Company: DMRC
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437749-25-005471
Chunk: 86

Company: Digimarc CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 86
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 payable in monthly installments. The first 26 months of rent payments and operating expenses were abated to cover the remaining term of the lease on our former corporate headquarters.

The lease term of our former corporate headquarters in Beaverton, Oregon ended in March 2024, with no remaining rent payments as of December 31, 2024. The Company stopped using this office space as its corporate headquarters in March 2022.                                                                 

Other income, net

     Year Ended December 31,

     Dollar

     Percent

      2024 

      2023 

      Increase/(Decrease) 

      Increase/(Decrease) 

      Other income, net 
      
     $
     2,341

     $
     2,452

     $
     (111
     )

     (5
     )%

      Other income, net (as % of total revenue) 

     6
     %

     7
     %

The $0.1 million decrease in other income, net for the twelve months ended December 31, 2024, compared to the corresponding twelve months ended December 31, 2023, was primarily due to $0.1 million of lower refundable research and development tax credits, and $0.1 million of foreign currency losses, partially offset by $0.1 million of higher interest income on our marketable securities.

Provision for income taxes

The provision for income taxes reflects current taxes and deferred taxes.

For the year ended December 31, 2024, our effective tax rate was 0%, reflecting a valuation allowance recorded against our deferred tax assets. The valuation allowance against deferred tax assets as of December 31, 2024 was $104.4 million, an increase of $9.1 million from $95.3 million as of December 31, 2023. We continually assess the applicability of a valuation allowance against our deferred tax assets. Based upon the positive and negative evidence available as of December 31, 2024, and largely due to the cumulative loss incurred by us over the preceding three years, which is considered a significant piece of negative evidence when assessing the realizability of deferred tax assets, a valuation allowance is recorded against our deferred tax assets. We will not record tax benefits on any future losses until it is determined that those tax benefits will be realized. All future reversals of the valuation allowance would result in a