Company: DMRC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026996
Chunk: 47

Company: Digimarc CORP
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 47
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1 million, compared to the corresponding six months ended June 30, 2024, primarily reflecting a $5.1 million improvement due to the favorable timing of changes in operating assets and liabilities. The favorable timing 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. 

We incurred cash severance costs of $3.2 million as a result of the reorganization we announced on February 26, 2025, of which $3.0 million was paid during the six months ended June 30, 2025. The remaining $0.2 million of severance costs are expected to be paid during the three months ending September 30, 2025. 

     Cash flows from investing activities

Cash flows from investing activities for the six months ended June 30, 2025, increased by $15.4 million, compared to the corresponding six months ended June 30, 2024, primarily reflecting lower purchases of marketable securities and higher proceeds from maturities of marketable securities.

     Cash flows from financing activities

Cash flows from financing activities for the six months ended June 30, 2025, decreased by $31.9 million, compared to the corresponding six months ended June 30, 2024, primarily reflecting the $32.2 million of net cash proceeds raised from our registered direct stock offering in February 2024. 

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Future Cash Expectations

We believe that our current cash, cash equivalents, and marketable securities balances will satisfy our projected working capital and capital expenditure requirements for at least the next 12 months.

Our subscription revenue in fiscal 2025 will be negatively impacted by the termination of a commercial contract that contributed $3.3 million of subscription revenue in fiscal 2024. This contract ended in April 2025 and contributed $1.1 million of subscription revenue in fiscal 2025. Our subscription revenue in fiscal 2025 will also be negatively impacted by the expiration of a commercial contract in June 2024. This contract contributed $2.1 million of subscription revenue in fiscal 2024. Our subscription revenue in fiscal 2025 may also be negatively impacted by the renegotiation currently underway of a