ACCESS Newswire Inc. Goodwill & Intangibles Disclosure

Note 5: Goodwill and Other Intangible Assets

 

The components of intangible assets are as follows (in thousands):

Schedule of intangible assets
		December 31, 2025
		Gross Carrying Amount				Accumulated Amortization				Net Carrying Amount
Customer relationships		$	1,998			$	(1,677	)		$	321
Proprietary software			3,198				(1,817	)			1,381
Distribution partner relationships			153				(114	)			39
Non-compete agreement			69				(69	)			–
Trademarks – definite-lived			13,350				(5,848	)			7,502
Trademarks – indefinite-lived			232				–				232
Total intangible assets		$	19,000			$	(9,525	)		$	9,475

 

		December 31, 2024
		Gross Carrying Amount				Accumulated Amortization				Net Carrying Amount
Customer relationships			1,998				(1,426	)			572
Proprietary software			3,198				(1,458	)			1,740
Distribution partner relationships			153				(99	)			54
Non-compete agreement			69				(69	)			–
Trademarks – definite-lived			13,350				(3,972	)			9,378
Trademarks – indefinite-lived			232				–				232
Total intangible assets		$	19,000			$	(7,024	)		$	11,976

 

The Company performed its annual assessment for impairment of intangible assets and determined there was no impairment for the year ended December 31, 2025, however, recorded an impairment charge of $14,150,000 associated with the Newswire trademarks for the year ended December 31, 2024. As a result of the Company’s rebranding to ACCESS Newswire, management determined the useful life of the Newswire trademarks to be 5 years as opposed to the original 15 years upon the initial valuation in 2022. This decrease in the useful life caused a decrease in the expected cashflows the assets are expected to generate, which resulted in the impairment charge.

 

The amortization of intangible assets is a charge to operating expenses and totaled $2,501,000 and $2,559,000 for the years ended 2025 and 2024, respectively.

 

The future amortization of the identifiable intangible assets is as follows (in thousands):

Schedule of future amortization identifiable intangible assets
Years Ending December 31:
2026			$	2,475
2027				2,347
2028				2,243
2029				2,178
Thereafter				–
Total			$	9,243

 

During the year ended December 31, 2022, we acquired Newswire, which added $16,122,000 of goodwill based on our preliminary purchase price allocation. During the year ending December 31, 2023, we concluded our purchase price allocation, which resulted in a reduction in goodwill of $571,000. Along with Newswire, the goodwill balance of $19,043,000 is related to the stock acquisitions of ACCESSWIRE in 2014, Filing Services Canada, Inc. in 2018 and Newswire in 2022, and the assets of the Visual Webcasting Platform in 2019. The Company conducted its annual impairment analyses as of December 31, 2025 and 2024 and determined that no goodwill was impaired.