"May was the first profitable month of the year — and the trend is pointing in the right direction."
Three Key Insights
🟢 First Profit of the Year
May came in at +$1,273 net income — the first positive month after four months of losses totaling -$5,085. Revenue held at $5,019 (above the 4-month average of $4,554) while expenses dropped to $2,384, the leanest month yet. If the business maintains $5k+ revenue with controlled costs, profitability becomes the new baseline.
→ Keep expense discipline through Q3 — this is the template that works.
⚑ April Revenue Dip Needs an Explanation
Revenue dropped to $3,362 in April — 26% below the 4-month average of $4,554. May bounced back fully, but one soft month can mask a pattern. Whether it was a slow billing cycle, a paused client, or seasonality, knowing the cause helps prevent a repeat.
→ Review April invoicing — was any revenue delayed, or did a client pause? One conversation now protects Q3.
📌 Business Is Running on Owner Capital — That Changes Soon
Ben contributed $4,700 in February and Edgar added $4,679 in March — $9,379 total injected to keep the business funded through the loss months. May's profit is the first sign the business can stand on its own. The goal now is staying profitable long enough that no further injections are needed.
→ Track net income monthly against the $9,379 invested — when cumulative profit crosses that threshold, the business has paid itself back.
Statement of Activity — Feb through May 2026
Line Item
Feb 2026
Mar 2026
Apr 2026
May 2026
4-Mo Avg
Revenue
$4,838
$4,998
$3,362
$5,019
$4,554
Cloud Infrastructure
$937
$823
$983
$1,001
$936
Weather API Software
$361
$324
$368
$361
$354
Total COGS
$1,298
$1,146
$1,351
$1,362
$1,289
Gross Profit
$3,540
$3,851
$2,011
$3,657
$3,265
Gross Margin %
73.2%
77.1%
59.8%
72.9%
71.7%
Software & Subscriptions
$705
$848
$745
$1,486
$946
Professional Fees
$1,360
$1,453
$592
$592
$999
Payroll
$5,035
$2,048
$0
$0
$1,771
Banking Fees
$192
$211
$140
$200
$186
Marketing
$42
$106
$106
$106
$90
Taxes
$0
$0
$463
$0
$116
Total Expenses
$7,333
$4,665
$2,047
$2,384
$4,107
Net Income
-$3,793
-$814
-$36
+$1,273
-$843
Cash Flow — May 2026
What This Means
RevenueStrong month at $5,019 — above the 4-month average of $4,554
COGSCloud and API costs are largely fixed at ~$1,362 — predictable and manageable
Operating ExpensesLeanest month of the year at $2,384 — no payroll, normalized professional fees
Ending Cash$9,675 — highest cash balance of 2026, +$1,273 added this month
Key Accounts Snapshot
Cash in Bank
$9,675
↑ +$1,273 from April
Wages Payable
$3,000
⚑ Frozen 5 months — needs review
Total Equity
$6,675
↑ +$1,273 from April
Long-Term Debt
$0
✅ Debt-free
Financial Health Ratios
Current Ratio
3.23
Assets cover liabilities 3x. Healthy threshold is 1.5.
Gross Margin
72.9%
Strong margin on software revenue. COGS are well-controlled.
Net Margin
25.4%
First profitable month. $1 of every $4 in revenue stayed as income.
Profit Quality
1.00
Cash earned matches income exactly. Healthy 0.8–1.2 range.
📅 Before Next Month
The Event
April revenue came in at $3,362 — well below the typical $4,800–$5,000 range. June is a good time to confirm the pipeline looks healthy and no clients are at risk of churning.
Estimated Impact
A slow month like April — down 26% from the norm — can push the business back into a loss. Protecting the client base is the most important lever right now.
One Action Item
Before June 30: do a quick check-in with active clients — confirm they're happy and flag any accounts that haven't engaged recently.
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This report is prepared by Prosynergy Bookkeeping for internal client use only.
Figures sourced from QuickBooks (accrual basis). Not a substitute for professional tax or financial advice.
