Company: DMRC
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001437749-25-014773
Chunk: 15

Company: Digimarc CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 15
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 5.7 
 Weighted-average discount rate   9%  9%

   The current lease liabilities are included in “accounts payable and other accrued liabilities” in the Consolidated Balance Sheets.
    
   The carrying value of the lease right of use assets is evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset  may not be recoverable. No impairment was recorded for the three months ended  March 31, 2025 and 2024. 

       17

        DIGIMARC CORPORATION

        NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

        (In thousands, except per share data)

        (UNAUDITED)

   Operating lease expense is included in “operating expenses” in the Consolidated Statements of Operations and Comprehensive Loss and in “cash flows from operating activities” in the Consolidated Statements of Cash Flows. The operating leases include variable lease payments, which are included in operating lease expense. Additional details of the Company’s operating leases are presented in the following table:

       Three Months Ended March 31,  
   2025    2024  
 Operating lease expense  $369  $429 
 Cash paid for operating leases  $452  $268 

   The table below reconciles the aggregate cash payment obligations for the next five years and total of the remaining years for the operating lease liability recorded in the Consolidated Balance Sheets as of  March 31, 2025:

       Cash  
   Payment  
 As of March 31, 2025   Obligations  
 Remaining in 2025  $995 
 2026   1,356 
 2027   1,397 
 2028   1,296 
 2029   1,389 
 Thereafter   1,066 
 Total lease payments   7,499 
 Imputed interest   (1,687)
 Total minimum lease payments  $5,812 

   13. Reorganization
    
   On  February 26, 2025, the Company announced a reduction of its global workforce to streamline the Company’s team structure to better align with its long-term growth initiatives and profitability objectives. All associated costs with the reorganization are recorded as Operating expenses in the Consolidated Statements of Operations and Comprehensive Loss. Corresponding liabilities are recorded as Accounts payable and other accrued liabilities in the Consolidated Balance Sheets