Delaware
|
95-4405754
|
|
(State
or Other Jurisdiction of
Incorporation
or Organization)
|
(I.R.S.
Employer
Identification
No.)
|
|
500
Newport Center Drive, Newport
Beach, CA
|
92660
|
|
(Address
of Principal Executive
Offices)
|
(Zip
Code)
|
Large
accelerated filer ¨
|
|
Accelerated
filer þ
|
|
Non-accelerated
filer ¨
|
Part
I. Financial Information
|
||
Item
1.
|
Financial
Statements
|
|
Acacia
Research Corporation Consolidated Financial Statements
|
||
Consolidated
Balance Sheets as of March 31, 2007 and December
31, 2006 (Unaudited)
|
1
|
|
Consolidated
Statements of Operations and Comprehensive Income (Loss) for the
Three
Months Ended March 31, 2007 and 2006 (Unaudited)
|
2
|
|
Consolidated
Statements of Cash Flows for the Three Months Ended March
31, 2007 and 2006 (Unaudited)
|
3
|
|
Notes
to Consolidated Financial Statements (Unaudited)
|
4
|
|
*Acacia
Technologies Group Financial Statements
|
||
Balance
Sheets as of March 31, 2007 and December 31, 2006 (Unaudited)
|
17
|
|
Statements
of Operations for the Three Months Ended March
31, 2007 and 2006 (Unaudited)
|
18
|
|
Statements
of Cash Flows for the Three Months Ended March
31, 2007 and 2006 (Unaudited)
|
19
|
|
Notes
to Financial Statements (Unaudited)
|
20
|
|
*CombiMatrix
Group Financial Statements
|
||
Balance
Sheets as of March 31, 2007 and December 31, 2006
(Unaudited)
|
23
|
|
Statements
of Operations for the Three Months Ended March
31, 2007 and 2006 (Unaudited)
|
24
|
|
Statements
of Cash Flows for the Three Months Ended March
31, 2007 and 2006 (Unaudited)
|
25
|
|
Notes
to Financial Statements (Unaudited)
|
26
|
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results
of Operations
|
30
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
51
|
Item
4.
|
Controls
and Procedures
|
51
|
Part
II. Other Information
|
||
Item
1.
|
Legal
Proceedings
|
52
|
Item
1A.
|
Risk
Factors
|
52
|
Item
6.
|
Exhibits
|
53
|
Signatures
|
54
|
|
Exhibit
Index
|
55
|
ACACIA
RESEARCH CORPORATION
|
|||||||
CONSOLIDATED
BALANCE SHEETS
|
|||||||
(In
thousands, except share and per share information)
(Unaudited)
|
|||||||
March
31,
|
December
31,
|
||||||
2007
|
2006
|
||||||
ASSETS
|
|||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
44,016
|
$
|
40,044
|
|||
Short-term
investments
|
19,694
|
19,296
|
|||||
Accounts
receivable
|
2,838
|
874
|
|||||
Prepaid
expenses, inventory, and other assets
|
2,105
|
1,792
|
|||||
Total
current assets
|
68,653
|
62,006
|
|||||
Property
and equipment, net of accumulated depreciation
|
1,885
|
2,006
|
|||||
Patents
and licenses, net of accumulated amortization
|
24,311
|
25,807
|
|||||
Goodwill
|
17,039
|
17,039
|
|||||
Other
assets
|
2,479
|
2,746
|
|||||
$
|
114,367
|
$
|
109,604
|
||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable and accrued expenses
|
$
|
5,379
|
$
|
5,047
|
|||
Royalties
and legal fees payable
|
3,889
|
1,684
|
|||||
Current
portion of deferred revenues
|
736
|
725
|
|||||
Total
current liabilities
|
10,004
|
7,456
|
|||||
Deferred
revenues, net of current portion
|
1,014
|
1,076
|
|||||
Warrant
liability
|
4,355
|
6,732
|
|||||
Other
liabilities
|
81
|
31
|
|||||
Total
liabilities
|
15,454
|
15,295
|
|||||
Commitments
and contingencies (Note 7)
|
|||||||
Redeemable
stockholders' equity:
|
|||||||
Preferred
stock
|
|||||||
Acacia
Research Corporation, par value $0.001 per share; 10,000,000 shares
authorized;
|
|||||||
no
shares issued or outstanding
|
-
|
-
|
|||||
Common
stock
|
|||||||
Acacia
Research - Acacia Technologies stock, par value $0.001 per share;
100,000,000
|
|||||||
shares
authorized; 28,407,178 and 28,231,701 shares issued and outstanding
as
of
|
|||||||
March
31, 2007 and December 31, 2006, respectively
|
28
|
28
|
|||||
Acacia
Research - CombiMatrix stock, par value $0.001 per share; 100,000,000
shares
|
|||||||
authorized;
52,788,838 and 50,365,810 shares issued and outstanding as
of
|
|||||||
March
31, 2007 and December 31, 2006, respectively
|
53
|
50
|
|||||
Additional
paid-in capital
|
328,953
|
326,599
|
|||||
Accumulated
comprehensive income
|
3
|
2
|
|||||
Accumulated
deficit
|
(230,124
|
)
|
(232,370
|
)
|
|||
Total
stockholders' equity
|
98,913
|
94,309
|
|||||
$
|
114,367
|
$
|
109,604
|
ACACIA
RESEARCH CORPORATION
|
|||||||
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
|||||||
(In
thousands, except share and per share information)
(Unaudited)
|
|||||||
For
the Three Months Ended
|
|||||||
March
31, 2007
|
March
31, 2006
|
||||||
Revenues:
|
|||||||
License
fees
|
$
|
25,185
|
$
|
4,717
|
|||
Government
contracts
|
549
|
264
|
|||||
Products
|
440
|
924
|
|||||
Service
contracts
|
148
|
57
|
|||||
Total
revenues
|
26,322
|
5,962
|
|||||
Operating
expenses:
|
|||||||
Cost
of government contract revenues
|
534
|
250
|
|||||
Cost
of product sales
|
303
|
221
|
|||||
Research
and development expenses (including non-cash stock
compensation
|
|||||||
expense
of $258 in 2007 and $293 in 2006)
|
1,848
|
2,379
|
|||||
Marketing,
general and administrative expenses (including non-cash stock
|
|||||||
compensation
expense of $980 in 2007 and $1,450 in 2006)
|
6,851
|
7,449
|
|||||
Legal
expenses - patents
|
1,367
|
366
|
|||||
Inventor
royalties and contingent legal fees expense - patents
|
14,122
|
2,271
|
|||||
Amortization
of patents and royalties
|
1,634
|
1,667
|
|||||
Loss
from equity investment
|
272
|
239
|
|||||
Total
operating expenses
|
26,931
|
14,842
|
|||||
Operating
loss
|
(609
|
)
|
(8,880
|
)
|
|||
Other
income (expense):
|
|||||||
Interest
and investment income
|
557
|
540
|
|||||
Loss
on sale of interest in subsidiary
|
-
|
(84
|
)
|
||||
Warrant
gains (charges)
|
2,378
|
(1,740
|
)
|
||||
Total
other income (expense)
|
2,935
|
(1,284
|
)
|
||||
Income
(loss) from operations before income taxes
|
2,326
|
(10,164
|
)
|
||||
Benefit
(provision) for income taxes
|
(24
|
)
|
66
|
||||
Net
income (loss)
|
2,302
|
(10,098
|
)
|
||||
Unrealized
gains (losses) on short-term investments
|
1
|
(1
|
)
|
||||
Unrealized
gains on foreign currency translation
|
-
|
4
|
|||||
Sale
of interest in subsidiary's cumulative translation
adjustment
|
-
|
(61
|
)
|
||||
Comprehensive
income (loss)
|
$
|
2,303
|
$
|
(10,156
|
)
|
||
Earnings
(loss) per common share:
|
|||||||
Attributable
to the Acacia Technologies group:
|
|||||||
Net
income (loss)
|
$
|
4,399
|
$
|
(2,409
|
)
|
||
Basic
earnings (loss) per share
|
0.16
|
(0.09
|
)
|
||||
Diluted
earnings (loss) per share
|
0.14
|
(0.09
|
)
|
||||
Attributable
to the CombiMatrix group:
|
|||||||
Net
loss
|
$
|
(2,097
|
)
|
$
|
(7,689
|
)
|
|
Basic
and diluted loss per share
|
(0.04
|
)
|
(0.20
|
)
|
|||
Weighted
average shares:
|
|||||||
Acacia
Research - Acacia Technologies stock:
|
|||||||
Basic
|
27,841,286
|
27,400,857
|
|||||
Diluted
|
30,969,991
|
27,400,857
|
|||||
Acacia
Research - CombiMatrix stock:
|
|||||||
Basic
and diluted
|
52,516,220
|
38,992,402
|
|||||
ACACIA
RESEARCH CORPORATION
|
|||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|||||||
(In
thousands)
(Unaudited)
|
|||||||
For
the Three Months Ended
|
|||||||
March
31, 2007
|
March
31, 2006
|
||||||
Cash
flows from operating activities:
|
|||||||
Net
income (loss)
|
$
|
2,302
|
$
|
(10,098
|
)
|
||
Adjustments
to reconcile net income (loss) to net cash provided by (used in)
operating
|
|||||||
activities:
|
|||||||
Depreciation
and amortization
|
1,828
|
1,878
|
|||||
Non-cash
stock compensation
|
1,238
|
1,743
|
|||||
Deferred
taxes
|
-
|
(70
|
)
|
||||
Non-cash
warrant charge (credit)
|
(2,378
|
)
|
1,740
|
||||
Loss
from equity investment
|
272
|
239
|
|||||
Loss
on sale of interest in subsidiary
|
-
|
84
|
|||||
Other
|
17
|
124
|
|||||
Changes
in assets and liabilities:
|
|||||||
Accounts
receivable
|
(1,964
|
)
|
738
|
||||
Prepaid
expenses, inventory and other assets
|
(308
|
)
|
(497
|
)
|
|||
Accounts
payable and accrued expenses
|
283
|
1,127
|
|||||
Royalties
and legal fees payable
|
2,205
|
(1,643
|
)
|
||||
Deferred
revenues
|
(51
|
)
|
29
|
||||
Net
cash provided by (used in) operating activities from continuing
operations
|
3,444
|
(4,606
|
)
|
||||
Net
cash provided by operating activities from discontinued
operations
|
10
|
245
|
|||||
Net
cash provided by (used in) operating activities
|
3,454
|
(4,361
|
)
|
||||
Cash
flows from investing activities:
|
|||||||
Purchase
of property and equipment
|
(104
|
)
|
(175
|
)
|
|||
Purchase
of available-for-sale investments
|
(2,709
|
)
|
(5,028
|
)
|
|||
Sale
of available-for-sale investments
|
2,323
|
3,605
|
|||||
Business
acquisition
|
-
|
(16
|
)
|
||||
Purchase
of additional interests in equity method investee
|
-
|
(650
|
)
|
||||
Patent
acquisition costs
|
(110
|
)
|
(550
|
)
|
|||
Sale
of interest in subsidiary
|
-
|
(369
|
)
|
||||
Net
cash used in investing activities
|
(600
|
)
|
(3,183
|
)
|
|||
Cash
flows from financing activities:
|
|||||||
Proceeds
from the exercise of stock options and warrants
|
1,118
|
16
|
|||||
Net
cash provided by financing activities
|
1,118
|
16
|
|||||
Increase
(decrease) in cash and cash equivalents
|
3,972
|
(7,528
|
)
|
||||
|
|||||||
Cash
and cash equivalents, beginning
|
40,044
|
20,164
|
|||||
Cash
and cash equivalents, ending
|
$
|
44,016
|
$
|
12,636
|
· Acacia
Global Acquisition Corporation
· Acacia
Media Technologies Corporation
· Acacia
Patent Acquisition Corporation
· Acacia
Technologies Services Corporation
· AV
Technologies LLC
· Broadcast
Data Retrieval Corporation
· Broadcast
Innovation LLC
· Computer
Acceleration Corporation
· Computer
Cache Coherency Corporation
· Computer
Docking Station Corporation
· Contacts
Synchronization Corporation
· Credit
Card Fraud Control Corporation
· Database
Structures Inc.
· Data
Encryption Corporation
· Data
Innovation LLC
· Diagnostic
Systems Corporation
· Digital
Security Systems Corporation
· Disc
Link Corporation
· Email
Link Corporation
· Financial
Systems Innovation LLC
· Fluid
Dynamics Corporation
· High
Resolution Optics Corporation
|
· Information
Technology Innovation LLC
· InternetAd
LLC
· IP
Innovation LLC
· KY
Data Systems LLC
· Location
Based Services Corporation
· Micromesh
Technology Corporation
· Microprocessor
Enhancement Corporation
· Mobile
Traffic Systems Corporation
· New
Medium LLC
· Parking
Security Systems Corporation
· Peer
Communications Corporation
· Product
Activation Corporation
· Remote
Video Camera Corporation
· Resource
Scheduling Corporation
· Safety
Braking Corporation
· Screentone
Systems Corporation
· Soundview
Technologies Inc.
· Spreadsheet
Automation Corporation
· TechSearch
LLC
· Telematics
Corporation
· VData
LLC
|
· |
market
acceptance of our patented technologies and
services;
|
· |
business
activities and financial results of our
licensees;
|
· |
technological
advances that may make our patented technologies obsolete or less
competitive;
|
· |
increases
in operating costs, including legal services, engineering, research
and
personnel cots;
|
· |
the
availability and cost of capital;
and
|
· |
governmental
regulation that may restrict the Acacia Technologies group’s
business.
|
· |
market
acceptance of products and
services;
|
· |
technological
advances that may make the CombiMatrix group’s products and services
obsolete or less competitive;
|
· |
increases
in operating costs, including costs for supplies, personnel and
equipment;
|
· |
the
availability and cost of capital;
and
|
· |
governmental
regulation that may restrict the CombiMatrix group’s
business.
|
For
the Three Months Ended
|
|||||||
March
31, 2007
|
March
31, 2006
|
||||||
Acacia
Research - Acacia Technologies stock
|
|||||||
Basic
weighted average number of common shares outstanding
|
27,841,286
|
27,400,857
|
|||||
Effect
of dilutive stock options and restricted stock awards
|
3,128,705
|
-
|
|||||
Diluted
weighted average number of common shares outstanding
|
30,969,991
|
27,400,857
|
|||||
Outstanding
stock options and restricted stock excluded from the computation
of
|
|||||||
diluted
loss per share because the effect of inclusion would have been
anti-dilutive
|
1,525,158
|
6,745,919
|
|||||
Acacia
Research - CombiMatrix stock
|
|||||||
Basic
and diluted weighted average number of common shares
outstanding
|
52,516,220
|
38,992,402
|
|||||
All
outstanding stock options excluded from the computation of diluted
loss
per share
|
|||||||
because
the effect of inclusion would have been anti-dilutive
|
7,528,686
|
6,949,466
|
Acacia
Technologies Group
|
CombiMatrix
Group
|
Consolidated
|
|||||||||||||||||
March
31,
|
December
31,
|
March
31,
|
December
31,
|
March
31,
|
December
31,
|
||||||||||||||
2007
|
2006
|
2007
|
2006
|
2007
|
2006
|
||||||||||||||
Gross
carrying amount - patents and licenses
|
$
|
30,427
|
$
|
30,317
|
$
|
12,595
|
$
|
12,595
|
$
|
43,022
|
$
|
42,912
|
|||||||
Accumulated
amortization
|
(13,118
|
)
|
(11,802
|
)
|
(5,593
|
)
|
(5,303
|
)
|
(18,711
|
)
|
(17,105
|
)
|
|||||||
Patents
and licenses, net
|
$
|
17,309
|
$
|
18,515
|
$
|
7,002
|
$
|
7,292
|
$
|
24,311
|
$
|
25,807
|
AR-CombiMatrix
Warrants:
|
|||||||||||||
Number
of Warrants Outstanding
|
|||||||||||||
Date
of Issue
|
March
31,
2007
|
December
31,
2006
|
Exercise
Price
|
Expiration
|
|||||||||
(In
thousands)
|
|||||||||||||
December
2006
|
11,787
|
12,210
|
$
|
0.87
- $1.09
|
December
2011
|
||||||||
September
2005
|
1,596
|
1,596
|
$
|
2.40
|
September
2010
|
||||||||
May
2003
|
283
|
283
|
$
|
2.75
|
May
2008
|
||||||||
Total
|
13,666
|
14,089
|
March
31,
|
December
31,
|
||||||
AR-CombiMatrix
Warrants:
|
2007
|
2006
|
|||||
Risk
free interest rate
|
4.55%
|
|
4.71%
|
|
|||
Volatility
|
79%
|
|
80%
|
|
|||
Remaining
contractual term
|
4.5
years
|
4.7
years
|
At
March 31, 2007
|
At
December 31, 2006
|
||||||||||||||||||||||||
Acacia
|
Acacia
|
||||||||||||||||||||||||
Technologies
|
CombiMatrix
|
Technologies
|
CombiMatrix
|
||||||||||||||||||||||
Group
|
Group
|
Eliminations
|
Consolidated
|
Group
|
Group
|
Eliminations
|
Consolidated
|
||||||||||||||||||
ASSETS
|
|||||||||||||||||||||||||
Current
assets:
|
|||||||||||||||||||||||||
Cash
and cash equivalents
|
$
|
39,899
|
$
|
4,117
|
$
|
-
|
$
|
44,016
|
$
|
32,215
|
$
|
7,829
|
$
|
-
|
$
|
40,044
|
|||||||||
Short-term
investments
|
13,294
|
6,400
|
-
|
19,694
|
12,783
|
6,513
|
-
|
19,296
|
|||||||||||||||||
Accounts
receivable
|
2,057
|
781
|
-
|
2,838
|
269
|
605
|
-
|
874
|
|||||||||||||||||
Prepaid
expenses, inventory and other assets
|
1,355
|
750
|
-
|
2,105
|
1,187
|
605
|
-
|
1,792
|
|||||||||||||||||
Receivable
from CombiMatrix group
|
165
|
-
|
(165
|
)
|
-
|
380
|
-
|
(380
|
)
|
-
|
|||||||||||||||
Total
current assets
|
56,770
|
12,048
|
(165
|
)
|
68,653
|
46,834
|
15,552
|
(380
|
)
|
62,006
|
|||||||||||||||
Property
and equipment, net of accumulated depreciation
|
243
|
1,642
|
-
|
1,885
|
221
|
1,785
|
-
|
2,006
|
|||||||||||||||||
Patents
and licenses, net of accumulated amortization
|
17,309
|
7,002
|
-
|
24,311
|
18,515
|
7,292
|
-
|
25,807
|
|||||||||||||||||
Goodwill
|
121
|
16,918
|
-
|
17,039
|
121
|
16,918
|
-
|
17,039
|
|||||||||||||||||
Other
assets
|
82
|
2,397
|
-
|
2,479
|
79
|
2,667
|
-
|
2,746
|
|||||||||||||||||
$
|
74,525
|
$
|
40,007
|
$
|
(165
|
)
|
$
|
114,367
|
$
|
65,770
|
$
|
44,214
|
$
|
(380
|
)
|
$
|
109,604
|
||||||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||||||||||||||||||||
Current
liabilities:
|
|||||||||||||||||||||||||
Accounts
payable and accrued expenses
|
$
|
2,834
|
$
|
2,545
|
$
|
-
|
$
|
5,379
|
$
|
2,201
|
$
|
2,846
|
$
|
-
|
$
|
5,047
|
|||||||||
Royalties
and legal fees payable
|
3,889
|
-
|
-
|
3,889
|
1,684
|
-
|
-
|
1,684
|
|||||||||||||||||
Current
portion of deferred revenues
|
400
|
336
|
-
|
736
|
360
|
365
|
-
|
725
|
|||||||||||||||||
Payable
to Acacia Technologies group
|
-
|
165
|
(165
|
)
|
-
|
-
|
380
|
(380
|
)
|
-
|
|||||||||||||||
Total
current liabilities
|
7,123
|
3,046
|
(165
|
)
|
10,004
|
4,245
|
3,591
|
(380
|
)
|
7,456
|
|||||||||||||||
Deferred
revenues, net of current portion
|
-
|
1,014
|
-
|
1,014
|
-
|
1,076
|
-
|
1,076
|
|||||||||||||||||
Warrant
liability
|
-
|
4,355
|
-
|
4,355
|
-
|
6,732
|
-
|
6,732
|
|||||||||||||||||
Other
liabilities
|
81
|
-
|
-
|
81
|
31
|
-
|
-
|
31
|
|||||||||||||||||
Total
liabilities
|
7,204
|
8,415
|
(165
|
)
|
15,454
|
4,276
|
11,399
|
(380
|
)
|
15,295
|
|||||||||||||||
Redeemable
stockholders' equity:
|
|||||||||||||||||||||||||
AR
- Acacia Technologies stock
|
67,321
|
-
|
-
|
67,321
|
61,494
|
-
|
-
|
61,494
|
|||||||||||||||||
AR
- CombiMatrix stock
|
-
|
31,592
|
-
|
31,592
|
-
|
32,815
|
-
|
32,815
|
|||||||||||||||||
Total
stockholders' equity
|
67,321
|
31,592
|
-
|
98,913
|
61,494
|
32,815
|
-
|
94,309
|
|||||||||||||||||
$
|
74,525
|
$
|
40,007
|
$
|
(165
|
)
|
$
|
114,367
|
$
|
65,770
|
$
|
44,214
|
$
|
(380
|
)
|
$
|
109,604
|
For
the Three Months Ended March 31, 2007
|
For
the Three Months Ended March 31, 2006
|
||||||||||||||||||
Acacia
|
Acacia
|
||||||||||||||||||
Technologies
|
CombiMatrix
|
Technologies
|
CombiMatrix
|
||||||||||||||||
Group
|
Group
|
Consolidated
|
Group
|
Group
|
Consolidated
|
||||||||||||||
Revenues:
|
|||||||||||||||||||
Government
contracts
|
$
|
-
|
$
|
549
|
$
|
549
|
$
|
-
|
$
|
264
|
$
|
264
|
|||||||
License
fees
|
25,185
|
-
|
25,185
|
4,717
|
-
|
4,717
|
|||||||||||||
Products
and service contracts
|
-
|
588
|
588
|
-
|
981
|
981
|
|||||||||||||
Total
revenues
|
25,185
|
1,137
|
26,322
|
4,717
|
1,245
|
5,962
|
|||||||||||||
Operating
expenses:
|
|||||||||||||||||||
Cost
of government contract revenues
|
-
|
534
|
534
|
-
|
250
|
250
|
|||||||||||||
Cost
of product sales
|
-
|
303
|
303
|
-
|
221
|
221
|
|||||||||||||
Research
and development expenses (including non-cash stock compensation
expense)
|
-
|
1,848
|
1,848
|
-
|
2,379
|
2,379
|
|||||||||||||
Marketing,
general and administrative expenses (including non-cash stock compensation
expense)
|
4,364
|
2,487
|
6,851
|
3,537
|
3,912
|
7,449
|
|||||||||||||
Legal
expenses - patents
|
1,367
|
-
|
1,367
|
366
|
-
|
366
|
|||||||||||||
Inventor
royalties and contingent legal fees expense -
patents
|
14,122
|
-
|
14,122
|
2,271
|
-
|
2,271
|
|||||||||||||
Amortization
of patents
|
1,316
|
318
|
1,634
|
1,343
|
324
|
1,667
|
|||||||||||||
Loss
from equity investment
|
-
|
272
|
272
|
-
|
239
|
239
|
|||||||||||||
Total
operating expenses
|
21,169
|
5,762
|
26,931
|
7,517
|
7,325
|
14,842
|
|||||||||||||
Operating
income (loss)
|
4,016
|
(4,625
|
)
|
(609
|
)
|
(2,800
|
)
|
(6,080
|
)
|
(8,880
|
)
|
||||||||
Other
income (expense):
|
|||||||||||||||||||
Interest
and investment income
|
407
|
150
|
557
|
359
|
181
|
540
|
|||||||||||||
Loss
on sale of interest in subsidiary
|
-
|
-
|
-
|
-
|
(84
|
)
|
(84
|
)
|
|||||||||||
Warrant
gains (charges)
|
-
|
2,378
|
2,378
|
-
|
(1,740
|
)
|
(1,740
|
)
|
|||||||||||
Total
other income (expense)
|
407
|
2,528
|
2,935
|
359
|
(1,643
|
)
|
(1,284
|
)
|
|||||||||||
Income
(loss) from continuing operations before income taxes
|
4,423
|
(2,097
|
)
|
2,326
|
(2,441
|
)
|
(7,723
|
)
|
(10,164
|
)
|
|||||||||
Provision
(benefit) for income taxes
|
(24
|
)
|
-
|
(24
|
)
|
32
|
34
|
66
|
|||||||||||
Net
income (loss)
|
$
|
4,399
|
$
|
(2,097
|
)
|
$
|
2,302
|
$
|
(2,409
|
)
|
$
|
(7,689
|
)
|
$
|
(10,098
|
)
|
For
The Three Months Ended March 31, 2007
|
For
The Three Months Ended March 31, 2006
|
||||||||||||||||||||||||
Acacia
|
Acacia
|
||||||||||||||||||||||||
Technologies
|
CombiMatrix
|
Technologies
|
CombiMatrix
|
||||||||||||||||||||||
Group
|
Group
|
Eliminations
|
Consolidated
|
Group
|
Group
|
Eliminations
|
Consolidated
|
||||||||||||||||||
Cash
flows from operating activities:
|
|||||||||||||||||||||||||
Net
income (loss)
|
$
|
4,399
|
$
|
(2,097
|
)
|
$
|
-
|
$
|
2,302
|
$
|
(2,409
|
)
|
$
|
(7,689
|
)
|
$
|
-
|
$
|
(10,098
|
)
|
|||||
Adjustments
to reconcile net income (loss) to net cash
provided
by (used in) operating
activities:
|
|||||||||||||||||||||||||
Depreciation
and amortization
|
1,344
|
484
|
-
|
1,828
|
1,360
|
518
|
-
|
1,878
|
|||||||||||||||||
Non-cash
stock compensation
|
763
|
475
|
-
|
1,238
|
1,048
|
695
|
-
|
1,743
|
|||||||||||||||||
Deferred
taxes
|
- |
-
|
-
|
-
|
(36
|
)
|
(34
|
)
|
-
|
(70
|
)
|
||||||||||||||
Non-cash
warrant charges (gains)
|
-
|
(2,378
|
)
|
-
|
(2,378
|
)
|
-
|
1,740
|
-
|
1,740
|
|||||||||||||||
Loss
from equity investment
|
-
|
272
|
-
|
272
|
-
|
239
|
-
|
239
|
|||||||||||||||||
Loss
on sale of interest in subsidiary
|
-
|
-
|
-
|
-
|
-
|
84
|
-
|
84
|
|||||||||||||||||
Other
|
(10
|
)
|
27
|
-
|
17
|
-
|
124
|
-
|
124
|
||||||||||||||||
Changes
in assets and liabilities:
|
|||||||||||||||||||||||||
Accounts
receivable
|
(1,788
|
)
|
(176
|
)
|
-
|
(1,964
|
)
|
735
|
3
|
-
|
738
|
||||||||||||||
Prepaid
expenses, inventory and other assets
|
44
|
(137
|
)
|
(215
|
)
|
(308
|
)
|
(456
|
)
|
(41
|
)
|
-
|
(497
|
)
|
|||||||||||
Accounts
payable and accrued expenses
|
617
|
(549
|
)
|
215
|
283
|
507
|
620
|
-
|
1,127
|
||||||||||||||||
Royalties
and legal fees payable
|
2,205
|
-
|
-
|
2,205
|
(1,643
|
)
|
-
|
-
|
(1,643
|
)
|
|||||||||||||||
Deferred
revenues
|
40
|
(91
|
)
|
-
|
(51
|
)
|
(39
|
)
|
68
|
-
|
29
|
||||||||||||||
Net
cash provided by (used in) operating activities
from
continuing operations
|
7,614
|
(4,170
|
)
|
-
|
3,444
|
(933
|
)
|
(3,673
|
)
|
-
|
(4,606
|
)
|
|||||||||||||
Net
cash provided by operating activities from
discontinued
operations
|
10
|
-
|
-
|
10
|
245
|
-
|
-
|
245
|
|||||||||||||||||
Net
cash provided by (used in) operating activities
|
7,624
|
(4,170
|
)
|
-
|
3,454
|
(688
|
)
|
(3,673
|
)
|
-
|
(4,361
|
)
|
|||||||||||||
Cash
flows from investing activities:
|
|||||||||||||||||||||||||
Purchase
of property and equipment
|
(51
|
)
|
(53
|
)
|
-
|
(104
|
)
|
(14
|
)
|
(161
|
)
|
-
|
(175
|
)
|
|||||||||||
Purchase
of available-for-sale investments
|
(1,741
|
)
|
(968
|
)
|
-
|
(2,709
|
)
|
(4,007
|
)
|
(1,021
|
)
|
-
|
(5,028
|
)
|
|||||||||||
Sale
of available-for-sale investments
|
1,234
|
1,089
|
-
|
2,323
|
-
|
3,605
|
-
|
3,605
|
|||||||||||||||||
Business
acquisition
|
-
|
-
|
-
|
-
|
(16
|
)
|
-
|
-
|
(16
|
)
|
|||||||||||||||
Purchase
of additional interests in equity method
investee
|
-
|
-
|
-
|
-
|
-
|
(650
|
)
|
-
|
(650
|
)
|
|||||||||||||||
Patent
acquisition costs
|
(110
|
)
|
-
|
-
|
(110
|
)
|
(550
|
)
|
-
|
-
|
(550
|
)
|
|||||||||||||
Sale
of interest in subsidiary
|
-
|
-
|
-
|
-
|
-
|
(369
|
)
|
-
|
(369
|
)
|
|||||||||||||||
Net
cash provided by (used in) investing activities
|
(668
|
)
|
68
|
-
|
(600
|
)
|
(4,587
|
)
|
1,404
|
-
|
(3,183
|
)
|
|||||||||||||
Cash
flows from financing activities:
|
|||||||||||||||||||||||||
Net
cash attributed to the Acacia Technologies group
|
728
|
-
|
-
|
728
|
(30
|
)
|
-
|
-
|
(30
|
)
|
|||||||||||||||
Net
cash attributed to the CombiMatrix group
|
-
|
390
|
-
|
390
|
-
|
46
|
-
|
46
|
|||||||||||||||||
Net
cash provided by (used in) financing activities
|
728
|
390
|
-
|
1,118
|
(30
|
)
|
46
|
-
|
16
|
||||||||||||||||
|
|||||||||||||||||||||||||
Increase
(decrease) in cash and cash equivalents
|
7,684
|
(3,712
|
)
|
-
|
3,972
|
(5,305
|
)
|
(2,223
|
)
|
-
|
(7,528
|
)
|
|||||||||||||
Cash
and cash equivalents, beginning
|
32,215
|
7,829
|
-
|
40,044
|
14,498
|
5,666
|
-
|
20,164
|
|||||||||||||||||
Cash
and cash equivalents, ending
|
$
|
39,899
|
$
|
4,117
|
$
|
-
|
$
|
44,016
|
$
|
9,193
|
$
|
3,443
|
$
|
-
|
$
|
12,636
|
|||||||||
March
31,
|
December
31,
|
||||||
2007
|
2006
|
||||||
ASSETS
|
|||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
39,899
|
$
|
32,215
|
|||
Short-term
investments
|
13,294
|
12,783
|
|||||
Accounts
receivable
|
2,057
|
269
|
|||||
Prepaid
expenses and other assets
|
1,355
|
1,187
|
|||||
Receivable
from CombiMatrix group
|
165
|
380
|
|||||
Total
current assets
|
56,770
|
46,834
|
|||||
Property
and equipment, net of accumulated depreciation
|
243
|
221
|
|||||
Patents,
net of accumulated amortization
|
17,309
|
18,515
|
|||||
Goodwill
|
121
|
121
|
|||||
Other
assets
|
82
|
79
|
|||||
$
|
74,525
|
$
|
65,770
|
||||
LIABILITIES
AND ALLOCATED NET WORTH
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable and accrued expenses
|
$
|
2,834
|
$
|
2,201
|
|||
Royalties
and legal fees payable
|
3,889
|
1,684
|
|||||
Current
portion of deferred revenues
|
400
|
360
|
|||||
Total
current liabilities
|
7,123
|
4,245
|
|||||
Other
liabilities
|
81
|
31
|
|||||
Total
liabilities
|
7,204
|
4,276
|
|||||
Commitments
and contingencies (Note 5)
|
|||||||
Allocated
net worth:
|
|||||||
Funds
allocated by Acacia Research Corporation
|
150,758
|
149,274
|
|||||
Accumulated
net losses
|
(83,437
|
)
|
(87,780
|
)
|
|||
Total
allocated net worth
|
67,321
|
61,494
|
|||||
$
|
74,525
|
$
|
65,770
|
For
the Three Months Ended
|
|||||||
March
31, 2007
|
March
31, 2006
|
||||||
Revenues:
|
|||||||
License
fees
|
$
|
25,185
|
$
|
4,717
|
|||
Total
revenues
|
25,185
|
4,717
|
|||||
Operating
expenses:
|
|||||||
Marketing,
general and administrative expenses (including non-cash stock
|
|||||||
compensation
expense of $763 in 2007 and $1,048 in 2006)
|
4,364
|
3,537
|
|||||
Legal
expenses - patents
|
1,367
|
366
|
|||||
Inventor
royalties and contingent legal fees expense - patents
|
14,122
|
2,271
|
|||||
Amortization
of patents
|
1,316
|
1,343
|
|||||
Total
operating expenses
|
21,169
|
7,517
|
|||||
Operating
income (loss )
|
4,016
|
(2,800
|
)
|
||||
Other
income:
|
|||||||
Interest
and investment income
|
407
|
359
|
|||||
Total
other income
|
407
|
359
|
|||||
Income
(loss) from continuing operations before income taxes
|
4,423
|
(2,441
|
)
|
||||
(Provision)
benefit for income taxes
|
(24
|
)
|
32
|
||||
Division
net income (loss)
|
$
|
4,399
|
$
|
(2,409
|
)
|
For
the Three Months Ended
|
|||||||
March
31, 2007
|
March
31, 2006
|
||||||
Cash
flows from operating activities:
|
|||||||
Division
net income (loss) from continuing operations
|
$
|
4,399
|
$
|
(2,409
|
)
|
||
Adjustments
to reconcile division net income (loss) from continuing operations
|
|||||||
to
net cash provided by (used in) operating activities:
|
|||||||
Depreciation
and amortization
|
1,344
|
1,360
|
|||||
Non-cash
stock compensation
|
763
|
1,048
|
|||||
Deferred
taxes
|
-
|
(36
|
)
|
||||
Other
|
(10
|
)
|
-
|
||||
Changes
in assets and liabilities:
|
|||||||
Accounts
receivable
|
(1,788
|
)
|
735
|
||||
Prepaid
expenses and other assets
|
44
|
(456
|
)
|
||||
Accounts
payable and accrued expenses
|
617
|
507
|
|||||
Royalties
and legal fees payable
|
2,205
|
(1,643
|
)
|
||||
Deferred
revenues
|
40
|
(39
|
)
|
||||
Net
cash provided by (used in) operating activities from continuing
operations
|
7,614
|
(933
|
)
|
||||
Net
cash provided by operating activities from discontinued
operations
|
10
|
245
|
|||||
Net
cash provided by (used in) operating activities
|
7,624
|
(688
|
)
|
||||
Cash
flows from investing activities:
|
|||||||
Purchase
of property and equipment
|
(51
|
)
|
(14
|
)
|
|||
Purchase
of available-for-sale investments
|
(1,741
|
)
|
(4,007
|
)
|
|||
Sale
of available-for-sale investments
|
1,234
|
-
|
|||||
Patent
acquisition costs
|
(110
|
)
|
(550
|
)
|
|||
Business
acquisition costs
|
-
|
(16
|
)
|
||||
Net
cash used in investing activities
|
(668
|
)
|
(4,587
|
)
|
|||
Cash
flows from financing activities:
|
|||||||
Net
cash flows attributed to the Acacia Technologies group
|
728
|
(30
|
)
|
||||
Increase
(decrease) in cash and cash equivalents
|
7,684
|
(5,305
|
)
|
||||
Cash
and cash equivalents, beginning
|
32,215
|
14,498
|
|||||
Cash
and cash equivalents, ending
|
$
|
39,899
|
$
|
9,193
|
|||
· Acacia
Global Acquisition Corporation
· Acacia
Media Technologies Corporation
· Acacia
Patent Acquisition Corporation
· Acacia
Technologies Services Corporation
· AV
Technologies LLC
· Broadcast
Data Retrieval Corporation
· Broadcast
Innovation LLC
· Computer
Acceleration Corporation
· Computer
Cache Coherency Corporation
· Computer
Docking Station Corporation
· Contacts
Synchronization Corporation
· Credit
Card Fraud Control Corporation
· Database
Structures Inc.
· Data
Encryption Corporation
· Data
Innovation LLC
· Diagnostic
Systems Corporation
· Digital
Security Systems Corporation
· Disc
Link Corporation
· Email
Link Corporation
· Financial
Systems Innovation LLC
· Fluid
Dynamics Corporation
· High
Resolution Optics Corporation
|
· Information
Technology Innovation LLC
· InternetAd
LLC
· IP
Innovation LLC
· KY
Data Systems LLC
· Location
Based Services Corporation
· Micromesh
Technology Corporation
· Microprocessor
Enhancement Corporation
· Mobile
Traffic Systems Corporation
· New
Medium LLC
· Parking
Security Systems Corporation
· Peer
Communications Corporation
· Product
Activation Corporation
· Remote
Video Camera Corporation
· Resource
Scheduling Corporation
· Safety
Braking Corporation
· Screentone
Systems Corporation
· Soundview
Technologies Inc.
· Spreadsheet
Automation Corporation
· TechSearch
LLC
· Telematics
Corporation
· VData
LLC
|
March
31,
|
December
31,
|
||||||
2007
|
2006
|
||||||
ASSETS
|
|||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
4,117
|
$
|
7,829
|
|||
Available-for-sale
investments
|
6,400
|
6,513
|
|||||
Accounts
receivable
|
781
|
605
|
|||||
Inventory,
prepaid expenses and other assets
|
750
|
605
|
|||||
Total
current assets
|
12,048
|
15,552
|
|||||
|
|||||||
Property
and equipment, net of accumulated depreciation
|
1,642
|
1,785
|
|||||
Patents
and licenses, net of accumulated amortization
|
7,002
|
7,292
|
|||||
Goodwill
|
16,918
|
16,918
|
|||||
Other
assets
|
2,397
|
2,667
|
|||||
|
$
|
40,007
|
$
|
44,214
|
|||
|
|||||||
LIABILITIES
AND ALLOCATED NET WORTH
|
|||||||
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable and accrued expenses
|
$
|
2,545
|
$
|
2,846
|
|||
Current
portion of deferred revenues
|
336
|
365
|
|||||
Payable
to Acacia Technologies group
|
165
|
380
|
|||||
Total
current liabilities
|
3,046
|
3,591
|
|||||
|
|||||||
Deferred
revenues, net of current portion
|
1,014
|
1,076
|
|||||
Warrant
liability
|
4,355
|
6,732
|
|||||
Total
liabilities
|
8,415
|
11,399
|
|||||
Commitments
and contingencies (Note 5)
|
|||||||
Allocated
net worth:
|
|||||||
Funds
allocated by Acacia Research Corporation
|
178,278
|
177,404
|
|||||
Accumulated
net losses
|
(146,686
|
)
|
(144,589
|
)
|
|||
Total
allocated net worth
|
31,592
|
32,815
|
|||||
$
|
40,007
|
$
|
44,214
|
For
the Three Months Ended
|
|||||||
March
31, 2007
|
March
31, 2006
|
||||||
Revenues:
|
|||||||
Government
contracts
|
$
|
549
|
$
|
264
|
|||
Products
|
440
|
924
|
|||||
Service
contracts
|
148
|
57
|
|||||
Total
revenues
|
1,137
|
1,245
|
|||||
Operating
expenses:
|
|||||||
Cost
of government contract revenues
|
534
|
250
|
|||||
Cost
of product sales
|
303
|
221
|
|||||
Research
and development expenses (including non-cash stock
compensation
|
|||||||
expense
of $258 in 2007 and $293 in 2006)
|
1,848
|
2,379
|
|||||
Marketing,
general and administrative expenses (including non-cash stock
|
|||||||
compensation
expense of $217 in 2007 and $402 in 2006)
|
2,487
|
3,912
|
|||||
Amortization
of patents and royalties
|
318
|
324
|
|||||
Loss
from equity investment
|
272
|
239
|
|||||
Total
operating expenses
|
5,762
|
7,325
|
|||||
Operating
loss
|
(4,625
|
)
|
(6,080
|
)
|
|||
Other
income (expense):
|
|||||||
Interest
and investment income
|
150
|
181
|
|||||
Loss
on sale of interest in subsidiary
|
-
|
(84
|
)
|
||||
Warrant
gains (charges)
|
2,378
|
(1,740
|
)
|
||||
Total
other income (expense)
|
2,528
|
(1,643
|
)
|
||||
Loss
from operations before income taxes
|
(2,097
|
)
|
(7,723
|
)
|
|||
Benefit
for income taxes
|
-
|
34
|
|||||
Division
net loss
|
$
|
(2,097
|
)
|
$
|
(7,689
|
)
|
For
the Three Months Ended
|
|||||||
March
31, 2007
|
March
31, 2006
|
||||||
Cash
flows from operating activities:
|
|||||||
Division
net loss from operations
|
$
|
(2,097
|
)
|
$
|
(7,689
|
)
|
|
Adjustments
to reconcile division net loss from operations
|
|||||||
to
net cash used in operating activities:
|
|||||||
Depreciation
and amortization
|
484
|
518
|
|||||
Non-cash
stock compensation
|
475
|
695
|
|||||
Deferred
taxes
|
-
|
(34
|
)
|
||||
Non-cash
warrant charges (gains)
|
(2,378
|
)
|
1,740
|
||||
Loss
from equity investment
|
272
|
239
|
|||||
Loss
on sale of interest in subsidiary
|
-
|
84
|
|||||
Other
|
27
|
124
|
|||||
Changes
in assets and liabilities:
|
|||||||
Accounts
receivable
|
(176
|
)
|
3
|
||||
Inventory,
prepaid expenses and other assets
|
(137
|
)
|
(41
|
)
|
|||
Accounts
payable and accrued expenses
|
(549
|
)
|
620
|
||||
Deferred
revenues
|
(91
|
)
|
68
|
||||
Net
cash used in operating activities
|
(4,170
|
)
|
(3,673
|
)
|
|||
Cash
flows from investing activities:
|
|||||||
Purchase
of property and equipment
|
(53
|
)
|
(161
|
)
|
|||
Purchase
of available-for-sale investments
|
(968
|
)
|
(1,021
|
)
|
|||
Sale
of available-for-sale investments
|
1,089
|
3,605
|
|||||
Purchase
of additional interests in equity method investee
|
-
|
(650
|
)
|
||||
Sale
of interest in subsidiary
|
-
|
(369
|
)
|
||||
Net
cash provided by investing activities
|
68
|
1,404
|
|||||
Cash
flows from financing activities:
|
|||||||
Net
cash flows attributed to the CombiMatrix group
|
390
|
46
|
|||||
Decrease
in cash and cash equivalents
|
(3,712
|
)
|
(2,223
|
)
|
|||
Cash
and cash equivalents, beginning
|
7,829
|
5,666
|
|||||
Cash
and cash equivalents, ending
|
$
|
4,117
|
$
|
3,443
|
· |
Wireless
Digital Messaging.
This patented technology generally relates to transmitting digital
content
to wireless devices, such as cell phones, PDAs, MP3 players and laptop
computers, including wireless systems that deliver digital content,
such
as images, graphics, photographs, image-embedded e-mail and facsimiles.
Among the primary applications for this technology are mobile phone
picture messaging and email/fax
delivery.
|
· |
Pointing
Device.
This patented technology generally relates to hand held devices that
include pointing devices, such as a joy stick, capable of carrying
out
multiple user selectable functions.
|
· |
Storage
Technology.
This patented technology generally relates to diverse aspects of
storage
devices and related technology. The patented technology generally
covers
data transfer, fault tolerance, caching, data integrity and error
correction.
|
· |
Vehicle
Anti-Theft Parking Systems.
This patented technology generally relates to methods of automatically
identifying a vehicle through a characteristic, such as a license
plate
number, in order to deter vehicle theft. This technology is applicable
to
airports, hotels, shopping centers and other parking areas that employ
access control.
|
· |
Encrypted
Media & Playback.
This patented technology generally relates to encryption/decryption
techniques used in media and players. It covers the devices and methods
used to play back movies and other content from encrypted media.
This
technology is applicable to media such as high definition discs and
stand-alone players, as well as game consoles and PC's with high
definition drives.
|
· |
On
February 1, 2007, the CombiMatrix group executed an amendment to
its lease
for office and laboratory space in Mukilteo, Washington that reduced
both
its amount of leased space as well as the lease rate. Overall, the
CombiMatrix group reduced its monthly lease expense and related charges
from approximately $200,000 per month to approximately $55,000 per
month.
|
· |
On
March 7, 2007, the CombiMatrix group announced that its diagnostics
subsidiary, CombiMatrix Molecular Diagnostics, Inc. (“CMDX”) entered into
a relationship with the Centre for Applied Genomics in Toronto, Canada.
This relationship will provide CMDX access to published markers in
the
area of autism and other diseases in upcoming versions of CMDX’s
Constitutional Genetic Array Test.
|
· |
On
March 13, 2007, the CombiMatrix group announced that CMDX had launched
its
bacterial artificial chromosome (“BAC”) array comparative genomic
hybridization (“CGH”) Technical Only Program for reference laboratories
and other clients, thus providing enhanced flexibility in its array-based
diagnostic offerings to its customers.
|
· |
On
March 14, 2007, the CombiMatrix group announced that CMDX had completed
the clinical validation of the first of its HemeScanTM
suite of BAC array CGH-based diagnostic tests. These tests are designed
to
detect prognostic markers in chronic lymphocytic leukemia and are
now
available to the clinical community through both routine clinical
sample
processing as well as through CMDX’s innovative Technical Only Program for
reference laboratories. This array is the first clinically validated
cancer diagnostic based on BAC array CGH.
|
· |
On
March 16, 2007, the CombiMatrix group announced that it had been
awarded a
new $869,000 contract by the Air Force Research Laboratory to advance
its
Influenza Genotyping System. The field-deployable system is based
on the
group’s CustomArrayTM
microarray platform and ElectraSenseTM
detection technologies.
|
· |
On
March 20, 2007, the CombiMatrix group announced that CMDX had completed
the clinical validation of and had launched the second version of
its CGH
array diagnostic test (the CA850). This test utilizes CMDX’s new BAC
array, which includes over 200 new, validated probes obtained by
CMDX’s
relationship with the Centre for Applied Genetics in Toronto, Canada.
The
CA850 can identify over fifty genetic disorders and has now been
clinically validated for use in both postnatal and prenatal analyses.
|
· |
New
Medium Technologies, LLC and AV Technologies, LLC v. Barco NV, Miranda
Technologies, LG Philips LCD, Toshiba Corporation, Toshiba America
Consumer Products, L.L.C., and Syntax-Brillian Corporation. United
States
District Court for the Northern District of Illinois. Filed 9/29/05.
Case
No. 1:05-cv-05620.
|
· |
Computer
Cache Coherency Corporation v. VIA Technologies, Inc., Via Technologies,
Inc. (USA) and Intel Corporation. United States District Court for
the
Northern District of California. Filed 12/2/04. Case No.
5:05-cv-01668.
|
· |
Financial
Systems Innovation LLC and Paul N. Ware v. The Kroger Company. United
States District Court for the Northern District of Georgia. Filed
3/3/04.
Case No. 4:04-cv-00065.
|
· |
Financial
Systems Innovation LLC and Paul N. Ware v. Williams-Sonoma, Inc.,
and
Costco Wholesale Corporation. United States District Court for the
Northern District of Texas. Filed 6/30/04. Case No.
4:04-cv-00479.
|
· |
Financial
Systems Innovation LLC and Paul N. Ware v. Circuit City Stores, Inc.,
Officemax Incorporated, Staples, Inc., Cracker Barrel Old Country
Store,
Inc., Fry’s Electronics, Inc., and Rite Aid Corporation. United States
District Court for the Northern District of Georgia. Filed 7/19/05.
Case
No. 4:05-cv-00156.
|
· |
Reinalt-Thomas
Corporation, dba Discount Tire Corporation, v. Acacia Research
Corporation, Paul N. Ware and Financial Systems Innovation LLC. United
States District Court for the District of Arizona. Filed 10/27/05.
Case
No. 2:05-cv-03459.
|
· |
Financial
Systems Innovation LLC and Paul Ware v. Discount Tire Company of
Georgia,
Inc. and Reinalt-Thomas Corporation, dba Discount Tire Company. United
States District Court for the Northern District of Georgia. Filed
11/21/05. Case No. 4:05-cv-00252.
|
· |
Lone
Star Steakhouse and Saloon, Inc. v. Acacia Technologies group and
Financial Systems Innovation LLC. United States District Court for
the
District of Kansas. Filed 8/5/05. Case No.
6:05-cv-01249.
|
· |
Computer
Acceleration Corporation vs. Microsoft Corporation. United States
District
Court for the Eastern District of Texas. Filed 7/6/06. Case No.
9:06-cv-0140.
|
· |
Data
Encryption Corporation v. Microsoft Corporation and Dell Computer
Corporation. United States District Court for the Central District
of
California. On appeal to the U.S. Court of Appeals for the Federal
Court.
Lower Court Case No. 2:05-cv-05531.
|
· |
Acacia
Media Technologies Corporation v. Comcast Cable Communications, LLC,
Charter Communications, Inc., The DirectTV Group, Inc., Echostar
Communications Corporation, Cox Communications, Inc., Hospitality
Network,
Inc. (a wholly owned subsidiary of Cox that supplies hotel on-demand
TV
services), Mediacom, LLC, Armstrong Group, Arvig Communication Systems,
Block Communications, Inc., Cable America Corporation, Cable One,
Inc.,
Cannon Valley Communications, Inc., East Cleveland Cable TV and
Communications, LLC, Loretel Cablevision, Massillon Cable TV, Inc.,
Mid-Continent Media, Inc., NPG Cable, Inc., Savage Communications,
Inc.,
Sjoberg's Cablevision, Inc., US Cable Holdings LP, and Wide Open
West,
LLC, Time Warner Cable, Cablevision Systems Corporation, Insight
Communications Company, Cebridge Communications and Bresnan
Communications
|
· |
Acacia
Media Technologies Corporation v. New Destiny Internet Group, Inc.,
Audio
Communications Inc., VS Media Inc., Ademia Multimedia, LLC, International
Web Innovations, Inc., Offendale Commercial BV, Ltd., Adult Entertainment
Broadcast Network, Cybertrend, Inc., Lightspeed Media Corporation,
Adult
Revenue Services, Innovative Ideas International, AskCS.com, Game
Link,
Inc., Cybernet Ventures, Inc., ACMP, LLC, Global AVS, Inc. d/b/a
DrewNet,
and National A-1 Advertising.
|
· |
Contacts
Synchronization Corporation v. Alltel Corp., AT&T Mobility LLC f/k/a
Cingular Wireless LLC, Sprint Nextel Corp., T-Mobile USA, Inc., and
Cellco
Partnership d/b/a Verizon Wireless. United States District Court
for the
Western District of Wisconsin. Filed 5/2/07. Case No.
07-C-0250-C.
|
· |
Lexmark
International, Inc. v. Acacia Research Corporation, dba Acacia
Technologies Group and Acacia Patent Acquisition Corp. United States
District Court for the Eastern District of Kentucky. Filed 2/13/07.
Case
No. 5:07-cv-00047.
|
· |
Theodore
Whitney and High Resolution Optics Corporation v. The United States.
United States Court of Federal Claims. Filed 8/23/06. Case No.
1:06-cv-00601.
|
· |
IP
Innovation LLC and Technology Licensing Corporation v. Apple, Inc.
United
States District Court for the Eastern District of Texas. Filed 4/18/07.
Case No. 2:07-cv-00146.
|
· |
Diagnostic
Systems Corporation v. Symantec Corporation; CA, Inc., F-Secure,
Inc.,
NetIQ Corporation, Quest Software Inc., NetScout Systems, Inc., and
Motive, Inc. United States District Court for the Central District
of
California. Filed 12/14/06. Case No.
806-cv-01211.
|
· |
Broadcast
Innovation, LLC and IO Research, Ltd. v. Charter Communications,
Inc.
United States District Court for the District of Colorado. Case No.
1:03-cv-02223. On appeal to the U.S. Court of Appeals for the Federal
Court from 9/28/04 to 11/21/05. Remanded to the U. S. District Court
for
further proceedings on 11/21/05.
|
· |
Broadcast
Innovation, LLC v. Echostar Communications Corporation. United States
District Court for the District of Colorado. Filed 11/9/01. Case
No.
1:01-cv-02201.
|
· |
Computer
Docking Station Corporation v. Dell, Inc., Gateway, Inc., Toshiba
America,
Inc., and Toshiba America Information Systems, Inc On appeal to the
U.S.
Court of Appeals for the Federal Court. Lower Court Case No. 06-c-0032-c.
|
· |
Micromesh
Technology Corporation v. Columbia Sportswear Company. United States
District Court for the Northern District of California. Filed 9/27/06.
Case No. 3:06-cv-06031.
|
· |
Micromesh
Technology Corporation v. Red Wing Shoe Company and Red Wing Shoe
Company,
dba Vasque. United States District Court for the Eastern District
of
Texas. Filed 10/4/06. Case No. 2:06-cv-00421.
|
· |
Micromesh
Technology Corporation v. VF Corporation, VF Corporation, dba JanSport,
VF
Outdoor, Inc., dba The North Face. United States District Court for
the
Eastern District of Texas. Filed 10/4/06. Case No. 2:06-cv-00422.
|
· |
Microprocessor
Enhancement Corporation and Michael H. Branigin v. Texas Instruments,
Incorporated. United States District Court for the Central District
of
California. On appeal to the U.S. Court of Appeals for the Federal
Court.
Lower Court Case No. 8:05-cv-00323.
|
· |
Microprocessor
Enhancement Corporation and Michael H. Branigin v. Intel Corporation.
United States District Court for the Central District of California.
On
appeal to the U.S. Court of Appeals for the Federal Court. Lower
Court
Case No. Case No. 2:05-cv-05667.
|
· |
Cognex
Corporation v. VCode Holdings, Inc., VData LLC, Acacia Research
Corporation, dba Acacia Technologies Group, and Veritec Inc. United
States
District Court for the District of Minnesota. Filed 3/13/06. Case
No.
0:06-cv-01040.
|
· |
VCode
Holdings, Inc. and VData, LLC v. Cognex Corporation. United States
District Court for the Eastern District of Texas. Filed 4/13/07.
Case No.
2:07-cv-00138.
|
· |
VData
LLC and VCode Holdings, Inc. v. Aetna, Inc., PNY Technologies Inc.,
and
Merchant’s Credit Guide Co. United States District Court for the District
of Minnesota. Filed 5/8/06. Case No. 0:06-cv-01701.
|
· |
Peer
Communications Corporation v. Skype Technologies SA, Skype, Inc.,
and
eBay, Inc. United States District Court for the Eastern District
of Texas.
Filed 8/22/06. Case No.
6:06-cv-00370.
|
· |
Disc
Link Corporation v. H&R Block Digital Tax Solutions, LLC, F/K/A
H&R Block Digital Tax Solutions, Inc., Block Financial Corporation,
and Riverdeep, Inc. United States District Court for the Eastern
District
of Texas. Filed 12/27/06. Case No.
5:06-cv-00295.
|
· |
Disc
Link Corporation v. Oracle Corporation, SAP America, Inc. d/b/a SAP
Americas, SAP AG, Bentley Systems, Inc., SPSS, Inc., Solidworks
Corporation, CMS Products, Inc., Sonic Solutions, Corel Corporation,
Corel, Inc., MISYS PLC, Adtran, Inc., Eastman Kodak Company, CA,
Inc., UGS
Corp., Nuance Communications, Inc., Kofax Image Products, Inc., Business
Objects Americas, Business Objects SA, Trend Micro Incorporated,
Trend
Micro Incorporated (California Corporation), EMC Corporation, Borland
Software Corporation, Novell, Inc., Palo Alto Software, Inc., Altera
Corporation, Compuware Corporation and Avid Technology, Inc. United
States
District Court for the Eastern District of Texas. Filed 4/10/07.
Case No.
5:07-cv-00058.
|
· |
Telematics
Corporation v. United Parcel Service Co., @Road, Inc., Motorola Inc.,
Ryder Truck Rental, Inc., Sprint Spectrum, L.P., Nextel of California,
Inc., Nextel Communications of the Mid-Atlantic, Inc., Nextel of
New York,
Inc., Nextel South Corp., Nextel of Texas, Inc., Nextel West, Inc.,
Teletrac, Inc., Cellco Partnership d/b/a Verizon Wireless and Xata
Corporation. United States District Court for the Northern District
of
Georgia. Filed 1/16/07. Case No. 1:07-cv-00105.
|
· |
InternetAd
Systems, LLC v. Turner Broadcasting System, Inc., Freerealtime.com,
Inc.,
Knight Ridder Digital, Homestore, Inc. and Condenet, Inc. United
States
District Court for the Northern District of Texas. Filed 6/15/06.
Case No.
3:06-cv-01063.
|
· |
InternetAd
Systems, LLC v. Opodo Limited, Amadeus Global Travel Distribution
S.A.,
and Amadeus North America, LLC
|
· |
Safety
Braking Corporation, Magnetar Technologies Corp., and G&T Conveyor Co.
v. Six Flags, Inc., Six Flags Theme Parks Inc., SF Partnership, Tierco
Maryland, Inc., Busch Entertainment Corp., Cedar Fair LP, Paramount
Parks,
Inc., NBC Universal, Inc., Universal Studios, Inc. and Blackstone
Group
L.P. United States District Court for the District of Delaware. Filed
3/1/07. Case No. 1:07-cv-00127.
|
· |
Mobile
Traffic Systems Corporation v. Cobra Electronics Corp., Garmin USA,
Inc.,
Magellan Navigaton, Inc. and TomTom, Inc. United States District
Court for
the Northern District of Alabama. Filed 4/11/07. Case No.
5:07-cv-00653.
|
For
the Three Months Ended
|
|||||||
March
31, 2007
|
March
31, 2006
|
||||||
Net
income (loss)
|
$
|
2,302
|
|
$
|
(10,098
|
)
|
For
the Three Months Ended
|
|||||||
March
31, 2007
|
March
31, 2006
|
||||||
License
fees
|
$
|
25,185
|
$
|
4,717
|
|||
Government
contracts
|
549
|
264
|
|||||
Cost
of government contract revenues
|
(534
|
)
|
(250
|
)
|
|||
Products
|
440
|
924
|
|||||
Cost
of product sales
|
(303
|
)
|
(221
|
)
|
· |
the
dollar amount of agreements executed each period, which is primarily
driven by the nature and characteristics of the technology being
licensed
and the magnitude of infringement associated with a specific
licensee;
|
· |
the
specific terms and conditions of agreements executed each period
and the
periods of infringement contemplated by the respective
payments;
|
· |
fluctuations
in the total number of agreements
executed;
|
· |
fluctuations
in the sales results or other royalty per unit activities of our
licensees
that impact the calculation of license fees
due;
|
· |
the
timing of the receipt of periodic license fee payments and/or reports
from
licensees; and
|
· |
fluctuations
in the net number of active licensees period to
period.
|
For
the Three Months Ended
|
|||||||
March
31, 2007
|
March
31, 2006
|
||||||
Research
and development expenses (including non-cash stock
|
|||||||
compensation
charges of $258 in 2007 and $293 in 2006)
|
$
|
1,848
|
$
|
2,379
|
For
the Three Months Ended
|
|||||||
March
31, 2007
|
March
31, 2006
|
||||||
Marketing,
general and administrative expenses (including non-cash
stock
|
|||||||
compensation
charges of $980 in 2007 and $1,450 in 2006)
|
$
|
6,851
|
$
|
7,449
|
|||
Legal
expenses - patents
|
1,367
|
366
|
|||||
Inventor
royalties and contingent legal fees expense - patents
|
14,122
|
2,271
|
|||||
Amortization
of patents and royalties
|
1,634
|
1,667
|
|||||
Loss
from equity investment
|
272
|
239
|
For
the Three Months
|
||||
Ended
March 31,
|
||||
2007
vs. 2006
|
||||
Acacia
Technologies group:
|
||||
Increase
in personnel expenses
|
$ |
534
|
||
Decrease
in GPH Acquisition related consulting expenses
|
(175
|
)
|
||
One-time
severance charge for employee separation
|
360
|
|||
Increase
in CombiMatrix Split-off transaction costs
|
90
|
|||
Increase
in foreign taxes paid on licensing fees
|
145
|
|||
Increase
in patent development / commercialization and other
|
||||
marketing,
general and administrative costs
|
158
|
|||
Decrease
in non-cash stock compensation expense
|
(285
|
)
|
For
the Three Months
|
||||
Ended
March 31,
|
||||
2007
vs. 2006
|
||||
CombiMatrix
group:
|
||||
Decrease
in marketing and sales expenses
|
$
|
(317
|
)
|
|
Decrease
in rent and facilities
|
(309
|
)
|
||
Decrease
in general and administrative expenses related to CMDX
|
(489
|
)
|
||
Decrease
in general and administrative expenses
|
(125
|
)
|
||
Decrease
in non-cash stock compensation expense
|
(185
|
)
|
For
the Three Months Ended March 31, 2007
|
For
the Three Months Ended March 31, 2006
|
||||||||||||||||||
Acacia
|
Acacia
|
||||||||||||||||||
Technologies
|
CombiMatrix
|
Technologies
|
CombiMatrix
|
||||||||||||||||
Group
|
Group
|
Consolidated
|
Group
|
Group
|
Consolidated
|
||||||||||||||
Net
cash provided by (used in) continuing operations:
|
|||||||||||||||||||
Operating
activities
|
$
|
7,614
|
$
|
(4,170
|
)
|
$
|
3,444
|
$
|
(933
|
)
|
$
|
(3,673
|
)
|
$
|
(4,606
|
)
|
|||
Investing
activities
|
(668
|
)
|
68
|
(600
|
)
|
(4,587
|
)
|
1,404
|
(3,183
|
)
|
|||||||||
Financing
activities
|
728
|
390
|
1,118
|
(30
|
)
|
46
|
16
|
||||||||||||
Net
cash provided by discontinued operations
|
10
|
-
|
10
|
245
|
-
|
245
|
|||||||||||||
Increase
(decrease) in cash and cash equivalents
|
$
|
7,684
|
$
|
(3,712
|
)
|
$
|
3,972
|
$
|
(5,305
|
)
|
$
|
(2,223
|
)
|
$
|
(7,528
|
)
|
Payments
Due by Period (in thousands)
|
|||||||||||||||||||
Contractual Obligations |
Remaining
2007
|
2008
|
2009
|
2010
|
2011
|
2012
and Thereafter
|
|||||||||||||
Operating
leases
|
$
|
792
|
$
|
1,084
|
$
|
1,121
|
$
|
1,086
|
$
|
783
|
$
|
131
|
|||||||
Minimum
royalty payments(1)
|
75
|
100
|
100
|
100
|
100
|
675
|
|||||||||||||
Minimum
license payments
|
375
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Total
contractual cash obligations
|
$
|
1,242
|
$
|
1,184
|
$
|
1,221
|
$
|
1,186
|
$
|
883
|
$
|
806
|
(1) |
Refer
to Note 7 to the Acacia Research Corporation consolidated financial
statements for a description of the September 30, 2002 settlement
agreement between CombiMatrix Corporation and Dr. Donald Montgomery
and
Nanogen.
|
For
the Three Months Ended
|
|||||||
March
31, 2007
|
March
31, 2006
|
||||||
Division
net income (loss)
|
$
|
4,399
|
$
|
(2,409
|
)
|
For
the Three Months Ended
|
|||||||
March
31, 2007
|
March
31, 2006
|
||||||
License
fees
|
$
|
25,185
|
$
|
4,717
|
· |
the
dollar amount of agreements executed each period, which is primarily
driven by the nature and characteristics of the technology being
licensed
and the magnitude of infringement associated with a specific
licensee;
|
· |
the
specific terms and conditions of agreements executed each period
and the
periods of infringement contemplated by the respective
payments;
|
· |
fluctuations
in the total number of agreements
executed;
|
· |
fluctuations
in the sales results or other royalty per unit activities of our
licensees
that impact the calculation of license fees
due;
|
· |
the
timing of the receipt of periodic license fee payments and/or reports
from
licensees; and
|
· |
fluctuations
in the net number of active licensees period to
period.
|
For
the Three Months Ended
|
|||||||
March
31, 2007
|
March
31, 2006
|
||||||
Marketing,
general and administrative expenses (including non-cash
stock
|
|||||||
compensation
charges of $763 in 2007 and $1,048 in 2006)
|
$
|
4,364
|
$
|
3,537
|
|||
Legal
expenses - patents
|
1,367
|
366
|
|||||
Inventor
royalties and contingent legal fees expense - patents
|
14,122
|
2,271
|
|||||
Amortization
of patents
|
1,316
|
1,343
|
For
the Three Months
|
||||
Ended
March 31,
|
||||
2007
vs. 2006
|
||||
Acacia
Technologies group:
|
||||
Increase
in personnel expenses
|
$ |
534
|
||
Decrease
in GPH Acquisition related consulting expenses
|
(175
|
)
|
||
One-time
severance charge for employee separation
|
360
|
|||
Increase
in CombiMatrix Split-off transaction costs
|
90
|
|||
Increase
in foreign taxes paid on licensing fees
|
145
|
|||
Increase
in patent development / commercialization and other
|
||||
marketing,
general and administrative costs
|
158
|
|||
Decrease
in non-cash stock compensation expense
|
(285
|
)
|
For
the Three Months Ended
|
|||||||
March
31, 2007
|
March
31, 2006
|
||||||
Net
cash provided by (used in) continuing operations:
|
|||||||
Operating
activities
|
$
|
7,614
|
$
|
(933
|
)
|
||
Investing
activities
|
(668
|
)
|
(4,587
|
)
|
|||
Financing
activities
|
728
|
(30
|
)
|
||||
Net
cash provided by discontinued operations
|
10
|
245
|
|||||
Increase
(decrease) in cash and cash equivalents
|
$
|
7,684
|
$
|
(5,305
|
)
|
Payments
Due by Period (in thousands)
|
|||||||||||||||||||
Contractual
Obligations
|
Remaining
2007
|
2008
|
2009
|
2010
|
2011
|
2012
and Thereafter
|
|||||||||||||
Operating
leases (1)
|
$
|
451
|
$
|
696
|
$
|
724
|
$
|
753
|
$
|
783
|
$
|
131
|
|||||||
Total
contractual cash obligations
|
$
|
451
|
$
|
696
|
$
|
724
|
$
|
753
|
$
|
783
|
$
|
131
|
(1) |
Excludes
any allocated rent expense in connection with Acacia Research
Corporation’s management allocation
policies.
|
For
the Three Months Ended
|
|||||||
March
31, 2007
|
March
31, 2006
|
||||||
Division
net loss
|
$
|
(2,097
|
) |
$
|
(7,689
|
)
|
For
the Three Months Ended
|
|||||||
March
31, 2007
|
March
31, 2006
|
||||||
Government
contracts
|
$
|
549
|
$
|
264
|
|||
Cost
of government contract revenues
|
(534
|
)
|
(250
|
)
|
|||
Products
|
440
|
924
|
|||||
Cost
of product sales
|
(303
|
)
|
(221
|
)
|
For
the Three Months Ended
|
|||||||
March
31, 2007
|
March
31, 2006
|
||||||
Research
and development expenses (including non-cash stock
|
|||||||
compensation
charges of $258 in 2007 and $293 in 2006)
|
$
|
1,848
|
$
|
2,379
|
For
the Three Months Ended
|
|||||||
March
31, 2007
|
March
31, 2006
|
||||||
Marketing,
general and administrative expenses (including non-cash
stock
|
|||||||
compensation
charges of $217 in 2007 and $402 in 2006)
|
$
|
2,487
|
$
|
3,912
|
|||
Loss
from equity investment
|
272
|
239
|
For
the Three Months
|
||||
Ended
March 31,
|
||||
2007
vs. 2006
|
||||
CombiMatrix
group:
|
||||
Decrease
in marketing and sales expenses
|
$
|
(317
|
)
|
|
Decrease
in rent and facilities
|
(309
|
)
|
||
Decrease
in general and administrative expenses related to CMDX
|
(489
|
)
|
||
Decrease
in general and administrative expenses
|
(125
|
)
|
||
Decrease
in non-cash stock compensation expense
|
(185
|
)
|
For
the Three Months Ended
|
|||||||
March
31, 2007
|
March
31, 2006
|
||||||
Net
cash provided by (used in):
|
|||||||
Operating
activities
|
$
|
(4,170
|
)
|
$
|
(3,673
|
)
|
|
Investing
activities
|
68
|
1,404
|
|||||
Financing
activities
|
390
|
46
|
|||||
Decrease
in cash and cash equivalents
|
$
|
(3,712
|
)
|
$
|
(2,223
|
)
|
·
|
the
costs of commercialization activities, including sales and marketing,
manufacturing and capital
equipment;
|
·
|
our
continued progress in research and development
programs;
|
·
|
the
costs involved in filing, prosecuting, enforcing and defending any
patents
claims, should they arise;
|
·
|
our
ability to license technology;
|
·
|
competing
technological developments;
|
·
|
the
creation and formation of strategic
partnerships;
|
·
|
the
costs associated with leasing and improving our Irvine, California
facility; and other factors that may not be within our
control.
|
Payments
Due by Period (in thousands)
|
|||||||||||||||||||
Contractual
Obligations
|
Remaining
2007
|
2008
|
2009
|
2010
|
2011
|
2012
and Thereafter
|
|||||||||||||
Operating
leases (1)
|
$
|
341
|
$
|
388
|
$
|
397
|
$
|
333
|
$
|
-
|
$
|
-
|
|||||||
Minimum
royalty payments(2)
|
75
|
100
|
100
|
100
|
100
|
675
|
|||||||||||||
Minimum
license payments
|
375
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Total
contractual cash obligations
|
$
|
791
|
$
|
488
|
$
|
497
|
$
|
433
|
$
|
100
|
$
|
675
|
(1) |
Excludes
any allocated rent expense in connection with Acacia Research
Corporation’s management allocation policies.
|
(2) |
Refer
to Note 7 to the Acacia Research Corporation consolidated financial
statements for a description of the September 30, 2002 settlement
agreement between CombiMatrix Corporation and Dr. Donald Montgomery
and
Nanogen.
|
3.1
|
Restated
Certificate of Incorporation (1)
|
3.2
|
Certificate
of Amendment to Restated Certificate of Incorporation
(2)
|
10.1
|
Third
Amendment to Lease Agreement dated February 1, 2007, between Wirezoned
Property, L.P. and CombiMatrix Corporation (3)
|
31.1
|
Certifications
of the Chief Executive Officer provided pursuant to Section 302 of
the
Sarbanes-Oxley Act of 2002
|
31.2
|
Certifications
of the Chief Financial Officer provided pursuant to Section 302 of
the
Sarbanes-Oxley Act of 2002
|
32.1
|
Certifications
of the Chief Executive Officer provided pursuant to 18 U.S.C. Section
1350
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
32.2
|
Certifications
of the Chief Financial Officer provided pursuant to 18 U.S.C. Section
1350
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
(1) |
Incorporated
by reference to Appendix B to the Proxy Statement/Prospectus which
formed
part of our Registration Statement on Form S-4 (SEC File No. 333-87657)
which became effective on November 8,
2002.
|
(2) |
Incorporated
by reference to Exhibit A of our Definitive Proxy Statement filed
with the
SEC on April 13, 2006.
|
(3) |
Incorporated
by reference to Exhibit 10.19 of CombiMatrix Corporation's Amendment
No. 1
to Registration Statement on Form S-1/A File
No. 333-139679 and Film No.07688720 filed
on March 12, 2007.
|
ACACIA RESEARCH CORPORATION | ||
|
|
|
By: | /s/ Paul R. Ryan | |
Paul R. Ryan |
||
Chief
Executive Officer
(Authorized
Signatory)
|
By: | /s/ Clayton J. Haynes | |
Clayton J. Haynes |
||
Chief
Financial Officer /Treasurer
(Principal
Financial Officer)
|
EXHIBIT
NUMBER
|
EXHIBIT |
3.1
|
Restated
Certificate of Incorporation (1)
|
3.2
|
Certificate
of Amendment to Restated Certificate of Incorporation
(2)
|
10.1
|
Third
Amendment to Lease Agreement dated February 1, 2007, between Wirezoned
Property, L.P. and CombiMatrix Corporation (3)
|
31.1
|
Certifications
of the Chief Executive Officer provided pursuant to Section 302 of
the
Sarbanes-Oxley Act of 2002
|
31.2
|
Certifications
of the Chief Financial Officer provided pursuant to Section 302 of
the
Sarbanes-Oxley Act of 2002
|
32.1
|
Certifications
of the Chief Executive Officer provided pursuant to 18 U.S.C. Section
1350
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
32.2
|
Certifications
of the Chief Financial Officer provided pursuant to 18 U.S.C. Section
1350
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
(1) |
Incorporated
by reference to Appendix B to the Proxy Statement/Prospectus which
formed
part of our Registration Statement on Form S-4 (SEC File No. 333-87657)
which became effective on November 8,
2002.
|
(2) |
Incorporated
by reference to Exhibit A of our Definitive Proxy Statement filed
with the
SEC on April 13, 2006.
|
(3) |
Incorporated
by reference to Exhibit 10.19 of CombiMatrix Corporation's Amendment
No. 1
to Registration Statement on Form S-1/A File
No. 333-139679 and Film No.07688720 filed
on March 12, 2007.
|