Company: ACTG
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000934549-25-000042
Chunk: 210

Company: ACACIA RESEARCH CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 210
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 30, 2025 and 2024, respectively. Cash receipts from Deflecto’s customers totaled $57.4 million for the six months ended June 30, 2025. The fluctuations in cash receipts for the periods presented primarily reflects the corresponding fluctuations in revenues recognized during the same periods, as described above, and the related timing of payments received from licensees and customers.

Our reported cash provided by operations for the six months ended June 30, 2025 was $52.5 million, compared to $71.0 million in the comparable prior year period. The decrease in cash provided by operations was primarily due to net inflows from the total changes in assets and liabilities (refer to Working Capital discussion below), decrease in accounts receivable, decrease in inventories, decrease in prepaid expense and other assets, decrease in accounts payable, increase in royalties and contingent legal fees payable and by the total change in net income (described above) and related noncash adjustments.

Working Capital

Our working capital related to cash flows from operating activities at June 30, 2025 decreased to $18.6 million, compared to $36.7 million at December 31, 2024, which was comprised of the changes in assets and liabilities presented above. The decrease is primarily due to the change in accounts receivable and prepaid expenses, which is related to the timing of the cash receipts related to Intellectual Property Operations Business. 

Cash Flows from Investing Activities

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

Six Months Ended June 30,20252024(In thousands)Acquisition, net of cash acquired and working capital adjustments (Note 3)$1,230 $— Patent acquisition— (9,000)Purchases of equity securities(12,543)(15,544)Sales of equity securities15,165 57,854 Purchases of property and equipment(940)(508)Net additions to oil and gas properties(3,363)(142,635)Net cash used in investing activities$(451)$(109,833)

Cash outflows from investing activities for the six months ended June 30, 2025 was $0.5 million, as compared to cash outflows of $109.8 million in the prior year, primarily due to the 2024 net cash outflows related to the acquisition of  the Revolution assets offset by cash inflows from the sale of Arix shares. 

Cash Flows from Financing Activities

Cash flows from