment of marketable securities and intangible assets including goodwill, the determination of the economic useful life of amortizable intangible assets, income taxes and valuation allowances against net deferred tax assets and the application of the acquisition method of accounting for business combinations, require its most difficult, subjective or complex judgments.</font></div></div>
CY2015Q3 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
353000 USD
CY2014Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax
0 USD
us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax
0 USD
CY2015Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax
0 USD
us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax
-141000 USD
CY2014Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesNetOfTax
-350000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesNetOfTax
-1362000 USD
CY2015Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesNetOfTax
-274000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesNetOfTax
-617000 USD
CY2014Q3 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
-347000 USD
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
-1196000 USD
CY2015Q3 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
-94000 USD
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
-356000 USD
CY2014Q3 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodTax
0 USD
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodTax
0 USD
CY2015Q3 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodTax
0 USD
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodTax
0 USD
CY2014Q3 us-gaap Other Cost And Expense Operating
OtherCostAndExpenseOperating
1548000 USD
us-gaap Other Cost And Expense Operating
OtherCostAndExpenseOperating
1548000 USD
CY2015Q3 us-gaap Other Cost And Expense Operating
OtherCostAndExpenseOperating
3465000 USD
us-gaap Other Cost And Expense Operating
OtherCostAndExpenseOperating
3891000 USD
CY2014Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
228000 USD
CY2015Q3 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
291000 USD
us-gaap Other Operating Activities Cash Flow Statement
OtherOperatingActivitiesCashFlowStatement
-24000 USD
us-gaap Other Operating Activities Cash Flow Statement
OtherOperatingActivitiesCashFlowStatement
-127000 USD
us-gaap Payments Of Dividends
PaymentsOfDividends
18773000 USD
us-gaap Payments Of Dividends
PaymentsOfDividends
19091000 USD
us-gaap Payments To Acquire Available For Sale Securities
PaymentsToAcquireAvailableForSaleSecurities
76130000 USD
us-gaap Payments To Acquire Available For Sale Securities
PaymentsToAcquireAvailableForSaleSecurities
23296000 USD
us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
24518000 USD
us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
19504000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
106000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
8000 USD
us-gaap Payments To Minority Shareholders
PaymentsToMinorityShareholders
867000 USD
us-gaap Payments To Minority Shareholders
PaymentsToMinorityShareholders
0 USD
CY2014Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.001
CY2015Q3 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.001
CY2014Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2015Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2014Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2015Q3 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2014Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2015Q3 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2014Q4 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2015Q3 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2014Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
4355000 USD
CY2015Q3 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
4926000 USD
us-gaap Proceeds From Sale Of Available For Sale Securities
ProceedsFromSaleOfAvailableForSaleSecurities
133878000 USD
us-gaap Proceeds From Sale Of Available For Sale Securities
ProceedsFromSaleOfAvailableForSaleSecurities
82115000 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
198000 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
938000 USD
CY2014Q3 us-gaap Profit Loss
ProfitLoss
-12835000 USD
us-gaap Profit Loss
ProfitLoss
-50521000 USD
CY2015Q3 us-gaap Profit Loss
ProfitLoss
-27353000 USD
us-gaap Profit Loss
ProfitLoss
-40128000 USD
CY2014Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
500000 USD
CY2015Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
319000 USD
CY2015Q3 us-gaap Reporting Unit Amount Of Fair Value In Excess Of Carrying Amount
ReportingUnitAmountOfFairValueInExcessOfCarryingAmount
21300000 USD
CY2015Q3 us-gaap Reporting Unit Percentage Of Fair Value In Excess Of Carrying Amount
ReportingUnitPercentageOfFairValueInExcessOfCarryingAmount
0.05
CY2014Q4 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
0 USD
CY2015Q3 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
10721000 USD
CY2014Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-128095000 USD
CY2015Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-172221000 USD
CY2014Q3 us-gaap Royalty Expense
RoyaltyExpense
4667000 USD
us-gaap Royalty Expense
RoyaltyExpense
16312000 USD
CY2015Q3 us-gaap Royalty Expense
RoyaltyExpense
116000 USD
us-gaap Royalty Expense
RoyaltyExpense
10706000 USD
CY2014Q3 us-gaap Share Based Compensation
ShareBasedCompensation
3954000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
14022000 USD
CY2015Q3 us-gaap Share Based Compensation
ShareBasedCompensation
2164000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
8588000 USD
CY2014Q4 us-gaap Short Term Investments
ShortTermInvestments
58558000 USD
CY2015Q3 us-gaap Short Term Investments
ShortTermInvestments
0 USD
CY2014Q4 us-gaap Stockholders Equity
StockholdersEquity
483557000 USD
CY2015Q3 us-gaap Stockholders Equity
StockholdersEquity
429986000 USD
CY2014Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
489048000 USD
CY2015Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
439475000 USD
CY2014Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
1729408 shares
CY2015Q3 us-gaap Treasury Stock Shares
TreasuryStockShares
1729408 shares
CY2014Q4 us-gaap Treasury Stock Value
TreasuryStockValue
34640000 USD
CY2015Q3 us-gaap Treasury Stock Value
TreasuryStockValue
34640000 USD
CY2014Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
48806334 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
48561428 shares
CY2015Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
49630369 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
49423548 shares
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Concentrations. </font><font style="font-family:inherit;font-size:10pt;">Three</font><font style="font-family:inherit;font-size:10pt;"> licensees individually accounted for </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">54%</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">15%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">13%</font><font style="font-family:inherit;font-size:10pt;"> of revenues recognized during the three months ended </font><font style="font-family:inherit;font-size:10pt;color:#000000;font-weight:normal;text-decoration:none;">September&#160;30, 2015</font><font style="font-family:inherit;font-size:10pt;">, and </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> licensees accounted for </font><font style="font-family:inherit;font-size:10pt;">34%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">23%</font><font style="font-family:inherit;font-size:10pt;"> of revenues recognized during the nine months ended </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2015</font><font style="font-family:inherit;font-size:10pt;">. Three licensees individually accounted for </font><font style="font-family:inherit;font-size:10pt;">43%</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">30%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">12%</font><font style="font-family:inherit;font-size:10pt;"> of revenues recognized during the three months ended </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2014</font><font style="font-family:inherit;font-size:10pt;">, and three licensees accounted for </font><font style="font-family:inherit;font-size:10pt;">29%</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">18%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">11%</font><font style="font-family:inherit;font-size:10pt;"> of revenues recognized during the </font><font style="font-family:inherit;font-size:10pt;">nine months</font><font style="font-family:inherit;font-size:10pt;"> ended </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">September&#160;30, 2014</font><font style="font-family:inherit;font-size:10pt;">. For the </font><font style="font-family:inherit;font-size:10pt;">three and nine months</font><font style="font-family:inherit;font-size:10pt;"> ended </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2015</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">5%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">34%</font><font style="font-family:inherit;font-size:10pt;">, respectively, of revenues were attributable to licensees domiciled in foreign jurisdictions, based on the jurisdiction of the entity obligated to satisfy payment obligations pursuant to the applicable revenue arrangement. For the </font><font style="font-family:inherit;font-size:10pt;">three and nine months</font><font style="font-family:inherit;font-size:10pt;"> ended </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2014</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">20%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">49%</font><font style="font-family:inherit;font-size:10pt;">, respectively, of revenues were attributable to licensees domiciled in foreign jurisdictions. The Company does not have any material foreign operations.</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Three licensees individually represented approximately </font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;text-decoration:none;">55%</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">16%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">15%</font><font style="font-family:inherit;font-size:10pt;"> of accounts receivable at </font><font style="font-family:inherit;font-size:10pt;color:#000000;font-weight:normal;text-decoration:none;">September&#160;30, 2015</font><font style="font-family:inherit;font-size:10pt;">. Three licensees individually represented approximately </font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;text-decoration:none;">30%</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;text-decoration:none;">17%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">15%</font><font style="font-family:inherit;font-size:10pt;"> of accounts receivable at December 31, 2014. </font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>

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