· |
Noble Voice lead generation segment revenue grew 13.3% to $1,605,000 compared to second quarter of 2016
|
· |
New China Education and Training segment generated revenue of $505,000
|
· |
Women’s networking in China started with first International Association of Women (“IAW”) marketing event held near the end of second quarter of 2017
|
Professional Diversity Network, Inc.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
June 30,
|
December 31,
|
||||||
|
2017
|
2016
|
||||||
|
(Unaudited)
|
|||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
4,951,849
|
$
|
6,068,973
|
||||
Accounts receivable, net
|
2,130,885
|
2,170,529
|
||||||
Incremental direct costs
|
332,780
|
423,023
|
||||||
Prepaid expenses and other current assets
|
712,427
|
957,140
|
||||||
Total current assets
|
8,127,941
|
9,619,665
|
||||||
|
||||||||
Property and equipment, net
|
242,270
|
277,534
|
||||||
Capitalized technology, net
|
130,753
|
173,368
|
||||||
Goodwill
|
10,280,885
|
20,201,190
|
||||||
Intangible assets, net
|
7,749,239
|
9,183,439
|
||||||
Merchant reserve
|
780,849
|
1,426,927
|
||||||
Security deposits
|
213,931
|
220,754
|
||||||
Other assets
|
-
|
35,000
|
||||||
Total assets
|
$
|
27,525,868
|
$
|
41,137,877
|
||||
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable
|
$
|
1,520,274
|
$
|
2,172,332
|
||||
Accrued expenses
|
1,245,827
|
962,172
|
||||||
Deferred revenue
|
4,849,619
|
5,485,599
|
||||||
Customer deposits
|
185,179
|
-
|
||||||
Total current liabilities
|
7,800,899
|
8,620,103
|
||||||
|
||||||||
Deferred tax liability
|
2,662,927
|
3,653,274
|
||||||
Deferred rent
|
50,318
|
55,718
|
||||||
Other liabilities
|
4,743
|
33,159
|
||||||
Total liabilities
|
10,518,887
|
12,362,254
|
||||||
|
||||||||
Commitments and contingencies
|
||||||||
|
||||||||
Stockholders' Equity
|
||||||||
Common stock, $0.01 par value; 45,000,000 shares authorized; 3,934,616 shares and 3,623,899
shares issued as of June 30, 2017 and December 31, 2016, respectively; and 3,931,838 shares and 3,619,338 shares outstanding as of June 30, 2017 and December 31, 2016, respectively |
39,329
|
36,204
|
||||||
Additional paid in capital
|
79,637,909
|
76,234,772
|
||||||
Accumulated other comprehensive loss
|
1,621
|
-
|
||||||
Accumulated deficit
|
(62,634,761
|
)
|
(47,458,236
|
)
|
||||
Treasury stock, at cost; 1,048 shares at June 30, 2017 and December 31, 2016
|
(37,117
|
)
|
(37,117
|
)
|
||||
Total stockholders' equity
|
17,006,981
|
28,775,623
|
||||||
|
||||||||
Total liabilities and stockholders' equity
|
$
|
27,525,868
|
$
|
41,137,877
|
Professional Diversity Network, Inc.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited)
|
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||
|
2017
|
2016
|
2017
|
2016
|
||||||||||||
|
||||||||||||||||
Revenues:
|
||||||||||||||||
Membership fees and related services
|
$
|
2,444,797
|
$
|
4,259,144
|
$
|
5,260,293
|
$
|
9,299,318
|
||||||||
Lead generation
|
1,604,767
|
1,415,958
|
3,328,934
|
2,935,549
|
||||||||||||
Recruitment services
|
624,103
|
717,360
|
1,282,647
|
1,340,669
|
||||||||||||
Product sales and other
|
26,573
|
404,590
|
72,941
|
491,583
|
||||||||||||
Education and training
|
505,490
|
-
|
829,694
|
-
|
||||||||||||
Consumer advertising and marketing
solutions |
58,327
|
53,976
|
124,029
|
127,052
|
||||||||||||
Total revenues
|
5,264,057
|
6,851,028
|
10,898,538
|
14,194,171
|
||||||||||||
|
||||||||||||||||
Costs and expenses:
|
||||||||||||||||
Cost of revenues
|
834,281
|
803,646
|
1,534,927
|
1,688,391
|
||||||||||||
Sales and marketing
|
2,584,426
|
3,428,115
|
5,839,323
|
7,249,691
|
||||||||||||
General and administrative
|
3,551,163
|
2,749,214
|
8,085,665
|
5,917,631
|
||||||||||||
Litigation settlement
|
-
|
-
|
-
|
500,000
|
||||||||||||
Goodwill impairment charge
|
9,920,305
|
-
|
9,920,305
|
-
|
||||||||||||
Depreciation and amortization
|
800,783
|
811,232
|
1,636,613
|
1,678,242
|
||||||||||||
Total costs and expenses
|
17,690,958
|
7,792,207
|
27,016,833
|
17,033,955
|
||||||||||||
|
||||||||||||||||
Loss from operations
|
(12,426,901
|
)
|
(941,179
|
)
|
(16,118,295
|
)
|
(2,839,784
|
)
|
||||||||
|
||||||||||||||||
Other (expense) income
|
||||||||||||||||
Interest expense
|
-
|
(778
|
)
|
(12,399
|
)
|
(1,167
|
)
|
|||||||||
Interest and other income
|
2,851
|
(481
|
)
|
5,101
|
651
|
|||||||||||
Other finance income
|
4,088
|
-
|
1,764
|
-
|
||||||||||||
Other (expense) income, net
|
6,939
|
(1,259
|
)
|
(5,534
|
)
|
(516
|
)
|
|||||||||
|
||||||||||||||||
Loss before income tax benefit
|
(12,419,962
|
)
|
(942,438
|
)
|
(16,123,829
|
)
|
(2,840,300
|
)
|
||||||||
Income tax benefit
|
(345,018
|
)
|
(136,169
|
)
|
(947,304
|
)
|
(594,393
|
)
|
||||||||
Net loss
|
(12,074,944
|
)
|
(806,269
|
)
|
(15,176,525
|
)
|
(2,245,907
|
)
|
||||||||
|
||||||||||||||||
Other comprehensive loss:
|
||||||||||||||||
Foreign currency translation
adjustment |
1,733
|
-
|
1,621
|
-
|
||||||||||||
Comprehensive loss
|
$
|
(12,073,211
|
)
|
$
|
(806,269
|
)
|
$
|
(15,174,904
|
)
|
$
|
(2,245,907
|
)
|
||||
|
||||||||||||||||
Net loss per common share, basic and diluted
|
$
|
(3.07
|
)
|
$
|
(0.45
|
)
|
$
|
(3.89
|
)
|
$
|
(1.24
|
)
|
||||
|
||||||||||||||||
Weighted average shares used in computing net
loss per common share: |
||||||||||||||||
Basic and diluted
|
3,932,886
|
1,808,314
|
3,901,809
|
1,808,314
|
||||||||||||
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2017
|
2016
|
2017
|
2016
|
||||||||||||
(in thousands)
|
||||||||||||||||
Net loss
|
$
|
(12,075
|
)
|
$
|
(806
|
)
|
$
|
(15,177
|
)
|
$
|
(2,246
|
)
|
||||
Stock-based compensation expense
|
70
|
43
|
585
|
100
|
||||||||||||
Depreciation and amortization
|
801
|
811
|
1,637
|
1,678
|
||||||||||||
Litigation settlement
|
-
|
-
|
-
|
500
|
||||||||||||
Gain on lease cancellation
|
-
|
(424
|
)
|
-
|
(424
|
)
|
||||||||||
Goodwill impairment charge
|
9,920
|
-
|
9,920
|
-
|
||||||||||||
Interest expense
|
-
|
1
|
12
|
1
|
||||||||||||
Interest and other income
|
(3
|
)
|
-
|
(5
|
)
|
(1
|
)
|
|||||||||
Income tax benefit
|
(345
|
)
|
(136
|
)
|
(947
|
)
|
(594
|
)
|
||||||||
Adjusted EBITDA
|
$
|
(1,632
|
)
|
$
|
(511
|
)
|
$
|
(3,975
|
)
|
$
|
(986
|
)
|