Professional Diversity Network Inc

Previous wording

Forward-looking statements in this MD&A are not guarantees of future performance and may involve risks and uncertainties that could cause actual results to differ materially from those projected. Refer to the “Note Regarding Forward-Looking Statements” section of this Quarterly Report on Form 10-Q and Item 1A. Risk Factors of our 2023 Form 10-K for a discussion of these risks and uncertainties.

Current wording

Forward-looking statements in this MD&A are not guarantees of future performance and may involve risks and uncertainties that could cause actual results to differ materially from those projected. Refer to the “Note Regarding Forward-Looking Statements” section of this Quarterly Report on Form 10-Q: Item 1A. Risk Factors of our 2023 Form 10-K and Part II, Item 1A. Risk Factors of this Quarterly Report on Form 10-Q for a discussion of these risks and uncertainties.

Previous wording

Total revenues for the six months ended June 30, 2024, decreased approximately $379,000, or 10.0 %, to approximately $3,417,000 from approximately $3,796,000 during the same period in the prior year. The decrease was predominantly attributable to a reduction in demand for contracted software development of approximately $388,000, an approximate $29,000 decrease in membership and related service, and an approximate $32,000 decrease in consumer advertising and marketing solutions.

Current wording

Total revenues for the three months ended September 30, 2024, decreased approximately $314,000, or 15.6%, to approximately $1,694,000 from approximately $2,008,000 during the same period in the prior year. The decrease was predominantly attributable to a reduction in demand for contracted software development of approximately $215,000, an approximate $52,000 decrease in recruitment services, an approximate $34,000 decrease in membership and related service, and an approximate $13,000 decrease in consumer advertising and marketing solutions.

Previous wording

Total revenues for the three months ended June 30, 2024, decreased approximately $151,000, or 8.2%, to approximately $1,690,000 from approximately $1,841,000 during the same period in the prior year. The decrease was predominantly attributable to a reduction in demand for contracted software development of approximately $175,000, an approximate $27,000 decrease in membership and related service, and an approximate $18,000 decrease in consumer advertising and marketing solutions.

Current wording

Total revenues for the nine months ended September 30, 2024, decreased approximately $694,000, or 12%, to approximately $5,111,000 from approximately $5,805,000 during the same period in the prior year. The decrease was predominantly attributable to a reduction in demand for contracted software development of approximately $603,000, an approximate $63,000 decrease in membership and related service, and an approximate $46,000 decrease in consumer advertising and marketing solutions.

Previous wording

During the three months ended June 30, 2024, our PDN Network generated approximately $1,153,000 in revenues compared to approximately $1,102,000 in revenues during the three months ended June 30, 2023, a increase of approximately $51,000 or 4.6%.

Current wording

During the three months ended September 30, 2024, our PDN Network generated approximately $1,203,000 in revenues compared to approximately $1,268,000 in revenues during the three months ended September 30, 2023, a decrease of approximately $65,000, or 5.1%.

Previous wording

During the three months ended June 30, 2024, NAPW Network revenues generated approximately $108,000, compared to revenues of approximately $136,000 during the same period in the prior year, a decrease of approximately $28,000 or 20.6%.

Current wording

During the three months ended September 30, 2024, NAPW Network revenues generated approximately $101,000, compared to revenues of approximately $135,000 during the same period in the prior year, a decrease of approximately $34,000 , or 25.2%.

Previous wording

During the three months ended June 30, 2024, RemoteMore revenue was approximately $429,000, compared to revenues of approximately $603,000 during the same period in the prior year, a decrease of approximately $174,000 or 28.8%. The decrease was predominantly attributable to a reduction in demand for contracted software development.

Current wording

During the three months ended September 30, 2024, RemoteMore revenue was approximately $390,000, compared to revenues of approximately $605,000 during the same period in the prior year, a decrease of approximately $215,000, or 35.5%. The decrease was predominantly attributable to a reduction in demand for contracted software development.

Previous wording

During the six months ended June 30, 2024, our PDN Network generated approximately $2,267,000 in revenues compared to approximately $2,229,000in revenues during the six months ended June 30, 2023, a increase of approximately $38,000or 1.7%.

Current wording

During the nine months ended September 30, 2024, our PDN Network generated approximately $3,470,000 in revenues compared to approximately $3,498,000 in revenues during the nine months ended September 30, 2023, a decrease of approximately $28,000, or 0.8%.

Previous wording

During the six months ended June 30, 2024, NAPW Network revenues generated approximately $236,000, compared to revenues of approximately $265,000during the same period in the prior year, a decrease of approximately $29,000or 10.9%.

Current wording

During the nine months ended September 30, 2024, NAPW Network revenues generated approximately $337,000, compared to revenues of approximately $400,000 during the same period in the prior year, a decrease of approximately $63,000, or 15.7%.

Previous wording

During the six months ended June 30, 2024, RemoteMore revenue was approximately $914,000, compared to revenues of approximately $1,302,000during the same period in the prior year, a decrease of approximately $388,000 or 29.8%. The decrease was predominantly attributable to a reduction in demand for contracted software development.

Current wording

During the nine months ended September 30, 2024, RemoteMore revenue was approximately $1,304,000, compared to revenues of approximately $1,907,000 during the same period in the prior year, a decrease of approximately $603,000, or 31.6%. The decrease was predominantly attributable to a reduction in demand for contracted software development.

Previous wording

Cost of revenues: Cost of revenues during the three months ended June 30, 2024 was approximately $626,000 a decrease of approximately $140,000, or 18.3%, from approximately $766,000 during the same period of the prior year. The decrease was predominantly due to an approximate $150,000 reduction in contracted software development costs directly related to the decrease in contracted revenue, approximately $6,000 of reduced payroll related costs, and approximately $16,000 increase of other costs of revenues.

Current wording

Cost of revenues: Cost of revenues during the three months ended September 30, 2024 was approximately $697,000, a decrease of approximately $226,000, or 24.5%, from approximately $923,000 during the same period of the prior year. The decrease was predominantly due to an approximate $160,000 reduction in contracted software development costs directly related to the decrease in contracted revenue, approximately $45,000 reduction in event service costs, approximately $7,000 reduction in membership benefit costs, and approximately $14,000 decrease of other costs of revenues.

Previous wording

Cost of revenues during the six months ended June 30, 2024 was approximately $1,279,000a decrease of approximately $561,000, or 30.5%, from approximately $1,840,000 during the same period of the prior year. The decrease was predominantly due to an approximate $348,000 reduction in contracted software development costs directly related to the decrease in contracted revenue, approximately $43,000 of reduced payroll related costs, and approximately $170,000 of reduced other costs of revenues.

Current wording

Cost of revenues during the nine months ended September 30, 2024 was approximately $1,976,000, a decrease of approximately $787,000, or 28.5%, from approximately $2,763,000 during the same period of the prior year. The decrease was predominantly due to an approximate $527,000 reduction in contracted software development costs directly related to the decrease in contracted revenue, approximately $64,000 reduction in event service costs, approximately $61,000 reduction in membership benefit costs, approximately $44,000 of reduced payroll related costs, and approximately $91,000 of reduced other costs of revenues.

Previous wording

Sales and marketing expense: Sales and marketing expense during the three months ended June 30, 2024 was approximately $772,000, a decrease of approximately $344,000, or 30.8%, from $1,116,000 during the same period in the prior year. The decrease was predominantly attributed to approximately $128,000 reduction in third-party computer services, approximately $40,000 of reduced payroll related costs, $120,000 reduction in marketing and marketing related consulting costs, and approximately $56,000 of reduced other purchased services.

Current wording

Sales and marketing expense: Sales and marketing expense during the three months ended September 30, 2024 was approximately $634,000, a decrease of approximately $278,000, or 30.5%, from $912,000 during the same period in the prior year. The decrease was predominantly attributed to approximately $27,000 reduction in third-party computer services, approximately $130,000 of reduced payroll related costs, $112,000 reduction in marketing and marketing related consulting costs, and approximately $9,000 of reduced other purchased services.

Previous wording

Sales and marketing expense during the six months ended June 30, 2024 was approximately $1,602,000, a decrease of approximately $335,000 or 17.3%, from $1,937,000 during the same period in the prior year. The decrease was predominantly attributed to approximately $75,000 reduction in third-party computer services, approximately $49,000 of reduced payroll related costs, $166,000 reduction in marketing and marketing related consulting costs, and approximately $45,000 of reduced other purchased services.

Current wording

Sales and marketing expense during the nine months ended September 30, 2024 was approximately $2,236,000, a decrease of approximately $614,000, or 21.5%, from $2,850,000 during the same period in the prior year. The decrease was predominantly attributed to approximately $92,000 reduction in third-party computer services, approximately $180,000 of reduced payroll related costs, $300,000 reduction in marketing and marketing related consulting costs, and approximately $42,000 of reduced other purchased services.

Previous wording

General and administrative expense: General and administrative expenses decreased by approximately $425,000, or 34.2%, to approximately $819,000 during the three months ended June 30, 2024, as compared to approximately $1,244,000 the same period in the prior year. The decrease in expenses was predominantly due to reductions of approximately $88,000 of salaries and related benefit charges, $31,000 in insurance costs, $145,000 in financing costs, $97,000 in legal costs, $30,000 in third-party computer services, and $34,000 in other general and administrative costs.

Current wording

General and administrative expense: General and administrative expenses decreased by approximately $622,000, or 46.0%, to approximately $731,000 during the three months ended September 30, 2024, as compared to approximately $1,353,000 the same period in the prior year. The decrease in expenses was predominantly due to reductions of approximately $412,000 of salaries and related benefit charges, $19,000 in insurance costs, $25,000 in accounting and financing costs, $72,000 in legal costs, $26,000 in bad debt costs, $12,000 in travel costs, $8,000 in filing fees costs, and $48,000 in other general and administrative costs.

Previous wording

General and administrative expenses decreased by approximately $483,000, or 21.0%, to approximately $1,814,000 during the six months ended June 30, 2024, as compared to approximately $2,297,000 during the same period in the prior year. The decrease in expenses was predominantly due to reductions of approximately $184,000 of salaries via the efforts of combining corporate positions and related benefit charges, $62,000 in insurance costs, $145,000 in financing costs, $127,000 in legal costs, and $43,000 in other general and administrative costs. Partially offsetting the decrease was an increase in discretionary share-based compensation of approximately $49,000, and approximately $29,000 in bad debt costs as compared to the same period in the prior year.

Current wording

General and administrative expenses decreased by approximately $1,105,000, or 30.3%, to approximately $2,545,000 during the nine months ended September 30, 2024, as compared to approximately $3,650,000 during the same period in the prior year. The decrease in expenses was predominantly due to reductions of approximately $547,000 of salaries via the efforts of combining corporate positions and related benefit charges, $81,000 in insurance costs, $143,000 in financing and accounting costs, $199,000 in legal costs, $23,000 in travel costs, $33,000 in filing fees costs, and $79,000 in other general and administrative costs.

Previous wording

Depreciation and amortization expense: Depreciation and amortization expense during the three months ended June 30, 2024 was approximately $55,000, a decrease of approximately $92,000, compared to approximately $147,000 during the same period in the prior year. The decrease was primarily attributable to approximately $104,000 of amortization expense related to Expo Experts intangible assets, for which there were no comparable expenses in the current period, partially offset by amortization expense of approximately $12,000 related to amortization of capitalized technology, as compared to the same period in the prior year.

Current wording

Depreciation and amortization expense: Depreciation and amortization expense during the three months ended September 30, 2024 was approximately $56,000, a decrease of approximately $93,000, compared to approximately $149,000 during the same period in the prior year. The decrease was primarily attributable to approximately $102,000 of amortization expense related to Expo Experts intangible assets, for which there were no comparable expenses in the current period, partially offset by amortization expense of approximately $9,000 related to amortization of capitalized technology, as compared to the same period in the prior year.

Previous wording

Depreciation and amortization expense during the six months ended June 30, 2024 was approximately $107,000, a decrease of approximately $173,000, compared to approximately $280,000during the same period in the prior year. The decrease was primarily attributable to approximately $196,000 of amortization expense related to Expo Experts intangible assets, for which there were no comparable expenses in the current period, partially offset by amortization expense of approximately $23,000 related to amortization of capitalized technology, as compared to the same period in the prior year.

Current wording

Depreciation and amortization expense during the nine months ended September 30, 2024 was approximately $163,000, a decrease of approximately $266,000, compared to approximately $429,000 during the same period in the prior year. The decrease was primarily attributable to approximately $296,000 of amortization expense related to Expo Experts intangible assets, for which there were no comparable expenses in the current period, partially offset by amortization expense of approximately $33,000 related to amortization of capitalized technology, as compared to the same period in the prior year.

Previous wording

For the six months ended June 30, 2024, costs and expenses related to our PDN Network segment decreased by approximately $534,000, or 17.6%, as compared to the same period in the prior year. The decrease is primarily a result of reductions of approximately $1,000 related to costs of revenues, $232,000 of sales and marketing costs, $131,000 of general and administrative costs, and $170,000 related to depreciation and amortization.

Current wording

For the three months ended September 30, 2024, costs and expenses related to our PDN Network segment decreased by approximately $606,000, or 35.3%, as compared to the same period in the prior year. The decrease is primarily a result of reductions of approximately $43,000 related to costs of revenues, $263,000 of sales and marketing costs, $209,000 of general and administrative costs, and $91,000 related to depreciation and amortization.

Previous wording

For the three months ended June 30, 2024, costs and expenses related to our PDN Network segment decreased by approximately $366,000, or 23.5%, as compared to the same period in the prior year. The decrease is primarily a result of reductions of approximately $297,000 of sales and marketing costs, $110,000 of general and administrative costs, and $92,000 related to depreciation and amortization. Partially offsetting the decrease were increases in costs of revenues of approximately $133,000.

Current wording

For the nine months ended September 30, 2024, costs and expenses related to our PDN Network segment decreased by approximately $1,141,000, or 24.0%, as compared to the same period in the prior year. The decrease is primarily a result of reductions of approximately $43,000 related to costs of revenues, $494,000 of sales and marketing costs, $339,000 of general and administrative costs, and $265,000 related to depreciation and amortization.

Previous wording

For the three months ended June 30, 2024, costs and expenses related to the NAPW Network decreased by approximately $128,000, or 47.6%, as compared to the same period in the prior year. The decrease is predominantly due to a reduction in payroll related costs of approximately $11,000 as a result of the restructuring of the NAPW business unit in the same period of the prior year and $117,000 of other sales, marketing and general expenses due to increased cost containment.

Current wording

For the three months ended September 30, 2024, costs and expenses related to the NAPW Network decreased by approximately $22,000, or 13.6%, as compared to the same period in the prior year. The decrease is predominantly due to a reduction in payroll related costs of approximately $2,000 as a result of the restructuring of the NAPW business unit in the same period of the prior year and $20,000 of other sales, marketing and general expenses due to increased cost containment.

Previous wording

For the six months ended June 30, 2024, costs and expenses related to the NAPW Network decreased by approximately $327,000, or 50.7%, as compared to the same period in the prior year. The decrease is predominantly due to a reduction in payroll related costs of approximately $113,000 as a result of the restructuring of the NAPW business unit in the same period of the prior year and $214,000 of other sales, marketing and general expenses due to increased cost containment.

Current wording

For the nine months ended September 30, 2024, costs and expenses related to the NAPW Network decreased by approximately $349,000, or 43.2%, as compared to the same period in the prior year. The decrease is predominantly due to a reduction in payroll related costs of approximately $110,000 as a result of the restructuring of the NAPW business unit in the same period of the prior year and $239,000 of other sales, marketing and general expenses due to increased cost containment.

Previous wording

For the six months ended June 30, 2024, cost and expenses related to RemoteMore decreased by approximately $399,000, or 26.8%, as compared to the same period in the prior year, predominantly consisting of decreases in contractor costs of approximately $348,000, and other purchased services of approximately $11,000.

Current wording

For the three months ended September 30, 2024, cost and expenses related to RemoteMore decreased by approximately $194,000, or 29.5%, as compared to the same period in the prior year, predominantly consisting of decreases in contractor costs of approximately $152,000, and $42,000 related to other purchased services.

Previous wording

For the three months ended June 30, 2024, cost and expenses related to RemoteMore decreased by approximately $135,000, or 19.7%, as compared to the same period in the prior year, predominantly consisting of decreases in contractor costs of approximately $150,000. Partially offsetting the decrease were increases in costs of approximately $15,000 related to other purchased services.

Current wording

For the nine months ended September 30, 2024, cost and expenses related to RemoteMore decreased by approximately $593,000, or 27.7%, as compared to the same period in the prior year, predominantly consisting of decreases in contractor costs of approximately $500,000, and $93,000 related to other purchased services.

Previous wording

For the three months ended June 30, 2024, costs and expenses related to Corporate Overhead decreased by approximately $371,000, or 48.6%, as compared to the same period in the prior year. The decrease is predominantly a result of reduction of $145,000 in financing costs, $114,000 in legal costs, $51,000 in accounting costs, and $61,000 in other corporation expenses.

Current wording

For the three months ended September 30, 2024, costs and expenses related to Corporate Overhead decreased by approximately $397,000, or 49.5%, as compared to the same period in the prior year. The decrease is predominantly a result of reduction of $198,000 in payroll and bonus related costs, $76,000 in legal costs, $19,000 in accounting costs, and $104,000 in other corporation expenses.

Previous wording

For the six months ended June 30, 2024, costs and expenses related to Corporate Overhead decreased by approximately $292,000, or 24.6%, as compared to the same period in the prior year. The decrease is predominantly a result of reduction of $145,000 in financing costs, $126,000 in legal costs, and $52,000 in other corporation expenses. Partially offsetting the decrease were increases in costs of approximately $31,000 related to accounting costs.

Current wording

For the nine months ended September 30, 2024, costs and expenses related to Corporate Overhead decreased by approximately $689,000, or 34.7%, as compared to the same period in the prior year. The decrease is predominantly a result of reduction of $388,000 in payroll and bonus related costs, $145,000 in financing costs, and $202,000 in legal costs. Partially offsetting the decrease were increases in costs of approximately $11,000 related to accounting costs, and $35,000 in other corporation expenses.

Previous wording

During the three months ended June 30, 2024 and 2023, we recorded an income tax expense of approximately $4,000 and an income tax expense of approximately $1,000, respectively.

Current wording

During the three months ended September 30, 2024 and 2023, we recorded an income tax expense of approximately $0 and an income tax benefit of approximately $7,000, respectively.

Previous wording

During the six months ended June 30, 2024 and 2023, we recorded an income tax expense of approximately $6,000and an income tax benefit of approximately $10,000, respectively.

Current wording

During the nine months ended September 30, 2024 and 2023, we recorded an income tax expense of approximately $6,000 and an income tax benefit of approximately $17,000, respectively.

Previous wording

Consolidated Net Loss from Continuing Operations, Net of Tax. As the result of the factors discussed above, during the three months ended June 30, 2024, we incurred a net loss from continuing operations of approximately $586,000, a decrease in the net loss of approximately $846,000, compared to a net loss of approximately $1,432,000 during the three months ended June 30, 2023. As the result of the factors discussed above, during the six months ended June 30, 2024, we incurred a net loss from continuing operations of approximately $1,393,000, a decrease in the net loss of approximately $1,148,000, compared to a net loss of approximately $2,541,000 during the six months ended June 30, 2023.

Current wording

Consolidated Net Loss from Continuing Operations, Net of Tax. As the result of the factors discussed above, during the three months ended September 30, 2024, we incurred a net loss from continuing operations of approximately $422,000, a decrease in the net loss of approximately $898,000, compared to a net loss of approximately $1,320,000 during the three months ended September 30, 2023. As the result of the factors discussed above, during the nine months ended September 30, 2024, we incurred a net loss from continuing operations of approximately $1,815,000, a decrease in the net loss of approximately $2,046,000, compared to a net loss of approximately $3,861,000 during the nine months ended September 30, 2023.

Previous wording

For the six months ended June 30, 2023, loss from discontinued operations was approximately $17,808 consisting of general and administrative expenses. There was no activity in 2024.

Current wording

For the nine months ended September 30, 2023, loss from discontinued operations was approximately $28,428 consisting of general and administrative expenses. There was no activity in 2024.

Previous wording

Our principal sources of liquidity are our cash and cash equivalents, including cash from operations and net proceeds from the issuances of common stock, if any. As of June 30, 2024, we had cash and cash equivalents of $619,311 compared to cash and cash equivalents of $627,641 at December 31, 2023. We had an accumulated deficit of $101,247,697 at June 30, 2024.

Current wording

Our principal sources of liquidity are our cash and cash equivalents, including cash from operations and net proceeds from the issuances of common stock, if any. As of September 30, 2024, we had cash and cash equivalents of $133,677 compared to cash and cash equivalents of $627,641 at December 31, 2023. We had an accumulated deficit of $101,652,742 at September 30, 2024.

Previous wording

In the first quarter of 2024, the Company issued 40,217 shares of its common stock to Tumim Stone Capital in connection with its committed equity line program, at a price of approximately $2.36 per share, resulting in aggregate gross proceeds of $95,104. In the second quarter of 2024, the Company issued 184,668 shares of its common stock to Tumim Stone Capital in connection with its committed equity line program, at prices between approximately $1.27 to $1.56 per share, resulting in aggregate gross proceeds of $239,885.

Current wording

In the first quarter of 2024, the Company issued 40,217 shares of its common stock to Tumim Stone Capital in connection with its committed equity line program, at a price of approximately $2.36 per share, resulting in aggregate gross proceeds of $95,104. In the second quarter of 2024, the Company issued 184,668 shares of its common stock to Tumim Stone Capital in connection with its committed equity line program, at prices between approximately $1.27 to $1.56 per share, resulting in aggregate gross proceeds of $239,885. In the third quarter of 2024, there was no common stock issuance to Tumim Stone Capital.

Previous wording

Our PDN Network sells recruitment services to employers, generally on a 30-to-90-day period or a one-year contract basis. This revenue is also deferred and recognized over the period of the contract. Our payment terms for PDN Network customers range from 30 to 90 days. We consider the difference between the payment terms and payment receipts a result of transit time for invoice and payment processing and to date have not experienced any liquidity issues as a result of the payments extending past the specified terms. Our NAPW Network collects membership fees generally at the commencement of the membership term or at renewal periods thereafter. The memberships we sell are for one year and we defer recognition of the revenue from membership sales and renewals and recognize it ratably over the twelve-month period. We also offer monthly membership for IAW for which we collect a fee on a monthly basis. RemoteMore generates revenue by providing contracted programmers to assist customers with their software solutions through customized software development. Customers are charged for the period the work is performed and payment terms are typically net 10 days.

Current wording

Our PDN Network sells recruitment services to employers, generally on a 30-to-90-day period or a one-year contract basis. This revenue is also deferred and recognized over the period of the contract. Our payment terms for PDN Network customers range from 30 to 90 days. We consider the difference between the payment terms and payment receipts a result of transit time for invoice and payment processing and to date have not experienced any liquidity issues as a result of the payments extending past the specified terms. Our NAPW Network collects membership fees generally at the commencement of the membership term or at renewal periods thereafter. The memberships we sell are for one year and we defer recognition of the revenue from membership sales and renewals and recognize it ratably over the twelve-month period. We also offer monthly membership for NAPW for which we collect a fee on a monthly basis. RemoteMore generates revenue by providing contracted programmers to assist customers with their software solutions through customized software development. Customers are charged for the period the work is performed and payment terms are typically net 10 days.

Previous wording

Net cash used in operating activities from continuing operations during the six months ended June 30, 2024, was approximately $768,000. We had a net loss from continuing operations of approximately $1,393,000 during the six months ended June 30, 2024, which included stock-based compensation expense of approximately $110,000, depreciation and amortization expense of approximately $107,000, allowance for credit losses of approximately $36,000, and noncash lease expense of $46,000. Changes in operating assets and liabilities provided approximately $514,000 of cash during the six months ended June 30, 2024

Current wording

Net cash used in operating activities from continuing operations during the nine months ended September 30, 2024, was approximately $1,324,000. We had a net loss from continuing operations of approximately $1,815,000 during the nine months ended September 30, 2024, which included stock-based compensation expense of approximately $138,000, depreciation and amortization expense of approximately $163,000, allowance for credit losses of approximately $4,000, and noncash lease expense of $69,000. Changes in operating assets and liabilities provided approximately $396,000 of cash during the nine months ended September 30, 2024.

Previous wording

Net cash used in operating activities from continuing operations during the six months ended June 30, 2023, was approximately $878,000. We had a net loss from continuing operations of approximately $2,541,000 during the six months ended June 30, 2023, which included stock-based compensation expense of approximately $63,000, depreciation and amortization expense of approximately $281,000, and noncash lease expense of $46,000 which was partially offset by deferred tax benefit of approximately $10,000. Changes in operating assets and liabilities provided approximately $1,282,000 of cash during the six months ended June 30, 2023.

Current wording

Net cash used in operating activities from continuing operations during the nine months ended September 30, 2023, was approximately $2,415,000. We had a net loss from continuing operations of approximately $3,861,000 during the nine months ended September 30, 2023, which included stock-based compensation expense of approximately $262,000, depreciation and amortization expense of approximately $429,000, and noncash lease expense of $69,000 which was partially offset by deferred tax benefit of approximately $21,000. Changes in operating assets and liabilities provided approximately $705,000 of cash during the nine months ended September 30, 2023.

Previous wording

Net cash used in investing activities during the six months ended June 30, 2024, was approximately $153,000 which consisted of investments in developed technology and computer equipment purchases.

Current wording

Net cash used in investing activities during the nine months ended September 30, 2024, was approximately $202,000 which consisted of investments in developed technology and computer equipment purchases.

Previous wording

Net cash used in investing activities from continuing operations during the six months ended June 30, 2023, was approximately $822,000, which consisted of $400,000 related to the acquisition of Expo Experts, $352,000 related to additional investment in RemoteMore, and $70,000 related to investments in developed technology and computer equipment purchases.

Current wording

Net cash used in investing activities from continuing operations during the nine months ended September 30, 2023, was approximately $879,000, which consisted of $400,000 related to the acquisition of Expo Experts, $352,000 related to additional investment in RemoteMore, and $127,000 related to investments in developed technology and computer equipment purchases.

Previous wording

Net cash provided in financing activities during the six months ended June 30, 2024, was approximately $912,000 representing $830,000 in proceeds from the sale of common stock and $82,000 in proceeds from minority partners.

Current wording

Net cash provided in financing activities during the nine months ended September 30, 2024, was approximately $1,032,000 representing $950,000 in proceeds from the sale of common stock and $82,000 in proceeds from minority partners.

Previous wording

Net cash provided in financing activities during the six months ended June 30, 2023 was approximately $2,700,000 representing the proceeds from the sale of common stock.

Current wording

Net cash provided in financing activities during the nine months ended September 30, 2023 was approximately $2,700,000 representing the proceeds from the sale of common stock.

Previous wording

The following table provides a reconciliation of net loss from continuing operations to Adjusted EBITDA for the three and six months ended June 30, 2024 and 2023, the most directly comparable GAAP measure reported in our consolidated financial statements:

Current wording

The following table provides a reconciliation of Adjusted EBITDA to net loss from continuing operations, the most directly comparable GAAP measure reported in our consolidated financial statements, for the three and nine months ended September 30, 2024 and 2023:

Previous wording

We are in an alliance with another company to build, host, and manage our job boards and website. This alliance member also sells two of our recruitment services products and bills customers, collects fees, and provides customer services. For the six months ended June 30, 2024 and 2023, we recorded approximately 6% and 10% of our recruitment services revenue from this alliance sales relationship.

Current wording

We are in an alliance with another company to build, host, and manage some of our job boards and website. This alliance member also sells two of our recruitment services products and bills customers, collects fees, and provides customer services. For the nine months ended September 30, 2024 and 2023, we recorded approximately 5% and 9% of our recruitment services revenue from this alliance sales relationship. We are currently in the process of transitioning the management of these job boards and website operations in-house.