Revenue Growth - Revenues increased 21.8% to $26.4 million for the six months ended June 30, 2023, compared to $21.7 million for the same period in 2022[158]. - Software revenues increased 22.8% to $6.6 million for the six months ended June 30, 2023, compared to $5.4 million for the same period in 2022, driven by growth in ERP software sales, particularly for Acumatica and Sage Intacct[164]. - Service revenue increased 21.5% to $19.8 million for the six months ended June 30, 2023, compared to $16.3 million for the same period in 2022, mainly due to increased professional services and hosting services[165]. Profitability - Gross profit for the six months ended June 30, 2023, increased 19.4% to $10.5 million, with a gross profit percentage of 40.0% compared to 40.8% for the same period in 2022[166]. - Gross profit attributed to services increased by $883,126 (29.1%) to $3,914,586 for the three months ended June 30, 2023, compared to $3,031,460 for the same period in 2022[168]. - Net income from operations for the three months ended June 30, 2023 was $456,264, a turnaround from a loss of $79,246 in the same period of 2022[174]. Operating Expenses - Operating expenses for the three months ended June 30, 2023 increased by $288,565 (15.6%) to $2,141,468, primarily due to salary increases and higher commissions[169]. - General and administrative expenses rose by $312,639 (15.1%) to $2,383,784 for the three months ended June 30, 2023, driven by salary increases and accrued compensation[170]. Business Strategy - The company is executing a multi-pronged business strategy focused on recurring revenue and customer retention, aiming to increase the installed customer base through traditional sales and acquisitions[147]. - The company has completed a series of strategic acquisitions over the past fifteen years, expanding its footprint to nearly every U.S. state[155]. - The company plans to continue seeking additional growth opportunities through potential acquisitions and partnerships, which may require additional cash or equity[156]. - A definitive merger agreement was entered into with Rhodium Enterprises, expected to close in 2023, which will further enhance the company's growth strategy[160][161]. Cash Flow and Working Capital - The company's working capital increased to $3,957,224 at June 30, 2023, up from $2,946,349 at December 31, 2022, mainly due to lower accounts payable[180]. - Cash used in operating activities decreased to $323,786 for the six months ended June 30, 2023, compared to $485,308 for the same period in 2022[180]. - Cash used in investing activities was $23,860 for the six months ended June 30, 2023, significantly lower than $180,549 for the same period in 2022[181]. - Cash used in financing activities increased to $531,205 for the six months ended June 30, 2023, compared to $274,586 for the same period in 2022, due to higher long-term debt payments[182]. - Future payments of long-term debt total $1,032,076, with $361,062 due in the remainder of 2023[179]. Market Conditions - The company is monitoring the impact of COVID-19 on its operations and is focused on assisting customers with their digital transformation[159]. - The company continues to explore acquisitions and investments to enhance operating income opportunities[178].
SilverSun Technologies(SSNT) - 2023 Q2 - Quarterly Report