Company: DMRC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026996
Chunk: 39

Company: Digimarc CORP
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 39
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5, compared to the corresponding three months ended June 30, 2024, primarily reflects:

      • 
      lower cash compensation costs of $2.2 million due to lower headcount; and 

      • 
      lower professional services costs of $0.2 million; partially offset by 

      • 
      higher stock compensation costs of $0.6 million. 

The $1.2 million decrease in research, development and engineering expenses for the six months ended June 30, 2025, compared to the corresponding six months ended June 30, 2024, primarily reflects:

      • 
      lower cash compensation costs of $2.8 million due to lower headcount; and 

      • 
      lower professional service costs of $0.4 million; partially offset by 

      • 
      higher cash severance costs of $1.6 million incurred as a result of the reorganization; and 

      • 
      higher stock compensation costs of $0.4 million. 

General and administrative

      Three Months Ended June 30, 

      Dollar 

      Percent 

      Six Months Ended June 30, 

      Dollar 

      Percent 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease) 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease) 

      General and administrative 
      
     $
     5,078

     $
     4,314

     $
     764

     18
     %
      
     $
     10,259

     $
     8,834

     $
     1,425

     16
     %

      General and administrative (as % of total revenue) 

     63
     %

     42
     %

     59
     %

     43
     %

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