Core Insights - TalentAlly has been recognized as a finalist for two DJAx Awards: the Technology Innovation Award and the Best Customer Success Team Award, highlighting its commitment to innovation and exceptional service in the recruitment industry [1][7]. Group 1: Technology Innovation - The Technology Innovation Award acknowledges organizations that effectively utilize technology to improve the recruitment process for job seekers and employers [2]. - With 83% of companies expected to adopt AI in hiring by the end of 2025, TalentAlly has partnered with AI Geometric to provide AI-powered virtual interview practice and resume reviews, enhancing job seekers' market readiness [3]. - This AI-driven platform allows candidates to refine their resumes and practice interviews in a supportive environment, ultimately improving their presentation to employers [4]. Group 2: Customer Success - The Best Customer Success Team Award recognizes organizations that deliver outstanding client support and measurable recruitment outcomes [5]. - TalentAlly assigns a dedicated Customer Success Manager to each enterprise client, focusing on maximizing job views, application starts, conversions, and hires through tailored strategies [6]. - The customer success team enhances engagement via targeted email campaigns, banner advertising, and curated diversity profile pages, utilizing over 20 inclusive partner job boards and various recruitment events [6]. Group 3: Leadership Perspective - Russell Esquivel Jr., President of TalentAlly, emphasized that the recognition reflects the team's dedication to innovation and service, particularly through the partnership with AI Geometric [7]. - He also acknowledged the Customer Success team's expertise and commitment, which have significantly contributed to employers achieving excellent recruitment results [8].

[Executive Summary](index=1&type=section&id=Executive%20Summary) Professional Diversity Network significantly reduced operating losses by 41% in 2024, improving segment performance and focusing on strategic growth and shareholder value [Overall Performance and Strategic Initiatives](index=1&type=section&id=Overall%20Performance%20and%20Strategic%20Initiatives) Professional Diversity Network significantly reduced operating losses by 41% in 2024, improving segment performance and focusing on strategic growth and shareholder value - Total operating losses reduced by **41%** from **$4.4 million** to **$2.6 million** in 2024[2](index=2&type=chunk) - TalentAlly experienced only a **5% revenue decline** in 2024 despite industry declines of 10-27%, with an **84% reduction in net operating loss** and a **10% increase in renewal rate**[2](index=2&type=chunk) - RemoteMore's revenue declined by **25%** but costs were reduced by **21%**, with new products launched in Q1 2025[2](index=2&type=chunk) - NAPW reduced its net operating loss by **65%** and aims to reach breakeven in 2025[2](index=2&type=chunk) [Fourth Quarter Financial Highlights](index=1&type=section&id=Fourth%20Quarter%20Financial%20Highlights) Fourth quarter 2024 saw a 14.5% consolidated revenue decline, alongside varied cost changes and an increased net loss, while cash balances improved significantly [Revenue Performance (Q4 2024)](index=1&type=section&id=Revenue%20Performance%20(Q4%202024)) Consolidated revenues for Q4 2024 decreased by 14.5% year-over-year, with declines across all segments including TalentAlly, NAPW, and RemoteMore Q4 2024 Revenue Performance by Segment (YoY) | Segment | Q4 2024 Revenue | Q4 2023 Revenue | Change (Dollars) | Change (Percent) | | :-------------------------------- | :-------------- | :-------------- | :--------------- | :--------------- | | TalentAlly Network (Recruitment services) | $1,002,000 | $1,233,000 | $(231,000) | (18.7)% | | NAPW Network (Membership fees) | $92,000 | $131,000 | $(39,000) | (29.8)% | | RemoteMore (Contracted software development) | $526,000 | $530,000 | $(4,000) | (0.8)% | | Total Consolidated Revenues | $1,620,000 | $1,894,000 | $(274,000) | (14.5)% | [Costs and Expenses (Q4 2024)](index=2&type=section&id=Costs%20and%20Expenses%20(Q4%202024)) Cost of revenues decreased by 4.0% in Q4 2024, while general and administrative expenses increased by 23.3% and sales and marketing expenses decreased by 39.4% Q4 2024 Costs and Expenses (YoY) | Expense Category | Q4 2024 (in thousands) | Q4 2023 (in thousands) | Change (Dollars) | Change (Percent) | | :---------------------- | :--------------------- | :--------------------- | :--------------- | :--------------- | | Cost of revenues | $670 | $698 | $(28) | (4.0)% | | Sales and marketing | $516 | $851 | $(335) | (39.4)% | | General and administrative | $989 | $802 | $187 | 23.3% | | Depreciation and amortization | $41 | $195 | $(236) | (121.0)% | | Total pre-tax cost and expenses | $2,216 | $2,546 | $(330) | (13.0)% | [Net Loss from Continuing Operations (Q4 2024)](index=2&type=section&id=Net%20Loss%20from%20Continuing%20Operations%20(Q4%202024)) The net loss from continuing operations increased by 48.6% to approximately $780,000 in Q4 2024 compared to the prior year Q4 2024 Net Loss from Continuing Operations (YoY) | Metric | Q4 2024 (in thousands) | Q4 2023 (in thousands) | Change (Dollars) | Change (Percent) | | :------------------------------------ | :--------------------- | :--------------------- | :--------------- | :--------------- | | Net Loss from Continuing Operations | $(780) | $(525) | $(255) | 48.6% | [Balance Sheet Highlights and Strategic Financial Activities (Q4 2024)](index=1&type=section&id=Balance%20Sheet%20Highlights%20and%20Strategic%20Financial%20Activities%20(Q4%202024)) Cash balances and working capital significantly improved in Q4 2024, supported by strategic financing activities and an increased stake in QBSG Limited Key Balance Sheet Metrics (as of Dec 31) | Metric | Dec 31, 2024 (approx.) | Dec 31, 2023 (approx.) | | :-------------- | :--------------------- | :--------------------- | | Cash balances | $1,731,000 | $628,000 | | Working capital | $271,000 | $(1,107,000) | - Entered a Stock Purchase Agreement in November 2024 for **140,000 shares** and **110,000 pre-funded warrants** at **$8.00/$7.90**, generating **$1,989,000 gross proceeds**[5](index=5&type=chunk) - Acquired an additional **6% entitlement** in QBSG Limited for **$1,200,000** (comprising **$700,000 cash** and **$500,000 in common stock**) in December 2024, increasing total entitlement to **15%**[5](index=5&type=chunk) - Entered a Stock Purchase Agreement in December 2024 for **250,000 shares** at **$6.00 per share**, generating **$1.5 million gross proceeds**, with an option for an additional **100,000 shares**[5](index=5&type=chunk) [Financial Results for the Year Ended December 31, 2024](index=2&type=section&id=Financial%20Results%20for%20the%20Year%20Ended%20December%2031%2C%202024) Fiscal year 2024 saw a 12.6% revenue decline, but significant cost reductions led to a 40.8% decrease in net loss from continuing operations [Revenue Performance (FY 2024)](index=2&type=section&id=Revenue%20Performance%20(FY%202024)) Total revenues for fiscal year 2024 decreased by 12.6% to approximately $6.731 million, with declines across TalentAlly, NAPW, and RemoteMore segments FY 2024 Revenue Performance by Segment (YoY) | Segment | FY 2024 Revenue | FY 2023 Revenue | Change (Dollars) | Change (Percent) | | :------------------------------------- | :-------------- | :-------------- | :--------------- | :--------------- | | TalentAlly Network (Recruitment services) | $4,472,000 | $4,731,000 | $(259,000) | (5.5)% | | NAPW Network (Membership fees) | $429,000 | $531,000 | $(102,000) | (19.2)% | | RemoteMore (Contracted software development) | $1,830,000 | $2,437,000 | $(607,000) | (24.9)% | | Total Revenues | $6,731,000 | $7,699,000 | $(968,000) | (12.6)% | [Costs and Expenses (FY 2024)](index=3&type=section&id=Costs%20and%20Expenses%20(FY%202024)) Cost of revenues decreased significantly by 23.5% in FY 2024, alongside substantial reductions in general and administrative, and sales and marketing expenses FY 2024 Costs and Expenses (YoY) | Expense Category | FY 2024 (in thousands) | FY 2023 (in thousands) | Change (Dollars) | Change (Percent) | | :---------------------- | :--------------------- | :--------------------- | :--------------- | :--------------- | | Cost of revenues | $2,646 | $3,461 | $(815) | (23.5)% | | Sales and marketing | $2,752 | $3,701 | $(949) | (25.6)% | | General and administrative | $3,534 | $4,452 | $(918) | (20.6)% | | Depreciation and amortization | $204 | $624 | $(420) | (67.3)% | | Total pre-tax cost and expenses | $9,136 | $12,238 | $(3,102) | (25.3)% | [Net Loss from Continuing Operations (FY 2024)](index=3&type=section&id=Net%20Loss%20from%20Continuing%20Operations%20(FY%202024)) The net loss from continuing operations decreased significantly by 40.8% to approximately $2.595 million in FY 2024, reflecting improved financial performance FY 2024 Net Loss from Continuing Operations (YoY) | Metric | FY 2024 (in thousands) | FY 2023 (in thousands) | Change (Dollars) | Change (Percent) | | :------------------------------------ | :--------------------- | :--------------------- | :--------------- | :--------------- | | Net Loss from Continuing Operations | $(2,595) | $(4,386) | $1,791 | 40.8% | [Summary Financial Statements](index=3&type=section&id=Summary%20Financial%20Statements) The company's financial statements for 2024 show improved financial position, detailed operational results, and a positive shift in cash flows from continuing operations [Summary of Financial Position](index=3&type=section&id=Summary%20of%20Financial%20Position) As of December 31, 2024, total assets increased to $7.982 million, total liabilities decreased, and total stockholders' equity substantially increased Summary of Financial Position (in thousands) | Metric | December 31, 2024 | December 31, 2023 | | :---------------------------- | :---------------- | :---------------- | | Cash and cash equivalents | $1,731 | $628 | | Total current assets | $3,227 | $2,368 | | Total Assets | $7,982 | $6,327 | | Total current liabilities | $2,956 | $3,475 | | Total liabilities | $3,141 | $3,758 | | Total stockholders' equity | $5,322 | $3,048 | [Summary of Financial Operations](index=4&type=section&id=Summary%20of%20Financial%20Operations) The summary of financial operations details revenue and expense breakdowns for both the full year and Q4 2024, showing overall revenue declines but reduced net loss for the full year Summary of Financial Operations - Year Ended December 31 (in thousands) | Category | 2024 | 2023 | Change (Dollars) | Change (Percent) | | :---------------------------- | :------ | :------ | :--------------- | :--------------- | | **Revenues:** | | | | | | Membership fees and related services | $429 | $531 | $(102) | (19.2)% | | Recruitment services | $4,434 | $4,640 | $(206) | (4.4)% | | Contracted software development | $1,830 | $2,437 | $(607) | (24.9)% | | Consumer advertising and marketing solutions | $38 | $91 | $(53) | (58.1)% | | **Total revenues** | **$6,731**| **$7,699**| **$(968)** | **(12.6)%** | | **Cost and expenses:** | | | | | | Cost of revenues | $2,646 | $3,461 | $(815) | (23.5)% | | Sales and marketing | $2,752 | $3,701 | $(949) | (25.6)% | | General and administrative | $3,534 | $4,452 | $(918) | (20.6)% | | Depreciation and amortization | $204 | $624 | $(420) | (67.3)% | | **Total pre-tax cost and expenses:** | **$9,136**| **$12,238**| **$(3,102)** | **(25.3)%** | | Loss from continuing operations, net of tax | $(2,595) | $(4,386) | $1,791 | 40.8% | | Basic and diluted loss per share (Continuing operations) | $(2.07) | $(4.27) | | | Summary of Financial Operations - Three Months Ended December 31 (in thousands) | Category | 2024 | 2023 | Change (Dollars) | Change (Percent) | | :---------------------------- | :------ | :------ | :--------------- | :--------------- | | **Revenues:** | | | | | | Membership fees and related services | $92 | $131 | $(39) | (29.8)% | | Recruitment services | $994 | $1,218 | $(224) | (18.4)% | | Contracted software development | $526 | $530 | $(4) | (0.8)% | | Consumer advertising and marketing solutions | $8 | $15 | $(7) | (46.7)% | | **Total revenues** | **$1,620**| **$1,894**| **$(274)** | **(14.5)%** | | **Cost and expenses:** | | | | | | Cost of revenues | $670 | $698 | $(28) | (4.0)% | | Sales and marketing | $516 | $851 | $(335) | (39.4)% | | General and administrative | $989 | $802 | $187 | 23.3% | | Depreciation and amortization | $41 | $195 | $(236) | (121.0)% | | **Total pre-tax cost and expenses:** | **$2,216**| **$2,546**| **$(330)** | **(13.0)%** | | Loss from continuing operations, net of tax | $(780) | $(525) | $(255) | 48.6% | | Basic and diluted loss per share (Continuing operations) | $(0.55) | $(0.47) | | | [Summary of Cash Flows from Continuing Operations](index=5&type=section&id=Summary%20of%20Cash%20Flows%20from%20Continuing%20Operations) In 2024, the company experienced a net increase in cash and cash equivalents from continuing operations of $1.104 million, a significant improvement driven by financing activities Summary of Cash Flows from Continuing Operations (in thousands) | Cash Flow Category | 2024 | 2023 | | :------------------------------------------------ | :------ | :------ | | Operating activities | $(2,501)| $(3,009)| | Investing activities | $(963) | $(947) | | Financing activities | $4,568 | $3,364 | | Net increase in cash and cash equivalents from continuing operations | $1,104 | $(592) | [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP financial measures, specifically Adjusted EBITDA, are presented to offer a clearer view of the company's underlying operating performance [Adjusted EBITDA Reconciliation](index=5&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA, a non-GAAP measure, improved for FY 2024 to a loss of $1.942 million, providing a clearer view of operating performance - Adjusted EBITDA is used to measure operating performance and provides additional meaningful comparisons between current and prior period results[17](index=17&type=chunk) Adjusted EBITDA Reconciliation (in thousands) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :---------------------------- | :------ | :------ | :------ | :------ | | Loss from Continuing Operations | $(781) | $(525) | $(2,595)| $(4,386)| | Stock-based compensation | $37 | $38 | $175 | $300 | | Loss attributable to noncontrolling interest | $19 | $12 | $84 | $103 | | Depreciation and amortization | $41 | $195 | $204 | $624 | | Other (expense) income, net | $185 | $(4) | $184 | $(13) | | Income tax expense (benefit) | $- | $(122) | $6 | $(139) | | **Adjusted EBITDA** | **$(499)**| **$(406)**| **$(1,942)**| **$(3,511)**| [About Professional Diversity Network](index=6&type=section&id=About%20Professional%20Diversity%20Network) Professional Diversity Network is a global operator of online and in-person networks dedicated to providing diverse professionals with networking, training, and employment opportunities [Company Profile and Mission](index=6&type=section&id=Company%20Profile%20and%20Mission) Professional Diversity Network (IPDN) operates global online and in-person networks, including NAPW and IAW, to empower diverse professionals and assist employers with talent acquisition and compliance - Professional Diversity Network (IPDN) operates online and in-person networks for diverse professionals, offering networking, training, education, and employment opportunities[21](index=21&type=chunk) - Key subsidiaries include National Association of Professional Women (NAPW) and International Association of Women (IAW), recognized networking organizations for professional women[21](index=21&type=chunk) - The company's mission is to set the standard in business diversity recruiting, networking, and professional development for various diverse groups globally, aiding employers in acquiring diverse talent and complying with OFCCP[21](index=21&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This section provides a disclaimer regarding forward-looking statements, highlighting inherent risks and uncertainties that may cause actual results to differ materially [Disclaimer and Risk Factors](index=6&type=section&id=Disclaimer%20and%20Risk%20Factors) This press release contains forward-looking statements subject to risks and uncertainties, with actual results potentially differing materially as disclosed in SEC filings - The press release contains forward-looking statements subject to risks and uncertainties, and actual results may differ materially[22](index=22&type=chunk) - Risk factors are disclosed in the company's most recently filed Annual Report on Form 10-K and subsequent SEC filings[22](index=22&type=chunk) - The company assumes no obligation to update the information in the press release[22](index=22&type=chunk)

Stock Splits - Effective January 5, 2023, the company implemented a 2-for-1 reverse stock split, adjusting all share amounts and prices accordingly[19] - A second reverse stock split of 10-for-1 is scheduled for March 13, 2025, with similar adjustments to share amounts and prices[20] Forward-Looking Statements - The company emphasizes that actual results may differ materially from forward-looking statements made in the annual report[18]

Core Insights - Expo Experts, a sub-brand of TalentAlly, has launched a new product called Clearance Match, aimed at reducing costs and logistical challenges in hiring security cleared talent [1][5] - The demand for security clearance jobs is projected to increase by 7-10% through 2025, highlighting the growing need for individuals with active security clearance [2] - Clearance Match efficiently connects job seekers with recruiters, streamlining the recruitment process in the security clearance industry [2][3] Company Overview - Expo Experts specializes in STEM-focused recruitment and has over 20 years of experience in facilitating connections between employers and niche candidates [6] - The company was acquired by TalentAlly in January 2023, enhancing its capabilities in delivering industry-specific hiring solutions [7] - TalentAlly operates networks that provide access to diverse employment opportunities, aiming to bridge the gap between diverse individuals and inclusive companies [8] Product Features - Clearance Match allows employers to reduce hiring costs by connecting them with candidates who already possess security clearance, thus eliminating the need for employers to incur clearance costs [3] - The platform enables employers to search for candidates based on specific criteria such as security clearance level, skills, location, and salary expectations [3] - Job seekers can create profiles to match with employers or actively apply for jobs, maximizing their career opportunities [4]

Core Insights - Professional Diversity Network, Inc. (PDN) announced a strategic investment of $1.3 million in AI Geometric Ltd., acquiring a 13% equity stake, aimed at enhancing its recruitment platform TalentAlly with advanced AI technology [1][5][12] - The collaboration with AI Geometric is designed to improve the recruitment process by automating job applications, candidate screening, and interview preparation, thereby benefiting both job seekers and employers [2][3][7] Investment Details - PDN's investment of $1.3 million in AI Geometric Ltd. secures a 13% equity stake as of January 27, 2025 [1][5] - The investment is expected to significantly enhance the technological infrastructure of TalentAlly, PDN's flagship recruitment platform [1][5] Market Context - The job market is currently facing significant challenges, with over 250 million individuals seeking employment globally [2] - TalentAlly aims to bridge the gap between job seekers and employers, facilitating efficient and high-quality hiring processes [2][3] Technological Integration - The integration of AI Geometric's technology will allow TalentAlly to offer features such as automated job applications, intelligent candidate screening, and interactive interview preparation [1][4][12] - Job seekers will benefit from a one-week free trial of AI-powered virtual interview practice sessions and resume optimization [4] Strategic Goals - The partnership aims to redefine connections between job seekers and employers by eliminating communication barriers and enhancing engagement through AI tools [3][7] - AI Geometric's goal is to facilitate 1 million job placements by 2026, representing a $5 billion economic impact [5]

Core Insights - Professional Diversity Network, Inc. (PDN) has made a strategic investment of $1.3 million in AI Geometric Ltd., acquiring a 13% equity stake, aimed at enhancing the technological infrastructure of its recruitment platform, TalentAlly LLC [1][5] - The collaboration with AI Geometric is designed to improve the recruitment process by automating job applications, candidate screening, and interview preparation, thereby benefiting both job seekers and employers [1][2][3] Investment Details - The investment of $1.3 million was finalized on January 27, 2025, and is expected to significantly enhance TalentAlly's AI-driven recruitment ecosystem [1] - This partnership is anticipated to facilitate 1 million job placements by 2026, representing a projected economic impact of $5 billion [5] Recruitment Process Enhancement - TalentAlly aims to redefine connections between job seekers and employers by utilizing AI tools for direct engagement, managing inquiries, and conducting interviews [3] - The integration of AI Geometric's technology will provide job seekers with a one-week free trial for AI-powered virtual interview practice and resume optimization, enhancing candidate preparedness [4] Market Positioning - TalentAlly differentiates itself in the competitive job board market by offering advanced services that streamline recruitment processes and improve hiring outcomes for employers [4][6] - The collaboration is expected to create new revenue streams through enhanced employer services, positioning TalentAlly as a leader in the recruitment platform space [4][6] Company Overview - Professional Diversity Network, Inc. operates through subsidiaries including TalentAlly LLC, which focuses on providing diverse professionals with access to networking, training, and employment opportunities [8][9] - AI Geometric Ltd. specializes in transforming talent acquisition with an AI-driven recruitment ecosystem that automates job applications and improves hiring outcomes for businesses [11]

Revenue Performance - For the three months ended September 30, 2024, total revenues decreased approximately $314,000, or 15.6%, to approximately $1,694,000 compared to approximately $2,008,000 during the same period in the prior year[8]. - For the nine months ended September 30, 2024, total revenues were $5,111,000, a decrease of $694,000, or 12.0%, compared to $5,805,000 in the prior year[17]. - RemoteMore experienced a revenue decline of approximately 31.6% for the nine months ended September 30, 2024, totaling $1,304,000 compared to $1,907,000 in the prior year[3][17]. - The NAPW Network reported a revenue decrease of 15.7% for the nine months ended September 30, 2024, totaling $337,000 compared to $400,000 in the prior year[4][17]. Expenses and Losses - The consolidated net loss from continuing operations for the three months ended September 30, 2024 decreased by approximately $898,000, or 68%, to approximately $422,000 compared to a net loss of approximately $1,320,000 during the same period in the prior year[5][14]. - Cost of revenues for the three months ended September 30, 2024 was approximately $697,000, a decrease of approximately $226,000, or 24.5%, from approximately $923,000 during the same period of the prior year[12][19]. - General and administrative expenses decreased by approximately $622,000, or 46.0%, to approximately $731,000 for the three months ended September 30, 2024, compared to approximately $1,353,000 in the prior year[13]. - Stock-based compensation for the three months ended September 30, 2024, was $28 thousand, down from $199 thousand in the same period of 2023, a reduction of 86%[24]. - Depreciation and amortization for the three months ended September 30, 2024, was $56 thousand, down from $149 thousand in the same period of 2023, a decline of 62%[24]. Cash Flow and Equity - The company reduced net cash used in operating activities from continuing operations for the nine months ended September 30, 2024, to approximately $1.32 million, a reduction of approximately $1.09 million compared to the same period in the prior year[7]. - The total stockholders' equity decreased to $2,105,000 as of September 30, 2024, down from $3,048,000 as of December 31, 2023[16]. Adjusted Metrics - Adjusted EBITDA for the nine months ended September 30, 2024, was $(1,443) thousand, compared to $(3,104) thousand for the same period in 2023, indicating a 53% improvement[24]. - Loss attributable to noncontrolling interest for the nine months ended September 30, 2024, was $65 thousand, a decrease from $92 thousand in the same period of 2023, reflecting a 29% improvement[24]. - Income tax benefit for the nine months ended September 30, 2024, was $6 thousand, compared to a tax expense of $(17) thousand in the same period of 2023, indicating a positive shift[24]. Company Strategy and Outlook - The company operates subsidiaries including the National Association of Professional Women (NAPW) and the International Association of Women (IAW), focusing on diverse professional networking and development[25]. - The company aims to be a leader in business diversity recruiting and professional development for underrepresented groups globally[25]. - Forward-looking statements indicate potential risks and uncertainties that may affect future performance, as detailed in the company's Annual Report on Form 10-K[26]. - Investor inquiries can be directed to the company via email or phone for further information[26].

Revenue Performance - Total revenues for the three months ended September 30, 2024, decreased approximately $314,000, or 15.6%, to approximately $1,694,000 from approximately $2,008,000 during the same period in the prior year[141]. - Recruitment services revenue increased slightly by 0.5% to $3,440,000 for the nine months ended September 30, 2024, compared to $3,422,000 in the prior year[143]. - RemoteMore revenue decreased by approximately $603,000, or 31.6%, to $1,304,000 for the nine months ended September 30, 2024, from $1,907,000 in the prior year, primarily due to reduced demand for contracted software development[151]. - Membership fees and related services revenue for the three months ended September 30, 2024, decreased by $34,000, or 25.2%, to $101,000 from $135,000 in the prior year[142]. - PDN Network generated approximately $1,203,000 in revenues for the three months ended September 30, 2024, a decrease of approximately $65,000, or 5.1%, from $1,268,000 in the prior year[146]. - NAPW Network revenues decreased by approximately $34,000, or 25.2%, to $101,000 for the three months ended September 30, 2024, compared to $135,000 in the prior year[147]. - Total revenues for the nine months ended September 30, 2024, decreased approximately $694,000, or 12%, to approximately $5,111,000 from approximately $5,805,000 during the same period in the prior year[143]. Cost and Expense Management - The cost of revenue for PDN Network increased to 41.2% for the nine months ended September 30, 2024, compared to 31.0% in the prior year[140]. - Cost of revenues for the three months ended September 30, 2024, was approximately $697,000, a decrease of $226,000 or 24.5% from $923,000 in the same period last year[154]. - Sales and marketing expenses for the three months ended September 30, 2024, were approximately $634,000, a decrease of $278,000 or 30.5% from $912,000 in the same period last year[157]. - General and administrative expenses for the three months ended September 30, 2024, decreased by approximately $622,000 or 46.0% to $731,000 compared to $1,353,000 in the same period last year[159]. - Total costs and expenses for the three months ended September 30, 2024, were $2,118,000, a decrease of $1,219,000 or 36.5% from $3,337,000 in the same period last year[165]. - Cost of revenues for the nine months ended September 30, 2024, was approximately $1,976,000, a decrease of $787,000 or 28.5% from $2,763,000 in the same period last year[155]. - Sales and marketing expenses for the nine months ended September 30, 2024, were approximately $2,236,000, a decrease of $614,000 or 21.5% from $2,850,000 in the same period last year[158]. - General and administrative expenses for the nine months ended September 30, 2024, decreased by approximately $1,105,000 or 30.3% to $2,545,000 compared to $3,650,000 in the same period last year[160]. - Total costs and expenses for the nine months ended September 30, 2024, were $6,920,000, a decrease of $2,772,000 or 28.6% from $9,692,000 in the same period last year[165]. Net Loss and Cash Flow - For the three months ended September 30, 2024, the consolidated net loss from continuing operations was approximately $422,000, a decrease of $898,000 compared to a net loss of approximately $1,320,000 for the same period in 2023, representing a 68.0% improvement[177]. - For the nine months ended September 30, 2024, the consolidated net loss from continuing operations was approximately $1,815,000, a decrease of $2,046,000 compared to a net loss of approximately $3,861,000 for the same period in 2023, representing a 53.0% improvement[177]. - Cash and cash equivalents as of September 30, 2024, were $134,000, a decrease from $628,000 as of December 31, 2023[180]. - Net cash used in operating activities from continuing operations for the nine months ended September 30, 2024, was approximately $1,324,000, an improvement from $2,415,000 for the same period in 2023[192][193]. - Net cash provided by financing activities during the nine months ended September 30, 2024, was approximately $1,032,000, compared to $2,700,000 for the same period in 2023[196][198]. Accounting and Financial Reporting - The company adopted ASU 2016-13 in Q1 fiscal 2023, requiring expected credit losses to be measured over the lifetime of financial instruments[210]. - Revenue from recruitment services is recognized when services are performed, with revenue derived from various agreements including job postings and corporate memberships[218]. - Goodwill is tested for impairment annually on December 31, and if circumstances change, interim tests are conducted[214]. - Capitalized software costs are amortized over a maximum of three years, reflecting the estimated useful lives of the software assets[216]. - The company leases office space under a non-cancelable operating lease expiring in September 2027, with periodic rent increases[222]. - Recent accounting pronouncements include ASU 2023-07 and ASU 2023-09, effective for fiscal years beginning after December 15, 2023, and December 15, 2024, respectively[227][228]. - Revenue from NAPW Network membership subscriptions is recognized ratably over a 12-month period, despite annual fees being paid upfront[220]. - The company pools receivables by days outstanding to determine expected credit loss percentages based on historical loss data[211]. - Operating lease liabilities represent the present value of lease payments not yet paid, recognized at the lease commencement date[225]. Business Segments and Strategy - The company operates in three business segments: PDN Network, NAPW Network, and RemoteMore, focusing on diverse professional networking and recruitment services[131]. - The company’s technology platform is integral to its operations, enhancing value for members and customers by addressing workforce diversity needs[132]. - The company continues to focus on profitability by targeting new clients and reducing operating expenses, while facing negative cash flows from operations[185]. - The company incurred a loss from discontinued operations of approximately $28,428 for the nine months ended September 30, 2023, with no activity in 2024[178]. - Adjusted EBITDA for the nine months ended September 30, 2024, was approximately $(1,443,000), an improvement from $(3,104,000) for the same period in 2023[202]. - The company had an accumulated deficit of $101,652,742 as of September 30, 2024[180]. - The company issued 40,217 shares of common stock at approximately $2.36 per share in the first quarter of 2024, resulting in gross proceeds of $95,104[181].

Revenue Performance - Total consolidated revenues for Q2 2024 decreased by $151,000, or 8.2%, to approximately $1,690,000 compared to $1,841,000 in Q2 2023[3] - Recruitment services revenue increased by 3.2% in the first half of 2024, totaling $2,249,000, while contracted software development revenue decreased by 29.8% to $914,000[10] - The PDN Network generated approximately $1,153,000 in revenues, an increase of 4.6% compared to $1,102,000 in Q2 2023[4] - NAPW Network revenues decreased by 20.6% to approximately $108,000, down from $136,000 in the same period last year[4] - RemoteMore revenue decreased by 28.8% to approximately $429,000 compared to $603,000 in Q2 2023[4] Cost Management - Total pre-tax costs and expenses decreased by $1,001,000, or 30.6%, to $2,272,000 in Q2 2024 compared to $3,273,000 in Q2 2023[10] - The company successfully reduced operational costs by 24.4% through stricter controls in the first half of 2024 compared to the same period last year[2] - Depreciation and amortization expenses decreased to $107,000 for the six months ended June 30, 2024, down from $280,000, a reduction of 62%[16] Financial Losses and Improvements - Net loss from continuing operations for Q2 2024 was approximately $586,000, a reduction of 59.1% from a net loss of $1,432,000 in Q2 2023[7] - Loss from Continuing Operations for the three months ended June 30, 2024, was $(586,000), an improvement from $(1,432,000) in the same period last year, representing a 59% reduction[16] - Adjusted EBITDA for the six months ended June 30, 2024, was $(1,120,000), compared to $(2,138,000) in the prior year, indicating a 48% improvement[16] - Loss attributable to noncontrolling interest decreased to $48,000 for the six months ended June 30, 2024, compared to $77,000 in the same period last year, a 38% decrease[16] Tax and Compensation - Income tax expense for the six months ended June 30, 2024, was $6,000, compared to a benefit of $(10,000) in the prior year[16] - Stock-based compensation increased to $110,000 for the six months ended June 30, 2024, up from $63,000 in the same period last year, reflecting a 75% increase[16] Company Operations and Goals - The company operates subsidiaries including the National Association of Professional Women (NAPW) and the International Association of Women (IAW), focusing on diverse professional networking[17] - The company aims to be a leader in business diversity recruiting and professional development for underrepresented groups globally[17] Future Outlook - Forward-looking statements indicate potential risks and uncertainties that may affect future performance, as detailed in the company's Annual Report on Form 10-K[18] - Investor inquiries can be directed to the company via email or phone for further information[18] Cash and Liabilities - Cash balances as of June 30, 2024, were approximately $619,000, a slight decrease from $628,000 on December 31, 2023[3] - Total liabilities increased to $3,790,000 as of June 30, 2024, compared to $3,758,000 on December 31, 2023[9]

Revenue Performance - Total revenues for the three months ended June 30, 2024, decreased approximately $151,000, or 8.2%, to approximately $1,690,000 from approximately $1,841,000 during the same period in the prior year [120]. - Total revenues for the six months ended June 30, 2024, decreased approximately $379,000, or 10.0%, to approximately $3,417,000 from approximately $3,796,000 during the same period in the prior year [121]. - Recruitment services revenue increased to 65.8% of total revenue for the six months ended June 30, 2024, compared to 57.4% in the same period of the prior year [113]. - PDN Network generated approximately $1,153,000 in revenues during the three months ended June 30, 2024, an increase of approximately $51,000 or 4.6% compared to the same period in the prior year [124]. - RemoteMore revenue decreased approximately $174,000 or 28.8% to $429,000 during the three months ended June 30, 2024, compared to $603,000 in the same period of the prior year [124]. - NAPW Network revenues decreased approximately $28,000 or 20.6% to $108,000 during the three months ended June 30, 2024, compared to $136,000 in the same period of the prior year [124]. - Contracted software development revenue decreased approximately $388,000 or 29.8% to $914,000 for the six months ended June 30, 2024, compared to $1,302,000 in the same period of the prior year [126]. Cost and Expense Management - Cost of revenues for the three months ended June 30, 2024, was approximately $626,000, a decrease of $140,000 or 18.3% from $766,000 in the same period last year [129]. - Cost of revenues for the six months ended June 30, 2024, was approximately $1,279,000, a decrease of $561,000 or 30.5% from $1,840,000 in the same period last year [130]. - Sales and marketing expenses for the three months ended June 30, 2024, were approximately $772,000, a decrease of $344,000 or 30.8% from $1,116,000 in the same period last year [132]. - General and administrative expenses for the three months ended June 30, 2024, decreased by approximately $425,000 or 34.2% to $819,000 compared to $1,244,000 in the same period last year [134]. - Total costs and expenses for the three months ended June 30, 2024, were $2,272,000, a decrease of $1,001,000 or 30.6% from $3,273,000 in the same period last year [140]. - Sales and marketing expenses for the six months ended June 30, 2024, were approximately $1,602,000, a decrease of $335,000 or 17.3% from $1,937,000 in the same period last year [133]. - General and administrative expenses for the six months ended June 30, 2024, decreased by approximately $483,000 or 21.0% to $1,814,000 compared to $2,297,000 in the same period last year [135]. - Depreciation and amortization expense for the three months ended June 30, 2024, was approximately $55,000, a decrease of $92,000 compared to $147,000 in the same period last year [136]. Net Loss and Cash Flow - For the three months ended June 30, 2024, the consolidated net loss from continuing operations was approximately $586,000, a decrease of 59.1% compared to a net loss of approximately $1,432,000 for the same period in 2023 [150]. - For the six months ended June 30, 2024, the consolidated net loss from continuing operations was approximately $1,393,000, a decrease of 45.2% compared to a net loss of approximately $2,541,000 for the same period in 2023 [150]. - Cash and cash equivalents as of June 30, 2024, were $619,311, a slight decrease from $627,641 at December 31, 2023 [153]. - Net cash used in operating activities from continuing operations for the six months ended June 30, 2024, was approximately $768,000, compared to $878,000 for the same period in 2023 [163]. - Net cash used in investing activities during the six months ended June 30, 2024, was approximately $153,000, significantly lower than $822,000 for the same period in 2023 [164]. - Net cash provided by financing activities during the six months ended June 30, 2024, was approximately $912,000, compared to $2,700,000 for the same period in 2023 [165]. - The company continues to generate negative cash flows from operations and expects to incur net losses for the foreseeable future, raising substantial doubt about its ability to continue as a going concern [156]. - The accumulated deficit was $101,247,697 as of June 30, 2024 [153]. Adjusted EBITDA and Accounting Policies - Adjusted EBITDA for the six months ended June 30, 2024, was approximately $(1,120,000), an improvement from $(2,138,000) for the same period in 2023 [171]. - The company adopted ASU 2016-13 in Q1 fiscal 2023, requiring expected credit losses to be measured over the lifetime of financial instruments [175]. - Recruitment revenue includes direct sales from recruitment services and events, recognized when services are performed and collectability is probable [181]. - Consumer marketing revenue is recognized based on fixed fees or impressions, with membership subscription revenue recognized ratably over a 12-month period [182]. - The company recognizes operating lease expense on a straight-line basis over the lease term, with lease liabilities representing the present value of future lease payments [185]. - The company has elected not to apply recognition requirements to short-term leases of 12 months or less, expensing payments on a straight-line basis [186]. - The company is currently evaluating the impact of new accounting standards on its disclosures [188]. - Recent accounting updates include ASU 2023-07 and ASU 2023-09, effective for fiscal years beginning after December 15, 2023, and December 15, 2024, respectively [187]. - Goodwill is tested for impairment annually on December 31, and if the carrying value exceeds fair value, impairment losses are measured accordingly [177]. - Capitalized software costs are amortized over a useful life not exceeding three years, with training and maintenance costs expensed as incurred [179].