SilverSun Technologies Inc
For the period ended Dec 31, 2023. Filed Mar 14, 2024.
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FY2023 · Filed Mar 14, 2024
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Statements of Cash Flows
FOR THE YEARS ENDED DECEMBER 31,
| 2023 | 2022 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Net loss | $(1,070,095) | $(282,219) |
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||
| Deferred income taxes | (337,837) | (115,107) |
| Depreciation and amortization | 328,894 | 386,847 |
| Amortization of intangibles | 671,504 | 732,552 |
| Amortization of right of use assets | 126,337 | 636,428 |
| Bad debt provision | 19,901 | 160,000 |
| Share-based compensation | 41,497 | 180,260 |
| Changes in assets and liabilities: | ||
| Accounts receivable | (755,816) | (466,101) |
| Unbilled services | 172,758 | (82,947) |
| Deferred charges | 780,987 | (1,219,295) |
| Prepaid expenses and other current assets | (180,234) | (316,130) |
| Deposits and other assets | 16,105 | 3,252 |
| Accounts payable | 1,290,693 | 1,234,530 |
| Accrued expenses | 222,217 | 689,555 |
| Income tax payable | - | (69,614) |
| Accrued interest | 750 | (5,027) |
| Deferred revenues | (617,519) | 1,207,836 |
| Operating lease obligations | (126,337) | (636,428) |
| Net cash provided by operating activities | 583,805 | 2,038,392 |
| Cash flows from investing activities: | ||
| Purchase of property and equipment | (120,927) | (38,742) |
| Acquisition of assets | (278,489) | (150,000) |
| Net cash used in investing activities | (399,416) | (188,742) |
| Cash flows from financing activities: | ||
| Payment of cash dividend | (1,051,256) | - |
| Payment of long-term debt | (680,145) | (316,138) |
| Payment of long-term debt – related party | (103,333) | (108,309) |
| Payment of finance lease obligations | (214,990) | (230,687) |
| Net cash used in financing activities | (2,049,724) | (655,134) |
| Net (decrease) increase in cash | (1,865,335) | 1,194,516 |
| Cash, beginning of year | 8,008,633 | 6,814,117 |
| Cash, end of year | $6,143,298 | $8,008,633 |
| Supplemental Schedule of Cash Flow Information: | ||
| During the year, cash was paid for the following: | ||
| Income taxes | $300,732 | $94,141 |
| Interest | $57,020 | $40,193 |
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
For the Year Ended December 31, 2023
On September 29, 2022, the Company entered into an operating lease for equipment with Digital Fortress, Inc. Accordingly, operating lease right of use assets and operating lease liabilities were recognized in the amount of $109,840.
On October 12, 2022, the Company entered into an operating lease for equipment and space with Cologix USA, Inc. Accordingly, operating lease right of use assets and operating lease liabilities were recognized in the amount of $106,471.
On June 2, 2023, the Company entered into an operating lease to extend its lease for its Arizona office with Exeter 17319 DE, LLC. Accordingly, operating lease right of use assets and operating lease liabilities were recognized in the amount of $108,330 during the year ended December 31, 2023.
On January 3, 2024, the Company extended its lease for its main office in East Hanover, NJ for thetwo years ended April 30, 2026. Monthly base rent will be $10,258 for the first year and $10,471 for the second year. Accordingly, operating lease right of use assets and operating lease liabilities were recognized for the extension in the amount of $236,872 during the year ended December 31, 2023.
On November 13, 2023, the Company entered into an asset purchase agreement with JCS Computer Resource Corporation (“JCS”) to acquire certain assets of JCS for cash of $278,489, prepaid time from clients in the amount of $21,511 and the issuance of a promissory note in the amount of $1,025,000 (the “JCS Note”) for a total of $1,325,000. The JCS Note is due in 36 months from the closing date and bears interest at a rate of two percent (4.25%) per annum.
For the Year Ended December 31, 2022:
On January 1, 2022, the Company entered into an asset purchase agreement with Dynamic Tech Services, Inc (“DTSI”) to acquire certain assets of DTSI. The purchase price for the Acquired Assets was $1,335,000, $500,000 of which was paid in cash in December 2021 and $835,000 of which was paid through the issuance of a four-year $835,000 promissory note dated January 1, 2022, paying interest at the rate of 3.25% per annum (see Notes 7 and 11).
On January 22, 2022, the Company entered into an agreement to acquire certain assets of NEO3, LLC (“NEO3”). The purchase price for the customer list was $225,000, $150,000 of which was paid in cash and $75,000 of which was paid through the issuance of a three-year $75,000 promissory note dated January 22, 2022, paying interest at the rate of 2% per annum. The Company also assumed $73,672 of prepaid time as part of the consideration for this transaction.
On April 15, 2022, the Company incurred approximately $494,383 in financial lease obligations for purchases of equipment.
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