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Staffing 360 Solutions, Inc. has submitted its 10-Q filing for the quarterly period ended September 28, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenue to $46,098,000 from $49,537,000 in the same quarter the previous year. The decrease is attributed to a challenging U.S. operating environment, particularly affecting the Commercial Staffing sector.
The company reported a gross profit of $6,162,000 for the quarter, down from $7,663,000 in the previous year. The decline in gross profit is mainly due to a higher proportion of lower-margin Employer of Record services.
Operating expenses for the quarter were $7,470,000, compared to $9,154,000 in the same quarter of the previous year. The decrease is primarily due to reductions in force implemented in May 2023 and February 2024.
Net loss for the quarter was $2,844,000, an improvement from a net loss of $4,255,000 in the previous year. The improvement is attributed to reduced operating expenses and the absence of losses from discontinued operations.
Cash used in operating activities was $3,556,000 for the nine months ended September 28, 2024, compared to $10,725,000 in the previous year. This includes cash used in discontinued operations.
The company has a working capital deficit of $48,818,000 as of September 28, 2024, and an accumulated deficit of $134,426,000. The report indicates ongoing negotiations with lenders to address these financial challenges.
Staffing 360 Solutions has entered into an Agreement and Plan of Merger with Atlantic International Corp, which will result in the company becoming a wholly-owned subsidiary of Atlantic.
The filing also notes a material weakness in internal controls over financial reporting, specifically related to the lack of sufficient finance personnel and processes for goodwill valuation.
The company continues to focus on its core business streams of Commercial and Professional Staffing in the U.S., while managing its financial obligations and exploring strategic options to improve its financial position.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Staffing 360 Solutions Inc. quarterly 10-Q report dated November 15, 2024. To report an error, please email earnings@qz.com.