Company: DMRC
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437749-25-005471
Chunk: 91

Company: Digimarc CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 91
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 As a result, we believe our credit risk associated with cash and investments to be minimal.

A decline in the market value of any security that is deemed to be other-than-temporary is charged to earnings. To determine whether an impairment is other-than-temporary, we consider whether we have the ability and intent to hold the investment until a market price recovery and evidence indicating that the cost of the investment is recoverable outweighs evidence to the contrary. There have been no other-than-temporary impairments identified or recorded by us in the years ended December 31, 2024 and 2023.

Cash flows from operating activities

      Year Ended December 31, 

      Dollar 

      Percent 

      2024 

      2023 

      Increase/(Decrease) 

      Increase/(Decrease) 

      Net loss 
      
     $
     (39,010
     )
      
     $
     (45,959
     )
      
     $
     (6,949
     )

     (15
     )%

      Non-cash items 

     17,641

     19,556

     1,915

     10
     %

      Changes in operating assets and liabilities 

     (5,203
     )

     4,408

     9,611

     218
     %

      Net cash used in operating activities 
      
     $
     (26,572
     )
      
     $
     (21,995
     )
      
     $
     4,577

     21
     %

Cash flows used in operating activities for the twelve months ended December 31, 2024, compared the corresponding twelve months ended December 31, 2023, increased by $4.6 million, primarily as a result of $9.6 million from unfavorable timing of changes in operating assets and liabilities, and $1.9 million of lower non-cash items included in net loss, partially offset by $7.0 million lower net loss. The unfavorable timing of changes in operating assets and liabilities are largely due to the amount and timing of customer receipts, vendor payments, and refundable research and development tax credits. Customer receipts were negatively impacted by $5.8 million related to the expiration of a commercial contract in June 2024. The change in non-cash items primarily reflects lower stock-based compensation, depreciation, and amortization expenses.  

Cash flows from investing