Revenue Growth - Revenue for the three months ended September 30, 2021, was $6,257,882, an increase of $4,265,715 or 214% compared to $1,992,167 for the same period in 2020[299] - Revenue for the nine-month period ended September 30, 2021, was $13,803,321, a 124% increase from $6,158,704 in 2020, with significant growth in the Recruiters on Demand business[310] - The Recruiters on Demand business saw a significant increase of $3,203,116 or 1365% due to substantial growth in new customers[299] Profitability and Expenses - Gross profit for the three-month period ended September 30, 2021, was $2,304,222, with a gross profit margin of 36.8%, up from 30.9% in the corresponding 2020 period[301] - Operating expenses increased to $8,859,604 for the three-month period ended September 30, 2021, representing an increase of $6,350,100 or 253% compared to $2,509,504 in 2020[303] - General and administrative expenses for the nine-month period ended September 30, 2021, were $10,491,264, up from $5,998,617 in 2020, including $3,543,887 of non-cash stock-based compensation[316] - The net loss for the nine-month period ended September 30, 2021, was $10,401,863, compared to a net loss of $8,988,402 in the corresponding period in 2020[318] Cash Flow and Financing - Net cash used in operating activities for the nine months ended September 30, 2021, was $6,985,702, up from $1,926,576 in 2020, reflecting increased operating expenses to support business growth[325] - The company generated $14,306,238 from financing activities in the nine months ended September 30, 2021, compared to $2,234,773 in the same period of 2020[329] - The company closed a public offering of 2,400,000 units at $5.00 per unit, generating gross proceeds of $12,000,000 before expenses[295] - The company completed an underwritten public offering in July 2021, generating gross proceeds of $13,800,000 before deducting expenses[330] Investments and Acquisitions - The company acquired the technology division of Uncubed, enhancing its capabilities in sourcing and screening candidates[296] - The company issued a promissory note for $3,000,000 related to the Novo Group acquisition, which matures on February 1, 2024[345] - Net cash used in investing activities for the nine months ended September 30, 2021, was $2,073,673, primarily due to $2,304,528 cash used for acquisitions[328] Product Development and Innovation - Launched Amplify, an AI-powered solution for proactive candidate outreach, transforming job posting into an active talent identification process[302] - Expanded AI Software index to include over 150 million profiles of potential candidates, enhancing employer engagement capabilities[302] - Product development expenses for the nine months ended September 30, 2021, rose to $610,805 from $220,157 in 2020, driven by new personnel from acquisitions and new project launches[314] Leadership and Organizational Changes - The company appointed Xuan Smith as Chief Technology Officer and Angela Copeland as Vice President of Marketing to strengthen its leadership team[302] Revenue Recognition and Accounting Policies - The Company offers software subscriptions that assist employers in recruiting talent, with additional fees applicable for candidate placements under a 90-day guarantee[358] - Revenue from the Recruiters on Demand service is generated by billing employer clients for the placed recruiters' ongoing work at an agreed-upon, time-based rate[358] - Full-time placement revenue is earned through one-time fees for each successful hire made by employers from the Company's candidate referrals, typically a percentage of the candidate's first year's base salary[358] - Consulting and staffing revenues are recognized when services are rendered, with payments typically due within 90 days of service completion[359] - Deferred revenue arises from transactions where the Company has been paid for services not yet recognized, which will be recognized once criteria are met[360] - Goodwill is tested for impairment annually or when circumstances indicate a potential impairment, with no amortization applied[362][363] - Long-lived assets are reviewed for impairment when events suggest that their book value may not be recoverable[364] - The Company accounts for stock-based compensation based on fair values, recognizing expenses over the vesting period[366] - There have been no recent significant changes in accounting pronouncements that impact the Company, except for ASU 2019-12, which had no material impact on financial statements[369]
Recruiter.com(RCRT) - 2021 Q3 - Quarterly Report