Revenue Performance - Total revenues for Q1 2025 decreased by approximately 1,505,000 from approximately 188,000, or 17.0%, primarily due to Executive Orders targeting diversity, equity, and inclusion programs[144] - Membership fees and related services revenue decreased by approximately 127,000 in Q1 2024 to 921,000 in revenues, a decrease of approximately 31,000, or 24.4%, from approximately 96,000 in Q1 2025[147] - RemoteMore revenue increased by approximately 485,000 in Q1 2024 to 488,000 in Q1 2025[147] Cost and Expense Management - Cost of revenues increased by approximately 719,000 in Q1 2025 from 320,000, or 12.6%, to approximately 2,530,000 in Q1 2024[149] - Sales and marketing expenses decreased by approximately 830,000 in Q1 2024 to 116,000, or 11.7%, to approximately 995,000 in Q1 2024[152] - Corporate overhead costs increased by approximately 741,000, a decrease of 8.2% compared to a net loss of approximately 496,000 as of March 31, 2025, from approximately 284,000, an improvement from 1,300,000 in net cash used in investing activities during the three months ended March 31, 2025, primarily related to an investment in AI Geometric Ltd[177] - Adjusted EBITDA for the three months ended March 31, 2025, was approximately (653,000) for the same period in 2024, reflecting a slight improvement[181] - The company raised approximately 95,000 in the same period of 2024[178] - The accumulated deficit as of March 31, 2025, was approximately $103,000,000, indicating significant financial challenges[164] Accounting and Reporting - Goodwill is tested for impairment annually and when circumstances change, considering market capitalization and carrying value of assets and liabilities[192] - Capitalized technology costs are amortized over a straight-line basis, generally not exceeding three years[195] - Revenue from recruitment services is recognized when services are performed, with revenue derived from various agreements including job postings and corporate memberships[197] - Consumer marketing and advertising revenue is recognized based on fixed fees or impressions recorded on websites[198] - Revenue from NAPW Network membership subscriptions is recognized ratably over a 12-month period, with fees collected at the start of the membership[199] - Approximately 2% and 6% of recruitment services revenue for the three months ended March 31, 2025 and 2024, respectively, came from an alliance with another company[202] - Operating lease liabilities represent the present value of lease payments not yet paid, with lease expenses recognized on a straight-line basis[206] - Recent accounting pronouncements include ASU 2023-09, effective for fiscal years beginning after December 15, 2024, enhancing income tax disclosures[208] - ASU 2024-03 requires disaggregated disclosures of certain expense categories, effective for annual reporting periods beginning after December 15, 2026[209] - The company is currently evaluating the impact of recent accounting standards on its disclosures[208] Going Concern - The company continues to face negative cash flows from operations and expects to incur net losses for the foreseeable future, raising doubts about its ability to continue as a going concern[168]
Professional Diversity Network(IPDN) - 2025 Q1 - Quarterly Report