Revenue Performance - For the three months ended March 31, 2025, the company reported revenue of $1.4 million, a significant increase of $1.2 million or 528% compared to $0.2 million in the same period of 2024, primarily driven by an increase in telecommunication services[217]. - The company entered into a twelve-month contract with Mexedia SpA, expected to generate up to $10 million in revenue per month starting May 1, 2025[215]. - The company recognizes revenue in accordance with ASC 606, with revenues reflecting services rendered to customers less sales adjustments and allowances[240][241]. Cost and Expenses - Cost of revenue for the same period was $1.3 million, up from $3 thousand in 2024, reflecting the growth in revenue-generating operations[218]. - Total operating expenses rose to $6.2 million for the three months ended March 31, 2025, an increase of $4.9 million or 384% compared to $1.3 million in 2024, due to higher general and administrative, sales and marketing, and cost of revenue expenses[219]. - Sales and marketing expenses increased to $0.7 million in Q1 2025 from $0.1 million in Q1 2024, reflecting the company's focus on revenue-generating activities[220]. - General and administrative expenses for Q1 2025 were $3.9 million, including $2.2 million in non-cash stock-based compensation, compared to $0.9 million in 2024, which included $300 thousand in non-cash stock-based compensation[223]. - The company incurred stock-based compensation expenses of $2.2 million for the three months ended March 31, 2025, compared to $300,000 for the same period in 2024, highlighting increased costs associated with employee compensation[231][232]. Net Loss and Financial Health - The company incurred a net loss from continuing operations of $4.5 million for the three months ended March 31, 2025, compared to a net loss of $0.8 million in the same period of 2024[225]. - For the three months ended March 31, 2025, the net loss was $4.6 million, compared to a net loss of $0.8 million for the same period in 2024, representing a significant increase in losses[231][232]. - Adjusted EBITDA for the three months ended March 31, 2025, was a loss of $2.0 million, compared to a loss of $420,945 for the same period in 2024, indicating a worsening operational performance[230]. - The company has not established a sufficient ongoing source of revenue to cover operating costs, raising substantial doubt about its ability to continue as a going concern[235][236]. Cash Flow and Liquidity - Net cash used in operating activities for the three months ended March 31, 2025, was $1.8 million, up from $0.7 million in the same period in 2024, reflecting increased cash outflows[231]. - As of March 31, 2025, the company had approximately $0.3 million in cash on hand, indicating insufficient capital resources to meet working capital needs for the next 12 months[234]. - Net cash used in investing activities for the three months ended March 31, 2025, was $0.4 million, primarily due to the purchase of intangible assets[233]. - The company expects to fund future operations through additional securities offerings, as equity offerings have been the primary source of liquidity to date[237]. Strategic Initiatives - The acquisition of Savitr Tech's assets, including AI-driven software, aligns with the company's strategy to enhance its telecom software solutions and recurring revenue streams[215]. - The company is undergoing a strategic transformation, including the planned spin-out of recruitment-related businesses to Atlantic Energy Solutions, which is being renamed CognoGroup[204]. - Product development efforts are focused on improvements to Mediabistro and related job board technology, as well as technical projects related to the sale of Recruiter.com[214].
Recruiter.com(RCRT) - 2025 Q1 - Quarterly Report