Nixxy, Inc. (formerly Recruiter.com Group, Inc.) reported significant financial changes in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decline in revenue, with total revenue for the three months at $135,886, down from $183,722 in the same period of 2023. For the nine months ended September 30, 2024, revenue plummeted to $491,544 from $3,010,870 in the prior year, reflecting an 84% decrease. This decline was attributed to reduced contributions from various service lines, including Recruiters on Demand and Consulting and Staffing Services.

Despite a gross profit of $135,886 for the third quarter, the company reported a net loss of $13.3 million, a stark increase from a net loss of $1.03 million in the same quarter of 2023. For the nine-month period, the net loss reached $15.1 million, compared to $5.3 million in the previous year. The increase in losses was primarily driven by a $9.2 million loss on debt settlements and a rise in operating expenses, which totaled $8 million for the nine months, up from $6.9 million in 2023.

Nixxy's total assets increased to $11.2 million as of September 30, 2024, from $10.5 million at the end of 2023, while total current liabilities decreased significantly from $9.6 million to $4.4 million. The company’s stockholders’ equity surged to $6.8 million, up from $930,008 at the end of 2023, largely due to the issuance of common stock for debt settlements and other financing activities.

Strategically, Nixxy has undergone significant transformations, including the acquisition of Atlantic Energy Solutions, Inc. for $80,000 in July 2023, and plans to spin out this subsidiary, now rebranded as CognoGroup, in early 2025. The company also entered a Technology License Agreement with GoLogiq, Inc., granting exclusive rights to fintech technology and issuing shares as part of the deal.

The company has faced challenges, including defaults on several promissory notes and a reliance on equity offerings for liquidity. As of September 30, 2024, Nixxy reported cash and cash equivalents of $2.2 million, which management indicated would not be sufficient to fund operations for the next 12 months without additional financing. The company is actively pursuing further capital to support its operations and strategic initiatives.