Company: DMRC
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001437749-25-014773
Chunk: 25

Company: Digimarc CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 25
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as % of total revenue) 
      
      54 
     %

     56
     %

Sales and marketing expenses consist primarily of:

      • 
      compensation, benefits, incentive compensation in the form of cash and stock-based compensation and related costs of our sales, marketing, product, operations and customer support personnel; 

      • 
      travel and market research costs, and costs associated with marketing programs, such as trade shows, public relations and new product launches; 

      • 
      professional services and outside contractor costs for sales and marketing and product initiatives; and 

      • 
      the allocation of facilities and information technology costs. 

The $0.5 million decrease in sales and marketing expenses for the three month period ended March 31, 2025, compared to the corresponding three month period ended March 31, 2024, primarily reflects:

      • 
      lower cash compensation costs of $0.9 million due to lower headcount; and 

      • 
      lower stock compensation costs of $0.4 million; partially offset by 

      • 
      higher cash severance costs of $0.9 million incurred as a result of the reorganization we announced on February 26, 2025﻿. 

Research, development and engineering

      Three Months Ended March 31, 

      Dollar 

      Percent 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease) 

      Research, development and engineering 
      
     $
     7,634

     $
     6,741

     $
     893

     13
     %

      Research, development and engineering (as % of total revenue) 
      
      81 
     %

     68
     %

Research, development and engineering expenses consist primarily of:

      • 
      compensation, benefits, incentive compensation in the form of cash and stock-based compensation and related costs of our software and hardware developers and quality assurance personnel; 

      • 
      payments to outside contractors for software development services; 

      • 
      the purchase of materials and services for platform and product development; and 

      • 
      the allocation of facilities and information technology costs. 

       25

The $0.9 million increase in research, development and engineering expenses for the three month period ended March 31, 2025, compared to the corresponding three month period ended March 31, 2024, primarily reflects