Company: ACTG
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000934549-25-000042
Chunk: 199

Company: ACACIA RESEARCH CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 199
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 that provides for quarterly sales-based license fees, decreased $0.1 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, due to the expiration of certain on-going license arrangements. Paid-up revenue increased $52.2 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 due to an increase in average license fees per agreement. Recurring revenue, that provides for quarterly sales-based license fees, decreased $1.0 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, due to the expiration of certain on-going license arrangements. 

Refer to Note 2 to the consolidated financial statements elsewhere herein for additional information regarding our revenue arrangements and related concentrations for the periods presented herein.

Refer to “Investments in Patent Portfolios” above for information regarding the impact of portfolio acquisition trends on current and future licensing and enforcement related revenues.

54

Cost of Revenues

Three Months EndedJune 30,Six Months EndedJune 30,20252024$ Change% Change20252024$ Change% Change(In thousands, except percentage change values)Inventor royalties$154 $802 $(648)(81%)$16,695 $1,408 $15,287 1,086%Contingent legal fees18 571 (553)(97%)4,816 2,395 2,421 101%Litigation and licensing expenses972 1,152 (180)(16%)3,026 2,290 736 32%Amortization of patents5,414 3,240 2,174 67%9,933 6,673 3,260 49%Total$6,558 $5,765 $793 14%$34,470 $12,766 $21,704 170%

The economic terms of patent portfolio related partnering agreements and contingent legal fee arrangements, if any, including royalty obligations, if any, royalty rates, contingent fee rates and other terms and conditions, vary across the patent portfolios owned or controlled by our operating subsidiaries. In certain instances, we have invested in certain patent portfolios without future patent partner royalty obligations. The costs associated with the forementioned obligations fluctuate period to period, based on the amount of revenues recognized each period, the terms and conditions of revenue agreements executed each