What changed in this filing

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Item 1. Financial Statements

2023-08-14 compared with 2023-05-15 · 97 added, 71 removed, 262 unchanged (39% of the section changed)

10 unchanged sentences

Intangible assets, net

Deferred tax assets, net

Right-of-use assets

10 unchanged sentences

Other long-term liabilities

Total liabilities

Total lliabilities

Commitments and contingencies (Note 13)

2 unchanged sentences

authorized - 200,000 shares;

issued and outstanding - 114,450 shares at March 31, 2023 and September 30, 2022

114,600 shares issued and 113,730 shares outstanding at June 30, 2023, and 114,450 shares issued and outstanding at September 30, 2022

Accumulated deficit

Treasury stock, at cost - 870 shares at June 30, 2023

Total shareholders' equity

5 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

NET REVENUES:

25 unchanged sentences

Balance, March 31, 2023

Purchase of treasury stock

Share-based compensation

Issuance of stock for restricted stock

Balance, June 30, 2023

Shareholders'

4 unchanged sentences

Balance, March 31, 2022

Share-based compensation

Balance, June 30, 2022

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

2 unchanged sentences

(Amounts in thousands)

Six Months Ended

Nine Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES:

18 unchanged sentences

CASH FLOWS FROM FINANCING ACTIVITIES:

Purchases of treasury stock

Payments on finance leases

14 unchanged sentences

In the opinion of management, all adjustments considered necessary for a fair presentation have been included.

Operating results for the six-month period ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending September 30, 2023.

Operating results for the nine-month period ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending September 30, 2023.

The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended September 30, 2022 as filed on December 20, 2022.

3 unchanged sentences

The Company’s guarantee periods for permanently placed employees generally range from 60 to 90 days from the date of hire.

Falloffs and refunds during the period are reflected in the unaudited condensed consolidated statements of operations as a reduction of placement service revenues and were approximately $ 269 and $ 803 for the three-month periods and $ 433 and $ 1,497 for the six-month periods ended March 31, 2023 and 2022, respectively.

Falloffs and refunds during the period are reflected in the unaudited condensed consolidated statements of operations as a reduction of placement service revenues and were approximately $ 191 and $ 521 for the three-month periods and $ 624 and $ 2,018 for the nine-month periods ended June 30, 2023 and 2022, respectively.

Expected future falloffs and refunds are estimated and reflected in the consolidated balance sheet as a reduction of accounts receivable as described below.

2 unchanged sentences

An allowance for placement falloffs also is recorded as a reduction of revenues for estimated losses due to applicants not remaining employed for the Company’s guarantee period.

The combined allowance for doubtful accounts and falloffs were $ 702 and $ 738 as of March 31, 2023 and September 30, 2022, respectively.

The allowance consists of $ 581 and $ 548 for doubtful accounts and $ 121 and $ 190 for falloffs as of March 31, 2023 and September 30, 2022, respectively.

The combined allowance for doubtful accounts and falloffs were $ 703 and $ 738 as of June 30, 2023 and September 30, 2022, respectively.

The allowance consists of $ 586 and $ 548 for doubtful accounts and $ 117 and $ 190 for falloffs as of June 30, 2023 and September 30, 2022, respectively.

Advertising Expenses

The Company expenses the costs of print and internet media advertising and promotions as incurred and reports these costs in selling, general and administrative expenses.

Advertising expenses totaled $ 561 and $ 484 for the three-month periods and $ 1,142 and $ 1,001 for the six-month periods ended March 31, 2023 and 2022, respectively.

Advertising expenses totaled $ 541 and $ 484 for the three-month periods and $ 1,683 and $ 1,485 for the nine-month periods ended June 30, 2023 and 2022, respectively.

Earnings per Share

Basic earnings per share are computed by dividing net income attributable to common stockholders by the weighted average common shares outstanding for the period.

Basic earnings per share are computed by dividing net income attributable to common stockholders by the weighted average common shares outstanding for the period, which is computed using shares issued less treasury shares repurchased by the Company.

Diluted earnings per share is computed giving effect to all potentially dilutive common shares.

1 unchanged sentence

The dilutive effect of the common stock equivalents is reflected in earnings per share by use of the treasury stock method.

The weighted average dilutive incremental shares, or common stock equivalents, included in the calculations of dilutive shares were 735 and 1,542 for the three-month periods and 776 and 1,492 for the six-month periods ended March 31, 2023 and 2022, respectively.

Common stock equivalents excluded because their effect is anti-dilutive were 3,543 and 1,639 for the three-month periods and 3,458 and 1,693 for the six-month periods ended March 31, 2023 and 2022, respectively.

GEE GROUP INC.

G EE GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Amounts in thousands except per share data, unless otherwise stated)

The weighted average dilutive incremental shares, or common stock equivalents, included in the calculations of dilutive shares were 734 and 1,542 for the three-month periods and 762 and 1,508 for the nine-month periods ended June 30, 2023 and 2022, respectively.

Common stock equivalents excluded because their effect is anti-dilutive were 3,473 and 2,483 for the three-month periods and 3,463 and 1,983 for the nine-month periods ended June 30, 2023 and 2022, respectively.

Share Repurchase Program

On April 27, 2023, the Company’s Board of Directors approved a share repurchase program authorizing the Company to purchase up to an aggregate of $ 20 million of the Company’s currently outstanding shares of common stock.

The share repurchase program will continue through December 31, 2023, may be suspended or discontinued at any time and does not obligate the Company to repurchase any number of shares of common stock.

The share repurchase program is to be conducted in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended.

Subject to applicable rules and regulations, the shares of common stock may be purchased from time to time in the open market transactions and in amounts as the Company deems appropriate, based on factors such as market conditions, legal requirements, and other business considerations.

During the three-months ended June 30, 2023, the Company repurchased 870 shares of its common stock for $ 471 at an average price of $ 0.52 per share.

Property and Equipment

Property and equipment, net consisted of the following:

June 30, 2023

September 30, 2022

7 unchanged sentences

Supplemental cash flow information related to finance leases consisted of the following:

Six Months Ended March 31,

Nine Months Ended June 30,

Cash paid for finance lease liabilities

4 unchanged sentences

Weighted average discount rate for finance leases

The table below reconciles the undiscounted future minimum lease payments under non-cancelable finance lease agreements to the total finance lease liabilities recognized on the unaudited condensed consolidated balance sheets, included in other current liabilities and other long-term liabilities, as of March 31, 2023:

G EE GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Amounts in thousands except per share data, unless otherwise stated)

Remainder of Fiscal 2023

1 unchanged sentence

Present value of finance lease liabilities (a)

Includes current portion of $ 187 for finance leases.

(a) Includes current portion of $ 163 for finance leases.

The Company leases space for all its branch offices, which are generally located either in downtown or suburban business centers, and for its corporate headquarters.

2 unchanged sentences

The Company’s leases generally provide for payment of basic rent plus a share of building real estate taxes, maintenance costs and utilities.

GEE GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Amounts in thousands except per share data, unless otherwise stated)

Operating lease expenses were $ 554 and $ 543 for the three-month periods and $ 1,142 and $ 1,077 for the six-month periods ended March 31, 2023 and 2022, respectively.

Operating lease expenses were $ 542 and $ 548 for the three-month periods and $ 1,685 and $ 1,625 for the nine-month periods ended June 30, 2023 and 2022, respectively.

Supplemental cash flow information related to leases consisted of the following:

Six Months Ended March 31,

Nine Months Ended June 30,

Cash paid for operating lease liabilities

1 unchanged sentence

Supplemental balance sheet information related to leases consisted of the following:

June 30, 2023

September 30, 2022

1 unchanged sentence

Weighted average discount rate for operating leases

The table below reconciles the undiscounted future minimum lease payments under non-cancelable lease agreements having initial terms in excess of one year to the total operating lease liabilities recognized on the unaudited condensed consolidated balance sheet as of March 31, 2023, including certain closed offices are as follows:

The table below reconciles the undiscounted future minimum lease payments under non-cancelable lease agreements having initial terms in excess of one year to the total operating lease liabilities recognized on the unaudited condensed consolidated balance sheet as of June 30, 2023, including certain closed offices are as follows:

Remainder of Fiscal 2023

1 unchanged sentence

Present value of operating lease liabilities (a)

Includes current portion of $ 1,461 for operating leases.

(a) Includes current portion of $ 1,531 for operating leases.

Goodwill and Intangible Assets

2 unchanged sentences

In response, the Company performed an interim goodwill impairment assessment as of March 31, 2023.

As a result of this interim assessment, it was determined that no goodwill impairment was present as of March 31, 2023.

As previously disclosed, the Company incurred a goodwill impairment charge in the amount of $ 2,150 during the six months ended March 31, 2022.

GEE GROUP INC.

As a result of this interim assessment as of March 31, 2023 and an internal review as of June 30, 2023, it was determined that no goodwill impairment was present.

As previously disclosed, the Company incurred a goodwill impairment charge in the amount of $ 2,150 during the nine months ended June 30, 2022.

G EE GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

1 unchanged sentence

Intangible Assets

The following tables set forth the costs, accumulated amortization, and net book value of the Company’s separately identifiable intangible assets as of March 31, 2023 and September 30, 2022 and estimated future amortization expense.

March 31, 2023

The following tables set forth the costs, accumulated amortization, and net book value of the Company’s separately identifiable intangible assets as of June 30, 2023 and September 30, 2022 and estimated future amortization expense.

June 30, 2023

September 30, 2022

11 unchanged sentences

The CIT Facility matures on the fifth anniversary of the closing date ( May 14, 2026 ).

As of March 31, 2023, the Company had no outstanding borrowings and $ 13,347 available for borrowing under the terms of the CIT Facility.

As of June 30, 2023, the Company had no outstanding borrowings and $ 12,434 available for borrowing under the terms of the CIT Facility.

The Company also had $ 446 in unamortized debt issuance costs associated with the CIT Facility.

The amortization expense of these debt costs totaled $ 38 for the three-month periods and $ 76 for the six-month periods ended March 31, 2023 and 2022.

The amortization expense of these debt costs totaled $ 38 for the three-month periods and $ 115 for the nine-month periods ended June 30, 2023 and 2022.

Under the CIT Facility, advances will be subject to a borrowing base formula that is computed based on 85% of eligible accounts receivable of the Company and subsidiaries as defined in the CIT Facility, and subject to certain other criteria, conditions, and applicable reserves, including any additional eligibility requirements as determined by the administrative agent.

The CIT Facility is subject to usual and customary covenants and events of default for credit facilities of this type.

The interest rate, at the Company’s election, will be based on either the Base Rate, as defined, plus the applicable margin;

The interest rate, at the Company’s election, was based on either the Base Rate, as defined, plus the applicable margin;

or the London Interbank Offered Rate (“LIBOR”), or any successor thereto, for the applicable interest period, subject to a 1% floor, plus the applicable margin.

The CIT Facility also contains provisions addressing the future replacement of LIBOR utilized and referenced in the loan agreement, which will be replaced by the Secured Overnight Financing Rate (“SOFR”) in July 2023.

SOFR is a secured, risk-free rate based on the cost of borrowing overnight.

In addition to interest costs on advances outstanding, the CIT Facility will provide for an unused line fee ranging from 0.375 % to 0.50 % depending on the amount of undrawn credit, original issue discount and certain fees for diligence, implementation, and administration.

The unused line fees incurred and included in interest expense totaled $ 25 for both the three-month periods and $ 51 for both the six-month periods ended March 31, 2023 and 2022, respectively.

On May 18, 2023, the Company entered into a Consent and Amendment No.

1 to the Loan and Security and Guarantee Agreement (the “Amendment”), by and among the Company, certain subsidiaries of the Company as Borrowers, the Guarantors, the financial institutions party to the agreement from time to time as the Lenders, and CIT BANK, a division of First-Citizen Bank & Trust Company (successor by merger to CIT Bank, N.A.), as Agent for the Lenders.

Pursuant to the terms of the Amendment and subject to the terms and conditions set forth in the Amendment, CIT, and Lenders consented to the Company’s previously announced 2023 Stock Repurchase Program (as defined in the Amendment), which program will continue through December 31, 2023;

provided that (i) the aggregate amount paid for all such repurchase transactions shall not exceed $20,000,000 , and (ii) no Default or Event of Default (as defined in the Amendment) exists or would exist after giving effect to each repurchase transaction consummated thereunder.

In addition, effective as of the date of the Amendment, the London interbank offered rate, LIBOR, is no longer used as a benchmark rate or otherwise operative within the Amendment and was replaced with the Secured Overnight Financing Rate, SOFR, as well as other conforming changes.

In addition to interest costs on advances outstanding, the CIT Facility will provide an unused line fee ranging from 0.37 % to 0.50 % depending on the amount of undrawn credit, original issue discount and certain fees for diligence, implementation, and administration.

The unused line fees incurred and included in interest expense totaled $ 25 for both the three-month periods and $ 76 for both the nine-month periods ended June 30, 2023 and 2022, respectively.

G EE GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Amounts in thousands except per share data, unless otherwise stated)

Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) Payroll Protection Program Loans

2 unchanged sentences

The Company and its operating subsidiaries were granted forgiveness of their respective PPP loans by the SBA during fiscals 2021 and 2022.

The Company’s remaining PPP loans and interest were forgiven in December 2021 and corresponding gains in the aggregate amount of $ 16,773 were recognized during the six months ended March 31, 2022.

GEE GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Amounts in thousands except per share data, unless otherwise stated)

The Company’s remaining PPP loans and interest were forgiven in December 2021 and corresponding gains in the aggregate amount of $ 16,773 were recognized during the nine months ended June 30, 2022.

The former PPP loans obtained by GEE Group Inc., and its operating subsidiaries together as an affiliated group, exceeded the $ 2,000 audit threshold established by the SBA, and therefore, will be subject to audit by the SBA in the future.

3 unchanged sentences

Amended and Restated 2013 Incentive Stock Plan, as amended

As of March 31, 2023, there were vested and unvested shares of restricted stock and stock options outstanding under the Company’s Amended and Restated 2013 Incentive Stock Plan, as amended (“Incentive Stock Plan”).

As of June 30, 2023, there were vested and unvested shares of restricted stock and stock options outstanding under the Company’s Amended and Restated 2013 Incentive Stock Plan, as amended (“Incentive Stock Plan”).

During fiscal 2021, the Incentive Stock Plan was amended to increase the total shares available for restricted stock and stock options by 10,000 to a total of 15,000 ( 7,500 restricted stock shares and 7,500 stock option shares).

1 unchanged sentence

Vesting periods are established by the Compensation Committee at the time of grant.

As of March 31, 2023, there were 8,815 shares available to be granted under the Plan ( 4,098 shares available for restricted stock grants and 4,717 shares available for stock option grants).

As of June 30, 2023, there were 8,885 shares available to be granted under the Plan ( 4,098 shares available for restricted stock grants and 4,787 shares available for stock option grants).

Restricted Stock

The Company granted 760 shares of restricted stock during the six months ended March 31, 2023.

The Company granted 760 shares of restricted stock during the nine months ended June 30, 2023.

On September 27, 2022, the Company adopted a new annual incentive compensation program (“AICP”) for its executives to be administered under the Company’s Incentive Stock Plan.

2 unchanged sentences

Initial awards under both service-only and service plus performance-based components of the AICP LTI plan are determined based on financial performance measures for the immediately preceding fiscal year.

During the six months ended March 31, 2023, 551 of the 760 restricted shares were granted based on actual results for fiscal 2022, as measured against corresponding financial targets for that year, and will cliff vest as of December 2, 2025.

During the nine months ended June 30, 2023, 551 of the 760 restricted shares were granted based on actual results for fiscal 2022, as measured against corresponding financial targets for that year, and will cliff vest as of December 2, 2025.

G EE GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Amounts in thousands except per share data, unless otherwise stated)

The remaining 209 of the 760 restricted shares were also granted based on fiscal 2022 results, and as further adjusted for the probable outcome with regard to the financial targets set by the Company’s board of directors for fiscal 2023.

1 unchanged sentence

The final number of fiscal 2022 service plus performance-based restricted shares granted will be determined once the actual financial performance of the Company is determined for fiscal 2023, and will cliff vest on December 2, 2025, the third anniversary from their date of grant.

Under the AICP LTI plan, the service plus performance-based grants of 209 restricted shares during the six months ended March 31, 2023, represent the first tranche of a three-year schedule of awards.

Under the AICP LTI plan, the service plus performance-based grants of 209 restricted shares during the nine months ended June 30, 2023, represent the first tranche of a three-year schedule of awards.

The next two tranches of up to 262 shares each (up to an additional 524 restricted shares in total) are scheduled to become effective as the Company’s financial plans and targets are set by the board of directors prior to each anniversary date for each of the two subsequent fiscal years, respectively.

As the vesting of the two subsequent tranches will be based in part on performance conditions that have not yet been determined, the grant dates and fair values of these scheduled awards will be established in the future.

The end of the requisite service periods for the entire 760 restricted shares granted during the six months ended March 31, 2023, plus the additional 524 restricted shares eligible to be granted in the future, once the performance conditions are determined for fiscal 2024 and fiscal 2025, is December 2, 2025.

The end of the requisite service periods for the entire 760 restricted shares granted during the nine months ended June 30, 2023, plus the additional 524 restricted shares eligible to be granted in the future, once the performance conditions are determined for fiscal 2024 and fiscal 2025, is December 2, 2025.

Therefore, the remaining two tranches of the fiscal 2022 service plus performance-based awards may be expected to have grant dates corresponding with the establishment of the fiscal 2024 and fiscal 2025 financial performance targets by the Company’s board of directors.

However, all final shares determined for each of the two subsequent annual tranches also will cliff vest on December 2, 2025.

GEE GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Amounts in thousands except per share data, unless otherwise stated)

Share-based compensation expense attributable to restricted stock was $ 88 and $ 76 for the three-month periods and $ 175 and $ 148 for the six-month periods ended March 31, 2023 and 2022, respectively.

As of March 31, 2023, there was approximately $ 624 of unrecognized compensation expense related to restricted stock outstanding and the weighted average vesting period for those grants was 3.06 years.

Share-based compensation expense attributable to restricted stock was $ 119 and $ 76 for the three-month periods and $ 294 and $ 224 for the nine-month periods ended June 30, 2023 and 2022, respectively.

As of June 30, 2023, there was approximately $ 610 of unrecognized compensation expense related to restricted stock outstanding and the weighted average vesting period for those grants was 3.06 years.

Number of Shares

3 unchanged sentences

Non-vested restricted stock outstanding as of March 31, 2023

The Company had 77 warrants outstanding as of March 31, 2023 and September 30, 2022 with a weighted average exercise price per share of $ 2 and a weighted average remaining contractual life of 2.01 and 2.50 , respectively.

No warrants were granted or expired during the six months ended March 31, 2023.

Non-vested restricted stock outstanding as of June 30, 2023

The Company had 77 warrants outstanding as of June 30, 2023 and September 30, 2022 with a weighted average exercise price per share of $ 2 and a weighted average remaining contractual life of 1.76 and 2.50 , respectively.

No warrants were granted or expired during the nine months ended June 30, 2023.

Stock Options

All stock options outstanding as of March 31, 2023 and September 30, 2022 were non-statutory stock options, had exercise prices equal to the market price on the date of grant, and had expiration dates ten years from the date of grant.

The Company granted 435 stock options during the six months ended March 31, 2023.

All stock options outstanding as of June 30, 2023 and September 30, 2022 were non-qualified stock options, had exercise prices equal to the market price on the date of grant, and had expiration dates ten years from the date of grant.

The Company granted 435 stock options during the nine months ended June 30, 2023.

The stock options generally vest on annual schedules during periods ranging from two to four years, although some options are fully vested upon grant.

Share-based compensation expense attributable to stock options was $ 38 and $ 76 for the three-month periods and $ 325 and $ 151 for the six-month periods ended March 31, 2023 and 2022, respectively.

As of March 31, 2023, there was approximately $ 510 of unrecognized compensation expense related to unvested stock options outstanding, and the weighted average vesting period for those options was 3.69 years.

GEE GROUP INC.

Share-based compensation expense attributable to stock options was $ 57 and $ 93 for the three-month periods and $ 382 and $ 244 for the nine-month periods ended June 30, 2023 and 2022, respectively.

As of June 30, 2023, there was approximately $ 453 of unrecognized compensation expense related to unvested stock options outstanding, and the weighted average vesting period for those options was 3.79 years.

G EE GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

2 unchanged sentences

Weighted Average Exercise Price per share ($)

Weighted Average Fair Value per share ($)

Weighted Average Remaining Contractual Life (Years)

3 unchanged sentences

Options outstanding as of March 31, 2023

Options outstanding as of June 30, 2023

Exercisable as of September 30, 2022

Exercisable as of March 31, 2023

The following table presents the provision for income taxes and our effective tax rate for the three and six-month periods ended March 31, 2023 and 2022:

Exercisable as of June 30, 2023

The following table presents the provision for income taxes and our effective tax rate for the three and nine-month periods ended June 30, 2023 and 2022:

Three Months Ended,

Six Months Ended,

Nine Months Ended,

Provision (benefit) for income taxes

1 unchanged sentence

The effective income tax rate on operations is based upon the estimated income for the year and adjustments, if any, in the applicable quarterly periods for the potential tax consequences, benefits, resolutions of tax audits or other tax contingencies.

Our effective tax rate for the three and six-month periods ended March 31, 2023 and 2022, is lower than the statutory tax rate primarily due to the effect of the valuation allowance on the net deferred tax asset (“DTA”) position.

Other than the deferred tax liability relating to indefinite lived assets, the Company is maintaining a valuation allowance against the remaining net DTA position.

Our effective tax rate for the three and nine-month periods ended June 30, 2023 and 2022, is lower than the statutory tax rate primarily due to the effect of the valuation allowance on the net deferred tax asset (“DTA”) position.

As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets.

As of June 30, 2023, in part due to the fact that in the current year we achieved three years of cumulative pretax income in the U.S.

federal tax jurisdiction, management determined that there is sufficient positive evidence to conclude that it is more likely than not that the deferred taxes are realizable.

As a result, the Company released $ 6,938 of the valuation allowance accordingly during the three-month period ended June 30, 2023.

Commitments and Contingencies

2 unchanged sentences

Under the terms of the agreement and release, neither the plaintiff nor the Company have admitted or conceded to any wrongdoing and the matter was settled in its entirety for a one-time payment to the plaintiff of approximately $ 1,175 , of which the Company’s portion was $ 975 , with insurance paying the balance.

This payment was due and paid by April 8, 2022, and recorded in selling, general, and administrative expenses as a pre-tax charge in the Company’s condensed consolidated financial statements during the three-month period ended March 31, 2022.

The Company and its subsidiaries are involved in various other litigation that arises in the ordinary course of business.

There are no other pending significant legal proceedings to which the Company is a party for which management believes the ultimate outcome would have a material adverse effect on the Company’s financial position.

GEE GROUP INC.

G EE GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Amounts in thousands except per share data, unless otherwise stated)

The Company and its subsidiaries are involved in various other litigation that arises in the ordinary course of business.

The Company provides the following distinctive services:

5 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

Industrial Staffing Services

19 unchanged sentences

Depreciation and amortization

Credits related to estimated annual premium refunds from the Ohio Bureau of Workers Compensations totaling $ 2 and $ 19 are included in the three-month periods ended March 31, 2023 and 2022, respectively;

and $ 2 and $ 37 for the six-month periods ended March 31, 2023 and 2022, respectively.

The Industrial Services gross margin normalized for the effects of these items were approximately 16.4 % and 14.2 % for the three-month periods ended March 31, 2023 and 2022, respectively;

and 15.9 % and 14.5 % for the six-month periods ended March 31, 2023 and 2022, respectively.

Credits related to estimated annual premium refunds from the Ohio Bureau of Workers Compensations totaling $ 17 and $ 46 are included in the three-month periods ended June 30, 2023 and 2022, respectively;

and $ 19 and $ 83 for the nine-month periods ended June 30, 2023 and 2022, respectively.

The Industrial Services gross margin normalized for the effects of these items were approximately 17.2 % and 15.5 % for the three-month periods ended June 30, 2023 and 2022, respectively;

and 16.3 % and 14.8 % for the nine-month periods ended June 30, 2023 and 2022, respectively.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements