Company: DMRC
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437749-25-005471
Chunk: 83

Company: Digimarc CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 83
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 cash and stock-based compensation and related costs of our software and hardware developers and quality assurance personnel; 

      • 
      payments to outside contractors for software development services; 

      • 
      the purchase of materials and services for platform and product development; and 

      • 
      the allocation of facilities and information technology costs. 

The $0.4 million decrease in research, development and engineering expenses for the twelve months ended December 31, 2024, compared to the corresponding twelve months ended December 31, 2023, was primarily due to:

      • 
      cash severance costs of $0.8 million in 2023; and 

      • 
      lower stock compensation costs of $0.4 million; partially offset by 

      • 
      higher professional services and consulting costs of $0.5 million; and  

      • 
      higher cash compensation costs of $0.2, primarily reflecting annual compensation adjustments, net of lower headcount. 

General and administrative

     Year Ended December 31,

     Dollar

     Percent

      2024 

      2023 

      Increase/(Decrease) 

      Increase/(Decrease) 

      General and administrative 
      
     $
     17,073

     $
     18,071

     $
     (998
     )

     (6
     )%

      General and administrative (as % of total revenue) 

     44
     %

     52
     %

We incur general and administrative costs in the functional areas of finance, legal, human resources, intellectual property, executive, and board of directors. Costs for facilities and information technology are also managed as part of the general and administrative processes and are allocated to this area as well as each of the areas in sales and marketing and research, development and engineering, based on relative headcount.

General and administrative expenses consist primarily of:

      • 
      compensation, benefits and incentive compensation in the form of cash and stock-based compensation and related costs of our general and administrative personnel; 

      • 
      third party and professional fees associated with legal, accounting and human resources functions; 

      21

      • 
      costs associated with being a public company; 

      • 
      third party costs, including filing and governmental regulatory fees and outside legal fees and translation costs, related to the filing and maintenance of our intellectual property; and 

      • 
      the allocation of facilities and information technology costs. 

The