Company: DMRC
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034816
Chunk: 12

Company: Digimarc CORP
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 12
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atisfied or partially unsatisfied was $28,880 and $25,215 as of  September 30, 2025, and  December 31, 2024, respectively. As of  September 30, 2025, the Company expects $22,672 of the $28,880 to be recognized as revenue during the next twelve months.

   4. Segment Information
    
   Significant Segment Expenses
    
   The Company derives its revenue from a single reporting segment: product digitization solutions. Revenue is generated in this segment primarily through software subscriptions and software development services. The Company manages its business activities on a consolidated basis. In addition, the Chief Executive Officer of the Company, as the chief operating decision-maker (“CODM”), reviews the Company’s operating results and makes decisions to allocate resources based on consolidated financial information. As such, the Company has one single reportable segment. The CODM uses consolidated net income (loss) as a performance measure and total consolidated assets as an asset measure, to assess performance of the Company, to allocate working capital, and to monitor budget versus actual results. 
    
   The following table illustrates reported segment revenue, segment profit and loss, and significant segment expenses.

       Three Months Ended September 30,    Nine Months Ended September 30,  
   2025    2024    2025    2024  
 Revenue:                 
 Subscription  $4,567  $5,252  $14,505  $17,394 
 Service   3,060   4,191   10,500   12,366 
 Total revenue   7,627   9,443   25,005   29,760 
 Cost of revenue:                 
 Subscription (1)   642   735   2,101   2,205 
 Service (1)   1,330   1,638   4,120   5,138 
 Amortization expense on acquired intangible assets   1,209   1,173   3,546   3,445 
 Total cost of revenue   3,181   3,546   9,767   10,788 
 Operating expenses:                 
 Cash compensation   4,875   10,322   22,281   30,425 
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