Company: ACCS
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0000843006-25-000025
Chunk: 30

Company: ACCESS Newswire Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 executive officer. 

As a percentage of revenue, general and administrative expenses were 36% for the three months ended March 31, 2025, as compared to 29% for the same period of 2024.

 22Table of Contents

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 were $1,594,000 for the three months ended March 31, 2025, a decrease of $477,000, or 23%, as compared to the same period of 2024. This decrease is primarily due to lower employee-related and advertising expenses.

As a percentage of revenue, sales and marketing expenses were 29% for the three months ended March 31, 2025, as compared to 37% for the same period of 2024.

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 $79,000, or 12%, to $733,000 during the three months ended March 31, 2025, as compared to 2024. The increase is primarily due to lower capitalization of software, as $23,000 was capitalized during the three months ended March 31, 2025 compared to $245,000 during the three months ended March 31, 2024, partially offset by an increase in headcount.

As a percentage of revenue, product development expenses were 13% for the three months ended March 31, 2025 compared to 12% for the same period of 2024.

Interest Income (Expense), Net

We recognized interest expense of $214,000 for the three-month period ended March 31, 2025, compared to $308,000 during the same period of 2024, which is all related to our long-term credit agreement. These amounts are offset by interest income on deposit and money market accounts of $10,000 and $23,000 for the three months ended March 31, 2025 and 2024, respectively.

Other income (expense)

Other income (expense) represents the change in fair value of our interest rate swap.  

Income Taxes

We recognized an income tax benefit of $185,000 for the three-month period ended March 31, 2025, compared to $158,000