Company: ACTG
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000934549-25-000042
Chunk: 98

Company: ACACIA RESEARCH CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 98
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 thousands, except percentage change values)Change in fair value of equity securities$2,219 $(4,744)$6,963 (147%)$(2,558)$(31,445)$28,887 (92%)Gain on sale of equity securities1,907 — 1,907 n/a3,512 28,861 (25,349)(88%)Total net realized and unrealized gain (loss)$4,126 $(4,744)$8,870 (187%)$954 $(2,584)$3,538 (137%)

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Table of Contents

Our equity securities investments, including the Life Sciences Portfolio and trading securities portfolio, are recorded at fair value at each balance sheet date. During the first quarter of 2024, Acacia fully exited its position in Arix. Refer to periodic change explanations above. Refer to Notes 2 and 4 to the consolidated financial statements elsewhere herein for additional information regarding our investment in the Life Sciences Portfolio and other equity securities.

Our results included unrealized gains and losses from the change in fair value of our equity securities, and included realized gains from the sale of our equity securities. These changes were derived from our Life Sciences Portfolio and trading securities portfolio. The 2024 period unrealized loss and realized gain primarily relates to the sale of Arix shares.

Non-recurring legacy legal expense

Three Months EndedJune 30,Six Months EndedJune 30,20252024$ Change% Change20252024$ Change% Change(In thousands, except percentage change values)Non-recurring legacy legal expense$— $(6,613)$6,613 (100%)$— $(12,856)$12,856 (100%)

Non-recurring legacy legal expense incurred in the three and six month period June 30, 2024 is related to a dispute involving former executives (the “AIP Matter”). There were no comparable expenses for the three and six months ended June 30, 2025.

Income Taxes

Three Months EndedJune 30,Six Months EndedJune 30,20252024$ Change% Change20252024$ Change% Change(In thousands, except percentage change values)Income tax (expense) benefit$(547)$7,061 $(7,608)(108%)$(6,628)$8,170 $(14,798)(181%)Effective tax rate61 %(44)%n/a105 %(23)%(48)%n/a25 %

Our