Company: DMRC
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034816
Chunk: 41

Company: Digimarc CORP
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 41
---
 primarily due to lower billable service hours. 

General and administrative

      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) 

      General and administrative 
      
     $
     5,355

     $
     4,861

     $
     494

     10
     %
      
     $
     15,614

     $
     13,695

     $
     1,919

     14
     %

      General and administrative (as % of total revenue) 

     70
     %

     51
     %

     62
     %

     46
     %

We incur general and administrative costs in the functional areas of finance, legal, human resources, intellectual property, executive and board of directors. Costs for facilities and information technology are also managed as part of the general and administrative processes. These costs are allocated to sales and marketing, research, development and engineering, and general and administrative based on relative headcount.

General and administrative expenses consist primarily of:

      • 
      compensation, benefits and incentive compensation in the form of cash and stock-based compensation and related costs of our general and administrative personnel; 

      • 
      third party and professional fees associated with legal, accounting and human resources functions; 

      • 
      costs associated with being a public company; 

      • 
      third party costs, including filing and governmental regulatory fees and outside legal fees and translation costs, related to the filing and maintenance of our intellectual property; and 

      • 
      the allocation of facilities and information technology costs. 

      The 
     $0.5 million 
     increase in general and administrative expenses for
      the three months ended 
     September 30, 2025
     , compared to the corresponding three months ended
     September 30, 2024, primarily reflects:

      • 
      higher stock compensation costs of $0.5 million; 

      • 
      higher other costs of $0.3 million; and 

      • 
      lower allocation out for facilities and information technology costs of $0.3 million primarily due to lower allocable costs; partially offset by 

      • 
      lower cash