Company: DMRC
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034816
Chunk: 50

Company: Digimarc CORP
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 50
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 (5,762
     )

     (5,396
     )

     (94
     )%

      Net cash used in operating activities 
      
     $
     (12,770
     )
      
     $
     (22,337
     )
      
     $
     (9,567
     )

     (43
     )%

Cash used in operating activities for the nine months ended September 30, 2025, decreased by $9.6 million, compared to the corresponding nine months ended September 30, 2024, reflecting a $5.4 million improvement due to the favorable timing of changes in operating assets and liabilities, a $2.3 million lower net loss and $1.9 million of higher non-cash items included in net loss. The favorable timing primarily reflects the timing of customer receipts and vendor payments, lower incentive compensation paid in 2025 for fiscal 2024 than paid in 2024 for fiscal 2023, and the timing and amount of refundable tax credits. The increase in non-cash items included in net loss primarily reflects $1.0 million of higher stock compensation expense and $0.6 million of higher adjustments to our allowance for doubtful accounts.

We incurred cash severance costs of $3.2 million as a result of the reorganization we announced on February 26, 2025, of which $3.2 million was paid during the nine months ended September 30, 2025.

     Cash flows from investing activities

Cash flows from investing activities for the nine months ended September 30, 2025, increased by $14.9 million, compared to the corresponding nine months ended September 30, 2024, primarily reflecting $16.9 million of lower purchases of marketable securities, partially offset by $1.6 million of lower proceeds from maturities of marketable securities and $0.3 million of higher purchases of property and equipment.

     Cash flows from financing activities

Cash flows from financing activities for the nine months ended September 30, 2025, decreased by $31.8 million, compared to the corresponding nine months ended September 30, 2024, primarily reflecting the $32.2 million of net cash proceeds raised from our registered direct stock offering in February 2024, partially offset by $0.4 million of lower purchases