Company: ACCS
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0000843006-25-000012
Chunk: 131

Company: ACCESS Newswire Inc.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 10
Chunk 131
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 carrying value as of December 31, 2024; therefore, an impairment charge of $14,150,000 was recognized during the year ended December 31, 2024. The impairment charge was recognized for the amount by which the carrying amount exceeded the estimated fair value. Management made significant judgments when developing the fair value estimate of the Newswire trademarks and reporting unit. As a result, a high degree of auditor judgment and effort was required, including involving the use of our valuation specialists, in performing audit procedures to evaluate the reasonableness of management’s cash flow forecasts and the significant assumptions identified above. Significant uncertainty exists with these assumptions because they are sensitive to future market or economic conditions.

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Our audit procedures included the following:

 ·Obtained an understanding of the internal controls and processes in place over the Company’s impairment review process, including management’s review of the significant assumptions described above.    ·Evaluated the reasonableness of management’s revenue, operating margins, and other forecasted amounts by comparing the forecasts to actual historical results.    ·Evaluated the reasonableness of guideline public company valuation multiples.    ·Evaluated management’s determination of reporting units and segments.    ·With the assistance of our valuation specialists, evaluated the valuation methodologies and significant assumptions, including discount rates, and developed a range of independent estimates and compared those to the significant assumptions used by management.    ·Tested the mathematical accuracy of the calculations.

/s/ Cherry Bekaert LLP

We have served as the Company’s auditor since 2010.

Raleigh, North Carolina

March 25, 2025

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ACCESS NEWSWIRE INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

  As of December 31,   2024  2023 ASSETS      Current assets:      Cash and cash equivalents $4,103  $5,714 Accounts receivable (net of allowance for credit losses of $1,059 and $721, respectively)  3,351   3,005 Income tax receivable  —   232 Other current assets  1,234   1,134 Current assets held for sale  1,338   1,419 Total current assets  10,026   11,504 Capitalized software (