Company: DMRC
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437749-25-005471
Chunk: 29

Company: Digimarc CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7A
Chunk 29
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 employee grants.
    
   The following inputs are used in the Monte Carlo valuation model to estimate the fair value:
    
   Stock Price. The stock price represents the fair market value of the Company’s common stock on the date of the grant.
    
   Expected Volatility. The Company estimates the volatility of its common stock at the date of grant based on the historical volatility of its common stock based on historical prices over the most recent period commensurate with the term of the award.
    
   Risk-Free Interest Rate. The Company determines the risk-free interest rate using current U.S. treasury yields for bonds with a maturity commensurate with the term of the award.
    
   Monte Carlo Valuation Inputs:

      Year Ended December 31, 
   2024    2023  
 Stock price  $36.64  $22.37 
 Expected volatility   66.3%  74.7%
 Risk-free interest rate   4.3%  4.3%

        F-
       15

        DIGIMARC CORPORATION

        NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

        (In thousands, except per share data)

   Stock-based Compensation

      Year Ended December 31, 
   2024    2023  
 Stock-based compensation:         
 Cost of revenue  $706  $1,126 
 Sales and marketing   2,788   2,640 
 Research, development and engineering   2,522   2,962 
 General and administrative   4,013   4,430 
 Stock-based compensation expense   10,029   11,158 
 Capitalized to software and patent costs   30   63 
 Total stock-based compensation  $10,059  $11,221 

   The following table sets forth total unrecognized compensation costs related to non-vested stock-based awards granted under the Company’s stock incentive plans:

       December 31,    December 31,  
   2024    2023  
 Total unrecognized compensation costs  $16,226  $15,370 

   Total unrecognized compensation costs will be adjusted for any future forfeitures if and when they occur.
    
   The Company expects to recognize the total unrecognized compensation costs as of  December 31, 2024 for all non-vested stock-based aw