Company: ACCS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001683168-25-008214
Chunk: 7

Company: ACCESS Newswire Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 7
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 amounts.

Stock-based Compensation

The authoritative guidance
for stock compensation requires that companies estimate the fair value of share-based payment awards on the date of the grant using an
option-pricing model. The associated cost is recognized over the period during which an employee or director is required to provide service
in exchange for the award.

Translation of Foreign Financial Statements

The financial statements of
the foreign subsidiaries of the Company have been translated into U.S. dollars. All assets and liabilities have been translated at current
rates of exchange in effect at the end of the period. Income and expense items have been translated at the average exchange rates for
the year or the applicable interim period. The gains or losses that result from this process are recorded as a separate component of other
accumulated comprehensive income until the entity is sold or substantially liquidated.

Comprehensive Income (Loss)

Comprehensive income (loss)
consists of net loss and other comprehensive income related to changes in the cumulative foreign currency translation adjustment.

Business Combinations, Goodwill, and Intangible
Assets

The authoritative guidance
for business combinations specifies the criteria for recognizing and reporting intangible assets apart from goodwill. The Company records
the assets acquired and liabilities assumed in business combinations at their respective fair values at the date of acquisition, with
any excess purchase price recorded as goodwill. Goodwill is an asset representing the future economic benefits arising from other assets
acquired in a business combination that are not individually identified and separately recognized. Intangible assets consist of client
relationships, customer lists, distribution partner relationships, software, technology, non-compete agreements and trademarks that are
initially measured at fair value. At the time of the business combination, trademarks may be considered an indefinite-lived asset and,
as such, are not amortized as there may be no foreseeable limit to cash flows generated from them. For the Newswire acquisition, the Company
originally determined the trademarks acquired were considered a definite lived asset which will be amortized over a period of 15 years,
however upon the re-brand of the Company to ACCESS Newswire and subsequent review of the trademarks associated with Newswire, determined
the life to be 5 years remaining. The goodwill and intangible assets are assessed annually for impairment, or whenever conditions indicate
the asset may be impaired, and any such impairment will be recognized in the period identified. The client relationships (5-10 years),
customer lists (3 years), distribution partner relationships (10 years), non-compete agreements (5 years) and software and technology
(3