Revenue Performance - Total revenues for Q1 2025 decreased by approximately $222,000, or 12.9%, to approximately $1,505,000 from approximately $1,727,000 in Q1 2024[144] - Recruitment services revenue decreased by approximately $188,000, or 17.0%, primarily due to Executive Orders targeting diversity, equity, and inclusion programs[144] - Membership fees and related services revenue decreased by approximately $31,000, or 24.4%, from $127,000 in Q1 2024 to $96,000 in Q1 2025[147] - TalentAlly Network generated approximately $921,000 in revenues, a decrease of approximately $194,000, or 17.4%, compared to Q1 2024[146] - NAPW Network revenues decreased by approximately $31,000, or 24.4%, from approximately $127,000 in Q1 2024 to $96,000 in Q1 2025[147] - RemoteMore revenue increased by approximately $3,000, or 0.6%, from approximately $485,000 in Q1 2024 to 488,000 in Q1 2025[147] Cost and Expense Management - Cost of revenues increased by approximately $66,000, or 10.1%, to approximately $719,000 in Q1 2025 from $653,000 in Q1 2024[150] - Total costs and expenses decreased by approximately $320,000, or 12.6%, to approximately $2,210,000 in Q1 2025 from $2,530,000 in Q1 2024[149] - Sales and marketing expenses decreased by approximately $259,000, or 31.2%, from $830,000 in Q1 2024 to $571,000 in Q1 2025[151] - General and administrative expenses decreased by approximately $116,000, or 11.7%, to approximately $879,000 in Q1 2025 from $995,000 in Q1 2024[152] - Corporate overhead costs increased by approximately $33,000, or 6.6%, primarily due to higher legal and investor relations expenses[159] Financial Performance - For the three months ended March 31, 2025, the consolidated net loss from continuing operations was approximately $741,000, a decrease of 8.2% compared to a net loss of approximately $807,000 for the same period in 2024[162] - Cash and cash equivalents decreased to approximately $496,000 as of March 31, 2025, from approximately $1,731,000 at December 31, 2024, indicating a significant decline in liquidity[164] - Net cash used in operating activities during the three months ended March 31, 2025, was approximately $284,000, an improvement from $543,000 in the same period of 2024[175] - The company incurred approximately $1,300,000 in net cash used in investing activities during the three months ended March 31, 2025, primarily related to an investment in AI Geometric Ltd[177] - Adjusted EBITDA for the three months ended March 31, 2025, was approximately $(608,000), compared to $(653,000) for the same period in 2024, reflecting a slight improvement[181] - The company raised approximately $349,000 in net cash from financing activities during the three months ended March 31, 2025, compared to $95,000 in the same period of 2024[178] - The accumulated deficit as of March 31, 2025, was approximately $103,000,000, indicating significant financial challenges[164] Accounting and Reporting - Goodwill is tested for impairment annually and when circumstances change, considering market capitalization and carrying value of assets and liabilities[192] - Capitalized technology costs are amortized over a straight-line basis, generally not exceeding three years[195] - Revenue from recruitment services is recognized when services are performed, with revenue derived from various agreements including job postings and corporate memberships[197] - Consumer marketing and advertising revenue is recognized based on fixed fees or impressions recorded on websites[198] - Revenue from NAPW Network membership subscriptions is recognized ratably over a 12-month period, with fees collected at the start of the membership[199] - Approximately 2% and 6% of recruitment services revenue for the three months ended March 31, 2025 and 2024, respectively, came from an alliance with another company[202] - Operating lease liabilities represent the present value of lease payments not yet paid, with lease expenses recognized on a straight-line basis[206] - Recent accounting pronouncements include ASU 2023-09, effective for fiscal years beginning after December 15, 2024, enhancing income tax disclosures[208] - ASU 2024-03 requires disaggregated disclosures of certain expense categories, effective for annual reporting periods beginning after December 15, 2026[209] - The company is currently evaluating the impact of recent accounting standards on its disclosures[208] Going Concern - The company continues to face negative cash flows from operations and expects to incur net losses for the foreseeable future, raising doubts about its ability to continue as a going concern[168]
Professional Diversity Network(IPDN) - 2025 Q1 - Quarterly Report