Company: ACTG
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0000934549-25-000004
Chunk: 74

Company: ACACIA RESEARCH CORP
Filing Date: 2025-03-17
Form: 10-K
Item: Item 7
Chunk 74
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73

Cash Flows from Financing Activities

Cash flows from financing activities included the following for the periods presented:

Years Ended December 31,20242023(In thousands)Repurchase of common stock$(20,288)$— Paydown of Senior Secured Notes— (60,000)Contributions from noncontrolling interest15,250 — Borrowings on the Revolving credit facility86,010 — Paydown of Revolving Credit Facility(30,035)(7,700)Borrowings on the Term Loan47,488 — Dividend on Series A Redeemable Convertible Preferred Stock— (1,400)Taxes paid related to net share settlement of share-based awards(1,092)(614)Proceeds from Rights Offering— 79,111 Proceeds from exercise of Series B warrants— 49,000 Proceeds from exercise of stock options223 235 Net cash provided by financing activities$97,556 $58,632 

Cash inflows from financing activities for the year ended December 31, 2024 increased to $97.6 million, as compared to cash inflows of $58.6 million in the prior year, primarily due to net cash inflows from borrowings on the Benchmark Revolving Credit Facility and Deflecto Term Loan and contributions from noncontrolling interest related to the Revolution Transaction. The increases were partially offset by decreases due to repurchases of common stock and proceeds in 2023 from a rights offering and exercise of warrants which were non-recurring. Refer to Notes 1, 3 and 11 to the consolidated financial statements elsewhere herein for additional information regarding the Revolution Transaction, Benchmark Revolving Credit Facility and Deflecto Term Loan. Refer to Note 16 to the consolidated financial statements elsewhere herein for additional information regarding the repurchase of common stock.

Critical Accounting Estimates

Our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. In preparing these financial statements, we make assumptions, judgments and estimates that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. We base our assumptions, judgments and estimates on historical experience and various other factors that we believe to be reasonable under the circumstances. Actual results could differ materially from these estimates under different assumptions or conditions. On a regular basis, we evaluate our assumptions, judgments and estimates and make changes accordingly.

We believe that of the significant accounting policies