Company: DMRC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026996
Chunk: 43

Company: Digimarc CORP
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 43
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-GAAP financial measures have inherent limitations because of the described excluded items.

We define Non-GAAP gross profit, Non-GAAP gross profit margin, Non-GAAP operating expenses, Non-GAAP net loss, and Non-GAAP loss per share (diluted) excluding the adjustments in the table below. These non-GAAP financial measures are an important measure of our operating performance because they allow management, investors and analysts to evaluate and assess our core operating results from period-to-period after removing non-cash and non-recurring activities that can affect comparability.

We have included a reconciliation of our financial measures calculated in accordance with GAAP to the most comparable non-GAAP financial measures. We believe that providing the non-GAAP financial measures, together with the reconciliation to GAAP, helps investors make comparisons between us and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definitions being used and to the reconciliation between such measures and the corresponding GAAP measures provided by each company under applicable SEC rules.

The following table presents a reconciliation of Non-GAAP gross profit, Non-GAAP gross profit margin, Non-GAAP operating expenses, Non-GAAP net loss, and Non-GAAP loss per share (diluted) for the three and six months ended June 30, 2025 and 2024:

      Three Months Ended June 30, 

      Six Months Ended June 30, 

      2025 

      2024 

      2025 

      2024 

      GAAP gross profit 
      
     $
     4,707

     $
     6,863

     $
     10,792

     $
     13,075

      Amortization of acquired intangible assets 

     1,205

     1,132

     2,337

     2,272

      Amortization and write-off of other intangible assets (1) 

     219

     209

     438

     421

      Stock-based compensation 

     253

     156

     390

     409

      Non-GAAP gross profit 
      
     $
     6,384

     $
     8,360

     $
     13,957

     $
     16,177

      Non-GAAP gross profit margin 

     80
     %

     81