Company: ACTG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000934549-25-000021
Chunk: 6

Company: ACACIA RESEARCH CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2
Chunk 6
---
 — 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 paydowns on the Benchmark Revolving Credit Facility and Deflecto Term Loan. Refer to Notes 11 to the condensed 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;

•est