Company: DMRC
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034816
Chunk: 48

Company: Digimarc CORP
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 48
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 September 30, 2024. The decrease primarily reflects $5.4 million of lower cash compensation costs largely due to lower headcount and $0.3 million of lower software and hardware costs, partially offset by higher other costs of $0.3 million and a $0.3 million lower allocation out of operating expenses primarily due to lower billable service hours. 

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Non-GAAP operating expenses for the nine months ended September 30, 2025, decreased $8.0 million compared to the nine months ended September 30, 2024. The decrease primarily reflects $8.1 million of lower cash compensation costs and $0.6 million of lower software and hardware costs, partially offset by higher professional service costs of $0.9 million. The $8.1 million of lower cash compensation costs primarily reflects $12.1 million of lower compensation costs largely due to lower headcount, partially offset by $3.2 million of higher cash severance costs incurred as a result of the reorganization and a $0.8 million lower allocation out of operating expenses primarily due to lower billable service hours. 

Liquidity and Capital Resources

      September 30, 

      December 31, 

      2025 

      2024 

      Working capital 
      
     $
     12,319

     $
     30,193

      Current ratio (1) 

     2.3:1

     4.3:1

      Cash, cash equivalents and short-term marketable securities 
      
     $
     12,562

     $
     28,730

      (1) 
      The current ratio is calculated by dividing total current assets by total current liabilities. 

The $16.2 million decrease in cash, cash equivalents and marketable securities at September 30, 2025, from December 31, 2024, resulted primarily from:

      • 
      cash used in operations; 

      • 
      purchases of common stock related to tax withholding in connection with the vesting of restricted stock, restricted stock units, and performance restricted stock units; and 

      • 
      purchases of property and equipment and capitalized patent costs. 

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, and trade accounts receivable. We place our cash and cash equivalents with major banks and