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Professional Diversity Network, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in total revenues to $1,694,000 from $2,008,000 in the same quarter the previous year. The decrease is attributed to a reduction in demand for contracted software development and recruitment services.
Cost of revenues for the quarter was $697,000, representing 41% of total revenues, compared to 46% in the same quarter of the previous year. This decrease in cost ratio is due to a reduction in contracted software development costs.
The company reported a net loss from continuing operations of $422,000 for the quarter, compared to $1,320,000 in the previous year, with the improvement attributed to cost reductions in sales, marketing, and general administrative expenses.
Cash used in operating activities was $1,324,000 for the nine months ended September 30, 2024, compared to $2,415,000 in the previous year.
Professional Diversity Network had a working capital deficit of $1,878,000 as of September 30, 2024. The company acknowledges its dependence on raising capital and generating revenues to meet future obligations.
The filing also details various equity transactions, including stock sales to Tumim Stone Capital and Eighty-eight Investment LLC, providing aggregate proceeds of $950,000.
The company does not anticipate cash dividend payments to common stockholders in the near future.
Professional Diversity Network continues to focus on reducing operating costs and targeting new clients to improve overall profitability.
The company identified a material weakness in its internal controls over financial reporting due to a lack of resources with SEC financial reporting experience.
Professional Diversity Network is working to regain compliance with Nasdaq (NDAQ+0.39%) listing requirements, including maintaining a minimum bid price and stockholders' equity.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Professional Diversity Network Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.