Company: ACTG
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000934549-25-000054
Chunk: 20

Company: ACACIA RESEARCH CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 20
---
e.g., sales, use, value added, and some excise taxes) are excluded from revenue.Deflecto’s revenues were comprised of the following for the periods presented:Three Months EndedSeptember 30,Nine Months EndedSeptember 30,20252025(In thousands)Transportation safety$11,287 $32,420 Air distribution10,226 29,684 Office products9,302 26,247 Total$30,815 $88,351 Impairment of InvestmentsAcacia reviews its investments quarterly for indicators of other-than-temporary impairment. This determination requires significant judgment. In making this judgment, Acacia considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds its fair value, Acacia evaluates, among other factors, general market conditions and the duration and extent to which the fair value is less than cost. Acacia also considers specific adverse conditions related to the financial health of and business outlook for the investee, including industry and sector performance, changes in technology, and operational and financing cash flow factors. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded in the consolidated statements of operations and a new cost basis in the investment is established.Accounts Receivable and Allowance for Credit LossesThe opening balances of accounts receivable from contracts with customers for the nine months ended September 30, 2025 and 2024 was $26.9 million and $80.6 million, respectively, which were net of allowances for estimated credit losses of $1.3 million and $56,000, respectively.Intellectual Property OperationsARG performs credit evaluations of its licensees with significant receivable balances, if any, and has not experienced any significant credit losses. Accounts receivable are recorded at the executed contract amount and generally do not bear interest. Collateral is not required. An allowance for credit losses may be established to reflect the Company’s best estimate of probable losses inherent in the accounts receivable balance, and is reflected as a contra-asset account on the balance sheets and a charge to general and administrative expenses in the consolidated statements of operations for the applicable period. The allowance is determined based on known troubled accounts, historical experience, and other currently available evidence. Allowance for credit losses was immaterial as of September 30, 2025 and December 31, 2024.Industrial OperationsPrintronix’s accounts receivable are recorded at the invoiced amount and do not bear interest