Digimarc(DMRC) - 2022 Q4 - Annual Report

Acquisition and Partnerships - Digimarc completed the acquisition of EVRYTHNG Limited on January 3, 2022, enhancing its product cloud capabilities[17] - The partnership with Sealed Air aims to deliver smart packaging solutions across multiple markets, combining Digimarc's digitization platform with Sealed Air's digital packaging innovations[24] Revenue and Contracts - In 2022, 46% of Digimarc's revenue was generated from a long-term contract with Central Banks, which has been extended through December 31, 2029[37][38] - The company anticipates a minimum of $44 million in future revenue from current contracts as of December 31, 2022, up from $29 million in 2021, with approximately $24 million expected to be recognized in 2023[44] - Digimarc's backlog may not guarantee actual revenue due to potential modifications or cancellations of contracts included in the backlog[49] Technology and Innovation - Digimarc's technology achieved a 99% detection rate in a semi-industrial trial for digital watermarks, demonstrating effectiveness across various plastic packaging materials[23] - Digimarc Recycle technology demonstrated 99% accuracy in sorting flexible plastics, facilitating the creation of new end-markets for recycled materials[27] - The company has approximately 950 U.S. and foreign patents granted and pending, positioning it as a leader in digital watermarking technology[40] Employee Engagement and Development - The wellness program through Regence Empower has a participation rate of 45%, which is an increase of 10% from the previous year[66] - The company has implemented a performance management system to support continuous learning and development, with strong participation in employee surveys[64] - Compensation and benefits are reviewed against the market annually, ensuring competitive base salaries and restricted stock units for outstanding performance[60] - The company promotes internal mobility and transparency in leveling and promoting employees, with salary ranges posted for new positions[61] - The company provides various training and development programs, including tuition reimbursement and online training platforms[65] Diversity, Equity, and Inclusion (DEI) - The Digimarc Methodology for organizational health has been adopted to foster diversity, equity, and inclusion (DEI) within the company culture[55] - The Board of Directors oversees the company's ESG efforts, including DEI programs, through the Governance, Nominating, and Sustainability Committee[56] - The Chief People Officer is responsible for developing and advancing the company's human capital strategy, which includes DEI initiatives[67] Employee Benefits and Community Engagement - The company has a Self-Managed Paid Time Off (PTO) program for exempt employees, allowing flexibility in time off[62] - The company supports community outreach through a matching program for employee donations to charities[63] Employee Turnover - Digimarc's employee turnover rate increased to 14% in 2022, attributed to a more competitive labor market[51] Environmental, Social, and Governance (ESG) - The company has formed an internal ESG team to manage its environmental, social, and governance impacts, aligning with industry standards[32][34]