Revenue Growth - Revenue for the quarter ended August 31, 2021 increased by approximately $8,352,000 or 57.5% compared to the same quarter in 2020, driven by new business development, organic growth, and the acquisition of Geneva[101]. - The average number of consultants on billing increased from 395 in Q3 2020 to 659 in Q3 2021, indicating significant growth in service capacity[101]. Cost and Expenses - Cost of sales for the quarter ended August 31, 2021 rose by approximately $6,873,000 or 56.4%, but as a percentage of revenue, it decreased from 83.9% in Q3 2020 to 83.3% in Q3 2021, leading to improved gross margins[103]. - Selling, general and administrative expenses increased by approximately $1,894,000 or 83.4% from $2,271,000 in Q3 2020 to $4,165,000 in Q3 2021, primarily due to the Geneva acquisition and legal settlements[104]. Net Income and Cash Flow - Consolidated net income for the quarter ended August 31, 2021 was approximately $6,459,000, a significant increase from a net income of $3,000 in the same quarter of 2020[108]. - Net cash flow from operations was approximately $323,000 for the quarter ended August 31, 2021, down from $1,517,000 in the prior year period[112]. Liquidity and Financial Position - The Company had working capital of approximately $8,216,000 as of August 31, 2021, compared to $8,898,000 at May 31, 2021, indicating a decrease in liquidity[111]. - The Company fully utilized the $6,659,000 PPP Loan to fund payroll and other expenses, which was forgiven in July 2021, aiding in maintaining employee levels during the pandemic[102]. - The Company expects its cash and cash equivalents, along with its Credit Facility, to be sufficient to meet liquidity requirements for the next 12 months[110]. - The Company does not have any off-balance sheet arrangements that could materially affect its financial condition[117]. Accounting Policies - The Company has not made any changes to its significant accounting policies as of August 31, 2021[119]. - The Company believes that its accounting policies require the application of management's most difficult, subjective or complex judgments[119]. - As a smaller reporting company, the Company is not required to provide quantitative and qualitative disclosures about market risk[120].
TSR(TSRI) - 2022 Q1 - Quarterly Report