“2023 was a challenging year for PDN, considering the optimism we had as we closed out fiscal 2022. The early 2023 downturn in the economy and reduced hiring in industries that are personnel heavy caused us to look to restructure ourselves internally and alter our marketing strategies,” said
Fourth Quarter Financial Highlights:
- Total consolidated revenues for the three months ended December 31, 2023 increased
$12 thousand , or 0.6 percent, as compared to the same period in the prior year. - On
December 31, 2023 , cash balances were approximately$628 ,000 as compared to$1,237,000 onDecember 31, 2022 . Working capital deficit from continuing operations onDecember 31, 2023 , was approximately$1,107,000 as compared to a working capital deficit from continuing operations of$187,000 onDecember 31, 2022 . - In
December 2023 , we sold a combined 273,341 shares of our common stock toTumim Stone Capital LLC through our committed equity line at an average price of$1.70 for aggregate gross proceeds of approximately$464,300 . - In
December 2023 , we entered into a stock purchase agreement with CFL, in which we sold 122,670 shares of our common stock at a price per share of$1.63 for gross proceeds of approximately$200,000 .
Financial Results for the Three Months Ended
Revenues
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 December 31, 2023, was approximately
General and administrative expenses decreased by approximately
Net Loss from Continuing Operations
As the result of the factors discussed above, during the three months ended
Financial Results for the Year Ended
Revenues
Total revenues for the year ended December 31, 2023 decreased approximately
During the year ended
During the year ended
During the year ended
Costs and Expenses
Cost of revenues during the year ended
General and administrative expenses increased by approximately
Net Loss from Continuing Operations
During the year ended
Summary Financial Information
Amounts in following tables are in thousands except for per share amounts and outstanding shares.
Summary of Financial Position
2023 | 2022 | |||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 628 | $ | 1,237 | ||||
Other current assets | 1,741 | 2,020 | ||||||
Total current assets | $ | 2,368 | $ | 3,257 | ||||
Long-term assets | 3,958 | 3,579 | ||||||
Total Assets | $ | 6,327 | $ | 6,836 | ||||
Total current liabilities | $ | 3,475 | $ | 3,943 | ||||
Total long-term liabilities | 283 | 584 | ||||||
Total liabilities | $ | 3,758 | $ | 4,527 | ||||
Total stockholders’ equity | 2,909 | 2,546 | ||||||
Total stockholders’ equity – noncontrolling interests | (341 | ) | (237 | ) | ||||
Total liabilities and stockholders’ equity | $ | 6,327 | $ | 6,836 | ||||
Summary of Financial Operations
Year Ended | ||||||||||||||||
Change | Change | |||||||||||||||
2023 | 2022 | (Dollars) | (Percent) | |||||||||||||
Revenues: | ||||||||||||||||
Membership fees and related services | $ | 531 | $ | 639 | $ | (109 | ) | (17.0 | )% | |||||||
Recruitment services | 4,640 | 4,862 | (222 | ) | (4.6 | )% | ||||||||||
Contracted software development | 2,437 | 2,646 | (208 | ) | (7.9 | )% | ||||||||||
Consumer advertising and marketing solutions | 91 | 167 | (76 | ) | (45.5 | )% | ||||||||||
Total revenues | $ | 7,699 | $ | 8,314 | $ | (615 | ) | (7.4 | )% | |||||||
Cost and expenses: | ||||||||||||||||
Cost of revenues | $ | 3,461 | $ | 4,260 | $ | (799 | ) | (18.8 | )% | |||||||
Sales and marketing | 3,701 | 2,806 | 895 | 31.9 | % | |||||||||||
General and administrative | 4,452 | 3,574 | 877 | 24.5 | % | |||||||||||
Depreciation and amortization | 624 | 776 | (152 | ) | (19.6 | )% | ||||||||||
Total pre-tax cost and expenses: | $ | 12,238 | $ | 11,416 | $ | 822 | 7.2 | % | ||||||||
Loss from continuing operations, net of tax | $ | (4,386 | ) | $ | (3,092 | ) | $ | (1,294 | ) | 41.8 | % | |||||
Basic and diluted loss per share: | ||||||||||||||||
Continuing operations | $ | (0.43 | ) | $ | (0.39 | ) | ||||||||||
Weighted average outstanding shares used in computing net loss per common share: | ||||||||||||||||
Basic and diluted | 10,558,532 | 8,195,282 |
Three Months Ended | ||||||||||||||||
Change | Change | |||||||||||||||
2023 | 2022 | (Dollars) | (Percent) | |||||||||||||
Revenues: | ||||||||||||||||
Membership fees and related services | $ | 131 | $ | 129 | $ | 2 | 1.6 | % | ||||||||
Recruitment services | 1,218 | 1,022 | 196 | 19.2 | % | |||||||||||
Products sales and other | 599 | 764 | (165 | ) | (21.6 | )% | ||||||||||
Consumer advertising and marketing solutions | 15 | 36 | (21 | ) | (58.3 | )% | ||||||||||
Total revenues | $ | 1,963 | $ | 1,951 | $ | 12 | 0.6 | % | ||||||||
Cost and expenses: | ||||||||||||||||
Cost of revenues | $ | 766 | $ | 1,237 | $ | (471 | ) | (38.1 | )% | |||||||
Sales and marketing | 851 | 627 | 224 | 35.7 | % | |||||||||||
General and administrative | 802 | 1,105 | (303 | ) | (27.4 | )% | ||||||||||
Depreciation and amortization | 195 | 30 | 165 | 550.0 | % | |||||||||||
Total pre-tax cost and expenses: | $ | 2,614 | $ | 2,999 | $ | (385 | ) | (12.8 | )% | |||||||
Loss from continuing operations, net of tax | $ | (525 | ) | $ | (1,055 | ) | $ | 530 | (50.2 | )% | ||||||
Basic and diluted loss per share: | ||||||||||||||||
Continuing operations | $ | (0.05 | ) | $ | (0.12 | ) | ||||||||||
Weighted average outstanding shares used in computing net loss per common share: | ||||||||||||||||
Basic and diluted | 11,114,943 | 9,357,055 | ||||||||||||||
Summary of Cash Flows from Continuing Operations
Year Ended | ||||||||
Cash (used in) provided by continuing operations | 2023 | 2022 | ||||||
Operating activities | $ | (2,999 | ) | $ | (2,249 | ) | ||
Investing activities | (957 | ) | (61 | ) | ||||
Financing activities | 3,364 | 145 | ||||||
Net increase in cash and cash equivalents from continuing operations | $ | (592 | ) | $ | (2,165 | ) |
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 and year ended
The adjustments for the three months and year ended
Three Months Ended | ||||||||
2023 | 2022 | |||||||
(in thousands) | ||||||||
Loss from Continuing Operations | $ | (525 | ) | $ | (1,055 | ) | ||
Stock-based compensation | 36 | 42 | ||||||
Litigation settlement reserve | - | - | ||||||
Loss attributable to noncontrolling interest | 12 | 46 | ||||||
Depreciation and amortization | 195 | 30 | ||||||
Other (expense) income, net | (4 | ) | 9 | |||||
Income tax expense (benefit) | (122 | ) | 23 | |||||
Adjusted EBITDA | $ | (408 | ) | $ | (905 | ) |
Year Ended | ||||||||
2023 | 2022 | |||||||
(in thousands) | ||||||||
Loss from Continuing Operations | $ | (4,386 | ) | $ | (3,092 | ) | ||
Share-based compensation | 300 | 481 | ||||||
Litigation settlement reserve | - | (909 | ) | |||||
Loss attributable to noncontrolling interest | 103 | 555 | ||||||
Depreciation and amortization | 624 | 776 | ||||||
Other income (expense) | (13 | ) | 4 | |||||
Income tax benefit | (139 | ) | - | |||||
Adjusted EBITDA | $ | (3,511 | ) | $ | (2,185 | ) | ||
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. 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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