Document And Entity Information
Document And Entity Information | 6 Months Ended | |
Jun. 30, 2022 | Aug. 08, 2022 shares | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001140102 | |
Entity Registrant Name | HireQuest, Inc. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-53088 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 91-2079472 | |
Entity Address, Address Line One | 111 Springhall Drive | |
Entity Address, City or Town | Goose Creek | |
Entity Address, State or Province | SC | |
Entity Address, Postal Zip Code | 29445 | |
City Area Code | 843 | |
Local Phone Number | 723-7400 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | HQI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,814,559 | |
Entity Number of Employees | 75,000 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash | $ 1,128 | $ 1,256 |
Accounts receivable, net of allowance for doubtful accounts | 45,676 | 38,239 |
Notes receivable | 1,494 | 1,481 |
Prepaid expenses, deposits, and other assets | 1,023 | 659 |
Prepaid workers' compensation | 1,293 | 369 |
Current assets held for sale - discontinued operations | 213 | 0 |
Total current assets | 50,827 | 42,004 |
Property and equipment, net | 4,438 | 4,454 |
Workers’ compensation claim payment deposit | 1,231 | 948 |
Franchise agreements, net | 18,103 | 18,848 |
Other intangible assets, net | 11,265 | 8,078 |
Goodwill | 1,075 | 0 |
Other assets | 432 | 334 |
Notes receivable, net of current portion and reserve | 2,524 | 2,686 |
Total assets | 89,895 | 77,352 |
Current liabilities | ||
Accounts payable | 629 | 1,126 |
Other current liabilities | 3,296 | 2,658 |
Accrued payroll, benefits, and payroll taxes | 2,381 | 3,687 |
Due to franchisees | 12,254 | 7,496 |
Risk management incentive program liability | 1,945 | 1,632 |
Workers' compensation claims liability | 4,651 | 4,491 |
Total current liabilities | 28,649 | 21,471 |
Term loan payable, net of current portion | 3,645 | 2,856 |
Deferred tax liability | 0 | 473 |
Workers' compensation claims liability, net of current portion | 3,534 | 3,759 |
Franchisee deposits | 2,179 | 2,058 |
Total liabilities | 38,007 | 30,617 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity | ||
Preferred stock - $0.001 par value, 1,000 shares authorized; none issued | 0 | 0 |
Common stock - $0.001 par value, 30,000 shares authorized; 13,827 and 13,745 shares issued, respectively | 14 | 14 |
Additional paid-in capital | 31,781 | 30,472 |
Treasury stock, at cost - 40 shares | (146) | (146) |
Retained earnings | 20,239 | 16,395 |
Total stockholders' equity | 51,888 | 46,735 |
Total liabilities and stockholders' equity | 89,895 | 77,352 |
Term Loan [Member] | ||
Current liabilities | ||
Long-term debt | 654 | 210 |
Line of Credit [Member] | ||
Current liabilities | ||
Long-term debt | $ 2,839 | $ 171 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares shares in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 1,000 | 1,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 30,000 | 30,000 |
Common stock, shares issued (in shares) | 13,827 | 13,745 |
Treasury stock, shares (in shares) | 40 | 40 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue | $ 9,288 | $ 5,707 | $ 17,433 | $ 9,109 |
Cost of staffing revenue, owned locations | 947 | 0 | 1,709 | 0 |
Gross profit | 8,341 | 5,707 | 15,724 | 9,109 |
Selling, general and administrative expenses | 3,530 | 2,041 | 6,367 | 5,882 |
Depreciation and amortization | 610 | 366 | 1,176 | 699 |
Income from operations | 4,201 | 3,300 | 8,181 | 2,528 |
Other miscellaneous income (expense) | 1,458 | 30 | (1,922) | 3,811 |
Interest income | 54 | 96 | 147 | 231 |
Interest and other financing expense | (109) | (20) | (157) | (25) |
Net income before income taxes | 5,604 | 3,406 | 6,249 | 6,545 |
Provision for income taxes | 847 | 686 | 934 | 83 |
Net income from continuing operations | 4,757 | 2,720 | 5,315 | 6,462 |
Income from discontinued operations, net of tax | 134 | 0 | 179 | 0 |
Net income | $ 4,891 | $ 2,720 | $ 5,494 | $ 6,462 |
Basic earnings per share | ||||
Continuing operations (in dollars per share) | $ 0.35 | $ 0.20 | $ 0.39 | $ 0.47 |
Discontinued operations (in dollars per share) | 0.01 | 0 | 0.01 | 0 |
Total (in dollars per share) | 0.36 | 0.20 | 0.40 | 0.47 |
Diluted earnings per share | ||||
Continuing operations (in dollars per share) | 0.35 | 0.20 | 0.39 | 0.47 |
Discontinued operations (in dollars per share) | 0.01 | 0 | 0.01 | 0 |
Total (in dollars per share) | $ 0.36 | $ 0.20 | $ 0.40 | $ 0.47 |
Weighted average shares outstanding | ||||
Basic (in shares) | 13,607 | 13,611 | 13,591 | 13,607 |
Diluted (in shares) | 13,691 | 13,864 | 13,686 | 13,834 |
Royalty [Member] | ||||
Revenue | $ 7,220 | $ 5,451 | $ 13,793 | $ 8,710 |
Staffing, Owned Locations [Member] | ||||
Revenue | 1,288 | 0 | 2,392 | 0 |
Service [Member] | ||||
Revenue | $ 780 | $ 256 | $ 1,248 | $ 399 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2020 | 13,629 | ||||
Balance at Dec. 31, 2020 | $ 14 | $ (146) | $ 28,811 | $ 7,685 | $ 36,364 |
Stock-based compensation | 0 | 0 | 569 | 0 | 569 |
Common stock dividends | $ 0 | 0 | 0 | (1,497) | (1,497) |
Restricted common stock granted for services (in shares) | 44 | ||||
Restricted common stock granted for services | $ 0 | 0 | 0 | 0 | 0 |
Net Income (loss) | $ 0 | 0 | 0 | 6,462 | 6,462 |
Balance (in shares) at Jun. 30, 2021 | 13,673 | ||||
Balance at Jun. 30, 2021 | $ 14 | (146) | 29,380 | 12,650 | 41,898 |
Balance (in shares) at Mar. 31, 2021 | 13,638 | ||||
Balance at Mar. 31, 2021 | $ 14 | (146) | 29,079 | 10,747 | 39,694 |
Stock-based compensation | 0 | 0 | 301 | 0 | 301 |
Common stock dividends | $ 0 | 0 | 0 | (817) | (817) |
Restricted common stock granted for services (in shares) | 35 | ||||
Restricted common stock granted for services | $ 0 | 0 | 0 | 0 | 0 |
Net Income (loss) | $ 0 | 0 | 0 | 2,720 | 2,720 |
Balance (in shares) at Jun. 30, 2021 | 13,673 | ||||
Balance at Jun. 30, 2021 | $ 14 | (146) | 29,380 | 12,650 | 41,898 |
Balance (in shares) at Dec. 31, 2021 | 13,745 | ||||
Balance at Dec. 31, 2021 | $ 14 | (146) | 30,472 | 16,395 | 46,735 |
Stock-based compensation | 0 | 0 | 1,309 | 0 | 1,309 |
Common stock dividends | $ 0 | 0 | 0 | (1,650) | (1,650) |
Restricted common stock granted for services (in shares) | 82 | ||||
Restricted common stock granted for services | $ 0 | 0 | 0 | 0 | |
Restricted common stock granted for services | 0 | ||||
Net Income (loss) | $ 0 | 0 | 0 | 5,494 | 5,494 |
Balance (in shares) at Jun. 30, 2022 | 13,827 | ||||
Balance at Jun. 30, 2022 | $ 14 | (146) | 31,781 | 20,239 | 51,888 |
Balance (in shares) at Mar. 31, 2022 | 13,823 | ||||
Balance at Mar. 31, 2022 | $ 14 | (146) | 30,951 | 16,176 | 46,995 |
Stock-based compensation | 0 | 0 | 830 | 0 | 830 |
Common stock dividends | $ 0 | 0 | 0 | (828) | (828) |
Restricted common stock granted for services (in shares) | 4 | ||||
Restricted common stock granted for services | $ 0 | 0 | 0 | 0 | |
Restricted common stock granted for services | 0 | ||||
Net Income (loss) | $ 0 | 0 | 0 | 4,891 | 4,891 |
Balance (in shares) at Jun. 30, 2022 | 13,827 | ||||
Balance at Jun. 30, 2022 | $ 14 | $ (146) | $ 31,781 | $ 20,239 | $ 51,888 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities | ||
Net income | $ 5,494 | $ 6,462 |
Income from discontinued operations | (179) | 0 |
Net income from continuing operations | 5,315 | 6,462 |
Adjustments to reconcile net income to net cash used in operations: | ||
Depreciation and amortization | 1,176 | 699 |
Non-cash interest | 48 | 0 |
Allowance for losses on notes receivable | 233 | 0 |
Stock based compensation | 1,309 | 569 |
Deferred taxes | (473) | (591) |
Loss on disposition of intangible assets | 2,233 | 1,223 |
Bargain purchase gain | 0 | (4,959) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,437) | (1,330) |
Prepaid expenses, deposits, and other assets | (415) | (513) |
Prepaid workers' compensation | (924) | 17 |
Accounts payable | (2,012) | 693 |
Risk management incentive program liability | 314 | 693 |
Other current liabilities | 312 | (576) |
Accrued payroll, benefits and payroll taxes | (1,433) | 877 |
Due to franchisees | 4,758 | 1,748 |
Workers' compensation claim payment deposit | (284) | 6,909 |
Workers' compensation claims liability | (64) | (591) |
Net cash provided by operating activities - continuing operations | 8,656 | 11,330 |
Net cash provided by operating activities - discontinued operations | 427 | 0 |
Net cash provided by operating activities | 9,083 | 11,330 |
Cash flows from investing activities | ||
Purchase of acquisitions | (19,063) | (28,814) |
Purchase of property and equipment | (90) | (711) |
Proceeds from the sale of purchased locations | 9,317 | 997 |
Proceeds from the sale of notes receivable | 0 | 5,261 |
Proceeds from payments on notes receivable | 315 | 331 |
Cash issued for notes receivable | (50) | (798) |
Investment in intangible asset | (512) | (325) |
Net change in franchisee deposits | 121 | 64 |
Net cash used in investing activities | (9,962) | (23,995) |
Cash flows from financing activities | ||
Payments related to debt issuance | 0 | (476) |
Proceeds from affiliates | 0 | 22 |
Payment of dividends | (1,650) | (1,497) |
Net cash provided by financing activities | 751 | 1,203 |
Net decrease in cash | (128) | (11,462) |
Cash, beginning of period | 1,256 | 13,667 |
Cash, end of period | 1,128 | 2,205 |
Supplemental disclosure of non-cash investing and financing activities | ||
Notes receivable issued for the sale of intangible assets | 350 | 1,247 |
Amounts payable related to the purchase of acquisition | 1,800 | 0 |
Supplemental disclosure of cash flow information | ||
Interest paid | 109 | 25 |
Income taxes paid, net of refunds | 1,469 | 601 |
Line of Credit [Member] | Revolving Credit Facility [Member] | ||
Cash flows from financing activities | ||
Proceeds from long-term debt | 2,667 | 0 |
Term Loan [Member] | ||
Cash flows from financing activities | ||
Proceeds from long-term debt | 0 | 3,154 |
Payments on term loan payable | $ (266) | $ 0 |
Note 1 - Overview and Summary o
Note 1 - Overview and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Note 1 Nature of Business HireQuest, Inc. (together with its subsidiaries, “HQI, the “Company,” “we,” us,” or “our”) is a nationwide franchisor of offices providing direct-dispatch and commercial staffing solutions in the light industrial and blue-collar segments of the staffing industry and traditional commercial staffing. Our franchisees provide various types of temporary personnel through two On January 24, 2022 three February 21, 2022 February 28, 2022 On March 1, 2021, March 22, 2021, October 1, 2021 December 6, 2021 For additional information related to these transactions, see Note 2 As of June 30, 2022 2 Basis of Presentation We have prepared the accompanying consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, the accompanying consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the periods presented. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report filed on Form 10 December 31, 2021 not Consolidation The consolidated financial statements include the accounts of HQI and all of its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated. U.S. GAAP requires the primary beneficiary of a variable interest entity (“VIE”) to consolidate that entity. To be the primary beneficiary of a VIE, an entity must have both the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits from the VIE that are significant to the beneficiary. We provide acquisition financing to some of our franchisees that could result in our having to absorb losses. This results in some franchisees being considered VIEs. We have reviewed our relationship with each of these franchisees and determined that we are not not Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Actual results could differ from those estimates. Significant estimates and assumptions underlie our workers’ compensation claim liabilities, our workers’ compensation risk management incentive program accrual, our deferred taxes, the reserve for losses on notes receivable, and the estimated fair value of assets acquired and liabilities assumed, including goodwill. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consist of amounts due for labor services from customers of franchisees, accounts receivable purchased in acquisitions, and accounts receivable originating at, or attributable to, company-owned locations. We own the accounts receivable from labor services provided by our franchisees until they age beyond a date agreed upon with each respective franchisee between 42 84 not For staffing services provided by company-owned offices, and for purchased accounts receivable, we record accounts receivable at face value less an allowance for doubtful accounts. We determine the allowance for doubtful accounts based on historical write-off experience, the age of the receivable, other qualitative factors and extenuating circumstances, and current economic data which represents our best estimate of the amount of probable losses on these accounts receivable, if any. We review the allowance for doubtful accounts periodically and write off past due balances when it is probable that the receivable will not June 30, 2022 December 31, 2021 Revenue Recognition Our primary source of revenue comes from royalty fees based on the operation of our franchised offices. Royalty fees from our HireQuest Direct business model are based on a percentage of sales for services our franchisees provide to customers, which ranges from 6.0% to 8.0%. Royalty fees from our HireQuest business line, including HireQuest franchisees, DriverQuest franchisees, the Northbound franchisee, the HireQuest Health franchisees, and Snelling and LINK franchisees who executed new franchise agreements upon closing, are 4.5% of the payroll we fund plus 18.0% of the gross margin for the territory. Royalty fees from the Snelling and LINK franchise agreements assumed and not For franchised locations, we recognize revenue when we satisfy our performance obligations. Our performance obligations primarily take the form of a franchise license and promised services. Promised services consist primarily of paying temporary employees, completing all statutory payroll related obligations, and providing workers' compensation insurance on behalf of temporary employees. Because these performance obligations are interrelated, we do not For owned locations, we account for revenue when both parties to the contract have approved the contract, the rights and obligations of the parties are identified, payment terms are identified, and collectability of consideration is probable. Revenue derived from owned locations is recognized at the time we satisfy our performance obligation. Our contracts have a single performance obligation, which is the transfer of services. Because our customers receive and consume the benefits of our services simultaneously, our performance obligations are satisfied when our services are provided. Revenue from owned locations is reported net of customer credits, discounts, and taxes collected from customers that are remitted to taxing authorities. Our customers are invoiced every week and we rarely require payment prior to the delivery of service. Substantially all of our contracts include payment terms of 30 no not one Below are summaries of our franchise royalties disaggregated by business model (in thousands): Three months ended Six months ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 HireQuest Direct model $ 4,417 $ 3,006 $ 7,949 $ 5,912 HireQuest, Snelling, DriverQuest, HireQuest Health, and Northbound 2,803 2,445 5,844 2,798 Total $ 7,220 $ 5,451 $ 13,793 $ 8,710 Service revenue, which forms the other component of our total revenue, consists of interest we charge our franchisees on overdue customer accounts receivable, trademark license fees, and other fees for optional services we provide. We recognize interest income based on the effective interest rate applied to the outstanding principal balance of overdue accounts. Trademark license fees are charged to some locations that utilize our intellectual property that are not Notes Receivable Notes receivable from franchisees consist primarily of amounts due to us related to the financing of franchised locations. We report notes receivable from franchisees at the principal balance outstanding less an allowance for losses. We charge interest at a fixed rate and interest income is calculated by applying the effective rate to the outstanding principal balance. Notes receivable are generally secured by the assets of each location and the ownership interests in the franchise. We monitor the financial condition of our debtors and record provisions for estimated losses when we believe it is probable that our debtors will be unable to make their required payments. We evaluate the potential impairment of notes receivable based on various analyses, including estimated discounted future cash flows, at least annually and whenever events or changes in circumstances indicate that the carrying amount of the assets may not June 30, 2022 December 31, 2021 Notes receivable from non-franchisees consist primarily of amounts due to us from the sale of non-core assets acquired after an acquisition. We report notes receivable from non-franchisees at the principal balance outstanding less an allowance for losses. We charge interest at a fixed rate and interest income is calculated by applying the effective rate to the outstanding principal balance. Notes receivable are generally unsecured. We monitor the financial condition of our debtors and evaluate the potential impairment of notes receivable based on various analyses, including estimated discounted future cash flows, at least annually and whenever events or changes in circumstances indicate that the carrying amount of the assets may not June 30, 2022 December 31, 2021 Intangible Assets Intangible assets acquired are recorded at fair value. We test our finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not may not not 2022 2021. Finite-lived intangible assets are amortized using the straight-line method over their estimated useful lives, which ranges from 7 to 15 years. Our finite-lived intangible assets include acquired franchise agreements, acquired customer lists, internally developed software, and purchased software. Our indefinite-lived intangible assets include acquired domain names and trade names. For additional information related to significant additions to intangible assets, see Note 2 Intangible assets internally developed are measured at cost. We capitalize costs to develop or purchase computer software for internal use which are incurred during the application development stage. These costs include fees paid to third not The table below reflects information related to our intangible assets (in thousands). June 30, 2022 December 31, 2021 Estimated useful life Gross Accumulated amortization Net Gross Accumulated amortization Net Finite-lived intangible assets: Franchise agreements 15 years $ 19,916 $ (1,813 ) $ 18,103 $ 19,916 $ (1,068 ) $ 18,848 Customer lists 10 years 3,462 (108 ) 3,354 2,089 (239 ) 1,850 Purchased software 7 years 3,200 (343 ) 2,857 3,200 (114 ) 3,086 Internally developed software 7 years 1,428 - 1,428 916 - 916 Total finite-lived intangible assets 28,006 (2,264 ) 25,742 26,121 (1,421 ) 24,700 Indefinite-lived intangible assets: Domain name Indefinite 2,226 - 2,226 2,226 - 2,226 Trade name Indefinite 1,400 - 1,400 - - - Total intangible assets $ 31,632 $ (2,264 ) $ 29,368 $ 28,347 $ (1,421 ) $ 26,926 Goodwill Goodwill represents the excess purchase price over the fair value of identifiable assets received attributable to business combinations. Goodwill is measured for impairment at least annually, or whenever events and circumstances arise that indicate an impairment may June 30, 2022 The table below summarizes our goodwill at December 31, 2021 six June 30, 2022 Goodwill balance at December 31, 2021 $ - Goodwill recorded on acquisition of Temporary Alternatives 375 Goodwill recorded on acquisition of Dubin 200 Goodwill recorded on acquisition of Northbound 500 Goodwill balance at June 30, 2022 $ 1,075 Earnings per Share We calculate basic earnings per share by dividing net income or loss available to common stockholders by the weighted average number of common shares outstanding. We do not June 30, 2022 June 30, 2021 We use the treasury stock method to calculate the diluted common shares outstanding which were as follows (in thousands): Three months ended Six months ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Weighted average number of common shares used in basic net income per common share 13,607 13,611 13,591 13,607 Dilutive effects of unvested restricted stock and stock options 84 253 95 227 Weighted average number of common shares used in diluted net income per common share 13,691 13,864 13,686 13,834 Fair Value Measures Fair value is the price that would be received to sell an asset, or paid to transfer a liability, in the principal or most advantageous market for the asset or liability in an ordinary transaction between market participants on the measurement date. Our policy on fair value measures requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The policy establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The policy prioritizes the inputs into three may Level 1: Level 2: Level 3: The carrying amounts of cash, accounts receivable, accounts payable and all other current liabilities approximate fair values due to their short-term nature. The fair value of notes receivable approximates the net book value and balances are reviewed for impairment at least annually. The fair value of the term loan payable approximates its carrying value. The fair value of impaired notes receivable are determined based on estimated future payments discounted back to present value using the notes effective interest rate. June 30, 2022 (in thousands) Total Level 1 Level 2 Level 3 Cash $ 1,128 $ 1,128 $ - $ - Notes receivable 3,946 - 3,946 - Accounts receivable 45,676 - 45,676 - Notes receivable - impaired 72 - - 72 Total assets at fair value $ 50,822 $ 1,128 $ 49,622 $ 72 Term loans payable $ 4,299 $ - $ 4,299 $ - Line of credit 2,839 - 2,839 - Total liabilities at fair value $ 7,138 $ - $ 7,138 $ - December 31, 2021 (in thousands) Total Level 1 Level 2 Level 3 Cash $ 1,256 $ 1,256 $ - $ - Notes receivable 4,027 - 4,027 - Accounts receivable 38,239 - 38,239 - Notes receivable - impaired 140 - 140 Total assets at fair value $ 43,662 $ 1,256 $ 42,266 $ 140 Term loan payable $ 3,066 $ - $ 3,066 $ - Line of credit 171 - 171 - Total liabilities at fair value $ 3,237 $ - $ 3,237 $ - For additional information related to our impaired notes receivable, see Note 10 Discontinued Operations Company-owned offices that have been disposed of by sale, disposed of other than by sale, or are classified as held-for-sale, are reported separately as discontinued operations. In addition, a newly acquired business that, upon acquisition, meets the held-for-sale criteria will be reported as discontinued operations. Accordingly, the assets and liabilities, operating results, and cash flows for these businesses are presented separate from our continuing operations for all periods presented in our consolidated financial statements and footnotes, unless indicated otherwise. The assets and liabilities of a discontinued operation held for sale are measured at the lower of the carrying value or fair value less cost to sell. Savings Plan We have a savings plan that qualifies under Section 401 401 may first 3% 3%, three June 30, 2022 June 30, 2021, six June 30, 2022 June 30, 2021, Reclassification Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no Recently Issued Accounting Pronouncements In June 2016, 2016 13, 326 not December 15, 2022, December 15, 2018, We do not |
Note 2 - Acquisitions
Note 2 - Acquisitions | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | Note 2 Business Combinations Snelling Staffing On March 1, 2021, January 29, 2021 ( 67 March 1, 2021, The following table summarizes the estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date. From the date of acquisition through December 31, 2021, No 2022. The following table summarizes the estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): Cash consideration $ 17,851 Accounts receivable $ 13,418 Workers' compensation deposit 7,200 Franchise agreements 11,034 Customer lists 1,690 Other current assets 100 Workers' compensation claims liability (4,891 ) Accrued payroll (2,100 ) Current liabilities (740 ) Other liabilities (2,239 ) Bargain purchase (5,621 ) Purchase price allocation $ 17,851 The bargain purchase is attributable to the financial position of the seller and because there were few suitable potential buyers. This gain is included in the line item, “Other miscellaneous income (expense),” in our consolidated statement of income. The following table presents unaudited pro forma information (in thousands, except per share data) assuming (a) the acquisition of Snelling had occurred on January 1, 2020, ( none 2 not three six June 30, 2022 Three months ended Six months ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Total revenue $ 9,288 $ 5,706 $ 17,433 $ 9,920 Net income 4,891 2,856 5,494 3,853 Basic earnings per share $ 0.36 $ 0.21 $ 0.40 $ 0.28 Basic weighted average shares outstanding 13,607 13,611 13,591 13,607 Diluted earnings per share $ 0.36 $ 0.21 $ 0.40 $ 0.28 Diluted weighted average shares outstanding 13,691 13,864 13,686 13,834 These calculations reflect increased amortization expense, increased payroll expense, the elimination of gains associated with the transaction, the elimination of transaction related costs, and the consequential tax effects that would have resulted had the acquisition closed on January 1, 2020. In connection with the acquisition, we sold the 10 locations that had been company-owned by Snelling located in Bakersfield, CA; Albany, NY; Arlington Heights, IL; Amherst, NY; Dallas, TX; Hayward, CA; Hoffman Estates, IL; Lathrop, CA; Ontario, CA; and Tracy, CA. Two of these locations were sold to franchisees. Four locations were sold to a third 10 12 12 36 March 31, 2021. Temporary Alternatives On January 24, 2022 January 10, 2022, The fair values of the assets acquired were determined based on information available to us. From the date of acquisition through June 30, 2022 third Cash consideration $ 6,707 Net working capital payable 336 Total consideration $ 7,043 Customer lists $ 4,000 Accounts receivable 2,668 Goodwill 375 Purchase price allocation $ 7,043 Goodwill represents the expected synergies with our existing business, the acquired assembled workforce, potential new customers, and future cash flows after the acquisition of Temporary Alternatives. Goodwill is deductible for income tax purposes. The following table presents unaudited pro forma information (in thousands, except per share data) assuming (a) the acquisition of Temporary Alternatives had occurred on January 1, 2021, ( none 2 not three six June 30, 2022 Three months ended Six months ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Total revenue $ 9,288 $ 5,984 $ 17,431 $ 9,665 Net income 4,590 2,916 6,237 6,854 Basic earnings per share $ 0.34 $ 0.21 $ 0.46 $ 0.50 Basic weighted average shares outstanding 13,607 13,611 13,591 13,607 Diluted earnings per share $ 0.34 $ 0.21 $ 0.46 $ 0.50 Diluted weighted average shares outstanding 13,691 13,864 13,686 13,834 These calculations reflect increased amortization expense, increased SG&A expense, the elimination of losses associated with the transaction, and the consequential tax effects that would have resulted had the acquisition closed on January 1, 2021. In connection with the acquisition, we sold certain assets related to the operations of the acquired locations. In connection with their purchase, the buyers executed franchise agreements with us and became franchisees. The aggregate sale price for the operating assets was approximately $2.9 million. In conjunction with the sale of assets acquired in this transaction, we recognized a loss of approximately $1.1 million which is reflected on the line item, "Other miscellaneous income (expense)," in our consolidated statement of income. The franchisee is a related party - see Note 3 third three June 30, 2022 The Dubin Group, Inc., and Dubin Workforce Solutions On February 21, 2022 January 19, 2022 The fair values of the assets acquired were determined based on information available to us. From the date of acquisition through June 30, 2022 third Cash consideration $ 2,100 Note payable & net working capital payable 362 Total consideration $ 2,462 Customer relationships $ 1,600 Customer lists 200 Accounts receivable 462 Goodwill 200 Purchase price allocation $ 2,462 Goodwill represents the expected synergies with our existing business, the acquired assembled workforce, potential new customers, and future cash flows after the acquisition of Dubin. Goodwill is deductible for income tax purposes. The following table presents unaudited pro forma information (in thousands, except per share data) assuming (a) the acquisition of Dubin had occurred on January 1, 2021, ( none 2 not three six June 30, 2022 Three months ended Six months ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Total revenue $ 9,288 $ 7,407 $ 17,785 $ 10,564 Net income 4,386 3,738 5,466 6,953 Basic earnings per share $ 0.32 $ 0.27 $ 0.40 $ 0.51 Basic weighted average shares outstanding 13,607 13,611 13,591 13,607 Diluted earnings per share $ 0.32 $ 0.27 $ 0.40 $ 0.50 Diluted weighted average shares outstanding 13,691 13,864 13,686 13,834 These calculations reflect increased amortization expense, increased payroll expense, increased SG&A expense, the elimination of losses associated with the transaction, and the consequential tax effects that would have resulted had the acquisition closed on January 1, 2021. In connection with the acquisition, we divided Dubin into separate businesses and sold certain assets related to the operations of one third three June 30, 2022 six June 30, 2022 The remaining assets related to the operations of the other acquired locations have not June 30, 2022 Three months ended Six months ended June 30, 2022 June 30, 2022 Revenue $ 426 $ 580 Cost of staffing services 248 330 Gross profit 178 250 SG&A 1 14 Net income before tax 177 236 Provision for income taxes 43 57 Net income $ 134 $ 179 Northbound Executive Search On February 28, 2022 January 25, 2022, The fair values of the assets acquired and the liabilities assumed were determined based on information available to us. From the date of acquisition through June 30, 2022 third Cash consideration $ 9,858 Note payable 1,500 Total consideration $ 11,358 Customer relationships $ 7,700 Trade name 1,400 Accounts receivable 3,331 Other current assets 94 Goodwill 500 Current liabilities assumed (1,667 ) Purchase price allocation $ 11,358 Goodwill represents the expected synergies with our existing business, the acquired assembled workforce, potential new customers, and future cash flows after the acquisition of Northbound. Goodwill is deductible for income tax purposes. The following table presents unaudited pro forma information (in thousands, except per share data) assuming (a) the acquisition of Northbound had occurred on January 1, 2021, ( none 2 not three six June 30, 2022 Three months ended Six months ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Total revenue $ 9,288 $ 5,972 $ 17,621 $ 9,573 Net income 4,579 2,918 6,547 6,806 Basic earnings per share $ 0.34 $ 0.21 $ 0.48 $ 0.50 Basic weighted average shares outstanding 13,607 13,611 13,591 13,607 Diluted earnings per share $ 0.34 $ 0.21 $ 0.48 $ 0.49 Diluted weighted average shares outstanding 13,691 13,864 13,686 13,834 These calculations reflect increased amortization expense, increased SG&A expense, the elimination of losses associated with the transaction, and the consequential tax effects that would have resulted had the acquisition closed on January 1, 2021. In connection with the Northbound acquisition, we entered into an amortizing term loan from the seller for $1.5 million scheduled to mature on March 1, 2025 April 1, 2022 March 1, 2025. may Immediately after the acquisition, we sold certain assets related to the operations of the acquired locations. In connection with their purchase, the buyers executed franchise agreements with us and became franchisees. The aggregate ale price for the operating assets was $6.4 million. In conjunction with the sale of assets acquired in this transaction, we recognized a loss of approximately $1.3 million which is reflected on the line item, "Other miscellaneous income (expense)," in our consolidated statement of income. The franchisee is a related party - see Note 3 third three June 30, 2022 Asset Acquisitions LINK Staffing On March 22, 2021, February 12, 2021 ( one Cash consideration $ 11,123 Franchise agreements 10,886 Notes receivable 237 Purchase price allocation $ 11,123 We determined the LINK transaction was an asset acquisition for accounting purposes as substantially all of the fair value of the gross assets acquired was concentrated in the franchise agreements. Accordingly, no We assigned six six Recruit Media On October 1, 2021 October 1, 2021 ( Cash consideration $ 3,283 Liabilities assumed 1,044 Transaction costs 23 Total consideration $ 4,350 Purchased software 3,200 Domain name 2,226 Deferred tax liability (1,076 ) Purchase price allocation $ 4,350 We determined the Recruit Media transaction was an asset acquisition for accounting purposes as it did not no Dental Power On December 6, 2021, November 2, 2021 ( 46 The following table summarizes the values of the identifiable assets acquired as of the acquisition date (in thousands): Cash consideration $ 1,480 Contingent consideration 382 Total consideration $ 1,862 Customer lists $ 1,862 The contingent consideration consists of estimated future payments based on the achievement of performance metrics over the following 3 We determined the Dental Power transaction was an asset acquisition for accounting purposes as substantially all of the fair value of the gross assets acquired was concentrated in the customer list. Accordingly, no |
Note 3 - Related Party Transact
Note 3 - Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 3 Prior to entering into a related party transaction which is disclosable pursuant to Item 404 may may Several significant shareholders and directors of HQI also own portions of Jackson Insurance Agency, Bass Underwriters, Inc., Insurance Technologies, Inc., and a number of our franchisees (in whole or in part). Jackson Insurance Agency ("Jackson Insurance") and Bass Underwriters, Inc. ("Bass") Edward Jackson, a member of our Board and significant stockholder, and a member of Mr. Jackson’s immediate family own Jackson Insurance. Mr. Jackson, Richard Hermanns, our CEO, Chairman of our Board, and most significant stockholder, and irrevocable trusts set up by each of them, collectively own a majority of Bass, a large managing general agent. In March 2021, 2019 Jackson Insurance and Bass brokered property, casualty, general liability, and cybersecurity insurance for a series of predecessor entities (“Legacy HQ”) prior to the merger with Command Center, Inc. (the “Merger”). Since July 15, 2019, During the three June 30, 2022 June 30, 2021 six June 30, 2022 June 30, 2021 9% 15% Insurance Technologies, Inc. ("Insurance Technologies") Mr. Jackson, Mr. Hermanns, and irrevocable trusts set up by each of them, collectively own a majority of Insurance Technologies, an IT development and security firm. On October 24, 2019, During the three June 30, 2022 June 30, 2021 six June 30, 2022 June 30, 2021 June, 2021 third 2021. The Worlds Franchisees Mr. Jackson and immediate family members of Mr. Hermanns have significant ownership interests in certain of our franchisees (the “Worlds Franchisees”). There were 25 Worlds Franchisees at June 30, 2022 Concurrent with the Snelling acquisition in 2021 Other transactions regarding the Worlds Franchisees are summarized below (in thousands): Three months ended Six months ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Franchisee royalties $ 2,181 $ 1,164 $ 4,265 $ 2,777 Balances regarding the Worlds Franchisees are summarized below (in thousands): June 30, 2022 December 31, 2021 Due to franchisee $ 2,118 $ 535 Risk management incentive program liability 593 703 |
Note 4 - Line of Credit and Ter
Note 4 - Line of Credit and Term Loans | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 4 In June 2021, may June 30, 2022, All loans made under the line of credit are scheduled to mature on June 29, 2026. June 30, 2022 3.4%. 1.25:1.00, not 3.0:1.0, twelve June 30, 2022 At June 30, 2022 Note 5 Compensation Insurance and Reserves. The Truist term loan is scheduled to mature on June 29, 2036 June 30, 2022 3.7% June 29, 2036. The Truist line of credit and the Truist term loan are cross collateralized, cross defaulted and coterminous. In connection with the Northbound acquisition, we entered into an amortizing term loan from the seller for $1.5 million scheduled to mature on March 1, 2025 April 1, 2022 March 1, 2025. may |
Note 5 - Workers' Compensation
Note 5 - Workers' Compensation Insurance and Reserves | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Workers Compensation Insurance and Reserves Disclosure [Text Block] | Note 5 Compensation Insurance and Reserves Beginning in March 2014, July 15, 2019, July 15, 2019. July 15, 2019 Command Center, the predecessor entity that acquired Legacy HQ in 2019, March 1, 2020, $500 one $500 $750 $500 July 15, 2019, Under these high deductible programs, we are effectively self-insured. Per our contractual agreements with ACE, we must provide collateral deposits of approximately $10.7 |
Note 6 - Stockholders' Equity
Note 6 - Stockholders' Equity | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | Note 6 Equity Dividend In the third 2020, 2022 2021 Declaration date Dividend Total paid March 1, 2021 $ 0.05 $ 680 June 1, 2021 0.06 817 September 1, 2021 0.06 822 December 1, 2021 0.06 822 March 1, 2022 0.06 822 June 1, 2022 0.06 827 |
Note 7 - Stock Based Compensati
Note 7 - Stock Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | Note 7 Employee Stock Incentive Plan In December 2019, 2019 “2019 2019 no 2019 No may no may no may twelve may 2019 June 2020 In September 2019, second During the first six 2022 , we issued approximately 6 thousand shares valued at approximately $97 thousand under this program. During the first six 2021 , we issued approximately 4 thousand shares valued at approximately $61 thousand under this program. In the first six 2022 2019 three Also in the first six 2022 2019 three 2019 first In the first six 2021, 2019 three first six 2021, The following table summarizes our restricted stock outstanding at December 31, 2021 six June 30, 2022 Shares Weighted average grant date price Non-vested, December 31, 2021 196 $ 11.26 Granted 82 17.68 Vested (98 ) 12.14 Non-vested, June 30, 2022 180 13.73 Stock options that were outstanding at Command Center were deemed to be issued on the date of the Merger. Outstanding awards continue to remain in effect according to the terms of the Command Center 2008 2016 June 30, 2022 December 31, 2021 The following table summarizes our stock options outstanding at December 31, 2021 six June 30, 2022 Number of shares underlying options Weighted average exercise price per share Weighted average grant date fair value Outstanding, December 31, 2021 13 $ 5.47 $ 2.98 Granted - - - Outstanding, June 30, 2022 13 5.47 2.98 There were no non-vested stock options outstanding at June 30, 2022 or at December 31, 2021. The following table summarizes information about our outstanding stock options, and reflects the intrinsic value recalculated based on the closing price of our common stock of $14.09 at June 30, 2022 Number of shares underlying options Weighted average exercise price per share Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding and exercisable 13 $ 5.47 5.7 $ 111 At June 30, 2022 |
Note 8 - Commitments and Contin
Note 8 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 8 Franchise Acquisition Indebtedness New franchisees financed the purchase of several offices with promissory notes. In some instances, this financing resulted in certain franchises being considered VIEs. We have determined that we are not not June 30, 2022 December 31, 2021 Legal Proceedings From time to time, we are involved in various legal and administrative proceedings. Based on information currently available to us, we do not not no June 30, 2022 |
Note 9 - Income Tax
Note 9 - Income Tax | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 9 Income tax expense during interim periods is based on applying an estimated annual effective income tax rate to year-to-date income, plus any significant unusual or infrequently occurring items which are recorded in the interim period. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not may . Our effective tax rate for continuing operations during the three June 30, 2022 June 30, 2021 six June 30, 2022 June 30, 2021 21.0% We use an intra-period tax allocation is to allocate total income tax expense (or benefit) to the different components of continuing operations and discontinued operations. This allocation uses a with and without methodology to determine income tax expense for discontinued operations. Tax expense allocated to discontinued operations was $43 thousand for the three June 30, 2022, six June 30, 2022. no 2021. |
Note 10 - Notes Receivable
Note 10 - Notes Receivable | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 10 Notes from Franchisees Several franchisees borrowed funds from us primarily to finance the initial purchase price of office assets, including intangible assets. Notes outstanding, net of allowance for losses, were approximately $4.0 million and $3.9 million as of June 30, 2022 December 31, 2021 three June 30, 2022 June 30, 2021 six June 30, 2022 June 30, 2021 We estimate the allowance for losses for franchisees separately from the allowance for losses from non-franchisees because of the level of detailed sales information available to us with respect to the former. Based on our review of the financial condition of the borrowers, the underlying collateral value, and the potential future impact of the economy on certain borrowers’ economic performance and estimated future cash flows, we have established an allowance of approximately $405 thousand as of June 30, 2022 December 31, 2021 The following table summarizes our notes receivable balance to franchisees (in thousands): June 30, 2022 December 31, 2021 Note receivable $ 4,352 $ 4,268 Allowance for losses (405 ) (405 ) Notes receivable, net $ 3,947 $ 3,863 Notes from Non-Franchisees In connection with the Snelling acquisition, we sold certain California locations that had been company-owned by Snelling to the California purchaser (the “California Purchaser”). These locations are permitted to operate under the Snelling trademark pursuant to a license agreement paying us a royalty of 9% of their gross margin. The aggregate sale price for these locations consisted of cash, a promissory note that bears interest at 6.0% per annum, plus the right to receive a portion of revenue generated, subject to certain conditions being satisfied (the "California Conditions"). Similarly, in connection with the LINK acquisition, we assigned certain franchise agreements we purchased in the transaction, all located in California, to the California Purchaser. These franchisees operate pursuant to a LINK trademark sublicense agreement whereby they pay us 9% of the gross margin of their offices in exchange for a sublicense to utilize the LINK tradename. During 2020, 19 may three June 30, 2022 third June 30, 2022 2022. For notes to non-franchisees, we recognized interest income on this note of approximately $-0- and $96 thousand during the three June 30, 2022 June 30, 2021 six June 30, 2022 June 30, 2021 The following table summarizes our non-franchisee note receivable balance that has been deemed impaired (in thousands): June 30, 2022 December 31, 2021 Note receivable $ 1,805 $ 1,805 Allowance for losses (1,734 ) (1,501 ) Notes receivable, net $ 71 $ 304 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Nature of Operations, Policy [Policy Text Block] | Nature of Business HireQuest, Inc. (together with its subsidiaries, “HQI, the “Company,” “we,” us,” or “our”) is a nationwide franchisor of offices providing direct-dispatch and commercial staffing solutions in the light industrial and blue-collar segments of the staffing industry and traditional commercial staffing. Our franchisees provide various types of temporary personnel through two On January 24, 2022 three February 21, 2022 February 28, 2022 On March 1, 2021, March 22, 2021, October 1, 2021 December 6, 2021 For additional information related to these transactions, see Note 2 As of June 30, 2022 2 |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation We have prepared the accompanying consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, the accompanying consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the periods presented. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report filed on Form 10 December 31, 2021 not |
Consolidation, Policy [Policy Text Block] | Consolidation The consolidated financial statements include the accounts of HQI and all of its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated. U.S. GAAP requires the primary beneficiary of a variable interest entity (“VIE”) to consolidate that entity. To be the primary beneficiary of a VIE, an entity must have both the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits from the VIE that are significant to the beneficiary. We provide acquisition financing to some of our franchisees that could result in our having to absorb losses. This results in some franchisees being considered VIEs. We have reviewed our relationship with each of these franchisees and determined that we are not not |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Actual results could differ from those estimates. Significant estimates and assumptions underlie our workers’ compensation claim liabilities, our workers’ compensation risk management incentive program accrual, our deferred taxes, the reserve for losses on notes receivable, and the estimated fair value of assets acquired and liabilities assumed, including goodwill. |
Receivable [Policy Text Block] | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consist of amounts due for labor services from customers of franchisees, accounts receivable purchased in acquisitions, and accounts receivable originating at, or attributable to, company-owned locations. We own the accounts receivable from labor services provided by our franchisees until they age beyond a date agreed upon with each respective franchisee between 42 84 not For staffing services provided by company-owned offices, and for purchased accounts receivable, we record accounts receivable at face value less an allowance for doubtful accounts. We determine the allowance for doubtful accounts based on historical write-off experience, the age of the receivable, other qualitative factors and extenuating circumstances, and current economic data which represents our best estimate of the amount of probable losses on these accounts receivable, if any. We review the allowance for doubtful accounts periodically and write off past due balances when it is probable that the receivable will not June 30, 2022 December 31, 2021 |
Revenue [Policy Text Block] | Revenue Recognition Our primary source of revenue comes from royalty fees based on the operation of our franchised offices. Royalty fees from our HireQuest Direct business model are based on a percentage of sales for services our franchisees provide to customers, which ranges from 6.0% to 8.0%. Royalty fees from our HireQuest business line, including HireQuest franchisees, DriverQuest franchisees, the Northbound franchisee, the HireQuest Health franchisees, and Snelling and LINK franchisees who executed new franchise agreements upon closing, are 4.5% of the payroll we fund plus 18.0% of the gross margin for the territory. Royalty fees from the Snelling and LINK franchise agreements assumed and not For franchised locations, we recognize revenue when we satisfy our performance obligations. Our performance obligations primarily take the form of a franchise license and promised services. Promised services consist primarily of paying temporary employees, completing all statutory payroll related obligations, and providing workers' compensation insurance on behalf of temporary employees. Because these performance obligations are interrelated, we do not For owned locations, we account for revenue when both parties to the contract have approved the contract, the rights and obligations of the parties are identified, payment terms are identified, and collectability of consideration is probable. Revenue derived from owned locations is recognized at the time we satisfy our performance obligation. Our contracts have a single performance obligation, which is the transfer of services. Because our customers receive and consume the benefits of our services simultaneously, our performance obligations are satisfied when our services are provided. Revenue from owned locations is reported net of customer credits, discounts, and taxes collected from customers that are remitted to taxing authorities. Our customers are invoiced every week and we rarely require payment prior to the delivery of service. Substantially all of our contracts include payment terms of 30 no not one Below are summaries of our franchise royalties disaggregated by business model (in thousands): Three months ended Six months ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 HireQuest Direct model $ 4,417 $ 3,006 $ 7,949 $ 5,912 HireQuest, Snelling, DriverQuest, HireQuest Health, and Northbound 2,803 2,445 5,844 2,798 Total $ 7,220 $ 5,451 $ 13,793 $ 8,710 Service revenue, which forms the other component of our total revenue, consists of interest we charge our franchisees on overdue customer accounts receivable, trademark license fees, and other fees for optional services we provide. We recognize interest income based on the effective interest rate applied to the outstanding principal balance of overdue accounts. Trademark license fees are charged to some locations that utilize our intellectual property that are not |
Notes Receivables Policy Text Block | Notes Receivable Notes receivable from franchisees consist primarily of amounts due to us related to the financing of franchised locations. We report notes receivable from franchisees at the principal balance outstanding less an allowance for losses. We charge interest at a fixed rate and interest income is calculated by applying the effective rate to the outstanding principal balance. Notes receivable are generally secured by the assets of each location and the ownership interests in the franchise. We monitor the financial condition of our debtors and record provisions for estimated losses when we believe it is probable that our debtors will be unable to make their required payments. We evaluate the potential impairment of notes receivable based on various analyses, including estimated discounted future cash flows, at least annually and whenever events or changes in circumstances indicate that the carrying amount of the assets may not June 30, 2022 December 31, 2021 Notes receivable from non-franchisees consist primarily of amounts due to us from the sale of non-core assets acquired after an acquisition. We report notes receivable from non-franchisees at the principal balance outstanding less an allowance for losses. We charge interest at a fixed rate and interest income is calculated by applying the effective rate to the outstanding principal balance. Notes receivable are generally unsecured. We monitor the financial condition of our debtors and evaluate the potential impairment of notes receivable based on various analyses, including estimated discounted future cash flows, at least annually and whenever events or changes in circumstances indicate that the carrying amount of the assets may not June 30, 2022 December 31, 2021 |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Intangible Assets Intangible assets acquired are recorded at fair value. We test our finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not may not not 2022 2021. Finite-lived intangible assets are amortized using the straight-line method over their estimated useful lives, which ranges from 7 to 15 years. Our finite-lived intangible assets include acquired franchise agreements, acquired customer lists, internally developed software, and purchased software. Our indefinite-lived intangible assets include acquired domain names and trade names. For additional information related to significant additions to intangible assets, see Note 2 Intangible assets internally developed are measured at cost. We capitalize costs to develop or purchase computer software for internal use which are incurred during the application development stage. These costs include fees paid to third not The table below reflects information related to our intangible assets (in thousands). June 30, 2022 December 31, 2021 Estimated useful life Gross Accumulated amortization Net Gross Accumulated amortization Net Finite-lived intangible assets: Franchise agreements 15 years $ 19,916 $ (1,813 ) $ 18,103 $ 19,916 $ (1,068 ) $ 18,848 Customer lists 10 years 3,462 (108 ) 3,354 2,089 (239 ) 1,850 Purchased software 7 years 3,200 (343 ) 2,857 3,200 (114 ) 3,086 Internally developed software 7 years 1,428 - 1,428 916 - 916 Total finite-lived intangible assets 28,006 (2,264 ) 25,742 26,121 (1,421 ) 24,700 Indefinite-lived intangible assets: Domain name Indefinite 2,226 - 2,226 2,226 - 2,226 Trade name Indefinite 1,400 - 1,400 - - - Total intangible assets $ 31,632 $ (2,264 ) $ 29,368 $ 28,347 $ (1,421 ) $ 26,926 |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill represents the excess purchase price over the fair value of identifiable assets received attributable to business combinations. Goodwill is measured for impairment at least annually, or whenever events and circumstances arise that indicate an impairment may June 30, 2022 The table below summarizes our goodwill at December 31, 2021 six June 30, 2022 Goodwill balance at December 31, 2021 $ - Goodwill recorded on acquisition of Temporary Alternatives 375 Goodwill recorded on acquisition of Dubin 200 Goodwill recorded on acquisition of Northbound 500 Goodwill balance at June 30, 2022 $ 1,075 |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Share We calculate basic earnings per share by dividing net income or loss available to common stockholders by the weighted average number of common shares outstanding. We do not June 30, 2022 June 30, 2021 We use the treasury stock method to calculate the diluted common shares outstanding which were as follows (in thousands): Three months ended Six months ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Weighted average number of common shares used in basic net income per common share 13,607 13,611 13,591 13,607 Dilutive effects of unvested restricted stock and stock options 84 253 95 227 Weighted average number of common shares used in diluted net income per common share 13,691 13,864 13,686 13,834 |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measures Fair value is the price that would be received to sell an asset, or paid to transfer a liability, in the principal or most advantageous market for the asset or liability in an ordinary transaction between market participants on the measurement date. Our policy on fair value measures requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The policy establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The policy prioritizes the inputs into three may Level 1: Level 2: Level 3: The carrying amounts of cash, accounts receivable, accounts payable and all other current liabilities approximate fair values due to their short-term nature. The fair value of notes receivable approximates the net book value and balances are reviewed for impairment at least annually. The fair value of the term loan payable approximates its carrying value. The fair value of impaired notes receivable are determined based on estimated future payments discounted back to present value using the notes effective interest rate. June 30, 2022 (in thousands) Total Level 1 Level 2 Level 3 Cash $ 1,128 $ 1,128 $ - $ - Notes receivable 3,946 - 3,946 - Accounts receivable 45,676 - 45,676 - Notes receivable - impaired 72 - - 72 Total assets at fair value $ 50,822 $ 1,128 $ 49,622 $ 72 Term loans payable $ 4,299 $ - $ 4,299 $ - Line of credit 2,839 - 2,839 - Total liabilities at fair value $ 7,138 $ - $ 7,138 $ - December 31, 2021 (in thousands) Total Level 1 Level 2 Level 3 Cash $ 1,256 $ 1,256 $ - $ - Notes receivable 4,027 - 4,027 - Accounts receivable 38,239 - 38,239 - Notes receivable - impaired 140 - 140 Total assets at fair value $ 43,662 $ 1,256 $ 42,266 $ 140 Term loan payable $ 3,066 $ - $ 3,066 $ - Line of credit 171 - 171 - Total liabilities at fair value $ 3,237 $ - $ 3,237 $ - For additional information related to our impaired notes receivable, see Note 10 |
Discontinued Operations, Policy [Policy Text Block] | Discontinued Operations Company-owned offices that have been disposed of by sale, disposed of other than by sale, or are classified as held-for-sale, are reported separately as discontinued operations. In addition, a newly acquired business that, upon acquisition, meets the held-for-sale criteria will be reported as discontinued operations. Accordingly, the assets and liabilities, operating results, and cash flows for these businesses are presented separate from our continuing operations for all periods presented in our consolidated financial statements and footnotes, unless indicated otherwise. The assets and liabilities of a discontinued operation held for sale are measured at the lower of the carrying value or fair value less cost to sell. |
Postemployment Benefit Plans, Policy [Policy Text Block] | Savings Plan We have a savings plan that qualifies under Section 401 401 may first 3% 3%, three June 30, 2022 June 30, 2021, six June 30, 2022 June 30, 2021, |
Reclassification, Comparability Adjustment [Policy Text Block] | Reclassification Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements In June 2016, 2016 13, 326 not December 15, 2022, December 15, 2018, We do not |
Note 1 - Overview and Summary_2
Note 1 - Overview and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three months ended Six months ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 HireQuest Direct model $ 4,417 $ 3,006 $ 7,949 $ 5,912 HireQuest, Snelling, DriverQuest, HireQuest Health, and Northbound 2,803 2,445 5,844 2,798 Total $ 7,220 $ 5,451 $ 13,793 $ 8,710 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | June 30, 2022 December 31, 2021 Estimated useful life Gross Accumulated amortization Net Gross Accumulated amortization Net Finite-lived intangible assets: Franchise agreements 15 years $ 19,916 $ (1,813 ) $ 18,103 $ 19,916 $ (1,068 ) $ 18,848 Customer lists 10 years 3,462 (108 ) 3,354 2,089 (239 ) 1,850 Purchased software 7 years 3,200 (343 ) 2,857 3,200 (114 ) 3,086 Internally developed software 7 years 1,428 - 1,428 916 - 916 Total finite-lived intangible assets 28,006 (2,264 ) 25,742 26,121 (1,421 ) 24,700 Indefinite-lived intangible assets: Domain name Indefinite 2,226 - 2,226 2,226 - 2,226 Trade name Indefinite 1,400 - 1,400 - - - Total intangible assets $ 31,632 $ (2,264 ) $ 29,368 $ 28,347 $ (1,421 ) $ 26,926 |
Schedule of Goodwill [Table Text Block] | Goodwill balance at December 31, 2021 $ - Goodwill recorded on acquisition of Temporary Alternatives 375 Goodwill recorded on acquisition of Dubin 200 Goodwill recorded on acquisition of Northbound 500 Goodwill balance at June 30, 2022 $ 1,075 |
Schedule of Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Table Text Block] | Three months ended Six months ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Weighted average number of common shares used in basic net income per common share 13,607 13,611 13,591 13,607 Dilutive effects of unvested restricted stock and stock options 84 253 95 227 Weighted average number of common shares used in diluted net income per common share 13,691 13,864 13,686 13,834 |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block] | June 30, 2022 (in thousands) Total Level 1 Level 2 Level 3 Cash $ 1,128 $ 1,128 $ - $ - Notes receivable 3,946 - 3,946 - Accounts receivable 45,676 - 45,676 - Notes receivable - impaired 72 - - 72 Total assets at fair value $ 50,822 $ 1,128 $ 49,622 $ 72 Term loans payable $ 4,299 $ - $ 4,299 $ - Line of credit 2,839 - 2,839 - Total liabilities at fair value $ 7,138 $ - $ 7,138 $ - December 31, 2021 (in thousands) Total Level 1 Level 2 Level 3 Cash $ 1,256 $ 1,256 $ - $ - Notes receivable 4,027 - 4,027 - Accounts receivable 38,239 - 38,239 - Notes receivable - impaired 140 - 140 Total assets at fair value $ 43,662 $ 1,256 $ 42,266 $ 140 Term loan payable $ 3,066 $ - $ 3,066 $ - Line of credit 171 - 171 - Total liabilities at fair value $ 3,237 $ - $ 3,237 $ - |
Note 2 - Acquisitions (Tables)
Note 2 - Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Cash consideration $ 17,851 Accounts receivable $ 13,418 Workers' compensation deposit 7,200 Franchise agreements 11,034 Customer lists 1,690 Other current assets 100 Workers' compensation claims liability (4,891 ) Accrued payroll (2,100 ) Current liabilities (740 ) Other liabilities (2,239 ) Bargain purchase (5,621 ) Purchase price allocation $ 17,851 Cash consideration $ 6,707 Net working capital payable 336 Total consideration $ 7,043 Customer lists $ 4,000 Accounts receivable 2,668 Goodwill 375 Purchase price allocation $ 7,043 Cash consideration $ 2,100 Note payable & net working capital payable 362 Total consideration $ 2,462 Customer relationships $ 1,600 Customer lists 200 Accounts receivable 462 Goodwill 200 Purchase price allocation $ 2,462 Cash consideration $ 9,858 Note payable 1,500 Total consideration $ 11,358 Customer relationships $ 7,700 Trade name 1,400 Accounts receivable 3,331 Other current assets 94 Goodwill 500 Current liabilities assumed (1,667 ) Purchase price allocation $ 11,358 Cash consideration $ 11,123 Franchise agreements 10,886 Notes receivable 237 Purchase price allocation $ 11,123 Cash consideration $ 3,283 Liabilities assumed 1,044 Transaction costs 23 Total consideration $ 4,350 Purchased software 3,200 Domain name 2,226 Deferred tax liability (1,076 ) Purchase price allocation $ 4,350 Cash consideration $ 1,480 Contingent consideration 382 Total consideration $ 1,862 Customer lists $ 1,862 |
Business Acquisition, Pro Forma Information [Table Text Block] | Three months ended Six months ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Total revenue $ 9,288 $ 5,706 $ 17,433 $ 9,920 Net income 4,891 2,856 5,494 3,853 Basic earnings per share $ 0.36 $ 0.21 $ 0.40 $ 0.28 Basic weighted average shares outstanding 13,607 13,611 13,591 13,607 Diluted earnings per share $ 0.36 $ 0.21 $ 0.40 $ 0.28 Diluted weighted average shares outstanding 13,691 13,864 13,686 13,834 Three months ended Six months ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Total revenue $ 9,288 $ 5,984 $ 17,431 $ 9,665 Net income 4,590 2,916 6,237 6,854 Basic earnings per share $ 0.34 $ 0.21 $ 0.46 $ 0.50 Basic weighted average shares outstanding 13,607 13,611 13,591 13,607 Diluted earnings per share $ 0.34 $ 0.21 $ 0.46 $ 0.50 Diluted weighted average shares outstanding 13,691 13,864 13,686 13,834 These calculations reflect increased amortization expense, increased SG&A expense, the elimination of losses associated with the transaction, and the consequential tax effects that would have resulted had the acquisition closed on January 1, 2021. Three months ended Six months ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Total revenue $ 9,288 $ 7,407 $ 17,785 $ 10,564 Net income 4,386 3,738 5,466 6,953 Basic earnings per share $ 0.32 $ 0.27 $ 0.40 $ 0.51 Basic weighted average shares outstanding 13,607 13,611 13,591 13,607 Diluted earnings per share $ 0.32 $ 0.27 $ 0.40 $ 0.50 Diluted weighted average shares outstanding 13,691 13,864 13,686 13,834 Three months ended Six months ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Total revenue $ 9,288 $ 5,972 $ 17,621 $ 9,573 Net income 4,579 2,918 6,547 6,806 Basic earnings per share $ 0.34 $ 0.21 $ 0.48 $ 0.50 Basic weighted average shares outstanding 13,607 13,611 13,591 13,607 Diluted earnings per share $ 0.34 $ 0.21 $ 0.48 $ 0.49 Diluted weighted average shares outstanding 13,691 13,864 13,686 13,834 |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Three months ended Six months ended June 30, 2022 June 30, 2022 Revenue $ 426 $ 580 Cost of staffing services 248 330 Gross profit 178 250 SG&A 1 14 Net income before tax 177 236 Provision for income taxes 43 57 Net income $ 134 $ 179 |
Note 3 - Related Party Transa_2
Note 3 - Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of Related Party Transactions [Table Text Block] | Three months ended Six months ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Franchisee royalties $ 2,181 $ 1,164 $ 4,265 $ 2,777 June 30, 2022 December 31, 2021 Due to franchisee $ 2,118 $ 535 Risk management incentive program liability 593 703 |
Note 6 - Stockholders' Equity (
Note 6 - Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Dividends Declared [Table Text Block] | Declaration date Dividend Total paid March 1, 2021 $ 0.05 $ 680 June 1, 2021 0.06 817 September 1, 2021 0.06 822 December 1, 2021 0.06 822 March 1, 2022 0.06 822 June 1, 2022 0.06 827 |
Note 7 - Stock Based Compensa_2
Note 7 - Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | Shares Weighted average grant date price Non-vested, December 31, 2021 196 $ 11.26 Granted 82 17.68 Vested (98 ) 12.14 Non-vested, June 30, 2022 180 13.73 |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Number of shares underlying options Weighted average exercise price per share Weighted average grant date fair value Outstanding, December 31, 2021 13 $ 5.47 $ 2.98 Granted - - - Outstanding, June 30, 2022 13 5.47 2.98 There were no non-vested stock options outstanding at June 30, 2022 or at December 31, 2021. |
Schedule of Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value [Table Text Block] | Number of shares underlying options Weighted average exercise price per share Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding and exercisable 13 $ 5.47 5.7 $ 111 |
Note 10 - Notes Receivable (Tab
Note 10 - Notes Receivable (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | June 30, 2022 December 31, 2021 Note receivable $ 4,352 $ 4,268 Allowance for losses (405 ) (405 ) Notes receivable, net $ 3,947 $ 3,863 June 30, 2022 December 31, 2021 Note receivable $ 1,805 $ 1,805 Allowance for losses (1,734 ) (1,501 ) Notes receivable, net $ 71 $ 304 |
Note 1 - Overview and Summary_3
Note 1 - Overview and Summary of Significant Accounting Policies (Details Textual) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Feb. 28, 2022 USD ($) | Jan. 24, 2022 USD ($) | Jan. 10, 2022 USD ($) | Dec. 06, 2021 USD ($) | Oct. 01, 2021 USD ($) | Mar. 22, 2021 USD ($) | Mar. 01, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) shares | Dec. 31, 2021 USD ($) | |
Number of Offices | 223 | 223 | ||||||||||
Number of States in which Entity Operates | 38 | 38 | ||||||||||
Entity Number of Employees | 75,000 | 75,000 | ||||||||||
Accounts Receivable, Allowance for Credit Loss, Ending Balance | $ 58 | $ 58 | $ 26 | |||||||||
Royalty Fees, Percentage of Payroll | 4.50% | 4.50% | ||||||||||
Revenue, Percentage of Gross Margin | 18% | 18% | ||||||||||
License Fee, Percentage of Gross Margin | 9% | 9% | ||||||||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | $ 405 | $ 405 | 405 | |||||||||
Impairment Reserve on Notes Receivable | 1,700 | 1,700 | 1,500 | |||||||||
Impairment of Intangible Assets (Excluding Goodwill), Total | $ 0 | $ 0 | ||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | shares | 193 | 328 | ||||||||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4% | |||||||||||
Defined Contribution Plan, Cost | $ 17 | $ 16 | $ 30 | $ 27 | ||||||||
First Three Percent [Member] | ||||||||||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100% | |||||||||||
Beyond Three Percent [Member] | ||||||||||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50% | |||||||||||
Minimum [Member] | ||||||||||||
Percentage of Sales for Services | 6% | 6% | ||||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 7 years | |||||||||||
Minimum [Member] | Franchise [Member] | ||||||||||||
Percentage of Sales for Services | 5% | 5% | ||||||||||
Maximum [Member] | ||||||||||||
Percentage of Sales for Services | 8% | 8% | ||||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 15 years | |||||||||||
Maximum [Member] | Franchise [Member] | ||||||||||||
Percentage of Sales for Services | 8% | 8% | ||||||||||
Snelling Staffing Acquisition [Member] | ||||||||||||
Business Combination, Consideration Transferred, Total | $ 17,851 | |||||||||||
Temporary Alternatives [Member] | ||||||||||||
Significant Changes, Franchises Purchased During Period | 3 | |||||||||||
Payments to Acquire Productive Assets, Total | $ 7,000 | $ 7,000 | ||||||||||
Dubin [Member] | ||||||||||||
Payments to Acquire Productive Assets, Total | 2,500 | |||||||||||
Northbound [Member] | ||||||||||||
Payments to Acquire Productive Assets, Total | $ 11,400 | $ 11,400 | ||||||||||
Link Staffing Acquisition [Member] | ||||||||||||
Significant Changes, Franchises Purchased During Period | 35 | |||||||||||
Payments to Acquire Productive Assets, Total | $ 11,123 | |||||||||||
Asset Acquisition, Consideration Transferred, Total | $ 11,123 | |||||||||||
License Fee, Percentage of Gross Margin | 9% | 9% | 9% | |||||||||
Recruit Media [Member] | ||||||||||||
Payments to Acquire Productive Assets, Total | $ 3,283 | $ 11,100 | ||||||||||
Asset Acquisition, Consideration Transferred, Total | $ 4,350 | |||||||||||
Dental Power Staffing [Member] | ||||||||||||
Payments to Acquire Productive Assets, Total | $ 1,480 | |||||||||||
Asset Acquisition, Consideration Transferred, Total | $ 1,862 |
Note 1 - Overview and Summary_4
Note 1 - Overview and Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue | $ 7,220 | $ 5,451 | $ 13,793 | $ 8,710 |
HireQuest Direct [Member] | ||||
Revenue | 4,417 | 3,006 | 7,949 | 5,912 |
HireQuest, Snelling, DriverQuest, & Northbound [Member] | ||||
Revenue | $ 2,803 | $ 2,445 | $ 5,844 | $ 2,798 |
Note 1 - Overview and Summary_5
Note 1 - Overview and Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Total finite-lived intangible assets | $ 28,006 | $ 26,121 |
Finite-lived, accumulated amortization | (2,264) | (1,421) |
Total finite-lived intangible assets, net | 25,742 | 24,700 |
Total intangible assets | 31,632 | 28,347 |
Total intangible assets | 29,368 | 26,926 |
Domain Name [Member] | ||
indefinite-lived intangible assets | 2,226 | 2,226 |
Trade Names [Member] | ||
indefinite-lived intangible assets | $ 1,400 | 0 |
Franchise Agreements [Member] | ||
Estimated useful life (Year) | 15 years | |
Total finite-lived intangible assets | $ 19,916 | 19,916 |
Finite-lived, accumulated amortization | (1,813) | (1,068) |
Total finite-lived intangible assets, net | $ 18,103 | 18,848 |
Customer Lists [Member] | ||
Estimated useful life (Year) | 10 years | |
Total finite-lived intangible assets | $ 3,462 | 2,089 |
Finite-lived, accumulated amortization | (108) | (239) |
Total finite-lived intangible assets, net | $ 3,354 | 1,850 |
Purchased Software [Member] | ||
Estimated useful life (Year) | 7 years | |
Total finite-lived intangible assets | $ 3,200 | 3,200 |
Finite-lived, accumulated amortization | (343) | (114) |
Total finite-lived intangible assets, net | $ 2,857 | 3,086 |
Internally Developed Software [Member] | ||
Estimated useful life (Year) | 7 years | |
Total finite-lived intangible assets | $ 1,428 | 916 |
Finite-lived, accumulated amortization | 0 | 0 |
Total finite-lived intangible assets, net | $ 1,428 | $ 916 |
Note 1 - Overview and Summary_6
Note 1 - Overview and Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands | 4 Months Ended | 5 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2022 | |
Goodwill balance | $ 0 | |||
Goodwill balance | $ 1,075 | $ 1,075 | $ 1,075 | 1,075 |
Temporary Alternatives [Member] | ||||
Goodwill balance | 375 | |||
Goodwill recorded on acquisition | $ 375 | 375 | ||
Dubin [Member] | ||||
Goodwill recorded on acquisition | $ 200 | 200 | ||
Northbound [Member] | ||||
Goodwill balance | 500 | |||
Goodwill recorded on acquisition | $ 500 | $ 500 |
Note 1 - Overview and Summary_7
Note 1 - Overview and Summary of Significant Accounting Policies - Diluted Common Shares Outstanding (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Basic (in shares) | 13,607 | 13,611 | 13,591 | 13,607 |
Dilutive effects of unvested restricted stock and stock options (in shares) | 84 | 253 | 95 | 227 |
Weighted average number of common shares used in diluted net income per common share (in shares) | 13,691 | 13,864 | 13,686 | 13,834 |
Note 1 - Overview and Summary_8
Note 1 - Overview and Summary of Significant Accounting Policies - Fair Value of Cash, Notes Receivable and Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Cash | $ 1,128 | $ 1,256 |
Notes receivable, net | 4,000 | 3,900 |
Fair Value, Inputs, Level 1 [Member] | ||
Cash | 1,128 | 1,256 |
Notes receivable, net | 0 | 0 |
Accounts receivable | 0 | 0 |
Notes receivable - impaired | 0 | 0 |
Total assets at fair value | 1,128 | 1,256 |
Line of credit | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Term Loan [Member] | ||
Term loans payable | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Cash | 0 | 0 |
Notes receivable, net | 3,946 | 4,027 |
Accounts receivable | 45,676 | 38,239 |
Notes receivable - impaired | 0 | |
Total assets at fair value | 49,622 | 42,266 |
Line of credit | 2,839 | 171 |
Total liabilities at fair value | 7,138 | 3,237 |
Fair Value, Inputs, Level 2 [Member] | Term Loan [Member] | ||
Term loans payable | 4,299 | 3,066 |
Fair Value, Inputs, Level 3 [Member] | ||
Cash | 0 | 0 |
Notes receivable, net | 0 | 0 |
Accounts receivable | 0 | 0 |
Notes receivable - impaired | 72 | 140 |
Total assets at fair value | 72 | 140 |
Line of credit | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Term Loan [Member] | ||
Term loans payable | 0 | 0 |
Reported Value Measurement [Member] | ||
Cash | 1,128 | 1,256 |
Notes receivable, net | 3,946 | 4,027 |
Accounts receivable | 45,676 | 38,239 |
Notes receivable - impaired | 72 | 140 |
Total assets at fair value | 50,822 | 43,662 |
Line of credit | 2,839 | 171 |
Total liabilities at fair value | 7,138 | 3,237 |
Reported Value Measurement [Member] | Term Loan [Member] | ||
Term loans payable | $ 4,299 | $ 3,066 |
Note 2 - Acquisitions (Details
Note 2 - Acquisitions (Details Textual) $ in Thousands | 3 Months Ended | 4 Months Ended | 5 Months Ended | 6 Months Ended | 10 Months Ended | ||||||||||||||
Feb. 28, 2022 USD ($) | Feb. 21, 2022 USD ($) | Jan. 24, 2022 USD ($) | Jan. 19, 2022 USD ($) | Jan. 10, 2022 USD ($) | Dec. 06, 2021 USD ($) | Oct. 01, 2021 USD ($) | Mar. 22, 2021 USD ($) | Mar. 01, 2021 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Mar. 31, 2021 | |
Gross Profit, Total | $ 8,341 | $ 5,707 | $ 15,724 | $ 9,109 | |||||||||||||||
Proceeds from Divestiture of Businesses | $ 9,317 | $ 997 | |||||||||||||||||
License Fee, Percentage of Gross Margin | 9% | 9% | 9% | 9% | 9% | ||||||||||||||
Temporary Alternatives [Member] | |||||||||||||||||||
Significant Changes, Franchises Purchased During Period | 3 | ||||||||||||||||||
Payments to Acquire Productive Assets, Total | $ 7,000 | $ 7,000 | |||||||||||||||||
Northbound [Member] | |||||||||||||||||||
Proceeds from Divestiture of Businesses | $ 6,400 | ||||||||||||||||||
Payments to Acquire Productive Assets, Total | $ 11,400 | $ 11,400 | |||||||||||||||||
Link Staffing Acquisition [Member] | |||||||||||||||||||
Significant Changes, Franchises Purchased During Period | 35 | ||||||||||||||||||
Payments to Acquire Productive Assets, Total | $ 11,123 | ||||||||||||||||||
License Fee, Percentage of Gross Margin | 9% | 9% | 9% | 9% | 9% | 9% | |||||||||||||
Asset Acquisition, Consideration Transferred, Total | $ 11,123 | ||||||||||||||||||
Recruit Media [Member] | |||||||||||||||||||
Payments to Acquire Productive Assets, Total | $ 3,283 | 11,100 | |||||||||||||||||
Asset Acquisition, Consideration Transferred, Total | $ 4,350 | ||||||||||||||||||
Dental Power Staffing [Member] | |||||||||||||||||||
Payments to Acquire Productive Assets, Total | $ 1,480 | ||||||||||||||||||
Asset Acquisition, Consideration Transferred, Total | $ 1,862 | ||||||||||||||||||
Other Miscellaneous Income [Member] | Northbound [Member] | |||||||||||||||||||
Gain (Loss) on Disposition of Assets Acquired in Acquisition | (1,300) | ||||||||||||||||||
Other Miscellaneous Income [Member] | Northbound [Member] | Previously Reported [Member] | |||||||||||||||||||
Gain (Loss) on Disposition of Assets Acquired in Acquisition | (1,700) | ||||||||||||||||||
Other Miscellaneous Income [Member] | Northbound [Member] | Revision of Prior Period, Adjustment [Member] | |||||||||||||||||||
Gain (Loss) on Disposition of Assets Acquired in Acquisition | $ 389 | ||||||||||||||||||
Other Miscellaneous Income [Member] | Link Staffing Acquisition [Member] | |||||||||||||||||||
Gain (Loss) on Disposition of Assets Acquired in Acquisition | $ (1,900) | ||||||||||||||||||
Term Loan in Connection with Northbound Acquisition [Member] | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4% | ||||||||||||||||||
Debt Instrument, Face Amount | $ 1,500 | ||||||||||||||||||
Debt Instrument, Term (Month) | 36 months | ||||||||||||||||||
Snelling Staffing Acquisition [Member] | |||||||||||||||||||
Business Combination, Consideration Transferred, Total | $ 17,851 | ||||||||||||||||||
Business Combination, Advances for Accrued Payroll | $ 2,100 | ||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Assets | $ 1,100 | ||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Other Current Assets | (9) | ||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | 77 | ||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Other Liabilities | 217 | ||||||||||||||||||
Business Combination, Bargain Purchase, Gain Recognized, Amount | $ 662 | ||||||||||||||||||
Gross Profit, Total | 681 | $ 1,900 | |||||||||||||||||
Number of Locations Sold | 10 | ||||||||||||||||||
Financing Receivable, before Allowance for Credit Loss, Total | $ 1,000 | ||||||||||||||||||
Proceeds from Divestiture of Businesses | $ 1,000 | ||||||||||||||||||
Number of Remaining Locations Owned | 0 | ||||||||||||||||||
Royalty Fee, Percentage of Gross Margin | 9% | 9% | |||||||||||||||||
Snelling Staffing Acquisition [Member] | Other Miscellaneous Income [Member] | |||||||||||||||||||
Gain (Loss) on Disposition of Assets Acquired in Acquisition | $ 638 | ||||||||||||||||||
Snelling Staffing Acquisition [Member] | ONTARIO | |||||||||||||||||||
Precentage of Revenue Generated From Locations | 1.50% | ||||||||||||||||||
Snelling Staffing Acquisition [Member] | Tracy and Lathrop [Member] | |||||||||||||||||||
Precentage of Revenue Generated From Locations | 2.50% | ||||||||||||||||||
Snelling Staffing Acquisition [Member] | Princeton [Member] | |||||||||||||||||||
Precentage of Revenue Generated From Locations | 2% | ||||||||||||||||||
Snelling Staffing Acquisition [Member] | Promissory Note in Connection With Acquisition [Member] | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6% | ||||||||||||||||||
Temporary Alternatives [Member] | |||||||||||||||||||
Business Combination, Consideration Transferred, Total | $ 7,043 | ||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Assets | $ (3) | ||||||||||||||||||
Gross Profit, Total | 141 | $ 190 | |||||||||||||||||
Proceeds from Divestiture of Businesses | 2,900 | ||||||||||||||||||
Significant Changes, Franchises Purchased During Period | 3 | ||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | (375) | ||||||||||||||||||
Goodwill, Acquired During Period | $ 375 | 375 | |||||||||||||||||
Temporary Alternatives [Member] | Other Miscellaneous Income [Member] | |||||||||||||||||||
Gain (Loss) on Disposition of Assets Acquired in Acquisition | (1,100) | ||||||||||||||||||
Temporary Alternatives [Member] | Other Miscellaneous Income [Member] | Previously Reported [Member] | |||||||||||||||||||
Gain (Loss) on Disposition of Assets Acquired in Acquisition | (1,500) | ||||||||||||||||||
Temporary Alternatives [Member] | Other Miscellaneous Income [Member] | Revision of Prior Period, Adjustment [Member] | |||||||||||||||||||
Gain (Loss) on Disposition of Assets Acquired in Acquisition | 375 | ||||||||||||||||||
Dubin [Member] | |||||||||||||||||||
Business Combination, Consideration Transferred, Total | $ 2,462 | ||||||||||||||||||
Gross Profit, Total | 47 | 53 | |||||||||||||||||
Proceeds from Divestiture of Businesses | 350 | ||||||||||||||||||
Gain (Loss) on Disposition of Assets Acquired in Acquisition | $ 2,500 | ||||||||||||||||||
Goodwill, Acquired During Period | $ 200 | 200 | |||||||||||||||||
Dubin [Member] | Customer Relationships [Member] | |||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | 972 | ||||||||||||||||||
Dubin [Member] | Customer Lists [Member] | |||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | $ (772) | ||||||||||||||||||
Dubin [Member] | Other Miscellaneous Income [Member] | |||||||||||||||||||
Gain (Loss) on Disposition of Assets Acquired in Acquisition | 150 | ||||||||||||||||||
Dubin [Member] | Other Miscellaneous Income [Member] | Previously Reported [Member] | |||||||||||||||||||
Gain (Loss) on Disposition of Assets Acquired in Acquisition | $ (478) | ||||||||||||||||||
Dubin [Member] | Other Miscellaneous Income [Member] | Revision of Prior Period, Adjustment [Member] | |||||||||||||||||||
Gain (Loss) on Disposition of Assets Acquired in Acquisition | 628 | ||||||||||||||||||
Northbound [Member] | |||||||||||||||||||
Business Combination, Consideration Transferred, Total | $ 11,358 | ||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Assets | $ 308 | ||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Other Current Assets | (34) | ||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Other Liabilities | 79 | ||||||||||||||||||
Gross Profit, Total | $ 351 | 451 | |||||||||||||||||
Goodwill, Acquired During Period | 500 | $ 500 | |||||||||||||||||
Northbound [Member] | Customer Relationships [Member] | |||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | (389) | ||||||||||||||||||
Northbound [Member] | Trade Names [Member] | |||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | $ (111) |
Note 2 - Acquisitions - Identif
Note 2 - Acquisitions - Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 6 Months Ended | |||||||||
Feb. 28, 2022 | Feb. 21, 2022 | Jan. 24, 2022 | Dec. 06, 2021 | Oct. 01, 2021 | Mar. 22, 2021 | Mar. 01, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Cash consideration | $ 19,063 | $ 28,814 | ||||||||
Cash consideration | 19,063 | $ 28,814 | ||||||||
Goodwill | $ 1,075 | $ 0 | ||||||||
Link Staffing Acquisition [Member] | ||||||||||
Cash consideration | $ 11,123 | |||||||||
Notes receivable | 237 | |||||||||
Asset Acquisition, Consideration Transferred, Total | 11,123 | |||||||||
Payments to Acquire Productive Assets, Total | 11,123 | |||||||||
Total consideration | 11,123 | |||||||||
Link Staffing Acquisition [Member] | Franchise Agreements [Member] | ||||||||||
Franchise agreements | 10,886 | |||||||||
Recruit Media [Member] | ||||||||||
Cash consideration | $ 3,283 | 11,100 | ||||||||
Asset Acquisition, Consideration Transferred, Total | 4,350 | |||||||||
Payments to Acquire Productive Assets, Total | 3,283 | $ 11,100 | ||||||||
Liabilities assumed | 1,044 | |||||||||
Transaction costs | 23 | |||||||||
Total consideration | 4,350 | |||||||||
Purchased software | 3,200 | |||||||||
Domain name | 2,226 | |||||||||
Deferred tax liability | $ (1,076) | |||||||||
Dental Power Staffing [Member] | ||||||||||
Cash consideration | $ 1,480 | |||||||||
Franchise agreements | 1,862 | |||||||||
Asset Acquisition, Consideration Transferred, Total | 1,862 | |||||||||
Payments to Acquire Productive Assets, Total | 1,480 | |||||||||
Total consideration | 1,862 | |||||||||
Contingent consideration | $ 382 | |||||||||
Snelling Staffing Acquisition [Member] | ||||||||||
Cash consideration | $ 17,851 | |||||||||
Accounts receivable | 13,418 | |||||||||
Workers' compensation deposit | 7,200 | |||||||||
Other current assets | 100 | |||||||||
Workers' compensation claims liability | (4,891) | |||||||||
Accrued payroll | (2,100) | |||||||||
Current liabilities | (740) | |||||||||
Other liabilities | (2,239) | |||||||||
Bargain purchase | (5,621) | |||||||||
Business Combination, Consideration Transferred, Total | 17,851 | |||||||||
Cash consideration | 17,851 | |||||||||
Total consideration | 17,851 | |||||||||
Snelling Staffing Acquisition [Member] | Franchise Agreements [Member] | ||||||||||
Identifiable intangible assets | 11,034 | |||||||||
Snelling Staffing Acquisition [Member] | Customer Lists [Member] | ||||||||||
Identifiable intangible assets | $ 1,690 | |||||||||
Temporary Alternatives [Member] | ||||||||||
Cash consideration | $ 6,707 | |||||||||
Accounts receivable | 2,668 | |||||||||
Business Combination, Consideration Transferred, Total | 7,043 | |||||||||
Cash consideration | 6,707 | |||||||||
Net working capital payable | 336 | |||||||||
Total consideration | 7,043 | |||||||||
Goodwill | 375 | |||||||||
Purchase price allocation | 7,043 | |||||||||
Note payable & net working capital payable | 336 | |||||||||
Temporary Alternatives [Member] | Customer Lists [Member] | ||||||||||
Identifiable intangible assets | $ 4,000 | |||||||||
Dubin [Member] | ||||||||||
Cash consideration | $ 2,100 | |||||||||
Accounts receivable | 462 | |||||||||
Business Combination, Consideration Transferred, Total | 2,462 | |||||||||
Cash consideration | 2,100 | |||||||||
Net working capital payable | 362 | |||||||||
Total consideration | 2,462 | |||||||||
Goodwill | 200 | |||||||||
Note payable & net working capital payable | 362 | |||||||||
Dubin [Member] | Customer Lists [Member] | ||||||||||
Identifiable intangible assets | 200 | |||||||||
Dubin [Member] | Customer Relationships [Member] | ||||||||||
Identifiable intangible assets | $ 1,600 | |||||||||
Northbound [Member] | ||||||||||
Cash consideration | $ 9,858 | |||||||||
Accounts receivable | 3,331 | |||||||||
Other current assets | 94 | |||||||||
Current liabilities | (1,667) | |||||||||
Business Combination, Consideration Transferred, Total | 11,358 | |||||||||
Cash consideration | 9,858 | |||||||||
Net working capital payable | 1,500 | |||||||||
Total consideration | 11,358 | |||||||||
Goodwill | 500 | |||||||||
Note payable & net working capital payable | 1,500 | |||||||||
Northbound [Member] | Customer Relationships [Member] | ||||||||||
Identifiable intangible assets | 7,700 | |||||||||
Northbound [Member] | Trade Names [Member] | ||||||||||
Identifiable intangible assets | $ 1,400 |
Note 2 - Acquisitions - Pro For
Note 2 - Acquisitions - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Snelling Staffing Acquisition [Member] | ||||
Total revenue | $ 9,288 | $ 5,706 | $ 17,433 | $ 9,920 |
Net income | $ 4,891 | $ 2,856 | $ 5,494 | $ 3,853 |
Basic earnings per share (in dollars per share) | $ 0.36 | $ 0.21 | $ 0.40 | $ 0.28 |
Basic weighted average shares outstanding (in shares) | 13,607 | 13,611 | 13,591 | 13,607 |
Diluted earnings per share (in dollars per share) | $ 0.36 | $ 0.21 | $ 0.40 | $ 0.28 |
Diluted weighted average shares outstanding (in shares) | 13,691 | 13,864 | 13,686 | 13,834 |
Temporary Alternatives [Member] | ||||
Total revenue | $ 9,288 | $ 5,984 | $ 17,431 | $ 9,665 |
Net income | $ 4,590 | $ 2,916 | $ 6,237 | $ 6,854 |
Basic earnings per share (in dollars per share) | $ 0.34 | $ 0.21 | $ 0.46 | $ 0.50 |
Basic weighted average shares outstanding (in shares) | 13,607 | 13,611 | 13,591 | 13,607 |
Diluted earnings per share (in dollars per share) | $ 0.34 | $ 0.21 | $ 0.46 | $ 0.50 |
Diluted weighted average shares outstanding (in shares) | 13,691 | 13,864 | 13,686 | 13,834 |
Dubin [Member] | ||||
Total revenue | $ 9,288 | $ 7,407 | $ 17,785 | $ 10,564 |
Net income | $ 4,386 | $ 3,738 | $ 5,466 | $ 6,953 |
Basic earnings per share (in dollars per share) | $ 0.32 | $ 0.27 | $ 0.40 | $ 0.51 |
Basic weighted average shares outstanding (in shares) | 13,607 | 13,611 | 13,591 | 13,607 |
Diluted earnings per share (in dollars per share) | $ 0.32 | $ 0.27 | $ 0.40 | $ 0.50 |
Diluted weighted average shares outstanding (in shares) | 13,691 | 13,864 | 13,686 | 13,834 |
Northbound [Member] | ||||
Total revenue | $ 9,288 | $ 5,972 | $ 17,621 | $ 9,573 |
Net income | $ 4,579 | $ 2,918 | $ 6,547 | $ 6,806 |
Basic earnings per share (in dollars per share) | $ 0.34 | $ 0.21 | $ 0.48 | $ 0.50 |
Basic weighted average shares outstanding (in shares) | 13,607 | 13,611 | 13,591 | 13,607 |
Diluted earnings per share (in dollars per share) | $ 0.34 | $ 0.21 | $ 0.48 | $ 0.49 |
Diluted weighted average shares outstanding (in shares) | 13,691 | 13,864 | 13,686 | 13,834 |
Note 2 - Acquisitions - Discont
Note 2 - Acquisitions - Discontinued Operations (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 03, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Provision for income taxes | $ 43 | $ 57 | |||
Net income | $ 134 | $ 0 | 179 | $ 0 | |
Discontinued Operations [Member] | |||||
Revenue | 426 | 580 | |||
Cost of staffing services | 248 | 330 | |||
Gross profit | 178 | 250 | |||
SG&A | 1 | 14 | |||
Net income before tax | 177 | 236 | |||
Provision for income taxes | 43 | 57 | |||
Net income | $ 134 | $ 179 |
Note 3 - Related Party Transa_3
Note 3 - Related Party Transactions (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 01, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | |
Franchised and Owned Branch Locations | 225 | |||||
Proceeds from Divestiture of Businesses | $ 9,317 | $ 997 | ||||
Snelling Staffing Acquisition [Member] | ||||||
Proceeds from Divestiture of Businesses | $ 1,000 | |||||
Jackson Insurance Agency and Bass Underwriters Inc [Member] | ||||||
Notes Receivable, Related Parties | $ 5,300 | |||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 145 | $ 0 | 252 | 584 | ||
Insurance Technologies [Member] | ||||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 27 | $ 90 | $ 37 | $ 193 | ||
Worlds Franchisees [Member] | ||||||
Number of Worlds Franchises | 25 | |||||
Franchised and Owned Branch Locations | 64 | |||||
Worlds Franchisees [Member] | Temporary Alternatives and Northbound [Member] | ||||||
Number of Worlds Franchises | 2 | |||||
Franchised and Owned Branch Locations | 4 | |||||
Proceeds from Divestiture of Businesses | $ 2,900 | |||||
Gain (Loss) on Disposition of Assets Acquired in Acquisition | (1,100) | |||||
Worlds Franchisees [Member] | Northbound [Member] | ||||||
Proceeds from Divestiture of Businesses | 6,400 | |||||
Gain (Loss) on Disposition of Assets Acquired in Acquisition | (1,300) | |||||
Worlds Franchisees [Member] | Snelling Staffing Acquisition [Member] | ||||||
Proceeds from Divestiture of Businesses | 81 | |||||
Gain (Loss) on Disposition of Assets Acquired in Acquisition | $ 81 |
Note 3 - Related Party Transa_4
Note 3 - Related Party Transactions - Related Party Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Due to franchisees | $ 12,254 | $ 12,254 | $ 7,496 | ||
Worlds Franchisees [Member] | |||||
Franchisee royalties | 2,181 | $ 1,164 | 4,265 | $ 2,777 | |
Due to franchisees | 2,118 | 2,118 | 535 | ||
Risk management incentive program liability | $ 593 | $ 593 | $ 703 |
Note 4 - Line of Credit and T_2
Note 4 - Line of Credit and Term Loans (Details Textual) $ in Millions | 1 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jul. 31, 2019 USD ($) | |
Line of Credit Facility, Interest Rate at Period End | 3.40% | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |||
Line of Credit, Fixed Coverage Ratio | 1.25 | |||
Line of Credit, Leverage Ratio | 3% | |||
Proceeds from Issuance of Debt | $ 3.2 | |||
Obligations to Workers' Compensation Insurance Carrier [Member] | ||||
Letters of Credit Outstanding, Amount | 10.7 | |||
Paycard Funding Account [Member] | ||||
Letters of Credit Outstanding, Amount | 0.5 | |||
Northbound Term Loan [Member] | ||||
Letters of Credit Outstanding, Amount | $ 0.2 | |||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||
Base Rate [Member] | Minimum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |||
Base Rate [Member] | Maximum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||
Term Loan [Member] | ||||
Debt Instrument, Face Amount | $ 3.2 | |||
Debt Instrument, Interest Rate, Effective Percentage | 3.70% | |||
Debt Instrument, Term (Month) | 15 years | |||
Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2% | |||
Term Loan in Connection with Northbound Acquisition [Member] | ||||
Debt Instrument, Face Amount | $ 1.5 | |||
Debt Instrument, Term (Month) | 36 months | |||
Debt Instrument, Interest Rate, Stated Percentage | 4% | |||
Truist [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 60 | $ 30 | ||
Letter of Credit [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 20 |
Note 5 - Workers' Compensatio_2
Note 5 - Workers' Compensation Insurance and Reserves (Details Textual) $ in Millions | Mar. 14, 2021 USD ($) |
Maximum [Member] | |
Insurance for Covered Losses and Expenses | $ 0.5 |
Note 6 - Stockholders' Equity -
Note 6 - Stockholders' Equity - Common Share Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |||||||
Jun. 01, 2022 | Mar. 01, 2022 | Dec. 01, 2021 | Sep. 01, 2021 | Jun. 01, 2021 | Mar. 01, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Dividend (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.05 | ||
Total paid | $ 827 | $ 822 | $ 822 | $ 822 | $ 817 | $ 680 | $ 1,650 | $ 1,497 |
Note 7 - Stock Based Compensa_3
Note 7 - Stock Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | ||
Sep. 30, 2019 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Jun. 30, 2022 | Dec. 31, 2019 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares) | 13,000 | 13,000 | ||||
Share Price (in dollars per share) | $ 14.09 | $ 14.09 | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 1,400 | $ 1,400 | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 3 years 4 months 24 days | |||||
Restricted Stock [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares) | 98 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 82 | |||||
The 2019 Plan [Member] | Share-Based Payment Arrangement, Option [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares) | 1,500,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant Pursuant to Exercise of Incentive Stock Options (in shares) | 1,000,000 | |||||
The 2019 Plan [Member] | Share-Based Payment Arrangement, Option [Member] | Employee or Consultant [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares) | 250,000 | |||||
The 2019 Plan [Member] | Share-Based Payment Arrangement, Option [Member] | Non-employee Director [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares) | 50,000 | |||||
The 2019 Plan [Member] | Restricted Stock [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Issued in Period (in shares) | 1,296 | |||||
The 2019 Plan [Member] | Restricted Stock [Member] | Board of Directors [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Issued in Period (in shares) | 7,776 | 42,211 | ||||
Stock Issued During Period, Value, Issued for Services | $ 138 | $ 845 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares) | 6,480 | 40,176 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Month) | 3 months | 3 months | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 2,035 | |||||
The 2019 Plan [Member] | Restricted Stock [Member] | An Employee [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Issued in Period (in shares) | 44,871 | |||||
Stock Issued During Period, Value, Issued for Services | $ 764 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares) | 41,066 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Month) | 3 months | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 3,805 | |||||
The 2019 Plan [Member] | Restricted Stock [Member] | Workforce for Services [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Issued in Period (in shares) | 28,735 | |||||
Stock Issued During Period, Value, Issued for Services | $ 537 | |||||
Share Purchase Match Program [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Matching Percentage of Common Stock Purchased | 20% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Matching of Common Stock Purchased per Individual Within a Calendar Year | $ 25 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Issued in Period (in shares) | 6,000 | 4,000 | ||||
Shares Granted, Value, Share-Based Payment Arrangement, before Forfeiture | $ 97 | $ 61 | ||||
Share Purchase Match Program [Member] | Restricted Stock [Member] | Board of Directors [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Issued in Period (in shares) | 2,280 | |||||
Stock Issued During Period, Value, Issued for Services | $ 34 |
Note 7 - Stock Based Compensa_4
Note 7 - Stock Based Compensation - Summary of Restricted Stock Activity (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Vested, shares (in shares) | (13,000) | (13,000) |
Restricted Stock [Member] | ||
Non-vested, shares (in shares) | 196 | |
Non-vested, Weighted average grant date price (in dollars per share) | $ 11.26 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 82 | |
Granted, Weighted average grant date price (in dollars per share) | $ 17.68 | |
Vested, shares (in shares) | (98) | |
Vested, Weighted average grant date price (in dollars per share) | $ 12.14 | |
Non-vested, shares (in shares) | 180 | 196 |
Non-vested, Weighted average grant date price (in dollars per share) | $ 13.73 | $ 11.26 |
Note 7 - Stock Based Compensa_5
Note 7 - Stock Based Compensation - Summary of Stock Options (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Outstanding, shares (in shares) | shares | 13 |
Outstanding, Weighted average exercise price per shar (in dollars per share) | $ / shares | $ 5.47 |
Outstanding, Weighted average grant date fair value | 2.98 |
Granted, shares (in shares) | shares | 0 |
Granted, Weighted average exercise price per shar (in dollars per share) | $ / shares | $ 0 |
Granted, Weighted average grant date fair value (in dollars per share) | $ / shares | $ 0 |
Outstanding, shares (in shares) | shares | 13 |
Outstanding, Weighted average grant date fair value | 2.98 |
Note 7 - Stock Based Compensa_6
Note 7 - Stock Based Compensation - Summary of Intrinsic Value (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Outstanding, number of shares underling options (in shares) | 13 | 13 |
Outstanding, weighted average exercise price per share (in dollars per share) | $ 5.47 | $ 5.47 |
Outstanding, weighted average remaining contractual life (Year) | 5 years 8 months 12 days | |
Outstanding, aggregate intrinsic value | $ 111 |
Note 8 - Commitments and Cont_2
Note 8 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Due from Affiliates | $ 3.1 | $ 2.9 |
Note 9 - Income Tax (Details Te
Note 9 - Income Tax (Details Textual) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 03, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 15.10% | 20.10% | 14.90% | 1.30% | |
Discontinued Operation, Tax Effect of Discontinued Operation | $ 43 | $ 57 |
Note 10 - Notes Receivable (Det
Note 10 - Notes Receivable (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Mar. 01, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Mar. 22, 2021 | |
Financing Receivable, after Allowance for Credit Loss, Total | $ 4,000 | $ 4,000 | $ 3,900 | ||||
Interest Income, Operating, Total | 54 | $ 96 | 147 | $ 231 | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | $ 405 | $ 405 | $ 405 | ||||
License Fee, Percentage of Gross Margin | 9% | 9% | |||||
Link Staffing Acquisition [Member] | |||||||
License Fee, Percentage of Gross Margin | 9% | 9% | 9% | ||||
Receivable in Connection With Sale of California Locations [Member] | |||||||
Financing Receivable, after Allowance for Credit Loss, Total | $ 71 | $ 71 | |||||
Notes Receivable, Interest Fixed Rate | 6% | ||||||
Additional Impairment on Financing Receivable | $ 233 | ||||||
Notes From Non-franchisees [member] | |||||||
Interest Income, Operating, Total | $ 0 | $ 96 | $ 41 | $ 231 | |||
Snelling Staffing Acquisition [Member] | |||||||
Royalty Fee, Percentage of Gross Margin | 9% | 9% | |||||
Minimum [Member] | |||||||
Notes Receivable, Interest Fixed Rate | 6% | ||||||
Maximum [Member] | |||||||
Notes Receivable, Interest Fixed Rate | 10% |
Note 10 - Notes Receivable - No
Note 10 - Notes Receivable - Notes Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Allowance for losses | $ (405) | $ (405) |
Notes receivable, net | 4,000 | 3,900 |
Notes Receivable to Franchisees [Member] | ||
Note receivable | 4,352 | 4,268 |
Allowance for losses | (405) | (405) |
Notes receivable, net | 3,947 | 3,863 |
HQI_Impaired [Member] | ||
Note receivable | 1,805 | 1,805 |
Allowance for losses | (1,734) | (1,501) |
Notes receivable, net | $ 71 | $ 304 |