Wed, 29 Nov 2023

  • Achieves Significant Reduction in Net Loss through Cost Management
  • Continues Progress toward Proposed Strategic Transactions with GoLogiq and Job Mobz

NEW YORK, NY / ACCESSWIRE / November 20, 2023 / Group, Inc. (NASDAQ:RCRT)(NASDAQ:RCRTW) ('' or the 'Company'), a provider of on-demand recruiting solutions, today announced its financial results for the third quarter ended September 30, 2023.

Miles Jennings, CEO of, commented on the quarter, 'Q3 2023 was a period of profound transition and strategic reorganization for our company. Despite facing a challenging landscape, we have made strides in aligning our operations with high-margin technology solutions. Our focused efforts on streamlining operations have led to an 82% reduction in net loss compared to the previous year period.'

'We also continued progress on our strategic transactions, closing on the sale of our healthcare staffing business to Futuris, and making progress toward the sale of certain intellectual property to Job Mobz and expanding into financial technology ('Fintech') through an acquisition from GoLogiq. This quarter reflects our ongoing commitment to evolving our business model and building back value for our shareholders.'

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

  • Revenue: Revenue for the third quarter totaled $183,722, excluding $1.09 million from discontinued operations, compared to $5.78 million in the third quarter of 2022. This decline primarily reflected the Company's ongoing strategic shifts, including the transfer of Recruiter On Demand revenue clients to Job Mobz and market challenges.
  • Gross Profit: Gross profit (loss) for the third quarter was ($68,169), excluding $277,578 from discontinued operations, compared to gross profit of $1.89 million in the third quarter of 2022. The decrease was due to lower total revenue following strategic realignments.
  • Total Operating Expenses: Operating expenses for the third quarter were $2.03 million, compared to operating expenses of $7.60 million in the third quarter of 2022. This decrease was due primarily to focused cost control efforts and the streamlining of operations.
  • Net Loss: Net loss for the third quarter was $1.03 million, including $276,529 of net income from discontinued operations, demonstrating an improvement compared to a net loss of $5.63 million in the third quarter of 2022. The reduced net loss for Q3 2023 reflected the effective implementation of cost-saving measures and strategic realignments.
  • Liquidity and Capital Resources: On September 30, 2023, had $296 thousand in cash and cash equivalents, accounts receivable, net, of $71,615, and current assets from discontinued operations of $2.04 million. There were 1,433,903 common shares outstanding at quarter-end.

Strategic Developments's third quarter was characterized by key strategic decisions and a continued focus on technology-driven solutions.

  • Divestiture of Healthcare Staffing Business to Futuris: Completing this transaction allows to concentrate further on strategic transactions and AI-centric solutions.
  • Acquisition of GoLogiq Assets: The proposed acquisition of select assets of GoLogiq is expected to pivot the company to a Fintech focus while spinning out recruiting and AI-related assets.
  • Sale of IP to Job Mobz: This strategic move is expected to strengthen the Company's balance sheet.
  • Ongoing Negotiations with Debt Holders: As set forth in the Company's recent Form 8-K that was filed on November 9, the Company is in default on certain debt obligations. The Company continues negotiating with its debt holders as part of its financial strategy.

Looking Forward

Jennings concluded, 'While we recognize the challenges presented by the substantial decrease in revenue and debt negotiations, we are encouraged by the improvement in our net loss and the effective cost-control measures implemented. Our focus remains now on stabilizing and growing high-margin, technology-led revenue streams while moving to complete our strategic transactions with GoLogiq and Job Mobz. As we navigate these changes, we are optimistic about the future and are committed to driving success for the Company and our shareholders.'

About Group, Inc. 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, helps businesses solve today's complex hiring challenges.

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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. [With respect to the proposed GoLogiq transaction, factors that may cause actual future events to differ materially from the excepted results include, but are not limited to: (i) the risk that the merger between and GoLogiq SPV (or similarly formed subsidiary to effectuate the transaction) may not be completed in a timely manner or at all, which may adversely affect the price of the securities of, (ii) the failure to satisfy the conditions to the consummation of the transaction, including the adoption of the Agreement by the stockholders of and GoLogiq's, (iii) the occurrence of any event, change or other circumstance that could give rise to the termination of the Agreement, (iv) the receipt of an unsolicited offer from another party for an alternative transaction that could interfere with the Merger, (v) the effect of the announcement or pendency of the transaction on GoLogiq's business relationships, performance, and business generally, (vi) the inability to recognize the anticipated benefits of the Merger, which may be affected by, among other things, competition and the ability of the post-Merger company to grow and manage growth profitability and retain its key employees, (vii) costs related to the Merger, (viii) the outcome of any legal proceedings that may be instituted against and GoLogiq following the announcement of the proposed merger, (ix) the ability to maintain the listing of's securities on Nasdaq, (x) the ability to implement business plans, forecasts, and other expectations after the completion of the Merger, and identify and realize additional opportunities, (xi) the risk of downturns and the possibility of rapid change in the highly competitive industry in which GoLogiq operates, (xii) the risk that GoLogiq may not sustain profitability, (xiii) the risk that GoLogiq may need to raise additional capital to execute its business plan, which many not be available on acceptable terms or at all, (xiii) the risk that third-party suppliers and manufacturers are not able to fully and timely meet their obligations, (xiv) the risk of product liability or regulatory lawsuits or proceedings relating to the products and services of GoLogiq, (xv) the risk that GoLogiq is unable to secure or protect its intellectual property, (xvi) the risk that the securities of the post-Merger company will not be approved for listing on Nasdaq or if approved, maintain the listing, and (xvii) other risks and uncertainties indicated in the filings that are made from time to time with the SEC by (including those under the 'Risk Factors' sections therein). The foregoing list of factors is not exhaustive. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and and GoLogiq assume no obligation and do not intend, to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.] 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.

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Corporate Communications

-Tables Follow- Group, Inc. and Subsidiaries
Consolidated Balance Sheets Group, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Three and Nine Months ended September 30, 2022 and 2023
(Unaudited) Group, Inc. and Subsidiaries
Consolidated Statement of Changes in Stockholders' Equity
For the Three and Nine Months ended September 30, 2023 and 2022
(Unaudited) Group, Inc. and Subsidiaries
Condensed Consolidated Statements Of Cash Flows
For the Nine Months ended September 30, 2023 and 2022

SOURCE: Group, Inc.

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