Company: DMRC
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034816
Chunk: 42

Company: Digimarc CORP
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 42
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 compensation costs of $0.7 million largely due to lower headcount. 

       26

The $1.9 million increase in general and administrative expenses for the nine months ended September 30, 2025, compared to the corresponding nine months ended September 30, 2024, primarily reflects:

      • 
      higher professional services costs of $1.7 million; 

      • 
      higher cash severance costs of $0.7 million incurred as a result of the reorganization﻿; 

      • 
      lower allocation out for facilities and information technology costs of $0.6 million primarily due to lower allocable costs﻿; 

      • 
      higher other costs of $0.4 million; and 

      • 
      higher stock compensation costs of $0.3 million; partially offset by 

      • 
      lower cash compensation costs of $1.4 million largely due to lower headcount; and  

      • 
      lower software and hardware costs of $0.4 million. 

Amortization expense on acquired intangible assets

      Three Months Ended September 30, 

      Dollar 

      Percent 

      Nine Months Ended September 30, 

      Dollar 

      Percent 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease) 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease) 

      Amortization expense on acquired intangible assets 
      
     $
     288

     $
     280

     $
     8

     3
     %
      
     $
     847

     $
     823

     $
     24

     3
     %

      Amortization expense on acquired intangible assets (as % of total revenue) 
      
      4 
     %

     3
     %

      3 
     %

     3
     %

Amortization expense on acquired intangible assets relates to amortization expense recognized on the customer relationships intangible asset acquired in the EVRYTHNG acquisition.

The insignificant changes in amortization expense on acquired intangible assets reflect the impact of changes in foreign currency exchange rates. 

Stock-based compensation

      Three Months Ended September 30, 

      Dollar 

      Percent 

      Nine Months Ended September 30, 

      Dollar 

      Percent 

      2025