UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 25, 2021
|
SILVERSUN TECHNOLOGIES, INC. |
|
(Exact name of registrant as specified in its charter) |
|
Delaware |
000-50302 |
16-1633636 |
||
|
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
120 Eagle Rock Ave
East Hanover, NJ 07936
(Address of Principal Executive Offices)
(973) 396-1720
Registrant’s telephone number, including area code
Check the appropriate box below if the 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:
|
☐ |
Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)). |
Securities registered pursuant to Section 12(b) of the Act:
|
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
|
Common Stock, par value $0.00001 per share |
SSNT |
The NASDAQ Capital Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01 Regulation FD Disclosure
On March 25, 2021, SilverSun Technologies, Inc. (the “Company”) issued a press release regarding the Company’s financial results for the fourth quarter and year ended December 31, 2020, which is also disclosed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 25, 2021. A copy of the Company’s press release is attached hereto as Exhibit 99.1. The attached exhibit is provided under Item 7.01 of this current report on Form 8-K and is furnished to, but not filed with, the Securities and Exchange Commission.
Item 8.01 Other Events
On March 30, 2021, SilverSun Technologies, Inc. (NASDAQ: SSNT), a national provider of transformational business software applications and managed IT services, announced that its wholly-owned subsidiary, SWK Technologies, Inc., has signed a letter of intent to acquire the Human Capital Management (“HCM”) division of PeopleSense, Inc. (“PS”) , a leading Chicago-based reseller of Sage Software’s human resource management solutions. Over the last 18 years, PeopleSense has implemented HCM solutions to clientele spanning over half of the United States, Canada, Puerto Rico and the U.S. Virgin Islands. A copy of the Company’s press release is attached hereto as Exhibit 99.2.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
|
Exhibit No. |
Description |
|
|
99.1* |
||
|
99.2* |
*Filed herewith
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SILVERSUN TECHNOLOGIES, INC.
|
Date: March 31, 2021 |
By: |
/s/ Joseph P. Macaluso |
|
|
Joseph P. Macaluso |
|||
|
Principal Financial Officer |
|||
Exhibit 99.1
SilverSun Technologies Reports 2020 Fourth Quarter and Full Year Financial Results
EAST HANOVER, NJ – ( ) – March 25, 2021 – SilverSun Technologies, Inc. (NASDAQ: SSNT), a national provider of transformational business technology solutions and services, today announced its financial and operating results for the fourth quarter and full year ended December 31, 2020.
Fourth Quarter Ended December 31, 2020 Financial Highlights
|
● |
Total revenue was $11,308,787, compared with $9,967,886 in 2019, an increase of 13.5%. |
|
● |
Gross Profit was $4,736,117, compared with $3,723,109 in 2019, an increase of 27.2%. |
|
● |
Income from continuing operations was $480,391, versus a loss from continuing operations of $399,557 in 2019, an increase of $879,948. |
Fiscal 2020 Financial Highlights
|
● |
Total revenue was $41,220,406, compared with $38,502,482 in 2019, an increase of 7.1%. |
|
● |
Gross profit was $16,578,981, compared with $14,678,454 in 2019, an increase of 12.9%. |
|
● |
Earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA), were $929,317, compared with a loss from continuing operations before interest, taxes, depreciation and amortization of $1,187,026 in 2019, an increase of $2,116,343. |
|
● |
Earnings per share from continuing operations in 2020 (on a diluted basis) were $0.04, compared to a loss per share from continuing operations of $0.33 in 2019. |
|
● |
As of December 31, 2020, cash totaled $6,595,416, and the Company had $1,892,129 in long term liabilities. |
For more detailed information about SilverSun's 2020 financial results, please refer to the Company's Form 10-K filed with the U.S. Securities and Exchange Commission (www.sec.gov) on Thursday, March 25, 2021.
“We are grateful that the Covid pandemic did not negatively impact our performance in 2020,” said Mark Meller, Chief Executive Officer of SilverSun. “In fact, the investments the Company made in the past few years in our IT managed services division, which provides managed services, cybersecurity, application hosting and Infrastructure-as-a-Service, enabled us to successfully achieve this past year. Customers in 2020 were required to adapt to the new work-from-home paradigm, and we were able to provide them with the technology and expertise required for them to operate their businesses remotely and securely.”
“Similarly, our ERP software and consulting division was also very busy. While we had customers negatively impacted by Covid, many of our customers took the long view that their businesses were going to continue to flourish after the pandemic. As a result, they took the opportunity in 2020 to accelerate their anticipated technology projects, which resulted in greater software sales and higher consultant utilization. Of even greater import, we had a very successful year selling ERP systems to net new customers. In fact, we were so successful that we were named by Sage Software as the Partner of the Year for 2020 for New Acquisitions.”
“Our operating results for 2020 show the impact of our organizational focus on margin improvement and cost reduction. Gross margin as a percentage of revenues increased to 40.2% in 2020, compared to 38.1% in 2019. Similarly, our selling, general and administrative expenses (SG&A), excluding depreciation and amortization, decreased to 37.9% of revenue in 2020, compared to 40.5% in 2019. We continue to review and implement cost-saving measures to reduce our operating expenses in order that we can improve our operating margins in the upcoming quarters.”
“Acquisitions have always been an important part of our growth strategy. We successfully completed 3 acquisitions in 2020, and have already successfully integrated them into our operations. We will continue to aggressively seek additional acquisition opportunities, and I am optimistic that we will be able to successfully acquire a similar or greater number of strategic companies in 2021.”
Meller concluded, “We are confident we can continue our upward trend in both revenue and profitability. The Company is well positioned for success, and we look forward to continuing to deliver positive news and results in the coming months.”
About SilverSun Technologies, Inc.
We are a business application, technology and consulting company providing software and IT solutions to meet our clients’ information, technology and business management needs. Our services and technologies enable customers to manage, protect and monetize their enterprise assets whether on-premise or in the “cloud”. As a value-added reseller of business application software, we offer solutions for accounting and business management, financial reporting, Enterprise Resource Planning (“ERP”), Warehouse Management Systems (“WMS”), Customer Relationship Management (“CRM”), Business Intelligence (“BI”) and other business applications. Our value-added services focus on consulting and professional services, specialized programming, training, and technical support. We have a dedicated network managed services practice that provides cybersecurity, application hosting, disaster recovery, business continuity, cloud and other services. Our customers are nationwide, with concentrations in the New York/New Jersey metropolitan area, Chicago, Arizona, Southern California, North Carolina, Washington and Oregon.
Forward-Looking Statements
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things our plans, strategies and prospects -- both business and financial. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Many of the forward-looking statements contained in this news release may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," and "potential," among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include market conditions and those set forth in reports or documents that we file from time to time with the United States Securities and Exchange Commission. All forward-looking statements attributable to SilverSun Technologies, Inc. or a person acting on its behalf are expressly qualified in their entirety by this cautionary language.
Contact:
Corporate
Mark Meller, CEO
SilverSun Technologies, Inc.
973-758-6108
meller@silversuntech.com
Exhibit 99.2
SilverSun Technologies Signs Letter of Intent to Acquire Human Capital Management Division of PeopleSense
EAST HANOVER, NJ, March 30, 2021 ( ) – SilverSun Technologies, Inc. (NASDAQ: SSNT), a national provider of transformational business software applications and managed IT services, announced today that its wholly-owned subsidiary, SWK Technologies, Inc., has signed a letter of intent to acquire the human capital management (“HCM”) division of PeopleSense, Inc. (“PS”) , a leading Chicago-based reseller of Sage Software’s human resource management solutions. Over the last 18 years, PeopleSense has implemented HCM solutions to clientele spanning over half of the United States, Canada, Puerto Rico and the U.S. Virgin Islands
SilverSun’s subsidiary, SWK Technologies, is one of the largest Sage business partners in North America. While its focus has historically been on enterprise resource planning (ERP), warehouse management systems (WMS), business intelligence (BI), customer relationship management (CRM) and other applications, the Company established an HCM division in 2018 to better serve its over 5000 customers with a broader range of technology solutions. Since then, SWK’s HCM division has developed into one of the fastest growing divisions in the entire company.
Mark Meller, CEO of both SilverSun and SWK, stated, “The COVID-19 pandemic has given rise to HCM projects and challenges that were unanticipated, accelerating the transformational impact of new technologies. Covid has resulted in remote work becoming the new normal, making HCM an even more critical tool for our customers as they need to increase the use of technology to track employees, to connect and communicate with employees and support their development and well-being, and to conduct workforce planning and to redeploy employees.”
James Castellano, President of PeopleSense, commented, “Our companies have worked jointly together in the past, and we know each other well. The customer‐focused approach and corporate culture at SWK is almost identical to ours. The skill set of their team is exceptional, and both companies share the same corporate values. There are tremendous opportunities ahead, and the size and scale of the combined organizations will enable SWK to take full advantage of these opportunities.”
It is anticipated that the transaction, which is subject to the signing of definitive agreements and customary closing conditions, will close in the second quarter of 2021.
About SilverSun Technologies, Inc.
We are a business application, technology and consulting company providing software and IT solutions to meet our clients’ information, technology and business management needs. Our services and technologies enable customers to manage, protect and monetize their enterprise assets whether on-premise or in the “cloud”. As a value-added reseller of business application software, we offer solutions for accounting and business management, financial reporting, Enterprise Resource Planning (“ERP”), Warehouse Management Systems (“WMS”), Customer Relationship Management (“CRM”), Business Intelligence (“BI”), Human Capital Management (“HCM”) and other business applications. Our value-added services focus on consulting and professional services, specialized programming, training, and technical support. We have a dedicated network managed services practice that provides cybersecurity, application hosting, disaster recovery, business continuity, cloud and other services. Our customers are nationwide, with concentrations in the New York/New Jersey metropolitan area, Chicago, Arizona, Southern California, North Carolina, Washington and Oregon.
Forward-Looking Statements
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things our plans, strategies and prospects -- both business and financial. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Many of the forward-looking statements contained in this news release may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," and "potential," among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include market conditions and those set forth in reports or documents that we file from time to time with the United States Securities and Exchange Commission. All forward-looking statements attributable to SilverSun Technologies, Inc. or a person acting on its behalf are expressly qualified in their entirety by this cautionary language.
Contact:
Corporate
Mark Meller
SilverSun Technologies, Inc.
973-758-6108
meller@silversuntech.com