Company: DMRC
Filing Date: 2025-02-26
Form Type: 8-K
Source: 0001437749-25-005231
Chunk: 1

Company: Digimarc CORP
Filing Date: 2025-02-26
Form: 8-K
Item: Item 2.05
Chunk 1
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Item 2.05.      Costs Associated with Exit or Disposal Activities  

On February 26, 2025, Digimarc announced a reduction of its global workforce, which could impact up to 90 employees, to streamline the Company’s team structure to better align with its long-term growth initiatives and profitability objectives. Digimarc expects this reorganization to be substantially complete in the first quarter of 2025.

Digimarc estimates that it will incur approximately $3.0 million in costs during the first quarter of 2025 in connection with the reorganization, primarily consisting of severance payments, employee benefits and other one-time termination costs. The reorganization is expected to reduce the Company’s cash expenses by approximately $16.5 million on an annualized basis, and result in approximately $5.5 million of other annualized cash cost savings.

Estimates of the expenses that Digimarc expects to incur in connection with the reorganization, estimates of expected reductions in Digimarc’s cash expenses resulting from the reorganization, and the timing of the reorganization, are subject to a number of assumptions, including local law requirements in applicable jurisdictions, and actual amounts may differ materially from estimates.

Safe Harbor Statement

This Current Report on Form 8-K contains forward-looking statements within the meaning of United States federal securities laws, including, among other things, our expectations regarding future events, our business, and market opportunities. Words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plans,” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements, including our statements regarding the expected costs of the reduction of our workforce and the timing of such costs, largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, and results of operations. These forward-looking statements speak only as of the date of this report and are subject to risks, uncertainties, and assumptions, including, among other things, the risk that the costs and expenses relating to the reduction of our workforce may be greater than anticipated, the risk this reduction in our workforce may adversely affect our internal programs and our ability to recruit and retain skilled and motivated personnel, and may be distracting to employees and management, the risk that these changes could negatively impact our business operations, reputation, or ability to serve our customers, and the risk that this reduction in our workforce may not generate its intended benefits as quickly