Reports Full-Year GAAP Net Income, Record
Adjusted EBITDA and 28% Increase in Platform Revenue
HENDERSON, Nev., Sept. 13,
2023 /PRNewswire/ -- Research Solutions,
Inc. (NASDAQ: RSSS), a pioneer in providing cloud-based
workflow solutions for R&D driven organizations, reported
financial results for its fiscal fourth quarter and full year ended
June 30, 2023.
Fiscal Fourth Quarter 2023 Summary
- Total revenue increased 16% to $10.0
million
- Platform revenue up 22% to $2.3 million; Annual recurring
revenue up 19% to $9.4 million
- Gross profit up 19% to the prior-year quarter; Total gross
margin improved 110 basis points to 39.4%
- Net income of $375,746 or
one cent per diluted share, compared
to a net loss of ($438,267) or
one cent per share in the prior-year
quarter
- Adjusted EBITDA of $825,087
compared to ($121,327) in the same
period a year ago
- Cash flow from operations of $1.5
million compared to slightly negative cash flow in the
prior-year quarter
Full-Year Fiscal 2023 Summary
- Total revenue increased 14% to $37.7
million
- Platform revenue of $8.7 million,
a 28% increase, with a 14% increase in total deployments to
835
- Total gross margin increased 250 basis points to 39.0%
- Net income of $0.6 million, or
$0.02 per diluted share, compared to
a net loss of $1.6 million or
($0.06) per share in the prior year
- Adjusted EBITDA of $2.0 million
compared to ($0.4 million) in the
previous year
- Cash flow from operations of $3.4
million, compared to ($0.4
million) in the previous year
Items Subsequent to End of Fiscal 2023
- Acquired ResoluteAI, a developer of advanced search and
discovery tools
- Engaged Jeremy Murphy as an
advisor and observer to the Board of Directors
"Fiscal year 2023 was an exciting year for our business.
Our results represent the significant progress made across our
organization, highlighted by our highest annual organic revenue
growth in more than a decade and first year of GAAP profitability
since fiscal 2015," said Roy W.
Olivier, President and CEO of Research Solutions. "Our
customers continue to recognize the greater efficiency and cost
savings offered through our Article Galaxy platform and our recent
acquisition of ResoluteAI expands these offerings and capabilities,
providing us with meaningful cross-selling opportunities.
While we continue to see headwinds in the platform business, we are
optimistic about our fiscal year 2024 and look to continue to grow
the business organically as well as through strategic M&A."
Fiscal Fourth Quarter 2023 Results
Total revenue increased 16% to $10.0
million, compared to $8.6
million in the same year-ago quarter.
Platform subscription revenue increased 22% to $2.3 million compared to approximately
$1.9 million in the year-ago quarter.
The increase was primarily due to an increase in upsell activity
within our existing customer base and an increase in the total
number of paid Platform deployments, including 20 added in the
quarter. The quarter ended with annual recurring revenue of
$9.4 million, up 4% sequentially and
19% year-over-year (see the company's definition of annual
recurring revenue below).
Transaction revenue was up 15%, increasing to $7.7 million, compared to $6.7 million in the fourth quarter of fiscal
2022. Transaction customers count for the quarter was 1,404,
compared to 1,213 customers in the prior year quarter (see the
company's definition of active customer accounts and transactions
below).
Total gross margin improved 110 basis points from the prior-year
quarter to 39.4%. The increase was primarily driven by a continued
revenue mix shift to the higher-margin Platform business.
Total operating expenses were approximately $3.7 million, a $62,000 decrease from the fourth quarter of 2022.
The decrease was primarily due to lower sales and marketing
expenses.
Net income in the fourth quarter was $376,000, or one
cent per diluted share, compared to a net loss of
($438,000), or two cents per share, in the prior-year quarter.
Adjusted EBITDA was $825,000,
compared to ($121,000) in the
year-ago quarter (see definition and further discussion about the
presentation of Adjusted EBITDA, a non-GAAP term, below).
Full-Year Fiscal 2023 Results
Total revenue increased 14% to $37.7
million, compared to $32.9
million in fiscal 2022.
Platform subscription revenue was $8.7
million, a 28% increase over the prior year. The increase
was due to upselling current platform customers and an increase in
the total number of paid Platform deployments.
Transaction revenue was $29.0
million, an 11% increase compared to the previous year. The
increase is primarily due to organic growth and also the
acquisition of certain customer contracts from FIZ Karlsruhe which
became effective in the third quarter of fiscal 2023.
Total gross margin improved 250 basis points over the prior year
to 39.0%. The increase was primarily driven by a continued revenue
mix shift to the higher-margin Platform business.
Total operating expenses were $14.5
million compared to $13.7
million in the prior year. The increase was primarily due to
higher stock compensation expense related to the transition to a
new program that the Company views as better aligned with
shareholders' interests.
Net income for fiscal year 2023 was $572,000, or $0.02
per diluted share. Net loss in fiscal 2022 was $1.6 million, or ($0.06) per share. Adjusted EBITDA for fiscal
2023 was a positive $2.0 million,
compared to a negative $374,000 in
the prior year (see definition and further discussion about the
presentation of Adjusted EBITDA, a non-GAAP term, below).
Cash and cash equivalents on June 30,
2023, amounted to $13.5
million compared to $10.6
million as of June 30, 2022.
There were no outstanding borrowings under the company's
$2.5 million revolving line of credit
and the company had no long-term liabilities or other debt.
Conference Call
Research Solutions President and CEO Roy
W. Olivier and CFO Bill
Nurthen will host the conference call, followed by a
question and answer period.
Date: Wednesday, September 13,
2023
Time: 5:00 p.m. ET (2:00 p.m. PT)
Dial-in number: 1-412-317-5180
Conference ID: 10182138
The conference call will be broadcast live and available for
replay until October 13, 2023, by
dialing 1-412-317-6671 and using the replay ID 10182138, and via
the investor relations section of the company's website at
http://researchsolutions.investorroom.com/.
Fiscal Fourth Quarter Financial and Operational Summary
Tables vs. Prior-Year Quarter
|
|
Quarter Ended June 30,
|
|
|
2023
|
2022
|
Change
|
% Change
|
Revenue:
|
|
|
|
|
|
Platforms
|
$ 2,303,375
|
$ 1,886,845
|
$ 416,530
|
22.1 %
|
|
Transactions
|
$ 7,656,342
|
$ 6,675,164
|
981,178
|
14.7 %
|
Total
Revenue
|
9,959,717
|
8,562,009
|
1,397,708
|
16.3 %
|
|
|
|
|
|
Gross
Profit:
|
|
|
|
|
|
Platforms
|
2,028,265
|
1,646,631
|
381,634
|
23.2 %
|
|
Transactions
|
1,892,278
|
1,636,511
|
255,767
|
15.6 %
|
Total Gross
Profit
|
3,920,543
|
3,283,142
|
637,401
|
19.4 %
|
|
|
|
|
|
Gross profit as a % of
revenue:
|
|
|
|
|
|
Platforms
|
88.1 %
|
87.3 %
|
0.8 %
|
|
|
Transactions
|
24.7 %
|
24.5 %
|
0.2 %
|
|
Total Gross
Profit
|
39.4 %
|
38.3 %
|
1.0 %
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
Sales and
marketing
|
455,030
|
691,368
|
(236,338)
|
-34.2 %
|
|
Technology and product
development
|
991,093
|
1,049,430
|
(58,337)
|
-5.6 %
|
|
General and
administrative
|
1,649,333
|
1,663,671
|
(14,339)
|
-0.9 %
|
|
Depreciation and
amortization
|
22,163
|
5,507
|
16,656
|
302.5 %
|
|
Stock-based
compensation
|
585,384
|
225,501
|
359,883
|
159.6 %
|
|
Foreign currency
translation loss
|
(37,743)
|
91,279
|
(129,022)
|
NM
|
Total Operating
Expenses
|
3,665,260
|
3,726,756
|
(61,497)
|
-1.7 %
|
Income (loss) from
operations
|
255,283
|
(443,614)
|
698,897
|
157.5 %
|
|
|
|
|
|
Other Income
(Expenses):
|
|
|
|
|
|
Other income
(expense)
|
120,522
|
6,377
|
114,145
|
NM
|
|
Provision for income
taxes
|
(59)
|
(1,030)
|
971
|
-94.3 %
|
Total Other Income
(Expenses):
|
120,463
|
5,347
|
115,116
|
NM
|
Net income
(loss)
|
$ 375,746
|
$
(438,267)
|
814,013
|
185.7 %
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 825,087
|
$
(121,327)
|
$ 946,414
|
NM
|
|
|
|
|
|
|
|
|
Quarter Ended June 30,
|
|
|
2023
|
2022
|
Change
|
% Change
|
Platforms:
|
|
|
|
|
|
ARR (Annual recurring
revenue):
|
|
|
|
|
|
Beginning of
Period
|
$ 9,107,681
|
$ 7,348,847
|
$ 1,758,834
|
23.9 %
|
|
Incremental ARR
|
336,449
|
573,341
|
(236,892)
|
-41.3 %
|
|
End of
Period
|
$ 9,444,130
|
$ 7,922,188
|
$ 1,521,942
|
19.2 %
|
|
|
|
|
|
|
Deployments:
|
|
|
|
|
|
Beginning of
Period
|
815
|
680
|
135
|
19.9 %
|
|
Incremental Deployments
|
20
|
53
|
(33)
|
-62.3 %
|
|
End of
Period
|
835
|
733
|
102
|
13.9 %
|
|
|
|
|
|
|
ASP (Average sales
price):
|
|
|
|
|
|
Beginning of
Period
|
$
11,175
|
$
10,807
|
$
368
|
3.4 %
|
|
End of
Period
|
$
11,310
|
$
10,808
|
$
502
|
4.6 %
|
|
|
|
|
|
Transaction Customers:
|
|
|
|
|
|
Corporate
customers
|
1,090
|
920
|
170
|
18.5 %
|
|
Academic
customers
|
314
|
293
|
21
|
7.2 %
|
|
Total
customers
|
1,404
|
1,213
|
191
|
15.7 %
|
Fiscal Full Year Financial and Operational Summary Tables vs.
Prior-Year
|
|
Twelve Months Ended June 30,
|
|
|
2023
|
2022
|
Change
|
% Change
|
Revenue:
|
|
|
|
|
|
Platforms
|
$
8,683,246
|
$
6,787,772
|
$
1,895,474
|
27.9 %
|
|
Transactions
|
$ 29,020,206
|
$ 26,146,380
|
2,873,826
|
11.0 %
|
Total
Revenue
|
37,703,452
|
32,934,152
|
4,769,300
|
14.5 %
|
|
|
|
|
|
Gross
Profit:
|
|
|
|
|
|
Platforms
|
7,655,960
|
5,851,183
|
1,804,777
|
30.8 %
|
|
Transactions
|
7,044,931
|
6,168,491
|
876,440
|
14.2 %
|
Total Gross
Profit
|
14,700,891
|
12,019,674
|
2,681,217
|
22.3 %
|
|
|
|
|
|
Gross profit as a % of
revenue:
|
|
|
|
|
|
Platforms
|
88.2 %
|
86.2 %
|
2.0 %
|
|
|
Transactions
|
24.3 %
|
23.6 %
|
0.7 %
|
|
Total Gross
Profit
|
39.0 %
|
36.5 %
|
2.5 %
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
Sales and
marketing
|
2,285,478
|
2,276,172
|
9,306
|
0.4 %
|
|
Technology and product
development
|
3,742,192
|
3,711,085
|
31,107
|
0.8 %
|
|
General and
administrative
|
6,654,012
|
6,406,400
|
247,612
|
3.9 %
|
|
Depreciation and
amortization
|
52,649
|
17,651
|
34,998
|
198.3 %
|
|
Stock-based
compensation
|
1,849,906
|
1,096,384
|
753,522
|
68.7 %
|
|
Foreign currency
translation loss
|
(121,953)
|
143,898
|
(265,851)
|
NM
|
Total Operating
Expenses
|
14,462,284
|
13,651,590
|
810,694
|
5.9 %
|
Income (loss) from
operations
|
238,608
|
(1,631,916)
|
1,870,523
|
114.6 %
|
|
|
|
|
|
Other Income
(Expenses):
|
|
|
|
|
|
Other income
(expense)
|
338,617
|
7,154
|
331,463
|
NM
|
|
Provision for income
taxes
|
(5,602)
|
(7,622)
|
2,020
|
-26.5 %
|
Total Other Income
(Expenses):
|
333,015
|
(468)
|
333,483
|
NM
|
Net income
(loss)
|
$
571,623
|
$
(1,632,384)
|
2,204,006
|
135.0 %
|
|
|
|
|
|
Adjusted
EBITDA
|
$
2,019,210
|
$ (373,983)
|
$
2,393,192
|
NM
|
|
|
|
|
|
|
|
|
Twelve Months Ended June 30,
|
|
|
2023
|
2022
|
Change
|
% Change
|
Platforms:
|
|
|
|
|
|
ARR (Annual recurring
revenue):
|
|
|
|
|
|
Beginning of
Period
|
$
7,922,188
|
$
5,880,179
|
$
2,042,009
|
34.7 %
|
|
Incremental ARR
|
1,521,942
|
2,042,009
|
(520,067)
|
-25.5 %
|
|
End of
Period
|
$
9,444,130
|
$
7,922,188
|
$
1,521,942
|
19.2 %
|
|
|
|
|
|
|
Deployments:
|
|
|
|
|
|
Beginning of
Period
|
733
|
553
|
180
|
32.5 %
|
|
Incremental Deployments
|
102
|
180
|
(78)
|
-43.3 %
|
|
End of
Period
|
835
|
733
|
102
|
13.9 %
|
|
|
|
|
|
|
ASP (Average sales
price):
|
|
|
|
|
|
Beginning of
Period
|
$
10,808
|
$
10,633
|
$
175
|
1.6 %
|
|
End of
Period
|
$
11,310
|
$
10,808
|
$
502
|
4.6 %
|
|
|
|
|
|
Transaction Customers:
|
|
|
|
|
|
Corporate
customers
|
1,012
|
886
|
126
|
14.2 %
|
|
Academic
customers
|
304
|
299
|
5
|
1.6 %
|
|
Total
customers
|
1,316
|
1,185
|
131
|
11.1 %
|
Active Customer Accounts, Transactions and Annual Recurring
Revenue
The company defines active customer accounts as the sum of the
total quantity of customers per month for each month in the period
divided by the respective number of months in the period. The
quantity of customers per month is defined as customers with at
least one transaction during the month.
A transaction is an order for a unit of copyrighted content
fulfilled or managed in the Platform.
The company defines annual recurring revenue as the value of
contracted Platform subscription recurring revenue normalized to a
one-year period.
Use of Non-GAAP Measure – Adjusted EBITDA
Research Solutions' management evaluates and makes operating
decisions using various financial metrics. In addition to the
company's GAAP results, management also considers the non-GAAP
measure of Adjusted EBITDA. Management believes that this non-GAAP
measure provides useful information about the company's operating
results.
The tables below provide a reconciliation of this non-GAAP
financial measure with the most directly comparable GAAP financial
measure. Adjusted EBITDA is defined as net income (loss), plus
interest expense, other income (expense), foreign currency
transaction loss, provision for income taxes, depreciation and
amortization, stock-based compensation, gain on sale of
discontinued operations, and other potential adjustments that may
arise. Set forth below is a reconciliation of Adjusted EBITDA to
net income (loss):
|
|
Quarter Ended June 30,
|
|
|
2023
|
2022
|
Change
|
% Change
|
Net Income (loss)
|
$ 375,746
|
$
(438,267)
|
$ 814,013
|
185.7 %
|
Add
(deduct):
|
|
|
|
|
|
Other income
(expense)
|
(120,522)
|
(6,377)
|
(114,145)
|
NM
|
|
Foreign currency
translation loss
|
(37,743)
|
91,279
|
(129,022)
|
-141.3 %
|
|
Provision for income
taxes
|
59
|
1,030
|
(971)
|
-94.3 %
|
|
Depreciation and
amortization
|
22,163
|
5,507
|
16,656
|
302.5 %
|
|
Stock-based
compensation
|
585,384
|
225,501
|
359,883
|
159.6 %
|
Adjusted
EBITDA
|
$ 825,087
|
$
(121,327)
|
$ 946,414
|
NM
|
|
|
Twelve Months Ended June 30,
|
|
|
2023
|
2022
|
Change
|
% Change
|
Net Income (loss)
|
$
571,623
|
$
(1,632,384)
|
$
2,204,006
|
135.0 %
|
Add
(deduct):
|
|
|
-
|
|
|
Other income
(expense)
|
(338,617)
|
(7,154)
|
(331,463)
|
NM
|
|
Foreign currency
translation loss
|
(121,953)
|
143,898
|
(265,851)
|
-184.7 %
|
|
Provision for income
taxes
|
5,602
|
7,622
|
(2,020)
|
-26.5 %
|
|
Depreciation and
amortization
|
52,649
|
17,651
|
34,998
|
198.3 %
|
|
Stock-based
compensation
|
1,849,906
|
1,096,384
|
753,522
|
68.7 %
|
Adjusted
EBITDA
|
$
2,019,210
|
$ (373,983)
|
$
2,393,192
|
NM
|
About Research Solutions
Research Solutions, Inc. (NASDAQ: RSSS) provides cloud-based
technologies to streamline the process of obtaining, managing, and
creating intellectual property. Founded in 2006 as Reprints Desk,
the company was a pioneer in developing solutions to serve
researchers. Today, more than 70 percent of the top pharmaceutical
companies, prestigious universities, and emerging businesses rely
on Article Galaxy, the company's SaaS research platform, to
streamline access to the latest scientific research and data with
24/7 customer support. For more information and details, please
visit www.researchsolutions.com and www.reprintsdesk.com
Important Cautions Regarding Forward-Looking
Statements
Certain statements in this press release may contain
"forward-looking statements" regarding future events and our future
results. All statements other than statements of historical facts
are statements that could be deemed to be forward-looking
statements. These statements are based on current expectations,
estimates, forecasts, and projections about the markets in which we
operate and the beliefs and assumptions of our management. Words
such as "expects," "anticipates," "targets," "goals," "projects",
"intends," "plans," "believes," "seeks," "estimates," "endeavors,"
"strives," "may," or variations of such words, and similar
expressions are intended to identify such forward-looking
statements. Readers are cautioned that these forward-looking
statements are subject to a number of risks, uncertainties and
assumptions that are difficult to predict, estimate or verify.
Therefore, actual results may differ materially and adversely from
those expressed in any forward-looking statements. Such risks and
uncertainties include those factors described in the Company's most
recent annual report on Form 10-K, as such may be amended or
supplemented by subsequent quarterly reports on Form 10-Q, or other
reports filed with the Securities and Exchange Commission. Examples
of forward-looking statements in this release include statements
regarding improved product offerings and cross-selling
opportunities, , management's optimistic outlook for fiscal
2024, and the Company's prospects for growth. Readers are cautioned
not to place undue reliance on these forward-looking statements.
The forward-looking statements are made only as of the date hereof,
and the Company undertakes no obligation to publicly release the
result of any revisions to these forward-looking statements. For
more information, please refer to the Company's filings with the
Securities and Exchange Commission.
Research Solutions, Inc. and Subsidiaries
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
2023
|
|
2022
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
13,545,333
|
|
$
|
10,603,175
|
Accounts receivable,
net of allowance of $85,015 and $94,144, respectively
|
|
|
6,153,063
|
|
|
5,251,545
|
Prepaid expenses and
other current assets
|
|
|
400,340
|
|
|
276,026
|
Prepaid
royalties
|
|
|
1,202,678
|
|
|
846,652
|
Total current
assets
|
|
|
21,301,414
|
|
|
16,977,398
|
|
|
|
|
|
|
|
Other assets:
|
|
|
|
|
|
|
Property and equipment,
net of accumulated depreciation of $881,908
and $840,996, respectively
|
|
|
70,193
|
|
|
47,985
|
Intangible assets, net
of accumulated amortization of $747,355 and $723,036,
respectively
|
|
|
462,068
|
|
|
—
|
Deposits and other
assets
|
|
|
1,052
|
|
|
893
|
Total assets
|
|
$
|
21,834,727
|
|
$
|
17,026,276
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
8,079,516
|
|
$
|
6,604,032
|
Deferred
revenue
|
|
|
6,424,724
|
|
|
5,538,526
|
Total current
liabilities
|
|
|
14,504,240
|
|
|
12,142,558
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
Preferred stock; $0.001
par value; 20,000,000 shares authorized; no shares issued
and outstanding
|
|
|
—
|
|
|
—
|
Common stock; $0.001
par value; 100,000,000 shares authorized; 29,487,508 and
27,075,648 shares issued and outstanding,
respectively
|
|
|
29,487
|
|
|
27,076
|
Additional paid-in
capital
|
|
|
29,941,873
|
|
|
28,072,855
|
Accumulated
deficit
|
|
|
(22,522,649)
|
|
|
(23,094,272)
|
Accumulated other
comprehensive loss
|
|
|
(118,224)
|
|
|
(121,941)
|
Total stockholders'
equity
|
|
|
7,330,487
|
|
|
4,883,718
|
Total liabilities and stockholders'
equity
|
|
$
|
21,834,727
|
|
$
|
17,026,276
|
Research Solutions, Inc. and Subsidiaries
Consolidated Statements of Operations and Other Comprehensive
Loss
|
|
|
|
|
|
|
|
|
|
Years Ended
|
|
|
June 30,
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
Platforms
|
|
$
|
8,683,246
|
|
$
|
6,787,772
|
Transactions
|
|
|
29,020,206
|
|
|
26,146,380
|
Total
revenue
|
|
|
37,703,452
|
|
|
32,934,152
|
|
|
|
|
|
|
|
Cost of
revenue:
|
|
|
|
|
|
|
Platforms
|
|
|
1,027,286
|
|
|
936,589
|
Transactions
|
|
|
21,975,275
|
|
|
19,977,889
|
Total cost of
revenue
|
|
|
23,002,561
|
|
|
20,914,478
|
Gross profit
|
|
|
14,700,891
|
|
|
12,019,674
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
14,409,634
|
|
|
13,633,939
|
Depreciation and
amortization
|
|
|
52,649
|
|
|
17,651
|
Total operating
expenses
|
|
|
14,462,283
|
|
|
13,651,590
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
238,608
|
|
|
(1,631,916)
|
|
|
|
|
|
|
|
Other income
|
|
|
338,617
|
|
|
7,154
|
|
|
|
|
|
|
|
Income (loss) from
operations before provision for income taxes
|
|
|
577,225
|
|
|
(1,624,762)
|
Provision for income
taxes
|
|
|
(5,602)
|
|
|
(7,622)
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
571,623
|
|
|
(1,632,384)
|
|
|
|
|
|
|
|
Other comprehensive income
(loss):
|
|
|
|
|
|
|
Foreign currency
translation
|
|
|
3,717
|
|
|
(2,364)
|
Comprehensive income
(loss)
|
|
$
|
575,340
|
|
$
|
(1,634,748)
|
|
|
|
|
|
|
|
Basic income (loss) per
common share:
|
|
|
|
|
|
|
Net income (loss) per
share
|
|
$
|
0.02
|
|
$
|
(0.06)
|
Weighted average
common shares outstanding
|
|
|
26,860,761
|
|
|
26,422,295
|
|
|
|
|
|
|
|
Diluted income (loss)
per common share:
|
|
|
|
|
|
|
Net income (loss) per
share
|
|
$
|
0.02
|
|
$
|
(0.06)
|
Weighted average
common shares outstanding
|
|
|
29,139,759
|
|
|
26,422,295
|
Research Solutions, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
Years Ended
|
|
|
June 30,
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
Cash flow from operating
activities:
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
571,623
|
|
$
|
(1,632,384)
|
Adjustment to reconcile
net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
52,649
|
|
|
17,651
|
Fair value of vested
stock options
|
|
|
375,189
|
|
|
470,615
|
Fair value of vested
restricted common stock
|
|
|
1,418,718
|
|
|
557,496
|
Fair value of vested
unrestricted common stock
|
|
|
68,272
|
|
|
—
|
Modification cost of
stock options
|
|
|
56,000
|
|
|
—
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(901,518)
|
|
|
(534,092)
|
Prepaid expenses and
other current assets
|
|
|
(124,314)
|
|
|
(5,774)
|
Prepaid
royalties
|
|
|
(356,026)
|
|
|
58,269
|
Accounts payable and
accrued expenses
|
|
|
1,337,056
|
|
|
(83,156)
|
Deferred
revenue
|
|
|
886,198
|
|
|
734,175
|
Net cash provided by
(used in) operating activities
|
|
|
3,383,847
|
|
|
(417,200)
|
|
|
|
|
|
|
|
Cash flow from investing
activities:
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(47,209)
|
|
|
(44,288)
|
Payment for
non-refundable deposit for asset acquisition
|
|
|
(297,450)
|
|
|
—
|
Net cash used in
investing activities
|
|
|
(344,659)
|
|
|
(44,288)
|
|
|
|
|
|
|
|
Cash flow from financing
activities:
|
|
|
|
|
|
|
Proceeds from the
exercise of stock options
|
|
|
57,500
|
|
|
97,688
|
Proceeds from the
exercise of warrants
|
|
|
—
|
|
|
59,500
|
Common stock
repurchase
|
|
|
(104,250)
|
|
|
(93,918)
|
Payment of contingent
acquisition consideration
|
|
|
(50,509)
|
|
|
—
|
Net cash provided by
(used in) financing activities
|
|
|
(97,259)
|
|
|
63,270
|
|
|
|
|
|
|
|
Effect of exchange rate
changes
|
|
|
229
|
|
|
(2,944)
|
Net increase (decrease)
in cash and cash equivalents
|
|
|
2,942,158
|
|
|
(401,162)
|
Cash and cash
equivalents, beginning of period
|
|
|
10,603,175
|
|
|
11,004,337
|
Cash and cash
equivalents, end of period
|
|
$
|
13,545,333
|
|
$
|
10,603,175
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow
information:
|
|
|
|
|
|
|
Cash paid for income
taxes
|
|
$
|
5,602
|
|
$
|
7,622
|
|
|
|
|
|
|
|
Non-cash investing and financing
activities:
|
|
|
|
|
|
|
Contingent
consideration accrual on asset acquisition
|
|
$
|
138,428
|
|
$
|
—
|
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SOURCE Research Solutions, Inc.