Tech-driven healthcare and software company Icoreconnect Inc. (ticker: ICCT) has experienced significant growth in recent years as a result of its strategic business expansion. With cumulative federal net operating loss carryforwards (NOLs) of approximately $18,645,000 available to be carried forward indefinitely, and federal NOLs of approximately $51,128,000 that can be carried forward until December 31, 2037, the company is well-positioned to realize significant tax benefits and invest further in its growth opportunities within the healthcare and SaaS markets.
Icoreconnect’s state net operating loss carryforward amounts to approximately $5,900,000, which will only begin to expire in 2031 if not utilized before then. By tapping into these NOL carryforwards, the company is able to take advantage of tax savings that can be redirected towards further business expansion efforts. It’s worth noting that the Internal Revenue Service (IRS) and relevant state taxing authorities may scrutinize the utilization of NOL carryforwards based on company operations.
Despite facing credit risk through cash placements in high-credit-quality financial institutions exceeding the Federal Deposit Insurance Corporation (FDIC) coverage limit of $250,000 per depositor, Icoreconnect has not experienced any losses due to uncovered deposits. This confidence in the company’s financial stability extends to its management of receivable credit risk exposure, which it believes to be limited due to its routine assessment of customer financial strength.
Icoreconnect displayed impressive balance and growth in the past years, achieving a decrease in accounts receivable ending balance by (34%) in 2022 when compared to 2021 ending balances, despite a sales growth of over 61% for 2022. Also, the company has no major customer concentration (greater than 10% of total revenue) in its 2022 and 2021 revenue, demonstrating a diversified revenue stream and reduced reliance on a single customer.
With a commitment to expanding its footprint in the healthcare and software as a service (SaaS) markets, Icoreconnect has also made significant investments in its infrastructure. In 2021, the company signed a six-year lease agreement for a 7,650 square feet office space in Ocoee, Florida, to serve as its new headquarters. Other office space leases were signed in Concord, North Carolina, and Scottsdale, Arizona, to support the company’s operations. The undiscounted future lease obligations for these office spaces totaled $1,309,474 as of December 31, 2022.
The management’s dedication to driving growth while maintaining financial stability is further demonstrated through the signing of employment agreements with several key executive officers. These agreements not only help to retain top talent within the organization but also allow for strategic decision-making and the pursuit of ambitious growth objectives.
As Icoreconnect continues to leverage its net operating loss carryforwards and effectively navigate credit risks, the company is well-prepared to seize growth opportunities within the healthcare and SaaS markets. By maintaining a strong financial foundation and making strategic investments in top talent and infrastructure, Icoreconnect is forging a promising path forward, poised to make significant strides in these rapidly evolving industries.
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