| Schedule of Information with Respect to IP Licensing Segment Revenue, Significant Expenses and Income |
The following table presents information with respect to the Company’s IP Licensing segment revenue, significant expenses and income (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
|
2026 |
|
|
2025 |
|
2026 |
|
|
2025 |
|
Revenue |
|
$ |
80,193 |
|
|
$ |
87,339 |
|
$ |
281,082 |
|
|
$ |
260,744 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
Personnel related expense |
|
|
26,823 |
|
|
|
23,165 |
|
|
80,519 |
|
|
|
70,806 |
|
Patent portfolio expense |
|
|
10,167 |
|
|
|
8,853 |
|
|
29,251 |
|
|
|
26,627 |
|
Patent related technical sales support expense |
|
|
1,194 |
|
|
|
1,802 |
|
|
3,983 |
|
|
|
5,135 |
|
Amortization expense |
|
|
16,291 |
|
|
|
14,175 |
|
|
48,311 |
|
|
|
42,427 |
|
Outside services expense |
|
|
4,918 |
|
|
|
2,929 |
|
|
11,138 |
|
|
|
10,726 |
|
Litigation expense |
|
|
7,182 |
|
|
|
5,195 |
|
|
18,489 |
|
|
|
18,223 |
|
Interest expense |
|
|
8,051 |
|
|
|
10,054 |
|
|
24,632 |
|
|
|
30,919 |
|
Other segment items (1) |
|
|
2,789 |
|
|
|
2,735 |
|
|
14,998 |
|
|
|
15,929 |
|
Provision for income taxes |
|
|
511 |
|
|
|
9,603 |
|
|
7,355 |
|
|
|
2,588 |
|
Segment net income |
|
$ |
2,267 |
|
|
$ |
8,828 |
|
$ |
42,406 |
|
|
$ |
37,364 |
|
(1) Other segment items include facilities and other related expenses, marketing and advertising expenses, depreciation expense, travel and entertainment expenses, other income and expense, and other overhead expenses.
|
| Schedule of Revenue by Geography |
The table below lists the revenue by geography for the periods indicated (in thousands, except for percentages):
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
U.S. |
|
$ |
59,531 |
|
|
|
74 |
% |
|
$ |
66,212 |
|
|
|
76 |
% |
|
$ |
216,807 |
|
|
|
77 |
% |
|
$ |
205,635 |
|
|
|
79 |
% |
Asia |
|
|
17,063 |
|
|
|
21 |
|
|
|
15,148 |
|
|
|
17 |
|
|
|
52,061 |
|
|
|
18 |
|
|
|
38,427 |
|
|
|
15 |
|
Canada |
|
|
54 |
|
|
|
— |
|
|
|
3,082 |
|
|
|
4 |
|
|
|
562 |
|
|
|
— |
|
|
|
9,305 |
|
|
|
4 |
|
Europe and Middle East |
|
|
3,053 |
|
|
|
4 |
|
|
|
2,418 |
|
|
|
3 |
|
|
|
10,205 |
|
|
|
4 |
|
|
|
5,969 |
|
|
|
2 |
|
Other |
|
|
492 |
|
|
|
1 |
|
|
|
479 |
|
|
|
— |
|
|
|
1,447 |
|
|
|
1 |
|
|
|
1,408 |
|
|
|
— |
|
Total revenue |
|
$ |
80,193 |
|
|
|
100 |
% |
|
$ |
87,339 |
|
|
|
100 |
% |
|
$ |
281,082 |
|
|
|
100 |
% |
|
$ |
260,744 |
|
|
|
100 |
% |
|
| Summary of Customers Comprising 10% or More of Total Revenues |
For the nine months ended September 30, 2026 and 2025, one and two customers each accounted for 10% or more of total revenue, respectively. The following table sets forth revenue generated from customers which comprise 10% or more of total revenue for the periods indicated:
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|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
|
|
2026 |
|
2025 |
|
|
2026 |
|
|
2025 |
|
Customer A |
|
* |
|
* |
|
|
|
11.6 |
% |
|
* |
|
Customer B |
|
* |
|
|
19.7 |
% |
|
* |
|
|
|
19.8 |
% |
Customer C |
|
* |
|
|
10.0 |
% |
|
* |
|
|
|
10.3 |
% |
* denotes less than 10% of total revenue.
|