Company: DMRC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026996
Chunk: 41

Company: Digimarc CORP
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 41
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 ended June 30, 2025, compared to the corresponding six months ended June 30, 2024, primarily reflects a lower estimate of the future achievement of performance conditions on performance restricted stock unit (“PRSU”) awards as well as the timing of new stock grants, partially offset by a larger number of employee stock grants. 

We anticipate incurring an additional $18.9 million in stock-based compensation expense through June 30, 2029, for stock awards outstanding as of June 30, 2025. 

Other income, net

      Three Months Ended June 30, 

      Dollar 

      Percent 

      Six Months Ended June 30, 

      Dollar 

      Percent 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease) 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease) 

      Other income, net 
      
     $
     210

     $
     723

     (513
     )

     (71
     )%
      
     $
     579

     $
     1,251

     (672
     )

     (54
     )%

      Other income, net (as % of total revenue) 

     3
     %

     7
     %

     3
     %

     6
     %

The $0.5 million decrease in other income, net for the three months ended June 30, 2025, compared to the corresponding three months ended June 30, 2024, primarily reflects lower interest income due to lower marketable securities balances and interest rates.

The $0.7 million decrease in other income, net for the six months ended June 30, 2025, compared to the corresponding six months ended June 30, 2024, primarily reflects lower interest income due to lower marketable securities balances and interest rates.

Income Taxes 

The provision for income taxes reflects current taxes and deferred taxes. The effective tax rate for each of the six months ended June 30, 2025 and 2024 was 0%. Our effective tax rate is significantly lower than our statutory tax rate because we have a valuation allowance recorded against our deferred tax assets. 

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”), which includes a broad range of tax reform