Company: ACTG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000934549-25-000021
Chunk: 4

Company: ACACIA RESEARCH CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2
Chunk 4
---
 by our operating subsidiaries, may suffer.

Cash, Cash Equivalents and Investments

Our consolidated cash, cash equivalents and equity securities totaled $290.0 million at March 31, 2025, compared to $297.0 million at December 31, 2024. 

The Benchmark Revolving Credit Facility and Deflecto Revolving Credit Facility include covenants potentially limiting our borrowing capacity as determined by a leverage ratio. As of March 31, 2025, we were in compliance with all financial covenants applicable to our debt agreements. Refer to Note 11 to the accompanying condensed consolidated financial statements for additional information.

Cash Flows Summary 

The net change in cash and cash equivalents for the periods presented was comprised of the following:

Three Months Ended March 31,20252024(In thousands)Net cash (used in) provided by:Operating activities$2,425 $54,839 Investing activities1,039 42,040 Financing activities(6,071)1,826 Effect of exchange rates on cash and cash equivalents691 (34)(Decrease) increase in cash and cash equivalents$(1,916)$98,671 

56

Cash Flows from Operating Activities

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

Three Months Ended March 31,20252024(In thousands)Net income (loss) including noncontrolling interests in subsidiaries$23,528 $(189)Adjustments to reconcile net loss including noncontrolling interests in   subsidiaries to net cash provided by (used in) operating activities:Depreciation, depletion and amortization10,610 4,568 Accretion of asset retirement obligation434 — Compensation expense for share-based awards922 858 (Gain) loss on foreign currency exchange(155)18 Change in fair value of equity securities4,777 26,701 Gain on sale of equity securities(1,605)(28,861)Unrealized loss on derivatives4,978 629 Deferred income taxes, net of acquired net deferred tax assets3,323 (3,652)Changes in assets and liabilities:Accounts receivable(68,814)65,156 Inventories1,220 1,041 Prepaid expenses and other assets728 (10,752)Accounts payable and accrued expenses1,223 7,108 Royalties and contingent legal fees payable21,249 (7,811