Company: DMRC
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001437749-25-014773
Chunk: 37

Company: Digimarc CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 37
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-Q, were effective.

Changes in Controls

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the three month period ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 

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PART II. OTHER INFORMATION.

Item 1.         Legal Proceedings.

On March 10, 2025, a putative class action complaint was filed against Digimarc, Riley McCormack and Charles Beck in the Southern District of New York (case 1:25-cv-01963) alleging certain violations of federal securities laws and seeking unspecified damages. The complaint was withdrawn by the plaintiff the following day on March 11, 2025 and the action was voluntarily dismissed without prejudice to Digimarc, Mr. McCormack or Mr. Beck.

Item 1A.      Risk Factors

Our business, financial condition, results of operations and cash flows may be affected by a number of factors. Detailed information about risk factors that may affect Digimarc’s actual results are set forth in Part I, Item 1A: “Risk Factors” of our 2024 Annual Report. The risks and uncertainties described in our 2024 Annual Report are those risks of which we are aware and that we consider to be material to our business. If any of those risks and uncertainties develop into actual events, our business, financial condition, results of operations or cash flows could be materially adversely affected. In that case, the trading price of our common stock could decline. As of March 31, 2025, except as set forth below, there have been no material changes to the risk factors previously disclosed in our 2024 Annual Report.

Actions of activist shareholders and securities litigation could be costly and time-consuming, divert management’s attention and resources, and have an adverse effect on our business.

While we value open dialogue and input from our shareholders, activist shareholders could take actions that could be costly and time-consuming for us, disrupt our operations, and divert the attention of our board of directors, management, and employees. These actions could include public proposals and requests for potential nominations of candidates for election to our board of directors, requests to pursue a strategic combination or other transaction, or other special requests. As a result, we have retained, and may in the future retain, additional services