Company: ACTG
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000934549-25-000042
Chunk: 75

Company: ACACIA RESEARCH CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 75
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 million to $51.2 million for the three months ended June 30, 2025, as compared to $25.8 million for the three months ended June 30, 2024, due to increases in our Manufacturing Operations revenue and Energy Operations revenue from the recent acquisitions (refer to Note 3) and an increase in Industrial Operations revenues by $0.3 million. The increases were offset by a decrease in Intellectual Property Operations revenues of $5.0 million.

Loss before income taxes was $0.9 million for the three months ended June 30, 2025, as compared to loss of $15.9 million in the comparable prior period. The net increase comprised the change in total revenues described above and other changes in operating expenses and other income or expense for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024 as follows:

•Cost of revenues for the Intellectual Property Operations increased by $792,000 primarily due to a $2.2 million increase in patent amortization expense for the 2025 patent portfolio acquisition offset by a decrease in inventor royalties and contingent legal fees due to a decrease in license agreement activity. 

•Energy Operations cost of production for the second quarter of 2025 increased by $2.3 million due to a full quarter of activity for the assets acquired in the Revolution Transaction in April 2024. 

•Manufacturing Operations cost of revenues for the second quarter of 2025 added an additional $22.4 million to our consolidated operating expenses as the Deflecto acquisition closed in the fourth quarter of 2024 and there is no comparable period.

•General and administrative expenses increased $5.4 million, to $15.5 million in the three months ended June 30, 2025 from $10.1 million in the comparable prior year period, primarily due to expenses contributed from Manufacturing Operations of $5.1 million for the second quarter of 2025. 

•Unrealized gain from the change in fair value of our equity securities was $2.2 million in the three months ended June 30, 2025, as compared to an unrealized loss of $4.7 million in the comparable prior year period. The unrealized loss and gain were derived from our Life Sciences Portfolio and our trading securities portfolio. 

•Non-recurring legacy legal expense in the three months ended June 30, 2024 of $6.6 million is related to a dispute involving former