Company: ACTG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000934549-25-000021
Chunk: 88

Company: ACACIA RESEARCH CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 88
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 million for the three months ended March 31, 2025, as compared to loss of $1.3 million in the comparable prior period. The net increase was comprised of the change in total revenues described above and other changes in operating expenses and other income or expense for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 as follows:

•Inventor royalties increased $15.9 million, from $606,000 to $16.5 million in the first quarter of 2025, primarily due to license agreement activity and related revenues generated with inventor royalty obligations.

•Litigation and licensing expenses increased $0.9 million, from $1.1 million to $2.1 million in the first quarter of 2025, primarily due to a net increase in litigation support and third-party technical consulting expenses associated with ongoing litigation. 

•Printronix cost of sales, engineering and development expenses, and sales and marketing expenses remained relatively flat at $5.7 million in the first quarter of 2025 and the comparable prior period. 

•Benchmark’s cost of production for the first quarter of 2025 added an additional $11.4 million to our consolidated operating expenses. 

•General and administrative expenses increased $4.8 million, to $17.3 million in the first quarter of 2025 from $12.5 million in the first quarter of 2024, primarily due to expenses contributed from our new Manufacturing Operations of $5.7 million for the first quarter of 2025, offset by lower parent company legal fees. 

•Compensation expense for share-based awards, included in general and administrative expenses above, increased $64,000, to $922,000 in the first quarter of 2025 from $858,000 in comparable prior year period, primarily due to expense recorded for the performance based awards.

•Unrealized loss from the change in fair value of our equity securities was $4.8 million in the first quarter of 2025, as compared to an unrealized gain of $26.7 million in the comparable prior year period. The unrealized loss and gain were derived from our Life Sciences Portfolio and our trading securities portfolio. 

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•Non-recurring legacy legal expense of $6.2 million in the first quarter of 2024 is related to a dispute involving former executives (the “AIP Matter”). 

•Loss on derivatives was $5.0 million in the first