Amidst all the discussion about the convertible notes and the possible dilution, I have one thought/question about the objective to the stock buyback and the conversion of the notes to shares of stock in 2024 and 2027. Just FYI...I have no accounting background.
At the conclusion, IMO and correct me in how I am wrong, as of the September 30, 2023 valuation, IDCC will have added over $675 million in cash to the balance sheet according to the total Fair Value amount for both convertible notes. IDCC will have over "1 billion" in cash. A strong cash position along with good financial fundamentals (revenue, profit, and cash flow) should make IDCC a solid investment and even stronger potential for a buyout, i.e. Broadcomm (AVGO) also sells and/or licenses WiFi, HEVC, and wireless technologies that would potentially be a good fit with Broadcomm's target market in these areas, or maybe Apple, or maybe just take IDCC private when one thinks about the increased revenue possibilities from video streaming. Are we making a possible mountain out of just a possible mole hill in terms of dilution? JMHO.
Fair Value of Long-Term Debt Convertible Notes The principal amount, carrying value and related estimated fair value of the Company's Convertible Notes reported as of September 30, 2023 and December 31, 2022 was as follows (in thousands). The aggregate fair value of the principal amount of the Convertible Notes is a Level 2 fair value measurement. September 30, 2023 December 31, 2022 Principal Carrying Fair Principal Carrying Fair Amount Value Value Amount Value Value 2027 Senior Convertible Long-Term Debt $ 460,000 $ 452,377 $ 541,328 $ 460,000 $ 451,062 $ 441,485 2024 Senior Convertible Long-Term Debt $ 126,174 $ 125,774 $ 134,060 $ 126,174 $ 125,342 $ 119,941
