Company: DMRC
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437749-25-005471
Chunk: 36

Company: Digimarc CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7A
Chunk 36
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 indicate that the carrying amount of the asset  may not be recoverable. No impairment was recorded for the twelve months ended  December 31, 2024. An “impairment of lease right of use assets and leasehold improvements” of $250 was recorded in the Consolidated Statements of Operations for the twelve months ended  December 31, 2023, related to the Company’s former corporate headquarters. The impairment charge was determined by comparing the carrying value of the assets to the net present value of estimated cash flows from the future sublease of the office space over the remaining lease term. 
    
   Operating lease expense is included in “operating expenses” in the Consolidated Statements of Operations and in “cash flows from operating activities” in the Consolidated Statements of Cash Flows. The operating leases include variable lease payments, which are included in operating lease expense. Additional details of the Company’s operating leases are presented in the following table:

       Year Ended December 31,  
   2024    2023  
 Operating lease expense  $1,482  $1,556 
 Cash paid for operating leases  $1,663  $1,151 

        F-
       20

        DIGIMARC CORPORATION

        NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

        (In thousands, except per share data)

   The table below reconciles the aggregate cash payment obligations for the next five years and total of the remaining years for the operating lease liability recorded in the Consolidated Balance Sheet as of  December 31, 2024:

       Cash  
   Payment  
 As of December 31, 2024   Obligations  
 2025  $1,317 
 2026   1,356 
 2027   1,397 
 2028   1,296 
 2029   1,389 
 Thereafter   1,066 
 Total lease payments   7,821 
 Imputed interest   (1,827)
 Total minimum lease payments  $5,994 

   (12) Shareholders’ Equity
    
   Preferred Stock
    
   In  June 2008, the Board of Directors authorized 2,500 shares of preferred stock, par value $0.001 per share. The Board of Directors has the authority to issue the undesignated preferred stock in one