Company: DMRC
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437749-25-005471
Chunk: 82

Company: Digimarc CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 82
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      Sales and marketing 
      
     $
     21,167

     $
     22,409

     $
     (1,242
     )

     (6
     )%

      Sales and marketing (as % of total revenue) 

     55
     %

     64
     %

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, consulting and outside contractor costs for sales and marketing and product initiatives; and 

      • 
      the allocation of facilities and information technology costs. 

      20

The $1.2 million decrease in sales and marketing expenses for the twelve months ended December 31, 2024, compared to the corresponding twelve months ended December 31, 2023, was primarily due to:

      • 
      lower cash compensation costs of $0.9 million, primarily reflecting lower headcount, net of annual compensation adjustments; 

      • 
      cash severance costs of $0.6 million in 2023; and 

      • 
      lower professional services and consulting costs of $0.5 million; partially offset by 

      • 
      cash severance costs of $0.6 million in 2024; and 

      • 
      lower cash labor costs allocated to cost of revenue of $0.4 million due to the amount and mix of billable labor hours incurred. 

Research, development and engineering

     Year Ended December 31,

     Dollar

     Percent

      2024 

      2023 

      Increase/(Decrease) 

      Increase/(Decrease) 

      Research, development and engineering 
      
     $
     26,209

     $
     26,577

     $
     (368
     )

     (1
     )%

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

     68
     %

     76
     %

Research, development and engineering expenses arise primarily from three areas that support our business model: fundamental research, platform development and product development.

Research, development and engineering expenses consist primarily of:

      • 
      compensation, benefits, incentive compensation in the form of