Company: ACTG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000934549-25-000021
Chunk: 171

Company: ACACIA RESEARCH CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 171
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 2024. Refer to Note 2 to the condensed consolidated financial statements elsewhere herein for additional information regarding Printronix’s and Deflecto’s operating expenses.

General and Administrative Expenses

A summary of the main drivers of the increases (decreases) in general and administrative expenses is as follows:

Three Months EndedMarch 31,2025 vs. 2024(In thousands)Other general and administrative costs(2,037)General and administrative costs - energy operations1,222 Depreciation and amortization - manufacturing operations1,544 Other general and administrative costs - manufacturing operations3,692 

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General and administrative expenses include employee compensation and related personnel costs, including variable performance based compensation and compensation expense for share-based awards, office and facilities costs, legal and accounting professional fees, public relations, stock administration, business development, fixed asset depreciation, amortization of Industrial Operations and Manufacturing Operations’ intangible assets, and other corporate costs. The periods presented above include an increase in Energy Operations’ general administrative expenses for the quarter following our acquisition of Revolution in April 2024. The table above also includes our Manufacturing Operations general and administrative expenses for the three months ended March 31, 2025, with no comparable period as the transaction closed in October 2024.

The increase in variable performance-based compensation costs was primarily due to fluctuations in performance-based compensation. The decrease in other general and administrative costs, which relates to our parent company and our Intellectual Property Operations, were primarily due to a decrease in corporate legal fees. The increase in compensation expense for share-based awards was primarily due to compensation expense incurred related to PSUs granted in 2023 based on a probability assessment regarding their vesting performed as of March 31, 2025. Refer to Note 17 to the condensed consolidated financial statements elsewhere herein for additional information regarding compensation expense. The decrease in general and administrative costs of Industrial Operations is due to Printronix’s initiative to reduce costs and operate more efficiently. In addition, our Energy Operations related general and administrative costs contributed an increase of $1.2 million and Manufacturing Operations related general and administrative costs and amortization of intangible assets contributed $5.2 million and $472,000, respectively, in each case driven by the acquisitions of Revolution and Deflecto. Refer to additional general and administrative change explanations above.

Other Income/Expense 

Equity Securities Investments

Three Months EndedMarch 31,20252024$ Change% Change(In thousands, except percentage change values)Change in fair