Revenue Growth - QXO's consolidated net revenue for Q2 2024 increased by $1.28 million or 9.7% year-over-year, and for the first six months, it increased by $2.59 million or 9.8%[89] - Software product revenue rose due to the expansion of Sage Intacct and Accumatica product lines, while service revenue grew from hosting application services and consulting practices[89] Cost and Expenses - Cost of revenue for Q2 2024 increased by $673,000 or 8.3%, with a margin expansion to 39.8% compared to 39.1% in the prior year[90] - Selling, general and administrative expenses surged by $5.31 million or 117.3% in Q2 2024, primarily due to new senior management salaries and severance payments[91] - Depreciation and amortization expense increased by $57,000 or 27.9% in Q2 2024, attributed to higher amortization from the acquisition of JCS in 2023[92] - Adjusted EBITDA for the second quarter of 2024 was $(1,207,000), a decline from $705,000 in the same quarter of 2023, primarily due to increased employee-related costs[95] Investment and Financing - The company closed an equity investment on June 6, 2024, generating gross proceeds of $1.0 billion from the issuance of 1,000,000 shares of Convertible Perpetual Preferred Stock[97] - On July 19, 2024, the company completed a private placement, raising approximately $3.5 billion from the sale of 340,932,212 shares of common stock[97] - A subsequent private placement on July 25, 2024, generated approximately $620 million from the sale of 67,833,699 shares of common stock[98] - The company declared a cash dividend of $17.4 million to stockholders, funded by proceeds from the equity investment[98] - Cash provided by financing activities was $965.9 million, a significant increase from $531,000 used in the same period last year, due to the equity investment[100] Financial Position - For the six months ended June 30, 2024, the company reported a net loss of $591,000 compared to a net income of $344,000 for the same period in 2023[95] - As of June 30, 2024, the company's cash balance was $971.3 million, which increased to approximately $5.0 billion following the private placements[99] - The company has no outstanding debt obligations and believes its liquidity is sufficient to support operations over the next 12 months[99] Strategic Focus - QXO aims to create a tech-forward leader in the $800 billion building products distribution industry, targeting tens of billions in annual revenue over the next decade[81] - The company is focused on fostering recurring revenue and customer retention through a multi-pronged growth strategy, including sales and acquisitions[82] - QXO's legacy business includes five core components, with a significant portion of service revenue coming from ongoing customer relationships and flexible revenue options[82] - The company has expanded its footprint to nearly every U.S. state, enhancing its operational platform and creating additional revenue streams[86] Cash Flow - Cash used in operating activities increased by $359,000 year-over-year, attributed to higher personnel costs[100]

Financial Performance - Total revenue for Q2 2024 was $14.54 million, a 9.6% increase from $13.26 million in Q2 2023[1] - Software product revenue increased to $3.78 million, up 14.5% from $3.30 million year-over-year[1] - Service and other revenue rose to $10.76 million, a 7.9% increase compared to $9.96 million in the same period last year[1] - The net loss for Q2 2024 was ($591,000), compared to a net income of $344,000 in Q2 2023, representing a significant shift in performance[1] - Adjusted EBITDA for Q2 2024 was ($1.21) million, a decline from $705,000 in Q2 2023, attributed to higher employee-related costs[2] - Total revenue for the first half of 2024 was $28.98 million, a 9.8% increase from $26.39 million in the first half of 2023[2] - Total revenue for QXO, Inc. increased to $14,540,000 in Q2 2024, up 9.7% from $13,257,000 in Q2 2023[15] - Software product revenue rose to $3,776,000, a 14.5% increase compared to $3,298,000 in the same period last year[15] - Service and other revenue reached $10,764,000, reflecting a 8.1% growth from $9,959,000 year-over-year[15] - Operating expenses surged to $10,096,000 in Q2 2024, a significant increase of 113.5% from $4,729,000 in Q2 2023[15] - Net loss for Q2 2024 was $591,000, compared to a net income of $344,000 in Q2 2023[15] - Adjusted EBITDA for Q2 2024 was $(1,207,000), a decline from $705,000 in Q2 2023[17] - The company reported a net cash used in operating activities of $683,000 for the first half of 2024, compared to $324,000 in the same period of 2023[16] Cash Position - The company had approximately $971 million in cash on hand as of June 30, 2024, which increased to approximately $5.0 billion after two private placements in July 2024[1][3] - Cash and cash equivalents at the end of the period totaled $971,284,000, up from $7,130,000 at the end of Q2 2023[16] - QXO, Inc. raised $983,650,000 from the issuance of preferred stock and warrants during the financing activities[16] Strategic Growth Initiatives - QXO aims to target tens of billions of dollars in annual revenue over the next decade through acquisitions and organic growth in the $800 billion building products distribution industry[4] - The introduction of a new senior management team is part of the company's expansive growth plan, which has led to increased costs impacting Adjusted EBITDA[2] - The company is focused on becoming a tech-forward leader in building products distribution through strategic acquisitions and organic growth initiatives[3] Shareholder Information - The weighted average shares outstanding increased to 664,000 in Q2 2024 from 657,000 in Q2 2023[15]

Core Viewpoint - SilverSun Technologies' stock has declined following CEO Mark Meller's sale of shares, which may signal a lack of confidence in the company's future performance [1][2]. Stock Sales Summary - CEO Mark Meller sold a total of 96,556 shares of SilverSun Technologies (SSNT) stock, amounting to approximately $2.2 million [5]. - The sales occurred over several days, with Meller's total shares owned decreasing from 270,944 to 174,388 [1]. - Specific sales included: - 21,640 shares sold at an average price of $18.8666 on May 31, 2024 - 53,856 shares sold at an average price of $18.3823 on June 3, 2024 - 31,000 shares sold at an average price of $18.685 on June 4, 2024 - 11,700 shares sold at an average price of $19.0705 on June 4, 2024 [5]. Market Reaction - Following the stock sales, SSNT stock experienced a decline of 19.7% as of Wednesday morning [2].

Revenue Growth - Revenues increased by 10% to $14.4 million for the three months ended March 31, 2024, compared to $13.1 million for the same period in 2023[143]. - Software revenues rose by 4.7% to $3.48 million for the three months ended March 31, 2024, primarily due to increased ERP software sales, especially for Sage Intacct and Acumatica[152]. - Service and other revenue increased by 11.7% to $10.96 million for the three months ended March 31, 2024, attributed to growth in professional services and hosting services[153]. Profitability - Gross profit for the three months ended March 31, 2024, increased by 5.6% to $5.66 million, with a gross profit percentage of 39.2% compared to 40.8% in the prior year[154]. - Gross profit from software revenues decreased by $108,876 (7.8%) to $1,281,178 for Q1 2024 compared to Q1 2023, with a gross profit percentage of 36.8% down from 41.8%[155]. - Gross profit from services and other increased by $408,803 (10.3%) to $4,376,309 for Q1 2024 compared to Q1 2023, with a gross profit percentage of 39.9% down from 40.5%[156]. Operating Expenses - Operating expenses increased by $166,713 (7.7%) to $2,345,416 for Q1 2024, primarily due to salary increases and new personnel[157]. - General and administrative expenses rose by $283,878 (11.1%) to $2,843,906 for Q1 2024, driven by salary increases and higher employee benefits[158]. Net Income - Net income from operations decreased to $227,686 for Q1 2024, down from $369,537 in Q1 2023[161]. Cash Flow and Working Capital - The company's working capital increased to $555,974 at March 31, 2024, compared to $273,762 at December 31, 2023[167]. - Cash provided by operating activities was $365,512 for Q1 2024, a significant improvement from cash used of $783,062 in the same period of 2023[167]. - Cash used in investing activities increased to $60,524 for Q1 2024, compared to $4,979 in Q1 2023, mainly due to higher equipment purchases[168]. Strategic Focus - The company is focused on expanding its customer base through organic growth and acquisitions, establishing a national presence with ERP customers across most of the United States[143]. - The company has completed a series of strategic acquisitions over the past fifteen years, significantly expanding its operational footprint[140]. - The company plans to continue seeking additional growth opportunities through potential acquisitions and partnerships[141]. - The company is investing in product development, marketing, and sales capabilities to remain competitive and support future growth[143]. - The company is exploring additional operating income opportunities through potential acquisitions and product additions[165]. Recruitment Challenges - The company has faced challenges in recruiting but has successfully increased consulting staff and utilized outside contractors to support growth[153]. Financial Agreements - An investment agreement was entered into for an aggregate investment of $1 billion, which includes a cash dividend of $17.4 million to stockholders[144][146]. - The company has no line of credit or other credit facility with any lender as of now[163].

Revenue Growth - Revenues for the year ended December 31, 2023 increased by $9,531,665 (21.2%) to $54,516,941 compared to $44,985,276 for 2022, driven by increases in professional consulting services and software sales [267]. - Software sales rose by $2,329,411 (19.8%) to $14,110,773 in 2023 from $11,781,362 in 2022, primarily due to increased ERP software sales, particularly for Acumatica and Sage Intacct [267]. - Service revenue increased by $7,202,254 (21.7%) to $40,406,168 in 2023 from $33,203,914 in 2022, attributed to growth in professional services and hosting services [268]. Profitability - Gross profit for the year ended December 31, 2023 increased by $3,653,073 (20.3%) to $21,613,809, with an overall gross profit percentage of 39.6% [269]. - The gross profit attributed to software sales increased by $894,448 (19.0%) to $5,598,006 for 2023, while the gross profit percentage for software was 39.7% [270]. - The company reported net income from operations of $1,674,259 for the year ended December 31, 2023, compared to a loss of $385,379 in 2022 [276]. Expenses - Operating expenses, including selling and marketing, increased by $1,107,474 (14.3%) to $8,852,739, primarily due to salary increases and new personnel [272]. - General and administrative expenses rose by $745,532 (7.9%) to $10,217,157, driven by salary increases and accrued compensation [273]. - The Company incurred other expenses of $2,986,107 related to the termination of a merger agreement for the year ended December 31, 2023 [277]. Losses - The Company reported a loss before taxes of $1,367,514 for the year ended December 31, 2023, compared to a loss of $474,403 for the previous year [278]. - The net loss for the year ended December 31, 2023, was $1,070,095, an increase from a net loss of $282,219 in 2022 [281]. Cash Flow and Working Capital - The Company's working capital decreased to $273,762 at December 31, 2023, from $2,946,349 at the end of 2022 [287]. - Cash provided by operating activities was $583,805 for the year ended December 31, 2023, down from $2,038,392 in 2022 [287]. - Cash used in investing activities increased to $399,416 in 2023 from $188,742 in 2022, primarily due to higher acquisition costs [288]. - Cash used in financing activities rose to $2,049,724 in 2023 compared to $655,134 in 2022, attributed to cash dividends and increased long-term debt payments [289]. Strategic Actions - On November 13, 2023, the company acquired certain assets from JCS Computer Resource Corporation related to being a value-added reseller of Sage 100, Sage 50, and QuickBooks software [264]. - An Investment Agreement was entered into on December 3, 2023, providing for an aggregate investment of $1,000,000,000 in cash, with $900,000,000 from Jacobs Private Equity II, LLC [266]. - The Company plans to seek additional operating income opportunities through potential acquisitions or investments [284]. Economic Factors - Inflation has negatively impacted profitability due to increased costs for recruiting and retaining personnel [291]. - The Company currently has no line of credit or other credit facility with any lender [283].

Revenue Growth - Revenues increased by 22.2% to $39.8 million for the nine months ended September 30, 2023, compared to $32.6 million for the same period in 2022[147]. - Software revenues rose by 20.3% to $9.47 million for the nine months ended September 30, 2023, driven by increased sales of Acumatica and Sage Intacct products[151]. - Service revenue increased by 22.8% to $30.34 million for the nine months ended September 30, 2023, attributed to growth in professional services and hosting services[152]. Profitability - Gross profit for the nine months ended September 30, 2023, increased by 19.8% to $15.89 million, with a gross profit percentage of 39.9%[153]. - Gross profit attributed to services increased by $710,835 (20.1%) to $4,254,136 for the three months ended September 30, 2023, compared to $3,543,301 for the same period in 2022[155]. - The company reported net income from operations of $427,455 for the three months ended September 30, 2023, compared to a loss of $117,610 for the same period in 2022[161]. Business Strategy - The company executed a multi-pronged business strategy focused on recurring revenue and customer retention, enhancing average revenue per customer[136]. - The company plans to continue seeking growth through acquisitions, revenue sharing arrangements, and partnerships[145]. - The company continues to explore acquisitions and investments to increase operating income and profitability[166]. Operational Changes - The company has invested in increasing consulting staff and system improvements, which positively impacted financial performance[152]. - The company terminated its merger agreement with Rhodium Enterprises, Inc. on October 13, 2023[149]. - Other expenses included $2,936,107 related to a terminated merger agreement, charged as deal costs[162]. Expenses - Operating expenses for the three months ended September 30, 2023 increased by $211,676 (10.5%) to $2,228,526, primarily due to salary increases and higher commissions[156]. - General and administrative expenses rose by $253,269 (11.3%) to $2,497,891 for the three months ended September 30, 2023, driven by salary increases and accrued compensation[157]. - Share-based compensation decreased by $44,185 (100%) for the three months ended September 30, 2023, resulting in $0 compared to $44,185 for the same period in 2022[158]. Financial Position - The company's working capital decreased to $487,090 at September 30, 2023, from $2,946,349 at December 31, 2022[169]. - Cash used in financing activities increased to $1,871,929 for the nine months ended September 30, 2023, primarily due to cash dividends paid to shareholders[172]. Impact of COVID-19 - The company continues to monitor the impact of COVID-19 on its operations and customer base, with no significant future impact expected[148]. Losses - Losses before taxes for the three months ended September 30, 2023 were $2,566,299, compared to losses of $141,298 for the same period in 2022[163].

Revenue Growth - Revenues increased 21.8% to $26.4 million for the six months ended June 30, 2023, compared to $21.7 million for the same period in 2022[158]. - Software revenues increased 22.8% to $6.6 million for the six months ended June 30, 2023, compared to $5.4 million for the same period in 2022, driven by growth in ERP software sales, particularly for Acumatica and Sage Intacct[164]. - Service revenue increased 21.5% to $19.8 million for the six months ended June 30, 2023, compared to $16.3 million for the same period in 2022, mainly due to increased professional services and hosting services[165]. Profitability - Gross profit for the six months ended June 30, 2023, increased 19.4% to $10.5 million, with a gross profit percentage of 40.0% compared to 40.8% for the same period in 2022[166]. - Gross profit attributed to services increased by $883,126 (29.1%) to $3,914,586 for the three months ended June 30, 2023, compared to $3,031,460 for the same period in 2022[168]. - Net income from operations for the three months ended June 30, 2023 was $456,264, a turnaround from a loss of $79,246 in the same period of 2022[174]. Operating Expenses - Operating expenses for the three months ended June 30, 2023 increased by $288,565 (15.6%) to $2,141,468, primarily due to salary increases and higher commissions[169]. - General and administrative expenses rose by $312,639 (15.1%) to $2,383,784 for the three months ended June 30, 2023, driven by salary increases and accrued compensation[170]. Business Strategy - The company is executing a multi-pronged business strategy focused on recurring revenue and customer retention, aiming to increase the installed customer base through traditional sales and acquisitions[147]. - The company has completed a series of strategic acquisitions over the past fifteen years, expanding its footprint to nearly every U.S. state[155]. - The company plans to continue seeking additional growth opportunities through potential acquisitions and partnerships, which may require additional cash or equity[156]. - A definitive merger agreement was entered into with Rhodium Enterprises, expected to close in 2023, which will further enhance the company's growth strategy[160][161]. Cash Flow and Working Capital - The company's working capital increased to $3,957,224 at June 30, 2023, up from $2,946,349 at December 31, 2022, mainly due to lower accounts payable[180]. - Cash used in operating activities decreased to $323,786 for the six months ended June 30, 2023, compared to $485,308 for the same period in 2022[180]. - Cash used in investing activities was $23,860 for the six months ended June 30, 2023, significantly lower than $180,549 for the same period in 2022[181]. - Cash used in financing activities increased to $531,205 for the six months ended June 30, 2023, compared to $274,586 for the same period in 2022, due to higher long-term debt payments[182]. - Future payments of long-term debt total $1,032,076, with $361,062 due in the remainder of 2023[179]. Market Conditions - The company is monitoring the impact of COVID-19 on its operations and is focused on assisting customers with their digital transformation[159]. - The company continues to explore acquisitions and investments to enhance operating income opportunities[178].

Revenue Growth - Revenues increased by 19.1% to $13.1 million for the three months ended March 31, 2023, compared to $11.0 million for the same period in 2022[155] - Software revenues rose by 27.2% to $3.3 million for the three months ended March 31, 2023, primarily due to increased ERP software sales, especially for Acumatica and Sage Intacct[162] - Service revenue increased by 16.6% to $9.8 million for the three months ended March 31, 2023, attributed to growth in professional services and hosting services[163] Profitability - Gross profit for the three months ended March 31, 2023, increased by 13.9% to $5.4 million, with an overall gross profit percentage of 40.8%[164] - The Company reported net income from operations of $369,537 for the three months ended March 31, 2023, compared to a loss from operations of $19,716 for the same period in 2022[170] - Inflation has negatively impacted profitability due to increased costs for recruiting and retaining personnel, as well as higher travel and meal costs[180] Expenses - Selling and marketing expenses rose by 22.7% to $2.2 million for the three months ended March 31, 2023, primarily due to increased salaries and travel expenses[167] - General and administrative expenses decreased by 3.1% to $2.6 million for the three months ended March 31, 2023, due to lower credit card fees and rent expenses[168] - Share-based compensation decreased by $4,448 to $41,497 for the three months ended March 31, 2023, compared to $45,945 for the same period in 2022[169] Cash Flow - Cash used in operating activities was $783,062 for the three months ended March 31, 2023, an increase from $8,246 used in the same period in 2022[176] - Cash used in investing activities was $4,979 for the three months ended March 31, 2023, significantly lower than $180,548 used in the same period in 2022[177] - Cash used in financing activities increased to $344,813 for the three months ended March 31, 2023, compared to $138,890 for the same period in 2022[178] Financial Position - The Company's working capital was $3,361,829 and cash on hand was $6,875,779 at March 31, 2023[176] - The Company has no line of credit or other credit facility with any lender as of March 31, 2023[172] - The Company believes it has adequate liquidity to fund its operating plans for at least the next twelve months, despite uncertainties related to the pandemic[179] Strategic Initiatives - The company is focused on expanding its customer base through organic growth and acquisitions, establishing a national presence in the ERP market[155] - The company has entered into a merger agreement with Rhodium Enterprises, expected to close in the first half of 2023, to enhance its digital asset technology capabilities[158][159] - The Company plans to increase profitability by entering into collaboration agreements and acquiring companies in the business software and IT consulting markets[174] - The company aims to assist customers in their digital transformation, leveraging the rise of e-commerce and compliance needs to drive future revenues[156] - The company continues to monitor the impact of inflation on profitability, particularly in recruiting and retaining personnel[157]

Revenue Performance - Revenues for the year ended December 31, 2022 increased by $3,283,896 (7.9%) to $44,985,276 compared to $41,701,380 for 2021[193] - Software sales increased by $3,917,975 (49.8%) to $11,781,362 in 2022 from $7,863,387 in 2021, driven by cloud-based ERP software and third-party solutions[194] - Service revenue decreased by $634,079 (1.9%) to $33,203,914 in 2022, primarily due to lower maintenance revenue and consulting delays[195] Profitability - Gross profit for 2022 increased by $752,678 (4.4%) to $17,960,736, with a gross profit percentage of 39.9% compared to 41.3% in 2021[196] - The company reported a loss from operations of $385,379 for 2022, compared to a loss of $230,986 in 2021[204] - Other expense for 2022 was $89,024, contrasting with other income of $274,557 in 2021, which included gains from a product line sale[205] - The company had a loss before taxes of $474,403 for 2022, compared to income before taxes of $43,571 in 2021[206] - For the year ended December 31, 2022, the Company recorded a net loss of $282,219, compared to a net loss of $134,434 for the year ended December 31, 2021, representing an increase in loss of approximately 109.8%[209] Operating Activities - The Company generated $2,038,392 in cash from operating activities for the year ended December 31, 2022, a significant increase from $226,034 in the previous year, indicating a growth of approximately 803.5%[215] - Cash used in investing activities decreased to $188,742 for the year ended December 31, 2022, down from $510,464 in 2021, reflecting a reduction of approximately 63.0%[216] - Financing activities used cash of $655,134 for the year ended December 31, 2022, compared to cash provided of $503,131 in 2021, indicating a change of approximately 230.0%[217] Strategic Focus - The company is focused on increasing its customer base through traditional marketing and acquisitions, aiming to enhance monthly recurring revenue (MRR)[179] - The company plans to continue seeking growth through acquisitions, revenue sharing arrangements, and partnerships[189] - The Company plans to seek additional operating income opportunities through potential acquisitions or investments, which may require additional cash or equity[212] - The Company continues to explore collaboration agreements and acquisitions in the business software and IT consulting markets to enhance profitability[213] Financial Position and Liquidity - Future payments of promissory notes total $1,454,493, with $783,479 due in 2023[214] - The Company believes it has adequate liquidity to fund its operating plans for at least the next twelve months, although uncertainty related to the pandemic and economic conditions remains[218] - The Company has no line of credit or other credit facility with any lender, indicating reliance on internal resources for funding[211] Impact of External Factors - Inflation has negatively impacted the Company's profitability due to increased costs for recruiting and retaining personnel, as well as higher travel and meal expenses[219]

Revenue Performance - Revenues for the six months ended June 30, 2022, increased by $553,240 (2.6%) to $21,661,917 compared to $21,108,677 for the same period in 2021[163] - Software sales for the three months ended June 30, 2022, increased by $1,020,596 (57.9%) to $2,782,081, and for the six months, it increased by $1,627,547 (43.2%) to $5,393,043 compared to the same periods in 2021[164] - Service revenue for the three months ended June 30, 2022, decreased by $611,732 (7.2%) to $7,855,992, and for the six months, it decreased by $1,074,307 (6.2%) to $16,268,874 compared to the same periods in 2021[164] Profitability - Gross profit for the three months ended June 30, 2022, decreased by $143,412 (3.4%) to $4,127,268, and for the six months, it decreased by $185,082 (2.1%) to $8,832,135 compared to the same periods in 2021[165] - The overall gross profit percentage for the three months ended June 30, 2022, was 38.8%, down from 41.7% in the same period of 2021[165] - For the three months ended June 30, 2022, the Company reported a loss from operations of $79,246, compared to income from operations of $203,904 for the same period in 2021[173] - For the six months ended June 30, 2022, the Company had a loss from operations of $98,962, compared to income from operations of $697,177 for the same period in 2021[173] Expenses - Selling and marketing expenses increased by $238,797 (14.8%) to $1,852,903 for the three months ended June 30, 2022, and by $295,300 (8.9%) to $3,628,714 for the six months compared to the same periods in 2021[168] - General and administrative expenses increased by $183,927 (4.1%) to $4,712,122 for the six months ended June 30, 2022, compared to $4,528,195 for the same period in 2021[170] - Share-based compensation increased by $41,958 to $91,890 for the six months ended June 30, 2022, compared to $49,932 for the same period in 2021[171] Cash Flow and Working Capital - The Company's working capital was $2,749,833 and cash on hand was $5,873,674 as of June 30, 2022[179] - During the six months ended June 30, 2022, the Company experienced a net decrease in cash of $940,443, with cash used in operating activities amounting to $485,308[179] - Cash used in investing activities for the six months ended June 30, 2022 was $180,549, a decrease from $217,824 for the same period in 2021[180] - Cash used in financing activities for the six months ended June 30, 2022 was $274,586, compared to cash provided of $3,888,592 for the same period in 2021[181] Future Outlook - The company continues to expand its customer base, which is expected to provide a basis for future growth despite current economic conditions[159] - The company is focused on assisting customers in their digital transformation, which is anticipated to drive future revenues[160] - The Company plans to increase business and profitability through collaboration agreements, asset purchases, and acquisitions in the business software and IT consulting markets[177] Debt and Financial Position - Future payments of long-term debt total $1,717,700, with $263,207 due in the remainder of 2022[178] - The Company has no line of credit or other credit facility with any lender as of June 30, 2022[175] Economic Impact - Inflation has negatively impacted the Company's profitability due to increased costs for recruiting and retaining personnel[183]