Company: ACCS
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0000843006-25-000025
Chunk: 29

Company: ACCESS Newswire Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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) %  (3)%Net (loss) from continuing operations $(765) $(783)  (14)%  (14)%

Revenues

Total revenue decreased $96,000, or 2%, to $5,476,000 during the three months ended March 31, 2025, as compared to $5,572,000 for the same period in 2024. The decrease in revenue is due to slight declines across our various product lines, however, revenue from our core press release business increased 1% due to an increase in volume for the quarter as compared to the prior year. 

Revenue Backlog

As of March 31, 2025, our deferred revenue balance was $5,021,000, which we expect to recognize over the next twelve months, compared to $4,743,000 at December 31, 2024, an increase of 6%. Deferred revenue primarily consists of advance billings for pre-paid packages of our news distribution products as well as advance billings for subscriptions of our cloud-based products.

Cost of Revenues

Cost of revenues consists primarily of direct labor costs, newswire distribution costs, teleconferencing costs, and third-party licensing costs. Cost of revenues decreased by $185,000, or 13%, during the three months ended March 31, 2025, as compared to the same period of 2024. The decrease was primarily due to reduction in headcount and optimization of our operations teams. Overall gross margin increased $89,000, or 2%, during the three months ended March 31, 2025, compared to the same period of 2024. As a result, gross margin percentage increased to 78% during the three months ended March 31, 2025, as compared to 75% during the same period of 2024.

General and Administrative Expenses

General and administrative expenses consist primarily of salaries, bonuses, stock-based compensation, insurance, fees for professional services, general corporate expenses (including bad debt expense) and facility and equipment expenses. General and administrative expenses were $1,953,000 for the three months ended March 31, 2025, an increase of $314,000 or 19%, as compared to the same period of 2024. The increase is primarily driven by a benefit to stock compensation expense of $340,000 recorded during the three months ended March 31, 2024, as a result of the resignation of an