ACCESS Newswire Inc. Segments Disclosure

Note 12: Segment Reporting

 

Operating segments are components of an enterprise about which separate financial information is available and is evaluated periodically by management, namely the Chief Operating Decision Maker (“CODM”) of an organization, in order to determine operating and resource allocation decisions. By this definition, the Company has identified its Chief Executive Officer as the CODM. The Company considers itself to be in a single reportable segment under the authoritative guidance for segment reporting, specifically a communications company for publicly traded and private companies. The CODM uses operating income to evaluate our capital allocation, which could be re-investing income back into the Company, executing a share-repurchase, paying dividends or acquiring other entities. Operating income is used to monitor budget versus actual results. The CODM also uses operating income in competitive analysis by benchmarking to the Company’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the Company. Below provides a breakdown of costs and expenses of our one operating unit (in thousands):

Schedule of segment reporting
		Years Ended December 31,
		2025				2024
Revenues		$	22,619			$	23,057
Cost of revenues
Costs to deliver products			3,111				2,623
Employee costs			1,684				2,462
Teleconference costs			232				252
Amortization of capitalized software			278				220
Other segment costs			–				60
Total cost of revenue			5,305				5,617
Operating costs and expenses:
Employee costs			6,722				8,103
Consultants and professional services			2,532				3,035
Depreciation and amortization			2,687				2,708
Advertising, Trade Shows & Rebranding			1,647				1,267
Provision for credit losses			915				1,083
Software licensing			835				938
Stock compensation			808				703
Hosting			566				461
Merchant and bank fees			443				481
Acquisition/integration and other non-recurring costs			800				408
Rent			362				368
Impairment loss			250				14,150
Other operating expenses (1)			618				54
Total operating costs and expenses			19,185				33,759
Operating loss		$	(1,871	)		$	(16,319	)

____________________

(1)

Other operating expenses include insurance, travel, reseller commissions, tradeshow expense and other miscellaneous selling, general and administrative expenses