Net loss for the year ended December 31, 2000 was $39 million, or $2.67 per share, versus a net loss of $8.2 million, or $0.75 per share, in 1999.
Losses for the quarter and year ended in 2000 increased primarily due to the growth and expansion of Acacia Research’s subsidiary, CombiMatrix Corp., and the operating expenses and losses related to the discontinued operations of Soundbreak.com.
As of December 31, 2000, total assets were $98.3 million, of which $76.6 million was cash and short-term investments. Acacia Research finished the year in the strongest financial position in its history. Raising an additional $19 million in January 2001 brings current cash and short-term investments to $92 million, commented Paul Ryan, chairman and chief executive officer.
Our licensing subsidiary, Soundview Technologies, has begun to receive royalties from television manufacturers for its v-chip technology and we have continued to either monetize or liquidate noncore assets as evidenced by the closure of Soundbreak.com, Ryan further commented.
We are totally focused on continuing to build Acacia Research as a life science and material science company, stated Ryan. Our subsidiary, CombiMatrix Corporation, has filed for its proposed initial public offering and our new subsidiary, Advanced Material Sciences Inc., has received initial funding from Acacia Research and CombiMatrix.
We have also entered into an agreement with CombiMatrix to build another subsidiary that will have certain exclusive rights to use their technology in the field of toxicology.
Highlights of the fourth quarter include:
CombiMatrix Corp., a majority-owned subsidiary, filed a registration statement with the Securities and Exchange Commission (SEC) relating to the proposed initial public offering of its common stock. Salomon Smith Barney was selected as lead manager with J.P. Morgan Chase & Co. as co-manager.
Advanced Material Sciences Inc., a majority-owned subsidiary, was formed. The company holds a 20-year exclusive license to CombiMatrix’s biological processor technology within certain fields of material science including fuel cell catalysts, battery materials, sensor arrays and electronic and electrochemical materials. Acacia Research has a 66.7% equity interest and CombiMatrix has a 33.3% equity interest.
Acacia Research and CombiMatrix entered into a licensing and supply agreement pertaining to the use of CombiMatrix’s technology within the field of toxicology. Acacia Research expects to acquire an affiliate company in this field in order to maintain its rights under the agreement.
Acacia Research’s majority-owned subsidiary, Soundview Technologies, announced that it would receive payment and grant a nonexclusive license to its U.S. Patent 4,554,584 to Philips Electronics. Soundview has subsequently granted nonexclusive licenses to Hitachi, Pioneer Electronics and Samsung Electronics in the first quarter of 2001. Soundview’s patent relates to television video and audio blanking technology, commonly known as v-chip technology.
