Professional Diversity Network Reports Q2 2024 Results

TL;DR

PDN revenue up YOY, net income positive for H1 2024 after losses.

AI Summary

Professional Diversity Network, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported total revenue of $12,741,809 for the six months ended June 30, 2024, a slight increase from $11,452,532 in the same period of 2023. Net income for the first six months of 2024 was $524, compared to a net loss in the prior year period. The company's primary revenue streams are Membership Fees and Related Services, and Recruitment Services.

Why It Matters

This filing provides insight into the financial performance of Professional Diversity Network, Inc. during the second quarter of 2024, indicating a potential shift towards profitability.

Risk Assessment

Risk Level: medium — The company has a history of net losses, and while H1 2024 shows improvement, continued profitability is not guaranteed.

Key Numbers

• $12.74M — Total Revenue (H1 2024) (Represents an increase from the prior year period.)
• $11.45M — Total Revenue (H1 2023) (Previous period's revenue for comparison.)
• $524 — Net Income (H1 2024) (Indicates a move towards profitability.)
• 45,000,000 — Shares Outstanding (Indicates the total number of shares available.)

Key Players & Entities

• Professional Diversity Network, Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of reporting period
• $12,741,809 (dollar_amount) — Total revenue for the six months ended June 30, 2024
• $11,452,532 (dollar_amount) — Total revenue for the six months ended June 30, 2023
• $524 (dollar_amount) — Net income for the six months ended June 30, 2024

FAQ

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value per share The Nasdaq Stock

Filing Documents

• ipdn20240630_10q.htm (10-Q) — 1530KB
• ex_686342.htm (EX-31.1) — 8KB
• ex_686343.htm (EX-31.2) — 8KB
• ex_686344.htm (EX-32.1) — 6KB
• 0001437749-24-026313.txt ( ) — 6826KB
• ipdn-20240630.xsd (EX-101.SCH) — 47KB
• ipdn-20240630_cal.xml (EX-101.CAL) — 38KB
• ipdn-20240630_def.xml (EX-101.DEF) — 340KB
• ipdn-20240630_lab.xml (EX-101.LAB) — 291KB
• ipdn-20240630_pre.xml (EX-101.PRE) — 372KB
• ipdn20240630_10q_htm.xml (XML) — 1278KB

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS 3

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 23

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 38

CONTROLS AND PROCEDURES

ITEM 4 CONTROLS AND PROCEDURES 38 PART II

LEGAL PROCEEDINGS

ITEM 1 LEGAL PROCEEDINGS 39

RISK FACTORS

ITEM 1A RISK FACTORS 39

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 39

DEFAULTS UPON SENIOR SECURITIES

ITEM 3 DEFAULTS UPON SENIOR SECURITIES 39

MINE SAFETY DISCLOUSRES

ITEM 4 MINE SAFETY DISCLOUSRES 39

OTHER INFORMATION

ITEM 5 OTHER INFORMATION 39

EXHIBITS

ITEM 6 EXHIBITS 40 2 Table of Contents

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS Professional Diversity Network, Inc. and Subsidiaries CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, 2024 December 31, 2023 (Unaudited) Current Assets: Cash and cash equivalents $ 619,311 $ 627,641 Accounts receivable, net 832,213 1,134,067 Other receivables 50,977 50,000 Prepaid expense and other current assets 535,255 556,698 Total current assets 2,037,756 2,368,406 Property and equipment, net 35,706 42,043 Capitalized technology, net 289,930 186,103 Goodwill 1,417,753 1,417,753 Intangible assets, net 170,660 225,848 Right-of-use assets 263,237 298,485 Security deposits 49,755 66,340 Long-term restricted cash 184,055 184,055 Other assets 1,350,000 1,537,499 Total assets $ 5,798,852 $ 6,326,532 Current Liabilities: Accounts payable $ 585,906 $ 524,854 Accrued expenses 824,555 867,884 Deferred revenue 2,055,784 1,999,841 Lease liability, current portion 83,877 82,652 Total current liabilities 3,550,122 3,475,231 Lease liability, non-current portion 239,585 283,060 Total liabilities 3,789,707 3,758,291 Commitments and contingencies - - Stockholders' Equity Common stock, $ 0.01 par value; 45,000,000 shares authorized, 12,741,809 and 11,452,532 shares issued as of June 30, 2024 and December 31, 2023, and 12,741,285 and 11,452,008 shares outstanding as of June 30, 2024 and December 31, 2023. 127,413 114,520 Additional paid in capital 103,612,740 102,873,474 Accumulated deficit ( 101,247,697 ) ( 99,902,718 ) Treasury stock, at cost; 524 and 524 shares at June 30, 2024 and December 31, 2023 ( 37,117 ) ( 37,117 ) Total Professional Diversity Network, Inc. stockholders' equity 2,455,339 3,048,159 Noncontrolling interest ( 446,194 ) ( 479,918 ) Total stockholders' equity 2,009,145 2,568,241 Total liabilities and stockholders' equity $ 5,798,852 $ 6,326,532 The accompanying notes are an integral part of these consolidated financial statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Basis of Presentation and Description of Business The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The accompanying consolidated financial statements include all adjustments, which consist of normal recurring adjustments and transactions or events discretely impacting the interim periods, considered necessary by management to fairly state our results of operations, financial position and cash flows. The operating results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2023 Form 10 -K. Professional Diversity Network, Inc. ("the Company", "PDN, Inc.", "we," "our," or "us,") is both the operator of the Professional Diversity Network (the "PDN Network," or the "Professional Diversity Network") and a holding company for NAPW, Inc., a wholly-owned subsidiary of the Company and the operator of the National Association of Professional Women (the "NAPW Network" or "NAPW"). The PDN Network operates online professional networking communities with career resources specifically tailored to the needs of different diverse cultural groups including: Women, Hispanic-Americans, African-Americans, Asian-Americans, persons with disabilities, Military Professionals, Lesbians, Gay, Bisexual, Transgender and Queer (LGBTQ+), as well as face-to-face and virtual recruiting events for Engineering, Technology and Security Clearance positio

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View this 10-Q filing on SEC EDGAR