Company: DMRC
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437749-25-005471
Chunk: 48

Company: Digimarc CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 48
---
 Operations.”

Markets

Our patented technologies are used in various automatic identification products and solutions supporting a variety of media objects, from consumer goods to movies and music, digital images, and banknotes. Each media object enabled by our technology creates the potential for several applications including in the areas of automation, authentication, sustainability, and customer trust and connectivity.

We sell access to our platform and products through both direct and indirect sales channels. Our sales are generally focused in North America and Europe. 

We believe that our existing products represent only a small portion of the potential market for our technology.

Competition

No single competitor or small number of competitors dominate our market. Our competitors vary depending on the application of our products and services. We generally compete with non-digital watermarking technologies. These alternatives include, among other things, encryption-based security systems and technologies and solutions based on fingerprinting, pattern recognition, and traditional barcodes. Our competitive position in digital watermarking applications is strong because of our large, high-quality, sophisticated patent portfolio, our trade secrets and know-how, and our substantial and growing amount of intellectual property in related innovations for the automatic identification of physical and digital media objects that span basic technologies, applications, system designs and business processes. Our intellectual property portfolio allows us to use proprietary technologies that are well-regarded by our customers and partners, and not available to our competitors without a license. We compete based on the variety of features we offer and a traditional cost/benefit analysis against alternative technologies and solutions. Our competitive position within some markets may be affected by factors such as reluctance to adopt new technologies and by changes in government regulations.

      2

      Table of Contents

     Backlog

     Based on projected commitments we have for the periods under contract with our respective customers, we anticipate our current contracts as of
     December 31, 2024,
     will generate a minimum of 
     $36.2
      million in future revenue, compared to 
     $43.7
      million as of 
     December 31, 2023
     . The 
     decrease
      reflects the impact of revenue recognized on our existing backlog, a shortened committed contractual period of an existing contract, and the expiration of a commercial contract in June 2024, partially offset by new contracts entered into in 2024. We expect approximately $20.2
      million of the 
     $36.2
      million to be recognized as revenue during 2025