Company: DMRC
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034816
Chunk: 23

Company: Digimarc CORP
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 23
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 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

        (In thousands, except per share data)

        (UNAUDITED)

   Amortization of intangible assets acquired is calculated using the straight-line method over the estimated useful lives of the assets.

       Estimated Life    September 30,    December 31,  
   (years)    2025    2024  
 Capitalized patent costs   ~17  $9,243  $9,174 
             
 Intangible assets acquired:             
 Purchased intellectual property   10   250   250 
 Developed technology   5   24,106   22,504 
 Customer relationships   10   11,519   10,754 
 Gross intangible assets       45,118   42,682 
 Accumulated amortization       (26,353)  (20,491)
 Intangibles, net      $18,765  $22,191 

   The amortization of capitalized patent costs, purchased intellectual property, and developed technology is recorded in “cost of revenue” and the amortization of customer relationships is recorded in “operating expenses” in the Consolidated Statements of Operations and Comprehensive Loss.
    
   Amortization expense on intangible assets was as follows:

       Three Months Ended September 30,    Nine Months Ended September 30,  
   2025    2024    2025    2024  
 Amortization expense  $1,627  $1,589  $4,789  $4,678 

   For intangible assets recorded at  September 30, 2025, the estimated future aggregate amortization expense for the years ending  December 31, 2025 through  December 31, 2029 is as follows:

       Amortization  
 As of September 30, 2025   Expense  
 Remaining in 2025  $1,632 
 2026   6,470 
 2027   1,615 
 2028   1,606 
 2029   1,578 

   12. Leases
    
   The Company accounts for leases in accordance with ASC No. 842, “Leases.”
    
   The Company entered