Company: ACCS
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0000843006-25-000012
Chunk: 434

Company: ACCESS Newswire Inc.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1B
Chunk 434
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  2,821   2,544   12%  10%Depreciation and amortization  2,708   2,728   12%  11%Impairment loss on intangible assets  14,150   —   61%  — Total operating expenses  33,759   21,654   146%  88%Operating loss  (16,319 )  (2,739 )  (71 )%  (11 )%Interest expense, net  (1,107 )  (1,249 )  (5 )%  (5 )%Other income (expense)  81   (391 ) —%   (2 )%Loss before income taxes  (17,345 )  (4,379 )  (75 )%  (18 )%Income tax benefit  (4,064 )  (938 )  (18 )%  (4 )%Net loss from continuing operations $(13,281 ) $(3,441 )  (58 )%  (14 )%

Revenues

Total revenue decreased by $1,465,000, or 6%, to $23,057,000 during the year ended December 31, 2024, as compared to $24,522,000 in 2023. The decrease is primarily due to a 15% decrease in revenue from our previously branded Newswire business due to a decrease in volume. Revenue from our investor relations website subscriptions and webcasting and events business decreased slightly as well.

Deferred Revenue

As of December 31, 2024, our deferred revenue balance was $4,743,000, which we expect to recognize primarily over the next twelve months, compared to $4,750,000 as of December 31, 2023. Deferred revenue primarily consists of advance billings for packages of our news distribution products as well as advance billings for subscriptions of our cloud-based products. 

Cost of Revenues

Cost of revenues consists primarily of direct labor costs, newswire distribution costs, teleconferencing costs and third-party licensing costs. Cost of revenues increased by $10,000 during the year ended December 31, 2024, as compared to the same period of 2023. Overall gross margin decreased $1,475,000, or 8