Company: ACCS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001683168-25-008214
Chunk: 15

Company: ACCESS Newswire Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 15
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go into effect for tax years beginning after December 31, 2025; and thus do not impact current financial statements.

Under US GAAP, the effects
of the changes in tax laws are recognized in the period in which the tax laws are enacted. Accordingly, the Company has reflected the
estimated impact of provisions of the OBBB Act in the Company’s financial statements for the three and nine months ended September
30, 2025.

Note 6: Leases

Leasing activity generally
consists of office leases. In March 2019, a lease was signed to move the corporate headquarters to Raleigh, North Carolina. The lease
had a lease commencement date of October 2, 2019 and expires December 31, 2027. Minimum lease payments are $2,997,000, not including a
tenant improvement allowance of $488,000, which is included in fixed assets as of September 30, 2025 and December 31, 2024. The Company
recognized a ROU asset and corresponding lease liability of $2,596,000, which represents the present value of minimum lease payments discounted
at 3.77%, the Company’s incremental borrowing rate at lease inception. 

Lease liabilities totaled
$804,000
as of September 30, 2025. The current portion of this liability of $396,000
is included in Accrued expenses on the Consolidated balance sheets and the long-term portion of $408,000
is included in Lease liabilities on the Consolidated balance sheets. Rent expense consists of both operating lease expense from amortization
of our ROU assets as well as variable lease expense which consists of non-lease components of office leases (i.e. common area maintenance)
or rent expense associated with short-term leases. The components of lease expense were as follows (in thousands): 

    Schedule of lease expense 

    For the Three Months Ended  
    For the Nine Months Ended 

    September 30,  
    September 30,  
    September 30,  
    September 30, 

    2025  
    2024  
    2025  
    2024 
  
    Lease expense 

    Operating lease expense 
    $76  
    $76  
    $228  
    $228 
  
    Variable lease expense 
     17  
     18  
     48