Company: DMRC
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001437749-25-014773
Chunk: 32

Company: Digimarc CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 32
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     )

     (210
     )%

      Net cash used in operating activities 
      
     $
     (5,486
     )
      
     $
     (8,422
     )
      
     $
     (2,936
     )

     (35
     )%

Cash flows used in operating activities for the three month period ended March 31, 2025, decreased by $2.9 million, compared to the corresponding three month period ended March 31, 2024, primarily reflecting $6.0 million from the favorable timing of changes in operating assets and liabilities, partially offset by $1.7 million of lower non-cash items included in net loss, and $1.4 million higher net loss. The favorable timing of changes in operating assets and liabilities largely reflects the timing of customer receipts and vendor payments, lower incentive compensation paid in 2025 for fiscal 2024 than paid in 2024 for fiscal 2023, and the timing and amount of refundable tax credits. We incurred cash severance costs of $3.2 million as a result of the reorganization we announced on February 26, 2025, of which $2.1 million was paid during the three months ended March 31, 2025. The remaining $1.1 million of severance costs are expected to be paid during the three months ending June 30, 2025. The change in non-cash items primarily reflects lower stock-based compensation.

     Cash flows from investing activities

Cash flows from investing activities for the three month period ended March 31, 2025, increased by $10.6 million, compared to the corresponding three month period ended March 31, 2024, primarily reflecting lower purchases of marketable securities and higher proceeds from maturities of marketable securities.

     Cash flows from financing activities

Cash flows from financing activities for the three month period ended March 31, 2025, decreased by $32.0 million, compared to the corresponding three month period ended March 31, 2024, primarily reflecting the $32.2 million of net cash proceeds raised from our registered direct stock offering in February 2024. 

       29

Future Cash Expectations

We believe that our current cash, cash equivalents, and marketable securities balances will