Company: DMRC
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437749-25-005471
Chunk: 41

Company: Digimarc CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7A
Chunk 41
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 (2)%  827   (3)%
 Total  $(44)  —% $(204)  —%

   Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant items comprising the Company’s deferred tax assets and deferred tax liabilities are as follows:

       December 31,    December 31,  
   2024    2023  
 Deferred tax assets:         
 Federal and state net operating losses  $79,856  $77,201 
 Federal and state research and experimentation credits   13,610   12,406 
 Research and experimental costs   12,806   9,458 
 Stock based compensation   1,822   1,474 
 ASC 842 - lease liabilities   1,303   1,468 
 Accrued compensation   324   610 
 Fixed asset differences   191   185 
 Intangible asset differences   4   — 
 Other   264   59 
 Total gross deferred tax assets   110,180   102,861 
 Less valuation allowance   (104,361)  (95,256)
 Net deferred tax assets  $5,819  $7,605 
         
 Deferred tax liabilities:         
 Patent expenditures  $(888) $(1,096)
 ASC 842 - right of use assets   (795)  (897)
 Fixed asset differences   (4)  (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