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Description of Business
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12 Months Ended |
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Sep. 30, 2011
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| Description of Business [Abstract] | |
| Description of Business |
1. Description of Business
General Employment Enterprises, Inc. (the “Company”) provides staffing services through a network of branch offices located in major metropolitan areas throughout the United States. The Company's professional staffing services provide information technology, engineering and accounting professionals to clients on either a regular placement basis or a temporary contract basis. The Company's agricultural staffing services provide agricultural workers for farms and groves. The Company's industrial staffing business provides weekly temporary staffing for light industrial clients in Ohio and Pennsylvania. The Company's two largest customers represented approximately 17.4% and 11.5% of total revenues and $203,000 and $971,000 of accounts receivable in fiscal 2011 and 8.6 % and 8.3% of total revenues and $324,000 and $36,000 in accounts receivable in fiscal 2010, and no other customer accounted for more than 5% of net revenues during either year.
In recent years the Company has incurred significant losses and negative cash flows from operations. Management has implemented a strategy which included cost reduction efforts as well as identifying strategic acquisitions, financed primarily through the issuance of stock, to improve the overall profitability and cash flows of the Company. In addition, in December 2010, the Company entered into an account purchase agreement with Wells Fargo Business Credit to provide working capital financing. The account purchase agreement allows Wells Fargo to advance the Company funds on accounts receivable at its sole discretion. In the event Wells Fargo elects not to advance us funds on our accounts receivable balance or the performance of the acquired entities does not meet our expectations, the Company could experience liquidity constraints.
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