Company: DMRC
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034816
Chunk: 24

Company: Digimarc CORP
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 24
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 into a sublease agreement and lease extension agreement for office space in Beaverton, Oregon in  February 2022 to move the Company’s corporate headquarters. The term of the sublease and lease extension runs through  September 2030, with remaining rent payments as of  September 30, 2025, totaling $6,817 plus operating expenses, payable in monthly installments. The first 26 months of rent payments and operating expenses were abated to cover the remaining lease term on the Company’s former corporate headquarters.
       
   All of the Company’s leases are operating leases. The following table provides additional details of leases presented in the Consolidated Balance Sheets:

       September 30,    December 31,  
   2025    2024  
 Lease right of use assets  $3,350  $3,659 
 Lease liabilities, current  $869  $781 
 Lease liabilities, long-term  $4,549  $5,213 
         
 Weighted-average remaining life (in years)   5.0   5.7 
 Weighted-average discount rate   9%  9%

   The current lease liabilities are included in “accounts payable and other accrued liabilities” in the Consolidated Balance Sheets.
    
   The carrying value of the lease right of use assets is evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset  may not be recoverable. No impairment charges were recorded for the three and nine months ended  September 30, 2025 and 2024. 

       17

        DIGIMARC CORPORATION

        NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

        (In thousands, except per share data)

        (UNAUDITED)

   Operating lease expense is included in “operating expenses” in the Consolidated Statements of Operations and Comprehensive Loss and in “cash flows from operating activities” in the Consolidated Statements of Cash Flows. The operating leases include variable lease payments, which are included in operating lease expense. Additional details of the Company’s operating leases are presented in the following table:

       Three Months Ended September 30,    Nine Months Ended September 30,  
   2025    2024    2025    2024  
 Operating lease expense  $356  $363  $1,098