GEE Group(US:JOB)2025-12-17 21:30Financial Performance - Consolidated net revenues for the year ended September 30, 2025, were $96.5 million, a decrease of 9.5% from $106.9 million in 2024[269] - Gross profit for the year ended September 30, 2025, was $33.4 million, down from $36.1 million in 2024, reflecting a gross margin of 34.6%[269] - The company reported a consolidated net loss of $34.7 million for the year ended September 30, 2025, compared to a net loss of $24.1 million in 2024[269] - Net revenues for the year ended September 30, 2025, decreased to $98,092 thousand from $112,599 thousand in 2024, representing a decline of approximately 12.9%[330] - Gross profit for the same period was $33,602 thousand, down from $36,916 thousand in 2024, indicating a decrease of about 8.4%[330] - The loss from operations increased to $(34,577) thousand in 2025 compared to $(22,527) thousand in 2024, reflecting a worsening of approximately 53.5%[330] - Revenue from the discontinued Industrial Segment for fiscal 2025 was $4,609 thousand, down from $9,547 thousand in 2024, a decline of approximately 51.7%[335] Assets and Liabilities - Total current assets decreased to $31.7 million as of September 30, 2025, from $35.4 million in 2024, primarily due to a decline in accounts receivable[264] - The total liabilities of the company as of September 30, 2025, were $9.99 million, a decrease from $11.69 million in 2024[268] - The company's accumulated deficit increased to $60.5 million as of September 30, 2025, compared to $25.7 million in 2024[268] - The company’s total assets decreased to $60.0 million as of September 30, 2025, from $95.9 million in 2024[264] - As of September 30, 2025, total other current liabilities decreased to $595 from $899 in 2024, reflecting a reduction of approximately 33.8%[353] Cash Flow - Cash flows from operating activities for the year ended September 30, 2025, were $549,000, an increase from $202,000 in 2024[271] - The net change in cash for the year was an increase of $536 million, compared to a decrease of $1,643 million in the prior year[272] - Cash at the end of the year was $21,364 million, up from $20,828 million at the beginning of the year[272] - Net cash provided by investing activities was $54 million, compared to a cash outflow of $58 million in the previous year[272] Impairment Charges - The company recognized a goodwill impairment charge of $22 million for the year ended September 30, 2025, compared to $14.2 million in 2024[269] - The Company recorded provisions for credit losses of $9 thousand in fiscal 2025, down from $74 thousand in fiscal 2024[286] - A non-cash impairment charge of $5.2 million on intangible assets was recorded during fiscal 2024 due to low gross cash flows[296] - A non-cash goodwill impairment charge of $22,000 thousand was recognized during fiscal 2025, following an interim assessment indicating the carrying value exceeded estimated fair value[346] Acquisitions - The total consideration paid for the acquisition of Hornet Staffing, Inc. was $1,500, consisting of a $1,100 cash payment and $400 in promissory notes[324][325] - Liabilities assumed in the acquisition included a $151 deferred tax liability recorded post-acquisition due to a tax election made during fiscal 2025[328] - The total intangible assets acquired from Hornet were valued at $1,394, including customer relationships valued at $564 and goodwill valued at $751[329] Operational Metrics - The Company operates from 19 branch offices across ten states as of September 30, 2025[274] - Falloffs during fiscal 2025 were approximately $571, compared to $401 in fiscal 2024, indicating an increase in estimated losses due to applicants not remaining employed[305] - The company recorded liabilities for falloffs of $72 and $102 as of September 30, 2025 and 2024, respectively[305] - The Company matched 10% of employee contributions to its 401(k) Plan, totaling $526 thousand in fiscal 2025, up from $260 thousand in 2024[391] Stock and Compensation - The Company entered into a Stock Repurchase Program with a maximum aggregate amount of $20 million, which continued through December 31, 2023[358] - The Company granted 1,550 stock options during fiscal 2025, with share-based compensation expense attributable to stock options recognized at $331[372] - As of September 30, 2025, there were 4,412 stock options outstanding, with a weighted average exercise price of $0.78[373] - Share-based compensation expense attributable to restricted stock was $215 in fiscal 2025, with approximately $89 of unrecognized compensation expense related to restricted stock outstanding[367] Tax and Valuation - The Company recorded a total income tax expense of $9,588 thousand for the year ended September 30, 2025, compared to a benefit of $(2,619) thousand in 2024[377] - As of September 30, 2025, the Company had federal net operating loss carryforwards of approximately $28.2 million and state net operating loss carryforwards of approximately $29.5 million[379] - The Company has recorded a valuation allowance of $12,757 thousand as of September 30, 2025, due to uncertainty in the realization of deferred tax assets[380] Internal Controls - Management concluded that disclosure controls and procedures were effective as of September 30, 2025[401] - Internal control over financial reporting was evaluated and deemed effective as of September 30, 2025[402] - There were no changes in internal controls over financial reporting during fiscal 2025 that materially affected their effectiveness[403]