Research Solutions Reports Fiscal Second Quarter 2025 Results
Research Solutions (NASDAQ: RSSS) reported fiscal Q2 2025 results with significant growth metrics. Total revenue increased 15.5% to $11.9 million, driven by a 47% rise in platform revenue to $4.6 million. Annual Recurring Revenue (ARR) grew 23% to $19.1 million, including $12.7 million in B2B and $6.4 million in B2C recurring revenue.
The company achieved its best organic performance with 61 net new B2B platform deployments and recorded a nearly $1 million sequential increase in B2C recurring revenue. Gross profit improved 30% with margins expanding 540 basis points to 48.9%. However, the company reported a net loss of $2.0 million ($0.07 per share), primarily due to a $2.4 million charge related to Scite's contingent earnout liability. Adjusted EBITDA reached $963,000, up from $318,000 in the prior year, with trailing twelve-month Adjusted EBITDA of $4.6 million representing a 9.5% margin.
Research Solutions (NASDAQ: RSSS) ha riportato risultati significativi per il secondo trimestre fiscale del 2025, con metriche di crescita notevoli. I ricavi totali sono aumentati del 15,5%, raggiungendo 11,9 milioni di dollari, grazie a un incremento del 47% dei ricavi della piattaforma, che ammontano a 4,6 milioni di dollari. I Ricavi Ricorrenti Annuali (ARR) sono cresciuti del 23%, arrivando a 19,1 milioni di dollari, di cui 12,7 milioni derivano da B2B e 6,4 milioni da ricavi ricorrenti B2C.
L'azienda ha ottenuto la sua migliore performance organica con 61 nuove implementazioni di piattaforme B2B e ha registrato un aumento sequenziale di quasi 1 milione di dollari nei ricavi ricorrenti B2C. Il profitto lordo è migliorato del 30%, con margini in espansione di 540 punti base, raggiungendo il 48,9%. Tuttavia, l'azienda ha riportato una perdita netta di 2,0 milioni di dollari (0,07 dollari per azione), principalmente a causa di un onere di 2,4 milioni di dollari relativo alla responsabilità per earnout contingente di Scite. L'EBITDA rettificato ha raggiunto 963.000 dollari, rispetto ai 318.000 dollari dell'anno precedente, con un EBITDA rettificato degli ultimi dodici mesi di 4,6 milioni di dollari, rappresentando un margine del 9,5%.
Research Solutions (NASDAQ: RSSS) reportó resultados significativos para el segundo trimestre fiscal de 2025, con métricas de crecimiento notables. Los ingresos totales aumentaron un 15,5%, alcanzando $11.9 millones, impulsados por un aumento del 47% en los ingresos de la plataforma, que suman $4.6 millones. Los Ingresos Recurrents Anuales (ARR) crecieron un 23%, alcanzando $19.1 millones, de los cuales $12.7 millones provienen de B2B y $6.4 millones de ingresos recurrentes B2C.
La empresa logró su mejor rendimiento orgánico con 61 nuevas implementaciones de plataformas B2B y registró un aumento secuencial de casi $1 millón en ingresos recurrentes B2C. El beneficio bruto mejoró un 30%, con márgenes que se expandieron 540 puntos base hasta el 48.9%. Sin embargo, la empresa reportó una pérdida neta de $2.0 millones ($0.07 por acción), principalmente debido a un cargo de $2.4 millones relacionado con la responsabilidad de earnout contingente de Scite. El EBITDA ajustado alcanzó $963,000, frente a $318,000 del año anterior, con un EBITDA ajustado de los últimos doce meses de $4.6 millones, representando un margen del 9.5%.
Research Solutions (NASDAQ: RSSS)는 2025 회계 연도 2분기 결과를 발표하며 상당한 성장 지표를 보였습니다. 총 수익은 15.5% 증가하여 $11.9 백만에 달했으며, 플랫폼 수익은 47% 증가하여 $4.6 백만에 이르렀습니다. 연간 반복 수익(ARR)은 23% 성장하여 $19.1 백만에 도달했으며, 이 중 B2B에서 $12.7 백만, B2C 반복 수익에서 $6.4 백만이 포함됩니다.
회사는 61개의 순 신규 B2B 플랫폼 배포로 최고의 유기적 성과를 달성했으며, B2C 반복 수익에서 거의 $1 백만의 순 증가를 기록했습니다. 총 이익은 30% 개선되었고, 마진은 540 베이시스 포인트 확장되어 48.9%에 도달했습니다. 그러나 회사는 Scite의 조건부 수익 연계 책임과 관련된 $2.4 백만의 비용으로 인해 $2.0 백만($0.07 per share)의 순 손실을 보고했습니다. 조정된 EBITDA는 $963,000에 도달했으며, 이는 지난해의 $318,000에서 증가한 수치로, 지난 12개월간의 조정 EBITDA는 $4.6 백만으로 9.5%의 마진을 나타냅니다.
Research Solutions (NASDAQ: RSSS) a annoncé des résultats significatifs pour le deuxième trimestre fiscal de 2025, avec des indicateurs de croissance remarquables. Le chiffre d'affaires total a augmenté de 15,5%, atteignant 11,9 millions de dollars, soutenu par une hausse de 47% des revenus de la plateforme, qui s'élèvent à 4,6 millions de dollars. Les Revenus Répétitifs Annuels (ARR) ont crû de 23% pour atteindre 19,1 millions de dollars, dont 12,7 millions proviennent de B2B et 6,4 millions de revenus récurrents B2C.
L'entreprise a réalisé sa meilleure performance organique avec 61 nouvelles déploiements de plateformes B2B et a enregistré une augmentation séquentielle de près d'un million de dollars dans les revenus récurrents B2C. Le bénéfice brut a augmenté de 30%, avec des marges s'élargissant de 540 points de base pour atteindre 48,9%. Cependant, l'entreprise a enregistré une perte nette de 2,0 millions de dollars (0,07 dollar par action), principalement en raison d'une charge de 2,4 millions de dollars liée à la responsabilité de earnout conditionnelle de Scite. L'EBITDA ajusté a atteint 963 000 dollars, contre 318 000 dollars l'année précédente, avec un EBITDA ajusté des douze derniers mois de 4,6 millions de dollars représentant une marge de 9,5%.
Research Solutions (NASDAQ: RSSS) hat für das zweite Quartal des Geschäftsjahres 2025 signifikante Ergebnisse mit bemerkenswerten Wachstumskennzahlen berichtet. Der Gesamtumsatz stieg um 15,5% auf 11,9 Millionen Dollar, angetrieben durch einen Anstieg der Plattformumsätze um 47% auf 4,6 Millionen Dollar. Die jährlich wiederkehrenden Einnahmen (ARR) wuchsen um 23% auf 19,1 Millionen Dollar, einschließlich 12,7 Millionen Dollar aus B2B und 6,4 Millionen Dollar aus B2C wiederkehrenden Einnahmen.
Das Unternehmen erzielte seine beste organische Leistung mit 61 Netto-Neu-B2B-Plattformbereitstellungen und verzeichnete einen sequenziellen Anstieg von fast 1 Million Dollar bei B2C wiederkehrenden Einnahmen. Der Bruttogewinn verbesserte sich um 30%, wobei die Margen um 540 Basispunkte auf 48,9% anstiegen. Das Unternehmen berichtete jedoch von einem Nettoverlust von 2,0 Millionen Dollar (0,07 Dollar pro Aktie), hauptsächlich aufgrund einer Belastung von 2,4 Millionen Dollar im Zusammenhang mit der bedingten Earnout-Verpflichtung von Scite. Das bereinigte EBITDA erreichte 963.000 Dollar, gegenüber 318.000 Dollar im Vorjahr, wobei das bereinigte EBITDA der letzten zwölf Monate 4,6 Millionen Dollar betrug, was einer Marge von 9,5% entspricht.
- Revenue growth of 15.5% to $11.9 million
- Platform revenue increased 47% to $4.6 million
- ARR grew 23% to $19.1 million
- Gross margin improved 540 basis points to 48.9%
- Record 61 net new B2B platform deployments
- Adjusted EBITDA increased to $963,000 from $318,000
- Operating cash flow of over $1 million, up from $0.3 million
- Net loss of $2.0 million compared to $54,000 loss year-over-year
- $2.4 million charge for Scite earnout liability
- Operating expenses increased 16.8% to $5.7 million
- Transaction customer count decreased to 1,384 from 1,398
Insights
Research Solutions delivered a transformative quarter that showcases its successful pivot toward a high-margin, recurring revenue business model. The
The record 61 net new B2B platform deployments, combined with nearly
The 540 basis point improvement in total gross margin to
The robust cash flow from operations of over
Reports 23 Percent Increase in ARR to
Fiscal Second Quarter 2025 Summary
- Total revenue of
$11.9 million 15.5% increase from the prior-year quarter. - Platform revenue up
47% to$4.6 million . Platform revenue accounted for39% of total revenue as compared to30% in the prior-year quarter. - Annual Recurring Revenue ("ARR") up
23% to$19.1 million , which includes approximately$12.7 million $6.4 million - Gross profit up
30% from the prior-year quarter. Total gross margin improved 540 basis points to48.9% . - Net loss of
$2.0 million $0.07 $54,000 $2.4 million - Adjusted EBITDA of
$963,000 $318,000 $112,000 $4.6 million 9.5% margin. - Cash flow from operations of over
$1 million $0.3 million
"Our second quarter results benefited from the continued recognition of the advantages and savings our products offer within the research process and the conclusion of the election cycle, which removed some near-term economic uncertainty. We experienced strong growth in both B2B and B2C ARR. The 61 net new B2B platform deployments represent our best organic performance ever recorded in a quarter, and we also recorded a nearly
Fiscal Second Quarter 2025 Results
Total revenue was
Platform subscription revenue increased
Transaction revenue was
Total gross margin improved 540 basis points from the prior-year quarter to
Total operating expenses were
Net loss for the second quarter was
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: Thursday, February 13, 2025
Time: 5:00 p.m. ET (2:00 p.m. PT)
Dial-in number: 1-203-518-9848
Conference ID: RESEARCH
The conference call will be broadcast live and available for replay until March 13, 2025 by dialing 1-412-317-6671 and using the replay ID 11157678, and via the investor relations section of the company's website at http://researchsolutions.investorroom.com/.
Fiscal Second Quarter Financial and Operational Summary Tables vs. Prior-Year Quarter | ||||||||||
Quarter Ended December 31, | Six Months Ended December 31, | |||||||||
2024 | 2023 | Change | % Change | 2024 | 2023 | Change | % Change | |||
Revenue: | ||||||||||
Platforms | $ 4,601,257 | $ 3,125,584 | $ 1,475,673 | 47.2 % | $ 8,930,902 | $ 5,725,776 | $ 3,205,126 | 56.0 % | ||
Transactions | $ 7,312,962 | $ 7,188,158 | 124,804 | 1.7 % | $ 15,027,799 | $ 14,648,937 | 378,862 | 2.6 % | ||
Total Revenue | 11,914,219 | 10,313,742 | 1,600,477 | 15.5 % | 23,958,701 | 20,374,713 | 3,583,988 | 17.6 % | ||
Gross Profit: | ||||||||||
Platforms | 3,981,415 | 2,639,399 | 1,342,016 | 50.8 % | 7,763,893 | 4,856,977 | 2,906,916 | 59.9 % | ||
Transactions | 1,839,678 | 1,844,403 | (4,725) | -0.3 % | 3,823,076 | 3,658,391 | 164,685 | 4.5 % | ||
Total Gross Profit | 5,821,093 | 4,483,802 | 1,337,291 | 29.8 % | 11,586,969 | 8,515,368 | 3,071,601 | 36.1 % | ||
Gross profit as a % of revenue: | ||||||||||
Platforms | 86.5 % | 84.4 % | 2.1 % | 86.9 % | 84.8 % | 2.1 % | ||||
Transactions | 25.2 % | 25.7 % | -0.5 % | 25.4 % | 25.0 % | 0.5 % | ||||
Total Gross Profit | 48.9 % | 43.5 % | 5.4 % | 48.4 % | 41.8 % | 6.6 % | ||||
Operating Expenses: | ||||||||||
Sales and marketing | 1,343,087 | 804,927 | 538,160 | 66.9 % | 2,533,494 | 1,489,943 | 1,043,551 | 70.0 % | ||
Technology and product development | 1,506,849 | 1,336,558 | 170,291 | 12.7 % | 2,879,607 | 2,581,137 | 298,470 | 11.6 % | ||
General and administrative | 2,008,201 | 2,023,848 | (15,648) | -0.8 % | 3,938,377 | 4,566,717 | (628,340) | -13.8 % | ||
Depreciation and amortization | 306,233 | 155,749 | 150,484 | 96.6 % | 618,328 | 215,369 | 402,959 | 187.1 % | ||
Stock-based compensation | 534,322 | 596,455 | (62,133) | -10.4 % | 952,311 | 1,188,269 | (235,958) | -19.9 % | ||
Foreign currency translation loss | 29,554 | (13,738) | 43,292 | NM | (74,686) | (7,118) | (67,568) | 949.3 % | ||
Total Operating Expenses | 5,728,246 | 4,903,799 | 824,446 | 16.8 % | 10,847,431 | 10,034,317 | 813,114 | 8.1 % | ||
Income (loss) from operations | 92,847 | (419,997) | 512,844 | 122.1 % | 739,538 | (1,518,949) | 2,258,487 | 148.7 % | ||
Other Income (Expenses): | ||||||||||
Other income | (2,057,887) | 376,426 | (2,434,313) | NM | (1,989,362) | 516,737 | (2,506,099) | NM | ||
Provision for income taxes | (15,194) | (10,057) | (5,137) | 51.1 % | (61,406) | (39,459) | (21,947) | 55.6 % | ||
Total Other Income (Expenses): | (2,073,081) | 366,369 | (2,439,450) | NM | (2,050,768) | 477,278 | (2,528,046) | NM | ||
Net income (loss) | $ (1,980,234) | $ (53,628) | (1,926,606) | NM | $ (1,311,230) | $ (1,041,671) | (269,559) | NM | ||
NM | ||||||||||
Adjusted EBITDA | $ 962,956 | $ 318,469 | $ 644,487 | 202.4 % | $ 2,235,491 | $ (122,429) | $ 2,357,920 | -1926.0 % | ||
Quarter Ended December 31, | Six Months Ended December 31, | |||||||||
2024 | 2023 | Change | % Change | 2024 | 2023 | Change | % Change | |||
Platforms: | ||||||||||
B2B ARR (Annual recurring revenue*): | ||||||||||
Beginning of Period | $ 12,187,834 | $ 11,020,241 | $ 1,167,593 | 10.6 % | $ 12,060,201 | $ 9,444,130 | $ 2,616,071 | 27.7 % | ||
Incremental ARR | 550,422 | 594,507 | (44,085) | -7.4 % | 678,055 | 2,170,618 | (1,492,563) | -68.8 % | ||
End of Period | $ 12,738,256 | $ 11,614,748 | $ 1,123,508 | 9.7 % | $ 12,738,256 | $ 11,614,748 | $ 1,123,508 | 9.7 % | ||
Deployments: | ||||||||||
Beginning of Period | 1,029 | 880 | 149 | 16.9 % | 1,021 | 835 | 186 | 22.3 % | ||
Incremental Deployments | 61 | 62 | (1) | -1.6 % | 69 | 107 | (38) | -35.5 % | ||
End of Period | 1,090 | 942 | 148 | 15.7 % | 1,090 | 942 | 148 | 15.7 % | ||
ASP (Average sales price): | ||||||||||
Beginning of Period | $ 11,844 | $ 12,523 | $ (679) | -5.4 % | $ 11,812 | $ 11,310 | $ 502 | 4.4 % | ||
End of Period | $ 11,686 | $ 12,330 | $ (643) | -5.2 % | $ 11,686 | $ 12,330 | $ (643) | -5.2 % | ||
B2C ARR (Annual recurring revenue*): | ||||||||||
Beginning of Period | $ 5,430,795 | $ - | $ 5,430,795 | NM | $ 5,363,129 | $ - | $ 5,363,129 | NM | ||
Incremental ARR | 940,586 | 3,954,090 | (3,013,504) | NM | 1,008,252 | 3,954,090 | (2,945,838) | NM | ||
End of Period | $ 6,371,381 | $ 3,954,090 | $ 2,417,291 | 61.1 % | $ 6,371,381 | $ 3,954,090 | $ 2,417,291 | 61.1 % | ||
Total ARR (Annualized recurring revenue): | $ 19,109,637 | $ 15,568,838 | $ 3,540,799 | 22.7 % | $ 19,109,637 | $ 15,568,838 | $ 3,540,799 | 22.7 % | ||
Transaction Customers: | ||||||||||
Corporate customers | 1,051 | 1,065 | (14) | -1.3 % | 1,063 | 1,078 | (15) | -1.3 % | ||
Academic customers | 333 | 333 | - | 0.0 % | 325 | 319 | 6 | 1.9 % | ||
Total customers | 1,384 | 1,398 | (14) | -1.0 % | 1,388 | 1,397 | (9) | -0.6 % | ||
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 ("ARR") as the value of contracted Platform subscription recurring revenue normalized to a one-year period. For B2C ARR, this includes the annualized value of monthly subscriptions, meaning their monthly value multiplied by twelve.
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) including any change in fair value of contingent earnout liability, foreign currency transaction loss, provision for income taxes, depreciation and amortization, stock-based compensation, and other potential adjustments that may arise. Set forth below is a reconciliation of Adjusted EBITDA to net income (loss):
Quarter Ended December 31, | Six Months Ended December 31, | ||||||||||
2024 | 2023 | Change | % Change | 2024 | 2023 | Change | % Change | ||||
Net Income (loss) | $ (1,980,234) | $ (53,628) | $ (1,926,606) | NM | $ (1,311,230) | $ (1,041,671) | $ (269,559) | NM | |||
Add (deduct): | - | ||||||||||
Other (income) expense | 2,057,887 | (376,426) | 2,434,313 | NM | 1,989,362 | (516,737) | 2,506,099 | NM | |||
Foreign currency translation loss (gain) | 29,554 | (13,738) | 43,292 | NM | (74,686) | (7,118) | (67,568) | 949.3 % | |||
Provision for income taxes | 15,194 | 10,057 | 5,137 | 51.1 % | 61,406 | 39,459 | 21,947 | 55.6 % | |||
Depreciation and amortization | 306,233 | 155,749 | 150,484 | 96.6 % | 618,328 | 215,369 | 402,959 | 187.1 % | |||
Stock-based compensation | 534,322 | 596,455 | (62,133) | -10.4 % | 952,311 | 1,188,269 | (235,958) | -19.9 % | |||
Adjusted EBITDA | $ 962,956 | $ 318,469 | $ 644,487 | 202.4 % | $ 2,235,491 | $ (122,429) | $ 2,357,920 | 1926.0 % | |||
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
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 enhanced product offerings, additional customers, 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 | |||||||
December 31, | |||||||
2024 | June 30, | ||||||
(unaudited) | 2024 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 7,701,155 | $ | 6,100,031 | |||
Accounts receivable, net of allowance of | 7,116,055 | 6,879,800 | |||||
Prepaid expenses and other current assets | 742,166 | 643,553 | |||||
Prepaid royalties | 589,068 | 1,067,237 | |||||
Total current assets | 16,148,444 | 14,690,621 | |||||
Non-current assets: | |||||||
Property and equipment, net of accumulated depreciation of | 63,355 | 88,011 | |||||
Intangible assets, net of accumulated amortization of | 10,230,439 | 10,764,261 | |||||
Goodwill | 16,345,888 | 16,315,888 | |||||
Deposits and other assets | 867 | 981 | |||||
Total assets | $ | 42,788,993 | $ | 41,859,762 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 8,104,118 | $ | 8,843,612 | |||
Deferred revenue | 8,853,415 | 9,023,848 | |||||
Contingent earnout liability, current portion | 3,963,956 | — | |||||
Total current liabilities | 20,921,489 | 17,867,460 | |||||
Non-current liabilities: | |||||||
Contingent earnout liability, long-term portion | 10,741,044 | 12,298,114 | |||||
Total liabilities | 31,662,533 | 30,165,574 | |||||
Commitments and contingencies | |||||||
Stockholders' equity: | |||||||
Preferred stock; | — | — | |||||
Common stock; | 32,640 | 32,295 | |||||
Additional paid-in capital | 38,836,646 | 38,089,958 | |||||
Accumulated deficit | (27,620,476) | (26,309,246) | |||||
Accumulated other comprehensive loss | (122,350) | (118,819) | |||||
Total stockholders' equity | 11,126,460 | 11,694,188 | |||||
Total liabilities and stockholders' equity | $ | 42,788,993 | $ | 41,859,762 | |||
Research Solutions, Inc. and Subsidiaries Consolidated Statements of Operations and Other Comprehensive Loss (Unaudited) | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
December 31, | December 31, | ||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||
Revenue: | |||||||||||||
Platforms | $ | 4,601,257 | $ | 3,125,584 | $ | 8,930,902 | $ | 5,725,776 | |||||
Transactions | 7,312,962 | 7,188,158 | 15,027,799 | 14,648,937 | |||||||||
Total revenue | 11,914,219 | 10,313,742 | 23,958,701 | 20,374,713 | |||||||||
Cost of revenue: | |||||||||||||
Platforms | 619,842 | 486,185 | 1,167,009 | 868,799 | |||||||||
Transactions | 5,473,284 | 5,343,755 | 11,204,723 | 10,990,546 | |||||||||
Total cost of revenue | 6,093,126 | 5,829,940 | 12,371,732 | 11,859,345 | |||||||||
Gross profit | 5,821,093 | 4,483,802 | 11,586,969 | 8,515,368 | |||||||||
Operating expenses: | |||||||||||||
Selling, general and administrative | 5,422,013 | 4,748,050 | 10,229,103 | 9,818,948 | |||||||||
Depreciation and amortization | 306,233 | 155,749 | 618,328 | 215,369 | |||||||||
Total operating expenses | 5,728,246 | 4,903,799 | 10,847,431 | 10,034,317 | |||||||||
Income (loss) from operations | 92,847 | (419,997) | 739,538 | (1,518,949) | |||||||||
Other income | 348,999 | 108,194 | 417,524 | 248,505 | |||||||||
Change in fair value of contingent earnout liability | (2,406,886) | 268,232 | (2,406,886) | 268,232 | |||||||||
Loss before provision for income taxes | (1,965,040) | (43,571) | (1,249,824) | (1,002,212) | |||||||||
Provision for income taxes | (15,194) | (10,057) | (61,406) | (39,459) | |||||||||
Net loss | (1,980,234) | (53,628) | (1,311,230) | (1,041,671) | |||||||||
Other comprehensive income (loss): | |||||||||||||
Foreign currency translation | 2,637 | 6,349 | (3,531) | 5,403 | |||||||||
Comprehensive loss | $ | (1,977,597) | $ | (47,279) | $ | (1,314,761) | $ | (1,036,268) | |||||
Loss per common share: | |||||||||||||
Net loss per share, basic and diluted | $ | (0.07) | $ | - | $ | (0.04) | $ | (0.04) | |||||
Weighted average common shares outstanding, basic and diluted | 30,421,808 | 28,092,945 | 30,384,339 | 27,564,404 | |||||||||
Research Solutions, Inc. and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) | |||||||
Six Months Ended | |||||||
December 31, | |||||||
2024 | 2023 | ||||||
Cash flow from operating activities: | |||||||
Net loss | $ | (1,311,230) | $ | (1,041,671) | |||
Adjustment to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 618,328 | 215,369 | |||||
Stock options expense | 88,045 | 61,714 | |||||
Restricted common stock expense | 864,266 | 1,105,606 | |||||
Modification cost of accelerated vesting of restricted common stock | — | 20,949 | |||||
Adjustment to contingent earnout liability | 2,406,886 | (268,232) | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (266,255) | (681,502) | |||||
Prepaid expenses and other current assets | (98,613) | (67,986) | |||||
Prepaid royalties | 478,169 | 121,100 | |||||
Accounts payable and accrued expenses | (737,670) | 349,310 | |||||
Deferred revenue | (170,433) | (241,545) | |||||
Net cash provided by (used in) operating activities | 1,871,493 | (426,888) | |||||
Cash flow from investing activities: | |||||||
Purchase of property and equipment | (5,404) | (55,763) | |||||
Payment for acquisition of Resolute, net of cash acquired | — | (2,718,253) | |||||
Payment for acquisition of Scite, net of cash acquired | — | (7,305,493) | |||||
Net cash used in investing activities | (5,404) | (10,079,509) | |||||
Cash flow from financing activities: | |||||||
Common stock repurchase | (205,278) | (68,748) | |||||
Payment of contingent acquisition consideration | (62,560) | (278,195) | |||||
Net cash used in financing activities | (267,838) | (346,943) | |||||
Effect of exchange rate changes | 2,873 | 5,666 | |||||
Net increase (decrease) in cash and cash equivalents | 1,601,124 | (10,847,674) | |||||
Cash and cash equivalents, beginning of period | 6,100,031 | 13,545,333 | |||||
Cash and cash equivalents, end of period | $ | 7,701,155 | $ | 2,697,659 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid for income taxes | $ | 61,406 | $ | 39,459 | |||
Non-cash investing and financing activities: | |||||||
Contingent consideration accrual on asset acquisition | $ | 30,198 | $ | 36,364 | |||
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SOURCE Research Solutions, Inc.
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