Company: ACCS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001683168-25-008214
Chunk: 31

Company: ACCESS Newswire Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 31
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 compared to the same periods of 2024.
The decrease for the three months ended September 30, 2025, compared to the prior year is primarily due to a reduction in employee related
expenses, provision for credit losses, as well as indirect costs associated with the Compliance business. For the nine months ended September
30, 2025, this is partially offset by a benefit to stock compensation expense of $340,000 recorded during the nine months ended September
30, 2024, as a result of the resignation of an executive officer.

As a percentage of revenue,
general and administrative expenses were 26% and 31% for the three and nine months ended September 30, 2025, respectively, as compared
to 34% and 31% for the same periods of 2024.

Sales and Marketing Expenses

Sales and marketing expenses
consist primarily of salaries, stock-based compensation, sales commissions, advertising expenses, tradeshow expenses and other marketing
expenses. Sales and marketing expenses increased $34,000, or 2%, and decreased $924,000, or 16%, for the three and nine months ended September
30, 2025, respectively, as compared to the same periods of 2024. The decrease for the nine months ended September 30, 2025 is primarily
due to lower employee-related expenses and headcount during the first six months of the year, however, for the three months ended September
30, 2025, is more comparable to the prior year.

As a percentage of revenue,
sales and marketing expenses were 28% for the three and nine months ended September 30, 2025, as compared to 28% and 33% for the same
periods of 2024.

 26 

Product Development Expenses

Product development expenses
consist primarily of salaries, stock-based compensation, bonuses, and licenses to develop new products and technology to complement and/or
enhance our platform. Product development expenses increased $13,000, or 2%, and 28,000, or 1%, during the three and nine months ended
September 30, 2025, respectively, as compared to the same periods of 2024. The increase is primarily due to a reduction in capitalized
software development, partially offset by decreases in headcount and consultants. No costs were capitalized during the three months ended
September 30, 2025, while $23,000 was capitalized during the nine months ended September