Managing Director
SM Berger & Company, Inc.
Tel (216) 464-6400
Email contact
ONE STOP SYSTEMS, INC. $(OSS)$
CONSOLIDATED BALANCE SHEETS
Unaudited Audited
September 30, December 31,
2024 2023
--------------- --------------
ASSETS
Current assets
Cash and cash equivalents $ 9,402,608 $ 4,048,948
Short-term investments 3,180,213 7,771,820
Accounts receivable, net 9,327,339 8,318,247
Inventories, net 15,300,745 21,694,748
Prepaid expenses and other
current assets 960,236 611,066
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Total current assets 38,171,141 42,444,829
Property and equipment, net 1,858,348 2,370,224
Operating lease right-of use assets 1,609,278 1,922,784
Deposits and other 38,093 38,093
Deferred tax asset, net 507,187 -
Goodwill 1,489,722 1,489,722
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Total Assets $ 43,673,769 $ 48,265,652
=========== ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable $ 4,059,675 $ 1,201,781
Accrued expenses and other
liabilities 6,000,188 3,202,519
Current portion of operating
lease obligation 320,731 390,926
Current portion of notes payable 1,114,291 2,077,895
----------- ----------
Total current liabilities 11,494,885 6,873,121
Deferred tax liability, net - 44,673
Operating lease obligation, net of
current portion 1,554,580 1,765,536
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Total liabilities 13,049,465 8,683,330
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Commitments and contingencies
Stockholders' equity
Common stock, $0.0001 par value;
50,000,000 shares authorized;
21,114,534 and 20,661,341
shares issued and outstanding,
respectively 2,111 2,066
Additional paid-in capital 48,562,761 47,323,673
Accumulated other comprehensive
income 977,710 675,310
Accumulated deficit (18,918,278) (8,418,727)
----------- ----------
Total stockholders' equity 30,624,304 39,582,322
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Total Liabilities and
Stockholders' Equity $ 43,673,769 $ 48,265,652
=========== ==========
ONE STOP SYSTEMS, INC. (OSS)
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months For the Nine Months Ended
Ended September 30, September 30,
------------------------- --------------------------
2024 2023 2024 2023
----------- ----------- ------------ -----------
Revenue:
Product $12,682,241 $13,632,223 $ 36,722,411 $46,865,026
Customer funded
development 1,018,856 115,940 2,831,802 876,563
---------- ---------- ----------- ----------
13,701,097 13,748,163 39,554,213 47,741,589
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Cost of revenue:
Product 14,601,408 10,074,304 32,123,488 33,678,209
Customer funded
development 817,427 22,508 2,091,907 543,329
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15,418,835 10,096,812 34,215,395 34,221,538
---------- ---------- ----------- ----------
Gross (loss) profit (1,717,738) 3,651,351 5,338,818 13,520,051
---------- ---------- ----------- ----------
Operating
expenses:
General and
administrative 2,057,092 1,935,720 6,558,807 7,293,701
Impairment of
goodwill - 2,930,788 - 5,630,788
Marketing and
selling 2,008,824 1,713,105 6,184,065 4,983,751
Research and
development 950,373 1,053,852 2,846,852 3,203,830
---------- ---------- ----------- ----------
Total
operating
expenses 5,016,289 7,633,465 15,589,724 21,112,070
---------- ---------- ----------- ----------
Loss from
operations (6,734,027) (3,982,114) (10,250,906) (7,592,019)
---------- ---------- ----------- ----------
Other income
(expense), net:
Interest income 116,596 170,420 376,940 385,471
Interest expense (16,465) (31,468) (70,910) (88,112)
Employee
retention
credit $(ERC)$ - 418,486 - 1,716,727
Other income
(expense), net (14,402) 13,035 14,707 24,649
---------- ---------- ----------- ----------
Total other
income, net 85,729 570,473 320,737 2,038,735
---------- ---------- ----------- ----------
Loss before income
taxes (6,648,298) (3,411,641) (9,930,169) (5,553,284)
Provision for
income taxes 167,086 226,967 569,382 885,332
---------- ---------- ----------- ----------
Net loss $(6,815,384) $(3,638,608) $(10,499,551) $(6,438,616)
========== ========== =========== ==========
Net loss per
share:
Basic $ (0.32) $ (0.18) $ (0.50) $ (0.32)
========== ========== =========== ==========
Diluted $ (0.32) $ (0.18) $ (0.50) $ (0.32)
========== ========== =========== ==========
Weighted average
common shares
outstanding:
Basic 21,049,270 20,569,111 20,897,324 20,407,284
========== ========== =========== ==========
Diluted 21,049,270 20,569,111 20,897,324 20,407,284
========== ========== =========== ==========
ONE STOP SYSTEMS, INC. (OSS)
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended
September 30,
-----------------------------
2024 2023
--------------- -----------
Cash flows from operating
activities:
Net loss $ (10,499,551) $(6,438,616)
Adjustments to reconcile net loss
to net cash provided by operating
activities:
Deferred income taxes (188,868) -
Loss (gain) on disposal of
property and equipment 354 (92,147)
Provision for bad debt 40,000 30,488
Impairment of goodwill - 5,630,788
Warranty reserves (45,000) (18,216)
Amortization of intangibles - 42,154
Depreciation 815,420 771,619
Amortization of right-of-use
assets 312,396 1,309,725
Inventory reserves 7,351,278 1,026,501
Stock-based compensation expense 1,423,949 1,890,897
Employee retention credit - (1,716,727)
Changes in operating assets and
liabilities:
Accounts receivable (1,003,287) 2,639,125
Inventories (888,972) (2,614,194)
Prepaid expenses and other
current assets (711,063) (1,018,286)
Accounts payable 2,823,183 (1,309,295)
Accrued expenses and other
liabilities 2,993,729 1,348,578
Operating lease liabilities (280,023) (1,256,925)
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Net cash provided by operating
activities 2,143,545 225,469
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Cash flows from investing
activities:
Redemption of short-term
investment grade securities 4,592,052 672,865
Purchases of property and
equipment, including
capitalization of labor costs
for test equipment and ERP (298,789) (374,464)
----------- ----------
Net cash provided by investing
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