Company: ACTG
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000934549-25-000042
Chunk: 77

Company: ACACIA RESEARCH CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 77
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 other income or expense for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 as follows:

•Cost of revenues for Intellectual Property Operations increased by $21.7 million primarily due to an increase in inventor royalties, contingent legal fees and patent amortization expense.

◦Inventor royalties increased $15.3 million, from $1.4 million to $16.7 million in 2025, primarily due to higher license fees being generated in 2025 with inventor royalties. Refer to “Intellectual Property Operations – Cost of Revenues” below for further discussion.

◦Contingent legal fees increased $2.4 million, from $2.4 million to $4.8 million in 2025, primarily due to the change in Intellectual Property Operations revenues described above. Refer to “Intellectual Property Operations – Cost of Revenues” below for further discussion.

◦Amortization of patents expense from our Intellectual Property Operations increased $3.3 million, from $6.7 million to $9.9 million in 2025, due to an increase in amortization for the 2025 patent portfolio acquisition.

•Industrial Operations cost of revenues and sales and marketing expenses remained relatively flat, decreasing from $10.6 million for the six months ended June 30, 2024 to $10.5 million for the six months ended June 30, 2025. 

•Energy Operations cost of production for the six months ended June 30, 2025 increased by $13.6 million due to a full six months of activity for the assets acquired in the Revolution Transaction in April 2024. 

•Manufacturing Operations cost of revenues and sales and marketing expenses added operating expenses of $47.1 million for the six months ended June 30, 2024 as the Deflecto acquisition closed in the fourth quarter of 2024 and there is no comparable period expense.

•General and administrative expenses increased $10.3 million, from $22.6 million to $32.9 million in 2025, primarily due to our Manufacturing Operations which was acquired in the fourth quarter of 2024 and contributed $10.8 million of general administrative costs for six months ended June 30, 2025.  Energy Operations general and administrative expenses increased $1.3 million due to 2025 including a full six months of activity for the assets acquired in the Revolution Transaction in April 2024. The