One Stop Systems Reports Q2 2024 Results
One Stop Systems (Nasdaq: OSS) reported Q2 2024 results with revenue of $13.2 million, a sequential increase but a 23.3% decline year-over-year. The decline was mainly due to the loss of a former media customer and a $1.3 million decrease in Bressner revenue from European market softness. Despite this, OSS segment orders reached $7.5 million, outpacing quarterly revenue for the second straight quarter. Gross margin dropped to 25.2% from 27.9%. Operating expenses fell by 31.9% to $5.6 million. Net loss was $2.3 million ($0.11 per share), similar to a $2.4 million ($0.12 per share) loss last year. OSS forecasts consolidated Q3 2024 revenue of $13.3 million and a 15% year-over-year increase in OSS segment revenue to $6.3 million.
One Stop Systems (Nasdaq: OSS) ha riportato i risultati del secondo trimestre 2024 con un fatturato di 13,2 milioni di dollari, in aumento rispetto al trimestre precedente ma con una diminuzione del 23,3% rispetto all'anno precedente. La diminuzione è stata principalmente causata dalla perdita di un precedente cliente media e da una diminuzione di 1,3 milioni di dollari nei ricavi di Bressner a causa della debolezza del mercato europeo. Nonostante ciò, gli ordini del segmento OSS hanno raggiunto i 7,5 milioni di dollari, superando il fatturato trimestrale per il secondo trimestre consecutivo. Il margine lordo è sceso al 25,2% dal 27,9%. Le spese operative sono diminuite del 31,9% a 5,6 milioni di dollari. La perdita netta è stata di 2,3 milioni di dollari (0,11 dollari per azione), simile a una perdita di 2,4 milioni di dollari (0,12 dollari per azione) dell'anno scorso. OSS prevede un fatturato consolidato per il terzo trimestre 2024 di 13,3 milioni di dollari e un aumento del 15% anno su anno nei ricavi del segmento OSS a 6,3 milioni di dollari.
One Stop Systems (Nasdaq: OSS) reportó resultados del segundo trimestre de 2024 con ingresos de 13.2 millones de dólares, un aumento secuencial, pero una disminución del 23.3% en comparación con el año anterior. La disminución se debió principalmente a la pérdida de un antiguo cliente de medios y a una caída de 1.3 millones de dólares en los ingresos de Bressner debido a la debilidad del mercado europeo. A pesar de esto, los pedidos del segmento OSS alcanzaron los 7.5 millones de dólares, superando los ingresos trimestrales por segundo trimestre consecutivo. El margen bruto cayó al 25.2% del 27.9%. Los gastos operativos disminuyeron un 31.9% a 5.6 millones de dólares. La pérdida neta fue de 2.3 millones de dólares (0.11 dólares por acción), similar a una pérdida de 2.4 millones de dólares (0.12 dólares por acción) del año pasado. OSS pronostica ingresos consolidados para el tercer trimestre de 2024 de 13.3 millones de dólares y un aumento del 15% interanual en los ingresos del segmento OSS a 6.3 millones de dólares.
One Stop Systems (Nasdaq: OSS)는 2024년 2분기 실적을 보고하며 매출액 1,320만 달러를 기록했으며, 이는 이전 분기 대비 증가했지만 전년도 대비 23.3% 감소한 수치입니다. 감소의 주된 원인은 이전 미디어 고객의 손실과 유럽 시장의 부진으로 인한 Bressner의 매출이 130만 달러 감소했기 때문입니다. 그럼에도 불구하고 OSS 세그먼트의 주문은 750만 달러에 달하여 두 분기 연속 분기 매출을 초과했습니다. 총 마진은 27.9%에서 25.2%로 감소했습니다. 운영 비용은 31.9% 감소하여 560만 달러가 되었습니다. 순손실은 230만 달러(주당 0.11달러)로, 작년의 240만 달러(주당 0.12달러) 손실과 유사합니다. OSS는 2024년 3분기 매출을 1,330만 달러로 예상하며, OSS 세그먼트의 매출은 전년 대비 15% 증가하여 630만 달러에 이를 것으로 보입니다.
One Stop Systems (Nasdaq: OSS) a annoncé les résultats du deuxième trimestre 2024 avec un chiffre d'affaires de 13,2 millions de dollars, ce qui représente une augmentation séquentielle mais une diminution de 23,3 % par rapport à l'année précédente. Cette baisse est principalement due à la perte d'un ancien client médiatique et à une diminution de 1,3 million de dollars des revenus de Bressner en raison de la faiblesse du marché européen. Malgré cela, les commandes du segment OSS ont atteint 7,5 millions de dollars, dépassant les revenus trimestriels pour le deuxième trimestre consécutif. La marge brute est tombée à 25,2 % contre 27,9 %. Les dépenses d'exploitation ont chuté de 31,9 % pour atteindre 5,6 millions de dollars. La perte nette s'est élevée à 2,3 millions de dollars (0,11 dollar par action), similaire à une perte de 2,4 millions de dollars (0,12 dollar par action) l'année dernière. OSS prévoit un chiffre d'affaires consolidé pour le troisième trimestre 2024 de 13,3 millions de dollars et une augmentation de 15 % des revenus du segment OSS par rapport à l'année précédente, atteignant 6,3 millions de dollars.
One Stop Systems (Nasdaq: OSS) hat die Ergebnisse des 2. Quartals 2024 bekannt gegeben, mit Einnahmen von 13,2 Millionen Dollar, was einen sequenziellen Anstieg darstellt, aber einen Rückgang von 23,3 % im Vergleich zum Vorjahr. Der Rückgang war hauptsächlich auf den Verlust eines ehemaligen Medienkunden und einen Rückgang der Einnahmen von Bressner um 1,3 Millionen Dollar aufgrund der Schwäche des europäischen Marktes zurückzuführen. Trotz dessen erreichten die Bestellungen des OSS-Segments 7,5 Millionen Dollar und übertrafen damit die quartalsmäßigen Einnahmen zum zweiten Mal in Folge. Die Bruttomarge fiel von 27,9 % auf 25,2 %. Die Betriebskosten sanken um 31,9 % auf 5,6 Millionen Dollar. Der Nettoverlust betrug 2,3 Millionen Dollar (0,11 Dollar pro Aktie), ähnlich wie der Nettoverlust von 2,4 Millionen Dollar (0,12 Dollar pro Aktie) im letzten Jahr. OSS prognostiziert einen konsolidierten Umsatz für das 3. Quartal 2024 von 13,3 Millionen Dollar und einen Anstieg der Einnahmen des OSS-Segments um 15 % im Vergleich zum Vorjahr auf 6,3 Millionen Dollar.
- OSS segment orders of $7.5 million outpaced quarterly revenue for the second consecutive quarter.
- Sequential increase in customer-funded development revenue.
- Operating expenses decreased by 31.9% to $5.6 million.
- Management expects a 15% year-over-year increase in OSS segment revenue for Q3 2024.
- Q2 2024 revenue decreased by 23.3% year-over-year to $13.2 million.
- Gross margin percentage dropped to 25.2% from 27.9%.
- OSS segment gross margin declined by 4.3 percentage points.
- Net loss of $2.3 million, similar to last year's $2.4 million loss.
- Non-GAAP net loss of $1.8 million, compared to a non-GAAP net loss of $84,000 last year.
- Adjusted EBITDA was a loss of $1.3 million, compared to adjusted EBITDA of $520,000 last year.
Insights
OSS's Q2 2024 results show mixed signals. While the $13.2 million revenue represents a sequential increase, it's a
- OSS segment orders outpaced revenue for the second consecutive quarter
- Customer-funded development revenue increased, potentially leading to future growth
- Excluding the former media customer, OSS segment grew
8.3% year-over-year
The gross margin of
OSS's market position in rugged Enterprise Class compute for AI and ML at the edge presents both opportunities and challenges. The increase in customer-funded development revenue is a positive sign, indicating growing market interest in OSS's specialized solutions. However, the European market softness affecting Bressner's performance is a concern.
The company's focus on strategic transformation appears to be gaining traction, with expected
While the overall market for edge AI computing is growing, OSS needs to navigate economic uncertainties and competitive pressures to capitalize on this trend effectively.
Q2 2024 revenues of
OSS segment orders of
outpacing quarterly revenue for the second consecutive quarter
Management expects continued sequential growth with consolidated Q3 2024 revenue of
ESCONDIDO, Calif., Aug. 08, 2024 (GLOBE NEWSWIRE) -- One Stop Systems, Inc. ("OSS" or the "Company") (Nasdaq: OSS), a leader in rugged Enterprise Class compute for artificial intelligence (AI), machine learning (ML) and sensor processing at the edge, reported results for the second quarter ended June 30, 2024. Second quarter and six-month comparisons are to the same year-ago periods unless otherwise noted.
“Our second-quarter performance demonstrates the successful execution of our plan, as consolidated revenue increased sequentially to
“I am encouraged that our transformational strategies are tracking to plan. As a result, we expect continued sequential revenue growth in the third quarter, led by an expected
2024 Second-Quarter Financial Summary
Consolidated revenue was
The following table sets forth net revenue by product category for the three months ended June 30, 2024, and June 30, 2023, by segment:
| Three Months Ended | ||||||||||||||
| Entity: | June 30, 2024 | % of Net Revenue | June 30, 2023 | % of Net Revenue | % Change | |||||||||
| OSS | $ | 5,522,034 | 41.8 | % | $ | 8,278,096 | 48.1 | % | -33.3 | % | ||||
| Bressner | 7,679,296 | 58.2 | % | 8,933,436 | 51.9 | % | -14.0 | % | ||||||
| Total net revenue | $ | 13,201,330 | 100.0 | % | $ | 17,211,532 | 100.0 | % | -23.3 | % | ||||
Gross margin percentage was
Total operating expenses decreased
OSS reported a net loss of
Adjusted EBITDA, a non-GAAP metric, was a loss of
As of June 30, 2024, OSS reported cash and short-term investments of
2024 First-Half Financial Summary
Consolidated revenue was
The following table sets forth net revenue by product category for the six months ended June 30, 2024, and June 30, 2023, by segment:
| Six Months Ended | ||||||||||||||
Entity: | June 30, 2024 | % of Net Revenue | June 30, 2023 | % of Net Revenue | % Change | |||||||||
| OSS | $ | 11,055,906 | 42.8 | % | $ | 16,908,682 | 49.7 | % | -34.6 | % | ||||
| Bressner | 14,797,210 | 57.2 | % | 17,084,744 | 50.3 | % | -13.4 | % | ||||||
| Total net revenue | $ | 25,853,116 | 100.0 | % | $ | 33,993,426 | 100.0 | % | -23.9 | % | ||||
Gross margin percentage was
Total operating expenses decreased
OSS reported a net loss of
Adjusted EBITDA, a non-GAAP metric, was a loss of
Outlook
OSS anticipates consolidated revenue of approximately
While uncertain economic conditions and softness in Europe may negatively impact the Company’s consolidated second-half performance, management believes the Company’s leading Enterprise Class compute solutions, strong balance sheet, and committed team are well positioned to take advantage of positive fundamentals across its global markets and create long-term value for the Company’s shareholders.
Conference Call
OSS will hold a conference call to discuss its results for the second quarter of 2024 followed by a question-and-answer period.
Date: Thursday, August 8, 2024
Time: 5:00 p.m. ET (2:00 p.m. PT)
Toll-free dial-in: 1-800-717-1738
International dial-in: 1-646-307-1865
Conference ID: 29484 (required for entry)
Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1672517&tp_key=fda66a9cb4
A replay of the call will be available after 8:00 p.m. ET on August 8, 2024, through August 22, 2024.
Toll-free replay: 1-844-512-2921
International replay: 1-412-317-6671
Passcode: 1129484
About One Stop Systems
One Stop Systems, Inc. (Nasdaq: OSS) is a leader in AI enabled solutions for the demanding ‘edge’. OSS designs and manufactures Enterprise Class 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 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 enabled solutions 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 X, YouTube, and LinkedIn.
Non-GAAP Financial Measures
We believe 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, we believe that providing a non-GAAP financial measure that excludes non-cash and non-recurring expenses allows for meaningful comparisons between our core business operating results and those of other companies, as well as providing us with an important tool for financial and operational decision making and for evaluating our own core business operating results over different periods of time.
Our adjusted EBITDA measure may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. Our 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. We do not consider adjusted EBITDA to be a substitute for, or superior to, the information provided by GAAP financial results.
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net loss | $ | (2,344,545 | ) | $ | (2,399,496 | ) | $ | (3,684,167 | ) | $ | (2,800,008 | ) | |||
| Depreciation | 273,731 | 254,447 | 563,278 | 510,912 | |||||||||||
| Amortization of right-of-use assets | 106,633 | 48,824 | 206,771 | 167,354 | |||||||||||
| Stock-based compensation expense | 557,198 | 898,008 | 965,938 | 1,372,217 | |||||||||||
| Interest expense | 19,103 | 23,939 | 54,445 | 56,644 | |||||||||||
| Interest income | (118,619 | ) | (104,785 | ) | (260,344 | ) | (215,051 | ) | |||||||
| Impairment of goodwill | - | 2,700,000 | - | 2,700,000 | |||||||||||
| Employee retention credit (ERC) | - | (1,298,241 | ) | - | (1,298,241 | ) | |||||||||
| Provision for income taxes | 211,027 | 396,863 | 402,296 | 658,365 | |||||||||||
| Adjusted EBITDA | $ | (1,295,472 | ) | $ | 519,559 | $ | (1,751,783 | ) | $ | 1,152,192 | |||||
Adjusted EPS excludes the impact of certain items, and therefore, has not been calculated in accordance with GAAP. We believe that exclusion of certain selected items assists in providing a more complete understanding of our underlying results and trends and allows for comparability with our peer company index and industry. We use this measure along with the corresponding GAAP financial measures to manage our business and to evaluate our 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. We expect 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 our 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 Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net loss | $ | (2,344,545 | ) | $ | (2,399,496 | ) | $ | (3,684,167 | ) | $ | (2,800,008 | ) | |||
| Amortization of intangibles | - | 15,808 | - | 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 | 557,198 | 898,008 | 965,938 | 1,372,217 | |||||||||||
| Non-GAAP net (loss) income | $ | (1,787,347 | ) | $ | (83,921 | ) | $ | (2,718,229 | ) | $ | 5,584 | ||||
| Non-GAAP net (loss) income per share: | |||||||||||||||
| Basic | $ | (0.09 | ) | $ | (0.00 | ) | $ | (0.13 | ) | $ | 0.00 | ||||
| Diluted | $ | (0.09 | ) | $ | (0.00 | ) | $ | (0.13 | ) | $ | 0.00 | ||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 20,931,798 | 20,397,741 | 20,820,516 | 20,325,029 | |||||||||||
| Diluted | 20,931,798 | 20,397,741 | 20,820,516 | 20,841,127 | |||||||||||
Forward-Looking Statements
One 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. 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:
Robert Kalebaugh
One Stop Systems, Inc.
Tel (858) 518-6154
Email contact
Investor Relations:
Andrew Berger
Managing Director
SM Berger & Company, Inc.
Tel (216) 464-6400
Email contact
| ONE STOP SYSTEMS, INC. (OSS) CONSOLIDATED BALANCE SHEETS | |||||||
| Unaudited | Audited | ||||||
| June 30, | December 31, | ||||||
| 2024 | 2023 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 6,751,771 | $ | 4,048,948 | |||
| Short-term investments | 5,019,230 | 7,771,820 | |||||
| Accounts receivable, net | 8,427,383 | 8,318,247 | |||||
| Inventories, net | 20,147,118 | 21,694,748 | |||||
| Prepaid expenses and other current assets | 1,474,671 | 611,066 | |||||
| Total current assets | 41,820,173 | 42,444,829 | |||||
| Property and equipment, net | 1,999,587 | 2,370,224 | |||||
| Operating lease right-of use assets | 1,709,255 | 1,922,784 | |||||
| Deposits and other | 38,093 | 38,093 | |||||
| Deferred tax asset, net | 351,517 | - | |||||
| Goodwill | 1,489,722 | 1,489,722 | |||||
| Total Assets | $ | 47,408,347 | $ | 48,265,652 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 2,856,007 | $ | 1,201,781 | |||
| Accrued expenses and other liabilities | 4,881,289 | 3,202,519 | |||||
| Current portion of operating lease obligation | 370,262 | 390,926 | |||||
| Current portion of notes payable | 1,139,141 | 2,077,895 | |||||
| Total current liabilities | 9,246,699 | 6,873,121 | |||||
| Deferred tax liability, net | - | 44,673 | |||||
| Operating lease obligation, net of current portion | 1,615,738 | 1,765,536 | |||||
| Total liabilities | 10,862,437 | 8,683,330 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity | |||||||
| Common stock, 20,997,383 and 20,661,341 shares issued and outstanding, respectively | 2,099 | 2,066 | |||||
| Additional paid-in capital | 48,159,630 | 47,323,673 | |||||
| Accumulated other comprehensive income | 487,075 | 675,310 | |||||
| Accumulated deficit | (12,102,894 | ) | (8,418,727 | ) | |||
| Total stockholders’ equity | 36,545,910 | 39,582,322 | |||||
| Total Liabilities and Stockholders' Equity | $ | 47,408,347 | $ | 48,265,652 | |||
| ONE STOP SYSTEMS, INC. (OSS) UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue: | |||||||||||||||
| Product | $ | 11,753,124 | $ | 16,824,119 | $ | 24,040,170 | $ | 33,212,803 | |||||||
| Customer funded development | 1,448,206 | 387,413 | 1,812,946 | 780,623 | |||||||||||
| 13,201,330 | 17,211,532 | 25,853,116 | 33,993,426 | ||||||||||||
| Cost of revenue: | |||||||||||||||
| Product | 8,703,324 | 12,187,366 | 17,522,080 | 23,603,905 | |||||||||||
| Customer funded development | 1,164,743 | 226,228 | 1,274,480 | 520,821 | |||||||||||
| 9,868,067 | 12,413,594 | 18,796,560 | 24,124,726 | ||||||||||||
| Gross profit | 3,333,263 | 4,797,938 | 7,056,556 | 9,868,700 | |||||||||||
| Operating expenses: | |||||||||||||||
| General and administrative | 2,407,398 | 3,072,880 | 4,501,715 | 5,357,981 | |||||||||||
| Impairment of goodwill | - | 2,700,000 | - | 2,700,000 | |||||||||||
| Marketing and selling | 2,255,128 | 1,483,965 | 4,175,241 | 3,270,646 | |||||||||||
| Research and development | 925,602 | 954,650 | 1,896,479 | 2,149,978 | |||||||||||
| Total operating expenses | 5,588,128 | 8,211,495 | 10,573,435 | 13,478,605 | |||||||||||
| Loss from operations | (2,254,865 | ) | (3,413,557 | ) | (3,516,879 | ) | (3,609,905 | ) | |||||||
| Other income (expense), net: | |||||||||||||||
| Interest income | 118,619 | 104,785 | 260,344 | 215,051 | |||||||||||
| Interest expense | (19,103 | ) | (23,939 | ) | (54,445 | ) | (56,644 | ) | |||||||
| Employee retention credit (ERC) | - | 1,298,241 | - | 1,298,241 | |||||||||||
| Other income (expense), net | 21,831 | 31,837 | 29,109 | 11,614 | |||||||||||
| Total other income, net | 121,347 | 1,410,924 | 235,008 | 1,468,262 | |||||||||||
| Loss before income taxes | (2,133,518 | ) | (2,002,633 | ) | (3,281,871 | ) | (2,141,643 | ) | |||||||
| Provision for income taxes | 211,027 | 396,863 | 402,296 | 658,365 | |||||||||||
| Net loss | $ | (2,344,545 | ) | $ | (2,399,496 | ) | $ | (3,684,167 | ) | $ | (2,800,008 | ) | |||
| Net loss per share: | |||||||||||||||
| Basic | $ | (0.11 | ) | $ | (0.12 | ) | $ | (0.18 | ) | $ | (0.14 | ) | |||
| Diluted | $ | (0.11 | ) | $ | (0.12 | ) | $ | (0.18 | ) | $ | (0.14 | ) | |||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 20,931,798 | 20,397,741 | 20,820,516 | 20,325,029 | |||||||||||
| Diluted | 20,931,798 | 20,397,741 | 20,820,516 | 20,325,029 | |||||||||||
| ONE STOP SYSTEMS, INC. (OSS) UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| For the Six Months Ended June 30, | |||||||
| 2024 | 2023 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (3,684,167 | ) | $ | (2,800,008 | ) | |
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
| Deferred income taxes | (187,845 | ) | - | ||||
| Loss (gain) on disposal of property and equipment | 354 | (69,916 | ) | ||||
| Provision for bad debt | - | 38,653 | |||||
| Impairment of goodwill | - | 2,700,000 | |||||
| Warranty reserves | (30,000 | ) | (8,216 | ) | |||
| Amortization of intangibles | - | 31,616 | |||||
| Depreciation | 563,278 | 510,912 | |||||
| Amortization of right-of-use assets | 206,771 | 167,354 | |||||
| Inventory reserves | 744,845 | 386,998 | |||||
| Stock-based compensation expense | 965,938 | 1,372,217 | |||||
| Employee retention credit | - | (1,298,241 | ) | ||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (220,525 | ) | 2,526,139 | ||||
| Inventories | 541,323 | (918,495 | ) | ||||
| Prepaid expenses and other current assets | (867,319 | ) | (711,567 | ) | |||
| Accounts payable | 1,683,944 | (1,806,057 | ) | ||||
| Accrued expenses and other liabilities | 1,673,804 | 2,133,706 | |||||
| Operating lease liabilities | (163,659 | ) | (206,161 | ) | |||
| Net cash provided by operating activities | 1,226,742 | 2,048,934 | |||||
| Cash flows from investing activities: | |||||||
| Redemption of short-term investment grade securities | 2,745,180 | 802,945 | |||||
| Purchases of property and equipment, including capitalization of labor costs for test equipment and ERP | (204,094 | ) | (299,891 | ) | |||
| Net cash provided by investing activities | 2,541,086 | 503,054 | |||||
| Cash flows from financing activities: | |||||||
| Proceeds from exercise of stock options and warrants | 219,348 | 51,049 | |||||
| Payment of payroll taxes on net issuance of employee stock options | (349,296 | ) | (532,600 | ) | |||
| Repayments on notes payable | (884,892 | ) | (403,115 | ) | |||
| Employee retention credit benefit | - | 1,298,241 | |||||
| Net cash (used in) provided by financing activities | (1,014,840 | ) | 413,575 | ||||
| Net change in cash and cash equivalents | 2,752,988 | 2,965,563 | |||||
| Effect of exchange rates on cash | (50,165 | ) | 22,558 | ||||
| Cash and cash equivalents, beginning of period | 4,048,948 | 3,112,196 | |||||
| Cash and cash equivalents, end of period | $ | 6,751,771 | $ | 6,100,317 | |||
FAQ
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