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].
Professional Diversity Network(IPDN) - 2024 Q3 - Quarterly Report