“Our first quarter showed a mixed bag within our revenue streams. Demand for direct enterprise sales was light at the beginning of the quarter, however we recorded the best quarterly renewal percentage in the Company's history. We continue to focus on strategic targeting of industries and business that we feel are in need of our services. RemoteMore was behind budget for the quarter as demand was slow in the period, but is in conversation with numerous potential clients. We are catiously optimistic that we can deliver on some of these discussions,” said
First Quarter Financial Highlights:
● | Total consolidated revenues for the three months ended March 31, 2024 decreased | |
● | On |
Financial Results for the Three Months Ended
Revenues
Total revenues for the three months ended March 31, 2024 decreased approximately
During the three months ended
During the three months ended
During the three months ended
Costs and Expenses
Cost of revenues during the three months ended
Sales and marketing expense during the three months ended
General and administrative expenses during the three months ended March 31, 2024 decreased by approximately
Net Loss from Continuing Operations
As the result of the factors discussed above, during the three months ended
Summary of the Quarter’s Financial Information
Amounts in following tables are in thousands except for per share amounts and outstanding shares.
Summary of Financial Position
2024 | 2023 | |||||
Current Assets: | ||||||
Cash and cash equivalents | $ | 97 | $ | 628 | ||
Other current assets | 1,720 | 1,740 | ||||
Total current assets | $ | 1,817 | $ | 2,368 | ||
Long-term assets | 3,860 | 3,959 | ||||
Total Assets | $ | 5,677 | $ | 6,327 | ||
Total current liabilities | $ | 3,570 | $ | 3,475 | ||
Total long-term liabilities | 261 | 283 | ||||
Total liabilities | $ | 3,831 | $ | 3,758 | ||
Total stockholders’ equity | 2,341 | 3,048 | ||||
Total stockholders’ equity – noncontrolling interests | (495 | ) | (480 | ) | ||
Total liabilities and stockholders’ equity | $ | 5,677 | $ | 6,327 |
Summary of Financial Operations
Three Months Ended | |||||||||||||||
Change | Change | ||||||||||||||
2024 | 2023 | (Dollars) | (Percent) | ||||||||||||
Revenues: | |||||||||||||||
Membership fees and related services | $ | 127 | $ | 129 | $ | (2 | ) | (1.2 | )% | ||||||
Recruitment services | 1,104 | 1,103 | 1 | 0.1 | % | ||||||||||
Contracted software development | 485 | 698 | (213 | ) | (30.5 | )% | |||||||||
Consumer advertising and marketing solutions | 11 | 25 | (14 | ) | (56.3 | )% | |||||||||
Total revenues | $ | 1,727 | $ | 1,955 | $ | (228 | ) | (11.7 | )% | ||||||
Cost and expenses: | |||||||||||||||
Cost of revenues | $ | 653 | $ | 1,075 | $ | (422 | ) | (39.2 | )% | ||||||
Sales and marketing | 830 | 822 | 8 | 1.0 | % | ||||||||||
General and administrative | 995 | 1,053 | (58 | ) | (5.5 | )% | |||||||||
Depreciation and amortization | 52 | 133 | (81 | ) | (61.3 | )% | |||||||||
Total pre-tax cost and expenses: | $ | 2,530 | $ | 3,083 | $ | (553 | ) | (17.9 | )% | ||||||
Consolidated net loss from continuing operations, net of tax | $ | (803 | ) | $ | (1,128 | ) | $ | 325 | (28.8 | )% | |||||
Basic and diluted loss per share: | |||||||||||||||
Continuing operations | $ | (0.07 | ) | $ | (0.11 | ) | |||||||||
Weighted average outstanding shares used in computing net loss per common share: | |||||||||||||||
Basic and diluted | 11,481,178 | 10,016,603 |
Summary of Cash Flows from Continuing Operations
Three Months Ended | ||||||||
Cash (used in) provided by continuing operations | 2024 | 2023 | ||||||
Operating activities | $ | (543 | ) | $ | (394 | ) | ||
Investing activities | (83 | ) | (548 | ) | ||||
Financing activities | 95 | 700 | ||||||
Net increase in cash and cash equivalents from continuing operations | $ | (531 | ) | $ | (242 | ) |
Non-GAAP (Adjusted) Financial Measures
We believe Adjusted EBITDA provides a meaningful representation of our operating performance that provides useful information to investors regarding our financial condition and results of operations. Adjusted EBITDA is commonly used by financial analysts and others to measure operating performance. Furthermore, management believes that this non-GAAP financial measure may provide investors with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of our core ongoing business. However, while we consider Adjusted EBITDA to be an important measure of operating performance, Adjusted EBITDA and other non-GAAP financial measures have limitations, and investors should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. Further, Adjusted EBITDA, as we define it, may not be comparable to EBITDA, or similarly titled measures, as defined by other companies.
The following non-GAAP financial information in the tables that follow are reconciled to comparable information presented using GAAP, derived by adjusting amounts determined in accordance with GAAP for certain items presented in the accompanying selected operating statement data.
The adjustments for the three months ended
The adjustments for the three months ended
Three Months Ended | ||||||||
2024 | 2023 | |||||||
(in thousands) | ||||||||
Loss from Continuing Operations, net of tax | $ | (807 | ) | $ | (1,109 | ) | ||
Stock-based compensation | 83 | 33 | ||||||
Loss attributable to noncontrolling interest | 15 | 52 | ||||||
Depreciation and amortization | 52 | 133 | ||||||
Other (expense) income, net | 2 | (7 | ) | |||||
Income tax expense (benefit) | 2 | (11 | ) | |||||
Adjusted EBITDA | $ | (653 | ) | $ | (909 | ) |
About
Forward-Looking Statements
This press release contains certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. This release does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. Forward-looking statements in this release are based on information available to us as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business, which include the risk factors disclosed in our most recently filed Annual Report on Form 10-K and in our subsequent filings with the
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