Q3 2025 Acacia Research Corp Earnings Call
Speaker #3: Good morning everyone . Thank you for joining Acacia . Third quarter 2025 Earnings Conference Call . My name is Kelly , and I will be your conference facilitator for today .
Speaker #3: All lines are currently muted to prevent any background noise . I would like to remind you that this conference call is being recorded today , and also is available through audio webcast on Acacia's website .
Speaker #3: Following the speaker's remarks , there will be time for questions . Questions can also be directed any time to Acacia at . I at Acacia .
Speaker #3: I would now like to turn the conference over to Mr. Brent Anderson of Gagnier Communications . Mr. Anderson , you may begin the conference .
Speaker #4: Thank you . Operator . Leading today's call are M.J. McNulty , Acacia's Chief Executive Officer and Michael Zambito Acacia's , chief Financial officer .
Speaker #4: Before M.J. and Mike begin their prepared remarks , please be reminded that certain information provided during this call may contain forward looking statements relating to current expectations , estimates , forecasts , and projections about future events that are forward looking as defined in the Private Securities Litigation Reform Act of 1995 .
Speaker #4: These forward looking statements generally relate to the company's plans , objectives and expectations for future operations and are based on current estimates and projections .
Speaker #4: Future results and trends . Actual results may differ materially from those projected as a result of certain risks and uncertainties . For a discussion of such risks and uncertainties , please see the risk factors described in Acacia's most recent annual Report on Form 10-K and quarterly Reports on Form 10-q filed with the SEC .
Speaker #4: Earlier this morning , Acacia issued a press release disclosing its third quarter 2020 financial results . The press release may be accessed on the company's website under the press releases section of the Investor Relations tab at Acacia Research .
Speaker #4: Com . The company also posted its Q3 2025 earnings presentation to its website , which includes detailed GAAP and non-GAAP financial disclosures , and can be found under the quarterly results tab .
Speaker #4: On call . The team will discuss certain non-GAAP financial measures , including adjusted EBITDA for the company and each of its operating segments .
Speaker #4: Information regarding the comparable GAAP metrics , along with required definitions and reconciliations , can be found in the press release disclosing third quarter 2020 financial results available under the press Releases section of the Investor Relations tab at Acacia Research .
Speaker #4: Com . I'll now turn the call over to Acacia's chief Executive Officer MJ McNulty .
Speaker #5: Thanks , Brett , and thank you to everyone for joining us for our third quarter 2020 earnings
Speaker #5: good results in the third quarter with significant increases sequentially and year today's year across many key metrics . Despite persistent macroeconomic and geopolitical headwinds , our team executed well against our disciplined and operationally focused strategy .
Speaker #5: While our businesses are not immune to these headwinds , we're using this as an opportunity to accelerate our value creation plans swiftly and decisively across our portfolio .
Speaker #5: These include the implementation of pricing strategies , cost savings initiatives , operational efficiencies and plant consolidations to mitigate tariff pressures and to position our company for continued growth .
Speaker #5: These ongoing initiatives and the team's consistent execution drove our strong quarterly results , with Acacia delivering total revenue of 59.4 million , up 16% sequentially and up 155% compared to the prior year quarter .
Speaker #5: The year over year comparison , primarily driven by our third full quarter of Defecto , the company total company adjusted EBITDA was 8 million and operating segment adjusted EBITDA was 12.6 million , while free cash flow for the quarter was 7.7 million , with the net result being a GAAP loss of $0.03 a share or a loss of a penny per share on an adjusted basis .
Speaker #5: Book value per share . At the end of the third quarter was $5.98 , and book value per share to Acacia , excluding our noncontrolling interests was $5.57 .
Speaker #5: Both essentially flat versus last quarter . But Acacia Performance in context , in spite of the macroeconomic and geopolitical headwinds , the businesses we own are still delivering attractive return characteristics .
Speaker #5: As you've heard me say before , Acacia is focused on identifying and acquiring Underloved , under-managed and undervalued businesses where we believe we can leverage our significant capital base and experienced leadership teams to streamline operations , materially improve performance and drive long term growth .
Speaker #5: As a result of our actions on a year to date annualized basis , benchmark is generating a roughly high teens free cash flow yield to Flecto is generating a high single digit free cash flow yield .
Speaker #5: Prior to the impact of our in-flight operational improvement initiatives and Printronix is generating a high teens free cash flow yield is strong and improving cash yields at each of our operating companies and disciplined cost control at the parent .
Speaker #5: We believe we're creating significant equity value , which is not yet reflected in our share price . As we approach the end of the year , we remain focused on driving revenue , EBITDA and free cash flow growth at each of our operating businesses , while at the same time growing our extensive pipeline of actionable , actionable M&A opportunities with approximately $332 million in total cash , equity securities and loans receivable at September 30th , our strong balance sheet positions us well to pursue accretive organic and inorganic growth opportunities across our businesses to create differentiated value for our shareholders .
Speaker #5: I'd now like to discuss our operating segments within our energy operations . We continue to view benchmark as an attractive platform to allocate capital within the oil and gas industry .
Speaker #5: As you may recall , we acquired the business in two steps . First , through our partnership in November 2023 with McCarron and the company on a small package of wells and second , through the acquisition , the Revolution assets in Q2 of 2024 .
Speaker #5: At that time , we underwrote the business based on acquiring existing flowing production at a high teens discount rate , and we continue to evaluate comparable opportunities within our existing geographies .
Speaker #5: Sensor acquisition of Revolution . The Western Anadarko Basin has seen a meaningful increase in investor interest as a result of the renewed interest in the basin .
Speaker #5: We've seen high quality , well capitalized operators enter the basin with rig counts increasing despite declining rig count activity in many other plays .
Speaker #5: This has pushed the value of high quality , producing assets into basin back towards historical valuation metrics . Well , this is positive for the value of our business .
Speaker #5: It does mean that we need to be more cautious on valuations for additional producing assets . We may want to acquire , and we have focused those efforts on asset packages where we can maximize strategic overlap with our existing fields .
Speaker #5: To that end , as you may remember , in addition to the large producing acreage we acquired as part of the revolution acquisition , the deal came with a significant undeveloped acreage position in an emerging play called the Cherokee , which you've heard us discuss in the past .
Speaker #5: This year , we've continued to strategically develop this position within the Cherokee , most recently highlighted by two small but very strategic acreage acquisitions .
Speaker #5: As we continue to build our undeveloped acreage position, we're actively considering additional monetization opportunities as well as potential capital partnerships to finance a targeted drilling program for acreage.
Speaker #5: In this play during the quarter , benchmark continued to perform well with stable operated production and strong cash flow , while oil and natural gas prices remain at low levels .
Speaker #5: Benchmarks: the hedging strategy continues to perform as expected. As a benchmark, hedges over 70% of its operated oil and gas production, with hedged positions currently in place through the beginning of 2028.
Speaker #5: Protecting a significant amount of our cash flow from downside price risk . Further , our diversified production profile provides us with significant optionality as we're able to prioritize projects that are more gas and NGL focused in a weaker oil price environment .
Speaker #5: As of the third quarter , approximately 52% of Benchmark's LTM commodity revenue and 78% of LTM production on a BOE basis was driven by gas and natural gas which have remained much more resilient from a pricing perspective .
Speaker #5: Looking ahead , we see a variety of ways to create significant value in expanding our oil and gas platform , and we're fortunate that our operations in the Anadarko Basin provide us with access to some of the highest quality reserves and management team in the country .
Speaker #5: We remain excited about the value generation opportunities that benchmark , and I look forward to keeping you updated as we continue to scale this business liquids , in our manufacturing segment .
Speaker #5: Deflected , delivered another quarter of sequential revenue growth and improved adjusted EBITDA versus last quarter . We're continuing to progress our operational initiatives at Defecto , including strategic price increases across each business unit , reshoring and consolidation of certain manufacturing operations , overhead and cost reductions , and improving .
Speaker #5: Go to market motions . All of which are aimed at creating a more streamlined business positioned for future growth . While the current tariff and macroeconomic environment has impacted several of the end markets , I'm encouraged by the strong progress and significant improvements we have made across the business to address some of the trends we're seeing across the business units .
Speaker #5: I'll start with the class eight truck market , which continue to experience demand headwinds throughout the third quarter . Recent industry data indicates that class eight net orders for September represented the weakest September since 2019 .
Speaker #5: While we expect the class eight mark to remain under pressure in the near term , further tariff and macro clarity , along with lower interest rates and gradual fleet capacity normalization into 2026 , should support a rebound in activity .
Speaker #5: Moreover , Flecto remains focused on selling essential non-discretionary products such as mudflats and emergency warning triangles that are mandated by key regulatory authorities , which puts the business in a strong position when the cycle turns .
Speaker #5: Then the office products business tariff and global trade uncertainty has caused many customers to pause or delay purchasing decisions . While we expect these headwinds to persist in the coming quarters , are operational , initiatives are helping to mitigate these impacts and position the business for future growth .
Speaker #5: As macroeconomic conditions normalize . As a reminder , the Flecto office Products business sells basic necessities for everyday use , such as sign holders , document organizers , and floor mats for the home and commercial office markets .
Speaker #5: Within the Air distribution business , our sales have remained resilient in the face of a soft construction market , largely a result of interest rate pressures , which we believe will subside in the coming quarters .
Speaker #5: We continue to work to offset tariff cost pressures in this segment through product line relocations , pricing actions and working with our distribution partners to optimize delivery routes within this business unit .
Speaker #5: Defectos core product offerings include dryer vents , air ducts , and air vent deflectors , all of which are essential in nature . Very excited about Defectos long term growth potential .
Speaker #5: Supported by its substantial market share . Diversified customer base , and industry leading products . Turning now to our industrial segment , Printronix continues to deliver strong performance and we're seeing positive momentum across the business .
Speaker #5: Our operational improvements over the last 12 to 18 months have resulted in an attractive mix of hardware and higher margin consumable revenue streams to generate consistent free cash flow .
Speaker #5: The team continues to use our advantageous channel position and market share to add new product lines , which we expect to provide incremental contributions over the coming quarters .
Speaker #5: Now to our intellectual property segment , we recorded $7.4 million in total , paid up revenue for multiple settlements and licenses during the third quarter , which resulted in total revenue and adjusted EBITDA of 7.8 million and $3 million for the quarter , respectively .
Speaker #5: A significant increase sequentially and year over year in the year to date period through September . Our IP business generated $78 million in revenue and $44.2 million in adjusted EBITDA , versus 19.4 million in revenue and 6.3 million in adjusted EBITDA in the prior year period .
Speaker #5: As a reminder , the quarterly fluctuations within the IP business are largely the result of the episodic nature of the business and timing of future settlements .
Speaker #5: With that , I'll pass it over to Mike to discuss the details of our financial results .
Speaker #6: Thank you MJ and hello everyone . Acacia recorded total revenue of $59.4 million during the third quarter . Our energy operations generated 14.2 million in revenue for the year of revenue for the quarter , compared to $15.8 million in the same quarter last year , reflecting a softer oil price environment year over year .
Speaker #6: Manufacturing operations generated $30.8 million in revenue for the quarter , representing a third consecutive sequential increase compared to $29 million in the second quarter .
Speaker #6: Given we acquired Flecto in October of last year , there is no comparable prior year period . Our industrial operations generated $6.7 million in revenue during the quarter , compared to 7 million in the same quarter last year .
Speaker #6: Our intellectual property operations generated $7.8 million in licensing and other revenue during the quarter , compared to 0.5 million in the same quarter last year .
Speaker #6: Total consolidated G&A expenses were $16 million during the third quarter , compared to 11.2 million in the same quarter of last year . The increase was primarily driven by the addition of Defecto as part of the company's new manufacturing operations .
Speaker #6: G&A expense for the third quarter of 2025 was $4.6 million , which declined from $5.1 million in the prior quarter . Of the 4.6 million of G&A expenses , approximately approximately $1.1 million was related to depreciation of fixed assets and amortization of intangibles .
Speaker #6: Our energy operations expense was 1.2 million for the third quarter of 2025 , compared to $1 million for the prior year quarter in 2024 .
Speaker #6: G&A at the parent level increased by $0.5 million year over year from 6.1 million to 6.6 million in the quarter ended September 30th , 2025 .
Speaker #6: Parent G&A and an adjusted basis decreased by 0.6 million year over year from $5.2 million to 4.6 million in the quarter ended September 30th , 2025 .
Speaker #6: The company recorded a third quarter GAAP operating loss of $6.4 million, compared to a GAAP operating loss of $10.3 million in the same quarter last year.
Speaker #6: This was primarily due to the inclusion of Defecto in 2025 , with no comparable operating income in 2020 . For , along with a lower GAAP operating loss in the IP business in 2025 compared to the prior year , energy operations contributed $1.1 million in GAAP operating income during the quarter , which included 3.8 million in non-cash depreciation , depletion and amortization expense and does not reflect the realized hedge gain of $1.2 million during the quarter .
Speaker #6: Adjusted EBITDA for our energy operations was $6.1 million in the quarter , and $21 million year to date . Free cash flow for our energy operations was 4.3 million in the quarter and $11.9 million year to date .
Speaker #6: Manufacturing operations contributed $1.1 million in gap operating income during the quarter , which included 1.1 million in non-cash depreciation and amortization expense and $0.3 million in non-recurring transaction related expenses and severance costs .
Speaker #6: As part of our operational initiatives at the Flecto , adjusted EBITDA for our manufacturing operations was $2.6 million in the quarter , and $6.3 million year to date .
Speaker #6: Free cash flow for our manufacturing operations was $2 million in the quarter and $3.7 million year to date . Industrial operations contributed 0.3 million in GAAP operating income during the quarter , which included $0.5 million in non-cash depreciation and amortization expense .
Speaker #6: Adjusted EBITDA for our industrial operations was 0.8 million for the quarter , and $2.5 million year to date . Free cash flow for our industrial operations was 0.7 million in the quarter , and $4.1 million in the date .
Speaker #6: GAAP net loss attributable to Acacia Research Corporation in the third quarter was $2.7 million , or $0.03 loss per share , compared to a net loss attributable to Acacia of $14 million , or a 14 cent loss per share in the prior year period .
Speaker #6: This decline in net loss was primarily due to the significant year over year increase in revenue and EBITDA . In addition to gains from our public equity portfolio and the lapping the legacy legal fees from the prior year period included in GAAP net loss for the third quarter was $0.9 million in unrealized gains related to changes in the fair value of equity securities at September 30th , 2025 , adjusted net loss attributable to Acacia in the third quarter of 2025 was $1.1 million , or $0.01 loss per share .
Speaker #6: Further details on these adjustments can be found in our press release . Now , turning to the balance sheet . Cash and cash equivalents .
Speaker #6: Equity securities measured at fair value and loans receivable totaled $332.4 million at September 30th , 2025 , compared to $297 million at December 31st , 2020 .
Speaker #6: For the parents , the parent companies total indebtedness was zero at September 30th , 2025 . On a consolidated basis , Acacia's total indebtedness as of September 30th , 2025 was $94 million , consisting of $58.5 million and $35.5 million in nonrecourse debt .
Speaker #6: At benchmark and Deflector , respectively . Since closing the acquisition of the Revolution , assets in April 2024 , benchmark has paid down approximately $24 million in total debt , underscoring the strong free cash flow generation of the business .
Speaker #6: Additionally , since acquiring Deflector in October 2020 , 24 , the company has made down approximately $13 million in total debt . These capital allocation decisions have significantly reduced our consolidated debt and interest expense , providing further operational flexibility , more information on Acacia's third quarter results .
Speaker #6: Please see our press release issued this morning . And our quarterly Report on Form 10-q , which we will file with the SEC later this week .
Speaker #6: I'll now turn the call back over to MJ .
Speaker #5: Thanks , Mike . Just as a reminder , we've got a Q3 earnings presentation and an investor presentation on the website that goes through the reconciliations that Mike just talked through .
Speaker #5: And I think is helpful . Disclosure . But but just in conclusion here , as you've heard , despite ongoing tariff headwinds , Catia delivered solid financial and operating results in the third quarter .
Speaker #5: And for the first nine months of the year . Looking ahead , our near term focus remains on leveraging our diverse portfolio and developing targeted pricing strategies and cost savings to mitigate the ongoing impact of tariffs and related uncertainties and drive value creation for our shareholders .
Speaker #5: While our approach remains measured and thoughtful , we're not letting volatility in the market stand in the way of building our pipeline and identifying opportunities for organic and inorganic growth across our businesses .
Speaker #5: The inherent value of our assets is strong , and I'm confident that our value oriented strategy and experience management team will enable us to continue to build our momentum across our business through year end and into next year as we continue to generate long term value for our shareholders .
Speaker #5: With that , I'll turn it back over to you , Kelly .
Speaker #3: Certainly the floor is now open for questions . If you have any questions or comments , please press star one on your phone at this time , we ask that while posing your question , you please pick up your handset .
Speaker #3: If listening on a speakerphone to provide optimum sound quality , please hold just a few moments while we pull for questions . Your first question is coming from Anthony Stoss with Craig-hallum .
Speaker #3: Please post your question . Your line is live .
Speaker #7: Good morning MJ and team . I wanted to focus on is it ? Good morning guys . Deflect was a bit better than what we were modeling even in a tougher environment .
Speaker #7: MJ when you look at a so-called normal environment down the road , what percent of free cash flow do you think you'll use to pay down debt ?
Speaker #7: And where do you think those EBITDA margins can go to ?
Speaker #5: I mean , in terms of the amount of free cash flow that we'll use to pay down debt , I think we we paid off some debt this quarter as a capital allocation decision , really , to to bring the leverage down , create more , even more flexibility as we look at a handful of initiatives and also to reduce the interest , drag , we like to have leverage in our underlying businesses , just given our cash balance .
Speaker #5: It's not entirely necessary , but there is some strategic benefit to having credit facilities in place there . And so we you know , we decided to bring that down a little bit in terms of EBITDA target percentages .
Speaker #5: You know , I would think about it in like kind of a low to mid teens type margin . We are going through a lot of operating initiatives in all three of those defective businesses .
Speaker #5: That should help to drive that . But , you know , look , we're we're in a pretty tough part of the cycle in the safety business .
Speaker #5: It's still performing , but with the changes that are being made there as that cycle normalizes and , you know , kind of runs back up to the margins , there should be really attractive are er , distribution business is doing well .
Speaker #5: And then the office products business kind of the same type of target .
Speaker #7: Got it . And then on the benchmark side of the business , especially on on the Cherokee properties , can you maybe update everybody where you stand on that ?
Speaker #7: How I guess how many oil heads have been tapped ? And what are your plans going forward over the next year or so ?
Speaker #5: Yeah , I mean , so if we look at the base business , it's it's performing our operated production is performing how we want it to perform .
Speaker #5: You know , commodity prices could be stronger , but we've got the hedges in place , which is exactly why we did that .
Speaker #5: So we are protected to a large extent from the hedges in terms of the Cherokee . What what I can say is that we have not yet drilled any wells .
Speaker #5: We have spent a considerable amount of time optimizing our acreage position through , as I mentioned earlier , two small but really strategic acquisitions and some land swaps and non-op working interest swaps that get us to great blocks that we think are very attractive to monetize .
Speaker #7: Thanks , MJ . That's it for me .
Speaker #5: Thanks , Tony . Good to talk to you .
Speaker #3: Your next question is coming from Brett Reese with Janney Montgomery Scott . Please put your question . Your line is live .
Speaker #8: Hi , MJ . Hi , Mike .
Speaker #5: Hey , Todd . Sorry , Brett .
Speaker #8: Yeah . That's okay . A rose is still a rose .
Speaker #5: Oh , Brad .
Speaker #8: Yeah . Very impressive . The increase in the free cash flow and flecto in a challenging environment . But just another free cash flow question in Printronix .
Speaker #8: The first quarter , you had two point $2.5 million of free cash flow . Is that a seasonality thing or or , you know , that that seemed , you know , kind of an aberration .
Speaker #5: Yeah , it's it is a seasonality thing .
Speaker #8: Okay . I have a question . The valuation of the . Ammo pharma . You know , when you poke around their website , they have a phase three .
Speaker #8: You know , drug in trial , two , phase two , can you refresh my recollection ? What do we what is our carrying value on that .
Speaker #8: And you know , when you look at the addressable markets that ammo Pharma talks about on their website , you know , just seems , you know , that could in the future be a total possible positive potential surprise for us .
Speaker #5: Yeah . I mean so we don't we don't disclose the carrying value of it . We we do think that it's attractive . The company has just as a reminder , this is a drug for myotonic dystrophy .
Speaker #5: It's actually a pretty novel drug . There's a reasonable amount of interest in this space right now . There's a couple research reports out there and some commentary on two companies , Dine and Avidity , that target a similar end market .
Speaker #5: Those are probably worth taking a look at . Brett . We continue to work with the company . They're making good progress with the regulatory authorities in terms of working towards an approval .
Speaker #5: We inherited these businesses and so we continue to work them . These are , early stage biotech companies . And so we're pretty you know , we're cautiously optimistic .
Speaker #5: I would say .
Speaker #8: Great . TP systems you know seems to be in some sort of imbroglio with with the United States government does anything that's going on between them and the US impact , you know , the value of our patent portfolio in that area and also , does that change the .
Speaker #8: The timing on on , you know , collecting our our judgment , we have against them .
Speaker #5: Yeah . So that that's a great question . Obviously there's a lot of geopolitical tension around not not that in particular , but but around the nations I would say one thing .
Speaker #5: The US appears to be more IP friendly in the new administration than it was previously . So I think that's a positive . We are you know , we have been awarded the the judgment in the TP-Link case , the the next step there is that the Federal Circuit wants to hear some oral arguments because TP-Link is trying to exercise all of their legal rights here .
Speaker #5: And so we still feel really good about it . I think the process is a little bit longer than we had hoped , but but it doesn't change our our views on the prospective outcome here .
Speaker #8: All right . Last one from me . There were some pretty high profile bankruptcies recently in the private equity space . Do you think these are canaries in the coal mine with more to follow or .
Speaker #8: These are one offs . And I ask that because if they're , you know , canaries in the coal mine . You may hold off on buying anything in the private equity space or if they want to , off , you know , will you be more aggressive in pursuing , you know , acquisition opportunities in private equity ?
Speaker #5: Yeah , I mean , I think you're talking about first brands and tricolor , which are they ? They are certainly one offs for different reasons .
Speaker #5: I think it's drawing more attention to the private credit space than it is to the private equity space . We we are seeing , you know , different developments in the private equity space .
Speaker #5: For example , and a handful of other industries . But this is why we keep our leverage low at Acacia . We come from private equity backgrounds .
Speaker #5: We've all put significant amounts of leverage on businesses . And you know , this type of an environment is exactly why we are very cautious and judicious with leverage .
Speaker #5: We are seeing an increasing number of private equity businesses being marketed because they have high levels of debt . We are starting to see multiples come down relative to the highly elevated multiples that sponsors were buying assets for and call it 2021 2022 .
Speaker #5: So I think the price discovery is getting better . You know , we still have a lot there's still a lot of uncertainty , interest rates are still high for guys that are putting five , six , seven turns of leverage on businesses .
Speaker #5: And it's still unclear for a lot of these companies what what the current administration and some of the trade policies mean for those businesses .
Speaker #5: So we are being very cautious about what we evaluate and how we evaluate it . We are we're seeing a lot of deal flow and we've , you know , kind of dug in on a handful of deals .
Speaker #5: And , you know , maybe we're not fully there on price discovery . But but we're we're we're where our expectations and sellers expectations were 4 to 5 turns a year 18 months ago maybe were within a turn turn and a half , maybe two .
Speaker #5: So it does feel like it's getting to a more normalized environment .
Speaker #8: Great . I'm going to drop back in queue . Thank you for taking my questions .
Speaker #5: Yeah of course . Nice to talk to you Brett .
Speaker #3: Your next question is coming from Todd Seltzer with 88 management LLC . Please post your question . Your line is live .
Speaker #9: Hey , Todd .
Speaker #3: Todd , your line is live .
Speaker #10: Sorry about that . Good morning gentlemen . Well done in Q3 leveraging off Brett's question , I appreciate it . Thank you MJ leveraging off Brett's questions in terms of the IP portfolio , we noticed a settlement after Q3 on Bantva .
Speaker #10: I think it happened somewhere in Q2 in the second week of October . With that number be reflected in our Q3 patent , 7 to 8 million top line or no .
Speaker #10: Yeah .
Speaker #5: Yeah , that is that's part of that $7.4 million settlement that I mentioned earlier .
Speaker #10: Gotcha . Okay . I thought it might be . Yeah , yeah , yeah . Okay . So Brett , did you know , expound on a couple of thoughts that I had and what I really wanted to discuss with you gentlemen now is really proud of the operating job everyone's doing .
Speaker #10: But so disappointed and disturbed at the lack of any reach out from the IR team to try to generate some interest in what we all consider a very attractive , undervalued equity .
Speaker #10: What ? Why has there been such little initiative put forward in that area ? And what do you plan on doing ? Moving forward to try to raise Acacia's profile amongst the the appropriate buy side vehicles out there that might be involved or interested in investing in Microcap group value ?
Speaker #5: question . And we were actually very deliberate in the way that we approached this . You know , when roll back a year ago , we didn't we didn't want to put our hands up in the air and say , hey , look at us .
Speaker #5: Look at us . Here's what we're going to go do . And so we we held off on IR , admittedly , so that we didn't look like carnival barkers subsequent to now benchmark with some quarters under our belt deflected with some quarters under our belt , having been turned around , showing you all that we can manage , the parent company G&A to a level that allows us with each incremental acquisition , to really scale that scale the earnings over the parent company .
Speaker #5: G&A , we have started reaching out . So we're having a lot of conversations with new investors . We presented at a couple conferences .
Speaker #5: We're continuing to get scheduled on the conference circuit to go tell the story and meet people . And we found that having conversations in person , even more so than over zoom , really engages people .
Speaker #5: And like you , people are interested in the story . It just takes a little bit of time with them in person to help them understand it .
Speaker #5: So we've been allocating a lot of time to that initiative , not just through conferences , but through , you know , Todd , folks that you know , that you think would be interested in this story , other shareholders .
Speaker #5: And so we do talk to existing shareholders a lot . We actually spent a lot of time talking about ideas with them for new acquisition opportunities .
Speaker #5: And we've we've gone on a pretty good outreach journey here to tell the story of new shareholders .
Speaker #10: That's encouraging . Now , how about on the sell side ? How far are we away from maybe onboarding 1 or 2 other analysts from other firms to try to get a better sense of who we are so they could also communicate our story and gain some more momentum in this direction .
Speaker #5: Yeah , we're we've talked to several . We've talked to several research groups about the story . What we don't want to do is force it , because we want to make sure that it's a natural fit .
Speaker #5: People are excited to pick us up , but there are , you know , their handful of folks that we're talking to about that , you know , as you know , with research , there's you stock has some volume in it , which is great .
Speaker #5: I think our volume is is bigger on an average daily basis than it was certainly a year or 18 months ago . But those guys want to get paid just like anybody else .
Speaker #5: And so , you know , we're we're working through that .
Speaker #10: Yeah . The ace in the hole that we have MJ is the starboard relationship . Since they own 60 plus percent . You would think that some of these sell side , you know , firms would want to maybe engender some goodwill .
Speaker #10: And the Acacia board Association should serve our best interest in that area .
Speaker #5: We're we're , you know , arm in arm with our brothers over at starboard on that point .
Speaker #10: Yeah . Okay . MJ , you guys are doing a great job on the operating side . But as shareholders , we're suffering .
Speaker #5: We're working on that for you , Todd .
Speaker #10: Appreciate it .
Speaker #5: Of course .
Speaker #3: Your next question is coming from Shelly Anthony with formidable Asset Management . Please post your question . Your line is live .
Speaker #11: Hi . Good morning . I'm filling in for Adam this morning . So we actually have a somewhat tangential question about your stake in Amo Pharma .
Speaker #11: The company Amo has recently announced several positive advancements and results in the last few months . And in light of that , can you tell me if that has changed your estimated valuation in any way or or prompted any interest from outside buyers ?
Speaker #5: Yeah . Hey , how .
Speaker #10: Are you .
Speaker #5: Doing ?
Speaker #9: That's a good question .
Speaker #5: Great .
Speaker #11: Okay .
Speaker #9: So we've not we've .
Speaker #5: Not changed . We've not changed our evaluation as a result of the news . I agree with you that Amo has has been active publicly on helping people understand the positive developments in the company .
Speaker #5: We we we have not changed our valuation . As I mentioned earlier , I think we're cautiously optimistic . We've you know , we've we've been around biotech space and and we've seen things work and we've seen things not work .
Speaker #5: I think Amo has a really interesting and necessary drug for a patient group that doesn't have a lot of other options . And both the safety and efficacy of their product are are , you know , are are great .
Speaker #5: They're , as I mentioned earlier , there's some news out there around dine and avidity , which have similar which have have similar solutions .
Speaker #5: And so that that makes us cautiously optimistic as well . But but all in all , we share the excitement . But we're not we're not marking our asset up as a result of that excitement .
Speaker #11: Okay . Fair enough . And so can you tell me if there's been any interest from from potential outside buyers ?
Speaker #5: No , I .
Speaker #9: Can't we can't share that process .
Speaker #11: Is okay . Fair enough . That was all I had . Thank you for taking my questions .
Speaker #9: Yeah . Of course .
Speaker #3: There are no questions in queue at this time . I would now like to turn the floor back over to MJ McNulty for closing remarks .
Speaker #9: Thanks , Kelly . Thanks again .
Speaker #5: To everyone for joining us this morning . We look forward to talking to everyone after Q4 .
Speaker #3: Thank you everyone . This does conclude today's conference call . You may disconnect your phone lines at this time and have a wonderful day .