Company: ACCS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001683168-25-008214
Chunk: 9

Company: ACCESS Newswire Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 9
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In November 2024, the FASB issued ASU 2024-03,
Disaggregation of Income Statement Expenses. This update requires enhanced disclosures of certain costs and expenses in the notes to the
financial statements. This update is applicable to all public entities and is effective for fiscal years beginning after December 15,
2026, and interim periods beginning after December 15, 2027. Early adoption is permitted. The amendments in this update should be applied
prospectively; however, retrospective application is permitted. The Company is currently evaluating the impact the new accounting guidance
will have on its disclosures.

Note 3: Discontinued Operations

On February 28, 2025 (the
“Closing Date”), the Company and Direct Transfer, LLC, its wholly owned subsidiary entered into and closed an Asset Purchase
Agreement (the “Purchase Agreement”) with Equiniti Trust Company, LLC (the “Buyer”). Pursuant to, and subject
to the terms and conditions of, the Purchase Agreement, the Buyer purchased certain assets related to the Company’s compliance business
(the “Purchased Assets”). The Purchased Assets consisted of certain accounts receivable, prepaid assets, contracts and intellectual
property, among other things, related to the Company’s services of providing i) disclosure software and services for financial reporting,
ii) stock transfer services, iii) annual meeting, print and shareholder distribution and fulfillment services and iv) virtual annual meeting
services (but not the intellectual property relating to the virtual annual meeting services). Revenue related to these services was previously
included in the Company’s “compliance revenue” stream as reported with the SEC in previous filings, except revenue related
to virtual annual meeting services, which was previously reported in “communications revenue” stream in previous SEC filings.
Additionally, revenue related to providing SEDAR services and revenue related to our whistleblower hotline, which was previously reported
as “compliance revenue” was retained by the Company. The Buyer assumed certain liabilities related to the Purchased Assets,
which included certain accounts payable, accrued liabilities and deferred revenue.

     13 

The
Company reviewed ASC 205-20-45, which provides guidance over the disposal of a component of an entity and determined that the criteria
were met to classify the assets of the compliance business as held-for-sale as of December 31, 2024. Further guidance states that once
a group of assets are determined to be held-for-sale, then they should be recorded as discontinued operations in the financial statements