Company: DMRC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026996
Chunk: 20

Company: Digimarc CORP
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 20
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tful Accounts
    
   The Company’s accounts receivables are subject to concentrations of credit risk. The Company maintains an allowance for its doubtful accounts receivable to reflect any estimated credit losses. The allowance is established in accordance with the current expected credit loss model, which requires the estimation of expected credit losses over the contractual life of financial assets. The allowance is calculated using a forward-looking probability-weighted approach based on historical loss experience, current economic conditions, and reasonable and supportable forecasts. The Company records the allowance in “general and administrative” expense in the Consolidated Statements of Operations and Comprehensive Loss, up to the amount of revenue recognized to date for each account. Any incremental allowance is recorded as an offset to “deferred revenue” in the Consolidated Balance Sheets. Account receivables are written off and charged against the recorded allowance when the Company has exhausted collection efforts without success.
    
   Unpaid Deferred Revenue
    
   The unpaid deferred revenue that is included in trade accounts receivable is billed in accordance with the provisions of the contracts with the Company’s customers.

       15

        DIGIMARC CORPORATION

        NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

        (In thousands, except per share data)

        (UNAUDITED)

   Major Customers
    
   The following customers accounted for 10% or more of trade accounts receivable, net:

       June 30,    December 31,  
   2025    2024  
 Company A   34%  47%
 Company B   12%  12%

   9. Property and Equipment
    
   Property and equipment are stated at cost. Repairs and maintenance are charged to expense when incurred.
    
   Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets, generally two to ten years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life or the lease term.

       June 30,    December 31,  
   2025    2024  
 Office furniture and fixtures  $63  $63 
 Software   5,705   5,476 
 Equipment   2,604   2,566 
 Leasehold improvements   227   203 
 Gross property and equipment   8,599   8,308 
 Less accumulated depreciation   (7,557