Company: ACTG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000934549-25-000021
Chunk: 174

Company: ACACIA RESEARCH CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 174
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 be sufficient to meet our cash requirements through at least twelve months from the date of this Quarterly Report and for the foreseeable future. We may, however, encounter unforeseen difficulties that may deplete our capital resources more rapidly than 

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anticipated, including those set forth under Item 1A, “Risk Factors” in our 2024 Annual Report. Any efforts to seek additional funding could be made through issuances of equity or debt, or other external financing. However, additional funding may not be available to us on favorable terms, or at all. The capital and credit markets have experienced extreme volatility and disruption in recent years, and the volatility and impact of the disruption may continue. At times during this period, the volatility and disruption has reached unprecedented levels. In several cases, the markets have exerted downward pressure on stock prices and credit capacity for certain issuers, and the commercial paper markets may not be a reliable source of short-term financing for us. If we fail to obtain additional financing when needed, we may not be able to execute our business plans and our business, conducted by our operating subsidiaries, may suffer.

Cash, Cash Equivalents and Investments

Our consolidated cash, cash equivalents and equity securities totaled $290.0 million at March 31, 2025, compared to $297.0 million at December 31, 2024. 

The Benchmark Revolving Credit Facility and Deflecto Revolving Credit Facility include covenants potentially limiting our borrowing capacity as determined by a leverage ratio. As of March 31, 2025, we were in compliance with all financial covenants applicable to our debt agreements. Refer to Note 11 to the accompanying condensed consolidated financial statements for additional information.

Cash Flows Summary 

The net change in cash and cash equivalents for the periods presented was comprised of the following:

Three Months Ended March 31,20252024(In thousands)Net cash (used in) provided by:Operating activities$2,425 $54,839 Investing activities1,039 42,040 Financing activities(6,071)1,826 Effect of exchange rates on cash and cash equivalents691 (34)(Decrease) increase in cash and cash equivalents$(1,916)$98,671 

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Cash Flows from Operating Activities

Cash flows from operating activities were comprised of the following for the periods presented:

Three Months Ended March 31,20252024(In thousands)Net income (loss) including noncontrolling interests in subsidiaries$23,