Company: ACCS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001683168-25-008214
Chunk: 21

Company: ACCESS Newswire Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 21
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 was 6.66%. 

The carrying amount for the
Company’s derivative financial instrument is the estimated fair value of the financial instrument. The Company’s derivative
is not exchange listed and therefore the fair value is estimated under a mark-to-market approach using an analytics model that is a readily
observable market input. This model reflects the contractual terms of the derivative, such as notional value and expiration date, as well
as market-based observables including interest rates, yield curves, and the credit quality of the counterparty. The model also incorporates
the Company’s creditworthiness in order to appropriately reflect non-performance risk. Inputs to the derivative pricing model are
generally observable and do not contain a high level of subjectivity, and accordingly, the Company’s derivative is classified within
Level 2 of the fair value hierarchy. While the Company believes its estimate results in a reasonable reflection of the fair value of the
instrument, the estimated value may not be representative of actual value that could have been realized or that will be realized in the
near future.

In accounting for the interest
rate swap, the Company has determined it does not qualify for hedge accounting. The fair value of the swap agreement as of September
30, 2025 was a liability of $20,000 and December 31, 2024 was an asset of $60,000 and is included in either Other long-term assets or
liabilities, accordingly, in the Consolidated balance sheets. The fair value of the interest rate swap agreement excludes accrued interest
and takes into consideration current interest rates and current likelihood of the swap counterparty’s compliance with its contractual
obligations. As a result of the interest rate swap, the Company recognized a net unrealized loss of $1,000 and $80,000 during the three
and nine months ended September 30, 2025, respectively, compared to a net unrealized loss of $343,000 and $124,000 during the three and
nine months ended September 30, 2024, which are included in Other expense in the Consolidated statements of operations.

 20 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The discussion of the financial
condition and results of operations of the Company set forth below should be read in conjunction with the consolidated financial statements
and related notes thereto included elsewhere in this Form 10-Q. This Form 10-Q contains forward-looking statements that involve risks