Financial Performance - Total revenue for the three months ended September 30, 2023, was $183,722, a decrease from $5,784,424 in the same period of 2022[13] - Gross profit for the three months ended September 30, 2023, was a loss of $68,169 compared to a profit of $1,885,267 in the prior year[13] - Net loss for the three months ended September 30, 2023, was $1,030,682, compared to a net loss of $5,626,365 in the same period of 2022[13] - For the nine months ended September 30, 2023, the net loss was $5,326,724, a 51.5% improvement compared to a net loss of $10,997,463 for the same period in 2022[20] - Revenue for the three months ended September 30, 2023, was $1,085,980, a decrease of 8.3% compared to $1,183,218 in the same period of 2022[139] - Gross profit for the three months ended September 30, 2023, was $277,578, down 9.3% from $306,183 in the prior year[139] - For the nine months ended September 30, 2023, revenue increased to $3,592,700, up 35.4% from $2,651,919 in the same period of 2022[141] Operating Expenses - Total operating expenses for the three months ended September 30, 2023, were $2,026,366, up from $7,605,564 in the same period of 2022[13] - Advertising and marketing costs for Q3 2023 were $85,193, a decrease of 75% compared to $342,622 in Q3 2022[78] - For the nine months ended September 30, 2023, advertising and marketing costs totaled $321,229, down from $619,418 in the same period of 2022, representing a 48% decrease[78] Assets and Liabilities - Total current assets as of September 30, 2023, were $2,666,629, down from $4,392,168 as of December 31, 2022[9] - Total liabilities as of September 30, 2023, were $9,554,841, compared to $9,054,967 as of December 31, 2022[9] - Cash balance as of September 30, 2023, was $296,263, significantly lower than $946,804 as of December 31, 2022[9] - Accounts receivable decreased to $71,615 as of September 30, 2023, from $1,965,947 as of December 31, 2022[9] - The outstanding balance on the promissory note with Parrut was $261,112 as of September 30, 2023, down from $444,245 as of December 31, 2022[145] - The outstanding balance of the Novo Promissory Notes was $1,217,529 as of September 30, 2023, compared to $1,292,360 as of December 31, 2022[148] - The total principal balance on promissory notes payable decreased to $5,655,197 as of September 30, 2023, down from $6,153,272 as of December 31, 2022, indicating a decline of about 8.1%[162] Stock and Equity - The company issued common stock worth $785,509, net of equity issuance costs of $250,490 during the quarter[17] - The weighted average common shares outstanding for the three months ended September 30, 2023, were 1,367,343, compared to 990,076 in the same period of 2022[13] - The company reported a total of 1,433,903 shares outstanding as of September 30, 2023[17] - The company completed a one-for-fifteen reverse stock split on August 4, 2023, affecting the number of outstanding shares of common stock[182] Cash Flow - Net cash used in operating activities decreased to $1,872,449 from $4,657,214, reflecting a 59.9% reduction year-over-year[22] - The company reported a cash balance of $296,263 at the end of the period, compared to $8,542 at the end of the previous period, indicating a significant increase in liquidity[22] - Cash paid for interest during the period was $256,552, compared to $208,351 in the previous period, reflecting an increase in financing costs[22] Revenue Recognition - The company’s revenue recognition follows ASC Topic 606, ensuring that revenue is recognized when control is transferred to customers[39] - Revenue from Recruiters On Demand for the three months ended September 30, 2023, was $46,040, compared to $4,540,454 in the same period of 2022, reflecting a decline of approximately 98.98%[61] - For the nine months ended September 30, 2023, total revenue was $3,010,870, down from $18,296,826 in the same period of 2022, indicating a decrease of about 83.54%[61] Strategic Initiatives - The company acquired Atlantic Energy Solutions, Inc. for $80,000, aiming to spin out the shell to shareholders and continue certain operations[25] - A stock purchase agreement with GoLogiq Inc. was established, allowing for potential additional shares to be issued based on revenue milestones of $2 million, $4 million, and $6 million over the next twelve months[29] - The company is in the process of selling assets to Job Mobz Inc. for an aggregate purchase price of $1,800,000, pending shareholder approval[30] - The company has a strategic partnership with Job Mobz to transition certain Recruiters on Demand clients and staff, which is expected to generate an ongoing revenue stream[43] Impairment and Amortization - The company has a carrying value of goodwill of $7,101,084 as of September 30, 2023, which reflects an impairment loss of $582,114 recognized in 2022[124][129] - Total intangible assets decreased to $1,623,300 as of September 30, 2023, down from $2,578,692 in the previous year, with accumulated amortization of $8,510,814[128] - The company recorded amortization expenses of $321,963 for the three months ended September 30, 2023, compared to $952,170 for the same period in 2022[128] Going Concern - The company has determined that substantial doubt exists about its ability to continue as a going concern for at least the next twelve months[116]
Recruiter.com(RCRT) - 2023 Q3 - Quarterly Report