Company: DMRC
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437749-25-005471
Chunk: 122

Company: Digimarc CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 122
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 they are not capable of being distinct, they are combined with other subscriptions or services until a distinct performance obligation is identified. To determine the transaction price, management considers the terms of the contract and the Company’s customary business practices. Some contracts  may contain variable consideration. In those cases, management estimates the amount of variable consideration based on the sum of probability-weighted amounts in a range of possible consideration amounts. As part of this assessment, management evaluates whether any of the variable consideration is constrained and if it is, it is not included in the transaction price. The consideration is allocated between distinct performance obligations based on their stand-alone selling prices. When the standalone selling prices are not directly observable, management makes estimates based on reasonably available information, including market conditions, specific factors affecting the Company, and information about the customer. The Company recognizes the revenue associated with each performance obligation as the obligation is fulfilled, which for subscriptions is typically recognized ratably over time and for services is typically recognized when they are performed.  
   All revenue recognized in the Consolidated Statements of Operations is considered to be revenue from contracts with customers.
    
   The following table provides information about disaggregated revenue by major target market in the Company’s single reporting segment:

       Year Ended December 31,  
   2024    2023  
 Commercial:         
 Subscription  $21,218  $17,773 
 Service   1,308   1,042 
 Total Commercial  $22,526  $18,815 
 Government:         
 Subscription  $1,200  $1,200 
 Service   14,692   14,836 
 Total Government   15,892   16,036 
 Total  $38,418  $34,851 

   The Company has contract assets from contracts with customers that are classified as “trade accounts receivable” in the Consolidated Balance Sheets. See Note 7 for more information about trade accounts receivable.
    
   The Company has contract assets from capitalized contract acquisition costs that are classified as “other current assets” and “other assets” in the Consolidated Balance Sheet. These contract acquisition costs are recognized in proportion to the revenue recognized from the contract they are associated with.
    
   The following table provides information about contract assets:

       December 31,    December 31,  
   2024    2023  
 Contract acquisition costs,