Company: ACCS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001683168-25-008214
Chunk: 3

Company: ACCESS Newswire Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 3
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. The Company reviews standalone selling
prices, at least annually, and updates these estimates if necessary.

     9 

The Company invoices its customers
based on the billing schedules designated in its contracts, typically upfront on either a monthly, quarterly or annual basis or per transaction
at the completion of the performance obligation. Deferred revenue for the periods presented was primarily related to press release packages
which have been invoiced or paid, however the releases have not yet been disseminated, as well as, subscription and service contracts,
which are billed upfront, quarterly, or annually, however the revenue has not yet been recognized. The associated deferred revenue is
generally recognized as releases are disseminated for press release packages and ratably over the billing period for subscriptions. Deferred
revenue as of September 30, 2025 and December 31, 2024, was $5,020,000 and $4,743,000, respectively, and is expected to be recognized
primarily within one year. Approximately $688,000 of the deferred revenue balance as of September 30, 2025, relates to contracts for press
release packages with an expiration date after September 30, 2026, however the customer may use the balance within one year. As of January
1, 2024, deferred revenue was $4,750,000. Revenue recognized for the nine months ended September 30, 2025 and 2024, which was included
in the deferred revenue balance at the beginning of each reporting period, was approximately $3,642,000 and $3,396,000, respectively.
Accounts receivable, net of allowance for credit losses, related to contracts with customers was $4,137,000 and $3,351,000 as of September
30, 2025 and December 31, 2024, respectively. As of January 1, 2024, accounts receivable, net of allowance for credit losses was $3,005,000.
Since substantially all the contracts have terms of one year or less, the Company has elected to use the practical expedient regarding
the existence of significant financing.

Costs to obtain
contracts with customers consist primarily of sales commissions. As of September 30, 2025 and December 31, 2024, the Company has
capitalized $52,000 and $69,000,
respectively, of costs to obtain contracts that are expected to be amortized over more than one year. For contract costs