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].
Professional Diversity Network(IPDN) - 2024 Q2 - Quarterly Report