ienect (ICCT) - 2023 Q4 - Annual Report

Financial Performance - Revenues for the years ended December 31, 2023 and December 31, 2022, were $8,151,587 and $7,987,902, respectively, indicating a growth of approximately 2.05% year-over-year[58] - The company’s software solutions are sold under annual recurring revenue subscriptions, providing predictable future costs for customers[51] Mergers and Acquisitions - The company completed a merger on August 25, 2023, with Old iCore, which is now a wholly-owned subsidiary, enhancing its market position[39] - The company has engaged in merger and acquisition activity, with the most recent merger completed on August 25, 2023, resulting in Old iCore becoming a wholly-owned subsidiary[39] - The company may engage in merger and acquisition activities, although the anticipated benefits may not always be realized[73] Product and Service Offerings - iCoreConnect offers a range of HIPAA compliant SaaS products, including iCoreVerify and iCoreHuddle, aimed at increasing workflow efficiency and revenue realization for healthcare practices[40][41][43] - The company is focused on extending existing service offerings and innovating based on customer feedback to improve workflow and profitability[77] - The company continues to innovate based on customer feedback, focusing on compliance and improved workflow for dental and physician practices[77] Customer Relationships and Market Position - The company aims to deepen relationships with existing customers by providing additional value-added products and services, indicating a strategy for customer retention and growth[53] - The company has received over 100 major healthcare association endorsements in 33 states, showcasing its competitive strength in the market[78] - The company has secured over 100 major healthcare association endorsements across 33 states in recent years, indicating strong market acceptance[78] Security and Compliance - iCoreSecure, an encrypted email solution, addresses privacy concerns in various sectors, showcasing the company's commitment to data security[46] - The company acknowledges potential risks related to HIPAA compliance and data security, which could impact its business operations and reputation[59][61] - The company has implemented security measures to address risks of unauthorized access and potential system failures, although challenges remain[74] - The company has implemented security measures such as firewalls and intrusion detection, but acknowledges the risk of potential system failures or breaches[74] - The company’s services are designed to be HIPAA compliant, ensuring the protection of sensitive health information[40] Governance and Internal Controls - The company has identified deficiencies in its corporate governance practices, which may impact investor confidence and the price of its common stock[72] - As of December 31, 2023, the company identified material weaknesses in its internal controls related to financial reporting, which could adversely impact stock price[72] Strategic Focus and Risks - The company emphasizes the importance of managed IT services, which are in high demand, allowing customers to scale their businesses without extensive capital investment[47][48] - The company is focused on protecting its core technology and intellectual property through trade secrets and nondisclosure agreements, as it does not currently own patents or trademarks[55] - Future profitability is contingent on the company's ability to differentiate its products and services from competitors, particularly in the HIPAA-compliant healthcare information sector[69] - The company faces risks related to the protection of its intellectual property rights, which could impact its competitive position[65] - The company is not currently subject to direct regulation by government agencies, but potential future regulations could adversely affect its operations[70] - The company recognizes the challenge of maintaining service quality and accuracy, which is critical to avoid liability and protect its operational results[76] Management and Experience - The management team has decades of experience in operating successful IT companies, which supports the company's strategic direction and operational execution[48] - The company plans to increase the number of direct sales professionals and develop additional distribution channels for its products and services[78] - The company plans to increase its direct sales force and develop additional distribution channels to enhance market reach[78]