Quarterly report [Sections 13 or 15(d)]

Segment Data

v3.26.1
Segment Data
 6 Months Ended
Mar. 31, 2026
Segment Data

17. Segment Data

 

The Company provides the following distinctive services: (a) direct hire placement services and (b) temporary professional staffing services in the fields of information technology, accounting, finance and office, engineering, and medical. These services make up the Company’s Professional Segment. As disclosed in Note 3, the Company’s former Industrial Segment has been designated a discontinued operation and sold and, as such, is excluded from the table below which only reflects continuing operations.

 

Our consolidated results, as well as the results of the Professional Segment are assessed by the Company’s chief operating decision-maker (“CODM”), our CEO, who decides how to allocate resources based on operating needs and results. The CODM uses financial and operating information presented in periodic detailed financial statements and management reports and considers growth trends in revenues, gross profits and gross margins, operating expenses, income (loss) from operations, net income (loss) from operations and related data to compare the segment’s current results with budgeted and prior period results, as well as those of competitors obtained from publicly available information as benchmarks. Additionally, the CODM reviews trends in non-financial information including headcount, numbers of contractors on billing, billable hours, and fee rates and spreads applied in billings to clients. The CODM also reviews certain non-GAAP financial measures of segment performance including earnings before income taxes, depreciations and amortization (“EBITDA”), free cash flow and other variants of these non-GAAP measures in order to make informative decisions regarding allocation of resources. This information and underlying analyses provide the CODM with information necessary to make decisions on business and financial strategy and plans, working capital needs and overall capital use. All corporate assets such as cash and other assets are presented together with those of the Professional Segment; these can be found on the unaudited condensed consolidated balance sheets.

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

March 31,

 

 

March 31,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

 $ 19,481

 

 

 $ 24,495

 

 

 $ 39,997

 

 

 $ 48,520

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of contract services

 

 

 12,066

 

 

 

 16,135

 

 

 

 25,177

 

 

 

 32,234

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel expenses

 

 

 4,890

 

 

 

 5,907

 

 

 

 9,873

 

 

 

 11,168

 

Occupancy expenses

 

 

 353

 

 

 

 422

 

 

 

 705

 

 

 

 888

 

Advertising expenses

 

 

 309

 

 

 

 466

 

 

 

 625

 

 

 

 924

 

Other segment expenses (a)

 

 

 533

 

 

 

 899

 

 

 

 1,077

 

 

 

 1,721

 

Corporate expenses allocated

 

 

 908

 

 

 

 744

 

 

 

 1,873

 

 

 

 1,561

 

Depreciation and amortization

 

 

 43

 

 

 

 253

 

 

 

 128

 

 

 

 490

 

Goodwill impairment charges

 

 

 -

 

 

 

 22,000

 

 

 

 -

 

 

 

 22,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Professional Segment income (loss) from operations

 

 $ 379

 

 

 $ (22,331 )

 

 $ 539

 

 

 $ (22,466 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate SG&A (b)

 

 

 414

 

 

 

 867

 

 

 

 962

 

 

 

 1,482

 

Depreciation and amortization

 

 

 22

 

 

 

 22

 

 

 

 43

 

 

 

 45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 $ (57 )

 

 $ (23,220 )

 

 $ (466 )

 

 $ (23,993 )

 

 

(a)

Other segment expenses mainly consist of consulting expenses, business insurance and licensing fees, applicant tracking systems and other software subscriptions, equipment-related costs, and background checks for candidates placed with clients.

 

(b)

Corporate selling, general, and administrative expenses (“SG&A”) primarily includes certain executive and administrative salaries and related expenses, corporate legal expenses, share-based compensation expenses, consulting expenses, audit fees, corporate rent and facility costs, board related fees, certain advertising and promotional expenses, and acquisition, integration and restructuring expenses.