Company: DMRC
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001437749-25-014773
Chunk: 9

Company: Digimarc CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 9
---
        Three Months Ended March 31, 

        2025 

        2024 

        Domestic 
        
       $
       2,146

       $
       2,874

        International (1) 

       7,222

       7,064

        Total 
        
       $
       9,368

       $
       9,938

       (1) 
       Revenue from the Central Banks, consisting of a consortium of central banks around the world, is classified as international revenue. Reporting revenue by country for this customer is not practicable. 

       10

        DIGIMARC CORPORATION

        NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

        (In thousands, except per share data)

        (UNAUDITED)

   Major Customers
    
   The following customers accounted for 10% or more of revenue:

        Three Months Ended March 31, 

        2025 

        2024 

        Customer A 

       38
       %

       42
       %

        Customer B 

       19
       %

       14
       %

        Customer C 

       *

       18
       %

      *
       Less than 10% 

   Long-Lived Assets by Geographical Area
    
   Long-lived assets by geographic area were as follows:

        March 31, 

        December 31, 

        2025 

        2024 

        United States 
        
       $
       899

       $
       1,026

        Europe 

       10

       14

        Total 
        
       $
       909

       $
       1,040

   5. Stock-Based Compensation
    
   Stock-based compensation includes expense charges for all stock-based awards to employees and directors. These awards include restricted stock awards, restricted stock units, and performance restricted stock units.
    
   Stock-based compensation expense related to internal labor is capitalized to software and patent costs based on direct labor hours charged to capitalized software and patent costs.
    
   Determining Fair Value
    
   Restricted Stock Awards
    
   The fair value of restricted stock awards (“RSA”) that vest upon meeting a service condition is based on the fair market value of the Company’s common stock on the date of the grant (measurement date) and is recognized on a straight-line basis over the service period of the award, which is generally three to four years for employee grants and one to