Company: ACTG
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000934549-25-000042
Chunk: 205

Company: ACACIA RESEARCH CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 205
---
 costs and operate more efficiently. In addition, our Energy Operations related general and administrative costs contributed an increase of $1.3 million and Manufacturing Operations related general and administrative costs and amortization of intangible assets contributed $9.9 million and $0.9 million, respectively, in each case driven by the acquisitions of Revolution and Deflecto in 2024. Refer to additional general and administrative change explanations above.

Other Income/Expense 

Equity Securities Investments

Three Months EndedJune 30,Six Months EndedJune 30,20252024$ Change% Change20252024$ Change% Change(In thousands, except percentage change values)Change in fair value of equity securities$2,219 $(4,744)$6,963 (147%)$(2,558)$(31,445)$28,887 (92%)Gain on sale of equity securities1,907 — 1,907 n/a3,512 28,861 (25,349)(88%)Total net realized and unrealized gain (loss)$4,126 $(4,744)$8,870 (187%)$954 $(2,584)$3,538 (137%)

58

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 unrealized gains and losses from the change in fair value of our equity securities, and included realized gains 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 expense

Three Months EndedJune 30,Six Months EndedJune 30,20252024$ Change% Change20252024$ Change% Change(In thousands, except percentage change values)Non-recurring legacy legal expense$— $(6,613)$6,613 (100%)$— $(12,856)$12,856 (100%)

Non-recurring legacy legal expense incurred in the three and six month period June 30, 2024 is related to a dispute involving former executives (the “AIP Matter”). There