Revenue Growth - Revenues increased by 19.1% to $13.1 million for the three months ended March 31, 2023, compared to $11.0 million for the same period in 2022[155] - Software revenues rose by 27.2% to $3.3 million for the three months ended March 31, 2023, primarily due to increased ERP software sales, especially for Acumatica and Sage Intacct[162] - Service revenue increased by 16.6% to $9.8 million for the three months ended March 31, 2023, attributed to growth in professional services and hosting services[163] Profitability - Gross profit for the three months ended March 31, 2023, increased by 13.9% to $5.4 million, with an overall gross profit percentage of 40.8%[164] - The Company reported net income from operations of $369,537 for the three months ended March 31, 2023, compared to a loss from operations of $19,716 for the same period in 2022[170] - Inflation has negatively impacted profitability due to increased costs for recruiting and retaining personnel, as well as higher travel and meal costs[180] Expenses - Selling and marketing expenses rose by 22.7% to $2.2 million for the three months ended March 31, 2023, primarily due to increased salaries and travel expenses[167] - General and administrative expenses decreased by 3.1% to $2.6 million for the three months ended March 31, 2023, due to lower credit card fees and rent expenses[168] - Share-based compensation decreased by $4,448 to $41,497 for the three months ended March 31, 2023, compared to $45,945 for the same period in 2022[169] Cash Flow - Cash used in operating activities was $783,062 for the three months ended March 31, 2023, an increase from $8,246 used in the same period in 2022[176] - Cash used in investing activities was $4,979 for the three months ended March 31, 2023, significantly lower than $180,548 used in the same period in 2022[177] - Cash used in financing activities increased to $344,813 for the three months ended March 31, 2023, compared to $138,890 for the same period in 2022[178] Financial Position - The Company's working capital was $3,361,829 and cash on hand was $6,875,779 at March 31, 2023[176] - The Company has no line of credit or other credit facility with any lender as of March 31, 2023[172] - The Company believes it has adequate liquidity to fund its operating plans for at least the next twelve months, despite uncertainties related to the pandemic[179] Strategic Initiatives - The company is focused on expanding its customer base through organic growth and acquisitions, establishing a national presence in the ERP market[155] - The company has entered into a merger agreement with Rhodium Enterprises, expected to close in the first half of 2023, to enhance its digital asset technology capabilities[158][159] - The Company plans to increase profitability by entering into collaboration agreements and acquiring companies in the business software and IT consulting markets[174] - The company aims to assist customers in their digital transformation, leveraging the rise of e-commerce and compliance needs to drive future revenues[156] - The company continues to monitor the impact of inflation on profitability, particularly in recruiting and retaining personnel[157]
SilverSun Technologies(SSNT) - 2023 Q1 - Quarterly Report