ACACIA RESEARCH CORP

Previous wording

The following discussion should be read in conjunction with our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q (“Quarterly Report”). This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these “forward-looking statements” as a result of various factors including the risks we discuss in Item 1A. "Risk Factors" in or Annual Report on Form 10-K for the year ended December 31 2024 and elsewhere herein. For additional information, refer to the section above entitled “Cautionary Note Regarding Forward-Looking Statements.”

Current wording

The following discussion should be read in conjunction with our consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q (“Quarterly Report”). This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these “forward-looking statements” as a result of various factors including the risks we discuss in Item 1A. "Risk Factors" in or Annual Report on Form 10-K for the year ended December 31 2024, Part II, Item 1A. “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, and elsewhere herein. For additional information, refer to the section above entitled “Cautionary Note Regarding Forward-Looking Statements.”

Previous wording

The Company through its Patent Licensing, Enforcement and Technologies Business invests in IP and engages in the licensing and enforcement of patented technologies. Through our Patent Licensing, Enforcement and Technologies Business, operated under our wholly owned subsidiary, Acacia Research Group, LLC, and its wholly-owned subsidiaries (collectively,“ARG”), we are a principal in the licensing and enforcement of patent portfolios, with our operating subsidiaries obtaining the rights in the patent portfolio or purchasing the patent portfolio outright. On a consolidated basis, we currently own or control the rights to multiple patent portfolios, including U.S. patents and certain foreign counterparts, which cover technologies used in a variety of industries. We generate revenues and related cash flows from the granting of IP rights for the use of patented technologies that our operating subsidiaries control or own. While we partner from time to time with inventors and patent owners, ranging in size and including large corporations, we control and assume all responsibility in pursuing patent licensing and enforcement programs, and for the related operating expenses. When applicable, share licensing revenue, net of costs, with our patent partners after we have achieved our agreed upon minimum return threshold. We may also provide upfront capital to patent owners as an advance against future licensing revenue.

Current wording

The Company through its Patent Licensing, Enforcement and Technologies Business invests in IP and engages in the licensing and enforcement of patented technologies. Through our Patent Licensing, Enforcement and Technologies Business, operated under our wholly owned subsidiary, Acacia Research Group, LLC, and its wholly-owned subsidiaries (collectively,“ARG”), we are a principal in the licensing and enforcement of patent portfolios, with our operating subsidiaries obtaining the rights in the patent portfolio or purchasing the patent portfolio outright. On a consolidated basis, we currently own or control the rights to multiple patent portfolios, including U.S. patents and certain foreign counterparts, which cover technologies used in a variety of industries. We generate revenues and related cash flows from the granting of IP rights for the use of patented technologies that our operating subsidiaries control or own. While we partner from time to time with inventors and patent owners, ranging in size and including large corporations, we control and assume all responsibility in pursuing patent licensing and enforcement programs, and for the related operating expenses. When applicable, we share licensing revenue, net of costs, with our patent partners after we have achieved our agreed upon minimum return threshold. We may also provide upfront capital to patent owners as an advance against future licensing revenue.

Previous wording

We have established a proven track record of licensing and enforcement success with over 1,600 license agreements executed as of March 31, 2025, across nearly 200 patent portfolio licensing and enforcement programs. As of March 31, 2025, we have generated gross licensing revenue of approximately $1.9 billion, and have returned $897.5 million to our patent partners. During the past five calendar years ending on December 31, we generated gross licensing revenue of approximately $234.0 million and returned approximately $91.2 million to our patent partners.

Current wording

We have established a proven track record of licensing and enforcement success with over 1,600 license agreements executed as of June 30, 2025, across nearly 200 patent portfolio licensing and enforcement programs. As of June 30, 2025, we have generated gross licensing revenue of approximately $1.9 billion, and have returned $897.7 million to our patent partners. During the past five calendar years ending on December 31, we generated gross licensing revenue of approximately $274.5 million and returned approximately $86.8 million to our patent partners.

Previous wording

In November 2023, we acquired a 50.4% equity interest in Benchmark. Headquartered in Austin, Texas, Benchmark is an independent oil and gas company that acquires, produces and develops oil and gas assets in Texas and Oklahoma. Benchmark is run by an experienced management team led by Chief Executive Officer Kirk Goehring. Prior to Benchmark’s acquisition of additional assets in April 2024, Benchmark’s assets consisted of over 13,000 net acres primarily located in Roberts and Hemphill Counties in Texas, and an interest in over 125 wells, the majority of which are operated. Acacia made a control investment in Benchmark and intends to utilize its significant capital base to acquire predictable and shallow decline, cash-flowing oil and gas properties whose value can be enhanced via a disciplined, field optimization strategy, with risk managed through robust commodity hedges and low leverage. Through its investment in Benchmark, the Company, along with the Benchmark management team, will evaluate future growth and acquisitions of oil and gas assets at attractive valuations. Refer to Note 1 to the condensed consolidated financial statements elsewhere herein for additional information.

Current wording

In November 2023, we acquired a 50.4% equity interest in Benchmark. Headquartered in Austin, Texas, Benchmark is an independent oil and gas company that acquires, produces and develops oil and gas assets in Texas and Oklahoma. Benchmark is run by an experienced management team led by Chief Executive Officer Kirk Goehring. Prior to Benchmark’s acquisition of additional assets in April 2024, Benchmark’s assets consisted of over 13,000 net acres primarily located in Roberts and Hemphill Counties in Texas, and an interest in over 125 wells, the majority of which are operated. Acacia made a control investment in Benchmark and intends to utilize its significant capital base to acquire predictable and shallow decline, cash-flowing oil and gas properties whose value can be enhanced via a disciplined, field optimization strategy, with risk managed through robust commodity hedges and low leverage. Through its investment in Benchmark, the Company, along with the Benchmark management team, will evaluate future growth and acquisitions of oil and gas assets at attractive valuations. Refer to Note 1 to the consolidated financial statements elsewhere herein for additional information.

Previous wording

On April 17, 2024, Benchmark consummated the Revolution Transaction contemplated in the Revolution Purchase Agreement. Pursuant to the Revolution Purchase Agreement, Benchmark acquired certain upstream assets and related facilities in Texas and Oklahoma, including approximately 140,000 net acres and an interest in approximately 470 operated producing wells for a purchase price of $145 million in cash, subject to customary post-closing adjustments. The Company’s contribution to Benchmark to fund its portion of the Revolution Purchase Price and related fees was $59.9 million, which was funded from cash on hand. The remainder of the Revolution Purchase Price was funded by a combination of borrowings under the Benchmark Revolving Credit Facility and a cash contribution of $15.25 million from other investors in Benchmark, including McArron Partners. Following closing of the Revolution Transaction, the Company’s interest in Benchmark is approximately 73.5%. Refer to Note 11 to the accompanying condensed consolidated financial statements for additional information regarding the Benchmark Revolving Credit Facility.

Current wording

On April 17, 2024, Benchmark consummated the Revolution Transaction contemplated in the Revolution Purchase Agreement. Pursuant to the Revolution Purchase Agreement, Benchmark acquired certain upstream assets and related facilities in Texas and Oklahoma, including approximately 140,000 net acres and an interest in approximately 470 operated producing wells for a purchase price of $145 million in cash, subject to customary post-closing adjustments. The Company’s contribution to Benchmark to fund its portion of the Revolution Purchase Price and related fees was $59.9 million, which was funded from cash on hand. The remainder of the Revolution Purchase Price was funded by a combination of borrowings under the Benchmark Revolving Credit Facility and a cash contribution of $15.25 million from other investors in Benchmark, including McArron Partners. Following closing of the Revolution Transaction, the Company’s interest in Benchmark is approximately 73.5%. Refer to Note 11 to the accompanying consolidated financial statements for additional information regarding the Benchmark Revolving Credit Facility.

Previous wording

We intend to grow our Company by acquiring additional operating businesses, energy assets and intellectual property assets. However, we may not complete any acquisitions, and any acquisitions that we complete will be costly and could negatively affect our results of operations, and dilute our stockholders’ ownership, or cause us to incur significant expense, and we may not realize the expected benefits of acquisitions.

Current wording

We intend to grow our Company by acquiring additional operating businesses, energy assets and intellectual property assets. However, we may not complete any acquisitions, and any acquisitions that we complete may be costly and could negatively affect our results of operations, and dilute our stockholders’ ownership, or cause us to incur significant expense, and we may not realize the expected benefits of acquisitions.

Previous wording

On April 17, 2024, Benchmark consummated the Revolution Transaction contemplated in the Revolution Purchase Agreement pursuant to which Benchmark acquired certain upstream assets and related facilities in Texas and Oklahoma, including approximately 140,000 net acres and an interest in approximately 470 operated producing wells, for a purchase price of $145 million in cash, subject to customary post-closing adjustments (as described further in Note 1 to the accompanying condensed consolidated financial statements). Following closing, the Company’s interest in Benchmark is approximately 73.5%.

Current wording

On April 17, 2024, Benchmark consummated the Revolution Transaction contemplated in the Revolution Purchase Agreement pursuant to which Benchmark acquired certain upstream assets and related facilities in Texas and Oklahoma, including approximately 140,000 net acres and an interest in approximately 470 operated producing wells, for a purchase price of $145 million in cash, subject to customary post-closing adjustments (as described further in Note 1 to the accompanying consolidated financial statements). Following closing, the Company’s interest in Benchmark is approximately 73.5%.

Previous wording

On October 18, 2024, Deflecto Purchaser, a wholly-owned subsidiary of Acacia, acquired Deflecto. Headquartered in Indianapolis, Indiana, Deflecto is a leading specialty manufacturer of essential products serving the commercial transportation, HVAC and office markets. Under the terms and conditions of the Deflecto Stock Purchase Agreement, the aggregate consideration paid to the sellers in the Deflecto Transaction consisted of $103.7 million, subject to certain working capital, debt and other customary adjustments set forth in the Deflecto Stock Purchase Agreement. The Deflecto Purchase Price was funded with a combination of borrowings of a $48.0 million secured term loan and cash on hand. A portion of the Deflecto Purchase Price is being held in escrow to indemnify Purchaser against certain claims, losses and liabilities. Refer to Note 1 to the accompanying condensed consolidated financial statements for additional information.

Current wording

On October 18, 2024, Deflecto Purchaser, a wholly-owned subsidiary of Acacia, acquired Deflecto. Headquartered in Indianapolis, Indiana, Deflecto is a leading specialty manufacturer of essential products serving the commercial transportation, HVAC and office markets. Under the terms and conditions of the Deflecto Stock Purchase Agreement, the aggregate consideration paid to the sellers in the Deflecto Transaction consisted of $103.7 million, subject to certain working capital, debt and other customary adjustments set forth in the Deflecto Stock Purchase Agreement. The Deflecto Purchase Price was funded with a combination of borrowings of a $48.0 million secured term loan and cash on hand. A portion of the Deflecto Purchase Price is being held in escrow to indemnify Purchaser against certain claims, losses and liabilities. Refer to Note 1 to the accompanying consolidated financial statements for additional information.

Previous wording

In June 2020 we acquired a portfolio of investments in 18 public and private life sciences companies (the “Life Sciences Portfolio”). That purchase was funded with a combination of available cash and capital from Starboard, for a total of approximately $282.0 million at the time of acquisition. Through the end of March 31, 2025, we have received proceeds of $564.1 million as we monetized the Life Sciences portfolio. We retained an investment in the Life Sciences Portfolio consisting of public and private securities valued at $25.7 million at March 31, 2025. On January 19, 2024, we completed the sale of our 33,023,210 shares of Arix Bioscience PLC (“Arix”) to RTW Biotech Opportunities Operating Ltd, a subsidiary of RTW Biotech Opportunities Ltd, for $57.1 million in aggregate (representing £1.43 per share at an exchange rate of 1.2087 USD/GBP). Following the completion of the share sale, we no longer own any shares of Arix. Additionally, some of the businesses in which we continue to hold an interest generate income through the receipt of royalties and milestone payments. Refer to Note 4 to the condensed consolidated financial statements elsewhere herein for more information.

Current wording

In June 2020 we acquired a portfolio of investments in 18 public and private life sciences companies (the “Life Sciences Portfolio”). That purchase was funded with a combination of available cash and capital from Starboard, for a total of approximately $282.0 million at the time of acquisition. Through the end of June 30, 2025, we have received proceeds of $564.1 million as we monetized the Life Sciences portfolio. We retained an investment in the Life Sciences Portfolio consisting of public and private securities valued at $25.7 million at June 30, 2025. On January 19, 2024, we completed the sale of our 33,023,210 shares of Arix Bioscience PLC (“Arix”) to RTW Biotech Opportunities Operating Ltd, a subsidiary of RTW Biotech Opportunities Ltd, for $57.1 million in aggregate (representing £1.43 per share at an exchange rate of 1.2087 USD/GBP). Following the completion of the share sale, we no longer own any shares of Arix. Additionally, some of the businesses in which we continue to hold an interest generate income through the receipt of royalties and milestone payments. Refer to Note 4 to the consolidated financial statements elsewhere herein for more information.

Previous wording

As of the date of this Quarterly Report, our Patent Licensing, Enforcement and Technologies Business has two pending patent infringement cases with scheduled trial dates in the next twelve months. Patent infringement trials are components of its overall patent licensing process and are one of many factors that contribute to possible future revenue generating opportunities. Scheduled trial dates, as promulgated by the respective court, merely provide an indication of when, in future periods, the trials may occur according to the court’s scheduling calendar at a specific point in time. A court may change previously scheduled trial dates. In fact, courts often reschedule trial dates for various reasons that are unrelated to the underlying patent assets and typically for reasons that are beyond the control of our Patent Licensing, Enforcement and Technologies Business. While scheduled trial dates provide an indication of the timing of possible future revenue generating opportunities, the trials themselves and the immediately preceding periods represent the possible future revenue generating opportunities.

Current wording

As of the date of this Quarterly Report, our Patent Licensing, Enforcement and Technologies Business has three pending patent infringement cases with scheduled trial dates in the next twelve months. Patent infringement trials are components of its overall patent licensing process and are one of many factors that contribute to possible future revenue generating opportunities. Scheduled trial dates, as promulgated by the respective court, merely provide an indication of when, in future periods, the trials may occur according to the court’s scheduling calendar at a specific point in time. A court may change previously scheduled trial dates. In fact, courts often reschedule trial dates for various reasons that are unrelated to the underlying patent assets and typically for reasons that are beyond the control of our Patent Licensing, Enforcement and Technologies Business. While scheduled trial dates provide an indication of the timing of possible future revenue generating opportunities, the trials themselves and the immediately preceding periods represent the possible future revenue generating opportunities.

Previous wording

Headquartered in Austin, Texas, Benchmark is an independent oil and gas company that acquires, produces and develops oil and gas assets in Texas and Oklahoma. Benchmark is run by an experienced management team led by Chief Executive Officer Kirk Goehring. After the acquisition of Revolution, Benchmark’s existing assets consist of approximately 156,000 net acres and an interest in approximately 615 wells, the majority of which are operated. Acacia owns approximately 73.5% of Benchmark. Benchmark intends to enhance the value of such assets via a disciplined, field optimization strategy, with risk managed through robust commodity hedges and low leverage. Through its investment in Benchmark, the Company, along with the Benchmark management team, will evaluate future growth and acquisitions of oil and gas assets at attractive valuations.

Current wording

Headquartered in Austin, Texas, Benchmark is an independent oil and gas company that acquires, produces and develops oil and gas assets in Texas and Oklahoma. Benchmark is run by an experienced management team led by Chief Executive Officer Kirk Goehring. After the acquisition of Revolution, Benchmark’s existing assets consist of approximately 155,000 net acres and an interest in approximately 600 wells, the majority of which are operated. Acacia owns approximately 73.5% of Benchmark. Benchmark intends to enhance the value of such assets via a disciplined, field optimization strategy, with risk managed through robust commodity hedges and low leverage. Through its investment in Benchmark, the Company, along with the Benchmark management team, will evaluate future growth and acquisitions of oil and gas assets at attractive valuations.

Previous wording

In addition to the following results of operations discussion, more information related to our Intellectual Property Operations, Industrial Operations, Energy Operations and Manufacturing Operations segment revenues may be found in Notes 2 and 19 to the condensed consolidated financial statements.

Current wording

In addition to the following results of operations discussion, more information related to our Intellectual Property Operations, Industrial Operations, Energy Operations and Manufacturing Operations segment revenues may be found in Notes 2 and 19 to the consolidated financial statements.

Previous wording

Total revenues increased $100.1 million to $124.4 million for the three months ended March 31, 2025, as compared to $24.3 million for the three months ended March 31, 2024, due to an increase in our Intellectual Property Operations revenues and our Manufacturing Operations revenue and Energy Operations revenue including the revenue from the recent acquisitions (refer to Note 3). Intellectual Property Operations revenues increased $56.3 million due to an increase in average license fees per agreement for the three months ended March 31, 2025. Industrial Operations revenues decreased $1.2 million due to decrease in the number of printer units and consumables products sold compared to the comparable prior period.

Current wording

Total revenues increased $25.4 million to $51.2 million for the three months ended June 30, 2025, as compared to $25.8 million for the three months ended June 30, 2024, due to increases in our Manufacturing Operations revenue and Energy Operations revenue from the recent acquisitions (refer to Note 3) and an increase in Industrial Operations revenues by $0.3 million. The increases were offset by a decrease in Intellectual Property Operations revenues of $5.0 million.

Previous wording

Income before income taxes was $29.6 million for the three months ended March 31, 2025, as compared to loss of $1.3 million in the comparable prior period. The net increase was comprised of the change in total revenues described above and other changes in operating expenses and other income or expense for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 as follows:

Current wording

Loss before income taxes was $0.9 million for the three months ended June 30, 2025, as compared to loss of $15.9 million in the comparable prior period. The net increase comprised the change in total revenues described above and other changes in operating expenses and other income or expense for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024 as follows:

Previous wording

•Benchmark’s cost of production for the first quarter of 2025 added an additional $11.4 million to our consolidated operating expenses.

Current wording

•Manufacturing Operations cost of revenues for the second quarter of 2025 added an additional $22.4 million to our consolidated operating expenses as the Deflecto acquisition closed in the fourth quarter of 2024 and there is no comparable period.

Previous wording

•General and administrative expenses increased $4.8 million, to $17.3 million in the first quarter of 2025 from $12.5 million in the first quarter of 2024, primarily due to expenses contributed from our new Manufacturing Operations of $5.7 million for the first quarter of 2025, offset by lower parent company legal fees.

Current wording

•General and administrative expenses increased $5.4 million, to $15.5 million in the three months ended June 30, 2025 from $10.1 million in the comparable prior year period, primarily due to expenses contributed from Manufacturing Operations of $5.1 million for the second quarter of 2025.

Previous wording

•Unrealized loss from the change in fair value of our equity securities was $4.8 million in the first quarter of 2025, as compared to an unrealized gain of $26.7 million in the comparable prior year period. The unrealized loss and gain were derived from our Life Sciences Portfolio and our trading securities portfolio.

Current wording

•Unrealized gain from the change in fair value of our equity securities was $2.2 million in the three months ended June 30, 2025, as compared to an unrealized loss of $4.7 million in the comparable prior year period. The unrealized loss and gain were derived from our Life Sciences Portfolio and our trading securities portfolio.

Previous wording

•Non-recurring legacy legal expense of $6.2 million in the first quarter of 2024 is related to a dispute involving former executives (the “AIP Matter”).

Current wording

•Non-recurring legacy legal expense in the three months ended June 30, 2024 of $6.6 million is related to a dispute involving former executives (the “AIP Matter”). There were no comparable expenses for the three months ended June 30, 2025.

Previous wording

•Loss on derivatives was $5.0 million in the first quarter of 2025, as compared to a $171,000 in the comparable prior year period due to the commodity derivative activities contributed from our Energy Operations. Refer to Note 13 for additional information regarding Benchmark’s commodity derivatives.

Current wording

•Gain on derivatives was $1.6 million in 2025, as compared to a loss of $2.5 million in the prior year due to the commodity derivative activities contributed from our Energy Operations. Refer to Note 13 for additional information regarding Benchmark’s gain and loss on its commodity derivatives.

Previous wording

•Interest expense of $2.5 million for the three months ended March 31, 2025 related to the Benchmark Revolving Credit Facility and the Deflecto Term Loan.

Current wording

•Interest expense increased $2.6 million, from $2.1 million to $4.8 million in 2025, primarily due to the interest expense incurred in relation to the Benchmark Revolving Credit Facility and the Deflecto Facility. Interest expense from the Benchmark Revolving Credit Facility included six months of interest expense in 2025 compared to an approximate two month period in the prior year for the Revolution transaction which was partially funded by borrowings under the Revolving Credit Facility. Interest expense also increased for post-acquisition related interest expense on the Deflecto Facility. Refer to Note 11 to the consolidated financial statements elsewhere herein for additional information regarding the Benchmark Revolving Credit Facility and the Deflecto Facility.

Previous wording

For the periods presented above, the majority of the revenue agreements executed during the relevant period provided for the payment of one-time, paid-up license fees in consideration for the grant of certain IP Rights for patented technology owned by our operating subsidiaries. These rights were primarily granted on a perpetual basis, extending until the expiration of the underlying patents. Paid-up revenue increased $57.1 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 due to an increase in average license fees per agreement. Recurring revenue, that provides for quarterly sales-based license fees, decreased $0.8 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, from various on-going license arrangements.

Current wording

For the periods presented above, the majority of the revenue agreements executed during the relevant period provided for the payment of one-time, paid-up license fees in consideration for the grant of certain IP Rights for patented technology owned by our operating subsidiaries. These rights were primarily granted on a perpetual basis, extending until the expiration of the underlying patents. Paid-up revenue decreased $4.9 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 due to an decrease in new license agreements executed. Recurring revenue, that provides for quarterly sales-based license fees, decreased $0.1 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, due to the expiration of certain on-going license arrangements. Paid-up revenue increased $52.2 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 due to an increase in average license fees per agreement. Recurring revenue, that provides for quarterly sales-based license fees, decreased $1.0 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, due to the expiration of certain on-going license arrangements.

Previous wording

Refer to Note 2 to the condensed consolidated financial statements elsewhere herein for additional information regarding our revenue arrangements and related concentrations for the periods presented herein.

Current wording

Refer to Note 2 to the consolidated financial statements elsewhere herein for additional information regarding our revenue arrangements and related concentrations for the periods presented herein.

Previous wording

For the periods presented above, the majority of the contract agreements executed in the relevant period include various combinations of tangible products (which include printers, consumables and parts) and services. Revenue from printers and parts and consumable products for the three months ended decreased $0.2 million and $1.0 million, respectively compared to the three months ended March 31, 2024, due to a decrease in the number of printer units and consumable products sold. Refer to Note 2 to the condensed consolidated financial statements elsewhere herein for additional information regarding Printronix’s revenue arrangements and related concentrations.

Current wording

For the periods presented above, the majority of the contract agreements executed in the relevant period include various combinations of tangible products (which include printers, consumables and parts) and services. Revenue from printers and parts increased for the three and six months ended June 30, 2025, as compared to the respective 2024 periods, due to a increase in the number of printer units sold. Consumable products increased slightly for the three months ended June 30, 2025 and decreased for the six months ended June 30, 2025, when compared to the prior year periods due to fluctuations of sales of consumable products. Refer to Note 2 to the consolidated financial statements elsewhere herein for additional information regarding Printronix’s revenue arrangements and related concentrations.

Previous wording

Printronix’s cost of revenues remained relatively flat for the periods presented. Refer to Note 2 to the condensed consolidated financial statements elsewhere herein for additional information regarding Printronix’s cost of sales.

Current wording

Printronix’s cost of revenues remained relatively flat for the periods presented. Refer to Note 2 to the consolidated financial statements elsewhere herein for additional information regarding Printronix’s cost of sales.

Previous wording

Refer to Note 2 to the condensed consolidated financial statements elsewhere herein for additional information regarding Benchmark’s revenue arrangements and related concentrations.

Current wording

Refer to Note 2 to the consolidated financial statements elsewhere herein for additional information regarding Benchmark’s revenue arrangements and related concentrations.

Previous wording

Benchmark’s cost of production for the three months ended March 31, 2025 and 2024 was $12.7 million and $1.3 million, respectively, with the increase due to the assets acquired in the Revolution Transaction in April 2024.

Current wording

Energy Operations’s cost of production for the three months ended June 30, 2025 and 2024 was $12.3 million and $10.0 million, respectively and for the six months ended June 30, 2025 and 2024 was $25.0 million and $11.4 million, respectively, with the increases due to the full period impact of the assets acquired in the Revolution Transaction in April 2024.

Previous wording

The following table includes Deflecto’s revenues for the three months ended March 31, 2025, with no comparable prior year period information as the Deflecto Transaction closed in October 2024.

Current wording

The following table includes Deflecto’s revenues for the three and six months ended June 30, 2025, with no comparable prior year period information as the Deflecto Transaction closed in October 2024.