ShiftPixy, Inc.

CIK:0001675634|SEC Filings

Condensed Unaudited Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Condensed Unaudited Consolidated Statements of Operations
Revenues (See Note 2)	$ 4,134	$ 3,988	$ 11,721	$ 13,833
Cost of revenues	3,891	3,788	10,806	12,623
Gross profit	243	200	915	1,210
Operating expenses:
Salaries, taxes, and benefits	1,337	2,621	4,001	7,477
Professional fees	780	752	2,059	2,817
Software development	1	50	2	229
Depreciation and amortization	138	148	419	447
General and administrative	1,989	3,074	10,126	6,609
Total operating expenses	4,245	6,645	16,607	17,579
Operating loss	(4,002)	(6,445)	(15,692)	(16,369)
Other (expense) income:
Gain from legal settlement	0	0	2,500	0
Interest expense	(423)	(550)	(1,467)	(1,007)
Other income (expense)	0	0	18	536
Total other income (expense)	(423)	(550)	1,015	(471)
Net loss attributable to ShiftPixy, Inc	(4,425)	(6,995)	(14,677)	(16,840)
Loss from discontinued operations, net of tax	0	(460)	0	(1,267)
Non-controlling interest	0	0	0	(540)
Net Loss	(4,425)	(7,455)	(14,677)	(18,647)
Preferred stock preferential dividend	0	0	(67,444)	(127,145)
Net loss attributable to Shiftpixy's shareholders	$ (4,425)	$ (7,455)	$ (82,121)	$ (145,792)
Continuing operations - basic and diluted	$ (0.69)	$ (16.69)	$ (16.88)	$ (356.13)
Discontinued operations - basic and diluted	0	(1.10)	0	(3.12)
Net loss per common share - basic and diluted	$ (0.69)	$ (17.79)	$ (16.88)	$ (359.25)
Weighted average common shares outstanding - basic and diluted	6,429,780	419,049	4,865,365	405,816

Condensed Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	May 31, 2024	May 31, 2023
OPERATING ACTIVITIES
Net loss	$ (14,677)	$ (18,647)
Loss from discontinued operations	0	(1,267)
Non-controlling interest	0	(540)
Net loss from continuing operations	(14,677)	(16,840)
Adjustments to reconcile net loss from continuing operations to net cash used in continuing operating activities:
Depreciation and amortization	419	447
Stock-based compensation	462	735
Warrant modification expense	0	106
Amortization of operating lease	265	85
Fair value of shares for services to be issued to directors	137	169
Allowance for credit losses	380	10
Loss from sale of fixed assets	7	0
Changes in operating assets and liabilities:
Accounts receivable	(420)	(268)
Unbilled accounts receivable	1,451	59
Prepaid expenses and other current assets	537	356
Deposits and other assets	51	(79)
Accounts payable and other accrued liabilities	680	952
Operating lease liability	(285)	(448)
Payroll tax liabilities	5,939	7,844
Payroll related liabilities	(909)	480
Net cash used in continuing operating activities	(5,963)	(6,392)
INVESTING ACTIVITIES
Purchase of fixed assets	0	(343)
Redemption of Trust Account	0	117,574
Investment in private company	0	(100)
Proceeds from the sale of fixed assts	5	0
Net cash provided by investing activities	5	117,131
FINANCING ACTIVITIES
Proceeds from exercised warrant, net of offering costs	0	1
Payment to IHC shareholders	0	(117,574)
Proceeds from registered offering, net of offering costs	4,227	0
Proceeds from At the Market Offering, net of offering costs	0	1,973
Proceeds from private placement, net of offering costs	2,016	4,387
Net cash provided by (used in) financing activities	6,243	(111,213)
Net (decrease) increase in cash	285	(474)
Cash - Beginning of Period	75	618
Cash - End of Period	360	144
Supplemental Disclosure of Cash Flows Information:
Cash paid for interest	15	102
Cash paid for income taxes	0	0
Non-cash Investing and Financing Activities:
Deconsolidation of VIE	0	9,494
Increase in marketable securities in trust account and Class A mandatory redeemable common shares	0	801
Transfer of preferred shares to common shares	0	1
Issuance of common stock as legal settlement with former related party debt	$ 550	$ 0

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	May 31, 2024	Aug. 31, 2023
Current assets
Cash	$ 360	$ 75
Accounts receivable, net	630	590
Unbilled accounts receivable	333	1,784
Prepaid expenses	302	839
Other current assets	481	532
Total current assets	2,106	3,820
Fixed assets, net	1,191	1,622
Right-of-use asset, net	601	866
Deposits and other assets	192	192
Total assets	4,090	6,500
Current liabilities
Accounts payable and other accrued liabilities	24,820	17,911
Payroll tax related liabilities	35,534	29,595
Payroll related liabilities	2,031	2,940
Current liabilities of discontinued operations	0	4,389
Total current liabilities	62,385	54,835
Non-current liabilities
Operating lease liability, non-current	252	2,790
Total liabilities	62,637	57,625
Stockholders' deficit
Convertible preferred stock Class A, 50,000,000 authorized shares; $0.0001 par value: 0 shares issued and outstanding as of May 31, 2024, and August 31, 2023	0	0
Common stock, 750,000,000 authorized shares; $0.0001 par value; and 6,755,686 and 507,383 shares issued and outstanding as of May 31, 2024, and August 31, 2023, respectively	0	0
Additional paid-in capital	182,481	175,226
Accumulated deficit	(241,028)	(226,351)
Total stockholders' deficit	(58,547)	(51,125)
Total liabilities and stockholders' deficit	$ 4,090	$ 6,500