Revenue Growth - Revenues for the year ended December 31, 2023 increased by $9,531,665 (21.2%) to $54,516,941 compared to $44,985,276 for 2022, driven by increases in professional consulting services and software sales [267]. - Software sales rose by $2,329,411 (19.8%) to $14,110,773 in 2023 from $11,781,362 in 2022, primarily due to increased ERP software sales, particularly for Acumatica and Sage Intacct [267]. - Service revenue increased by $7,202,254 (21.7%) to $40,406,168 in 2023 from $33,203,914 in 2022, attributed to growth in professional services and hosting services [268]. Profitability - Gross profit for the year ended December 31, 2023 increased by $3,653,073 (20.3%) to $21,613,809, with an overall gross profit percentage of 39.6% [269]. - The gross profit attributed to software sales increased by $894,448 (19.0%) to $5,598,006 for 2023, while the gross profit percentage for software was 39.7% [270]. - The company reported net income from operations of $1,674,259 for the year ended December 31, 2023, compared to a loss of $385,379 in 2022 [276]. Expenses - Operating expenses, including selling and marketing, increased by $1,107,474 (14.3%) to $8,852,739, primarily due to salary increases and new personnel [272]. - General and administrative expenses rose by $745,532 (7.9%) to $10,217,157, driven by salary increases and accrued compensation [273]. - The Company incurred other expenses of $2,986,107 related to the termination of a merger agreement for the year ended December 31, 2023 [277]. Losses - The Company reported a loss before taxes of $1,367,514 for the year ended December 31, 2023, compared to a loss of $474,403 for the previous year [278]. - The net loss for the year ended December 31, 2023, was $1,070,095, an increase from a net loss of $282,219 in 2022 [281]. Cash Flow and Working Capital - The Company's working capital decreased to $273,762 at December 31, 2023, from $2,946,349 at the end of 2022 [287]. - Cash provided by operating activities was $583,805 for the year ended December 31, 2023, down from $2,038,392 in 2022 [287]. - Cash used in investing activities increased to $399,416 in 2023 from $188,742 in 2022, primarily due to higher acquisition costs [288]. - Cash used in financing activities rose to $2,049,724 in 2023 compared to $655,134 in 2022, attributed to cash dividends and increased long-term debt payments [289]. Strategic Actions - On November 13, 2023, the company acquired certain assets from JCS Computer Resource Corporation related to being a value-added reseller of Sage 100, Sage 50, and QuickBooks software [264]. - An Investment Agreement was entered into on December 3, 2023, providing for an aggregate investment of $1,000,000,000 in cash, with $900,000,000 from Jacobs Private Equity II, LLC [266]. - The Company plans to seek additional operating income opportunities through potential acquisitions or investments [284]. Economic Factors - Inflation has negatively impacted profitability due to increased costs for recruiting and retaining personnel [291]. - The Company currently has no line of credit or other credit facility with any lender [283].
SilverSun Technologies(SSNT) - 2023 Q4 - Annual Report