Company: DMRC
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437749-25-005471
Chunk: 120

Company: Digimarc CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 120
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 for annual periods and in the first quarter of the fiscal year ending  December 31, 2028 for interim periods, with early adoption permitted. The Company is currently evaluating the effect of this new standard on the Company’s disclosures.

   (2) Fair Value of Financial Instruments
    
   In accordance with ASC 820 “Fair Value Measurements and Disclosures”, the Company defines its’s fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that  may be used to measure fair value, in the following:

     •  Level 1 Pricing inputs are quoted prices available in active markets for identical investments as of the reporting date. 

      •   Level 2 Pricing inputs are quoted for similar investments, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data. Level 2 includes investments valued at quoted prices adjusted for legal or contractual restrictions specific to these investments. 

      •   Level 3 Pricing inputs are unobservable for the investment; that is, the inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. 

   The Company’s fair value hierarchy for its cash equivalents and marketable securities as of  December 31, 2024 and 2023, respectively, was as follows:

     December 31, 2024   Level 1    Level 2    Level 3    Total  
 Money market securities  $112  $—  $—  $112 
 Commercial paper   —   10,633   —   10,633 
 U.S. treasuries   —   9,192   —   9,192 
 Federal agency notes   —   5,317   —   5,317 
 Total  $112  $25,142  $—  $25,254 

     December 31, 2023   Level 1    Level 2    Level 3    Total  
 Money market securities  $1,515  $—  $—  $1,515 
 Commercial paper   —   14,622   —   14,622 
 U.S. treasuries   —   5,953   —   5,953 
 Federal agency