Company: DMRC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026996
Chunk: 45

Company: Digimarc CORP
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 45
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 due to lower headcount.

       28

Non-GAAP operating expenses for the six months ended June 30, 2025, decreased $2.4 million compared to the six months ended June 30, 2024. The decrease primarily reflects $2.8 million of lower cash compensation costs, $0.3 million of lower software and hardware costs and $0.3 million of lower other expenses, partially offset by higher professional service costs of $1.0 million. The $2.8 million of lower cash compensation costs primarily reflects $6.4 million of lower compensation costs due to lower headcount, partially offset by $3.2 million of higher cash severance costs incurred as a result of the reorganization.

Liquidity and Capital Resources

      June 30, 

      December 31, 

      2025 

      2024 

      Working capital 
      
     $
     15,685

     $
     30,193

      Current ratio (1) 

     2.7:1

     4.3:1

      Cash, cash equivalents and short-term marketable securities 
      
     $
     16,088

     $
     28,730

      (1) 
      The current ratio is calculated by dividing total current assets by total current liabilities. 

The $12.6 million decrease in cash, cash equivalents and marketable securities at June 30, 2025, from December 31, 2024, resulted primarily from:

      • 
      cash used in operations; 

      • 
      purchases of common stock related to tax withholding in connection with the vesting of restricted stock, restricted stock units, and performance restricted stock units; and 

      • 
      purchases of property and equipment and capitalized patent costs. 

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, and trade accounts receivable. We place our cash and cash equivalents with major banks and financial institutions and at times deposits may exceed insured limits. Marketable securities include U.S. treasuries, federal agency notes, and commercial paper. Our investment policy requires our portfolio to be invested to ensure that the greater of $3.0 million or 7% of the invested funds will be available within 30 days’ notice.

Other than cash used for operating needs, which may include short-term marketable securities, our investment policy limits