SupportSave Solutions Inc - FORM 10-Q/A - April 26, 2010

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EX-32.1 - EXHIBIT 32.1 - SupportSave Solutions Incex32_1.htm
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EX-31.1 - EXHIBIT 31.1 - SupportSave Solutions Incex31_1.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10-Q/A

[X]
Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
   
 
For the quarterly period ended November 30, 2009
   
[  ]
Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934
   
 
For the transition period from __________ to __________
   
 
Commission File Number: 333-143901

SupportSave Solutions, Inc.
(Exact name of  registrant as specified in its charter)

Nevada
98-0534639
(State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.)

3450 Cahuenga Blvd West, Suite 409, Los Angeles, CA 90068
(Address of principal executive offices)

(925) 304-4400
( Registrant’s telephone number)
 
_______________________________________________________________
(Former name, former address and former fiscal year, if changed since last report)
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days [X] Yes    [ ] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceeding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [  ] No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

[ ] Large accelerated filer Accelerated filer
[ ] Non-accelerated filer
[X] Smaller reporting company
  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). [ ] Yes   [X] No

State the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 13,255,198 common shares as of December 30, 2009.
 
 
EXPLANATORY NOTE

The purpose of this Amendment No. 1 to the Quarterly Report on Form 10-Q, previously filed with the United States Securities and Exchange Commission on December 31, 2009, is to correct the receivables as they were overstated by $106,410.   Consequently we are restating the revenue and net income to $847,965 and $259,424 respectively. We also had a one-time sale of a website that contributed an additional $141,812.50 in revenue.   
 

PART I - FINANCIAL INFORMATION

Item 1.     Financial Statements



These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the SEC instructions to Form 10-Q. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the interim period ended November 30, 2009 are not necessarily indicative of the results that can be expected for the full year.

SUPPORTSAVE SOLUTIONS, INC.
Consolidated Balance Sheets
As of November 30, 2009(Unaudited) and May 31, 2009 (Audited)

ASSETS      
 
November 30, 2009
(Unaudited)
(restated)
 
May 31, 2009
(Audited)
Current Assets
     
Cash and cash equivalents
$ 1,050,216   $ 474,626
Investment in marketable securities
  20,013     98,063
Accounts receivable - trade
  144,338     14,931
Accounts receivable - other
  -0-     6,200
Prepaid expenses
  3,240     790
Total Current Assets
  1,217,807     594,610
           
Property and equipment, net
  185,042     130,546
           
Other Assets
         
Security deposits
  11,482     7,482
Note receivable - Florida office building
  210,000     210,000
Investment in closely held company
  16,500     -0-
Deferred income tax
  -0-     50,000
Total Other Assets
  237,982     267,482
           
TOTAL ASSETS
$ 1,640,831   $ 992,638
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Liabilities
         
Current Liabilities
         
Accounts payable - trade
$ 32,344   $ 31,960
Accrued wages and taxes
  37,013     25,560
Deferred revenue
  5,811     2,719
Accrued income taxes
  154,000     -0-
Current portion of long-term debt
  5,081     -0-
Loan payable - officer
  800     -0-
Total Current Liabilities
  235,049     60,239
           
Long Term Liabilities
         
Note payable
  23,842     -0-
           
Total Liabilities
  258,891     60,239
           
STOCKHOLDERS' EQUITY
         
Common stock, $.00001 par value, 100,000,000 shares authorized, 13,255,198 shares issued and outstanding
  132     132
Preferred stock, $.00001 par value, 100,000,000 shares authorized, 0 shares issued and outstanding
  -0-     -0-
Additional paid-in-capital
  1,153,096     1,143,291
Treasury stock
  (3,029)     (64,207)
Cumulative translation adjustment
  (30,294)     (21,958)
Retained earnings (deficit)
  262,035     (124,859)
Total Stockholders' Equity
  1,381,940     932,399
           
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$ 1,640,831   $ 992,638
See accompanying notes to the consolidated financial statements 
SUPPORTSAVE SOLUTIONS, INC.
Consolidated Statements of Operations (Unaudited)
For the Three and Six Months Ended November 30, 2009 and 2008
 
For the three months ended November 30, 2009 (Unaudited)
(Restated)
 
For the three months ended November 30, 2008 (Unaudited)
 
For the six months ended November 30, 2009 (Unaudited)
(Restated)
 
For the six months ended November 30, 2008 (Unaudited)
REVENUE
             
Sales
$ 851,056   $ 411,854   $ 1,447,860   $ 866,314
Less returns and allowances
  (3,091)     (18,206)     (8,202)     (34,768)
TOTAL NET REVENUE
  847,965     393,648     1,439,658     831,546
                       
OPERATING EXPENSES
  457,926     539,426     903,986     848,166
                       
OPERATING INCOME (LOSS)
  390,039     (145,778)     535,672     (16,620)
                       
OTHER INCOME (EXPENSE)
                     
Interest income
  3,093     2,200     6,973     4,026
Other income
  -0-     -0-     125     4,596
Gains on sales of investments
  -0-     16,186     24,395     16,186
Gains/(losses) from currency hedging contracts
  9,444     (41,627)     26,881     (60,522)
(Losses) on sales of assets
  (3,152)     -0-     (3,152)     -0-
TOTAL OTHER INCOME (EXPENSE)
  9,385     (23,241)     55,222     (35,714)
                       
NET INCOME (LOSS) BEOFRE PROVISION FOR INCOME TAXES
  399,424     (169,019)     590,894     (52,334)
                       
PROVISION FOR FEDERAL INCOME TAX (BENEFIT)
  (140,000)     182,600     (204,000)     143,000
                       
NET INCOME
$ 259,424   $ 13,581   $ 386,894   $ 90,666
                       
NET INCOME PER SHARE: BASIC AND DILUTED
$ 0.02   $ 0.00   $ 0.03   $ 0.01
                       
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED
  13,255,198     12,932,121     13,255,198     12,792,155
See accompanying notes to the consolidated financial statements 
SUPPORTSAVE SOLUTIONS, INC.
Consolidated Statement of Changes in Stockholders' Equity (Unaudited)
As of November 30, 2009
 
Common Stock
 
Additional
Paid-in
 
Treasury
 
Cumulative
Translation
 
Retained
Earnings
 
Stockholders'
 
Shares
 
Amount
 
Capital
 
Stock
 
Adjustment
 
(Deficit)
 
Equity
                           
Balance, May 31, 2008
  12,655,198   $ 126   $ 921,297   $ -0-   $ (9,833)   $ (379,972)   $ 531,618
                                         
Issuance of common stock
  600,000     6     221,994     -0-     -0-     -0-     222,000
                                         
Purchase of treasury stock
  -0-     -0-     -0-     (64,207)     -0-     -0-     (64,207)
                                         
Net income and translation
                                       
adjustment
  -0-     -0-     -0-     -0-     (12,125)     255,113     242,988
                                         
Balance, May 31, 2009
  13,255,198   $ 132   $ 1,143,291   $ (64,207)   $ (21,958)   $ (124,859)   $ 932,399
                                         
Purchase of treasury stock
  -0-     -0-     -0-     (9,017)     -0-     -0-     (9,017)
                                         
Private placement of common stock
  0     -0-     9,805     70,195     -0-     -0-     80,000
                                         
Net income and translation adjustment
  -0-     -0-     -0-     -0-     (8,336)     386,894     378,558
                                         
Balance, November 30, 2009
  13,255,198   $ 132   $ 1,153,096   $ (3,029)   $ (30,294)   $ 262,035   $ 1,381,940
See accompanying notes to the consolidated financial statements
SUPPORTSAVE SOLUTIONS, INC.
Consolidated Statements of Cash Flows (Unaudited)
For the Six Months Ended November 30, 2009 and 2008
 
 
For the six months ended November 30, 2009 (Unaudited)
(Restated)
 
For the six months ended November 30, 2008 (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
     
Net income for the period
$ 386,894   $ 90,666
Adjustments to reconcile net income to net cash
         
Depreciation
  27,257     26,079
Loss (gain) on sale of assets
  3,152     -0-
Changes in assets and liabilities:
         
Accounts receivable - trade
  (129,407)     (1,177)
Accounts receivable - other
  6,200     -0-
Prepaid expenses
  (2,450)     -0-
Security deposit
  (4,000)     -0-
Membership equity
  -0-     (15,000)
Deferred income tax
  50,000     (143,000)
Accounts payable
  384     23,819
Accrued wages and taxes
  11,453     -0-
Accrued federal income tax
  154,000     -0-
Deferred revenue
  3,092     (14,077)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
  506,575     (32,690)
           
CASH FLOWS FROM INVESTING ACTIVITIES:
         
Purchases of property and equipment
  (99,905)     (280,672)
Proceeds from sale of property and equipment
  15,000     -0-
Change in investment in marketable securities
  78,050     (175,311)
Currency translation adjustment
  (8,336)     (8,387)
NET CASH USED IN INVESTING ACTIVITIES
  (15,191)     (464,370)
           
CASH FLOWS FROM FINANCING ACTIVITIES:
         
Issuance of common stock
  -0-     222,000
Private placement of common stock
  80,000     -0-
Purchase of treasury stock
  (9,017)     -0-
Investment in closely held company
  (16,500)     -0-
Proceeds from office building purchase
  -0-     248,400
Net borrowings on note payable
  28,923     -0-
Proceeds from loan payable to officer
  800     -0-
NET CASH PROVIDED BY FINANCING ACTIVITIES
  84,206     470,400
           
NET INCREASE (DECREASE) IN CASH EQUIVALENTS
  575,590     (26,660)
CASH AND CASH EQUIVALENTS - BEGINNING
  474,626     436,719
CASH AND CASH EQUIVALENTS - ENDING
$ 1,050,216   $ 410,059
           
SUPPLEMENTAL CASH FLOW INFORMATION:
         
Cash paid for interest
$ -   $ -
Cash paid for income taxes
$ -   $ -
See accompanying notes to the consolidated financial statements
SUPPORTSAVE SOLUTIONS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOVEMBER 30, 2009
 
1.  
NATURE OF BUSINESS

SupportSave Solutions, Inc. was incorporated in Nevada on May 2, 2007, and provides offshore business process outsourcing, or BPO, services from an outsourcing center through its wholly-owned subsidiary of the same name, which was incorporated in the Philippines on October 17, 2006 and operates in the Philippines.  Both the parent and its subsidiary are hereinafter referred to as "the Company".

The consolidated financial statements of the Company include the accounts of the parent company and its wholly-owned Philippines subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.

2.  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A.  
Basis of Presentation

Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. We believe that the disclosures are adequate to make the financial information presented not misleading. These condensed financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended May 31, 2009. All adjustments were of a normal recurring nature unless otherwise disclosed. In the opinion of management, all adjustments necessary for a fair statement of the results of operations for the interim period have been included. The results of operations for such interim periods are not necessarily indicative of the results for the full year.

B.  
Cash and Cash Equivalents

SupportSave considers all highly liquid investments with maturities of 3 months or less to be cash equivalents.

C.  
Property and Equipment

Property and equipment are recorded at cost.  Depreciation is provided by straight-line and accelerated methods, over the estimated useful lives of the assets, ranging from 39 years for real estate (building) and 5 to 7 years for furniture and equipment.  Normal expenditures for repairs and maintenance are charged to operations as incurred.

D.  
Deferred Revenue

Deferred revenue represents advances received on services to be rendered for the period subsequent to November 30, 2009.
Continued…

SUPPORTSAVE SOLUTIONS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOVEMBER 30, 2009

 
2.  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A.  
Income Taxes

The Company uses an asset and liability approach to financial accounting and reporting for income taxes.  The difference between the financial statements and tax bases of assets and liabilities is determined annually.  Deferred income tax assets and liabilities are computed for those differences that have future tax consequences using the currently enacted tax laws and rates that apply to the periods in which they are expected to affect taxable income.  Valuation allowances are established, if necessary, to reduce the deferred tax assets to the amount that will more likely than not be realized.  Income tax expense is the current tax payable or refundable for the period, plus or minus the net change in the deferred tax assets and liabilities.

B.  
Foreign Currency Translation

The functional currency of the Company is the United States Dollar.  The financial statements of the Company’s Philippine operations are translated to U.S. dollars using the period exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses.  Capital accounts are translated at their historical exchange rates when the capital transaction occurs.  Net gains and losses resulting from foreign exchange translations are included in the Statement of operations and changes in stockholders’ equity as other comprehensive income (loss).

C.  
Currency Hedging Contract Transactions

The Company's operating expenses consist primarily of salaries, payroll taxes and employee benefit costs paid to the professionals that the Company employs in the Philippines.  Since employee related costs are paid in the local currency, the Company is exposed to the risk of foreign currency fluctuations.  In an effort to try to minimize the downside risk of fluctuating currency rates, the Company has entered into foreign exchange forward contracts.  Any gains or losses from the settled and outstanding forward contracts are recorded as other income/expense in the Statement of operations.

D.  
Impairment of Long-Lived Assets

The Company reviews its major assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  If an asset is considered impaired, then impairment will be recognized in an amount determined by the excess of the carrying amount of the asset over its fair value.
Continued…


SUPPORTSAVE SOLUTIONS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOVEMBER 30, 2009

 
2.  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A.  
Financial Instruments

The carrying amounts of financial instruments are considered by management to be their estimated fair values due to their short-term maturities.  Securities that are publicly traded are valued at their fair market value based as of the balance sheet date presented.

B.  
Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures.  Accordingly, actual results could differ from those estimates.

C.  
Advertising Costs

The Company follows the policy of expensing advertising costs as they are incurred.

D.  
Treasury Stock

Treasury stock purchases are accounted for under the cost method whereby the entire cost of the acquired stock in recorded as treasury stock.  Gains and losses on the subsequent reissuance of shares are credited or charged to capital in excess of par value using the average-cost method.

E.  
Basic Loss per Share

Basic loss per share has been calculated based on the weighted average number of shares of common stock outstanding during the period.

F.  
Recent Accounting Pronouncements

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

SUPPORTSAVE SOLUTIONS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOVEMBER 30, 2009
2.  
COMMON STOCK

The Company issued shares at various times to employees and vendors for services rendered.  During the years ended May 31, 2009 and 2008, -0- and 345,350 shares were issued to employees and 600,000 and 401,997 shares were issued to vendors for services rendered.  Accordingly, the net increase to the Company’s paid-in-capital was $220,000 and $559,728.  All shares issued to both employees and vendors are restricted shares per Rule 144 or Regulation S.  Included in operating expenses for these issuances are salaries of $-0- and $251,852 and $220,000 and $307,878 to vendors.  No new shares were issued for the six months ended November 30, 2009.

The Company purchased back 266,769 shares of treasury stock for a total cost of $64,207 during the year ended May 31, 2009.  The Company purchased an additional 20,500 shares for a total cost of $9,017 during the six months ended November 30, 2009.  On August 21, 2009, the Company sold 275,387 shares of this treasury stock for $80,000 through a subscription agreement in a private placement.  The proceeds and cost of these shares have been accounted for in additional paid in capital.  The remaining 11,882 shares continue to be held as treasury stock, as a reduction to shareholders’ equity.

3.  
MARKETABLE SECURITIES

Marketable securities are shown on the balance sheet.  The first-in, first-out (FIFO) method is used to determine the cost of each security at the time of sale.

Cost and market value of marketable equity securities at November 30, 2009 are as follows:
 
       Gross
    Unrealized                                 Market
      Cost                               Gains/(Losses)                                   Value     

November 30, 2009:
  Equities/options                                            $       20,013                           $          (19,478)                              $            535

5.  
NOTES RECEIVABLE - BUILDING

On May 11, 2009, the Company sold its office building for $260,000 on a note receivable.  The Company received $50,000 down and the remainder is payable in 23 month interest only installments of $1,225 beginning June 11, 2009, with a balloon payment of the remaining principal and all accrued interest due May 11, 2011.  The note will bear interest at 7% per annum is secured by the real property.

SUPPORTSAVE SOLUTIONS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOVEMBER 30, 2009

6.  
OPERATING LEASE

The Company operates out of a leased facility in Cebu, Philippines.  The lease began on December 1, 2007, and is for 5 years at the rate of approximately $3,500 per month.  Additional space has recently been added at an additional $1,720 per month.  The Company also leased an office in Boca Raton, Florida for $850 per month, plus tax.  The lease expired on October 31, 2009 and the Company closed its Boca Raton office.  The Company leased an office in Los Angeles, California for its administrative headquarters, but abandoned it as of August 31, 2009 for a similar one in the same building.  The lease is on a month-to-month basis for $4,000 per month.

Minimum annual rents for all leases for the next five years are as follows:

Period Ending
 November 30,                                         Amount 

 2010                                                $ 110,640
 2011                                                   110,640
 2012                                                   110,640
 2013                                                     48,000
 2014                                                     48,000
 
$ 427,920

7.  
LONG-TERM LIABILITIES

The following schedule sets forth information on long-term liabilities at November 30, 2009:

Description                                                               2009    

Note payable bearing interest
  of 7.25% per annum, monthly
  payments of $584 (including
  interest) collateralized by an
  automobile                                                                        $   28,923

Continued…

SUPPORTSAVE SOLUTIONS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOVEMBER 30, 2009

7.  
LONG-TERM LIABILITIES (CONTINUED)

Maturity requirements on long-term liabilities are as follows:

Year Ending
     May 31,                                                          Amount 

2010                                                $    2,495
2011                                                      5,268
2012                                                      5,662
2013                                                      6,087
2014                                                      6,543
Thereafter                                            2,868

$  28,923

8.  
CONCENTRATION OF CREDIT RISK

The Company maintains cash balances at three financial institutions.  At November 30, 2009, the Company’s cash and cash equivalents exceeded federally insured limits by $739,657.  Of the total cash and cash equivalents, $8,594 is invested in a broker/dealer money market account.

9.  
INCOME TAXES

The provision for Federal income taxes consists of the following at November 30:

    2009                                  2008    

Current expense                                                                $  204,000                              $   39,600
Deferred (benefit) expense                                                                  (50,000)                                 (89,600)
 
$  154,000                              $  (50,000)

The cumulative tax effect at the expected rate of 35% of significant items comprising our net deferred tax amount is as follows at November 30:

    2009                                  2008    

Deferred tax asset attributable to:
Net operation loss carryover                                         $        -0-                               $   89,600
Less: valuation allowance                                                        -0-                                  (89,600)

Net deferred tax asset                                                         $        -0-                                $         -0- 

At May 31, 2009, the Company has an unused net operating loss carryover approximating $175,000 that is available to offset future taxable income; it expires beginning in 2027.
SUPPORTSAVE SOLUTIONS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOVEMBER 30, 2009

10.  
SUBSEQUENT EVENTS

Management has evaluated subsequent events through the date of which the financial statements were submitted to the Securities and Exchange Commission and has determined it does not have any material subsequent events to disclose.
 

 
Item 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations

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.

Overview

We provide offshore business process outsourcing, or BPO, services which we deliver primarily to U.S.-based clients from our facilities in the Philippines. BPO services involves contracting with an external organization to take primary responsibility for providing a business process or function, such as customer management, transcription and captioning, processing services, human resources, procurement, logistics support, finance and accounting, engineering, facilities management, information technology and training. These customer care services and solutions are provided by our skilled customer service representatives to small and mid-sized companies in the healthcare, communication, business services, financial services, publishing, and travel and entertainment industries.

Research and Development

We will not be conducting any product research or development during the next 12 months.

 
 
 
Results of Operations for the three and six months ended November 30, 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 three months ended November 30, 2009 was $851,056, compared with $411,854 for the three months ended November 30, 2008.  Our revenue reported for the six months ended November 30, 2009 was $1,447,860, compared with $866,314 for the six months ended November 30, 2008.

Our revenue generated for all periods was attributable to the sale of our BPO services. The increase in revenues for the three and six months ended November 30, 2009 from the same periods in 2008 is attributable to an increase in the sale of our BPO services as a result of expanding our facilities and operations.
 
During the quarter, management sold an internet-based business venture to a third-party.  The proceeds from this one-time sale increased quarterly revenues by approximately $142,000 and the operation of this venture during the quarter increased quarterly revenue by approximately $65,000.

Returns and allowances are refunds for services not provided.  Returns and allowances for the three months ended November 30, 2009 amounted to $3,091, compared with $18,206 for the same period ended November 30, 2008.  Returns and allowances for the six months ended November 30, 2009 amounted to $8,202, compared with $34,768 for the same period ended November 30, 2008.

Our revenue less returns and allowances is our total revenue.  Total revenue for the three months ended November 30, 2009 was $847,965, compared with $393,648 for the same period ended November 30, 2008.  Total revenue for the six months ended November 30, 2009 was $1,439,658, compared with $831,546 for the same period ended November 30, 2008.

Our operating expenses for the three months ended November 30, 2009 was $457,926, compared with $539,426 for the same period ended November 30, 2008.  The decrease in our operating expenses for the three months ended November 30, 2009 compared with November 30, 2008 is mainly attributable to decreased payment for consulting charges, licenses and fees, offset by increased commissions, advertising, computer services, and salaries.

Our operating expenses for the six months ended November 30, 2009 was $903,986, compared with $848,166 for the same period ended November 30, 2008.  The increase in our operating expenses for the six months ended November 30, 2009 compared with November 30, 2008 is mainly attributable to increased payment for advertising, commissions, computer services, rent, and salaries, offset by decreased payment for consulting charges, bank charges, legal and accounting fees, and outside services.

We had other income of $9,385 for the three months ended November 30, 2009, compared with other income of $159,359 for the three months ended November 30, 2008. The large decrease in other income is attributable mainly to no federal income tax benefits for the three months ended November 30, 2009, compared with $143,000 in federal income tax benefits for the three months ended November 30, 2008.

We had other income of $55,222 for the six months ended November 30, 2009, compared with other income of $107,286 for the six months ended November 30, 2008. The large decrease in other income is attributable mainly to no federal income tax benefits for the six months ended November 30, 2009, compared with $143,000 in federal income tax benefits for the six months ended November 30, 2008.  This was offset by gains in currency hedging transactions of $26,881 for the six months ended November 30, 2009, compared with losses in currency hedging transactions of $60,522 for the six months ended November 30, 2008.

We had net income of $259,424 for the three months ended November 30, 2009, compared with net income of $13,581 for the three months ended November 30, 2008.

We had net income of $386,894 for the six months ended November 30, 2009, compared with net income of $90,666 for the six months ended November 30, 2008.

 
 
 
Liquidity and Capital Resources

As at November 30, 2009, we had $1,217,807 in current assets and $235,049 in current liabilities. On November 30, 2009, we had working capital of $1,640,831.

Operating activities provided $506,575 in cash for the six months ended November 30, 2009. Our net income of $386,894, along with depreciation of $27,257, deferred income tax of $50,000 and accrued income tax of $154,000 were the primary components of our positive operating cash flow, offset mainly by accounts receivable of $129,407. Cash flows used by investing activities during the six months ended November 30, 2009 was $15,191 mainly as a result $99,905 used to purchase property and equipment, offset by $78,050 in changes in investment in marketable securities. Cash flows provided by financing activities during the six months ended November 30, 2009 was $84,206, largely as a result of $80,000 from the sale of our common 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.

Off Balance Sheet Arrangements

As of November 30, 2009, there were no off balance sheet arrangements.

Item 3.     Quantitative and Qualitative Disclosures About Market Risk

A smaller reporting company is not required to provide the information required by this Item.

Item 4T.     Controls and Procedures

We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of November 30, 2009.  This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer, Christopher Johns, and our Chief Financial Officer, Michael C. Palasick.  Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of November 30, 2009, our disclosure controls and procedures are effective.  There have been no changes in our internal controls over financial reporting during the quarter ended November 30, 2009.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act are recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Limitations on the Effectiveness of Internal Controls

Our management does not expect that our disclosure controls and procedures or our internal control over financial reporting will necessarily prevent all fraud and material error. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving our objectives and our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective at that reasonable assurance level.  Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the internal control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.
 

 

PART II – OTHER INFORMATION

Item 1.     Legal Proceedings

We are not a party to any pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.

Item 1A:  Risk Factors

A smaller reporting company is not required to provide the information required by this Item.

Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds

None

Item 3.     Defaults upon Senior Securities

None

Item 4.     Submission of Matters to a Vote of Security Holders

No matters have been submitted to our security holders for a vote, through the solicitation of proxies or otherwise, during the quarterly period ended November 30, 2009.

Item 5.     Other Information

None

Item 6.      Exhibits



SIGNATURES

In accordance with the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
SupportSave Solutions, Inc.
   
Date:
April 22, 2010
   
 
By:     /s/Christopher Johns                                                                   
             Christopher Johns
Title:    Chief Executive Officer and Director
 

SupportSave Solutions Inc Reports