GEE Group Inc.

Climate Impact & Sustainability Data (2021, 2022, 2023, 2024)

Recent global socioeconomic conditions, including the negative effects of the Coronavirus Pandemic (“COVID-19”), and disruption of financial markets, severely affected our business and results of operations during fiscal 2020 and, although to a lesser extent, fiscal 2021.
Lingering workforce shortage that has been felt across the U.S., including in the local markets served by our industrial segment, limited the Company’s ability to fully fill all of its contract orders in its industrial segment as well as some orders in the professional segment.

A series of proactive actions including a 10% pay cut for full-time salaried employees, temporary furloughing and redeployment of some employees, reduction of discretionary expenses and projects, and obtaining funds under CARES Act Payroll Protection Program (“PPP”).
The Company continues to observe, analyze and make modifications and changes to its business model and practices on a routine basis in response to the on-going COVID-19 pandemic and related health and safety concerns.

Historically significant inflation, looming recession, disruptions in supply and workforce, war in Ukraine, and US relations with certain foreign powers negatively impacting the US economy and business.
Lingering negative effects of the Coronavirus Pandemic on business operations in certain markets.
Network security incident affecting IT network, information systems, and stored information (February 1, 2022).

Significant actions taken to shore up resources to weather a potential economic downturn.
Regained reasonable access to credit and equity capital markets.
Implemented preventative policies and procedures in observance of COVID-19 guidelines, use of personal protective equipment, flexible and hybrid work-from-home arrangements, and conversion of certain branch office locations to virtual locations.
Immediately disconnected and isolated affected systems to prevent further compromise in the network security incident; engaged third-party cybersecurity experts; notified law enforcement and cyber liability insurance carrier; implemented additional security measures.

Historically significant inflation, looming recession, disruptions in supply and workforce, war in Ukraine, US relations with certain foreign powers, negative effects of the Coronavirus Pandemic, disruption of financial markets, and a material decline in business in 2023 following record performance in 2022.

Significant actions to shore up resources, cost reductions implemented during the second quarter of fiscal 2023 (expected to provide annual savings of approximately $4.0 million), diversification of deposit base, establishing a brokerage arrangement with a major financial advisory institution to allocate excess cash among FDIC insured banks in amounts that individually do not exceed the established FDIC insured limit of $250 thousand, counter-inflationary measures including seeking increases in bill rates and spreads.

Negative economic and labor market conditions impacting the number of job orders and qualified candidates.
Declines in business due to historically significant inflation, a looming recession, and workforce disruptions.
Global socioeconomic trends (wars in Ukraine and the Middle East, US relations with foreign powers) impacting the US economy and business.

Comprehensive three-part strategic initiative: streamlining operations, integrating acquisitions, and capitalizing on acquisition opportunities.
Cost reductions aimed at reducing annualized SG&A expenses by approximately $3.0 million, pre-tax.
Investments in systems and software ($500 thousand to $1.0 million over 12-18 months).
Intangible asset and goodwill impairment charges to reduce future amortization expense and risks.