ASURE SOFTWARE INC MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS (FORM 10-Q)

ASURE SOFTWARE INC MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS (FORM 10-Q)

Cautionary assertion concerning forward-looking statements

This Type 10-Q comprises forward-looking statements about our monetary outcomes,
which can embrace anticipated or projected U.S GAAP and non-U.S. GAAP monetary and
different working and non-operating outcomes, together with, by the use of instance,
income, web revenue, diluted earnings per share, working money stream development,
working margin enchancment, deferred income development, anticipated income run
charge, bookings, anticipated tax charges, stock-based compensation bills,
amortization of bought intangibles, amortization of debt low cost and shares
excellent. The achievement or success of the issues lined by such
forward-looking statements entails dangers, uncertainties and assumptions, over
a lot of which now we have no management. If any such dangers or uncertainties materialize
or if any of the assumptions show incorrect, the Firm's outcomes may differ
materially from the outcomes expressed or implied by the forward-looking
statements we make. The dangers and uncertainties referred to above include-but
are usually not restricted to-risks related to potential fluctuations within the Firm's
monetary and working outcomes; the Firm's charge of development and anticipated
income run charge, together with impression of the present surroundings, the unfold of
main pandemics or epidemics (together with COVID-19), interruptions to produce
chains and prolonged shut down of companies, political unrest, together with the
present points between Russian and Ukraine, reductions in employment and an
improve in enterprise failures, particularly amongst our purchasers, the
Firm's capacity to transform deferred income and unbilled deferred income into
income and money stream, and talent to keep up continued development of deferred
income and unbilled deferred income; errors, interruptions or delays within the
Firm's providers or the Firm's Website hosting; breaches of the Firm's
safety measures; home and worldwide regulatory developments, together with
modifications to or applicability to our enterprise of privateness and information securities legal guidelines,
cash transmitter legal guidelines and anti-money laundering legal guidelines; the monetary and different
impression of any earlier and future acquisitions; the character of the Firm's
enterprise mannequin, together with dangers associated to authorities contracts; the
Firm's capacity to proceed to launch, acquire buyer acceptance of and
present assist for brand spanking new and improved variations of the Firm's providers;
profitable buyer deployment and utilization of the Firm's current and
future providers; modifications within the Firm's gross sales cycle; competitors; varied
monetary elements of the Firm's subscription mannequin; sudden will increase in
attrition or decreases in new enterprise; the Firm's capacity to appreciate
advantages from strategic partnerships and strategic investments; the rising
markets during which the Firm operates; distinctive elements of getting into or increasing
in worldwide markets, together with the compliance with United States export
management legal guidelines, the Firm's capacity to rent, retain and inspire staff and
handle the Firm's development; modifications within the Firm's buyer base;
technological developments; litigation and any associated claims, negotiations and
settlements, together with with respect to mental property issues or
industry-specific rules; unanticipated modifications within the Firm's efficient
tax charge; regulatory pressures on financial reduction enacted because of the
COVID-19 pandemic that change or trigger completely different interpretations with respect to
eligibility for such applications; components affecting the Firm's time period mortgage;
fluctuations within the variety of Firm shares excellent and the value of such
shares; rates of interest; assortment of receivables; components affecting the
Firm's deferred tax belongings and talent to worth and make the most of them; the
potential unfavorable impression of oblique tax publicity; the dangers and
bills related to the Firm's actual property and workplace amenities house;
and normal developments within the economic system, monetary markets, credit score markets and
the impression of present and future accounting pronouncements and different monetary
reporting requirements.

Additional info on these and different components that would have an effect on the Firm's
monetary outcomes is included within the experiences on Types 10-Ok, 10-Q and 8-Ok, and in
different filings we make with the SEC every so often. These paperwork are
obtainable on the SEC Filings part of the Investor Data part of the
Firm's web site at investor.asuresoftware.com. Asure assumes no obligation and
doesn't intend to replace these forward-looking statements, besides as required
by regulation.

OVERVIEW

Our Enterprise

The next evaluate of Asure's monetary place as of September 30, 2022 and
December 31, 2021, and outcomes of operations for the three and 9 months ended
September 30, 2022 and 2021 ought to be learn together with our 2021 Annual
Report on Type 10-Ok filed with the SEC on March 14, 2022. Asure's web
web site tackle is www.asuresoftware.com. Our annual experiences on Type 10-Ok,
quarterly experiences on Type 10-Q, present experiences on Type 8-Ok and amendments to
these experiences filed or furnished pursuant to Part 13(a) or 15(d) of the
Securities Trade Act of 1934 can be found via the investor relations
web page of our web web site freed from cost as quickly as moderately practicable
after they're electronically filed, or furnished to, the SEC. Asure's web
web site and the knowledge contained in our web site or related to our web site
are usually not integrated into this Quarterly Report on Type 10-Q, nevertheless we do publish
info on the investor relations web page of our web site that we imagine could also be
of curiosity to our buyers.
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Asure is a number one supplier of cloud-based Human Capital Administration ("HCM")
software program and providers. We assist small and medium-sized companies ("SMBs") develop
by providing the HR instruments crucial to construct a greater workforce, offering the
sources to remain compliant with ever altering federal, state, and native tax
jurisdictions and labor legal guidelines, finally releasing their money flows to allow them to
spend their monetary capital on rising their enterprise relatively than back-office
overhead that impedes development. Asure's HCM suite, named AsureHCM, consists of
cloud-based Payroll & Tax, HR, and Time & Attendance software program in addition to HR
Companies starting from HR tasks to fully outsourcing payroll and HR
employees. We additionally provide these services and products via our community of Reseller
Companions.

We're a number one supplier of cloud-based HCM options, delivered as a
software-as-a-service ("SaaS") for SMBs. From recruitment to retirement, our
options assist greater than 80,000 SMBs throughout america develop their
companies. About 15,000 of our purchasers are direct and roughly 65,000
remaining purchasers are oblique as they've contracts with Reseller Companions
that white label our options.

We try to be essentially the most trusted HCM useful resource to entrepreneurs and are targeted
on much less densely populated U.S. metropolitan cities the place fewer of our
opponents have a presence. Our answer technique solves three major
challenges that forestall companies from rising: HR complexity, allocation of
human and monetary capital, and the flexibility to construct nice groups. We've got
invested in, and intend to proceed to spend money on, analysis and improvement to
increase our answer. Asure HCM, our user-friendly answer, reduces the
administrative burden on employers and will increase worker productiveness whereas
managing the entire employment lifecycle.

Impression of the COVID-19 pandemic

In March 2020, the World Well being Group declared the COVID-19 outbreak to
be a world pandemic that resulted in federal, state and native authorities
imposed restrictions which have since been lifted. As of June 1, 2021, now we have
opened our places of work and resumed in individual work. We proceed to take proactive
measures, together with common cleansing of the places of work, and monitoring of the
Middle for Illness Management pointers for returning to work. We are going to proceed to
actively monitor the scenario and will take additional actions that alter our
enterprise operations as could also be required by federal, state or native authorities or
that we decide are in the most effective pursuits of our staff and purchasers.

In 2022, we proceed to aggressively spend money on gross sales and advertising and in
analysis and improvement to drive future development and increase our market share.
Decrease headcount at our purchasers and different pandemic-related components, which had a
unfavorable impression on recurring income, mixed with elevated gross sales and
advertising and analysis and improvement bills, cumulatively had an adversarial
impression on our working outcomes for the quarter ended September 30, 2022. We
anticipate web revenue to be negatively affected by the impression of the pandemic on our
recurring income and our deliberate, elevated stage of funding in gross sales and
advertising and analysis and improvement to drive the expansion of our enterprise.

Previous to the COVID-19 pandemic, our gross sales power traveled regularly to market
our answer set. The present distant work surroundings presents a novel
alternative as a result of every gross sales worker is ready to meet nearly with a better
variety of consumer prospects in a given day than they might if conducting
in-person conferences. Though now we have not skilled such challenges up to now, if
purchasers and consumer prospects are usually not as keen or obtainable to have interaction by video
convention and teleconference, the shift from in-person to digital gross sales
conferences may negatively have an effect on our gross sales efforts, impede consumer acquisition
and lengthen our gross sales cycles, which might negatively impression our enterprise and
outcomes of operations and will impression our monetary situation sooner or later.

We're unable to estimate the persevering with impression the COVID-19 pandemic may have
on our enterprise and outcomes of operations sooner or later as a result of quite a few
uncertainties, together with the severity of the illness, the incidence of variant
strains, the length of the outbreak, actions that could be taken by governmental
authorities, the impression it might have on the enterprise of our purchasers and different
components recognized in Half I, Merchandise 1A "Threat Components" in our 2021 Annual Report
on Type 10-Ok.

Acquisitions

On September 30, 2021, our subsidiary, Evolution Payroll Processing LLC ("EPP"),
acquired sure belongings of a payroll enterprise, which have been used to supply
payroll processing providers. The combination buy worth we paid for the belongings
was $24,150, together with: (i) $15,000 in money at closing, (ii) the supply of 523
shares of the Firm's widespread inventory which the events agreed had an combination
worth of $4,800 as of September 30, 2021, and (iii) the supply of a promissory
observe of $4,350. The promissory observe quantity as of September 30, 2022 was $4,080
as a result of a principal cost made throughout the interval.

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Additionally on September 30, 2021, EPP acquired sure belongings of a payroll enterprise,
which have been used to supply payroll processing providers. The combination buy
worth for these belongings was $14,750, paid as follows: (i) $10,325 in money at
closing, (ii) the supply of 244 shares of the Firm's widespread inventory which the
events agreed had an combination worth of $2,213 as of September 30, 2021, and
(iii) the supply of a promissory observe within the quantity of $2,213. The promissory
observe was adjusted to $2,223 to account for publish shut and dealing capital
changes.

On January 1, 2022, the Firm acquired sure belongings of a Reseller Associate,
which have been used to supply payroll processing providers. The Associate is situated
within the northeastern United States. The combination buy worth that the Firm
paid for these belongings was $2,350, paid as follows: (i) $1,939 in money at closing
and (ii) the supply of a promissory observe within the quantity of $411.

Operations outcomes (in hundreds)

The next desk exhibits, for the indicated monetary intervals, the proportion of complete income represented by sure gadgets within the firm’s condensed consolidated assertion of complete loss:

                                                      Three Months Ended September 30,                 9 Months Ended September 30,
                                                        2022                     2021                    2022                    2021
Revenues                                                      100  %                 100  %                   100  %                 100  %
Gross revenue                                                   62  %                  60  %                    62  %                  61  %
Gross sales and advertising                                            22  %                  22  %                    21  %                  20  %
Normal and administrative                                     37  %                  39  %                    36  %                  37  %
Analysis and improvement                                        6  %                   8  %                     7  %                   7  %
Amortization of intangible belongings                              15  %                  14  %                    15  %                  14  %
Complete working bills                                       79  %                  83  %                    80  %                  78  %
Curiosity expense                                               (5) %                  (3) %                    (5) %                  (2) %
Different revenue(expense), web                                      2  %                  59  %                     2  %                  19  %
Acquire on extinguishment of debt                                  -  %                  (2) %                     -  %                  15  %
Loss from operations earlier than revenue taxes                      (20) %                  31  %                   (20) %                  15  %
Internet loss                                                      (21) %                  30  %                   (20) %                  14  %



Income

Revenues are comprised of recurring revenues, skilled providers, {hardware},
and different revenues. We anticipate our revenues to extend as we introduce new
purposes, increase our consumer base and renew and increase relationships with
current purchasers. As a share of complete revenues, we anticipate our mixture of
recurring revenues, {and professional} providers, {hardware} and different revenues to
stay comparatively fixed. Whereas income combine varies by product, recurring
income represented over 93% of complete income in 9 months ended September 30,
2022, in comparison with 94% in 9 months ended September 30, 2021.

Our income was sourced from the next sources (in hundreds):

                                         Three Months Ended September 30,                    Variance
                                             2022                2021                 $                   %
Recurring                                $   19,959          $  16,374          $    3,585                   22  %
Skilled providers, {hardware} and
different                                         1,944              1,607                 337                   21  %
Complete                                        21,903             17,981               3,922                   22  %


                                              9 Months Ended September 30,                     Variance
                                                  2022                2021                 $                   %
Recurring                                     $   61,977          $  51,688          $   10,289                   20  %
Skilled providers, {hardware} and different          4,559              3,263               1,296                   40  %
Complete                                         $   66,536          $  54,951          $   11,585                   21  %



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Recurring Revenues

Recurring revenues embrace charges for our payroll, payroll tax, time and labor
administration, and different Asure options in addition to charges charged for type filings
and supply of consumer payroll checks and experiences. These revenues are derived
from fastened quantities charged per billing interval and typically a further charge
per worker or transaction processed. We don't require purchasers to enter into
long-term contractual commitments for our providers. Our billing interval varies by
consumer primarily based on when every consumer pays its staff, which can be weekly,
bi-weekly, semi-monthly or month-to-month. We additionally generate recurring income from our
Reseller Companions that license our options. As a result of recurring revenues are
primarily based, partly, on charges to be used of our purposes and the supply of checks
and experiences which can be levied on a per-employee foundation, our recurring revenues
improve as our purchasers rent extra staff. Recurring revenues are acknowledged
within the interval providers are rendered.

Recurring revenues embrace revenues referring to the annual processing of payroll
types, resembling Type W-2 and Type 1099, and revenues from processing unscheduled
payroll runs (resembling bonuses) for our purchasers. As a result of payroll types are
usually processed within the first quarter of the 12 months and lots of of our purchasers are
topic to type submitting necessities mandated by the ACA, first quarter revenues
and margins are typically greater than in subsequent quarters. We anticipate our
revenues will proceed to exhibit this seasonal sample associated to ACA type
filings for as long as the ACA (or substitute laws) consists of employer
reporting necessities. As well as, we regularly expertise elevated revenues
throughout the fourth quarter as a result of unscheduled payroll runs for our purchasers that
happen earlier than the top of the 12 months. Over time, we anticipate the seasonality of our
income cycle to lower to the extent purchasers make the most of extra of our non-payroll
purposes.

This income line additionally consists of curiosity earned on funds held for purchasers. We
accumulate funds from purchasers prematurely of both the relevant due date for
payroll tax submissions or the relevant disbursement date for worker cost
providers. These collections from purchasers are usually disbursed from one to 30
days after receipt, with some funds being held for as much as 120 days. We usually
make investments funds held for purchasers in cash market funds, demand deposit accounts,
business paper, fastened revenue securities and certificates of deposit till they
are paid to the relevant tax or regulatory companies or to consumer staff.
The quantity of curiosity we earn from the funding of consumer funds can be
impacted by modifications in rates of interest.

Income for the three months ended September 30, 2022 was $21,903, a rise
of $3,922, or 22%, from $17,981 for the three months ended September 30, 2021.
Recurring income improve is primarily as a result of our acquisitions on the finish of
the third quarter 2021 in addition to natural development associated to our Asure HCM suite
of providers.

Income for the 9 months ended September 30, 2022 was $66,536, a rise of
$11,585, or 21%, from $54,951 for the 9 months ended September 30, 2021.
Recurring income improve is primarily as a result of our acquisitions on the finish of
the third quarter 2021 in addition to natural development associated to our Asure HCM suite
of providers.
Skilled Companies, {Hardware} and Different Revenues

Skilled Companies, {Hardware} and Different Revenues represents implementation
charges, one-time consulting tasks, on-premise upkeep, and {hardware} units
to reinforce our software program merchandise.

Skilled providers, {hardware} and different income elevated $337, or 21%, for
the three months ended September 30, 2022 from the same interval in 2021,
primarily as a result of natural development associated to HR providers and payroll tax service
tasks.

Skilled providers, {hardware} and different income elevated $1,296, or 40%, for
the 9 months ended September 30, 2022 from the same interval in 2021,
primarily as a result of natural development associated to HR providers and payroll tax service
tasks.

Though our complete buyer base is extensively unfold throughout industries, our gross sales
are concentrated in SMBs. We proceed to focus on SMBs throughout industries as
potential prospects. Geographically, we promote our merchandise primarily in the
United States.

Along with persevering with to develop our workforce options and launch of recent
software program updates and enhancements, we proceed to actively discover different
alternatives to accumulate extra merchandise or applied sciences to enhance our
present software program and providers.

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Gross Revenue and Gross Margin

Consolidated gross revenue for the three months ended September 30, 2022 was
$13,647, a rise of $2,779, or 26%, from $10,868 for the three months ended
September 30, 2021. Gross margin as a share of income was 62% for the
three months ended September 30, 2022 as in comparison with 60% for the three months
ended September 30, 2021. Our improve in gross margin is primarily attributable
to the rise in income and extra environment friendly operations.

Consolidated gross revenue for the 9 months ended September 30, 2022 was
$41,372, a rise of $8,067, or 24%, from $33,305 for the 9 months ended
September 30, 2021. Gross margin as a share of income was 62% for the 9
months ended September 30, 2022 as in comparison with 61% for the 9 months ended
September 30, 2021. Our improve in gross margin is primarily attributable to
the rise in income and extra environment friendly operations.

Our value of gross sales relates primarily to direct product prices, compensation for
operations and associated consulting bills, {hardware} bills, amenities and
associated bills and the amortization of our bought software program improvement
prices. We embrace intangible amortization associated to developed and bought
expertise inside value of gross sales.

Gross sales and advertising bills

Gross sales and advertising bills primarily include salaries and associated bills
for gross sales and advertising employees, together with stock-based bills, commissions, as
properly as advertising applications, which embrace occasions, company communications and
product advertising actions.

Promoting and advertising bills for the three months ended September 30, 2022
have been $4,752, a rise of $855, or 22%, from $3,897 for the three months ended
September 30, 2021, primarily as a result of improve in promoting and advertising
spending, in addition to a rise in commissions ensuing from greater bookings.
Promoting and advertising bills as a share of income remained flat at 22%
for the three months ended September 30, 2022 from 22% for a similar interval in
2021.

Promoting and advertising bills for the 9 months ended September 30, 2022 have been
$14,238, a rise of $3,108, or 28%, from $11,130 for the 9 months ended
September 30, 2021, primarily as a result of improve in promoting and advertising
spending, in addition to a rise in commissions ensuing from greater bookings.
Promoting and advertising bills as a share of income elevated to 21% for
the 9 months ended September 30, 2022 from 20% for a similar interval in 2021.

We proceed to increase and improve promoting prices as we deal with hiring direct gross sales employees, increasing our model recognition, and producing leads.

Normal and administrative bills

Normal and administrative bills primarily include salaries and associated
bills, together with stock-based bills for finance and accounting, authorized,
inside audit, human sources and administration info techniques personnel,
authorized prices, skilled charges, and different company bills resembling transaction
prices for acquisitions.

Normal and administrative bills for the three months ended September 30,
2022 have been $8,023, a rise of $1,018, or 15%, from $7,005 for the three
months ended September 30, 2021, primarily attributable to elevated personnel
and contracting prices. Normal and administrative bills as a share of
income decreased to 37% for the three months ended September 30, 2022 from 39%
for a similar interval in 2021.

Normal and administrative bills for the 9 months ended September 30, 2022
have been $24,204, a rise of $3,880, or 19%, from $20,324 for the 9 months
ended September 30, 2021, primarily attributable to elevated personnel and
contracting prices. Normal and administrative bills as a share of
income decreased to 36% for the 9 months ended September 30, 2022 from 37%
for a similar interval in 2021.


Analysis and improvement expenditures

Analysis and improvement (“R&D”) bills primarily include salaries and associated bills, together with inventory-based bills for workers who assist our analysis and improvement actions.

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R&D bills for the three months ended September 30, 2022 have been $1,230, a
lower of $275, or 18%, from $1,505 for the three months ended September 30,
2021. The lower in R&D expense is a results of a rise in capitalizable
software program bills ensuing from a deal with developmental tasks. R&D bills
as a share of income decreased to six% for the three months ended September
30, 2022 from 8% for a similar interval in 2021.

R&D bills for the 9 months ended September 30, 2022 have been $4,523, an
improve of $551, or 14%, from $3,972 for the 9 months ended September 30,
2021. The rise in R&D expense is primarily attributable to a rise in
funding prices. R&D bills as a share of income remained flat at 7%
for the 9 months ended September 30, 2022 for a similar interval in 2021.

We are going to proceed to reinforce our merchandise and applied sciences via growth of
our technological sources by rising headcount and improvement
partnerships, in addition to via natural enhancements and bought mental
property. We are going to proceed to increase the breadth of integration between our
options, permitting direct purchasers and resellers the flexibility to simply add and
implement elements throughout our total answer set. We imagine that our
expanded funding in product, engineering, SaaS internet hosting, and cellular and
{hardware} applied sciences lays the groundwork for broader market alternatives and
represents a key facet of our aggressive differentiation. Native cellular
purposes, widespread consumer interface, expanded internet service integration and different
applied sciences are all a part of our initiatives.

Our improvement efforts for future releases and enhancements are pushed by
suggestions obtained from our current and potential prospects and by gauging
market traits. We imagine now we have the suitable improvement workforce to design and
improve our answer suite and built-in platform. We've got additionally made
important investments outdoors of core R&D into compliance and certifications,
together with SOC I Sort 2 and SOC II Sort 2 certifications, BIPA, CCPA, and different
initiatives.

Depreciation of intangible belongings

Amortization expense in working bills for the three months ended September
30, 2022 was $3,350, a rise of $816, or 32%, from $2,534 for the three
months ended September 30, 2021. Amortization expense as a share of income
elevated to fifteen% for the three months ended September 30, 2022 from 14% for the
identical interval in 2021, respectively.

Amortization expense in working bills for the 9 months ended
September 30, 2022 was $10,134, a rise of $2,544, or 34%, from $7,590 for
the 9 months ended September 30, 2021. Amortization expense as a share
of income elevated to fifteen% for the 9 months ended September 30, 2022 from
14% for a similar interval in 2021, respectively.

Curiosity expense, web

Curiosity expense, web for the three months ended September 30, 2022 was $1,122
in comparison with $530 for the three months ended September 30, 2021. The change in
curiosity expense and different is primarily attributed to the lower in honest worth
of the vendor notes from acquisitions. Curiosity expense, web as a share of
income was 5% for the three months ended September 30, 2022 in comparison with 3% for
the three months ended September 30, 2021. The rise in curiosity expense, web
within the present interval is primarily as a result of our credit score facility with Structural
Capital Investments II LP signed within the third quarter of 2021 as mentioned in
Word 6 - Notes Payable.

Curiosity expense, web for the 9 months ended September 30, 2022 was $3,006
in comparison with $977 for the 9 months ended September 30, 2021. The rise in
curiosity expense, web relative to the prior 12 months is attributable to new
borrowings underneath our credit score facility with Structural Capital Investments III LP
as mentioned in Word 6 - Notes Payable. Curiosity expense, web as a share of
income was 5% and a couple of% for the 9 months ended September 30, 2022 and
September 30, 2021, respectively.

Different revenue, web

Different revenue, web for the three months ended September 30, 2022 was $399
in comparison with $10,191 for the three months ended September 30, 2021. Different revenue,
web as a share of income was 2% for the three months ended September 30,
2022 in comparison with 59% for a similar interval ended September 30, 2021. For the three
months ended September 30, 2022, the quantities in different revenue, web primarily
consisted of contingent legal responsibility changes and debt extinguishment. For the
three months ended September 30, 2021, the quantities in different revenue, web
consisted of debt extinguishment associated to the Firm's Paycheck Safety
Program mortgage and quantities accrued for the Worker Retention Tax Credit score.

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Different revenue, web for the 9 months ended September 30, 2022 was $1,349
in comparison with $18,845 for the 9 months ended September 30, 2021. Different revenue,
web as a share of income was 2% and 19% for the 9 months ended
September 30, 2022 and September 30, 2021, respectively. For the 9 months
ended September 30, 2022, the quantities in different revenue, web primarily consisted
of contingent legal responsibility changes and debt extinguishment. For the 9 months
ended September 30, 2021, the quantities in different revenue, web consisted of debt
extinguishment associated to the Firm's Paycheck Safety Program mortgage and
quantities accrued for the Worker Retention Tax Credit score.

Revenue Taxes

For the three months ending September 30, 2022 And 2021, we recorded revenue tax expense attributable to continued operations $102 And the $260respectively, a lower of $158 or 61%.

For the 9 months ended September 30, 2022 and 2021, we recorded an revenue tax
expense attributable to persevering with operations of $206 and $663, respectively, a
lower of $457 or 69%.

Internet Loss

We incurred a lack of $4,533, or $0.22 per share, throughout the three months ended
September 30, 2022, in comparison with web revenue of $5,328, or $0.28 per share, throughout
the three months ended September 30, 2021. Loss and revenue as a share of
complete revenues was 21% and 30% for the three months ended September 30, 2022 and
2021, respectively.

We incurred a lack of $13,410, or $0.67 per share, throughout the 9 months ended
September 30, 2022, in comparison with revenue of $7,494, or $0.39 per share, throughout the
9 months ended September 30, 2021. Loss and revenue as a share of complete
revenues was 20% and 14% for the 9 months ended September 30, 2022 and 2021,
respectively.

Liquidity and capital sources (in hundreds)

                                September 30, 2022       December 31, 2021
Money and money equivalents(1)   $            10,885      $           13,427


(1) This steadiness doesn’t embrace money equivalents in funds held for purchasers

Working Capital. We had working capital of $5,179 at September 30, 2022, a
lower of $11,827 from working capital of $17,006 at December 31, 2021.
Working capital as of September 30, 2022 and December 31, 2021 consists of
$4,173 and $3,750 of short-term deferred income, respectively. Deferred income
is an obligation to carry out future providers. We anticipate that deferred income
will convert to future income as we carry out our providers, however this doesn't
signify future funds. Deferred income can range primarily based on seasonality,
expiration of preliminary multi-year contracts and offers which can be billed after
implementation relatively than prematurely of service supply.

Working Actions. Internet money offered by working actions of $6,957 for
the 9 months ended September 30, 2022 was primarily pushed by non-cash
changes to our web lack of roughly $17,917, primarily as a result of
depreciation and amortization. This was offset by our web lack of $13,410 and
modifications in working belongings and liabilities, which resulted in money offered of
$3,777. Internet money utilized in working actions of $1,144 for the 9 months
ended September 30, 2021 was pushed by non-cash changes to our web revenue of
roughly $7,026, primarily as a result of depreciation and amortization, offset by
our web revenue of $7,494. For the 9 months ended September 30, 2021, modifications
in working belongings and liabilities resulted in a use of $15,473 in money.

Investing Actions. Internet money utilized in investing actions of $33,991 for the
9 months ended September 30, 2022 is primarily as a result of our first quarter
acquisition totaling $2,289 and purchases of available-for-sale securities and
maturities of $33,454. Internet money utilized in investing actions of $21,042 for the
9 months ended September 30, 2021 is primarily as a result of proceeds from gross sales
and maturities of available-for-sale securities of $1,926.

financing actions. The online money used to finance the actions was $34,032 For the 9 months ended September 30, 2022which primarily consists of a web lower in buyer fund liabilities of $32527. The online money used to finance the actions was 133,990 {dollars} For the 9 months ended September 30, 2021which primarily consists of a web lower in buyer fund liabilities of 146206 {dollars}.

Sources of Liquidity. As of September 30, 2022, the Firm's principal sources
of liquidity consisted of roughly $10,885 of money, money equivalents and
restricted money, along with money generated from operations of our enterprise
over the subsequent twelve months.
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We can't guarantee that we are able to develop our money balances or restrict our money
consumption and thus keep ample money balances for our deliberate
operations or future acquisitions; nevertheless we do imagine that now we have ample
liquidity to assist our enterprise operations for no less than the subsequent twelve
months. Future enterprise calls for might result in money utilization at ranges better
than just lately skilled. We might have to lift extra capital sooner or later
with a view to develop our current software program operations and to hunt extra
strategic acquisitions within the close to future. Additional, we can't guarantee that we
will be capable to increase extra capital on acceptable phrases, or in any respect.

SIGNIFICANT ACCOUNTING POLICIES

We've got ready our Condensed Consolidated Monetary Statements in accordance
with U.S. typically accepted accounting ideas and included the accounts of
our wholly owned subsidiaries. We've got eradicated all important intercompany
transactions and balances within the consolidation. Preparation of the Condensed
Consolidated Monetary Statements in conformity with U.S. typically accepted
accounting ideas requires administration to make estimates and assumptions that
have an effect on the reported quantities of the belongings and liabilities, the disclosure of
contingent belongings and liabilities on the date of the monetary statements and
the reported quantities of revenues and bills throughout the reporting interval. These
estimates are subjective in nature and contain judgments that have an effect on the
reported quantities of belongings and liabilities, the disclosure of contingent belongings
and liabilities at fiscal year-end and the reported quantities of revenues and
bills throughout the fiscal 12 months. The extra important estimates made by
administration embrace the valuation allowance for our gross deferred tax asset, the
willpower of the honest worth of our long-lived belongings. We base our estimates
on historic expertise and on varied different assumptions that administration
believes are affordable underneath the given circumstances. These estimates might be
materially completely different underneath completely different situations and assumptions. Moreover,
the precise quantities may differ from the estimates made. Administration periodically
evaluates estimates used within the preparation of our monetary statements for
continued reasonableness. We prospectively apply applicable changes, if
any, to our estimates primarily based upon our periodic analysis. For an outline of
our crucial accounting insurance policies, see Administration's Dialogue and Evaluation in
our Annual Report on Type 10-Ok for the 12 months ended December 31, 2021.
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