One Stop Systems, Inc. (Nasdaq: OSS), a leader in AI Transportable
solutions on the edge, reported results for the second quarter
ended June 30, 2023. All quarterly comparisons are to the same
year-ago period unless otherwise noted. The company will hold a
conference call at 5:00 p.m. Eastern time today to discuss the
results (see dial-in information below).
Q2 2023 Financial Highlights
- Revenue totaled $17.2 million, up
2.3% sequentially.
- OSS Europe revenue increased 17.7%
to $8.9 million compared to the same year-ago quarter, with OSS
Classic revenue declining 22.8% to $8.3 million primarily due to
the anticipated winding down of the company’s legacy media and
entertainment business as it transitions to higher margin AI
Transportables, loss of revenue due to exit of an autonomous
trucking customer and delay in the receipt of military orders.
- Gross margin was 27.9%, compared to
28.4% in the same year-ago quarter.
- Net loss on a GAAP basis totaled
$2.4 million or $(0.12) per share, as compared to net income of
$323,000, or $0.02 per share, in the same year-ago quarter. The
loss included a goodwill impairment charge of $2.7 million and $1.3
million received from the federal employee retention credit
program.
- Non-GAAP net loss was $84,000 or
$(0.00) per share, versus non-GAAP net income of $871,000 or $0.04
per share in the same year-ago quarter.
- Adjusted EBITDA, a non-GAAP term,
totaled $487,000, compared to $1.2 million in the same year-ago
quarter (see definition of this and other non-GAAP measures and
their reconciliation to GAAP, below).
- Cash, cash equivalents and
short-term investments totaled $15.4 million on June 30, 2023, as
compared to $12.7 million on March 31, 2023.
First Half 2023 Financial Highlights
- Revenue totaled $34.0 million, with
OSS Europe revenue up 21.5% to $17.1 million, partially offsetting
a decrease in OSS Classic revenue of 20.6% to $16.9 million.
- Gross margin was 29.0% compared to
29.2% in the first half of 2022.
- Net loss on a GAAP basis totaled
$2.8 million or $(0.14) per diluted share, compared to net income
of $0.9 million or $0.04 per diluted share in the first half of
2022.
- Non-GAAP net income totaled $6,000
or $0.00 per diluted share, as compared to $1.8 million or $0.09
per diluted share in the first half of 2022.
- Adjusted non-GAAP EBITDA totaled
$1.0 million, as compared to $2.6 million in the first half of
2022.
Q2 2023 Operational Highlights
- Received NVIDIA certification for
Rigel Edge Supercomputer™, the only edge-certified AI system using
four of NVIDIA GPUs based on the NVIDIA HGX™ A100 platform. Rigel
met the NVIDIA-Certified standard for performance, functionality,
scalability and security.
- Demonstrated a technologically
disruptive two-phase liquid immersion-cooled version of the Rigel
Edge Supercomputer at the Sea-Air-Space 2023 (SAS) conference.
- Six new major program wins, which
included three in AI Transportables, are expected to yield
approximately $3.3 million in revenues in 2023.
- Received an initial order from a new
military prime contractor for OSS 3U short-depth servers (SDS) for
use by a U.S. Air Force anti-electronic warfare system, with
shipments now underway. The initial order is valued at
approximately $3.5 million over three years.
- Appointed Michael Knowles as
president and CEO, bringing to OSS more than 30 years of leadership
experience in the global aerospace and defense markets, including
previously as president and general manager of a $700 million
global business unit with 2,000 employees.
Subsequent Events
OSS has appointed retired three-star Vice Admiral Michael J.
Dumont, and the company’s president and CEO, Michael Knowles, to
its board of directors, effective as of the end of the third
quarter. They will succeed two existing board members, Jack
Harrison and Sita Lowman, who will be stepping down at the end of
the third quarter.
Dumont, who has served on the company’s advisory board since
last year, previously served as the deputy commander of U.S.
Northern Command and vice commander of North American Aerospace
Defense Command (NORAD). He currently serves as interim president
of the California State University Maritime Academy. He also serves
on the board of directors of the Marines’ Memorial Association; the
board of advisors of Dataminr, an AI-powered risk management
platform; and the national security advisory council of the U.S.
Global Leadership Coalition.
He served five years on active duty as an Army aviator and
paratrooper. Upon leaving the Army, he affiliated with the U.S.
Navy Reserve as a naval aviator. Dumont has held five commands,
including an air squadron, several operational units, and a joint
command.
He holds a Juris Doctor from Suffolk University Law School, a
Master of Science in Strategic Studies from the U.S. Army War
College, and a Master of Science in National Security Strategy from
the National War College.
Management Commentary
“In Q2, revenue climbed 2.3% sequentially to $17.2 million, but
was lower than expected and declined from the year-ago quarter due
to a convergence of a number of factors,” stated Knowles. “We
estimate about $3.3 million of the decline was due to the final
wind down of our legacy media business that has yet to be replaced
with AI Transportable revenues.
“We have also seen changes in the autonomous trucking industry,
where there have been consolidation and departures of players from
the market and an overall delay in deployment of autonomous truck
solutions. Further, we experienced unexpected delays in orders from
our defense and other commercial customers that totaled around $5-6
million that we now expect to be pushed into 2024.
“Despite these headwinds, our customer win rate remained at
historical levels due to our competitive advantages in AI
Transportables, with this boding well for future revenue growth.
Our pipeline of pending major programs at the end of Q2 also
remained robust and increasingly global in scope, with 19 out the
33 of these involving AI transportable applications in the U.S.,
Asia Pacific, and Europe.
“Our opportunities with AI and sensor fusion for military
defense applications increasingly require workforce security
clearances and a specially secured facility. We expect to receive
such security clearance by the end of the year and see this not
only opening up valuable new opportunities but also providing a
competitive edge.
“As we continue to transition the business toward these higher
value opportunities, we have implemented a number of organizational
changes designed to revitalize our efforts and better address the
substantial market opportunities in defense and AI Transportables.
This includes my appointment as the company’s new president and CEO
in June and the recent appointment of Robert Kalebaugh to the new
position of VP of sales.
“Robert has brought to OSS more than 30 years of business
development, domain experience, and an impressive record of sales
success in the defense and commercial markets. Having previously
worked alongside Robert for several years, I am confident we will
be able to leverage the collective strengths of our team to enhance
our sales and marketing efforts and accelerate our growth strategy.
Robert has already been fast at work, updating our methods and
processes for greater efficiency and effectiveness, and building
our sales pipeline.
“Today we also announced key board changes to better align with
our strategy. We are deeply appreciative of the contributions of
our departing board members who have helped guide the company
through the challenging times of the global pandemic and their
support of our greater focus on defense opportunities. This was
reflected in our appointment of Vice Admiral Dumont as a new
independent director, effective as of the end of the third quarter,
who brings many key strengths to our board.
“Over the last several weeks, I have had the opportunity to
engage with our customers and prospective customers in the defense
and commercial markets. I believe I have been able to strengthen
their confidence in OSS and reaffirm our strategy and opportunity
in the AI Transportable space.
“We are also fortunate to possess an exceptionally talented and
motivated operational team with strong technical and product
expertise. They have created an innovation-driven environment that
continues to deliver market-leading products that meet the
demanding requirements for rugged datacenter-class processing at
the edge—or as we say, deliver performance without compromise.
“Overall, we believe we have the right team, strategy and
products that will continue to build a robust pipeline and enable
us to succeed in the growing global marketplace for AI
Transportables.”
Outlook
The company anticipates factors related to delays in defense and
commercial program orders will continue to impact its financial
performance through the second half of the year. As such, revenue
is expected to total approximately $13.5 million in the third
quarter of 2023.
Q2 2023 Financial Summary
Consolidated revenue in Q2 totaled $17.2 million, up 2.3%
sequentially, and declined 6.0% from the same year-ago period. The
decline was due to the anticipated decreased shipments to the
company’s legacy media and entertainment customer. The decrease was
also due to delays in defense orders and a reduction in product
shipments into the autonomous truck industry where there have been
consolidation and departures of players from the market and an
overall delay in deployment of the technology.
Approximately $3.3 million of the quarterly decline in revenue
was from the low margin legacy media business, which was partly
offset in the quarter by AI Transportable revenue. OSS has
substantially fulfilled the remaining orders associated with its
media customer and does not expect further measurable business.
The delay in certain orders for the commercial and defense
markets represent $5 million to $6 million of revenue that OSS
believes will be pushed from 2023 to 2024 and represents only a
deferral of revenue opportunity. While OSS experienced some delays
in orders during the second quarter, the company’s win rate has
remained at or above previous levels.
The company’s business is comprised of two segments: OSS Classic
and OSS Europe. OSS Classic is involved in the design and
manufacture of high-performance ruggedized computers, flash arrays
and connectivity. OSS Europe primarily operates as a value-added
reseller with minimal product customization and a renewed focus on
selling OSS Classic products into the European community.
In the second quarter, OSS Classic revenue declined 22.8% to
$8.3 million due to the factors mentioned above, while OSS Europe
revenue increased 17.7% to $8.9 million.
The OSS Europe increase was due to additional project-based
business, including approximately $1.2 million of OSS core
products, and an increase in the number of smaller accounts, as
well as having more available inventory to ship as compared to the
same year-ago quarter.
Overall gross profit in the second quarter was $4.8 million. The
overall gross margin percentage was 27.9%, as compared to 28.4% in
the same period in 2022.
The gross margin for OSS Classic business decreased 3.8
percentage points to 29.2%, which was also attributable to the
predominance of lower margin sales to the company’s media customer
and higher mix of third-party components.
OSS Europe’s gross margin percentage improved 4.8 percentage
points to 26.7%, as compared to 21.9%, due to product mix, the sale
of higher margin OSS Classic products, and having sought-after
products readily sold at a premium.
Overall, quarterly operating expenses increased 71.1% to $8.2
million, with operating expenses as a percentage of revenue
increasing to 47.7% compared to 26.2%. The most significant
component of this increase was a $2.7 million write-down
attributable to an impairment of goodwill resulting from the
overall financial performance of OSS Classic as compared to plan,
the company’s increased focus on the defense industry, and the
deferment of orders.
Another significant component was an increase of $1.3 million in
general and administrative expenses, with $1.1 million attributable
to increased costs associated with the company’s organizational
restructuring and strategic transitioning of senior management and
outside professional services.
The increase in operating expenses was partially offset by
decreases of $241,000 in marketing and selling expenses and
$297,000 in R&D expense.
Loss from operations totaled $3.4 million, compared to income
from operations of $402,000 in the same period in 2022. This
reduction was predominantly attributable to lower revenue, the
write-down attributable to an impairment of goodwill, and
transition costs.
Net loss on a GAAP basis was $2.4 million or $(0.12) per share,
as compared to net income of $323,000 or $0.02 per share. Net loss
in the second quarter also includes a one-time benefit of $1.3
million attributable to receipt of COVID –19 funds under the
government’s employee retention credit program.
Non-GAAP net loss was $84,000 or $(0.00) per share, versus
non-GAAP net income of $871,000, or $0.04 per share.
Adjusted EBITDA, a non-GAAP metric, was $487,000 or 2.8% of
revenue, a decrease from $1.2 million or 6.5% of revenue.
Each of these non-GAAP metrics excludes $2.7 million for the
impairment of goodwill and $1.3 million for the employee retention
credit.
On June 30, 2023, cash and cash equivalents totaled $6.1
million, with short-term investments of $9.3 million, for a
combined total of $15.4 million. This combined total represents an
increase of $2.7 million as compared to the prior quarter. The
increase is primarily due to the employee retention credit and a
decrease in working capital requirements.
First Half 2023 Financial SummaryFor the first
half of 2023, consolidated revenue decreased 3.9% to $34.0 million.
The decrease in revenue in the first half of 2023 is due to the
reasons discussed in reference to Q2.
OSS Classic revenue decreased 20.6% to $16.9 million, with OSS
Europe revenue increasing 21.5% to $17.1 million which was
inclusive of $2.4 million of OSS core product.
Overall gross profit was $9.9 million. The overall gross margin
percentage was 29.0%, as compared to 29.2%.
OSS Classic’s gross margin percentage was 32.8%, a decrease of
1.5 percentage points as compared to 34.3%. This was due to the
predominance of lower margin sales to the company’s media customer
and higher mix of products with third-party components.
OSS Europe contributed gross margin at a rate of 25.3%, as
compared to 21.5%, an increase of 3.8 percentage points, due to
product mix, increasing sales of OSS Classic products, and of
having sought-after products sold at a premium.
Total operating expenses increased 45.1% to $13.5 million. The
increase was primarily due to an increase of the $2.7 million
write-down attributable to an impairment of goodwill and $1.8
million in general and administrative expenses, of which $1.4
million of the increase was due to increased non-recurring costs
associated with the company’s organizational restructuring and
outside professional services.
This increase in operating expenses was partially offset by a
decrease of $346,000 in R&D expense resulting from more
engineers being deployed on chargeable work for which the expense
is classified as a cost of revenue.
Loss from operations totaled $3.6 million compared to income
from operations of $1.1 million.
Net loss on a GAAP basis was $2.8 million or $(0.14) per diluted
share, inclusive of the $1.3 million employee retention credit,
compared to net income on a GAAP basis of $902,000, or $0.04 per
diluted share.
Non-GAAP net income totaled $6,000 or $0.00 per diluted share,
as compared to $1.8 million or $0.09 per diluted share in the same
year-ago period.
Adjusted EBITDA totaled $1.0 million or 3.0% of revenue,
compared to $2.6 million or 7.3% of revenue.
Both non-GAAP net income and adjusted EBITDA exclude the $2.7
million impairment of goodwill and the $1.3 million employee
retention credit.
Conference Call
OSS management will hold a conference call later today to
discuss its results for the second quarter ended June 30, 2023,
followed by a question-and-answer period.
Date: Thursday, August 10, 2023Time: 5:00 p.m. Eastern time
(2:00 p.m. Pacific time)Toll-free dial-in number:
1-888-886-7786International dial-in number:
1-416-764-8658Conference ID: 07082306Webcast: here (live and
replay)
Approximately two hours after the Q&A session, an archived
version of the webcast will be available in the Investors section
of the company’s website at onestopsystems.com. OSS regularly uses
its website to disclose material and non-material information to
investors, customers, employees and others interested in the
company.
Please call the conference telephone number five minutes prior
to the start time. An operator will register your name and
organization. If you require any assistance connecting with the
call, please contact CMA at 1-949-432-7566.
A replay of the call will be available after 8:00 p.m. Eastern
time on the same day and through August 24, 2023.
Toll-free replay number: 1-844-512-2921International replay
number: 1-412-317-6671Replay ID: 07082306
About One Stop SystemsOne Stop Systems, Inc.
(Nasdaq: OSS) is a leader in AI Transportable solutions for the
demanding ‘edge.’ OSS designs and manufactures the highest
performance compute and storage products that enable rugged AI,
sensor fusion and autonomous capabilities without compromise. These
hardware and software platforms bring the latest data center
performance to the harsh and challenging applications, whether they
are on land, sea or in the air.OSS products include ruggedized
servers, compute accelerators, flash storage arrays, and storage
acceleration software. These specialized compact products are used
across multiple industries and applications, including autonomous
trucking and farming, as well as aircraft, drones, ships and
vehicles within the defense industry.OSS solutions address the
entire AI workflow, from high-speed data acquisition to deep
learning, training and large-scale inference, and have delivered
many industry firsts for industrial OEM and government
customers.
As the fastest growing segment of the multi-billion-dollar edge
computing market, AI Transportables require—and OSS delivers—the
highest level of performance in the most challenging environments
without compromise.
OSS products are available directly or through global
distributors. For more information, go to www.onestopsystems.com.
You can also follow OSS on Twitter, YouTube, and
LinkedIn.Non-GAAP Financial Measures
The company believes that the use of adjusted earnings before
interest, taxes, depreciation and amortization, or adjusted EBITDA,
is helpful for an investor to assess the performance of the
Company. The Company defines adjusted EBITDA as income (loss)
before interest, taxes, depreciation, amortization, acquisition
expenses, impairment of long-lived assets, financing costs, fair
value adjustments from purchase accounting, stock-based
compensation expense and expenses related to discontinued
operations.
Adjusted EBITDA is not a measurement of financial performance
under generally accepted accounting principles in the United
States, or GAAP. Because of varying available valuation
methodologies, subjective assumptions and the variety of equity
instruments that can impact a company’s non-cash operating
expenses, the company believes that providing a non-GAAP financial
measure that excludes non-cash and non-recurring expenses allows
for meaningful comparisons between the company’s core business
operating results and those of other companies, as well as
providing the company with an important tool for financial and
operational decision making and for evaluating our own core
business operating results over different periods of time.
The company’s adjusted EBITDA measure may not provide
information that is directly comparable to that provided by other
companies in its industry, as other companies in the company’s
industry may calculate non-GAAP financial results differently,
particularly related to non-recurring, unusual items. The company’s
adjusted EBITDA is not a measurement of financial performance under
GAAP and should not be considered as an alternative to operating
income or as an indication of operating performance or any other
measure of performance derived in accordance with GAAP. The company
does not consider adjusted EBITDA to be a substitute for, or
superior to, the information provided by GAAP financial
results.
|
|
For the Three Months EndedJune
30, |
|
|
For the Six Months EndedJune
30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net (loss) income |
|
$ |
(2,399,496 |
) |
|
$ |
322,822 |
|
|
$ |
(2,800,008 |
) |
|
$ |
902,056 |
|
Depreciation and amortization |
|
|
270,255 |
|
|
|
254,429 |
|
|
|
542,528 |
|
|
|
524,220 |
|
Stock-based compensation expense |
|
|
898,008 |
|
|
|
532,636 |
|
|
|
1,372,217 |
|
|
|
915,464 |
|
Interest expense |
|
|
23,939 |
|
|
|
44,949 |
|
|
|
56,644 |
|
|
|
103,665 |
|
Interest income |
|
|
(104,785 |
) |
|
|
(55,507 |
) |
|
|
(215,051 |
) |
|
|
(106,512 |
) |
Impairment of goodwill |
|
|
2,700,000 |
|
|
|
- |
|
|
|
2,700,000 |
|
|
|
- |
|
Employee retention credit (ERC) |
|
|
(1,298,241 |
) |
|
|
- |
|
|
|
(1,298,241 |
) |
|
|
- |
|
Provision for income taxes |
|
|
396,863 |
|
|
|
85,490 |
|
|
|
658,365 |
|
|
|
250,798 |
|
Adjusted EBITDA |
|
$ |
486,543 |
|
|
$ |
1,184,819 |
|
|
$ |
1,016,454 |
|
|
$ |
2,589,691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS excludes the impact of certain items, and
therefore, has not been calculated in accordance with GAAP. The
company believes that exclusion of certain selected items assists
in providing a more complete understanding of our underlying
results and trends and allows for comparability with the company’s
peer company index and industry. The company uses this measure
along with the corresponding GAAP financial measures to manage its
business and to evaluate its performance compared to prior periods
and the marketplace. The Company defines non-GAAP income (loss) as
income or (loss) before amortization, stock-based compensation,
expenses related to discontinued operations, impairment of
long-lived assets and non-recurring acquisition costs. Adjusted EPS
expresses adjusted income (loss) on a per share basis using
weighted average diluted shares outstanding.
Adjusted EPS is a non-GAAP financial measure and should not be
considered in isolation or as a substitute for financial
information provided in accordance with GAAP. These non-GAAP
financial measures may not be computed in the same manner as
similarly titled measures used by other companies. The company
expects to continue to incur expenses similar to the adjusted
income from continuing operations and adjusted EPS financial
adjustments described above, and investors should not infer from
its presentation of these non-GAAP financial measures that these
costs are unusual, infrequent or non-recurring.
The following table reconciles
non-GAAP net income and basic and diluted earnings per share: |
|
For the Three Months EndedJune
30, |
|
|
For the Six Months EndedJune
30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net (loss) income |
|
$ |
(2,399,496 |
) |
|
$ |
322,822 |
|
|
$ |
(2,800,008 |
) |
|
$ |
902,056 |
|
Amortization of intangibles |
|
|
15,808 |
|
|
|
15,807 |
|
|
|
31,616 |
|
|
|
31,616 |
|
Impairment of goodwill |
|
|
2,700,000 |
|
|
|
- |
|
|
|
2,700,000 |
|
|
|
- |
|
Employee retention credit (ERC) |
|
|
(1,298,241 |
) |
|
|
- |
|
|
|
(1,298,241 |
) |
|
|
- |
|
Stock-based compensation expense |
|
|
898,008 |
|
|
|
532,636 |
|
|
|
1,372,217 |
|
|
|
915,464 |
|
Non-GAAP net (loss)
income |
|
$ |
(83,921 |
) |
|
$ |
871,265 |
|
|
$ |
5,584 |
|
|
$ |
1,849,136 |
|
Non-GAAP net (loss) income per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.00 |
) |
|
$ |
0.04 |
|
|
$ |
0.00 |
|
|
$ |
0.10 |
|
Diluted |
|
$ |
(0.00 |
) |
|
$ |
0.04 |
|
|
$ |
0.00 |
|
|
$ |
0.09 |
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
20,397,741 |
|
|
|
19,940,902 |
|
|
|
20,325,029 |
|
|
|
19,416,832 |
|
Diluted |
|
|
20,397,741 |
|
|
|
21,180,490 |
|
|
|
20,841,127 |
|
|
|
20,346,917 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward-Looking StatementsOne Stop Systems
cautions you that statements in this press release that are not a
description of historical facts are forward-looking statements.
These statements are based on the company's current beliefs and
expectations. The inclusion of forward-looking statements should
not be regarded as a representation by One Stop Systems or its
partners that any of our plans or expectations will be achieved,
including but not limited to, to our management’s expectations for
major program wins, the company’s penetration of the Defense and AI
Transportable sectors, revenue growth generated by new and existing
products, future changes to our business objectives, changes to our
board, and other future financial projections. Actual results may
differ from those set forth in this press release due to the risk
and uncertainties inherent in our business, including risks
described in our prior press releases and in our filings with the
Securities and Exchange Commission (SEC), including under the
heading "Risk Factors" in our latest Annual Report on Form 10-K and
any subsequent filings with the SEC. You are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date hereof, and the company undertakes no
obligation to revise or update this press release to reflect events
or circumstances after the date hereof. All forward-looking
statements are qualified in their entirety by this cautionary
statement, which is made under the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995.Media
Contacts: Katie RiveraOne Stop Systems, Inc. Tel (760)
745-9883Email contact
Tim RandallCMA Media RelationsTel (949) 432-7572Email
Contact
Investor Relations:Ronald Both or Grant
StudeCMA Investor RelationsTel (949) 432-7557 Email contact
ONE STOP SYSTEMS, INC. (OSS)
CONSOLIDATED BALANCE SHEETS
|
|
Unaudited |
|
|
Audited |
|
|
|
June 30, |
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
ASSETS |
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
6,100,317 |
|
|
$ |
3,112,196 |
|
Short-term investments |
|
|
9,321,456 |
|
|
|
10,123,535 |
|
Accounts receivable, net |
|
|
9,225,346 |
|
|
|
11,327,244 |
|
Inventories, net |
|
|
21,463,925 |
|
|
|
20,775,366 |
|
Prepaid expenses and other current assets |
|
|
1,231,609 |
|
|
|
502,156 |
|
Total current assets |
|
|
47,342,653 |
|
|
|
45,840,497 |
|
Property
and equipment, net |
|
|
2,432,900 |
|
|
|
2,570,124 |
|
Operating lease right-of use assets |
|
|
569,296 |
|
|
|
731,043 |
|
Deposits
and other |
|
|
48,093 |
|
|
|
60,243 |
|
Goodwill |
|
|
4,420,510 |
|
|
|
7,120,510 |
|
Intangible assets, net |
|
|
10,538 |
|
|
|
42,154 |
|
Total Assets |
|
$ |
54,823,990 |
|
|
$ |
56,364,571 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Accounts payable |
|
$ |
2,811,093 |
|
|
$ |
4,592,713 |
|
Accrued expenses and other liabilities |
|
|
4,987,695 |
|
|
|
3,013,869 |
|
Current portion of operating lease obligation |
|
|
583,675 |
|
|
|
536,588 |
|
Current portion of notes payable |
|
|
3,012,945 |
|
|
|
2,952,447 |
|
Total current liabilities |
|
|
11,395,408 |
|
|
|
11,095,617 |
|
Long-term debt, net of current
portion |
|
|
- |
|
|
|
409,294 |
|
Deferred tax liability,
net |
|
|
136,746 |
|
|
|
138,662 |
|
Operating lease obligation,
net of current portion |
|
|
148,830 |
|
|
|
397,249 |
|
Total liabilities |
|
|
11,680,984 |
|
|
|
12,040,822 |
|
Commitments and
contingencies |
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
Common stock, $0.0001 par value; 50,000,000 shares authorized;
20,543,024 and 20,084,528 shares issued and outstanding,
respectively |
|
|
2,053 |
|
|
|
2,008 |
|
Additional paid-in capital |
|
|
46,404,428 |
|
|
|
45,513,807 |
|
Accumulated other comprehensive income |
|
|
1,239,084 |
|
|
|
510,485 |
|
Accumulated deficit |
|
|
(4,502,559 |
) |
|
|
(1,702,551 |
) |
Total stockholders’ equity |
|
|
43,143,006 |
|
|
|
44,323,749 |
|
Total Liabilities and Stockholders' Equity |
|
$ |
54,823,990 |
|
|
$ |
56,364,571 |
|
|
|
|
|
|
|
|
ONE STOP SYSTEMS, INC. (OSS)
UNAUDITED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue |
|
$ |
17,211,532 |
|
|
$ |
18,303,343 |
|
|
$ |
33,993,426 |
|
|
$ |
35,356,020 |
|
Cost of revenue |
|
|
12,413,594 |
|
|
|
13,103,025 |
|
|
|
24,124,726 |
|
|
|
25,015,047 |
|
Gross profit |
|
|
4,797,938 |
|
|
|
5,200,318 |
|
|
|
9,868,700 |
|
|
|
10,340,973 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
|
3,072,880 |
|
|
|
1,821,445 |
|
|
|
5,357,981 |
|
|
|
3,596,133 |
|
Impairment of goodwill |
|
|
2,700,000 |
|
|
|
- |
|
|
|
2,700,000 |
|
|
|
- |
|
Marketing and selling |
|
|
1,483,965 |
|
|
|
1,724,913 |
|
|
|
3,270,646 |
|
|
|
3,196,633 |
|
Research and development |
|
|
954,650 |
|
|
|
1,252,037 |
|
|
|
2,149,978 |
|
|
|
2,496,152 |
|
Total operating expenses |
|
|
8,211,495 |
|
|
|
4,798,395 |
|
|
|
13,478,605 |
|
|
|
9,288,918 |
|
(Loss) income from operations |
|
|
(3,413,557 |
) |
|
|
401,923 |
|
|
|
(3,609,905 |
) |
|
|
1,052,055 |
|
Other income (expense),
net: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
104,785 |
|
|
|
55,507 |
|
|
|
215,051 |
|
|
|
106,512 |
|
Interest expense |
|
|
(23,939 |
) |
|
|
(44,949 |
) |
|
|
(56,644 |
) |
|
|
(103,665 |
) |
Employee retention credit (ERC) |
|
|
1,298,241 |
|
|
|
- |
|
|
|
1,298,241 |
|
|
|
- |
|
Other income (expense), net |
|
|
31,837 |
|
|
|
(4,169 |
) |
|
|
11,614 |
|
|
|
97,952 |
|
Total other income, net |
|
|
1,410,924 |
|
|
|
6,389 |
|
|
|
1,468,262 |
|
|
|
100,799 |
|
Income before income
taxes |
|
|
(2,002,633 |
) |
|
|
408,312 |
|
|
|
(2,141,643 |
) |
|
|
1,152,854 |
|
Provision for income
taxes |
|
|
396,863 |
|
|
|
85,490 |
|
|
|
658,365 |
|
|
|
250,798 |
|
Net (loss) income |
|
$ |
(2,399,496 |
) |
|
$ |
322,822 |
|
|
$ |
(2,800,008 |
) |
|
$ |
902,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.12 |
) |
|
$ |
0.02 |
|
|
$ |
(0.14 |
) |
|
$ |
0.05 |
|
Diluted |
|
$ |
(0.12 |
) |
|
$ |
0.02 |
|
|
$ |
(0.14 |
) |
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
20,397,741 |
|
|
|
19,940,902 |
|
|
|
20,325,029 |
|
|
|
19,416,832 |
|
Diluted |
|
|
20,397,741 |
|
|
|
21,180,490 |
|
|
|
20,325,029 |
|
|
|
20,346,917 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One Stop Systems (NASDAQ:OSS)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
One Stop Systems (NASDAQ:OSS)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024