mccormack riley 4

What Happened Riley McCormack, CEO of Digimarc Corp (DMRC), exercised one tranche of an option and acquired 500 common units of Digimarc LLC on May 21, 2026. He paid $12.05 per unit for a total cash outlay of $6,025. The Form 4 also shows the derivative exercise mechanics (a grant and immediate conversion of a 500-unit option tranche recorded at $0).

Key Details

• Transaction date: May 21, 2026.
• Acquisition: 500 common units purchased at $12.05 each; total $6,025.
• Derivative activity: Option tranche of 500 units was exercised (reported as grant at $0 and conversion/ exercise).
• Option structure: The option covers 1,500 common units exercisable in three equal tranches of 500; this filing reports exercise of one tranche.
• Units vs. shares: These are 500 common units of Digimarc LLC (the issuer is the managing member and majority owner).
• Redemption/convertibility: The common units are generally redeemable after May 20, 2027 for an equal number of Digimarc Corp common shares or, at the issuer’s election, cash equal to the fair market value of the shares.
• Shares owned after transaction: not specified in the filing.
• Filing timeliness: Reported for the transaction date (no late filing indicated).

Context This was an option exercise and purchase (a cash acquisition), not an immediate sale. The filing reflects the standard mechanics of exercising a tranche of a multi-part option and acquiring LLC common units that can later convert to company shares (or be redeemed for cash) after the stated redemption date. No inference about the CEO’s motives should be drawn from this single transaction.