Company: DMRC
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034816
Chunk: 21

Company: Digimarc CORP
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 21
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. Trade Accounts Receivable
    
   Trade Accounts Receivable
    
   Trade accounts receivables are recorded at the contractual or invoiced amount.

       September 30,    December 31,  
   2025    2024  
 Trade accounts receivable, current  $7,760  $6,563 
 Trade accounts receivable, long-term   90   80 
 Allowance for doubtful accounts   (1,439)  (151)
 Trade accounts receivable, net  $6,411  $6,492 
 Unpaid deferred revenue included in trade accounts receivable  $1,503  $2,590 

   Allowance for Doubtful Accounts
    
   The Company’s accounts receivables are subject to concentrations of credit risk. The Company maintains an allowance for its doubtful accounts receivable to reflect any estimated credit losses. The allowance is established in accordance with the current expected credit loss 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:

       September 30,    December 31,  
   2025    2024  
 Company A   30%  47%
 Company B   24%  * 
 Company C   *   12%

   * Less than 10% 

   9. Property and Equipment