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Professional Diversity Network(IPDN) - 2024 Q3 - Quarterly Report
IPDNProfessional Diversity Network(IPDN)2024-11-14 14:04

Revenue Performance - Total revenues for the three months ended September 30, 2024, decreased approximately 314,000,or15.6314,000, or 15.6%, to approximately 1,694,000 from approximately 2,008,000duringthesameperiodintheprioryear[141].−Recruitmentservicesrevenueincreasedslightlyby0.52,008,000 during the same period in the prior year[141]. - Recruitment services revenue increased slightly by 0.5% to 3,440,000 for the nine months ended September 30, 2024, compared to 3,422,000intheprioryear[143].−RemoteMorerevenuedecreasedbyapproximately3,422,000 in the prior year[143]. - RemoteMore revenue decreased by approximately 603,000, or 31.6%, to 1,304,000fortheninemonthsendedSeptember30,2024,from1,304,000 for the nine months ended September 30, 2024, from 1,907,000 in the prior year, primarily due to reduced demand for contracted software development[151]. - Membership fees and related services revenue for the three months ended September 30, 2024, decreased by 34,000,or25.234,000, or 25.2%, to 101,000 from 135,000intheprioryear[142].−PDNNetworkgeneratedapproximately135,000 in the prior year[142]. - PDN Network generated approximately 1,203,000 in revenues for the three months ended September 30, 2024, a decrease of approximately 65,000,or5.165,000, or 5.1%, from 1,268,000 in the prior year[146]. - NAPW Network revenues decreased by approximately 34,000,or25.234,000, or 25.2%, to 101,000 for the three months ended September 30, 2024, compared to 135,000intheprioryear[147].−TotalrevenuesfortheninemonthsendedSeptember30,2024,decreasedapproximately135,000 in the prior year[147]. - Total revenues for the nine months ended September 30, 2024, decreased approximately 694,000, or 12%, to approximately 5,111,000fromapproximately5,111,000 from approximately 5,805,000 during the same period in the prior year[143]. Cost and Expense Management - The cost of revenue for PDN Network increased to 41.2% for the nine months ended September 30, 2024, compared to 31.0% in the prior year[140]. - Cost of revenues for the three months ended September 30, 2024, was approximately 697,000,adecreaseof697,000, a decrease of 226,000 or 24.5% from 923,000inthesameperiodlastyear[154].−SalesandmarketingexpensesforthethreemonthsendedSeptember30,2024,wereapproximately923,000 in the same period last year[154]. - Sales and marketing expenses for the three months ended September 30, 2024, were approximately 634,000, a decrease of 278,000or30.5278,000 or 30.5% from 912,000 in the same period last year[157]. - General and administrative expenses for the three months ended September 30, 2024, decreased by approximately 622,000or46.0622,000 or 46.0% to 731,000 compared to 1,353,000inthesameperiodlastyear[159].−TotalcostsandexpensesforthethreemonthsendedSeptember30,2024,were1,353,000 in the same period last year[159]. - Total costs and expenses for the three months ended September 30, 2024, were 2,118,000, a decrease of 1,219,000or36.51,219,000 or 36.5% from 3,337,000 in the same period last year[165]. - Cost of revenues for the nine months ended September 30, 2024, was approximately 1,976,000,adecreaseof1,976,000, a decrease of 787,000 or 28.5% from 2,763,000inthesameperiodlastyear[155].−SalesandmarketingexpensesfortheninemonthsendedSeptember30,2024,wereapproximately2,763,000 in the same period last year[155]. - Sales and marketing expenses for the nine months ended September 30, 2024, were approximately 2,236,000, a decrease of 614,000or21.5614,000 or 21.5% from 2,850,000 in the same period last year[158]. - General and administrative expenses for the nine months ended September 30, 2024, decreased by approximately 1,105,000or30.31,105,000 or 30.3% to 2,545,000 compared to 3,650,000inthesameperiodlastyear[160].−TotalcostsandexpensesfortheninemonthsendedSeptember30,2024,were3,650,000 in the same period last year[160]. - Total costs and expenses for the nine months ended September 30, 2024, were 6,920,000, a decrease of 2,772,000or28.62,772,000 or 28.6% from 9,692,000 in the same period last year[165]. Net Loss and Cash Flow - For the three months ended September 30, 2024, the consolidated net loss from continuing operations was approximately 422,000,adecreaseof422,000, a decrease of 898,000 compared to a net loss of approximately 1,320,000forthesameperiodin2023,representinga68.01,320,000 for the same period in 2023, representing a 68.0% improvement[177]. - For the nine months ended September 30, 2024, the consolidated net loss from continuing operations was approximately 1,815,000, a decrease of 2,046,000comparedtoanetlossofapproximately2,046,000 compared to a net loss of approximately 3,861,000 for the same period in 2023, representing a 53.0% improvement[177]. - Cash and cash equivalents as of September 30, 2024, were 134,000,adecreasefrom134,000, a decrease from 628,000 as of December 31, 2023[180]. - Net cash used in operating activities from continuing operations for the nine months ended September 30, 2024, was approximately 1,324,000,animprovementfrom1,324,000, an improvement from 2,415,000 for the same period in 2023[192][193]. - Net cash provided by financing activities during the nine months ended September 30, 2024, was approximately 1,032,000,comparedto1,032,000, compared to 2,700,000 for the same period in 2023[196][198]. Accounting and Financial Reporting - The company adopted ASU 2016-13 in Q1 fiscal 2023, requiring expected credit losses to be measured over the lifetime of financial instruments[210]. - Revenue from recruitment services is recognized when services are performed, with revenue derived from various agreements including job postings and corporate memberships[218]. - Goodwill is tested for impairment annually on December 31, and if circumstances change, interim tests are conducted[214]. - Capitalized software costs are amortized over a maximum of three years, reflecting the estimated useful lives of the software assets[216]. - The company leases office space under a non-cancelable operating lease expiring in September 2027, with periodic rent increases[222]. - Recent accounting pronouncements include ASU 2023-07 and ASU 2023-09, effective for fiscal years beginning after December 15, 2023, and December 15, 2024, respectively[227][228]. - Revenue from NAPW Network membership subscriptions is recognized ratably over a 12-month period, despite annual fees being paid upfront[220]. - The company pools receivables by days outstanding to determine expected credit loss percentages based on historical loss data[211]. - Operating lease liabilities represent the present value of lease payments not yet paid, recognized at the lease commencement date[225]. Business Segments and Strategy - The company operates in three business segments: PDN Network, NAPW Network, and RemoteMore, focusing on diverse professional networking and recruitment services[131]. - The company’s technology platform is integral to its operations, enhancing value for members and customers by addressing workforce diversity needs[132]. - The company continues to focus on profitability by targeting new clients and reducing operating expenses, while facing negative cash flows from operations[185]. - The company incurred a loss from discontinued operations of approximately 28,428fortheninemonthsendedSeptember30,2023,withnoactivityin2024[178].−AdjustedEBITDAfortheninemonthsendedSeptember30,2024,wasapproximately28,428 for the nine months ended September 30, 2023, with no activity in 2024[178]. - Adjusted EBITDA for the nine months ended September 30, 2024, was approximately (1,443,000), an improvement from (3,104,000)forthesameperiodin2023[202].−Thecompanyhadanaccumulateddeficitof(3,104,000) for the same period in 2023[202]. - The company had an accumulated deficit of 101,652,742 as of September 30, 2024[180]. - The company issued 40,217 shares of common stock at approximately 2.36pershareinthefirstquarterof2024,resultingingrossproceedsof2.36 per share in the first quarter of 2024, resulting in gross proceeds of 95,104[181].