Company: DMRC
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034816
Chunk: 26

Company: Digimarc CORP
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 26
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 Costs incurred   3,230 
 Cash paid   (3,220)
 Balance at September 30, 2025  $10 

   15. Other Income
    
   The following table provides activity in other income, net:

       Three Months Ended September 30,    Nine Months Ended September 30,  
   2025    2024    2025    2024  
 Interest income  $135  $486  $567  $1,471 
 Refundable tax credit   61   152   148   402 
 Foreign currency gains (losses)   21   (21)  81   (5)
 Total other income, net  $217  $617  $796  $1,868 

       18

   16. Income Taxes
    
   The provision for income taxes reflects current taxes and deferred taxes. The effective tax rate for each of the nine months ended  September 30, 2025 and 2024 was 0%.
    
   The valuation allowance against net deferred tax assets as of  September 30, 2025, was $112,750, an increase of $8,389 from $104,361 as of  December 31, 2024. The Company continues to provide for a valuation allowance to offset its net deferred tax assets until such time it is more likely than not the tax assets or portions thereof will be realized.
    
   Excess tax deficiencies of $948 and $102 were recognized in the provision for income taxes for the three months ended  September 30, 2025 and 2024, respectively, which were offset by $948 and $102 of valuation allowance, respectively. 
    
   An excess tax deficiency of $1,827 and an excess tax benefit of $1,410 were recognized in the provision for income taxes for the nine months ended  September 30, 2025 and 2024, respectively, which were offset by $1,827 and $1,410 of valuation allowance, respectively.
    
   On  July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”), which includes a broad range of tax reform provisions, was signed into law in the United States, which includes a