Company: ACTG
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000934549-25-000054
Chunk: 78

Company: ACACIA RESEARCH CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 78
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 further discussion.

52

◦Amortization of patents expense from our Intellectual Property Operations increased $3.8 million, from $11.4 million to $15.2 million in 2025, due to an increase in amortization from the 2025 patent portfolio acquisition.

•Energy Operations cost of production increased $13.8 million from $23.1 million to $36.9 million  in 2025 due to a full nine months of activity for the assets acquired in the Revolution Transaction in the second quarter of 2024. Refer to "Energy Operations – Cost of Production" below for further discussion.

•Manufacturing Operations cost of revenues and sales and marketing expenses for 2025 added a total of $72.2 million to our consolidated operating expenses. Refer to "Manufacturing Operations – Cost of Revenues" below for further discussion.

•General and administrative expenses increased $15.0 million, from $33.8 million to $48.8 million in 2025, primarily due to our Energy Operations which contributed $1.4 million of general and administrative costs in 2025 and our Manufacturing Operations which contributed $15.3 million of general administrative costs due to the acquisition in the fourth quarter of 2024  The increases were partially offset by a decrease in our Industrial Operations general and administrative costs and lower parent company costs. Refer to “General and Administrative Expenses” below for further detail and discussion.

•Unrealized loss from the change in fair value of our equity securities was $1.7 million in 2025, as compared to a loss of $35.5 million in the comparable prior period. The unrealized loss was derived from our Life Sciences Portfolio and trading securities portfolio. The 2024 period unrealized loss primarily relates to the reversal of unrealized gains previously recorded for Arix shares sold in January 2024 for realized gains. Refer to Note 4 to the consolidated financial statements elsewhere herein for additional information regarding the sale of Arix shares and refer to “Equity Securities Investments” below for further discussion.

•Realized gain from the sale of equity securities was $3.5 million in 2025, as compared to a gain of $28.9 million in the comparable prior period. The realized gains were similarly derived from the sales activity from our Life Sciences Portfolio and trading securities portfolio. The 2024 period realized gains primarily relate to the Arix shares sold in January 2024. Refer to Note 4 to the consolidated financial statements elsewhere herein for additional