Investor Presentation March 2021 Safe Harbor Statement This presentation and other documents referenced herein include, and our officers and representatives may from time to time make or provide, certain estimates and other forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act including, among others, statements with respect to the Company's future revenu ...

HireQuest, Inc (NASDAQ:HQI) Q4 2020 Earnings Conference Call March 25, 2021 4:30 PM ET Company Participants Brett Maas - IR, Hayden IR Richard Hermanns - Chief Executive Officer Cory Smith - Chief Financial Officer Conference Call Participants Aaron Edelheit - Mindset Capital Peter Rabover - Artko Capital Operator Good afternoon, ladies and gentlemen, and welcome to the HireQuest, Inc. Fourth Quarter and Year-End 2020 Earnings Event. At this time, all participants are in placed on a listen-only mode. We wil ...

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 ...