Company: DMRC
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001437749-25-014773
Chunk: 8

Company: Digimarc CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 8
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31, 

        December 31, 

        2025 

        2024 

        Contract acquisition costs, current 
        
       $
       60

       $
       38

        Contract acquisition costs, long-term 

       68

       —

        Total 
        
       $
       128

       $
       38

   The Company has contract liabilities from contracts with customers that are classified as “deferred revenue” in the Consolidated Balance Sheets. Deferred revenue consists of billings in advance for subscriptions and services for which the performance obligation has not been satisfied.
    
   The following table provides information about contract liabilities:

        March 31, 

        December 31, 

        2025 

        2024 

        Deferred revenue, current 
        
       $
       4,711

       $
       4,020

        Deferred revenue, long-term 

       —

       2

        Total 
        
       $
       4,711

       $
       4,022

   The Company recognized $2,156 of revenue during the three months ended  March 31, 2025, that was included in the contract liability balance as of  December 31, 2024.
    
   The aggregate amount of the transaction prices from contractual obligations that are unsatisfied or partially unsatisfied was $26,910 and $25,215 as of  March 31, 2025, and  December 31, 2024, respectively. As of  March 31, 2025, the Company expects $21,787 of the $26,910 to be recognized as revenue during the next twelve months.

       9

        DIGIMARC CORPORATION

        NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

        (In thousands, except per share data)

        (UNAUDITED)

   4. Segment Information
    
   Significant Segment Expenses
    
   The Company derives its revenue from a single reporting segment: product digitization solutions. Revenue is generated in this segment primarily through software subscriptions and software development services. The Company manages its business activities on a consolidated basis. In addition, the Chief Executive Officer of the Company, as the chief operating decision-maker (“CODM”), reviews the Company’s operating results and makes decisions to allocate resources based on consolidated financial information. As such, the Company has one single reportable segment. The CODM uses consolidated net income (loss) as