Company: ACTG
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000934549-25-000042
Chunk: 211

Company: ACACIA RESEARCH CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 211
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 financing activities included the following for the periods presented:

Six Months Ended June 30,20252024(In thousands)Contributions from noncontrolling interest$— $15,250 Borrowings on the Benchmark revolving credit facility— 71,475 Paydown of Benchmark revolving credit facility(8,500)— Paydown of Deflecto term loan(1,200)— Taxes paid related to net share settlement of share-based awards(670)(1,068)Proceeds from exercise of stock options30 223 Net cash (used in) provided by financing activities$(10,340)$85,880 

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Cash outflows from financing activities for the six months ended June 30, 2025 were $10.3 million, as compared to cash inflows of $85.9 million in the prior year, primarily due to borrowings on the revolving credit facility in the prior year which did not recur during the six months ended June 30, 2025 and paydowns on the Benchmark Revolving Credit Facility and Deflecto Term Loan during the six months ended June 30, 2025. Refer to Note 11 to the consolidated financial statements elsewhere herein for additional information regarding the Benchmark Revolving Credit Facility and Deflecto Term Loan. 

Critical Accounting Estimates

Our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. In preparing these financial statements, we make assumptions, judgments and estimates that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. We base our assumptions, judgments and estimates on historical experience and various other factors that we believe to be reasonable under the circumstances. Actual results could differ materially from these estimates under different assumptions or conditions. On a regular basis, we evaluate our assumptions, judgments and estimates and make changes accordingly.

We believe that of the significant accounting policies discussed in Note 2 included in our 2024 Annual Report, the following accounting policies require our most difficult, subjective or complex assumptions, judgments and estimates:

•revenue recognition;

•estimates of crude oil and natural gas reserves;

•valuation of long-lived assets, goodwill and other intangible assets; and

•accounting for income taxes.

Our critical accounting estimates have not changed materially from those disclosed in the Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2024 Annual Report. For further information on the significant accounting policies related to the revenue