Company: ACCS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001683168-25-008214
Chunk: 4

Company: ACCESS Newswire Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 4
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 expected to
be amortized in less than one year, the Company has elected to use the practical expedient allowing the recognition of incremental
costs of obtaining a contract as an expense when incurred. The Company has considered historical renewal rates, expectations of
future renewals and economic factors in making these determinations.

Earnings Per Share (EPS)

Earnings per share accounting
guidance requires that basic net income per common share be computed by dividing net income for the period by the weighted average number
of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by
the weighted average number of common and dilutive common equivalent shares outstanding during the period. Shares issuable upon the exercise
of stock options totaling 53,750 were excluded in the computation of diluted earnings per common share during the three and nine months
ended September 30, 2025, respectively, because their impact was anti-dilutive. Shares issuable upon the exercise of stock options totaling
54,750 and 52,750 were excluded in the computation of diluted earnings per common share during the three and nine months ended September
30, 2024, respectively, because their impact was anti-dilutive.

Use of Estimates

The preparation of financial
statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Significant estimates include the allowance for credit losses and the valuation of goodwill,
intangible assets, deferred tax assets, and stock-based compensation. Actual results could differ from those estimates. 

Income Taxes

Deferred income tax assets
and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result
in future taxable or deductible amounts based on enacted tax laws and rates applicable to the periods in which the differences are expected
to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred income tax assets to the amounts expected
to be realized. For any uncertain tax positions, the Company recognizes the impact of a tax position, only if it is more likely than not
of being sustained upon examination, based on the technical merits of the position. The Company’s policy regarding the classification
of interest and penalties is to classify them as income tax expense in the financial statements, if applicable.

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Capitalized Software

Costs