Company: DMRC
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437749-25-005471
Chunk: 92

Company: Digimarc CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 92
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 activities

Cash flows from investing activities for the twelve months ended December 31, 2024, compared to the corresponding twelve months ended December 31, 2023, decreased by $23.8 million, primarily as a result of higher purchases of marketable securities, and lower net proceeds from maturities of marketable securities.    

Cash flows from financing activities

Cash flows from financing activities for the twelve months ended December 31, 2024, compared to the corresponding twelve months ended December 31, 2023, increased by $31.5 million, primarily as a result of the $32.2 million of net cash proceeds raised from our registered direct stock offering in February 2024, partially offset by higher purchases of common stock. 

Future cash expectations

Under the rules of ASC Subtopic 205-40 “Presentation of Financial Statements-Going Concern” (“ASC 205-40”), companies are required to evaluate whether conditions and/or events raise substantial doubt about their ability to meet their future financial obligations as they become due within one year after the date that the financial statements are issued. This evaluation takes into account a company’s current available cash and projected cash needs over the one-year evaluation period but may not consider things beyond its control. We have incurred operating losses and negative cash flows from operating activities during the last several years, and depending on future results, may continue to incur such losses and negative cash flows in the future. We believe our currently available cash and marketable securities will satisfy our projected working capital and capital expenditure requirements for at least the next 12 months.

We expect that our subscription revenue in 2025 will be negatively impacted by the termination of a commercial contract that contributed $3.3 million of subscription revenue in 2024. This contract is expected to end in April 2025 and contribute $1.1 million of subscription revenue in 2025. Our subscription revenue in 2025 may also be impacted negatively by the expiration of a commercial contract in June 2024 that may or may not be extended. This contract contributed $2.1 million of subscription revenue in 2024. We expect government service revenue in 2025 to be $1.7 million to $2.0 million lower than 2024 due to a smaller approved budget for program work in 2025. 

We expect our expenses in 2025 to be significantly lower than 2024 due to the