For the nine month period ended September 30, 2023, our adjusted EBITDA was a profit of $1,727,000. This compares to an adjusted EBITDA profit of $2,202,000 in the first nine months of 2022. Now turning to the balance sheet. Our balance sheet position remains healthy. The timing of events around the reseller transactions definitely has a material impact on our balance sheet. And the changes in our cash balance and the increases in our accounts receivable, inventories, accounts payable and deferred revenue since the prior year are all primarily due to the timing of cash receipts and payments related to reseller transactions. The volume of reseller activities was higher at the end of the third quarter of 2023 compared to both the third quarter of 2022 and the end of fiscal ’22.
At the end of this most recent quarter, we were able to be paid by our customers for a number of large procurement projects, but we had yet to recognize revenue or to pay our vendors for these same projects. This resulted in an increase of approximately $11 million in our deferred revenue and approximately $10 million in our outstanding payables at September 30, 2023, compared to September 30, 2022. And compared to our financial year-end ’22 balances, our deferred revenues have increased by $11 million, and our receivables have increased by $4 million because of the higher level of reseller activities, helped driving the $8.3 million increase in cash during 2023. As we ship these projects and recognize revenue during our fourth quarter, you should anticipate a large decrease in our payables, deferred revenue and our cash on hand at the end of 2023 compared to the balances at the end of September.
With that, I will now hand the call over to Darryll for some additional comments on the business and how we see it evolving in 2024. Thanks, Darryll.
Darryll Dewan: Thank you, John. During the previous earnings call, I shared an update on our company’s strategic focus and progress. I want to ensure that I continue to remind everyone of our key areas of focus and provide updates on our progress. Our goals are to improve our systems integration processes and business model, pursue and place talent to prepare for and accelerate our growth and develop a strategy to capitalize on emerging trends in the markets. I’m happy to report that we’ve continued to make solid progress in each of these areas. We have modernized our integration facility here in Round Rock, Texas. We can now service 4 times to 5 times the level of rack integration business at less cost than before with fewer and more skilled TSS personnel.
We’re working closely with our OEM partners to share our insight into the complicated requirements of these solutions, including form factors, cooling and deployment, which results in our ability to rapidly embrace emergency technologies such as AI and direct liquid cooling. We have been focused on building a high-caliber leadership team that can drive our existing business while exploring new opportunities. We’ve made substantial progress on this front with several key hires. With this team in place, we’re confident in our organization’s ability to realize our goals and take on new challenges. The progress of our organization is inextricably linked to our ability to attract and retain top-tier talent. Today, what excites me and the team at TSS is that our services and solutions provide IT users with a level of customization that is unparalleled in the industry.
Our core value prop includes flexible, agile, high-quality IT systems integration and deployment services. This value proposition has been recognized as key to our OEM partners and end customers. As IT and data center infrastructure rapidly evolve based on the development such as AI and machine learning, our OEM partners’ offerings and strategies to deliver new offerings must adjust and ramp quickly. As a result, and as an example, the density of compute solutions to deliver AI is rising very quickly, driving advancements in direct liquid cooling, and this is all happening as data centers are moving to be as green as possible. The end customer of our OEM partners are increasingly asking how they can get compute solutions as quickly as possible.
Hopefully, this example explains why our OEM partners not only open to our participation within customer discussions. They are seeking it. On November 14, 2022, almost a year ago, I embarked on my journey with TSS, and it has been an exhilarating one. I vividly recall my first earnings call where I admitted to being unfamiliar with the building, but that was then. Today, I stand confident in my knowledge and experience, and I’m optimistic about our future path as a business. I’m immensely grateful to our investors who have stood by us along the way and every step of the way, and to the entire TSS team whose unwavering dedication has enabled us to deliver exceptional value to the marketplace. Our future is bright with endless growth opportunities, and I’m excited to be on the team and leading the way.
