Company: DMRC
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001437749-25-014773
Chunk: 26

Company: Digimarc CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 26
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:

      • 
      higher cash severance costs of $1.6 million incurred as a result of the reorganization we announced on February 26, 2025﻿; partially offset by 

      • 
      lower cash compensation costs of $0.6 million due to lower headcount; and 

      • 
      lower stock compensation costs of $0.3 million. 

General and administrative

      Three Months Ended March 31, 

      Dollar 

      Percent 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease) 

      General and administrative 
      
     $
     5,181

     $
     4,520

     $
     661

     15
     %

      General and administrative (as % of total revenue) 
      
      55 
     %

     45
     %

We incur general and administrative costs in the functional areas of finance, legal, human resources, intellectual property, executive and board of directors. Costs for facilities and information technology are also managed as part of the general and administrative processes and are allocated to this area as sales and marketing and research, development and engineering, based on relative headcount.

General and administrative expenses consist primarily of:

      • 
      compensation, benefits and incentive compensation in the form of cash and stock-based compensation and related costs of our general and administrative personnel; 

      • 
      third party and professional fees associated with legal, accounting and human resources functions; 

      • 
      costs associated with being a public company; 

      • 
      third party costs, including filing and governmental regulatory fees and outside legal fees and translation costs, related to the filing and maintenance of our intellectual property; and 

      • 
      the allocation of facilities and information technology costs. 

      The 
     $0.7 million 
     increase in general and administrative expenses for
      the three month period ended 
     March 31, 2025
     , compared to the corresponding three month period ended
     March 31, 2024, primarily reflects:

      • 
      higher professional services costs of $1.1 million; and 

      • 
      higher cash severance costs of $0.7 million incurred as a result of the reorganization we announced on February 26, 2025﻿; partially offset by 

      • 
      lower stock compensation costs of $0.9 million. 

       26

Amortization expense