NEW YORK, NY / ACCESSWIRE / August 14, 2023 / Recruiter.com Group, Inc. (NASDAQ:RCRT)(NASDAQ:RCRTW) (the "Company"), an on-demand recruiting platform, today announced financial results for its second quarter ended June 30, 2023.

"We're proud of the significant strides made in the second quarter of 2023, demonstrating our commitment to a streamlined and focused strategy," said Miles Jennings, CEO of the Company. "By reducing operating expenses by over 60% from the first quarter of 2023 and benefiting from other income from government credits, we improved our net loss by over 70% and generated positive adjusted EBITDA of $39.7 thousand. This quarter marks a turning point, and we are enthusiastic about our continued emphasis on technology and AI-powered solutions. The numbers reflect our determination and success in aligning with our overall strategic plan, and I'm confident in the direction we're headed. It's a promising time for the Company as we pivot, positioning ourselves for a future filled with opportunities."

"In alignment with our strategic plan, we've embarked on a groundbreaking initiative, announcing our proposed asset acquisition of fintech assets from GoLogiq," Jennings elaborated. "Through meticulous planning and execution in the past quarters, we've made strides in this strategic transaction, forming CognoGroup, Inc. as the potential nexus for our current operating business, and entering a Securities Purchase Agreement to acquire 1,000,000 Series A Preferred Stock of Atlantic Energy Solutions, a company quoted on the OTC Markets. These well-calibrated steps signify our dedication to advancing our strategic mission, a mission we believe harbors the key to unlocking value for our stakeholders."

Second Quarter 2023 Financial Highlights (Full Results in Tables Below)

Revenue for the second quarter totaled $2.0 million, a 71% decrease compared to revenue of $7.1 million in the second quarter of 2022, due primarily to a strategic alignment away from the professional services of the Recruiters on Demand business.
Gross profit for the second quarter was $437 thousand, an 85% decrease compared to gross profit of $2.9 million in the second quarter of 2022, due to lower total revenue.
Total operating expenses for the second quarter were $1.4 million, a 73% decrease compared to operating expenses of $5.3 million in the second quarter of 2022, due primarily to reductions in staff and the ongoing efficiencies gained from the integration of asset acquisitions.
Net loss for the second quarter was $980 thousand, an 18% improvement compared to a net loss of $1.2 million in the second quarter of 2022. The net loss in the second quarter of 2023 included interest expense and finance cost of $41 thousand, non-cash depreciation and amortization expense of $332 thousand, gain on settlement of payables of $179 thousand, and equity-based compensation expense of $220 thousand.

Liquidity and Capital Resources

On June 30, 2023, Recruiter.com had $442 thousand in cash and cash equivalents, and accounts receivable, net, of $1.4 million. There were 17,792,151 common shares outstanding at quarter-end.

Jennings concluded, "While this quarter has been a period of strategic realignment, the decisions made have set the Company on a dynamic course for the future. Our focus on technology and AI-powered solutions, the formation of CognoGroup, Inc., and the careful planning behind our proposed acquisition signify more than just adaptation - they're a calculated drive toward innovation and growth. The lessons we've embraced and the paths we've chosen are aligning us with a promising and prosperous future. We believe in our direction, and I'm confident that our stakeholders will see the value we're working tirelessly to unlock."

About Recruiter.com Group, Inc.

Recruiter.com is an on-demand recruiting platform providing flexible talent acquisition solutions that scale from startups to the Fortune 100. With an on-tap network of thousands of recruiting professionals and recruitment marketing automation, Recruiter.com helps businesses solve today's complex hiring challenges.

For investor information, visit https://investors.recruiter.com

Please follow social media channels for additional updates:

LinkedIn Recruiter Network Group: https://www.linkedin.com/groups/42370/
LinkedIn Company Page: https://www.linkedin.com/company/1240434
Twitter Company Page: https://twitter.com/recruiterdotcom
Facebook Company Page: https://www.facebook.com/RecruiterDotCom

Cautionary Note Regarding Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "predict," "forecast," "believe," "may," "estimate," "continue," "anticipates," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements primarily on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include continued demand for professional hiring, the accuracy of the Recruiter Index® survey, the economic environment, the impact of the COVID-19 pandemic on the job market and the economy as virus levels are again rising in many states, and the Risk Factors contained within our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2022. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statements publicly, whether as a result of new information, future developments, or otherwise, except as may be required by law.

Company Contact:

Corporate Communications
investors@recruiter.com

-Tables Follow-

Recruiter.com
Condensed Consolidated Balance Sheets

	June 30,		December 31,
	2023		2022
	(Unaudited)
ASSETS

Current assets:
Cash	$	442,456	$	946,804
Accounts receivable, net of allowance for doubtful accounts of $1,558,728 and $1,446,613, respectively		1,398,670		3,189,816
Prepaid expenses and other current assets		265,810		255,548

Total current assets		2,106,936		4,392,168

Property and equipment, net of accumulated depreciation of $29,724 and $17,210, respectively		48,825		61,340
Intangible assets, net		1,945,264		2,578,692
Goodwill		7,101,084		7,101,084

Total assets	$	11,202,109	$	14,133,284

Liabilities and Stockholders' Equity

Current liabilities:
Accounts payable	$	1,392,436	$	1,569,814
Accrued expenses		879,241		911,386
Accrued compensation		214,286		410,957
Accrued interest		175,515		81,576
Deferred payroll taxes		2,484		2,484
Other liabilities		386,805		17,333
Loans payable - current portion, net of discount		4,230,479		3,700,855
Refundable deposit on preferred stock purchase		285,000		285,000
Warrant liability for puttable warrants		600,000		600,000
Deferred revenue		174,591		215,219

Total current liabilities		8,340,837		7,794,624

Loans payable - long term portion		1,001,310		1,260,343

Total liabilities		9,342,147		9,054,967

Commitments and contingencies

Stockholders' Equity:
Preferred stock, Series D, $0.0001 par value; 2,000,000 shares authorized; 0 shares issued and outstanding as of June 30, 2022 and December 31, 2022, respectively		-		-
Preferred stock, Series E, $0.0001 par value; 775,000 shares authorized; 86,000 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively		9		9
Preferred stock, Series F, $0.0001 par value; 200,000 shares authorized; 0 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively		-		-
Common stock, $0.0001 par value; 100,000,000 shares authorized; 17,792,151 and 16,277,764 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively		1,780		1,629
Shares to be issued, 0 and 587,945 shares as of June 30, 2023 and December 31, 2022, respectively		-		59
Additional paid-in capital		75,913,399		74,332,161
Accumulated deficit		(74,055,226)		(69,255,541)
Total stockholders' equity		1,859,962		5,078,317

Total liabilities and stockholders' equity	$	11,202,109	$	14,133,284

Recruiter.com
Condensed Consolidated Statements of Operations
(Unaudited)

	Three		Three		Six		Six
	Months Ended		Months Ended		Months Ended		Months Ended
	June 30,2023		June 30, 2022		June 30,2023		June 30, 2022

Revenue	$	2,041,129	$	7,112,450	$	5,333,868	$	13,981,103
Cost of revenue		1,604,161		4,183,478		4,159,586		8,361,549

Gross Profit		436,968		2,928,972		1,174,282		5,619,554

Operating expenses:
Sales and marketing		79,453		158,040		236,036		276,796
Product development (including related party expense of $17,855, $0, $27,041, $16,771, and respectively)		84,282		89,473		326,562		682,859
Amortization of intangibles		325,702		917,239		633,428		1,925,712
General and administrative (including share-based compensation expense of $219,560, $669,047, $762,509 and $2,404,064, respectively, and related party expenses of $0, $0, $0 and $19,825, respectively)		886,579		4,097,397		3,720,704		9,193,101
Total operating expenses		1,376,016		5,262,149		4,916,730		12,078,468

Loss from Operations		(939,048)		(2,333,177)		(3,742,448)		(6,458,914)

Other income (expenses):
Interest expense		(647,213)		(64,491)		(1,161,369)		(131,906)
Other income (Expense)		754,312		3,713		756,099		14,527
Initial derivative expense		-		-		-		-
Finance cost		(327,073)		-		(327,073)		-
Gain on Settlement of Payables		178,749		-		178,749		-
Gain on debt extinguishment		-		1,205,195		-		1,205,195
Total other income (expenses)		(41,225)		1,144,417		(553,594)		1,087,816

Loss before income taxes		(980,273)		(1,188,760)		(4,296,042)		(5,371,098)
Provision for income taxes		-		-		-		-
Net Loss	$	(980,273)	$	(1,188,760)	$	(4,296,042)	$	(5,371,098)

Deemed dividends		-		-		(503,643)		-
Net loss attributable to common shareholders	$	(980,273)	$	(1,188,760)	$	(4,799,685)	$	(5,371,098)


Net loss per common share - basic and diluted	$	(0.06)	$	(0.08)	$	0.28	$	(0.36)
Weighted average common shares - basic and diluted		17,389,182		14,830,738		17,056,900		14,795,691

Recruiter.com
Condensed Consolidated Statements Of Cash Flows
(Unaudited)

	Six		Six
	June 30		June 30
	2023		2022
Cash Flows From Operating Activities
Net loss	$	(4,296,042)	$	(5,371,098)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense		645,943		1,926,194
Bad debt expense		200,000		363,702
Gain on debt extinguishment		-		(1,205,195)
Gain on Settlement of Payables		(178,749)		-
Equity based compensation expense		762,509		2,404,064
Warrant modification expense		-		152,244
Amortization of debt discount and debt costs		726,708		-
Change in fair value of earn-out liability		-		26,604
Factoring discount fee and interest		20,236		45,413
Changes in assets and liabilities:
Increase in accounts receivable		591,126		134,002
Decrease in accounts receivable - related parties		-		49,033
Increase (decrease) in prepaid expenses and other current assets		(10,262)		34,821
Increase in accounts payable and accrued liabilities		(133,506)		(357,932)
Decrease in accounts payable and accrued liabilities - related parties		-		(137,741)
Customer advances		-		426,136
(Decrease) increase in deferred revenue		(40,628)		(222,818)
Net cash used in operating activities		(1,712,665)		(1,732,571)

Cash Flows From Investing Activities:
Capitalized software development costs		-		(763,785)
Net cash used in investing activities		-		(763,785)

Cash Flows From Financing Activities:
Proceeds from ERC advances		450,000		-
Repayment of ERC advances		(80,528)		-
Payments of loans		(173,027)		(1,101,400)
Proceeds from factoring agreement		871,821		3,380,362
Repayments of factoring agreement		(175,127)		(653,008)
Gross roceeds from exercise of warrants		315,178		-
Net cash provided by financing activities		1,208,317		1,625,954

Net increase (decrease) in cash		(504,348)		(870,402)
Cash, beginning of period		946,804		2,584,062

Cash, end of period	$	442,456	$	1,713,660


Supplemental disclosures of cash flow information:
Cash paid during the period for interest	$	176,769	$	59,622
Cash paid during the period for income taxes	$	-	$	-

Supplemental schedule of non-cash investing and financing activities:
Accounts receivable owed under factoring agreement collected directly by factor	$	1,000,020	$	927,376
Purchase price measurement period adjustment to goodwill and accounts receivable	$	-	$	35,644
Deemed dividends	$	503,643	$	-
Offering costs as a result of modification of warrants to induce exercise	$	10,400	$	-

EBITDA is a non-GAAP financial measure and should not be considered as an alternative to net income, operating income, cash flow from operating activities, as a measure of liquidity or any other financial measures. It may not be indicative of the historical operating results of Recruiter.com Group, Inc. nor is it intended to be predictive of potential future results. Investors should not consider EBITDA in isolation or as a substitute for analysis of the company's results as reported under GAAP. A reconciliation of net income to EBITDA, the most comparable GAAP measure, can be found in the accompanying financial tables.

	Six months Ended June 30,
	2023		2022

Net Income (loss)	$	(4,296,042)	$	(5,371,098)
Interest expense and finance cost, net		1,161,369		131,906
Depreciation & amortization		645,943		1,926,194
EBITDA (loss)		(2,488,730)		(3,312,998)
Bad debt expense		200,000		363,702
Gain on Settlement of Payables		(178,749)		-
Stock-based compensation		762,509		2,404,064
Gain on debt extinguishment		-		(1,205,195)
Adjusted EBITDA (Loss)	$	(1,704,970)	$	(1,750,427)

	Three months Ended June 30,
	2023		2022

Net Income (loss)	$	(980,273)	$	(1,188,760)
Interest (income) expense and finance cost, net		647,213		64,491
Depreciation & amortization		331,959		917,431
EBITDA (loss)		(1,101)		(206,838)
Bad debt expense		-		345,202
Gain on Settlement of Payables		(178,749)		-
Stock-based compensation		219,560		669,047
Gain on debt extinguishment		-		(1,205,195)
Adjusted EBITDA (Loss)	$	39,710	$	(397,784)

SOURCE: Recruiter.com Group, Inc.

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Recruiter.com Announces Second Quarter 2023 Financial Results