Acacia(ACTG)2025-03-17 20:46Investment Valuation and Risks - As of December 31, 2024, the carrying value of the company's equity investments in public and private companies was 99.8 million in 2023[461]. - A hypothetical 10% adverse change in the market price of the company's investments in publicly traded common stock would have resulted in a decrease of approximately $2.3 million[462]. - The company is exposed to investment risks related to changes in the underlying financial condition of certain equity investments in technology companies, which can significantly impact fair value due to market volatility[460]. - The primary objective of the company's short-term investment activities is to preserve principal while maximizing income from equity securities without significantly increasing risk[459]. - The company intends to maintain a diversified portfolio of cash equivalents and equity securities to minimize investment risks in the future[459]. - The company evaluates equity investments in private companies for impairment when there are indications of a decline in fair value below carrying value[462]. Foreign Currency and Interest Rate Exposure - The company has no foreign denominated equity securities as of December 31, 2024, indicating limited exposure to foreign currency exchange risk[463]. - The company has historically not had material foreign operations, limiting its exposure to foreign currency exchange rate fluctuations[463]. - A 100 basis point increase in interest rates or a 10% decline in the value of the U.S. equity markets would not be expected to have a material impact on the value of the company's money market funds[459]. Competitive and Economic Risks - The company faces risks related to competition, pricing, regulations, and other economic factors that may impact its operating businesses[21].