Filing identity and reporting period
Important discrepancy: The request identifies QXO, Inc., but the supplied Form 10-K is for SilverSun Technologies, Inc. (ticker SSNT). It reports the fiscal year ended December 31, 2021, not a standalone 2021 fourth quarter. The figures below summarize the supplied filing and should not be attributed to QXO without verification.
SilverSun provides business software, ERP and consulting, managed IT, hosting, and cybersecurity services, primarily to small and midsize businesses. Its strategy emphasizes recurring revenue, customer retention, cross-selling, and acquisitions.
Financial performance and position
| Metric | 2021 | 2020 |
|---|---|---|
| Revenue | $41.70 million | $41.22 million |
| Gross profit / margin | $17.21 million / 41.3% | $16.58 million / 40.2% |
| Operating income (loss) | ($0.23 million) | $0.22 million |
| Net income (loss) | ($0.13 million) | $0.18 million |
| Basic and diluted EPS | ($0.03) | $0.04 |
| Cash from operations | $0.23 million | $1.73 million |
| Cash at year-end | $6.81 million | $6.60 million |
| Total assets / liabilities | $18.00 million / $8.64 million | $15.90 million / $8.62 million |
Service revenue was $33.84 million and software revenue $7.86 million. Total debt was $0.97 million at year-end, excluding finance and operating lease liabilities; finance lease obligations were $0.35 million and operating lease liabilities $0.96 million. The company reported no credit facility. Management said it believed liquidity was adequate for operating plans for at least 12 months from issuance of the financial statements.
Changes versus prior year
- Revenue increased 1.2%, while gross profit rose 3.8% and gross margin improved 1.1 percentage points.
- Operating results shifted from $0.22 million of income to a $0.23 million loss. General and administrative expense rose 13.6%, share-based compensation increased to $0.44 million from $0.01 million, and depreciation and amortization also increased. Lower selling and marketing expense partly offset these increases.
- Net results moved from $0.18 million income to a $0.13 million loss. The 2021 result included $0.25 million from a product-line sale and a $0.07 million bargain-purchase gain; income tax expense was $0.18 million.
- Operating cash flow fell to $0.23 million from $1.73 million, principally reflecting working-capital movements, including higher prepaid expenses and receivables. Cash increased by $0.22 million overall.
- Financing included $4.18 million in net stock proceeds and a $3.08 million special cash dividend. Shares outstanding increased to 5.14 million at year-end from 4.50 million.
Outlook, risks, and unusual items
The filing provides no quantified revenue or earnings guidance. Management described continued growth through recurring services, customer expansion, and acquisitions, while noting that acquisition timing, funding, and integration are uncertain. COVID-19’s future effects on customers, spending, collections, staffing, and operations were described as uncertain. The company had no line of credit and stated that it relied on its own resources; management also noted it was exploring funding and cost-control options.
Material events included 2021 acquisitions of CT-Solution and PeopleSense; the November 2021 sale of certain Sage X3 business assets for $0.25 million plus transitional revenue sharing; and February 2021 conversions of $0.67 million in acquisition-related convertible debt into shares. Subsequent to year-end, the company acquired Dynamic Tech Services for $1.335 million and agreed to acquire NEO3 for $0.225 million. The filing also identifies risks from competition and pricing, personnel retention, technology and cybersecurity incidents, acquisition integration, financing needs, and stock-price volatility and limited trading liquidity.
The auditor issued an unmodified opinion on the financial statements. Management concluded internal control over financial reporting was effective; the auditor did not provide an internal-control attestation.
Key facts investors should verify
- Confirm the issuer: the supplied filing is SilverSun Technologies, Inc. (SSNT), not QXO, Inc.
- Use the full-year 2021 figures; the filing does not provide a standalone fourth-quarter income statement in the supplied text.
- Review the decline in operating cash flow and the composition and collectability of prepaid expenses, receivables, and deferred revenue.
- Assess liquidity alongside the absence of a credit facility, debt and lease obligations, acquisition commitments, and the $3.08 million dividend.
- Verify acquisition integration, the Sage X3 sale’s revenue-sharing arrangements, and the terms and performance conditions of subsequent acquisitions.
- Consider dilution: 2021 stock issuance raised $4.18 million, and the 2019 equity plan had 868,440 shares available for future issuance at the time reported.