Company: DMRC
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034816
Chunk: 22

Company: Digimarc CORP
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 22
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   Property and equipment are stated at cost. Repairs and maintenance are charged to expense when incurred.
    
   Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets, generally two to ten years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life or the lease term.

       September 30,    December 31,  
   2025    2024  
 Office furniture and fixtures  $63  $63 
 Software   6,022   5,476 
 Equipment   2,616   2,566 
 Leasehold improvements   227   203 
 Gross property and equipment   8,928   8,308 
 Less accumulated depreciation   (7,701)  (7,268)
 Property and equipment, net  $1,227  $1,040 

   10. Goodwill
    
   The Company performs its annual goodwill impairment test during the second quarter of each fiscal year or whenever events or changes in circumstances indicate that the carrying value  may exceed the fair value. If the carrying value exceeds the estimated fair value, an impairment is recorded. The Company operates as a single reporting unit. The Company estimates the fair value of its single reporting unit using a market approach, which takes into account the Company’s market capitalization plus an estimated control premium. No impairment charges were recorded for the three and nine months ended  September 30, 2025 and 2024. 

     Balance at December 31, 2024  $8,532 
 Currency translation adjustments   528 
 Balance at September 30, 2025  $9,060 

   11. Intangibles
    
   Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset  may not be recoverable. No impairment charges were recorded for the three and nine months ended  September 30, 2025 and 2024.
    
   Patent costs associated with the application and award of patents in the U.S. and various other countries are capitalized and amortized on a straight-line basis over the term of the patents as determined at the award date, which varies depending on the pendency period of the application, but generally approximates seventeen years.

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        DIGIMARC CORPORATION