Company: DMRC
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034816
Chunk: 44

Company: Digimarc CORP
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 44
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 30, 

      Dollar 

      Percent 

      Nine Months Ended September 30, 

      Dollar 

      Percent 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease) 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease) 

      Other income, net 
      
     $
     217

     $
     617

     (400
     )

     (65
     )%
      
     $
     796

     $
     1,868

     (1,072
     )

     (57
     )%

      Other income, net (as % of total revenue) 

     3
     %

     7
     %

     3
     %

     6
     %

The $0.4 million decrease in other income, net for the three months ended September 30, 2025, compared to the corresponding three months ended September 30, 2024, primarily reflects lower interest income due to lower marketable securities balances and interest rates.

       27

The $1.1 million decrease in other income, net for the nine months ended September 30, 2025, compared to the corresponding nine months ended September 30, 2024, primarily reflects lower interest income due to lower marketable securities balances and interest rates and a lower refundable tax credit.

Income Taxes 

The provision for income taxes reflects current taxes and deferred taxes. The effective tax rate for each of the nine months ended September 30, 2025 and 2024 was 0%. Our effective tax rate is significantly lower than our statutory tax rate because we have a valuation allowance recorded against our deferred tax assets. 

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”), which includes a broad range of tax reform provisions, was signed into law in the United States, which includes a new Internal Revenue Code ("IRC") Section 174A. Under Section 174A, commencing with tax years beginning after December 31, 2024, domestic research or experimental expenditures may be deducted in the current period rather than capitalized and amortized over multiple years, as previously required under IRC Section 174. As a result of this legislation, we intend to deduct our domestic Section 174A expenditures beginning in our 2025 taxable year. We do not expect the