Revenue Performance - Revenue for the three-month period ended March 31, 2022, was $6.9 million, an increase of $3.7 million or 116% compared to $3.2 million for the same period in 2021[271]. - The Recruiters on Demand business saw a revenue increase of $3.2 million or 339%, driven by significant growth in new customers and contributions from acquisitions[271]. - The company experienced a decrease in its Consulting and Staffing business revenue by $740 thousand or 36% as it shifted focus to higher margin areas[271]. Profitability and Expenses - Gross profit for the three-month period ended March 31, 2022, was $2.7 million, with a gross profit margin of 39.2%, up from $910 thousand and 28.7% in the corresponding 2021 period[273]. - Total operating expenses for the three-month period ended March 31, 2022, were $6.8 million, an increase of $3.9 million or 139% compared to $2.8 million in the same period in 2021[274]. - Product development expenses increased to $593 thousand for the three-month period ended March 31, 2022, from $71 thousand in the corresponding period in 2021, due to new personnel and project launches[277]. - General and administrative expenses for the three-month period ended March 31, 2022, were $5.1 million, including $1.7 million of non-cash stock-based compensation, compared to $2.5 million in 2021[279]. Cash Flow and Financing - For the three months ended March 31, 2022, the company reported a net loss of $4.2 million, an improvement from a net loss of $6.3 million in the same period of 2021[283]. - Adjusted EBITDA for the three months ended March 31, 2022, was a loss of $1.35 million, compared to a loss of $1.09 million in the same period of 2021[287]. - Net cash used in operating activities for the three months ended March 31, 2022, was $1.2 million, slightly improved from $1.3 million in the corresponding period of 2021[288]. - The company had no cash used in investing activities for the three months ended March 31, 2022, compared to $250,000 in the same period of 2021[291]. - Net cash used in financing activities was $480,000 for the three months ended March 31, 2022, a decrease from $2.1 million in the same period of 2021[292]. - As of May 12, 2022, the company had approximately $998,000 in cash on hand, insufficient to meet working capital needs for the next 12 months[293]. - The company has incurred net losses and negative operating cash flows since inception, indicating substantial doubt about its ability to continue as a going concern[294]. - The company plans to fund future operations through additional securities offerings and has entered into arrangements with factoring companies to supplement liquidity[296]. - The company has paid off outstanding balances of term loans as of February 2022, eliminating obligations related to such notes[299]. Revenue Recognition - The company recognizes revenue in accordance with ASC 606, focusing on services that assist with career development and advancement[312]. - Software subscription revenues are recognized monthly over the subscription term, with deferred revenue recorded for payments received prior to service provision[318]. - Recruiters on Demand services generate revenue through monthly subscriptions or time-based billings, recognized on a gross basis upon completion of each service[319]. - Full-time placement revenues are recognized when the guarantee period specified in each customer's contract expires, with payments typically due within 90 days of service completion[320]. - Marketplace Solutions revenues are recognized when advertising is placed or lead generation activities are completed, with payments typically due within 30 days[322]. - Consulting and Staffing Services revenues are recognized when services are rendered, with payments typically due within 90 days of completion[324]. - Deferred revenue arises from payments received for services not yet recognized, and is recognized once all criteria are met[325]. Business Development and Partnerships - The company launched a new cryptocurrency career community platform to address the growing demand in the crypto hiring market[281]. - The company was selected by Deel to join their exclusive new Talent Marketplace, enhancing its service offerings[281]. - The company has established sales partnerships with direct employers and Vendor Management System companies to create sales channels for staffing and sourcing services[316]. - The company offers enhanced support packages and on-demand recruiting support services for an additional fee, with refunds provided if candidates cease employment within the initial 90 days[1]. - The company sources qualified candidates through its platform and independent recruiters, supporting efforts with an internal talent delivery team[1]. Goodwill and Impairment - Goodwill is tested for impairment annually or when indicators suggest fair value may be below carrying value, with assessments based on qualitative factors and discounted cash flow methodology[327][329].
Recruiter.com(RCRT) - 2022 Q1 - Quarterly Report