Company: ACTG
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000934549-25-000042
Chunk: 197

Company: ACACIA RESEARCH CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 197
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 of $47.1 million for the six months ended June 30, 2024 as the Deflecto acquisition closed in the fourth quarter of 2024 and there is no comparable period expense.

•General and administrative expenses increased $10.3 million, from $22.6 million to $32.9 million in 2025, primarily due to our Manufacturing Operations which was acquired in the fourth quarter of 2024 and contributed $10.8 million of general administrative costs for six months ended June 30, 2025.  Energy Operations general and administrative expenses increased $1.3 million due to 2025 including a full six months of activity for the assets acquired in the Revolution Transaction in April 2024. The increases were partially offset by a decrease in our Industrial Operations general and administrative costs. Refer to “General and Administrative Expenses” below for further detail and discussion.

•Unrealized loss from the change in fair value of our equity securities was $2.6 million in 2025, as compared to an unrealized loss of $31.4 million in the comparable prior year period. The unrealized loss was derived from our Life Sciences Portfolio and trading securities portfolio. The 2024 period unrealized loss primarily relates to the reversal of unrealized gains previously recorded for Arix shares sold in January 2024 for realized gains. 

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•Realized gain from the sale of equity securities was $3.5 million in 2025, as compared to a realized gain of $28.9 million in the prior year. The realized gains were similarly derived from the sales activity from our Life Sciences Portfolio and trading securities portfolio. The 2024 period realized gains primarily relates to the Arix shares sold in January 2024. Refer to Note 4 to the consolidated financial statements elsewhere herein for additional information regarding the sale of Arix shares and refer to “Equity Securities Investments” below for further discussion.

•Non-recurring legacy legal expense in 2024 is related to the AIP Matter (as defined in Note 15 to the consolidated financial statements elsewhere herein). There were no comparable expenses for the six months ended June 30, 2025.

•Gain on derivatives was $1.6 million in 2025, as compared to a loss of $2.5 million in the prior year due to the commodity derivative activities contributed from our Energy Operations. Refer to Note 13 for additional information regarding Benchmark’s gain and loss on its commodity derivatives.

•Interest expense increased $2