Company: DMRC
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437749-25-005471
Chunk: 125

Company: Digimarc CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 125
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 practicable. 

   Major Customers
    
   The following customers accounted for 10% or more of revenue:

       Year Ended December 31,  
   2024    2023  
 Customer A   41%  46%
 Customer B   15%  * 
 Customer C   14%  21%

        F-
       14

        DIGIMARC CORPORATION

        NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

        (In thousands, except per share data)

   Long-lived tangible assets by geographical area
    
   Long-lived tangible assets by geographic area were as follows:

       December 31,    December 31,  
   2024    2023  
 United States  $1,026  $1,535 
 Europe   14   35 
 Total  $1,040  $1,570 

   (5) Stock-Based Compensation
    
   Stock-based compensation includes expense charges for all stock-based awards to employees and directors. These awards include restricted stock awards, restricted stock units, and performance restricted stock units.
    
   Stock-based compensation expense related to internal labor is capitalized to software and patent costs based on direct labor hours charged to capitalized software and patent costs.
    
   Determining Fair Value
    
   Restricted Stock Awards
    
   The fair value of restricted stock awards (“RSA”) that vest upon meeting a service condition is based on the fair market value of the Company’s common stock on the date of the grant (measurement date) and is recognized on a straight-line basis over the service period of the award, which is generally three to four years for employee grants and one to three years for director grants.
    
   Restricted Stock Units
    
   The fair value of restricted stock unit (“RSU”) awards that vest upon meeting a service condition is based on the fair market value of the Company’s common stock on the date of the grant (measurement date) and is recognized on a straight-line basis over the service period of the award, which is generally three to four years for employee grants.
    
   Performance Restricted Stock Units
    
   The fair value of performance restricted stock unit (“PRSU”) awards that vest upon meeting a service condition and a performance condition, such as the Company exceeding a future annual recurring revenue target, is determined based on the