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]
SilverSun Technologies(SSNT) - 2022 Q2 - Quarterly Report