Revenue for the three and nine month periods ending September 30, 2019 totaled $1,945,744 and $4,081,527 respectively

Network of independent recruiters increased 12% sequentially from 10,034 in Q2 to 11,279 in Q3

HOUSTON, Nov. 21, 2019 (GLOBE NEWSWIRE) -- Recruiter.com Group, Inc. (“Recruiter.com” or the “Company”) (OTCQB: RCRT), the expert network platform for recruiters, provides shareholder update and reported its financial results for the three and nine month periods ending September 30, 2019.

Recruiter.com CEO, Miles Jennings, commented, "After two quarters of integration and process efforts, we are now extremely excited to shift focus to accelerating our revenue expansion with top name clients and executing against our business model. We are confident in our vision of disrupting the recruiting and staffing industry by aggregating small and independent recruiters under a common platform, giving them access to large enterprise companies and technologies and becoming the largest recruiting firm in the world. We are primarily focused on onboarding several new key strategic clients and improving our communication and engagement with our independent recruiter network. We are simultaneously engaged in our strategic efforts to position Recruiter.com for an uplisting to a national securities exchange.”

The network of independent recruiters increased over 12% sequentially from 10,034 users at the end of the 2019 second quarter to 11,279 users at the end of the 2019 third quarter. Information Technology and Computer Software remained the most popular specialties and industries among the community of recruiters.

Financial Highlights for the Three and Nine Month Periods Ending September 30, 2019:

• Revenue for the 2019 third quarter totaled $1,945,744, as compared to $158,706 for the same period the year prior, an increase of $1,787,038.
• Revenue for the first nine months of 2019 totaled $4,081,527, as compared to $687,538 for the same period the year prior, an increase of $3,393,989.
• Revenue growth year-over-year during both periods was primarily attributable to the Recruiting Solutions line of business, acquired from Genesys Talent, LLC in March 2019, as the Company invested resources in its recruiting platform business and away from Career and Marketing Solutions.
• Gross profit for the 2019 third quarter totaled $453,939 compared to $510,559 in the 2019 second quarter due to growth within a lower margin enterprise client and the Company’s general shift away from Marketing Solutions, yielding gross profit margin of 23.3% compared 25.9% in the 2019 second quarter.
• Gross profit for the first nine months of 2019 totaled $1,127,800 yielding gross profit margin of 27.6%.
• With $2,404,642 in Operating Expenses, the Company generated an overall Net Loss of $1,028,034 for the quarter. Net Loss included a $1,411,565 share-based compensation expense and a $951,271 positive change in fair value of the derivative liability, resulting from a decrease in the market value of the Company’s common stock, both of which are non-cash items.

Operational Highlights:

• Signing a major Fortune 50 customer and multiple additional mid-market customers.
• Accelerating independent recruiter network growth by 12% versus 8% in the second quarter.
• Rolled out “Team Management” on the Recruiter.com platform to support our 15+ independent recruiting teams.
• Continued the technical integration with Censia, an AI platform for talent identification.

Recruiter.com has completed the integration of the business, systems, and team following the acquisition of certain assets of Genesys Talent, LLC in the second quarter of 2019. The assets acquired, primarily client lists and book of business, successfully held their value and sales from its recruiting clients rose slightly in the 2019 third quarter. The acquisition is expected to continue to drive revenue growth in subsequent quarters, as further opportunities are unlocked through the marketing and technology capabilities of Recruiter.com. The Company plans to continue to look for accretive acquisition opportunities in the recruiting and RPO space.

About Recruiter.com Group, Inc.
Recruiter.com Group, Inc., the expert network platform for recruiters, pairs enterprises with the most extensive network of recruiters to drive the hiring of top talent faster and smarter. Recruiter.com offers recruiters SHRM-certified recruitment training and independent earning opportunities. Recruiter.com was voted “Top Tech Company to Watch” by the CT Tech Council, cited as one of the “Top 35 Most Influential Career Sites” by Forbes, and listed by Inc. as one of the “9 Best Websites for Finding Top Talent.”

Please visit https://www.recruiter.com or the following social media channels for more information.

LinkedIn Recruiter Network Group: https://www.linkedin.com/groups/42370/
LinkedIn Company Page: https://www.linkedin.com/company/1240434     
Twitter Company Page: https://twitter.com/recruiterdotcom
Facebook Company Page: https://www.facebook.com/RecruiterDotCom

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, including statements regarding the expected future revenue growth and its drivers.  The words "believe," "may," "estimate," "continue," "anticipate," "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 largely 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 the ability of our technology to perform to function as expected, our ability to hire qualified professionals, our ability to successfully integrate businesses, teams, and technology, product marketing, and community management functions, continued demand for professional hiring, our ability to obtain additional financing,, 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 March 31, 2018. 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 publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Recruiter.com Contact:
Recruiter.com Group, Inc.             
Phone: (855) 931-1500                  

Investor Contact:
KCSA Strategic Communications
Valter Pinto, Managing Director
Phone: (212) 896-1254
Valter@KCSA.com

Recruiter.com Group, Inc.
Consolidated Balance Sheets

		September 30,				December 31,
		2019				2018
		(Unaudited)
Assets
Current assets:
Cash		$	675,735			$	14,152
Accounts receivable, net			634,263				56,766
Accounts receivable – related party			22,200				-
Prepaid expenses and other current assets			162,045				14,883
Investments - available for sale marketable securities			85,360				33,917
Total current assets			1,579,603				119,718
Property and equipment, net of accumulated depreciation of $385			3,078				-
Right of use asset			232,366				-
Intangible assets			8,521,906				-
Software development			113,020				101,520
Total assets		$	10,449,973			$	221,238
Liabilities and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable		$	602,990			$	222,266
Accounts payable – related parties			860,717				-
Accrued expenses			8,355				100,265
Accrued compensation			258,825				248,398
Accrued interest			-				179,768
Loans payable - current portion			25,521				105,028
Convertible notes payable			-				55,000
Convertible notes payable - related parties			-				200,000
Notes payable, net of unamortized discount of $0 and $3,056, respectively			-				151,944
Notes payable - related parties			-				150,000
Refundable deposit on preferred stock purchase			285,000				-
Warrant derivative liability			781,748				-
Lease liability - current portion			73,378				-
Deferred revenue			104,924				59,468
Total current liabilities			3,001,458				1,472,137
Lease liability - long term portion			158,988				-
Loans payable - long term portion			84,538				103,806
Total liabilities			3,244,984				1,575,943
Commitments and contingencies (Note 10)
Redeemable Preferred Stock of Subsidiary - Noncontrolling interest at redemption value (See Note 8 for liquidation value)			-				2,059,764
Stockholders’ Equity (Deficit):
Preferred stock, 10,000,000 shares authorized, $0.0001 par value: undesignated: 7,013,600 and 6,704,061 shares authorized; no shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively			-				-
Preferred stock, Series D, $0.0001 par value; 2,000,000 and no shares authorized; 454,546 and no shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively			46				-
Preferred stock, Series E, $0.0001 par value; 775,000 shares authorized; 775,000 and 775,000 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively			78				78
Preferred stock, Series F, $0.0001 par value; 200,000 and no shares authorized; 200,000 and no shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively			20				-
Common stock, $0.0001 par value; 31,250,000 shares authorized; 2,366,581 and no shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively			237				-
Additional paid-in capital			16,539,628				679,259
Accumulated deficit			(9,335,020	)			(5,675,391	)
Stockholders’ equity attributable to Recruiter.com, Inc. common shareholders			7,204,989				(4,996,054	)
Stockholders’ equity attributable to the noncontrolling interest			-				1,581,585
Total stockholders’ equity (deficit)			7,204,989				(3,414,469	)
Total liabilities and stockholders’ equity (deficit)		$	10,449,973			$	221,238

  

Recruiter.com Group, Inc.
 Condensed Consolidated Statements of Operations
(Unaudited)
  

		Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
		September 30, 2019				September 30, 2018				September 30, 2019				September 30, 2018
Revenue		$	1,945,744			$	158,706			$	4,081,527			$	687,538
Cost of revenue (including related party costs of $657,196, $0, $1,451,331 and $0, respectively)			1,491,805				-				2,953,727				-
Gross profit			453,939				158,706				1,127,800				687,538
Operating expenses:
Sales and marketing			63,423				4,205				66,392				13,619
Product development			47,728				50,690				142,516				227,563
General and administrative (including share based compensation expense of $1,411,565, $45,928, $2,979,592 and $136,956, respectively)			2,293,491				398,199				5,366,751				1,264,329
Total operating expenses			2,404,642				453,094				5,575,659				1,505,511
Loss from operations			(1,950,703	)			(294,388	)			(4,447,859	)			(817,973	)
Other income (expenses):
Interest expense			(10,165	)			(32,570	)			(91,530	)			(104,208	)
Change in fair value of derivative liability			951,271				-				968,898				-
Net recognized (loss) gain on marketable securities			(18,437	)			10,000				(119,854	)			(60,125	)
Total other income (expenses)			922,669				(22,570	)			757,514				(164,333	)
Loss before income taxes			(1,028,034	)			(316,958	)			(3,690,345	)			(982,306	)
Provision for income taxes			-				-				-				-
Net loss			(1,028,034	)			(316,958	)			(3,690,345	)			(982,306	)
Net loss attributable to the noncontrolling interest			-				(17,799	)			(30,716	)			(37,697	)
Net loss attributable to the controlling interest before preferred stock dividends			(1,028,034	)			(299,159	)			(3,659,629	)			(944,609	)
Preferred stock dividend			-				(144,110	)			(140,410	)			(1,004,062	)
Net loss attributable to Recruiter.com Group, Inc. shareholders		$	(1,028,034	)		$	(443,269	)		$	(3,800,039	)		$	(1,948,671	)
Net loss per common share – basic and diluted		$	(0.56	)		$	-			$	(3.11	)		$	-
Weighted average common shares – basic and diluted			1,837,150				-				1,221,649				-

Recruiter.com Group, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)

		Nine Months Ended				Nine Months Ended
		September 30, 2019				September 30, 2018
Cash Flows from Operating Activities
Net loss		$	(3,690,345	)		$	(982,306	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation expense			385
Bad debt expense			16,000				-
Equity based compensation expense			2,979,592				136,956
Recognized loss on marketable securities			119,854				60,125
Expenses paid through financings			15,000				-
Amortization of debt discount			32,522				-
Change in fair value of derivative liability			(968,898	)			-
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable			140,912				20,317
Increase in prepaid expenses			(147,162	)			(10,433	)
Increase in accounts payable and accrued liabilities			916,400				155,746
(Decrease) increase in deferred revenue			(17,644	)			7,242
Net cash used in operating activities			(603,384	)			(612,353	)
Cash Flows from Investing Activities
Proceeds from sale of marketable securities			68,703				284
Cash paid for equipment			(3,463	)			-
Cash paid for software development			(11,500	)			(51,750	)
Net cash provided (used) by investing activities			53,740				(51,466	)
Cash Flows from Financing Activities
Proceeds from notes			45,005				-
Payments of notes			(98,775	)			(1,499	)
Deposit on purchase of preferred stock			500,000				-
Repayment of deposit on purchase of preferred stock			(215,000	)			-
Contributions to capital			-				30,000
Proceeds from sale of common stock			-				66,668
Proceeds from sale of preferred stock			979,997				300,000
Net cash provided by financing activities			1,211,227				395,169
Net increase (decrease) in cash			661,583				(268,650	)
Cash, beginning of period			14,152				378,149
Cash, end of period		$	675,735			$	109,499
Supplemental disclosures of cash flow information:
Cash paid during the period for interest		$	35,035			$	38,208
Cash paid during the period for income taxes		$	-			$	-
Supplemental schedule of non-cash investing and financing activities:
Preferred stock issued for asset acquisition		$	8,600,000			$	-
Subsidiary preferred shares converted to subsidiary common shares		$	-			$	154,000
Non-cash adjustments to Redeemable Preferred Stock of subsidiary		$	2,059,764			$	925,794
Notes payable and accrued interest exchanged for preferred stock		$	116,380			$	-
Accounts payable paid through proceeds of preferred stock		$	100,000			$	-
Accrued compensation paid with common stock		$	56,250			$	-
Value of warrant issued with note		$	42,000			$	-
Accounts payable paid through proceeds of note		$	4,995			$	-
Warrant derivative liability at inception		$	1,750,646			$	-
Accrued compensation forgiven and credited to contributed capital		$	187,500			$	-
Marketable securities received as payment for Series D preferred stock		$	240,000			$	-
Note and accrued interest forgiven		$	706,502			$	-