Company: DMRC
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001437749-25-014773
Chunk: 27

Company: Digimarc CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 27
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 on acquired intangible assets

      Three Months Ended March 31, 

      Dollar 

      Percent 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease) 

      Amortization expense on acquired intangible assets 
      
     $
     271

     $
     272

     $
     (1
     )

     (—
     )%

      Amortization expense on acquired intangible assets (as % of total revenue) 
      
      3 
     %

     3
     %

Amortization expense on acquired intangible assets relates to amortization expense recognized on the customer relationships intangible asset acquired in the EVRYTHNG acquisition.

The insignificant change in amortization expense on acquired intangible assets reflects the impact of changes in foreign currency exchange rates. 

Stock-based compensation

      Three Months Ended March 31, 

      Dollar 

      Percent 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease) 

      Cost of revenue 
      
     $
     137

     $
     253

     $
     (116
     )

     (46
     )%

      Sales and marketing 

     355

     712

     (357
     )

     (50
     )%

      Research, development and engineering 

     407

     618

     (211
     )

     (34
     )%

      General and administrative 

     361

     1,248

     (887
     )

     (71
     )%

      Total stock-based compensation 
      
     $
     1,260

     $
     2,831

     $
     (1,571
     )

     (55
     )%

The $1.6 million decrease in stock-based compensation expense for the three month period ended March 31, 2025, compared to the corresponding three month period ended March 31, 2024, primarily reflects a lower estimate of the future achievement of performance conditions on PRSU awards as well as the timing of new stock grants. 

We anticipate incurring an additional $9.9 million in stock-based compensation expense through March 31, 2029, for stock awards outstanding as of March 31, 2025. On April 2, 2025, the Company issued 472 thousand shares of stock awards