Company: DMRC
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437749-25-005471
Chunk: 139

Company: Digimarc CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 139
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  (9)
 Intangible asset differences   (4,132)  (5,603)
 Total gross deferred tax liabilities  $(5,819) $(7,605)
 Total net deferred tax assets and liabilities  $—  $— 

        F-
       23

        DIGIMARC CORPORATION

        NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

        (In thousands, except per share data)

   The Company had a valuation allowance of $104,361 and $95,256 on deferred tax assets as of  December 31, 2024 and 2023, respectively, an increase of $9,105 during the year ended  December 31, 2024.
    
   As of  December 31, 2024, the Company has federal, state, and foreign net operating loss carryforwards of $257,535, $173,657, and $70,922 respectively, which have a carryforward of 5 years to indefinite depending on the jurisdiction.
    
   As of  December 31, 2024, the Company has federal research and experimental tax credits of $14,746, which have a carryforward of 20 years.
    
   A summary reconciliation of the Company’s uncertain tax positions is as follows:

      Year Ended December 31, 
   2024    2023  
 Beginning balance  $1,063  $1,046 
 Addition for current year tax positions   85   94 
 Addition for prior year tax positions   —   — 
 Reduction for prior year positions   (11)  (77)
 Reduction for prior year positions resolved during the current year   —   — 
 Ending balance  $1,137  $1,063 

   As of  December 31, 2024, the total unrecognized tax benefits, if recognized, would not materially affect the Company’s effective tax rate.
    
   The Company records accrued interest and penalties associated with uncertain tax positions in the “provision for income taxes” in the Consolidated Statements of Operations. For the years ended  December 31, 2024 and 2023, the Company recognized accrued interest and penalties associated with uncertain tax positions of $0 and $0, respectively. The Company does not anticipate any of its unrecognized benefits will significantly increase or decrease within the