UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 000-53088 HIREQUEST, INC. (Exact name of registrant as specified in its charter) Delaware 91-2079472 (State of incorporation or organization) (I.R.S. employer identification no. 111 Springhal ...

Financial Data and Key Metrics Changes - For Q3 2020, the company reported revenue of $3.4 million, a slight increase of 2.7% compared to $3.3 million in Q3 2019, despite challenging economic conditions [6][10] - Net income from continuing operations was $2.0 million or $0.15 per diluted share, a significant improvement from a net loss of $8.5 million or negative $0.65 per diluted share in Q3 2019 [13] - The company generated nearly $6.7 million in operating cash flow from continuing operations through the first nine months of 2020 [6][13] Business Line Data and Key Metrics Changes - Franchise royalties in Q3 2020 were $3.2 million, up 2.5% from $3.1 million in Q3 2019, attributed to the conversion of company-owned locations to franchises [11] - Service revenue increased by 6.7% to $164,000 compared to $154,000 in the same quarter last year, primarily due to higher fees for optional services [12] Market Data and Key Metrics Changes - System-wide sales for franchisees were down 25% year-over-year, but the decline slowed during Q3 2020, indicating some stabilization in the temporary employment market [5][6] - The company noted that the sectors served by franchisees are stabilizing, but a robust recovery in leisure, hospitality, and construction is not expected in the near term [6] Company Strategy and Development Direction - The company continues to consider acquisition targets, particularly in the current economic environment, which presents opportunities for distressed businesses [7][8] - The company aims to maintain a strong balance sheet and is focused on ensuring any acquisitions can be quickly integrated into the franchise model [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the potential recovery of business as vaccines become available, particularly in sectors like leisure and hospitality [19][31] - The company remains confident that the worst of the pandemic's impact is behind them, with all franchises remaining operational [4][5] Other Important Information - The Board declared and paid a quarterly cash dividend of $0.05 per share, representing a yield of nearly 2.4% [9][14] - Current assets increased to $39.6 million as of September 30, 2020, from $37.0 million at the end of 2019, indicating a healthy balance sheet [15] Q&A Session Summary Question: Potential recovery with vaccine availability - Management indicated that if vaccines are effective, they expect a return to similar revenue levels as in 2019, particularly from sectors currently operating at low levels [19] Question: High operating margins in the quarter - Management attributed the high operating margins to improved performance in workers' compensation and the effects of cost-cutting measures implemented earlier in the year [20] Question: Future SG&A expectations - Management provided a target net margin of 3.75% to 4.25% of system-wide sales, emphasizing the importance of viewing margins in relation to system-wide sales for better stability [27]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 000-53088 HIREQUEST, INC. (Exact name of registrant as specified in its Charter) Indicate by check mark whether the registrant has submitted electronically every Interactive D ...

Financial Data and Key Metrics Changes - Total revenue in Q2 2020 was $2.9 million, a decrease of 10.5% from $3.2 million in Q2 2019 [17] - Net income for Q2 2020 was $1.2 million or $0.09 per diluted share, down from $2.3 million or $0.23 per diluted share in Q2 2019 [22] - System-wide sales decreased by 15.2% compared to the same quarter last year, leading to an 11.5% decline in royalty revenue to $2.6 million from $3.0 million [10][18] Business Line Data and Key Metrics Changes - Franchise royalties, which constitute approximately 90% of total revenue, were down 11.5% to $2.6 million [18] - Service revenue increased slightly to $262,000 in Q2 2020 from $257,000 in Q2 2019 [19] - Selling, general, and administrative expenses rose to $1.9 million in Q2 2020 from $871,000 in Q2 2019, primarily due to costs associated with being a public company [20] Market Data and Key Metrics Changes - The company experienced significant challenges in states with higher lockdown measures, such as Washington and Oregon, while the Southeast, particularly Florida, showed stronger performance due to ongoing commercial construction [32][34] - Year-over-year comparisons improved, with current performance off by 26% to 29% from the prior year, compared to over 40% at the end of March [62] Company Strategy and Development Direction - The company is focused on identifying M&A candidates to expand market presence and strengthen existing franchisee operations, especially in light of increased acquisition opportunities due to the economic crisis [14] - A disciplined approach to acquisitions is emphasized, with a goal to transition acquired assets to the franchise model quickly [16] Management's Comments on Operating Environment and Future Outlook - Management noted that the business is susceptible to economic fluctuations but is better equipped than competitors to weather these cycles due to a strong balance sheet and no debt [13] - As the economy reopens, the company expects to be well-positioned to provide temporary staffing rapidly, often faster than clients can ramp up permanent staffing [11] Other Important Information - The company generated $4 million of free cash flow from operations during the quarter, demonstrating resilience despite challenges [10] - Current assets as of June 30 were $38.6 million, including cash of $13.7 million, a significant increase from $4.2 million at the end of 2019 [23] Q&A Session Summary Question: Opportunities with cash and stock buyback - Management confirmed the initiation of a stock buyback program and is actively looking for acquisition opportunities, especially as competitors face challenges [28][30] Question: Pockets of strength and weaknesses in economies served - Management identified Washington and Oregon as struggling areas, while the Southeast, particularly Florida, is performing well due to strong commercial construction [32][34] Question: Cash usage and accounts receivable trends - Management indicated that accounts receivable typically increases seasonally, and cash may decline as AR rises, but profitability remains strong [46] Question: Business trends and performance recovery - Management noted improvements in business trends since March, with year-over-year comparisons showing a decline of 26% to 29% [62]

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents HireQuest, Inc.'s unaudited consolidated financial statements, including balance sheets, income, equity, and cash flows, for the period ended June 30, 2020 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2020, total assets increased to **$48.2 million**, cash significantly rose to **$13.7 million**, and stockholders' equity grew to **$33.9 million** Consolidated Balance Sheet Highlights (unaudited) | Balance Sheet Items | June 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $13,746,445 | $4,187,450 | | Accounts receivable, net | $19,646,917 | $28,201,279 | | Total current assets | $38,581,091 | $37,021,125 | | Total assets | $48,193,600 | $46,912,062 | | **Liabilities & Equity** | | | | Total current liabilities | $10,400,756 | $11,011,977 | | Total liabilities | $14,314,224 | $15,629,980 | | Total stockholders' equity | $33,879,376 | $31,282,082 | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Q2 2020 total revenue decreased to **$2.9 million** with net income of **$1.16 million**, while H1 2020 revenue increased to **$7.0 million** but net income declined to **$2.03 million** Financial Performance (unaudited) | Metric | Q2 2020 | Q2 2019 | H1 2020 | H1 2019 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $2,900,990 | $3,238,665 | $7,020,970 | $6,710,915 | | Income from Operations | $937,512 | $2,345,828 | $1,772,308 | $4,251,620 | | Net Income | $1,157,002 | $2,306,096 | $2,032,180 | $4,023,581 | | Diluted EPS | $0.09 | $0.23 | $0.15 | $0.40 | [Consolidated Statements of Changes in Stockholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity increased to **$33.9 million** by June 30, 2020, primarily driven by net income and stock-based compensation - For the six months ended June 30, 2020, total stockholders' equity increased by approximately **$2.6 million**, from **$31,282,082** to **$33,879,376**[16](index=16&type=chunk) - This was primarily driven by net income of **$2,032,180** and stock-based compensation of **$565,057**[16](index=16&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to **$9.7 million** for H1 2020, leading to a **$9.6 million** rise in the cash balance, ending at **$13.7 million** Cash Flow Summary - Six Months Ended June 30 (unaudited) | Cash Flow Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $9,665,926 | $1,547,849 | | Net cash (used in) provided by investing activities | ($144,722) | $983,026 | | Net cash provided by (used in) financing activities | $37,791 | ($3,810,895) | | **Net increase (decrease) in cash** | **$9,558,995** | **($1,280,020)** | | **Cash, end of period** | **$13,746,445** | **$11,297** | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail accounting policies, the impact of COVID-19, merger accounting, and key disclosures including a **$1.6 million** allowance for notes receivable - The company operates as a nationwide franchisor of on-demand labor solutions under the trade names "HireQuest Direct" and "HireQuest"[21](index=21&type=chunk) - The COVID-19 pandemic has had a material adverse effect on the company's business and results of operations[27](index=27&type=chunk) - Due to the potential impact of COVID-19 on borrowers' performance, the company established an allowance of approximately **$1.6 million** as of June 30, 2020, for potentially uncollectible notes receivable[98](index=98&type=chunk) - In July 2020, the Board of Directors authorized a one-year repurchase plan for up to **1 million** shares of common stock[102](index=102&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant impact of COVID-19 on operations, highlighting depressed sales, maintained profitability, improved liquidity, and the presentation of system-wide sales [Overview & COVID-19 Impact](index=19&type=section&id=Overview%20%26%20COVID-19%20Impact) The COVID-19 pandemic significantly impacted the company's franchisor operations, depressing sales and leading to a **$1.6 million** notes receivable reserve, yet liquidity improved with cash growing by **$9.5 million** - The COVID-19 pandemic depressed system-wide sales and resulting revenue, though sales consistently increased month-over-month since April 2020[110](index=110&type=chunk) - Franchisees closed or consolidated **13 offices**, at least in part, due to the financial impacts of COVID-19[111](index=111&type=chunk) - A reserve of **$1.6 million** was placed on promissory notes held from franchisees and the purchaser of California offices in response to depressed economic conditions[112](index=112&type=chunk) - The company's cash balance increased by approximately **$9.5 million** in the first half of 2020, from **$4.2 million** at year-end to **$13.7 million**[113](index=113&type=chunk) [Results of Operations](index=20&type=section&id=Results%20of%20Operations) Q2 2020 saw an **11.5%** decrease in franchise royalties and a **121.6%** increase in SG&A, while H1 2020 royalties rose **3.4%** but SG&A increased **113.9%** due to a **$1.6 million** reserve Financial Summary (in thousands) | | Q2 2020 | Q2 2019 | H1 2020 | H1 2019 | | :--- | :--- | :--- | :--- | :--- | | Franchise royalties | $2,639 | $2,981 | $6,345 | $6,138 | | Total revenue | $2,901 | $3,239 | $7,021 | $6,711 | | SG&A expenses | $1,931 | $871 | $5,184 | $2,424 | | Net income | $1,157 | $2,306 | $2,032 | $4,024 | - Q2 2020 franchise royalties decreased **11.5%** YoY to **$2.6 million**, negatively impacted by COVID-19[118](index=118&type=chunk) - H1 2020 SG&A expenses increased **113.9%** YoY, primarily due to a **$1.6 million** reserve placed on notes receivable related to the negative economic impact of COVID-19[126](index=126&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is strong, with current assets exceeding liabilities by **$28.2 million**, cash increasing to **$13.7 million**, and **$19.9 million** available on its **$30 million** line of credit - As of June 30, 2020, current assets exceeded current liabilities by approximately **$28.2 million**[129](index=129&type=chunk) - Cash balance increased from **$4.2 million** at the end of 2019 to **$13.7 million** at the end of Q2 2020, as payroll funding needs decreased and accounts receivable were collected[130](index=130&type=chunk) - The company has a **$30 million** line of credit with Truist Bank, of which **$19.9 million** was available as of June 30, 2020[72](index=72&type=chunk) [Non-GAAP Financial Measure: System-Wide Sales](index=23&type=section&id=Non-GAAP%20Financial%20Measure%3A%20System-Wide%20Sales) System-wide sales, a non-GAAP measure, decreased **15.2%** to **$44.1 million** in Q2 2020 due to COVID-19, while H1 2020 sales slightly increased **1.0%** to **$100.1 million** System-Wide Sales (Non-GAAP) | Period | 2020 | 2019 | Change | | :--- | :--- | :--- | :--- | | **Three months ended June 30** | $44,073,695 | $51,960,747 | -15.2% | | **Six Months ended June 30** | $100,536,300 | $99,524,968 | +1.0% | [Quantitative and Qualitative Disclosures about Market Risk](index=24&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, the company is not required to provide quantitative and qualitative disclosures about market risk - As a "smaller reporting company," HireQuest is not required to provide quantitative and qualitative disclosures about market risk[143](index=143&type=chunk) [Controls and Procedures](index=24&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2020, with no material changes to internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures were effective as of the end of the reporting period[144](index=144&type=chunk) - No material changes in internal control over financial reporting were identified during the quarter ended June 30, 2020[144](index=144&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=25&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings but does not anticipate any material adverse effects on its business or financial condition - The company does not expect any material adverse effects on its business, financial condition, or results of operations from current legal proceedings[146](index=146&type=chunk) [Risk Factors](index=25&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, primarily focusing on the COVID-19 pandemic's impact on the economy, franchisee health, and increased credit risk from loans to franchisees - The COVID-19 pandemic is identified as a serious threat, causing declines in system-wide sales and revenue, and leading to the closure or consolidation of **13 franchised offices**[148](index=148&type=chunk)[149](index=149&type=chunk) - The company's success is highly dependent on the financial health and cooperation of its franchisees, whose businesses have been negatively impacted by the pandemic[152](index=152&type=chunk) - The company faces significant credit risk from loans to franchisees and the purchaser of its California offices, leading to a **$1.6 million** reserve for potential non-payment due to COVID-19's economic impact[153](index=153&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not issue any unregistered securities or repurchase its own equity securities during the three months ended June 30, 2020 - No unregistered securities were issued during the three months ended June 30, 2020[154](index=154&type=chunk) - The company did not purchase any of its own securities during the three months ended June 30, 2020[155](index=155&type=chunk) [Other Information](index=27&type=section&id=Item%205.%20Other%20Information) No other information is reported for the period - None[156](index=156&type=chunk) [Exhibits](index=27&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the 2019 Equity Incentive Plan, certifications, and XBRL data files - A list of exhibits filed with the report is provided, including the 2019 Equity Incentive Plan, § 302 and § 906 certifications, and XBRL data files[157](index=157&type=chunk)

Financial Data and Key Metrics Changes - Total revenue for Q1 2020 was $4.1 million, an increase of nearly 19% compared to $3.5 million in Q1 2019, primarily due to the merger with Command Center [20] - Income from continuing operations was $0.06 per diluted share, down from $0.17 per diluted share in Q1 2019, largely impacted by a $1.4 million reserve on notes receivable [25][15] - The operating margin approached 55% in Q1 2020 when excluding the impact of the one-time reserve [13] Business Line Data and Key Metrics Changes - Franchise royalty revenue increased to $3.7 million in Q1 2020, up 17.4% from $3.2 million in Q1 2019, with $783,000 of this increase attributable to branches acquired in the merger [22] - Service revenue rose 31.3% to $415,000 compared to $316,000 in the previous year, driven by increased interest charges on overdue accounts receivable [22] Market Data and Key Metrics Changes - Franchisees in construction, manufacturing, logistics, and waste services were less impacted by the pandemic compared to those in hospitality services and auto auctions [11] - The company does not operate in the Northeastern U.S. or California, which are significant COVID-19 hotspots, mitigating some operational risks [12] Company Strategy and Development Direction - The company remains focused on serving franchisees and protecting its business amid ongoing volatility, with plans to reduce fixed costs in anticipation of revenue declines [10][12] - There is an ongoing search for acquisition opportunities to expand market presence and strengthen existing franchisee operations [16][17] Management's Comments on Operating Environment and Future Outlook - The management noted that the economic environment is challenging, with expectations of a decline in system-wide sales in 2020 due to the pandemic [12] - The recently passed CARES Act is expected to provide relief to franchisees, with many already receiving funds under the Paycheck Protection Program [14][42] - Management expressed optimism about long-term business prospects, citing a strong balance sheet with $10 million in cash and no debt [18][57] Other Important Information - The company recorded a $1.4 million reserve against outstanding notes related to the Command Center merger, which negatively impacted net income but did not affect cash flow [15] - Current assets as of March 31, 2020, were $40.6 million, including $10 million in cash, sufficient to fund operations for at least the next 18 months [26] Q&A Session Summary Question: What is the expected SG&A run rate excluding the $1.4 million note reserve? - Management indicated that the SG&A run rate should be around $2 million going forward, potentially lower due to heavy audit expenses in Q1 [29] Question: What are the current economic conditions and their impact on temporary workers? - Management noted that business bottomed out in early April but has slowly improved since then, with significant impacts expected once auto auctions and construction resume [36][38] Question: How is the health of franchisees being supported during this period? - The majority of franchisees have received or been approved for PPP loans, which are crucial for covering personnel costs and mitigating income drops [42][44] Question: How does the current economic environment compare to previous years? - Management acknowledged that while economic contractions are bad for sales volumes, the current situation may provide opportunities as competitors face financial difficulties [55][57]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED: MARCH 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 000-53088 HIREQUEST, INC. (Exact name of registrant as specified in its Charter) Indicate by check mark whether the Registrant is a large accelerated filer ☐, an accelerated file ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE YEAR ENDED: DECEMBER 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 000-53088 HIREQUEST, INC. (Exact name of registrant as specified in its charter) Delaware 91-2079472 (State of incorporation or organization) (I.R.S. Employer Identification no.) 111 Springh ...

HireQuest, Inc. (NASDAQ:HQI) Q4 2019 Results Conference Call March 30, 2020 10:00 AM ET Company Participants Brett Maas - Hayden IR Rick Hermanns - Chief Executive Officer Cory Smith - Chief Financial Officer Conference Call Participants Operator Greetings and welcome to HireQuest Fourth Quarter and Year-End 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. [Operator Instructions] Please note this confe ...

Command Center, Inc. (CCNI) Q2 2019 Earnings Conference Call August 13, 2019 4:30 PM ET Company Participants Brett Maas - Hayden IR Rick Hermanns - Chief Executive Officer Cory Smith - Chief Financial Officer Conference Call Participants Barry Bruner - Stifel, Nicolaus & Company, Inc. Michael Potter - Monarch Capital Group, LLC Operator Greetings, and welcome to the Command Center, Incorporated Second Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question ...