Company: DMRC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026996
Chunk: 8

Company: Digimarc CORP
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 8
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   5,317 
 Total  $112  $25,142  $—  $25,254 

   The fair value maturities of the Company’s cash equivalents and marketable securities as of  June 30, 2025, were as follows:

       Maturities by Period  
       Less than    1-5    5-10    More than  
   Total    1 year    years    years    10 years  
 Cash equivalents and marketable securities  $14,367  $14,367  $—  $—  $— 

   The Company considers all highly liquid marketable securities with original maturities of 90 days or less at the date of acquisition to be cash equivalents. Cash equivalents include commercial paper, U.S. treasuries, and money market securities totaling $8,388 and $8,889 at  June 30, 2025 and  December 31, 2024, respectively. Cash equivalents are carried at either cost or fair value, depending on the type of security.

   3. Revenue Recognition
    
   The Company derives its revenue primarily from software subscriptions and software development services. Applicable revenue recognition criteria are considered separately for each performance obligation as follows:
    
     • Subscription revenue consists primarily of revenue earned from subscription fees for access to the Company’s SaaS platform and products and, to a lesser extent, licensing fees for software products. The majority of subscription contracts are recurring, paid in advance and recognized over the term of the subscription, which is typically one to three years.

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        DIGIMARC CORPORATION

        NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

        (In thousands, except per share data)

        (UNAUDITED)

     • Service revenue consists primarily of revenue earned from the performance of software development services and, to a lesser extent, professional services. The majority of software development contracts are structured as time and materials agreements. Revenue for services is generally recognized as the services are performed. Billing for services rendered generally occurs within one month after the services are provided.

   Customer arrangements  may contain multiple deliverables such as software platform subscriptions, software product subscriptions, and professional services. Subscriptions and services offered are usually distinct performance obligations. When they are not capable of being distinct, they