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Professional Diversity Network(IPDN) - 2024 Q2 - Quarterly Report
IPDNProfessional Diversity Network(IPDN)2024-08-13 18:01

Revenue Performance - Total revenues for the three months ended June 30, 2024, decreased approximately 151,000,or8.2151,000, or 8.2%, to approximately 1,690,000 from approximately 1,841,000duringthesameperiodintheprioryear[120].−TotalrevenuesforthesixmonthsendedJune30,2024,decreasedapproximately1,841,000 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 3,417,000fromapproximately3,417,000 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 1,153,000inrevenuesduringthethreemonthsendedJune30,2024,anincreaseofapproximately1,153,000 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 174,000or28.8174,000 or 28.8% to 429,000 during the three months ended June 30, 2024, compared to 603,000inthesameperiodoftheprioryear[124].−NAPWNetworkrevenuesdecreasedapproximately603,000 in the same period of the prior year [124]. - NAPW Network revenues decreased approximately 28,000 or 20.6% to 108,000duringthethreemonthsendedJune30,2024,comparedto108,000 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 388,000or29.8388,000 or 29.8% to 914,000 for the six months ended June 30, 2024, compared to 1,302,000inthesameperiodoftheprioryear[126].CostandExpenseManagement−CostofrevenuesforthethreemonthsendedJune30,2024,wasapproximately1,302,000 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 140,000or18.3140,000 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,adecreaseof1,279,000, a decrease of 561,000 or 30.5% from 1,840,000inthesameperiodlastyear[130].−SalesandmarketingexpensesforthethreemonthsendedJune30,2024,wereapproximately1,840,000 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 344,000or30.8344,000 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 425,000or34.2425,000 or 34.2% to 819,000 compared to 1,244,000inthesameperiodlastyear[134].−TotalcostsandexpensesforthethreemonthsendedJune30,2024,were1,244,000 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 1,001,000or30.61,001,000 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,adecreaseof1,602,000, a decrease of 335,000 or 17.3% from 1,937,000inthesameperiodlastyear[133].−GeneralandadministrativeexpensesforthesixmonthsendedJune30,2024,decreasedbyapproximately1,937,000 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 1,814,000comparedto1,814,000 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,adecreaseof55,000, a decrease of 92,000 compared to 147,000inthesameperiodlastyear[136].NetLossandCashFlow−ForthethreemonthsendedJune30,2024,theconsolidatednetlossfromcontinuingoperationswasapproximately147,000 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 1,432,000forthesameperiodin2023[150].−ForthesixmonthsendedJune30,2024,theconsolidatednetlossfromcontinuingoperationswasapproximately1,432,000 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 2,541,000forthesameperiodin2023[150].−CashandcashequivalentsasofJune30,2024,were2,541,000 for the same period in 2023 [150]. - Cash and cash equivalents as of June 30, 2024, were 619,311, a slight decrease from 627,641atDecember31,2023[153].−NetcashusedinoperatingactivitiesfromcontinuingoperationsforthesixmonthsendedJune30,2024,wasapproximately627,641 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 878,000forthesameperiodin2023[163].−NetcashusedininvestingactivitiesduringthesixmonthsendedJune30,2024,wasapproximately878,000 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 822,000forthesameperiodin2023[164].−NetcashprovidedbyfinancingactivitiesduringthesixmonthsendedJune30,2024,wasapproximately822,000 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 2,700,000forthesameperiodin2023[165].−Thecompanycontinuestogeneratenegativecashflowsfromoperationsandexpectstoincurnetlossesfortheforeseeablefuture,raisingsubstantialdoubtaboutitsabilitytocontinueasagoingconcern[156].−Theaccumulateddeficitwas2,700,000 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),animprovementfrom(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].