Company: DMRC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026996
Chunk: 9

Company: Digimarc CORP
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 9
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 are combined with other subscriptions or services until a distinct performance obligation is identified. To determine the transaction price, management considers the terms of the contract and the Company’s customary business practices. Some contracts  may contain variable consideration. In those cases, management estimates the amount of variable consideration based on the sum of probability-weighted amounts in a range of possible consideration amounts. As part of this assessment, management evaluates whether any of the variable consideration is constrained and if it is, it is not included in the transaction price. The consideration is allocated between distinct performance obligations based on their stand-alone selling prices. When the standalone selling prices are not directly observable, management makes estimates based on reasonably available information, including market conditions, specific factors affecting the Company, and information about the customer. The Company recognizes the revenue associated with each performance obligation as the obligation is fulfilled, which for subscriptions is typically recognized ratably over time and for services is typically recognized when they are performed.
    
   All revenue recognized in the Consolidated Statements of Operations and Comprehensive Loss is considered to be revenue from contracts with customers.
    
   The following table provides information about disaggregated revenue by major target market in the Company’s single reporting segment:

       Three Months Ended June 30,    Six Months Ended June 30,  
   2025    2024    2025    2024  
 Commercial:                 
 Subscription  $4,324  $6,080  $9,338  $11,542 
 Service   39   177   835   434 
 Total Commercial  $4,363  $6,257  $10,173  $11,976 
 Government:                 
 Subscription  $300  $300  $600  $600 
 Service   3,347   3,822   6,605   7,741 
 Total Government   3,647   4,122   7,205   8,341 
 Total  $8,010  $10,379  $17,378  $20,317 

   The Company has contract assets from contracts with customers that are classified as “trade accounts receivable” in the Consolidated Balance Sheets. See Note 8 for more information about trade accounts receivable.
    
   The Company has contract assets from capitalized contract acquisition costs that are classified as “other current