Company: ACCS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001683168-25-008214
Chunk: 14

Company: ACCESS Newswire Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 14
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30, 2025 and 2024. As of September 30, 2025, there was $347,000 of unrecognized compensation cost
related to our unvested restricted stock units, which will be recognized through 2027.

Note 5: Income Taxes

The Company recognized an
income tax expense of $67,000 and benefit of $127,000 for the three and nine-month periods ended September 30, 2025, respectively, compared
to income tax benefits of $347,000 and $642,000 for the three and nine-month periods ended September 30, 2024. At the end of each interim
period, the Company estimates the effective tax rate expected to be applicable for the full fiscal year and this rate is applied to the
results for the year-to-date period, and then adjusted for any discrete period items. For the three and nine-month periods ended September
30, 2025 and 2024, the variance between our effective tax rate and the U.S. statutory rate of 21% is primarily attributable to state income
tax, a benefit related to the Foreign Derived Intangible Income ("FDII") deduction and a lower statutory tax rate applied to
the Company's Canadian income. This is partially offset by additional expense associated with vesting of stock-based compensation awards.

     16 

The One Big Beautiful Bill
Act (or “OBBB Act”), enacted on July 4, 2025, permits the deduction of certain U.S. research and development expenditures
incurred in tax years beginning on or after January 1, 2025. However, expenditures attributable to research and development conducted
outside the U.S. must continue to be capitalized and amortized over fifteen years. The OBBB Act also provides the option to accelerate
the amortization of any remaining unamortized U.S. research and development expenditures incurred in tax years beginning on or after January
1, 2022, and before January 1, 2025, over a one or two year period beginning with the first taxable year beginning after December 31,
2024. While the Company currently does not anticipate the OBBB Act will have a material impact on its estimated annual effective tax rate
in 2025, the Company will continue to assess its impact.

The OBBB Act also enacted
changes to rules governing global intangible low-taxed income (GILTI) and foreign-derived intangible income (FDII). Those changes will