Company: DMRC
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001437749-25-014773
Chunk: 12

Company: Digimarc CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 12
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 model, which requires the estimation of expected credit losses over the contractual life of financial assets. The allowance is calculated using a forward-looking probability-weighted approach based on historical loss experience, current economic conditions, and reasonable and supportable forecasts. The Company records the allowance in “general and administrative” expense in the Consolidated Statements of Operations and Comprehensive Loss, up to the amount of revenue recognized to date for each account. Any incremental allowance is recorded as an offset to “deferred revenue” in the Consolidated Balance Sheets. Account receivables are written off and charged against the recorded allowance when the Company has exhausted collection efforts without success.
    
   Unpaid Deferred Revenue
    
   The unpaid deferred revenue that is included in trade accounts receivable is billed in accordance with the provisions of the contracts with the Company’s customers.

       15

        DIGIMARC CORPORATION

        NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

        (In thousands, except per share data)

        (UNAUDITED)

   Major Customers
    
   The following customers accounted for 10% or more of trade accounts receivable, net:

        March 31, 

        December 31, 

        2025 

        2024 

        Company A 

       32
       %

       47
       %

        Company B 

       11
       %

       12
       %

   9. Property and Equipment
    
   Property and equipment are stated at cost. Repairs and maintenance are charged to expense when incurred.
    
   Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets, generally two to ten years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life or the lease term.

        March 31, 

        December 31, 

        2025 

        2024 

        Office furniture and fixtures 
        
       $
       63

       $
       63

        Software 

       5,476

       5,476

        Equipment 

       2,584

       2,566

        Leasehold improvements 

       203

       203

        Gross property and equipment 

       8,326

       8,308

        Less accumulated depreciation 

       (7,417
       )

       (7,268
       )

        Property and equipment, net 
        
       $
       909