Company: ACTG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000934549-25-000021
Chunk: 90

Company: ACACIA RESEARCH CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 90
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 %Litigation and licensing expenses2,054 1,138 916 80 %Amortization of patents4,519 3,433 1,086 32 %Total$27,912 $7,001 $20,911 299 %

The economic terms of patent portfolio related partnering agreements and contingent legal fee arrangements, if any, including royalty obligations, if any, royalty rates, contingent fee rates and other terms and conditions, vary across the patent portfolios owned or controlled by our operating subsidiaries. In certain instances, we have invested in certain patent portfolios without future patent partner royalty obligations. The costs associated with the forementioned obligations fluctuate period to period, based on the amount of revenues recognized each period, the terms and conditions of revenue 

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agreements executed each period and the mix of specific patent portfolios, with varying economic terms and conditions, generating revenues each period.

Litigation and licensing expenses include patent-related litigation, enforcement and prosecution costs incurred by law firms and external patent attorneys engaged on either an hourly basis or a contingent fee basis. Litigation and licensing expenses also includes third-party patent research, development, patent prosecution and maintenance fees, re-exam and inter partes reviews, consulting and other costs incurred in connection with the licensing and enforcement of patent portfolios. 

Industrial Operations

Revenues

Printronix's net revenues for the periods presented included the following:

Three Months EndedMarch 31,20252024$ Change% Change(In thousands, except percentage change value)Printers and parts$2,897 $3,065 $(168)(5 %)Consumable products4,006 5,013 (1,007)(20 %)Services773 763 10 1 %Total$7,676 $8,841 $(1,165)(13 %)

For the periods presented above, the majority of the contract agreements executed in the relevant period include various combinations of tangible products (which include printers, consumables and parts) and services. Revenue from printers and parts and consumable products for the three months ended decreased $0.2 million and $1.0 million, respectively compared to the three months ended March 31, 2024, due to a decrease in the number of printer units and consumable products sold. Refer to Note 2 to the condensed consolidated financial statements elsewhere herein for additional information regarding Printronix’s revenue arrangements and related concentrations. 

Cost of Revenues

Three Months EndedMarch 31,202520