Company: ACTG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000934549-25-000021
Chunk: 89

Company: ACACIA RESEARCH CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 89
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 quarter of 2025, as compared to a $171,000 in the comparable prior year period due to the commodity derivative activities contributed from our Energy Operations. Refer to Note 13 for additional information regarding Benchmark’s commodity derivatives.

•Interest expense of $2.5 million for the three months ended March 31, 2025 related to the Benchmark Revolving Credit Facility  and the Deflecto Term Loan. 

Intellectual Property Operations

Revenues

ARG’s revenue activity for the periods presented included the following:

Three Months EndedMarch 31,20252024$ Change% Change(In thousands, except percentage change values and count totals)Paid-up license revenue agreements$69,490 $12,365 $57,125 462 %Recurring license revenue agreements415 1,258 (843)(67 %)Total revenues$69,905 $13,623 $56,282 413 %New license agreements executed2 6 (4)(67 %)Licensing and enforcement programs   generating revenues6 6 — — %

For the periods presented above, the majority of the revenue agreements executed during the relevant period provided for the payment of one-time, paid-up license fees in consideration for the grant of certain IP Rights for patented technology owned by our operating subsidiaries. These rights were primarily granted on a perpetual basis, extending until the expiration of the underlying patents. Paid-up revenue increased $57.1 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 due to an increase in average license fees per agreement. Recurring revenue, that provides for quarterly sales-based license fees, decreased $0.8 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, from various on-going license arrangements.

Refer to Note 2 to the condensed consolidated financial statements elsewhere herein for additional information regarding our revenue arrangements and related concentrations for the periods presented herein.

Refer to “Investments in Patent Portfolios” above for information regarding the impact of portfolio acquisition trends on current and future licensing and enforcement related revenues.

Cost of Revenues

Three Months EndedMarch 31,20252024$ Change% Change(In thousands, except percentage change values)Inventor royalties$16,541 $606 $15,935 2,630 %Contingent legal fees4,798 1,824 2,974 163