Group 1 - TCM|Strategic has distributed 1,385,147 common shares of Digimarc Corporation to certain Limited Partners, bringing its total ownership to 2,355,093 shares [1] - TCM|Strategic was formed in September 2020 as a Special Purpose Vehicle specifically for investing in Digimarc Corporation, with an original fund life of four years [2] - Approximately two-thirds of the Limited Partners have agreed to extend the Fund's expiry date by multiple years to maintain full ownership and control of their pro rata interest [2]

NEW YORK, March 17, 2025 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Digimarc Corporation (NASDAQ: DMRC).Shareholders who purchased shares of DMRC during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.CONTACT US HERE:https://securitiesclasslaw.com/securities/digimarc-corporation-loss-submission-form/?id=136033&from=4 CLASS PERIOD: May 2, 20 ...

Core Viewpoint - A class action lawsuit has been filed against Digimarc Corporation for alleged violations of securities laws, specifically related to misleading statements made by the company regarding its contract renewals and revenue impacts [1][4]. Group 1: Lawsuit Details - The lawsuit is initiated by the Schall Law Firm, focusing on violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 [1]. - Investors who purchased Digimarc securities between May 2, 2024, and February 26, 2025, are encouraged to participate in the lawsuit before the deadline of May 9, 2025 [2]. - The class has not yet been certified, meaning potential participants are not currently represented by an attorney [3]. Group 2: Allegations Against Digimarc - The complaint alleges that Digimarc made false and misleading statements regarding its ability to secure a contract renewal with a significant commercial partner [4]. - The company was reportedly forced to renegotiate a large contract, which negatively impacted its subscription revenue and annual recurring revenue [4]. - The misleading public statements led to investor damages once the truth about the company's situation was revealed [4].

NEW YORK, March 13, 2025 /PRNewswire/ --Why: Rosen Law Firm, a global investor rights law firm, announces the filing of a class action lawsuit on behalf of purchasers of securities of Digimarc Corporation (NASDAQ: DMRC) between May 2, 2024 and February 26, 2025, both dates inclusive (the "Class Period"). A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than May 9, 2025.So what: If you purchased Digimarc securities during the Class Period ...

NEW YORK, March 13, 2025 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Digimarc Corporation (NASDAQ: DMRC).Shareholders who purchased shares of DMRC during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.CONTACT US HERE:https://securitiesclasslaw.com/securities/digimarc-corporation-loss-submission-form/?id=135503&from=4 CLASS PERIOD: May 2, 20 ...

Core Viewpoint - A class action lawsuit has been filed against Digimarc Corporation for allegedly misleading investors about its business prospects, particularly regarding a significant contract renewal and its impact on revenue [1][2]. Group 1: Allegations and Financial Impact - The complaint alleges that Digimarc failed to disclose that a major commercial partner would not renew a large contract on the same terms, leading to a renegotiation of the contract [2]. - As a result of the contract issues, Digimarc's subscription revenue decreased by 10% to $5.0 million in Q4 2024, down from $5.6 million the previous year [3]. - The annual recurring revenue (ARR) also fell to $20.0 million from $22.23 million, primarily due to a $5.8 million decrease in ARR linked to the expiration of a commercial contract in June 2024 [3]. Group 2: Stock Market Reaction - Following the release of the financial results on February 26, 2025, Digimarc's stock price plummeted by $11.65, or 43.1%, closing at $15.39 per share on February 27, 2025 [3]. Group 3: Legal Proceedings - Shareholders interested in participating in the class action must file their papers with the court by May 9, 2025, to serve as lead plaintiff [4]. - A lead plaintiff represents the interests of other class members in the litigation process [4].

Core Viewpoint - A class action lawsuit has been filed against Digimarc Corporation for alleged securities fraud and unlawful business practices [2][3]. Financial Performance - Digimarc reported a 10% decrease in quarterly subscription revenue, falling to $5.0 million from $5.6 million year-over-year [3]. - The company's annual recurring revenue (ARR) decreased to $20.0 million, down from $22.23 million in the previous year, primarily due to a $5.8 million decrease linked to the expiration of a commercial contract in June 2024 [3]. - Following the financial results announcement, Digimarc's stock price dropped by $11.65 per share, or 43.1%, closing at $15.39 per share on February 27, 2025 [3].

Core Viewpoint - A shareholder class action lawsuit has been filed against Digimarc Corporation, alleging that the company made materially false and misleading statements regarding its business and operations, particularly concerning a significant commercial contract and its impact on revenue [1] Group 1: Lawsuit Details - The lawsuit claims that Digimarc failed to disclose that a large commercial partner would not renew a significant contract on the same terms [1] - As a result of the contract non-renewal, Digimarc is expected to renegotiate the large commercial contract [1] - The lawsuit suggests that these developments would adversely affect the company's subscription revenue and annual recurring revenue [1] Group 2: Investor Information - Investors who purchased shares of Digimarc between May 2, 2024, and February 26, 2025, and experienced significant losses are encouraged to discuss their legal rights [2] - The deadline for investors to request to be appointed as lead plaintiff in the case is May 9, 2025 [3] - Holzer & Holzer, LLC is noted as a top-rated securities litigation law firm that represents shareholders and investors in litigation [3]

Core Insights - Kirby McInerney LLP is investigating potential claims against Digimarc Corporation regarding possible violations of federal securities laws and unlawful business practices [1][3] - On February 26, 2025, Digimarc reported significant declines in revenue and annual recurring revenue for the fourth quarter and fiscal year ended December 31, 2025, leading to a sharp decline in share price [3] Financial Performance - Digimarc's share price fell by $11.65, approximately 43%, from $27.04 on February 26, 2025, to $15.39 on February 27, 2025, following the financial results announcement [3]

Revenue and Contracts - In 2024, Digimarc generated 41% of its revenue from a long-term contract with Central Banks, which was extended through December 31, 2029[28]. - The current contracts as of December 31, 2024, are projected to generate a minimum of $36.2 million in future revenue, down from $43.7 million as of December 31, 2023[36]. - Five customers represented approximately 76% of the company's revenue for the year ended December 31, 2024[66]. - Nearly half of the company's revenue in 2024 came from a contract with Central Banks, which expires at the end of 2029[67]. - The company expects subscription revenue in 2025 to be negatively impacted by the termination of a commercial contract that contributed $3.3 million in 2024, with an expected contribution of only $1.1 million in 2025[57]. - The company anticipates government service revenue in 2025 to be 12% to 14% lower than in 2024 due to a smaller approved budget for program work[67]. - Subscription revenue in 2025 is expected to be negatively impacted by the termination of a commercial contract that contributed $3.3 million in 2024, with an anticipated contribution of only $1.1 million in 2025[99]. Product Development and Technology - Digimarc Automate, launched in June 2024, enhances accuracy and efficiency in production and distribution, utilizing advanced digital watermarking technology[22]. - The new Digimarc Recycle sortation software, announced in October 2024, reduces hardware costs by nearly 50%, facilitating recycling and waste sortation[23]. - The Digimarc Validate mobile application, released in October 2024, provides a cost-effective tool for instant product authentication to combat counterfeiting[24]. - The introduction of next-generation digital watermarks in February 2024 improves security and access control for various use cases[20]. - The company’s digital watermarking technology faces competition from alternative technologies, which could impact its market adoption and revenue growth prospects[88]. Market and Competition - The company is expanding into new markets with the acquisition of EVRYTHNG, which involves inherent risks and unpredictability[65]. - The commercial market is in its earlier stages of development, and widespread adoption of the company's technology may take longer than anticipated, leading to continued operating losses[57]. - The company faces intense competition from existing and new technologies, which may adversely affect market acceptance of its products and services[63]. - The company relies on successful advocacy of its technology by partners, and failure to do so may hinder its ability to achieve profitable operations[60]. Financial Performance and Risks - The company incurred net losses in 2024 and 2023 primarily due to increased investments in product development and sales growth initiatives[98]. - The company has maintained a full valuation allowance against its deferred tax assets due to cumulative losses over the previous three years, indicating potential challenges in realizing these assets[101]. - The company may face risks related to the integration and management of acquisitions, which could disrupt operations and adversely affect financial results[82]. - The company has not achieved profitability in recent years, and future profitability will depend on maintaining current customers and acquiring new ones[99]. - The company is exploring potential acquisitions to complement or expand its product offerings, which may divert management's attention and incur additional expenses[82]. Legal and Compliance Risks - The company is subject to risks associated with international operations, including compliance with various international laws and regulations[75]. - The company is subject to potential infringement claims related to digital watermarking services, which could lead to costly litigation and resource diversion[109]. - Contracts may include indemnity provisions that increase the risk of third-party lawsuits, potentially resulting in significant financial liabilities[110]. - Ongoing litigation could adversely affect the company's financial condition and cash flows, with unpredictable costs associated with legal proceedings[111]. - Failure to meet delivery and performance requirements in service contracts could result in damages, increased costs, and harm to the company's reputation[112]. - Corporate governance provisions may hinder favorable acquisitions, potentially decreasing share value[113]. - Changes in financial accounting standards may affect the company's results of operations and business practices[97]. - Inability to meet regulatory or industry standards could limit growth and product development[115]. Operational Challenges - The company may experience variability in contracted arrangements, which could materially impact its financial position and cash flows[102]. - The company faces risks related to product defects or errors that could lead to claims, increased costs, and damage to reputation[118]. - The company may need to hire additional employees to meet increased demand, which could raise costs and impact short-term profitability[116]. - A reorganization announced on February 26, 2025, may affect up to 90 employees, aimed at aligning with long-term growth and profitability objectives[116]. - The company has identified risks associated with cybersecurity, including potential data breaches that could compromise sensitive information and disrupt operations[89]. Workforce and Employment - The company employs 215 full-time employees, with 109 in research, development, and engineering as of December 31, 2024[38].