Company: DMRC
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437749-25-005471
Chunk: 22

Company: Digimarc CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7A
Chunk 22
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, 2025 for interim periods, with early adoption permitted. The Company adopted this new standard on  December 31, 2024. The new standard has not had a material impact on the Company’s consolidated financial statements; however, we have provided additional details and disclosures under the new guidance in Note 4.  

         F-
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         DIGIMARC CORPORATION

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

         (In thousands, except per share data)

         Accounting Pronouncements Issued But Not Yet Adopted   In  December 2023, the FASB issued ASU No. 2023-09 “Income Taxes (Topic 740) - Improvements to Income Tax Disclosures”. The ASU requires greater disaggregation of income tax disclosures primarily on the income tax rate reconciliation and income taxes paid. This authoritative guidance will be effective for the Company starting in the fiscal year ending  December 31, 2025, with early adoption permitted. The Company is currently evaluating the effect of this new standard on the Company’s disclosures.   In  November 2024, the FASB issued ASU No. 2024-03 “Income Statement (Subtopic 220-40) - Reporting Comprehensive Income - Expense Disaggregation Disclosures”. The ASU requires disaggregated disclosure of income statement expenses, primarily on disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. This authoritative guidance will be effective for the Company starting in the fiscal year ending  December 31, 2027 for annual periods and in the first quarter of the fiscal year ending  December 31, 2028 for interim periods, with early adoption permitted. The Company is currently evaluating the effect of this new standard on the Company’s disclosures.

   (2) Fair Value of Financial Instruments
    
   In accordance with ASC 820 “Fair Value Measurements and Disclosures”, the Company defines its’s fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that  may be used to measure fair value, in the following:

     •  Level 1 Pricing inputs are quoted prices available in active markets for identical investments as of the reporting date. 

      •   Level 2 Pricing inputs are quoted for similar investments, or inputs that are observable, either directly or indirectly, for substantially the full term through cor