Company: ACTG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000934549-25-000021
Chunk: 1

Company: ACACIA RESEARCH CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2
Chunk 1
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4. The table above also includes our Manufacturing Operations general and administrative expenses for the three months ended March 31, 2025, with no comparable period as the transaction closed in October 2024.

The increase in variable performance-based compensation costs was primarily due to fluctuations in performance-based compensation. The decrease in other general and administrative costs, which relates to our parent company and our Intellectual Property Operations, were primarily due to a decrease in corporate legal fees. The increase in compensation expense for share-based awards was primarily due to compensation expense incurred related to PSUs granted in 2023 based on a probability assessment regarding their vesting performed as of March 31, 2025. Refer to Note 17 to the condensed consolidated financial statements elsewhere herein for additional information regarding compensation expense. The decrease in general and administrative costs of Industrial Operations is due to Printronix’s initiative to reduce costs and operate more efficiently. In addition, our Energy Operations related general and administrative costs contributed an increase of $1.2 million and Manufacturing Operations related general and administrative costs and amortization of intangible assets contributed $5.2 million and $472,000, respectively, in each case driven by the acquisitions of Revolution and Deflecto. Refer to additional general and administrative change explanations above.

Other Income/Expense 

Equity Securities Investments

Three Months EndedMarch 31,20252024$ Change% Change(In thousands, except percentage change values)Change in fair value of equity securities$(4,777)$(26,701)$21,924 (82 %)Gain on sale of equity securities1,605 28,861 (27,256)(94 %)Total net realized and unrealized gain$(3,172)$2,160 $(5,332)(247 %)

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 an unrealized loss from the change in fair value of our equity securities, and included realized gain 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