Company: DMRC
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001437749-25-014773
Chunk: 13

Company: Digimarc CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 13
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       $
       1,040

   10. Goodwill
    
   The Company performs its annual goodwill impairment test during the second quarter of each fiscal year or whenever events or changes in circumstances indicate that the carrying value  may exceed the fair value. If the carrying value exceeds the estimated fair value, an impairment is recorded. The Company operates as a single reporting unit. The Company estimates the fair value of its single reporting unit using a market approach, which takes into account the Company’s market capitalization plus an estimated control premium. No impairment charges were recorded for the three months ended  March 31, 2025 and 2024.

     Balance at December 31, 2024  $8,532 
 Currency translation adjustments   222 
 Balance at March 31, 2025  $8,754 

   11. Intangibles
    
   Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset  may not be recoverable. No impairment charges were recorded for the three months ended  March 31, 2025 and 2024.
    
   Patent costs associated with the application and award of patents in the U.S. and various other countries are capitalized and amortized on a straight-line basis over the term of the patents as determined at the award date, which varies depending on the pendency period of the application, but generally approximates seventeen years.

       16

        DIGIMARC CORPORATION

        NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

        (In thousands, except per share data)

        (UNAUDITED)

   Amortization of intangible assets acquired is calculated using the straight-line method over the estimated useful lives of the assets.

       Estimated Life    March 31,    December 31,  
   (years)    2025    2024  
 Capitalized patent costs   ~17  $9,160  $9,174 
             
 Intangible assets acquired:             
 Purchased intellectual property   10   250   250 
 Developed technology   5   23,180   22,504 
 Customer relationships   10   11,077   10,754 
 Gross intangible assets       43,667   42,682 
 Accumulated amortization       (22,505