Financial Performance - Total revenue for the three months ended September 30, 2024, was $13,155,000, a decrease of 2% compared to $13,423,000 for the same period in 2023[9] - Net income for the three months ended September 30, 2024, was $17,132,000, compared to a net loss of $2,110,000 for the same period in 2023[9] - For the nine months ended September 30, 2024, QXO reported a net income of $16.68 million, a significant improvement from a net loss of $1.49 million in the same period of 2023[19] - Total revenue for the nine months ended September 30, 2024, was $42.13 million, compared to $39.81 million for the same period in 2023, reflecting an increase of approximately 5.5%[34] - The company reported a loss from operations of $33,826,000 for the three months ended September 30, 2024, compared to a loss of $2,558,000 for the same period in 2023[9] - The company reported basic and diluted earnings per share of $(0.01) for the three months ended September 30, 2024, compared to $(3.21) for the same period in 2023[56] Assets and Liabilities - Total current assets as of September 30, 2024, were $5,055,639, a significant decrease from $11,796,000 as of December 31, 2023[7] - Total liabilities increased to $19,885,000 as of September 30, 2024, compared to $13,024,000 as of December 31, 2023[7] - Cash and cash equivalents decreased to $5,037,112 as of September 30, 2024, from $6,143,000 as of December 31, 2023[7] - The company’s total stockholders' equity as of September 30, 2024, was $5,043,582, a decrease from $7,471,000 as of December 31, 2023[7] - The company’s total assets as of September 30, 2024, were $5,063,467, down from $20,495,000 as of December 31, 2023[7] Cash Flow - Cash provided by operating activities for the nine months ended September 30, 2024, was $30.92 million, a substantial increase from $0.82 million in the prior year[19] - The company experienced a significant increase in cash flows from financing activities, totaling $5.00 billion for the nine months ended September 30, 2024, compared to a cash outflow of $1.87 million in the same period of 2023[19] Shareholder Activities - The company paid $9.8 million in quarterly dividends to holders of Convertible Preferred Stock during the quarter ended September 30, 2024[49] - The company declared a $17.4 million aggregate cash dividend to stockholders of record as of the day before the closing of the Equity Investment[52] - The company raised approximately $1.0 billion through the issuance of 1,000,000 shares of Convertible Preferred Stock, which are convertible into 219,010,074 shares of common stock at an initial conversion price of $4.566 per share[46] - The company generated gross proceeds of approximately $3.5 billion from a private placement of 340,932,212 shares of common stock at a price of $9.14 per share[53] Compensation and Expenses - Operating expenses for the three months ended September 30, 2024, were $39,268,000, compared to $7,908,000 for the same period in 2023, reflecting a substantial increase[9] - Share-based compensation for the nine months ended September 30, 2024, was $13.99 million, compared to $41,000 in the same period of 2023[19] - The Company recognized share-based compensation expense of $13.985 million for the three months ended September 30, 2024, compared to $41,000 for the same period in 2023[79] Strategic Initiatives - The company aims to achieve tens of billions in annual revenue over the next decade through strategic acquisitions and organic growth in the $800 billion building products distribution industry[23] - The company is focused on becoming a tech-forward leader in its industry, leveraging its legacy operations and professional services to enhance customer value[22] Other Financial Metrics - Deferred revenue as of September 30, 2024, included $519,200 for maintenance and support services and $2.3 million in deposits for future consulting services[37] - The effective tax rate for the three months ended September 30, 2024, was 25.8%, up from 17.8% for the same period in 2023, indicating a significant increase of 45%[69] - The Company extinguished all long-term debt obligations as of September 30, 2024, compared to $1.70 million in long-term debt as of December 31, 2023[60] Acquisitions and Investments - The Company acquired a customer list from JCS Computer Resource Corporation for a total consideration of $1.3 million, which will be amortized over its estimated useful life[68] - The company completed a $1.0 billion cash investment from Jacobs Private Equity II, LLC, which led to a name change from SilverSun Technologies, Inc. to QXO on June 6, 2024[21] Stock and Shares - The company issued 408,766 shares of common stock during the three months ended September 30, 2024, contributing to additional paid-in capital of $4,051,099[12] - The company issued warrants exercisable for an aggregate of 219,010,074 shares of common stock, with varying exercise prices[50] - As of September 30, 2024, total unrecognized compensation expense related to unvested RSUs was $148.1 million, expected to be recognized over a weighted-average period of 5.18 years[72] - The Company granted 8,420 performance-based RSUs (pRSUs) with a weighted average grant date fair value of $20.24, with total unrecognized compensation expense of $161.5 million expected to be recognized over 3.72 years[76] Property and Equipment - As of September 30, 2024, the net property and equipment amounted to $456,000, a decrease from $503,000 as of December 31, 2023[40] - The company’s accumulated depreciation and amortization for property and equipment was $3,802,000 as of September 30, 2024, compared to $3,606,000 as of December 31, 2023[40] - Total lease assets decreased to $538,000 as of September 30, 2024, down from $854,000 as of December 31, 2023, representing a decline of approximately 37%[63] - Total lease liabilities also decreased to $669,000 as of September 30, 2024, from $923,000 as of December 31, 2023, a reduction of about 27.5%[63]
SilverSun Technologies(SSNT) - 2024 Q3 - Quarterly Report