Company: ACTG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000934549-25-000021
Chunk: 5

Company: ACACIA RESEARCH CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2
Chunk 5
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)Deferred revenue7 25 Net cash provided by operating activities$2,425 $54,839 

Cash receipts from ARG’s licensees totaled $1.0 million and $77.5 million for the three months ended March 31, 2025 and 2024, respectively. Cash receipts from Printronix's customers totaled $8.1 million and $8.5 million for the three months ended March 31, 2025 and 2024, respectively. Cash receipts from Benchmark’s customers totaled $18.7 million and $1.3 million for the three months ended March 31, 2025 and 2024, respectively. Cash receipts from Deflecto’s customers totaled $27.8 million for the three months ended March 31, 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 three months ended was $2.4 million, compared to $54.8 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), increase in accounts receivable, decrease in inventories, decrease in prepaid expense and other assets, increase 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 March 31, 2025 increased to $62.4 million, compared to $36.7 million at December 31, 2024, which was comprised of the changes in assets and liabilities presented above. The increase is primarily due to change in accounts receivable and royalties and contingent legal fees payable, which is related to the timing of the cash receipts related to Intellectual Property Operations Business. The increase in working capital is offset by a decrease in prepaid expenses. 

57

Cash Flows from Investing Activities

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

Three Months Ended March 31,20252024(In thousands)Purchases of equity securities$(4,827)$(15,544)Sales of equity securities6,726 57,854 Acquisition, net of cash acquired and working capital adjustments (Note 3)1,230