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]
SilverSun Technologies(SSNT) - 2022 Q4 - Annual Report