Acacia Research Reports Third Quarter Financial Results.NEWPORT BEACH Newport Beach, residential and resort city (1990 pop. 66,643), Orange co., S Calif., on Newport Bay and the Pacific Ocean; inc. 1906. It is a popular seaside resort and yachting center. Manufactures include electrical and medical equipment, computers, boats, and adhesives. , Calif. -- Acacia acacia (əkā`shə), any plant of the large leguminous genus Acacia, often thorny shrubs and trees of the family Leguminosae (pulse family). Research Corporation (Nasdaq:ACTG ACTG Acting ACTG AIDS Clinical Trial Group ACTG Actuating/Actuator )(Nasdaq:CBMX) today reported results for the three months ended September September: see month. 30, 2005. Acacia Research Corporation comprises two operating groups, the Acacia Technologies
"Acacia Technologies revenues for the third quarter of 2005 were $6,783,000, an increase of 202% from the year ago period. We generated revenues from 32 new licensing agreements covering 8 different licensing programs. New licensees included Adidas ADIDAS All Day I Dream About Sex (song by Korn) ADIDAS Adolph (Adi) Dassler (founder of Adidas) , AMD (Advanced Micro Devices, Inc., Sunnyvale, CA, www.amd.com) A major manufacturer of semiconductor devices including x86-compatible CPUs, embedded processors, flash memories, programmable logic devices and networking chips. , CVS (1) (Concurrent Versions System) A version control system for Unix that was initially developed as a series of shell scripts in the mid-1980s. CVS maintains the changes between one source code version and another and stores all the changes in one file. Pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. , Gannett, LensCrafters LensCrafters is North America's largest retailer of prescription eyewear, as well as non-prescription sunglasses. LensCrafters was founded in 1983 and has subsequently expanded to over 850 stores in Canada, the United States, and Puerto Rico. , Priceline.com (priceline.com Incorporated, Norwalk, CT, www.priceline.com) A Web-based travel shopping site launched in 1998 where buyers submit the price they are willing to pay for airline tickets, hotel rooms, vacation packages and rental cars. , 7-Eleven, Samsung, Sony SONY Standard Oil of New York (common, but untrue; it's an urban legend) , Matsushita and the Tribune Company The Tribune Company (NYSE: TRB) is a large American multimedia corporation based in Chicago, Illinois. It is the nation's second-largest newspaper publisher, responsible for the Chicago Tribune, Los Angeles Times, Newsday, Hartford Courant ," commented Paul Ryan Paul Ryan may refer to:
"Acacia generated revenues from 3 new licensing programs in the quarter and has begun generating revenues from 11 of its 18 licensing programs. We acquired control of 3 new patent portfolios that relate to digital inkjet See inkjet printer. printing, high resolution optics, and hearing aid ECS See eComStation. technology and will commence licensing programs for these technologies. We will continue to acquire new patent portfolios as we move toward our goal of becoming the leader in technology licensing," concluded Mr. Ryan Ryan may refer to: Places
"The CombiMatrix group's revenues for the third quarter of 2005 were $1,463,000, an increase of 94% from the prior year quarter. Revenues consisted of $973,000 in government contract revenues and $490,000 in CustomArray(TM) product, equipment and service revenues," commented Dr. Amit A`mit´ v. t. 1. To lose. A lodestone fired doth presently amit its proper virtue. - Sir T. Browne. Kumar Kumar (from Sanskrit meaning prince or an (unmarried) youth) is an Indian title, given name or family name. As a title it can mean son of a Rājā, prince, or heir apparent and enters in princely compound titles. , President and CEO of CombiMatrix Corporation. "Including proceeds from recent offerings, we finished the quarter with $24.7 million in cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments, which will enable us to continue to move forward with additional product introductions and to continue investment in our CombiMatrix Molecular Diagnostics (1) Software routines that test hardware components (memory, keyboard, disks, etc.). Diagnostics are often stored in ROM chips and activated on startup. (2) Error messages in a programmer's source code that refer to statements or syntax that the compiler or assembler subsidiary," concluded Dr. Kumar. Acacia Research Corporation Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Financial Results Consolidated revenues for the third quarter of 2005 were $8,246,000 versus $2,993,000 in the comparable 2004 period. Third quarter 2005 revenues recognized by the CombiMatrix group were $1,463,000, comprised of $973,000 in government contract revenues and $490,000 in CustomArray(TM) product, equipment and service revenues. Third quarter 2005 revenues recognized by the Acacia Technologies group were $6,783,000, comprised of $927,000 in recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. license fee revenues and $5,856,000 in paid-up Paid-Up The state of a settlement when all payment obligations for a security have been completed in a customer account. When an individual has paid up, he or she has paid for the security in full. license fee revenues. Revenues in the comparable 2004 period were $2,240,000, comprised of $740,000 in recurring license fee revenues and $1,500,000 in previously deferred, paid-up V-chip An electronic circuit in a TV that parents can use to block TV programs they consider objectionable for their children. The FCC mandated that post January 1, 2000, all TVs 13" and larger contain the V-Chip. license fee revenues. Recurring license fee revenues are recognized from licensees that make recurring quarterly or annual license fee payments under their respective license agreements. Paid-up license fee revenues are recognized from licensees that make paid-up license fee payments for past infringement The encroachment, breach, or violation of a right, law, regulation, or contract. The term is most frequently used in reference to the invasion of rights secured by Copyright, patent, or trademark. and future use of our patented technologies, in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with their respective license agreements. Certain of our paid-up license agreements provide for potential additional payments to the Acacia Technologies group based on future activities. All of the paid-up license fee revenues recognized in the third quarter of 2005 relate to patents acquired in the January January: see month. 2005 acquisition of Global Patent Holdings, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (the "GPH GPH Gallons Per Hour GPH Gospel Publishing House (Pentecostal Christian publisher) GPH Grams Per Hour GPH Good Payment History GPH Generalized Proportional Hazard(s) GPH Gnome Phone Acquisition"). Third quarter 2005 license fee revenues included fees from the licensing of our Digital Media Transmission ("DMT See DSL. (R)") technology, audio/video enhancement and synchronization (1) See synchronous and synchronous transmission. (2) Ensuring that two sets of data are always the same. See data synchronization. (3) Keeping time-of-day clocks in two devices set to the same time. See NTP. technology, computer memory cache See cache. coherency co·her·en·cy n. pl. co·her·en·cies Coherence. Noun 1. coherency - the state of cohering or sticking together coherence, cohesion, cohesiveness technology, credit card fraud Credit card fraud is a wide-ranging term for theft and fraud committed using a credit card or any similar payment mechanism as a fraudulent source of funds in a transaction. The purpose may be to obtain goods without paying, or to obtain unauthorized funds from an account. protection technology, interactive television technology, interstitial In a separate window. See interstitial ad. (World-Wide Web) interstitial - A World-Wide Web page that appears before the expected content page. Interstitials can be used for advertising (intermercial, transition ad) or to confirm that the user is old enough to view the internet advertising Delivering ads to Internet users via Web sites, e-mail, ad-supported software and Internet-enabled cellphones. Also called an "ad network," Internet advertising organizations act as a middleman between the advertiser and the Web sites and software publishers that display the ads. technology, multi-dimensional bar code technology and network data storage technology. In the third quarter of 2005, the Acacia Technologies group recognized contingent Fortuitous; dependent upon the possible occurrence of a future event, the existence of which is not assured. The word contingent denotes that there is no present interest or right but only a conditional one which will become effective upon the happening of the legal fee expenses totaling $1,834,000 and inventor INVENTOR. One who invents or finds out something. 2. The patent laws of the United States authorize a patent to be issued to the original inventor; if the invention is suggested by another, he is not the inventor within the meaning of those laws; but in that royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. expenses totaling $2,105,000, in connection with the recognition of related paid-up license fee revenues. The third quarter 2005 consolidated net loss was $5,441,000 versus $5,390,000 in the comparable 2004 period. The third quarter 2005 results included net non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. totaling $1,990,000, comprised primarily of patent amortization charges of $1,607,000 and asset depreciation charges of $294,000. Third quarter 2004 net non-cash charges were $824,000, primarily comprised of patent amortization charges of $399,000, stock compensation charges of $147,000 and asset depreciation charges of $278,000. The increase in patent amortization charges reflects the amortization of patent related intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. acquired in connection with the GPH Acquisition, totaling approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $25.1 million, which are being amortized over a weighted average economic useful life of approximately 6 years. The third quarter 2005 results also included a non-cash credit of $211,000 related to the expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created of all of the anti-dilution provisions Anti-Dilution Provision A provision in an option or a convertible security. It protects an investor from dilution resulting from later issues of stock at a lower price than the investor originally paid. of the September 2002 settlement agreement between CombiMatrix Corporation and Nanogen  This article about a company does not make it clear whether the subject meets the Wikipedia criteria for . , Inc. and $225,000
of V-chip related inventor royalties Not to be confused with Royal family.Royalties (sometimes, running royalties) are usage-based payments made by one party (the "licensee") to another (the "licensor") for ongoing use of an asset, most typically an intellectual property (IP) right. expense recognized as a result of the anticipated conclusion of all V-chip related litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. activities in October October: see month. of 2005. As a result of the conclusion of the Acacia Technologies group's V-chip patent licensing program in August 2004, third quarter 2004 results include an impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge of $1,616,000 associated with the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of goodwill related to the V-chip, $1,500,000 of V-chip related deferred license fee revenues and $668,000 of V-chip related deferred legal costs. Third quarter 2005 government contract costs totaled $920,000 versus $647,000 in the comparable 2004 period. The change was due to increased costs recognized in connection with the CombiMatrix group's commitments under its biological threat detection contract with the Department of Defense. As of September 30, 2005, the biological threat detection contract was approximately 85% complete. Third quarter 2005 internal research and development expenses were $1,527,000 versus $1,140,000 in the comparable 2004 period. During the third quarter of 2005 and 2004, the CombiMatrix group continued internal research and development efforts to improve and expand the CombiMatrix group's technology and product offerings. The increase in internal research and development expenses was due primarily to the impact of the CombiMatrix group's wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , CombiMatrix Molecular Diagnostics, which was formed and began operations during the second quarter of 2005. Marketing, general and administrative expenses for the third quarter of 2005 increased to $4,830,000 from $3,597,000 in the comparable 2004 period, due primarily to the addition of licensing and business development personnel for the Acacia Technologies group, an increase in the Acacia Technologies group's consulting expenses related to a consulting agreement executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. with the former CEO of Global Patent Holdings, LLC, an increase in marketing and sales expenses related to the commercial sale of CombiMatrix group's CustomArray(TM) products and services and an increase in expenses related to CombiMatrix Molecular Diagnostics, which began operations during the second quarter of 2005. Third quarter 2005 patent related legal expenses, incurred solely by the Acacia Technologies group, were $1,076,000 versus $506,000 (excluding third quarter 2004 deferred V-chip related legal expenses) in the comparable 2004 period. Third quarter 2005 patent related legal expenses included $183,000 in patent related prosecution prosecution n. 1) in criminal law, the government attorney charging and trying the case against a person accused of a crime. 2) a common term for the government's side in a criminal case, as in "the prosecution will present five witnesses" or "the prosecution rests" and enforcement costs incurred by certain of the companies acquired in the GPH Acquisition. Excluding the impact of the GPH Acquisition, third quarter 2005 patent related legal expenses increased to $893,000, due to an increase in ongoing DMT patent related litigation activity in the third quarter of 2005. DMT related legal fees paid to outside attorneys are incurred based on actual time and out-of-pocket expenses out-of-pocket expenses n. moneys paid directly for necessary items by a contractor, trustee, executor, administrator or any person responsible to cover expenses not detailed by agreement. incurred by external counsel and fluctuate from period to period based on patent enforcement and prosecution activity in each period. Financial Condition Total consolidated assets were $125,708,000 as of September 30, 2005 compared to $88,327,000 as of December December: see month. 31, 2004. Cash and cash equivalents and short-term investments on a consolidated basis totaled $65,709,000 as of September 30, 2005 compared to $52,358,000 as of December 31, 2004. In July July: see month. 2005, Acacia Research Corporation raised gross proceeds of $3,151,000 through the sale of 1,400,444 shares of AR-CombiMatrix stock at a price of $2.25 per share in a registered direct offering. Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). raised of approximately $3,114,000, which are net of related issuance costs, were attributed to the CombiMatrix group. In September 2005, Acacia Research Corporation raised gross proceeds of $10,537,000 through the sale of 6,385,907 shares of AR-CombiMatrix stock and 1,596,478 AR-CombiMatrix stock purchase warrants at a price of $1.65 per unit in a registered direct offering. Each unit consisted of one share of AR-CombiMatrix stock and one-quarter of a five-year AR-CombiMatrix stock purchase warrant. Each full AR-CombiMatrix stock purchase warrant entitles the holder to purchase a share of AR-CombiMatrix stock at a price of $2.40 per share and is exercisable immediately upon issue. Net proceeds raised of approximately $9,707,000, which are net of related issuance costs, were attributed to the CombiMatrix group. At September 30, 2005, the fair value of the stock purchase warrants has been classified as a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. liability as a result of certain redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. provisions associated with the underlying AR-CombiMatrix stock. Changes in the fair value of the stock purchase warrant liability are reflected in the statement of operations See Income statement. . Proceeds from these offerings are being used by the CombiMatrix group for general working capital purposes. All of the shares of stock were offered pursuant to an effective registration statement previously filed with the Securities and Exchange Commission. Acacia Technologies Group (A Division of Acacia Research Corporation) Financial Results License fee revenues for the third quarter of 2005 were $6,783,000, comprised of $927,000 in recurring license fee revenues and $5,856,000 in paid-up license fee revenues. Revenues in the comparable 2004 period were $2,240,000, comprised of $740,000 in recurring license fee revenues and $1,500,000 in previously deferred, paid-up V-chip license fee revenues. Recurring license fee revenues are recognized from licensees that make recurring quarterly or annual license fee payments under their respective license agreements. Paid-up license fee revenues are recognized from licensees that make paid-up license fee payments for past infringement and future use of our patented technologies, in accordance with their respective license agreements. Certain of our paid-up license agreements provide for potential additional payments based on future activities. All of the paid-up license fee revenues recognized in the third quarter of 2005 relate to patents acquired in the January 2005 GPH Acquisition. Third quarter 2005 license fee revenues included fees from the licensing of our Digital Media Transmission ("DMT(R)") technology, audio/video enhancement and synchronization technology, computer memory cache coherency technology, credit card fraud protection technology, interactive television technology, interstitial internet advertising technology, multi-dimensional bar code technology and network data storage technology. In the third quarter of 2005, the Acacia Technologies group recognized contingent legal fee expenses totaling $1,834,000 and inventor royalty expenses totaling $2,105,000, in connection with the recognition of related paid-up license fee revenues. The third quarter 2005 division net loss was $1,558,000 versus $1,842,000 in the comparable 2004 period. Included in the third quarter 2005 divisional results are non-cash charges totaling $1,474,000, primarily comprised of patent amortization charges of $1,334,000 and stock compensation charges of $123,000. Non-cash patent amortization charges were $125,000 in the comparable 2004 period. The increase in patent amortization charges reflects the scheduled amortization of approximately $25.1 million in patent related intangibles acquired in connection with the GPH Acquisition, which are being amortized over a weighted average economic useful life of approximately 6 years. The third quarter 2005 results also included $225,000 of V-chip related inventor royalties expense recognized as a result of the anticipated conclusion of all V-chip related litigation activities in October of 2005. As a result of the conclusion of the V-chip patent licensing program in August 2004, third quarter 2004 results include an impairment charge of $1,616,000 associated with the write-off of goodwill related to the V-chip, $1,500,000 of V-chip related deferred license fee revenues and $668,000 of V-chip related deferred legal costs. Third quarter 2005 marketing, general and administrative expenses increased to $1,990,000 from $1,323,000 in the comparable 2004 period, due primarily to the addition of licensing and business development personnel, an increase in consulting expenses related to a consulting agreement executed with the former CEO of Global Patent Holdings and an increase in general and administrative expenses associated with ongoing operations. Third quarter 2005 general and administrative expenses included $205,000 in one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. , employee relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. expenses. Third quarter 2005 patent related legal expenses were $1,076,000 versus $506,000 (excluding third quarter 2004 deferred V-chip related legal expenses) in the comparable 2004 period. Third quarter 2005 patent related legal expenses included $183,000 in patent related prosecution and enforcement costs incurred by certain of the companies acquired in the GPH Acquisition. Excluding the impact of the GPH Acquisition, third quarter 2005 patent related legal expenses increased to $893,000, due to an increase in ongoing DMT patent related litigation activity in the third quarter of 2005. DMT related legal fees paid to outside attorneys are incurred based on actual time and out-of-pocket expenses incurred by external counsel and fluctuate from period to period based on patent enforcement and prosecution activity in each period. It is anticipated that the majority of litigation expenses associated with the recently acquired patent portfolios will be incurred on a contingency contingency n. an event that might not occur. basis where patent attorney fees are paid out of license fee revenues collected based on a contractual percentage. In connection with the GPH Acquisition, we expect that other legal expenses associated with the maintenance, licensing and enforcement of our patented technologies, will increase in future periods as we continue to roll out our licensing programs for our recently acquired patented technologies. Financial Condition Total assets for the Acacia Technologies group were $68,251,000 as of September 30, 2005 compared to $33,058,000 as of December 31, 2004. Cash and cash equivalents and short-term investments totaled $41,012,000 as of September 30, 2005 compared to $28,646,000 as of December 31, 2004. CombiMatrix Group (A Division of Acacia Research Corporation) Financial Results Revenues for the third quarter of 2005 were $1,463,000 versus $753,000 in the comparable 2004 period. Third quarter 2005 revenues were comprised of $973,000 in government contract revenues and $490,000 in CustomArray(TM) product, equipment and service revenues. Government contract revenues relate to the CombiMatrix group's development of biological threat detection technology under its $5.9 million Department of Defense cost plus fixed fee contract, originally awarded in March 2004. The third quarter 2005 division net loss was $3,883,000 versus $3,548,000 in the comparable 2004 period. The third quarter 2005 results included non-cash patent amortization, asset depreciation and stock compensation charges totaling $516,000 as compared to $686,000 in the comparable 2004 period. The third quarter 2005 results included a non-cash credit of $211,000 related to the expiration of all of the anti-dilution provisions of the September 2002 settlement agreement with Nanogen, Inc. as of September 30, 2005. Third quarter 2005 government contract costs totaled $920,000 versus $647,000 in the comparable 2004 period. The change was due to increased costs recognized in connection with the CombiMatrix group's commitments under its biological threat detection contract with the Department of Defense. As of September 30, 2005, the biological threat detection contract was approximately 85% complete. Third quarter 2005 internal research and development expenses were $1,527,000 versus $1,140,000 in the comparable 2004 period. During the third quarter of 2005 and 2004, the CombiMatrix group continued internal research and development efforts to improve and expand the CombiMatrix group's technology and product offerings. The increase in internal research and development expenses was due primarily to the impact of the CombiMatrix group's wholly owned subsidiary, CombiMatrix Molecular Diagnostics, which was formed and began operations during the second quarter of 2005. Third quarter 2005 marketing, general and administrative expenses increased to $2,840,000 versus $2,274,000 in the comparable 2004 period, due primarily to an increase in marketing and sales expenses related to commercial sales of the CombiMatrix group's CustomArray(TM) products and services and an increase in expenses related to CombiMatrix Molecular Diagnostics, which began operations during the second quarter of 2005. Financial Condition Total assets for the CombiMatrix group were $57,457,000 as of September 30, 2005 compared to $55,388,000 as of December 31, 2004. Cash and cash equivalents and short-term investments totaled $24,697,000 as of September 30, 2005 compared to $23,712,000 as of December 31, 2004. In July 2005, Acacia Research Corporation raised gross proceeds of $3,151,000 through the sale of 1,400,444 shares of AR-CombiMatrix stock at a price of $2.25 per share in a registered direct offering. Net proceeds raised of approximately $3,114,000, which are net of related issuance costs, were attributed to the CombiMatrix group. In September 2005, Acacia Research Corporation raised gross proceeds of $10,537,000 through the sale of 6,385,907 shares of AR-CombiMatrix stock and 1,596,478 AR-CombiMatrix stock purchase warrants at a price of $1.65 per unit in a registered direct offering. Each unit consisted of one share of AR-CombiMatrix stock and one-quarter of a five-year AR-CombiMatrix stock purchase warrant. Each full AR-CombiMatrix stock purchase warrant entitles the holder to purchase a share of AR-CombiMatrix stock at a price of $2.40 per share and is exercisable immediately upon issue. Net proceeds raised of approximately $9,707,000, which are net of related issuance costs, were attributed to the CombiMatrix group. At September 30, 2005, the fair value of the stock purchase warrants has been classified as a long-term liability as a result of certain redemption provisions associated with the underlying AR-CombiMatrix stock. Changes in the fair value of the stock purchase warrant liability are reflected in the statement of operations. Proceeds from these offerings are being used for general working capital purposes. Business Highlights and Recent Developments Business highlights of the third quarter and recent developments include:
Acacia Technologies group:
-- In July 2005, Financial Systems Innovation LLC, a wholly owned
subsidiary of the Acacia Technologies group, entered into a
non-exclusive license covering a patent that applies to credit
card fraud protection technology with LensCrafters, Inc.,
Sunglass Hut Trading Corporation, Pearle Vision, Inc., Cole
Vision Corporation, Watch World International, Inc., and
Things Remembered, Inc. Additional licenses were entered into
with 7-Eleven, Inc., Academy, Ltd., Michaels Stores, Inc.,
Coldwater Creek, Inc., The Dress Barn, Inc. and Whitehall
Jewellers, Inc. in August 2005 and with CVS Pharmacy, Inc. in
September 2005. The patented technology generally relates to a
computerized system for protecting retailers and consumers
engaged in credit card, check card, and debit transactions.
-- In August 2005, Acacia Media Technologies Corporation, a
wholly owned subsidiary of the Acacia Technologies group,
entered into a non-exclusive license agreement for certain
uses of its Digital Media Transmission ("DMT(R)") technology
with Gannett Co., Inc., Internet Broadcasting Systems, Inc.,
Journal Communications, Inc., Landmark Communications, Inc.,
The E.W. Scripps Company, and Tribune Company. The Acacia
Technologies group's DMT(R) technology involves the
transmission and receipt of digital audio and/or audio video
content via a variety of means including the internet, cable,
satellite and local area networks. Elements of the DMT(R)
transmission process include a source material library,
identification encoding process, format conversion, sequence
encoding, compressed data storage and transmission. Elements
of the DMT(R) receiving process include a transceiver, format
conversion, storage, decompression and playback.
-- In August 2005, VData, LLC, a wholly owned subsidiary that is
part of the Acacia Technologies group, entered into a
non-exclusive license with Adidas-Salomon AG, Adidas America,
Inc. and Paxar Corporation covering a portfolio of patents
that apply to certain multi-dimensional bar codes. The license
to Adidas resolves a patent infringement lawsuit against
Adidas and its related companies, which was pending in the
District Court for the District of Minnesota. An additional
license was entered into with Advanced Micro Devices, Inc.
("AMD") which resolved a patent infringement lawsuit against
AMD, which was pending in the District Court for the District
of Minnesota.
The multi-dimensional bar code technology generally relates to
encoding and reading a data matrix consisting of an array of
data cells with a border. The data matrix can contain a
variety, amount, and depth of information that would not fit
onto an ordinary bar code. This patented technology can have
many applications in the manufacturing, distribution,
operations, accounting, and security industries such as
tracking the movement of products, collection of data,
improved production capabilities and anti-counterfeiting.
-- In August 2005, InternetAd Systems, LLC, a wholly owned
subsidiary that is part of the Acacia Technologies group,
entered into a non-exclusive license with Priceline.com
Incorporated, covering a portfolio of patents that apply to
interstitial internet advertising. The license to
Priceline.com resolves a patent infringement lawsuit against
Priceline.com which was pending in the District Court for the
Northern District of Texas, Dallas Division. The interstitial
internet advertising technology generally relates to the
display of certain advertising, informational, and branding
messages that appear between or outside the web pages when the
user is conducting a search, by storing the message prior to
being displayed.
-- In August 2005, IP Innovation, LLC, AV Technologies, LLC, and
New Medium Technologies, LLC, all wholly owned subsidiaries
that are part of the Acacia Technologies group, entered into a
non-exclusive license and settlement agreement with Sony
Corporation, covering patents that apply to Audio/Video
Enhancement and Synchronization, and Image Resolution
Enhancement technologies. The agreement with Sony resolves a
patent infringement lawsuit which was pending in the United
States District Court for the Northern District of Illinois.
The Audio/Video Enhancement and Synchronization technologies
generally relate to the use of a noise reduction filtering
system for digital video compression, and for video and audio
signals received by digital radios and video displays. Other
aspects of the technologies apply to the synchronization of
audio/video signals. The Image Resolution Enhancement
Technology generally relates to the modification of a video or
printed display to improve the perceived image quality beyond
the basic pixel resolution of the display.
-- In September 2005, KY Data Systems, LLC, a wholly owned
subsidiary that is part of the Acacia Technologies Group,
entered into non-exclusive licenses covering a portfolio of
patents that apply to interactive television with Matsushita
Electric Industrial Co., Ltd. and Samsung Electronics Co.,
Ltd. The patents cover receivers such as set-top boxes and
certain televisions used in digital satellite and digital
cable systems that permit television viewers to access
interactive television features supplied by their satellite
and cable providers as part of their digital programming
packages.
-- In September 2005, Computer Cache Coherency Corporation, a
wholly owned subsidiary that is part of the Acacia
Technologies group, entered into a non-exclusive license with
AMD, covering a portfolio of patents that apply to certain
core logic computer chipsets. The license to AMD resolves a
patent infringement lawsuit against AMD, which was pending in
the District Court for the Northern District of California.
The Computer Memory Cache Coherency technology generally
relates to interface circuits used by intelligent peripheral
devices with cache memory to communicate with the main
computer memory. By synchronizing main computer memory and
main cache memory, the technology enables different memories
to communicate and synchronize with each other, allowing
peripheral devices to operate at faster speeds. This
technology can be used in desktop, notebook, and server
computer systems.
-- During the third quarter of 2005, Acacia Patent Acquisition
Corporation, a wholly owned subsidiary that is part of the
Acacia Technologies group, continued its patent acquisition
activities as follows:
-- In July 2005, Acacia Patent Acquisition Corporation,
acquired several patents covering electromagnetic
compatibility shielding ("ECS") technology commonly
incorporated into hearing aids. The patented technology
shields hearing aids from electromagnetic interference
produced by portable electronic devices such as cell
phones, cordless phones, wireless headphones and headsets,
and WIFI and Bluetooth enabled devices. The ECS technology
can be incorporated into many styles of hearing aids.
-- In August 2005, Acacia Patent Acquisition Corporation
acquired patents relating to a technology used to improve
print image quality for inkjet printers. These patents
cover a method of using digital processing to create a row
by row, column by column matrix of color intensity values
from an image that are stored into memory. These values
are transformed using a dither matrix, resulting in
enhanced color separation. Color inkjet printers are
commonly used to print photo quality pictures from digital
cameras.
-- In September 2005, Acacia Patent Acquisition Corporation
acquired the rights to patents relating to high resolution
optics used by the military and in commercial products.
These patents generally relate to refractive and
diffractive systems and methods for improving imaging
capabilities in multi-element optical systems by using
fewer elements. The patented systems and techniques have
direct applications in military imaging systems such as
thermal weapon sites, as well as commercial products like
camera lenses and optical printers.
-- In October 2005, Acacia Media Technologies Corporation
reached an accord with attorneys from the university
community on licensing terms for the use of Acacia's
DMT(R) technology. The revised license offer includes an
annual fixed fee royalty payment that is based on the
number of full-time equivalent (FTE) students, and exempts
non-profit colleges and universities with less than 1,000
students. The revised terms will only be available to
non-profit U.S. colleges and universities that enter into
the license agreement on or before December 1, 2005.
CombiMatrix group:
-- In July 2005, the CombiMatrix group entered into a
non-exclusive agreement with J.K. International Inc. to
distribute CombiMatrix's CustomArray(TM) microarray products
in Japan. J.K. International's marketing and sales
organizations will market, sell, and service the
CustomArray(TM) products.
-- In July 2005, Acacia Research Corporation announced the
expansion of the management team at CombiMatrix Molecular
Diagnostics ("CMD"), a wholly owned subsidiary of CombiMatrix
Corporation and a cancer-based molecular diagnostics company
based in Irvine, California. CMD announced the appointment of
Dr. Mathew Moore, Director of Research and Development, Robert
Embree, Director of Laboratory Operations, and John Besser,
Chief Financial Officer.
-- In August 2005, the CombiMatrix group announced that R. Scott
Greer joined CombiMatrix Corporation as an advisor. Mr. Greer
is managing director of Numenor Ventures, LLC, a firm he
formed to invest in and provide strategic advisory services to
innovative life science companies. He is a founder and remains
chairman of Abgenix, Inc., a public biopharmaceutical company.
Mr. Greer served as Chief Executive Officer of Abgenix from
June 1996 to April 2002. He is also a director of publicly
traded Sirna Therapeutics, Inc. and chairman of Acologix, a
private company. Previously, Mr. Greer was a director of
Ilumina, Inc. and CV Therapeutics, Inc., both publicly traded
companies.
-- In August 2005, the CombiMatrix group announced the launch of
its first CustomArray(TM) DNA Synthesizer, enabling
researchers to build microarrays in their own facilities. For
the first time, pharmaceutical and academic core facilities
will have the ability to manufacture high quality, commercial
grade microarrays to their exact specifications with complete
control over customization. The platform consists of the DNA
CustomArray(TM) Synthesizer instrument and freely programmable
microarrays or CustomArrays(TM). Initially, the instrument has
been designed to fabricate the CustomArray(TM) 12K (12,000
unique sites) array.
-- In August 2005, the CombiMatrix group and the Biodesign
Institute at Arizona State University (the "Institute")
entered into a collaboration toward the development of a
peptide array synthesizer utilizing the CombiMatrix group's
proprietary virtual-flask technology. Under the terms of the
agreement, the Biodesign Institute's Center for BioOptical
Nanotechnology purchased CombiMatrix group equipment and will
be funding development of the synthesizer. The CombiMatrix
group is granting technology rights and contributing expertise
related to its technology, and the CombiMatrix group and the
Institute will share revenue from commercialization of peptide
array synthesizers, peptide array products, and intellectual
property that are developed.
-- In August 2005, the CombiMatrix group announced that Dr. Eric
Whitman joined CombiMatrix's wholly owned subsidiary, CMD, as
a member of its Scientific Advisory Board and a Consultant in
the area of Melanoma Diagnosis and Management. Dr Whitman,
F.A.C.S., is the Administrative Director of Surgical Services
and the Director of the Melanoma Center at Mountainside
Hospital, in Montclair, New Jersey.
-- In September 2005, the CombiMatrix group expanded its product
line to include the CustomArray(TM) 4X2K(TM). This product
contains four independent 2000-feature microarrays on a single
CustomArray(TM). As with all CustomArray(TM) products, the
4X2K offers complete array customization, user control of
probe design, and the ability to modify microarray design at
any time. It delivers high sensitivity, throughput, and ease
of use for gene discovery, pathway research, and molecular
characterization of disease. The 4X2K's introductory price is
$99 per 2000-feature microarray.
-- In September 2005, the CombiMatrix group entered into a global
distribution agreement with VWR International, Inc. ("VWR") to
distribute CustomArrays(TM) and CatalogArrays(TM) for the
CombiMatrix group. VWR's sales and marketing organization
presently serves over 250,000 customers with worldwide sales
of $3.0 billion annually.
-- In September 2005, the CombiMatrix Group received a one-year,
$338,000 contract from the U.S. Air Force for the development
and production of microarrays to detect pathogens that cause
upper respiratory infections and pathogens that infect wounds.
This contract is the result of a collaborative effort with the
Air Force Institute of Occupational Health ("AFIOH") that led
to the development of a rapid assay and microarray that
identifies, among other things, all forms (serotypes) of
influenza A, SARS and bird flu, including the H5N1 strain. The
first array to be developed under the new contract will
identify a number of upper respiratory infections that can
cause potentially life threatening diseases (such as viral and
bacterial pneumonia) or lead to pandemic infections (such as
bird flu and SARS).
A conference call is scheduled for today. The Acacia Technologies Group presentation and Q&A will start at 1:15 p.m. Pacific Time (4:15 p.m. Eastern). The CombiMatrix Group presentation and Q&A session will start at 2:00 p.m. Pacific Time (5:00 p.m. Eastern). To listen to the presentation by phone, dial (800) 967-7187 for domestic callers and (719) 457-2635 for international callers, both of whom will need to provide the operator with the confirmation code 1072540. A replay of the audio presentation will be available for 30 days at (888) 203-1112 for domestic callers and (719) 457-0820 for international callers, both of whom will need to enter the code 1072540 when prompted. The call is being webcast by CCBN CCBN Central Coast Bancorp CCBN Charles County Business Network and can be accessed at Acacia's website at www.acaciaresearch.com. ABOUT ACACIA RESEARCH CORPORATION Acacia Research Corporation comprises two operating groups, Acacia Technologies group and CombiMatrix group. The Acacia Technologies group develops, acquires, and licenses patented technologies. Acacia controls 33 patent portfolios, which include over 120 U.S. patents, and certain foreign counterparts, covering technologies used in a wide variety of industries including audio/video enhancement & synchronization, broadcast data retrieval retrieval /re·triev·al/ (-tre´v'l) in psychology, the process of obtaining memory information from wherever it has been stored. re·triev·al n. , computer memory cache coherency, credit card fraud protection, database management, data encryption data encryption, the process of scrambling stored or transmitted information so that it is unintelligible until it is unscrambled by the intended recipient. Historically, data encryption has been used primarily to protect diplomatic and military secrets from foreign & product activation Product activation is a license validation procedure required by some proprietary computer software programs. Specifically, product activation refers to a method where a software application hashes hardware serial numbers and an ID number specific to the product's license (a , digital media transmission (DMT(R)), digital video production, dynamic manufacturing modeling, enhanced Internet navigation navigation, science and technology of finding the position and directing the course of vessels and aircraft. Early Navigational Techniques In ancient times, mariners navigated by the guidance of the sun and stars and landmarks along the coast. , high resolution optics, image resolution enhancement, interactive data sharing The ability to share the same data resource with multiple applications or users. It implies that the data are stored in one or more servers in the network and that there is some software locking mechanism that prevents the same set of data from being changed by two people at the same time. , interactive television, hearing aid ECS, interstitial internet advertising, laptop Same as laptop computer. laptop - portable computer docking station (1) A cradle for a portable device that serves to charge the unit and connect it to other sources or destinations. For example, an iPod docking station charges the iPod and connects it to a computer, speakers or TV set. connectivity A generic term for connecting devices to each other in order to transfer data back and forth. It often refers to network connections, which embraces bridges, routers, switches and gateways as well as backbone networks. , microprocessor microprocessor, integrated circuit containing the arithmetic, logic, and control circuitry required to interpret and execute instructions from a computer program. enhancement, multi-dimensional bar codes, network data storage, resource scheduling, rotational rotational characterized by rotation. rotational crossbreeding system a program in which the sire for the terminal cross of lamb or calf is changed each year so that the state of heterosis is maintained at a high level. video imaging and spreadsheet spreadsheet Computer software that allows the user to enter columns and rows of numbers in a ledgerlike format. Any cell of the ledger may contain either data or a formula that describes the value that should be inserted therein based on the values in other cells. automation. The CombiMatrix group is developing a platform technology to rapidly produce customizable arrays, which are semiconductor-based tools for use in identifying and determining the roles of genes, gene mutations Noun 1. gene mutation - (genetics) a mutation due to an intramolecular reorganization of a gene point mutation genetic science, genetics - the branch of biology that studies heredity and variation in organisms and proteins. The CombiMatrix's group's technology has a wide range of potential applications in the areas of genomics ge·no·mics n. The study of all of the nucleotide sequences, including structural genes, regulatory sequences, and noncoding DNA segments, in the chromosomes of an organism. , proteomics pro·te·o·mics n. The analysis of the expression, localization, functions, and interactions of the proteins produced by the genes of an organism. , biosensors, drug discovery, drug development, diagnostics, combinatorial chemistry Combinatorial chemistry involves the rapid synthesis or the computer simulation of a large number of different but structurally related molecules. Introduction Synthesis of molecules in a combinatorial fashion can quickly lead to large numbers of molecules. , material sciences and nanotechnology nanotechnology: see micromechanics. nanotechnology Manipulation of atoms, molecules, and materials to form structures on the scale of nanometres (billionths of a metre). . Acacia Research-Acacia Technologies (Nasdaq:ACTG) and Acacia Research-CombiMatrix (Nasdaq:CBMX) are both classes of common stock issued by Acacia Research Corporation and are intended to reflect the performance of the respective operating groups and are not issued by the operating groups. Information about the Acacia Technologies group and the CombiMatrix group is available at www.acaciaresearch.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including the recent economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. affecting technology companies, our ability to successfully develop products, rapid technological change in our markets, changes in demand for our future products, legislative, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. and competitive developments and general economic conditions. Our Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , recent and forthcoming Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. , recent Current Reports on Forms 8-K and 8-K/A, and other SEC filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.
ACACIA RESEARCH CORPORATION
SUMMARY FINANCIAL INFORMATION
(In thousands, except share and per share information)
(Unaudited)
CONSOLIDATED BALANCE SHEET INFORMATION
September 30, December 31,
2005 2004
-------------- -------------
Total Assets $ 125,708 $ 88,327
============== =============
Total Liabilities $ 15,738 $ 11,913
============== =============
Minority Interests $ 486 $ 778
============== =============
Total Stockholders' Equity $ 109,484 $ 75,636
============== =============
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months For the Nine Months
Ended Ended
----------------------- -----------------------
September September September September
30, 2005 30, 2004 30, 2005 30, 2004
----------- ----------- ----------- -----------
Revenues:
Research and
development contract $- $- $- $17,302
License fees 6,783 2,240 11,328 3,505
Government contract 973 685 2,985 1,603
Products and services 490 68 1,404 214
----------- ----------- ----------- -----------
Total revenues 8,246 2,993 15,717 22,624
----------- ----------- ----------- -----------
Operating expenses:
Cost of government
contract revenues 920 647 2,820 1,505
Cost of product sales 282 41 635 81
Research and
development expenses 1,527 1,140 4,082 3,932
Non-cash stock
compensation
amortization -
research and
development - (10) - 91
Marketing, general
and administrative
expenses 4,830 3,597 12,980 10,269
Legal expenses -
patents 1,076 1,174 2,173 2,352
Contingent legal fees
and inventor
royalties expense -
patents 3,939 - 5,706 -
Inventor royalties -
V-chip 225 - 225 -
Non-cash stock
compensation
amortization -
marketing, general
and administrative 88 157 (23) 634
Goodwill impairment
charge - 1,616 - 1,616
Amortization of
patents 1,607 399 4,407 1,197
Legal settlement
charges (credits) (211) (90) (406) 776
Warrant charges
(credits) (163) - (163) -
----------- ----------- ----------- -----------
Total operating
expenses 14,120 8,671 32,436 22,453
----------- ----------- ----------- -----------
Operating income
(loss) (5,874) (5,678) (16,719) 171
----------- ----------- ----------- -----------
Other income
(expense):
Interest income 434 218 1,089 568
Other expense (100) - (201) -
----------- ----------- ----------- -----------
Total other income 334 218 888 568
----------- ----------- ----------- -----------
Income (loss) from
continuing operations
before income taxes
and minority
interests (5,540) (5,460) (15,831) 739
Benefit for income
taxes 98 70 232 206
----------- ----------- ----------- -----------
Income (loss) from
continuing operations
before minority
interests (5,442) (5,390) (15,599) 945
Minority interests 1 - 1 3
----------- ----------- ----------- -----------
Income (loss) from
continuing operations (5,441) (5,390) (15,598) 948
----------- ----------- ----------- -----------
Discontinued
operations:
Estimated loss on
disposal of
discontinued
operations - - (210) (104)
----------- ----------- ----------- -----------
Net income (loss) $ (5,441) $ (5,390) $ (15,808) $ 844
=========== =========== =========== ===========
Earnings (loss) per
common share:
Attributable to the
Acacia Technologies
group:
Net loss $(1,558) $(1,842) $(5,192) $(3,984)
Basic and diluted loss
per share (0.06) (0.09) (0.20) (0.20)
Attributable to the
CombiMatrix group:
Basic
Net income (loss) $(3,883) $(3,548) $(10,616) $4,828
Basic earnings (loss)
per share (0.12) (0.11) (0.33) 0.16
Diluted
Net income (loss) $(3,883) $(3,548) $(10,616) $4,828
Diluted earnings
(loss) per share (0.12) (0.11) (0.33) 0.16
Weighted average
shares:
Acacia Research -
Acacia Technologies
stock:
Basic and diluted 27,302,693 19,793,487 26,387,562 19,777,820
=========== =========== =========== ===========
Acacia Research -
CombiMatrix stock:
Basic 33,239,726 30,962,190 31,887,872 29,570,562
=========== =========== =========== ===========
Diluted 33,239,726 30,962,190 31,887,872 30,789,229
=========== =========== =========== ===========
ACACIA TECHNOLOGIES GROUP
(A Division of Acacia Research Corporation)
SUMMARY FINANCIAL INFORMATION
(In thousands)
(Unaudited)
GROUP BALANCE SHEET INFORMATION
September 30, December 31,
2005 2004
-------------- -------------
Total Assets $ 68,251 $ 33,058
============== =============
Total Liabilities $ 5,194 $ 3,472
============== =============
Minority Interests $ 486 $ 778
============== =============
Total Stockholders' Equity $ 62,571 $ 28,808
============== =============
GROUP STATEMENTS OF OPERATIONS
For the Three Months For the Nine Months
Ended Ended
----------------------- -----------------------
September September September September
30, 2005 30, 2004 30, 2005 30, 2004
----------- ----------- ----------- -----------
Revenues:
License fees $6,783 $2,240 $11,328 $3,505
----------- ----------- ----------- -----------
Total revenues 6,783 2,240 11,328 3,505
----------- ----------- ----------- -----------
Operating expenses:
Marketing, general and
administrative
expenses 1,990 1,323 5,359 3,489
Legal expenses -
patents 1,076 1,174 2,173 2,352
Non-cash stock
compensation
amortization 123 - 123 -
Goodwill impairment
charge - 1,616 - 1,616
Contingent legal fees
and inventor
royalties expense -
patents 3,939 - 5,706 -
Inventor royalties -
V-chip 225 - 225 -
Amortization of
patents 1,334 125 3,586 375
----------- ----------- ----------- -----------
Total operating
expenses 8,687 4,238 17,172 7,832
----------- ----------- ----------- -----------
Operating loss (1,904) (1,998) (5,844) (4,327)
----------- ----------- ----------- -----------
Other income:
Interest income 312 120 761 340
Other income - - 1 -
----------- ----------- ----------- -----------
Total other income 312 120 762 340
----------- ----------- ----------- -----------
Loss from continuing
operations before
income taxes and
minority interests (1,592) (1,878) (5,082) (3,987)
Benefit for income
taxes 33 36 99 104
----------- ----------- ----------- -----------
Loss from continuing
operations before
minority interests (1,559) (1,842) (4,983) (3,883)
Minority interests 1 - 1 3
----------- ----------- ----------- -----------
Loss from continuing
operations (1,558) (1,842) (4,982) (3,880)
Discontinued
operations:
Estimated loss on
disposal of
discontinued
operations - - (210) (104)
----------- ----------- ----------- -----------
Division net loss $(1,558) $(1,842) $(5,192) $(3,984)
=========== =========== =========== ===========
COMBIMATRIX GROUP
(A Division of Acacia Research Corporation)
SUMMARY FINANCIAL INFORMATION
(In thousands)
(Unaudited)
GROUP BALANCE SHEET INFORMATION
September 30, December 31,
2005 2004
-------------- -------------
Total Assets $ 57,457 $ 55,388
============== =============
Total Liabilities $ 10,544 $ 8,560
============== =============
Minority Interests $ - $ -
============== =============
Total Stockholders' Equity $ 46,913 $ 46,828
============== =============
GROUP STATEMENTS OF OPERATIONS
For the Three Months For the Nine Months
Ended Ended
----------------------- -----------------------
September September September September
30, 2005 30, 2004 30, 2005 30, 2004
----------- ----------- ----------- -----------
Revenues:
Research and
development contract $- $- $- $17,302
Government contract 973 685 2,985 1,603
Products and services 490 68 1,404 214
----------- ----------- ----------- -----------
Total revenues 1,463 753 4,389 19,119
----------- ----------- ----------- -----------
Operating expenses:
Cost of government
contract revenues 920 647 2,820 1,505
Cost of product sales 282 41 635 81
Research and
development expenses 1,527 1,140 4,082 3,932
Non-cash stock
compensation
amortization -
research and
development - (10) - 91
Marketing, general and
administrative
expenses 2,840 2,274 7,621 6,780
Non-cash stock
compensation
amortization -
marketing, general
and administrative (35) 157 (146) 634
Amortization of
patents 273 274 821 822
Legal settlement
charges (credits) (211) (90) (406) 776
Warrant charges
(credits) (163) - (163) -
----------- ----------- ----------- -----------
Total operating
expenses 5,433 4,433 15,264 14,621
----------- ----------- ----------- -----------
Operating income
(loss) (3,970) (3,680) (10,875) 4,498
----------- ----------- ----------- -----------
Other income
(expense):
Interest income 122 98 328 228
Other expense (100) - (202) -
----------- ----------- ----------- -----------
Total other income 22 98 126 228
----------- ----------- ----------- -----------
Income (loss) from
operations before
income taxes (3,948) (3,582) (10,749) 4,726
Benefit for income
taxes 65 34 133 102
----------- ----------- ----------- -----------
Division net income
(loss) $(3,883) $(3,548) $(10,616) $4,828
=========== =========== =========== ===========
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