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| SSVE.OB > SEC Filings for SSVE.OB > Form 10-K on 28-Aug-2009 | All Recent SEC Filings |
28-Aug-2009
Annual Report
Forward-Looking Statements
Certain statements, other than purely historical information, including
estimates, projections, statements relating to our business plans, objectives,
and expected operating results, and the assumptions upon which those statements
are based, are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. These
forward-looking statements generally are identified by the words "believes,"
"project," "expects," "anticipates," "estimates," "intends," "strategy," "plan,"
"may," "will," "would," "will be," "will continue," "will likely result," and
similar expressions. We intend such forward-looking statements to be covered by
the safe-harbor provisions for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995, and are including this
statement for purposes of complying with those safe-harbor provisions.
Forward-looking statements are based on current expectations and assumptions
that are subject to risks and uncertainties which may cause actual results to
differ materially from the forward-looking statements. Our ability to predict
results or the actual effect of future plans or strategies is inherently
uncertain. Factors which could have a material adverse affect on our operations
and future prospects on a consolidated basis include, but are not limited to:
changes in economic conditions, legislative/regulatory changes, availability of
capital, interest rates, competition, and generally accepted accounting
principles. These risks and uncertainties should also be considered in
evaluating forward-looking statements and undue reliance should not be placed on
such statements. We undertake no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information, future
events or otherwise. Further information concerning our business, including
additional factors that could materially affect our financial results, is
included herein and in our other filings with the SEC.
Results of Operations for the years ended May 31, 2009 and 2008
To become more profitable and competitive, we have to attract more clients, sell our services and generate more revenues.
Our revenue reported for the year ended May 31, 2009 was $1,974,163, compared with $1,005,863 for the year ended May 31, 2008. Our revenue generated for both periods was attributable to the sale of our BPO services. The increase in revenues for the year ended May 31, 2009 from the same period in 2008 is attributable to an increase in the sale of our BPO services as a result of expanding our facilities and operations.
Returns and allowances are refunds for services not provided. Returns and allowances for the year ended May 31, 2009 amounted to $60,871, compared with $16,093 for the same period ended May 31, 2008. We experienced more returns and allowances in the year ended May 31, 2009 compared with the same period 2008 as a result of our increased customer base.
Our revenue less returns and allowances is our total revenue. Total revenue for the year ended May 31, 2009 was $1,913,292, compared with $989,770 for the same period ended May 31, 2008.
Our operating expenses for the year ended May 31, 2009 was $1,649,498, compared with $1,378,788 for the same period ended May 31, 2008. The increase was caused by increased operational activity.
We had other expenses of $58,682 for the year ended May 31, 2009. Other expenses for this period consisted mainly of $96,282 in losses from currency hedging transactions, offset by gains on the sale of investments in the amount of $24,712, interest income of $6,250, miscellaneous income of $4,906, and gains on the sale of our Boca Raton property in the amount of $1,732. In comparison, we experienced other income of $30,631 for the year ended May 31, 2008. Other expenses for this period consisted mainly of $32,913 in gains on the sale of investments in the amount of $32,913 and interest income of $3,543, offset by losses from currency hedging transactions in the amount of $5,825.
We had net income of $255,112 for the year ended May 31, 2009, compared with a net loss of $358,387 for the year ended May 31, 2008.
Liquidity and Capital Resources
As at May 31, 2009, we had $594,611 in current assets and $60,240 in current liabilities. On May 31, 2009, we had working capital of $534,371.
Operating activities provided $500,586 in cash for year ended May 31, 2009. Our stock based compensation expense of $222,000, net income of $255,112, along with depreciation of $58,789, accrued wages of $25,560 and accounts payable of $21,248 were the primary components of our positive operating cash flow, offset mainly by deferred income tax of $50,000. Cash flows used by investing activities during the year ended May 31, 2009 was $398,472 mainly as a result of $324,778 from the purchase of property and equipment, change in investment in marketable securities in the amount of $96,525, offset by $34,956 from the sale of property and equipment. Cash flows used by financing activities during the year ended May 31, 2009 was $64,207 as a result of $64,207 from the purchase of treasury stock.
Currently, our primary source of liquidity is cash flows provided by our operations. We will not require additional capital to execute our plan, unless we expand into additional facilities or grow through the acquisition of complementary businesses. Our current cash flows from operations are sufficient to meet our working capital requirements over the next 12 months.
Research and Development
We will not be conducting any product research or development during the next 12 months.
Off Balance Sheet Arrangements
As May 31, 2009, there were no off balance sheet arrangements.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
A smaller reporting company is not required to provide the information required by this Item.
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