SupportSave Solutions (SSVE) 10-Q 2010 Q3 Quarterly report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

[X]	Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended February 28, 2010
[  ]	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: 14,130,198 common shares as of April 12, 2010.

	TABLE OF CONTENTS	Page
PART I – FINANCIAL INFORMATION
Item 1:	Financial Statements	3
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	8
Item 4T:	Controls and Procedures	8
PART II – OTHER INFORMATION
Item 1:	Legal Proceedings	9
Item 1A:	Risk Factors	9
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	9
Item 3:	Defaults Upon Senior Securities	9
Item 4:	Submission of Matters to a Vote of Security Holders	9
Item 5:	Other Information	9
Item 6:	Exhibits	9

2

PART I - FINANCIAL INFORMATION

Item 1.     Financial Statements

Our consolidated financial statements included in this Form 10-Q are as follows:
F-1	Consolidated Balance Sheets as of February 28, 2010 (unaudited) and May 31, 2009 (audited);
F-2	Consolidated Statements of Operations for the three months ended February 28, 2010 and November 30, 2008 (unaudited);
F-3	Consolidated Statements of Operations for the nine months ended February 28, 2010 and February 28, 2009 (unaudited);
F-4	Consolidated Statement of Changes in Stockholders’ Equity as of February 28, 2010 and year ended May 31, 2009 (unaudited);
F-5	Consolidated Statements of Cash Flows for the nine months ended February 28, 2010 and February 28, 2009 (unaudited);
F-6	Notes to Consolidated 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 February 28, 2010 are not necessarily indicative of the results that can be expected for the full year.

3

SUPPORTSAVE SOLUTIONS, INC.

(A NEVADA CORPORATION)

CONSOLIDATED BALANCE SHEETS

FEBRUARY 28, 2010 (UNAUDITED) AND MAY 31, 2009 (AUDITED)

ASSETS
	February 28, 2010 (unaudited)		May 31, 2009 (audited)
CURRENT ASSETS
Cash and cash equivalents	$	1,660,544	$	474,626
Investment in marketable securities		20,013		98,063
Accounts receivable - trade		161,065		14,931
Accounts receivable - other		-0-		6,200
Prepaid expenses		2,015		790
TOTAL CURRENT ASSETS		1,843,637		594,610
PROPERTY AND EQUIPMENT
Furniture and equipment		287,387		205,535
Less accumulated depreciation		(111,063)		(74,989)
NET PROPERTY AND EQUIPMENT		176,324		130,546
OTHER ASSETS
Security deposits		14,960		7,482
Note receivable - Florida office building		210,000		210,000
Investment in closely held companies		66,500		-0-
Deferred income tax		-0-		50,000
TOTAL OTHER ASSETS		291,460		267,482
	$	2,311,421	$	992,638

LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
CURRENT LIABILITIES
Accounts payable - trade	$	17,961	$	31,960
Payroll tax withholdings		6,345		-0-
Accrued wages		40,331		25,560
Deferred revenue		4,273		2,719
Accrued income taxes		210,000		-0-
Current portion of long-term debt		5,081		-0-
Loan payable - officer		800		-0-
TOTAL CURRENT LIABILITIES		284,791		60,239
LONG TERM LIABILITIES
Note payable		28,923		-0-
Less: current portion		(5,081)		-0-
TOTAL LONG TERM LIABILITIES		23,842		-0-
TOTAL LIABILITIES		308,633		60,239
STOCKHOLDERS' EQUITY
Common stock, $.00001 par value, 100,000,000 shares authorized, 14,130,198 shares issued and outstanding		141		132
Additional paid-in-capital		1,678,087		1,143,291
Treasury stock		(3,029)		(64,207)
Cumulative translation adjustment		(38,940)		(21,958)
Retained earnings (deficit)		366,529		(124,859)
STOCKHOLDERS' EQUITY		2,002,788		932,399
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	2,311,421	$	992,638

F-1

SUPPORTSAVE SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED FEBRUARY 28, 2010 AND 2009 (UNAUDITED)

	2010		2009
REVENUE
Sales	$	732,906	$	491,692
Less returns and allowances		(19,942)		(6,637)
TOTAL NET REVENUE		712,964		485,055
EXPENSES
Operating expenses		569,669		371,861
OPERATING INCOME		143,295		113,194
OTHER INCOME (EXPENSE)
Interest income		4,087		837
Other income		110		310
Gains/(losses) from currency hedging contracts		13,002		(45,859)
TOTAL OTHER INCOME (EXPENSE)		17,199		(44,712)
NET INCOME BEFORE PROVISION FOR FEDERAL INCOME TAX BENEFIT		160,494		68,482
PROVISION FOR FEDERAL INCOME TAX (BENEFIT)		(56,000)		(24,000)
NET INCOME	$	104,494	$	44,482

F-2

SUPPORTSAVE SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED FEBRUARY 28, 2010 AND 2009
(UNAUDITED)

	2010		2009
REVENUE
Sales	$	2,180,766	$	1,358,006
Less returns and allowances		(28,144)		(41,405)
TOTAL NET REVENUE		2,152,622		1,316,601
EXPENSES
Operating expenses		1,473,655		1,220,027
OPERATING INCOME		678,967		96,574
OTHER INCOME (EXPENSE)
Interest income		11,060		4,863
Other income		235		4,906
Gains on sales of investments		24,395		15,699
Gains/(losses) from currency hedging contracts		39,883		(106,381)
Gains/(losses) on sales of assets		(3,152)		-0-
Federal income tax benefit		-0-		95,000
TOTAL OTHER INCOME		72,421		14,087
NET INCOME BEFORE PROVISION FOR FEDERAL INCOME TAX BENEFIT		751,388		110,661
PROVISION FOR FEDERAL INCOME TAX (BENEFIT)		(260,000)		-0-
NET INCOME	$	491,388	$	110,661

F-3

SUPPORTSAVE SOLUTIONS, INC.

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE NINE MONTHS ENDED FEBRUARY 28, 2010 AND YEAR ENDED MAY 31, 2009
(UNAUDITED)

	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		875,000		9		534,796		70,195		-0-		-0-		605,000
Net income and translation adjustment		-0-		-0-		-0-		-0-		(16,982)		491,388		474,406
Balance, February 28, 2010		14,130,198	$	141	$	1,678,087	$	(3,029)	$	(38,940)	$	366,529	$	2,002,788

F-4

SUPPORTSAVE SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED FEBRUARY 28, 2010 AND 2009
(UNAUDITED)

	2010		2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	491,388	$	110,661
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		41,434		42,564
Stock based compensation expense		-0-		222,000
Loss on sale of assets		3,152		-0-
Changes in:
Accounts receivable - trade		(146,134)		(271)
Accounts receivable - other		6,200		-0-
Prepaid expenses		(1,225)		-0-
Security deposit		(7,478)		(6,200)
Deferred income tax		50,000		(95,000)
Accounts payable		(13,999)		32,463
Accrued wages		14,771		-0-
Accrued federal income tax		210,000		-0-
Deferred revenue		1,554		(14,835)
Payroll tax withholdings payable		6,345		-0-
NET CASH PROVIDED BY OPERATING ACTIVITIES		656,008		291,382
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(105,364)		(313,827)
Sale of property and equipment		15,000		-0-
Change in investment in marketable securities		78,050		(135,675)
Currency translation adjustment		(16,982)		(11,354)
NET CASH (USED BY) INVESTING ACTIVITIES		(29,296)		(460,856)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock		525,000		-0-
Private placement of common stock		80,000		-0-
Payments on loan payable		-0-		(248,400)
Purchase and sale of treasury stock		(9,017)		-0-
Investment in closely held companies		(66,500)		(15,000)
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 (USED BY) FINANCING ACTIVITIES		559,206		(15,000)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		1,185,918		(184,474)
CASH AND CASH EQUIVALENTS - beginning		474,626		436,719
CASH AND CASH EQUIVALENTS - ending	$	1,660,544	$	252,245

F-5

SUPPORTSAVE SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FEBRUARY 28, 2010

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 February 28, 2010.

F-6

SUPPORTSAVE SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FEBRUARY 28, 2010

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

E.   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.

F.   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).

G.   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.

H.   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.

F-7

SUPPORTSAVE SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FEBRUARY 28, 2010

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

I.   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.

J.   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.

K.   Advertising Costs

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

L.   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.

M.   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.

N.   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.

F-8

SUPPORTSAVE SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FEBRUARY 28, 2010

3.   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.   On January 1, 2010, the Company sold 875,000 shares of its common stock in a private offering at $0.60 per share.  The private offering was exempt under Section 4(2) of the Securities Act of 1933, as amended (the “Act”), and/or Rule 506 promulgated under the Act.   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.

4.   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 February 28, 2010 are as follows:

	Cost		Gross Unrealized Gains/(Losses)		Market Value
February 28, 2010:  Equities/options	$	20,013	$	(18,688)	$	1,325

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.

F-9

SUPPORTSAVE SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FEBRUARY 28, 2010

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 February 28,	Amount
2010	$	110,640
2011		110,640
2012		94,980
2013		48,000
2014		48,000
	$	412,260

7.   LONG-TERM LIABILITIES   The following schedule sets forth information on long-term liabilities at February 28, 2010:

Description	2010
Note payable bearing interest of 7.25% per annum, monthly payments of $584 (including interest) collateralized by an automobile	$	28,923

F-10

SUPPORTSAVE SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FEBRUARY 28, 2010

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 February 28, 2010, the Company’s cash and cash equivalents exceeded federally insured limits by $1,233,124.  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 February 28:

	2010		2009
Current expense	$	260,000	$	119,000
Deferred (benefit) expense		(50,000)		(119,000)
	$	210,000	$	-0-

The cumulative tax effect at the expected rate of 35% of significant items comprising our net deferred tax amount is as follows at February 28:

	2010		2009
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.

F-11

SUPPORTSAVE SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FEBRUARY 28, 2010

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.

F-12

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 continu e,” “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.

We brought on two additional sales people during the quarter.   We also continued to work on the lease and build-out of a larger, more modern production facility in Cebu.   

Research and Development

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

4

Results of Operations for the three and nine months ended February 28, 2010

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 February 28, 2010 was $606,554, compared with $491,692 for the three months ended February 28, 2009.  Our revenue reported for the nine months ended February 28, 2010 was $2,180,766, compared with $1,358,006 for the nine months ended February 28, 2009.

Our revenue generated for all periods was attributable to the sale of our BPO services. The increase in revenues for the three and nine months ended February 28, 2010 from the same periods in 2009 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 three months ended February 28, 2010 amounted to $19,942, compared with $6,637 for the same period ended February 28, 2009.  Returns and allowances for the nine months ended February 28, 2010 amounted to $28,144, compared with $41,405 for the same period ended February 28, 2009.

Our revenue less returns and allowances is our total revenue.  Total revenue for the three months ended February 28, 2010 was $606,554, compared with $485,055 for the same period ended February 28, 2009.  Total revenue for the nine months ended February 28, 2010 was $2,152,622, compared with $1,316,601 for the same period ended February 28, 2009.

Our operating expenses for the three months ended February 28, 2010 was $569,669, compared with $371,861 for the same period ended February 28, 2009.  The increase in our operating expenses for the three months ended February 28, 2010 compared with February 28, 2009 is displayed in the following table showing expenses for both periods:

	2010		2009
Advertising	$	22,303	$	11,046
Bank charges		2,444		4,096
Commissions		67,653		18,714
Computer services		1,841		24,605
Consulting		8,949		250
Contributions		334		850
Depreciation		14,177		16,485
Dues and subscriptions		-0-		10,810
Employee benefits		19,055		23,427
Entertainment		4,120		2,808
Freight		978		429
Insurance		340		194
Interest		-0-		23
Internet		8,059		10,195
Legal and accounting		19,152		5,869
Licenses and fees		14		168
Miscellaneous		2,747		7
Office expense		1,901		501
Outside services		1,528		1,807
Public and investor relations		-0-		550
Rent		27,867		13,655
Repairs and maintenance		2,259		3,471
Salaries		338,460		187,303
Supplies		1,193		2,060
Taxes - other		291		2,064
Telephone		12,565		17,746
Travel		2,159		4,001
Utilities		9,280		8,727
TOTAL OPERATING EXPENSES	$	569,669	$	371,861

5

Our operating expenses for the nine months ended February 28, 2010 was $1,473,655, compared with $1,220,027 for the same period ended February 28, 2009.  The increase in our operating expenses for the three months ended February 28, 2010 compared with February 28, 2009 is displayed in the following table showing expenses for both periods:

	2010		2009
Advertising	$	87,609	$	32,760
Bank charges		13,415		20,038
Commissions		187,198		46,857
Computer services		51,533		27,262
Consulting		19,454		222,250
Contributions		497		894
Depreciation		41,434		42,564
Dues and subscriptions		-0-		10,810
Employee benefits		28,034		39,661
Entertainment		8,153		4,971
Freight		2,066		956
Insurance		1,459		194
Interest		249		55
Internet		25,386		30,519
Legal and accounting		30,007		34,492
Licenses and fees		145		20,498
Miscellaneous		9,872		114
Office expense		7,587		3,128
Outside services		4,332		7,197
Printing		-0-		42
Public and investor relations		-0-		550
Rent		75,328		46,414
Repairs and maintenance		5,382		4,432
Salaries		788,599		517,438
Supplies		2,733		5,507
Taxes - other		1,939		2,494
Telephone		46,530		54,142
Travel		11,487		18,300
Utilities		23,227		25,488
TOTAL OPERATING EXPENSES	$	1,473,655	$	1,220,027

6

We had other income of $17,199 for the three months ended February 28, 2010, compared with other expenses of $44,712 for the three months ended February 28, 2009. The difference is explained mainly by a gain from currency hedging contracts of $13,002 for the three months ended February  28, 2010, compared with a loss from currency hedging contracts of $45,859 for the same period ended February 28, 2009.

We had other income of $72,421 for the nine months ended February 28, 2010, compared with other income of $14,087 for the nine months ended February 28, 2009. The large increase in other income is attributable mainly to a gain from currency hedging contracts of $39,883 for the nine months ended February  28, 2010, compared with a loss from currency hedging contracts of $106,381 for the same period ended February 28, 2009.    This was offset by no federal income tax benefits for the nine months ended February 28, 2010, compared with $95,000 in federal income tax benefits for the nine months ended February 28, 2009.

We had net income of $35,084 for the three months ended February 28, 2010, compared with net income of $44,482 for the three months ended February 28, 2009.

We had net income of $491,388 for the nine months ended February 28, 2010, compared with net income of $110,661 for the nine months ended February 28, 2009.

Liquidity and Capital Resources

As at February 28, 2010, we had $1,843,637 in current assets and $284,791 in current liabilities. On February 28, 2010, we had working capital of $1,558,846.

Operating activities provided $656,008 in cash for the nine months ended February 28, 2010. Our net income of $491,388, along with depreciation of $41,434, deferred income tax of $50,000 and accrued income tax of $210,000 were the primary components of our positive operating cash flow, offset mainly by accounts receivable of $146,134. Cash flows used by investing activities during the nine months ended February 28, 2010 was $29,296 mainly as a result $105,364 from the purchase of property and equipment, offset by $78,050 in changes in investment in marketable securities. Cash flows provided by financing activities during the nine months ended February 28, 2010 was $559,206, largely as a result of $534,796 from the sale of our common stock and $28,923 from borrowings on a note payable, offset by $66,500 made in investments of closely held companies.

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 February 28, 2010, there were no off balance sheet arrangements.

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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 February 28, 2010.  This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, Christopher Johns.  Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of February 28, 2010, our disclosure controls and procedures are effective.  There have been no changes in our internal controls over financial reporting during the quarter ended February 28, 2010.

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.

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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

During the reporting period, we issued 875,000 shares of our common stock for proceeds of $525,000.  This issuance was exempt under Section 4(2) of the Securities Act of 1933, as amended, and Rule 506 promulgated thereunder.

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 February 28, 2010.

Item 5.     Other Information

None

Item 6.      Exhibits

Exhibit Number	Description of Exhibit
31.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

9

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 19, 2010
	By:       /s/ Christopher Johns                                                                               Christopher Johns Title:    Chief Executive Officer and Director