Company: DMRC
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437749-25-005471
Chunk: 59

Company: Digimarc CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 59
---
 capabilities, expand our operations into new markets, or otherwise offer growth opportunities. The pursuit of potential acquisitions or other strategic transactions may divert the attention of management and cause us to incur various expenses related to identifying, investigating, and pursuing suitable acquisitions or strategic transactions, whether or not they are completed.

There are inherent risks in integrating and managing acquisitions. We may not be able to assimilate or integrate the acquired personnel, operations and technologies successfully or effectively manage the combined business following an acquisition. We also may not achieve the anticipated benefits from an acquired business due to a number of factors, including:

      • 
      unanticipated costs or liabilities associated with the acquisition; 

      • 
      incurrence of acquisition-related costs; 

      • 
      inability to generate sufficient revenue to offset acquisition or investment costs; 

      • 
      the inability to maintain relationships with customers and partners of the acquired business; 

      • 
      the need to implement additional controls, procedures and policies; 

      • 
      entry into geographic markets in which we have little or no prior experience, and challenges caused by distance, language, and cultural differences; 

      • 
      differences in foreign labor and employment laws, including classification of employees and contractors; 

      • 
      disruption of our ongoing business; 

      • 
      the potential loss of key employees; and 

      • 
      use of substantial portions of our available cash to complete the acquisition. 

Acquisitions could also result in dilutive issuances of equity securities or the incurrence of debt, which could adversely affect our financial position. In addition, if an acquired business fails to meet our expectations, our operating results and business and financial condition may suffer.

(11) If our revenue models and pricing structures relating to products and services that are under development do not gain market acceptance, the products and services may fail to attract or retain customers and we may not be able to generate new revenue or sustain existing revenue.

Our revenues result from a combination of software subscriptions and software development services. We have not fully developed our revenue models for some products in the commercial market. Because some of our products and services are not yet well-established in the marketplace, and because some of these products and services will not directly displace existing solutions, we cannot be certain that the pricing structure for these products and services will gain market acceptance or be sustainable over time, or that the marketing for these products and services will be effective.

(12) An unfavorable assessment of digital watermarking technology by members of the HolyGrail 2.0