Company: DMRC
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437749-25-005471
Chunk: 42

Company: Digimarc CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7A
Chunk 42
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 federal, state, and foreign net operating loss carryforwards of $257,535, $173,657, and $70,922 respectively, which have a carryforward of 5 years to indefinite depending on the jurisdiction.
    
   As of  December 31, 2024, the Company has federal research and experimental tax credits of $14,746, which have a carryforward of 20 years.
    
   A summary reconciliation of the Company’s uncertain tax positions is as follows:

      Year Ended December 31, 
   2024    2023  
 Beginning balance  $1,063  $1,046 
 Addition for current year tax positions   85   94 
 Addition for prior year tax positions   —   — 
 Reduction for prior year positions   (11)  (77)
 Reduction for prior year positions resolved during the current year   —   — 
 Ending balance  $1,137  $1,063 

   As of  December 31, 2024, the total unrecognized tax benefits, if recognized, would not materially affect the Company’s effective tax rate.
    
   The Company records accrued interest and penalties associated with uncertain tax positions in the “provision for income taxes” in the Consolidated Statements of Operations. For the years ended  December 31, 2024 and 2023, the Company recognized accrued interest and penalties associated with uncertain tax positions of $0 and $0, respectively. The Company does not anticipate any of its unrecognized benefits will significantly increase or decrease within the next 12 months.
    
   The Company’s open tax years subject to examination in the U.S. federal jurisdiction are 2021 through 2023, in applicable state jurisdictions for the tax years 2021 through 2023, and in applicable foreign jurisdictions for tax year 2023. To the extent allowed by law, the taxing authorities  may have the right to examine prior periods where net operating losses or tax credits were generated and carried forward, and make adjustments up to the amount of the net operating loss or tax credit carryforward. 

   (16) Commitments and Contingencies
    
   Certain of the Company’s product and services agreements include an indemnification provision for claims from third parties relating to the Company’s intellectual property. Such indemnification provisions are accounted for in accordance with ASC 450. To date,