Company: ACTG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000934549-25-000021
Chunk: 176

Company: ACACIA RESEARCH CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 176
---
 royalties and contingent legal fees payable and by the total change in net income (described above) and related noncash adjustments.

Working Capital

Our working capital related to cash flows from operating activities at March 31, 2025 increased to $62.4 million, compared to $36.7 million at December 31, 2024, which was comprised of the changes in assets and liabilities presented above. The increase is primarily due to change in accounts receivable and royalties and contingent legal fees payable, which is related to the timing of the cash receipts related to Intellectual Property Operations Business. The increase in working capital is offset by a decrease in prepaid expenses. 

57

Cash Flows from Investing Activities

Cash flows from investing activities were comprised of the following for the periods presented:

Three Months Ended March 31,20252024(In thousands)Purchases of equity securities$(4,827)$(15,544)Sales of equity securities6,726 57,854 Acquisition, net of cash acquired and working capital adjustments (Note 3)1,230 — Purchases of property and equipment and additions to oil and gas properties(2,090)(270)Net cash provided by investing activities$1,039 $42,040 

Cash inflows from investing activities for the three months ended March 31, 2025 was $1.0 million, as compared to cash inflows of $42.0 million in the prior year, primarily due to the net cash inflows from our trading securities portfolio equity securities transactions and sale of Arix shares. Refer to “Other Income/Expense – Equity Securities Investments” above and Note 4 to the condensed consolidated financial statements elsewhere herein for additional information related to Life Sciences Portfolio.

Cash Flows from Financing Activities

Cash flows from financing activities included the following for the periods presented:

Three Months Ended March 31,20252024(In thousands)Borrowings on the Revolving credit facility$— $2,500 Paydown of Revolving Credit Facility(5,000)— Paydown of Term Loan(600)— Taxes paid related to net share settlement of share-based awards(471)(674)Net cash (used in) provided by financing activities$(6,071)$1,826 

Cash outflows from financing activities for the three months ended March 31, 2025 increased to $6.1 million, as compared to cash inflows of $1.8 million in the prior year, primarily due to pay