Company: DMRC
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437749-25-005471
Chunk: 90

Company: Digimarc CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 90
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555

      Current ratio (1) 

     4.3:1

     3:1

      Cash, cash equivalents and short-term marketable securities 
      
     $
     28,730

     $
     27,182

      Long-term marketable securities 

     —

     —

      Total cash, cash equivalents and marketable securities 
      
     $
     28,730

     $
     27,182

      (1) 
      The current (liquidity) ratio is calculated by dividing total current assets by total current liabilities. 

The $1.5 million increase in cash, cash equivalents and marketable securities at December 31, 2024, from December 31, 2023, resulted primarily from:

      • 
      net proceeds from the issuance of common stock; partially offset by 

      • 
      cash used in operations; 

      • 
     purchases of common stock related to tax withholding in connection with the vesting of restricted stock, restricted stock units, and performance restricted stock units; and

      • 
      purchases of property and equipment and capitalized patent costs. 

      24

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, and trade accounts receivable. We place our cash and cash equivalents with major banks and financial institutions and at times deposits may exceed insured limits. Marketable securities include commercial paper, U.S. treasuries, and federal agency notes. Our investment policy requires our portfolio to be invested to ensure that the greater of $3.0 million or 7% of the invested funds will be available within 30 days’ notice.

Other than cash used for operating needs, which may include short-term marketable securities, our investment policy limits our credit exposure to any one financial institution or type of financial instrument by limiting the maximum of 5% of our cash and cash equivalents and marketable securities or $1.0 million, whichever is greater, to be invested in any one issuer except for the U.S. government, U.S. federal agencies and U.S. backed securities, which have no limits, at the time of purchase. Our investment policy also limits our credit exposure by limiting to a maximum of 40% of our cash and cash equivalents and marketable securities, or $15.0 million, whichever is greater, to be invested in any one industry category, (e.g., financial, energy, etc.), at the time of purchase.