ShiftPixy Inc. (NASD: PIXY), a provider of PEO services and developer of an online staffing app that it plans to release this year, reported revenue rose 14.6% in its fiscal first quarter ended Nov. 30 compared to the year-ago quarter. The Irvine, Calif.-based firm targets the restaurant and hospitality industry in Southern California. However, the company reported a net loss of $3.3 million compared to net income of $378,099 in the first quarter of its last fiscal year.

In a filing with the US Securities and Exchange Commission, SiftPixy noted increased costs came from additional worksite employees. The company also said it added two clients in the janitorial business, serving 200 worksite employees, for which the cost of workers’ compensation is triple the average cost of coverage for employees in other industries in which ShiftPixy operates. The company also noted an increase in operating expenses attributable to the development costs for its new technology platform to $1.9 million in the first quarter from zero in the year-ago quarter.

The company has accumulated losses since its inception of approximately $12.7 million, according to the SEC filing.

ShiftPixy raised $12 million last year in an IPO in June. Later, CFO Stephen DeSantis stepped down effective Oct. 20.

Share price and market cap

Shares in ShiftPixy fell 5.87% to $3.85 as of 12:29 p.m. Eastern time. The company had a market cap of $110.73 million.