Revenue Growth - Total revenue for 2023 was $54.4 million, representing a $23.8 million or 78% increase from 2022 revenues of $30.6 million[94] - Revenue from procurement transactions increased by $25.3 million or 191% in 2023, with the aggregate gross value of all procurement transactions rising from $73 million in 2022 to $123.1 million in 2023[93] - Total revenue for 2023 was $54.4 million, a 78% increase from $30.6 million in 2022, primarily driven by a $25.3 million increase in procurement business[124] Profitability - Operating income improved by $0.8 million or 91% from 2022, reaching $1.75 million in 2023[97] - Net income for 2023 was $74,000, compared to a net loss of $73,000 in 2022, marking a turnaround in profitability[137] - Operating income improved by 91% to $1.75 million in 2023, compared to $914,000 in 2022, despite higher selling, general and administrative expenses[134] Cost and Expenses - Selling, general and administrative expenses rose by 16% to $8.9 million in 2023, primarily due to increased labor costs from strategic investments[96] - Interest expense increased by $0.7 million in 2023 due to higher interest rates and increased activity in procurement transactions, with total transactions amounting to approximately $123.1 million[98] - Selling, general and administrative expenses rose by 16% to $8.9 million in 2023, driven by strategic investments in sales and marketing[133] Gross Profit and Margins - Gross profit increased by $2 million or 23% compared to 2022, although gross profit margin decreased to 20% in 2023 from 29% in 2022 due to a higher proportion of lower-margin procurement business[95] - Procurement revenues accounted for 71% of total revenue in 2023, up from 43% in 2022, indicating a shift towards lower-margin services[127] - Gross profit margin decreased to 20% in 2023 from 29% in 2022, attributed to the increased revenue share from procurement services[130] Cash Flow and Liquidity - Cash on hand at the end of 2023 was $11.8 million, a decrease of $8.6 million from the end of 2022, primarily due to timing of cash flows related to procurement activities[99] - Cash used in operating activities was $8.3 million in 2023, a significant decrease from cash provided by operating activities of $14.7 million in 2022, primarily due to timing impacts of procurement services[151] - As of December 31, 2023, the company had cash and cash equivalents of $11.8 million, down from $20.4 million in 2022[150] Future Outlook - The company anticipates continued profitability on a quarterly and annual basis in 2024 and beyond, with no substantial doubt about its ability to continue as a going concern[149] - The company expects fluctuations in MDC deployments to continue, impacting quarterly revenues and profits[90] Other Financial Metrics - The company recorded an accumulated net operating loss carry-forward of $40 million as of December 31, 2023, which may offset future taxable income[136] - Interest expense for 2023 was $1.616 million, up from $931,000 in 2022, due to higher interest rates and increased factoring transactions[135]
TSS Inc(TSSI) - 2023 Q4 - Annual Report