Professional Diversity Network, Inc.
For the period ended Mar 31, 2025. Filed May 14, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 14, 2025
IPDN$1.35-1.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-14.
0001437749-24-035078
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-14.
0001437749-25-016713
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 121 previous paragraphs and 104 current paragraphs.
73 unchanged; 24 reworded; 7 added; 24 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 19 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Cost of revenues: Cost of revenues during the three months ended March 31, 2025 was approximately $719,000, an increase of approximately $66,000, or 10.1%, from approximately $653,000 during the same period of the prior year. The increase was predominantly due to an approximate $49,000 increase in payroll related costs, reflecting the cessation of labor-cost capitalization following the launch of the new website.
Current report
For the three months ended March 31, 2025, costs and expenses related to the NAPW Network decreased by approximately $58,000, or 32.6%, as compared to the same period in the prior year. The decrease is predominantly due to a reduction in approximately $20,000 in sales and marketing costs, approximately $18,000 in depreciation and amortization costs, approximately $14,000 in general and administrative costs, and approximately $6,000 in costs of sales.
Current report
In February, 2025, the Company received a Written Notice from a single institutional investor (the “Investor”) to exercise 110,000 Pre-Funded Warrants originally purchased in November 2024 at a price of $7.90 per warrant. In connection with the exercise, the Investor paid an additional $0.10 per share—bringing the total purchase price to $8.00 per share—for the issuance of 110,000 shares of common stock, resulting in additional gross proceeds of $11,000 to the Company.
Current report
InFebruary, 2025, the Aurous Vertex Limited delivered a Written Notice to the Company exercising its option to purchase an additional 100,000 shares of Common Stock at a purchase price per share of $3.385, the closing price of the Company’s Common Stock onFebruary 25, 2025. OnMarch 24, 2025, upon the satisfaction or waiver of the closing conditions, the Company issued an additional 100,000 shares of Common Stock to Aurous Vertex Limited.
Current report
Net cash used in investing activities during the three months ended March 31, 2025, was approximately $1,300,000 which is related to the investment in 13% of AI Geometric Ltd's outstanding shares.
Current report
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances effective tax rate reconciliation disclosure requirements and provides clarity to the disclosures of income taxes paid, income before taxes and provision for income taxes. The amendments are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments in this update should be applied on a prospective basis. Retrospective application is permitted. The Company is currently evaluating this ASU to determine its impact on the Company’s disclosures.
Current report
In November 2024, the Financial Accounting Standards Board (“FASB”) issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures. The ASU requires a public business entity to provide disaggregated disclosures of certain categories of expenses on an annual and interim basis including purchases of inventory, employee compensation, depreciation, and intangible asset amortization for each income statement line item that contains those expenses. This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating this ASU to determine its impact on the Company’s disclosures.
Removed paragraphs (24)
Previous report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
Discontinued Operations
Previous report
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 report
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 report
On June 28, 2024, the Company entered into a stock purchase agreement with Eighty-eight Investment LLC, a Delaware limited liability company wholly owned and controlled by Mr. Xin He, our Chief Executive Officer. This purchase of 1,000,000 shares of our common stock at a price of $0.495 per share provided aggregate proceeds of $495,000.
Previous report
On September 26, 2024, the Company entered into a stock purchase agreement with Yu Tian, an individual and a resident of the People’s Republic of China, in connection with the purchase by Ms. Tian of 398,671 shares of common stock at a price of approximately $0.301 per share for aggregate gross proceeds of $120,000.
Previous report
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 report
In November 2023, the FASB issued ASU 2023-07, which updates reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance. This update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. This update will be applied retrospectively for all prior periods presented in the financial statements.
Previous report
In December 2023, the FASB issued ASU 2023-09, which is intended to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 primarily enhances and expands both the annual income tax rate reconciliation disclosure and the annual income taxes paid disclosure. This update is effective for fiscal years beginning after December 15, 2024 and may be adopted on a prospective or retrospective basis, with early adoption permitted.
Previous report
The company is currently evaluating the impact of the adoption of these standards on our disclosures.
Reworded paragraphs (24)
Previous wording
We currently operate in three business segments. PDN Network, our primary business segment, includes online professional job seeking communities with career resources tailored to the needs of various diverse cultural groups and employers looking to hire members of such groups. Our second business segment consists of the NAPW Network, a women-only professional networking organization. Our third business segment consists of RemoteMore, which connects companies with reliable, cost-efficient software developers with less effort and friction, and empowers developers to find meaningful jobs regardless of their location.
Current wording
We currently operate in three business segments. TalentAlly Network, our primary business segment, includes online professional job seeking communities with career resources tailored to the needs of various diverse cultural groups and employers looking to hire members of such groups. Our second business segment consists of the NAPW Network, a women-only professional networking organization. Our third business segment consists of RemoteMore, which connects companies with reliable, cost-efficient software developers with less effort and friction, and empowers developers to find meaningful jobs regardless of their location.
Previous wording
Recruitment Services. We provide recruitment services through PDN Network to medium and large employers seeking to diversify their employment ranks. Our recruitment services revenue is derived from the Company’s agreements through single and multiple job postings, recruitment media, career fair events, talent recruitment communities, basic and premier corporate memberships, hiring campaign marketing and advertising, e-newsletter marketing and research and outreach services. Recruitment revenue includes revenue recognized from direct sales to customers for recruitment services and events, as well as revenue from the Company’s direct e-commerce sales. The majority of recruitment services revenue comes from job recruitment advertising as well as face-to-face and virtual recruiting events for Engineering, Technology and Security Clearance positions, designed to attract diverse candidates who may also have STEM-based backgrounds through our wholly-owned company Expo Experts Events, LLC. We also offer to businesses subject to the regulations and requirements of the Equal Employment Opportunity Office of Federal Contract Compliance Program (“OFCCP”) our OFCCP compliance product, which combines diversity recruitment advertising with job postings and compliance services.
Current wording
Recruitment Services. We provide recruitment services through TalentAlly Network to medium and large employers seeking to diversify their employment ranks. Our recruitment services revenue is derived from the Company’s agreements through single and multiple job postings, recruitment media, career fair events, talent recruitment communities, basic and premier corporate memberships, hiring campaign marketing and advertising, e-newsletter marketing and research and outreach services. Recruitment revenue includes revenue recognized from direct sales to customers for recruitment services and events, as well as revenue from the Company’s direct e-commerce sales. The majority of recruitment services revenue comes from job recruitment advertising as well as face-to-face and virtual recruiting events for Engineering, Technology and Security Clearance positions, designed to attract diverse candidates who may also have STEM-based backgrounds through our wholly-owned company Expo Experts Events, LLC. We also offer to businesses subject to the regulations and requirements of the Equal Employment Opportunity Office of Federal Contract Compliance Program (“OFCCP”) our OFCCP compliance product, which combines diversity recruitment advertising with job postings and compliance services.
Previous wording
Cost of revenue primarily consists of costs of producing job fair and other events, revenue sharing with partner organizations, and costs of web hosting and operating our websites for the PDN Network. Costs of hosting member conferences and local chapter meetings are also included in the cost of revenue for NAPW Network. Costs of paying outside developers are included in the cost of revenue for RemoteMore.
Current wording
Cost of revenue primarily consists of costs of producing job fair and other events, revenue sharing with partner organizations, and costs of web hosting and operating our websites for the TalentAlly Network. Costs of hosting member conferences and local chapter meetings are also included in the cost of revenue for NAPW Network. Costs of paying outside developers are included in the cost of revenue for RemoteMore.
Previous 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.
Current wording
Total revenues for the three months ended March 31, 2025, decreased approximately $222,000, or 12.9%, to approximately $1,505,000 from approximately $1,727,000 during the same period in the prior year. The decrease was predominantly attributable to an approximate $188,000 decrease in recruitment services due to the Executive Orders targeting diversity, equity, and inclusion programs in the public and private sectors and an approximate $31,000 decrease in membership and related service.
Previous 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%.
Current wording
During the three months ended March 31, 2025, our TalentAlly Network generated approximately $921,000 in revenues compared to approximately $1,115,000 in revenues during the three months ended March 31, 2024, a decrease of approximately $194,000, or 17.4%.
Previous 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%.
Current wording
During the three months ended March 31, 2025, NAPW Network revenues generated approximately $96,000, compared to revenues of approximately $127,000 during the same period in the prior year, a decrease of approximately $31,000 , or 24.4%.
Previous 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.
Current wording
During the three months ended March 31, 2025, RemoteMore revenue was approximately $488,000, compared to revenues of approximately $485,000 during the same period in the prior year, an increase of approximately $3,000, or 0.6%.
Previous 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.
Current wording
Sales and marketing expense: Sales and marketing expense during the three months ended March 31, 2025 was approximately $571,000, a decrease of approximately $259,000, or 31.2%, from $830,000 during the same period in the prior year. The decrease was predominantly attributed to approximately $171,000 of reduced payroll and commission related costs and $88,000 reduction in marketing and marketing related consulting costs.
Previous 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.
Current wording
General and administrative expense: General and administrative expenses decreased by approximately $116,000, or 11.7%, to approximately $879,000 during the three months ended March 31, 2025, as compared to approximately $995,000 during the same period in the prior year. The decrease in expenses was predominantly due to reductions of approximately $87,000 of salaries and related benefit charges, $18,000 in insurance costs, and $11,000 in other miscellaneous taxes.
Previous 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.
Current wording
Depreciation and amortization expense: Depreciation and amortization expense during the three months ended March 31, 2025 was approximately $41,000, a decrease of approximately $11,000, compared to approximately $52,000 during the same period in the prior year. The decrease was primarily attributable to the amortization of trade name and other intangible assets.
Previous 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.
Current wording
For the three months ended March 31, 2025, costs and expenses related to our TalentAlly Network segment decreased by approximately $332,000, or 25.3%, as compared to the same period in the prior year. The decrease is primarily a result of reductions of approximately $245,000 in sales and marketing costs, and approximately $142,000 in general and administrative costs. Partially offsetting the decreases is an increase of approximately $6,000 in depreciation and amortization costs, and approximately $49,000 in costs of sales.
Previous 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.
Current wording
For the three months ended March 31, 2025, cost and expenses related to RemoteMore increased by approximately $37,000, or 6.9%, as compared to the same period in the prior year, predominantly due to an increase in costs of sales approximately $37,000.
Previous 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.
Current wording
For the three months ended March 31, 2025, costs and expenses related to Corporate Overhead increased by approximately $33,000, or 6.6%, as compared to the same period in the prior year. The increase is predominantly due to an increase of $69,000 in legal costs, and $55,000 filing and investor relations expenses. Partially offsetting the increases is a decrease of approximately $64,000 in payroll and bonus related costs, $18,000 in insurance costs and $9,000 in accounting costs.
Previous 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.
Current wording
During the three months ended March 31, 2025 and 2024, we recorded an income tax expense of approximately $0 and an income tax expense of approximately $2,000, 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 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.
Current wording
Consolidated Net Loss from Continuing Operations, Net of Tax. As the result of the factors discussed above, during the three months ended March 31, 2025, we incurred a net loss from continuing operations of approximately $741,000, a decrease in the net loss of approximately $66,000, compared to a net loss of approximately $807,000 during the three months ended March 31, 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 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.
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 March 31, 2025, we had cash and cash equivalents of approximately $496,000 compared to cash and cash equivalents of approximately $1,731,000 at December 31, 2024. We had an accumulated deficit of approximately $103,000,000 at March 31, 2025.
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 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.
Current wording
Our TalentAlly 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 TalentAlly 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 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.
Current wording
Net cash used in operating activities from continuing operations during the three months ended March 31, 2025, was approximately $284,000. We had a net loss from continuing operations of approximately $741,000 during the three months ended March 31, 2025, which included stock-based compensation expense of approximately $37,000, depreciation and amortization expense of approximately $41,000, provision for doubtful accounts of approximately $10,000, unrealized loss on investment of approximately $44,000, and noncash lease expense of $23,000. Changes in operating assets and liabilities provided approximately $303,000 of cash during the three months ended March 31, 2025.
Previous 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.
Current wording
Net cash used in operating activities from continuing operations during the three months ended March 31, 2024, was approximately $543,000. We had a net loss from continuing operations of approximately $807,000 during the three months ended March 31, 2024, which included stock-based compensation expense of approximately $83,000, depreciation and amortization expense of approximately $52,000, provision for doubtful accounts of approximately $32,000, and noncash lease expense of $23,000. Changes in operating assets and liabilities provided approximately $74,000 of cash during the three months ended March 31, 2024.
Previous 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.
Current wording
Net cash used in investing activities from continuing operations during the three months ended March 31, 2024, was approximately $83,000, which consisted of investments in developed technology and computer equipment purchases
Previous 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.
Current wording
Net cash provided in financing activities during the three months ended March 31, 2025, was approximately $349,000 representing the proceeds from the sale of common stock.
Previous 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.
Current wording
Net cash provided in financing activities during the three months ended March 31, 2024 was approximately $95,000 representing the proceeds from the sale of common stock.
Previous 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:
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 months ended March 31, 2025 and 2024:
Previous 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.
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 three months ended March 31, 2025 and 2024, we recorded approximately 2% and 6% of our recruitment services revenue from this alliance sales relationship. In 2024, we transitioned the management of these job boards and website operations in-house.