Company: ACTG
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000934549-25-000042
Chunk: 78

Company: ACACIA RESEARCH CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 78
---
 increases were partially offset by a decrease in our Industrial Operations general and administrative costs. Refer to “General and Administrative Expenses” below for further detail and discussion.

•Unrealized loss from the change in fair value of our equity securities was $2.6 million in 2025, as compared to an unrealized loss of $31.4 million in the comparable prior year period. The unrealized loss was derived from our Life Sciences Portfolio and trading securities portfolio. The 2024 period unrealized loss primarily relates to the reversal of unrealized gains previously recorded for Arix shares sold in January 2024 for realized gains. 

53

•Realized gain from the sale of equity securities was $3.5 million in 2025, as compared to a realized gain of $28.9 million in the prior year. The realized gains were similarly derived from the sales activity from our Life Sciences Portfolio and trading securities portfolio. The 2024 period realized gains primarily relates to the Arix shares sold in January 2024. Refer to Note 4 to the consolidated financial statements elsewhere herein for additional information regarding the sale of Arix shares and refer to “Equity Securities Investments” below for further discussion.

•Non-recurring legacy legal expense in 2024 is related to the AIP Matter (as defined in Note 15 to the consolidated financial statements elsewhere herein). There were no comparable expenses for the six months ended June 30, 2025.

•Gain on derivatives was $1.6 million in 2025, as compared to a loss of $2.5 million in the prior year due to the commodity derivative activities contributed from our Energy Operations. Refer to Note 13 for additional information regarding Benchmark’s gain and loss on its commodity derivatives.

•Interest expense increased $2.6 million, from $2.1 million to $4.8 million in 2025, primarily due to the interest expense incurred in relation to the Benchmark Revolving Credit Facility and the Deflecto Facility. Interest expense from the Benchmark Revolving Credit Facility included six months of interest expense in 2025 compared to an approximate two month period in the prior year for the Revolution transaction which was partially funded by borrowings under the Revolving Credit Facility. Interest expense also increased for post-acquisition related interest expense on the Deflecto Facility. Refer to Note 11 to the consolidated financial statements elsewhere herein for additional information regarding the Benchmark Revolving Credit Facility and the Deflecto Facility. 

•Interest income decreased $4.6 million