Mon, Jul 15, 10:01 AM (54 days ago)
Staffing 360 Solutions, Inc. reported a decrease in revenue by 13% to $41,444 for the quarter ended March 30, 2024, compared to $47,624 for the same period in 2023. The decline is attributed to a challenging U.S. operating environment, particularly impacting the Commercial Staffing segment. Gross profit margins fell from 15.7% to 12.8%, influenced by a higher proportion of lower-margin Employer of Record (EOR) services. Operating expenses decreased by 8.5% to $7,575 due to workforce reductions. The company reported a net loss of $2,556, an improvement from the $2,855 loss in the prior year, driven by gains from discontinued operations. The company faces liquidity challenges with a working capital deficit of $46,965 and ongoing discussions with lenders to manage debt obligations, raising substantial doubt about its ability to continue as a going concern.