Company: ACTG
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000934549-25-000042
Chunk: 45

Company: ACACIA RESEARCH CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 45
---
 30, 2025 and December 31, 2024:Equity Securities. Equity securities includes investments in public company common stock and are recorded at fair value based on the quoted market price of each share on the valuation date. The fair value of these securities are within Level 1 of the valuation hierarchy. Equity investments that do not have regular market pricing, but for which fair value can be determined based on other data values or market prices, are recorded at fair value within Level 2 of the valuation hierarchy.

30

Commodity Derivative Instruments: Commodity derivative instruments are recorded at fair value using industry standard models using assumptions and inputs which are substantially observable in active markets throughout the full term of the instruments. These include market price curves, quoted market prices in active markets, credit risk adjustments, implied market volatility and discount factors. The fair value of these instruments are within Level 2 of the valuation hierarchy. During 2024, Benchmark executed derivative contracts with counterparties and also executed an International Swap Dealers Association Master Agreement (“ISDA”) with its counterparties. The net aggregate fair value of the open commodity derivatives assets was $2.9 million and $2.1 million as of June 30, 2025 and December 31, 2024, respectively and was recorded in prepaid expenses and other current assets and other non-current assets, in the consolidated balance sheet (refer to Note 2 to the consolidated financial statements included in our 2024 Annual Report).Financial assets and liabilities measured at fair value on a recurring basis were as follows:Level 1Level 2Level 3Total(In thousands)AssetsJune 30, 2025:Equity securities$21,467 $— $— $21,467 Commodity derivative instruments$— $2,902 $— $2,902 December 31, 2024:Equity securities$23,135 $— $— $23,135 Commodity derivative instruments$— $2,114 $— $2,114 Information about financial instruments that are eligible for offset in the consolidated balance sheets were as follows:June 30, 2025December 31, 2024(In thousands)Commodity derivative assetsGross amount of recognized assets$4,933 $3,220 Gross amount offset on the balance sheet(2,031)(1,106)Net amount of assets on the balance sheet$2,902 $2,