Company: ACCS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001683168-25-008214
Chunk: 32

Company: ACCESS Newswire Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 32
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 30, 2025. During the three and nine months ended
September 30, 2024, we capitalized $137,000 and $537,000, respectively.

As a percentage of revenue,
product development expenses were 12% for the three and nine months ended September 30, 2025 and 2024.

Interest Income (Expense), Net

We recognized interest expense
of $57,000 and $325,000 for the three and nine months ended September 30, 2025, respectively, compared to $280,000 and $1,183,000 during
the same periods of 2024, which is all related to our long-term credit agreement. The decrease in interest expense for the three and nine
months ended September 30, 2025, is due to the reduction in debt as a result of the pay down from the sale of the compliance business.
These amounts are offset by interest income on deposit and money market accounts of $264,000 and $347,000 for the three and nine months
ended September 30, 2025, respectively, compared to $15,000 and $83,000 for the same periods of the prior year.

Other income (expense)

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

Income Taxes

We recognized an income tax
expense of $67,000 and a benefit of $127,000 for the three and nine-month periods ended September 30, 2025, respectively, compared to
income tax benefit of $347,000 and $642,000 for the three and nine-month periods ended September 30, 2024. For the three and nine-month
periods ended September 30, 2025 and 2024, the variance between our effective tax rate and the U.S. statutory rate of 21% is primarily
attributable to state income tax, a benefit related to the Foreign Derived Intangible Income ("FDII") deduction and a lower
statutory tax rate applied to the Company's Canadian income. This is partially offset by additional expense associated with vesting of
stock-based compensation awards

Liquidity and Capital Resources

As of September 30, 2025,
we had $3,261,000 in cash and cash equivalents and $4,137,000 in net accounts receivable. Current liabilities from continuing operations
as of September 30, 2025, totaled $10,847,000 including the current portion