Company: DMRC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026996
Chunk: 38

Company: Digimarc CORP
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 38
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 the corresponding three months ended June 30, 2024, primarily reflects:

      • 
      lower cash compensation costs of $1.9 million due to lower headcount; and 

      • 
      lower professional services costs of $0.2 million. 

The $2.8 million decrease in sales and marketing expenses for the six months ended June 30, 2025, compared to the corresponding six months ended June 30, 2024, primarily reflects:

      • 
      lower cash compensation costs of $2.9 million due to lower headcount;  

      • 
      lower stock compensation costs of $0.4 million; and 

      • 
      lower other costs of $0.3 million; partially offset by 

      • 
      higher cash severance costs of $0.9 million incurred as a result of the reorganization﻿. 

Research, development and engineering

      Three Months Ended June 30, 

      Dollar 

      Percent 

      Six Months Ended June 30, 

      Dollar 

      Percent 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease) 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease) 

      Research, development and engineering 
      
     $
     4,536

     $
     6,644

     $
     (2,108
     )

     (32
     )%
      
     $
     12,170

     $
     13,385

     $
     (1,215
     )

     (9
     )%

      Research, development and engineering (as % of total revenue) 

     57
     %

     64
     %

     70
     %

     66
     %

Research, development and engineering expenses consist primarily of:

      • 
      compensation, benefits, incentive compensation in the form of 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. 

       25

The $2.1 million decrease in research, development and engineering expenses for the three months ended June 30, 202