One Stop Systems Reports Q2 2024 Results
Q2 2024 revenues of $13.2 million, sequential increase and in line with plan
OSS segment orders of $7.5 million,
outpacing quarterly revenue for the second consecutive quarter
Management expects continued sequential growth with consolidated Q3 2024 revenue of $13.3 million, and OSS segment revenue expected to increase 15% year-over-year to $6.3 million
ESCONDIDO, Calif. – August 8, 2024 – – 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 $13.2 million, OSS segment orders outpaced quarterly revenue for the second consecutive quarter, and we expanded customer-funded development revenue. The sequential increase in customer-funded development revenue is an important indicator of future growth, as this establishes OSS as an incumbent on future multiyear contracts. In addition, after backing out the contribution a former media customer had on revenue in the second quarter of 2023, revenue at our OSS segment grew by 8.3% year-over-year, another positive indicator for accelerating revenue momentum,” stated OSS President and CEO, Mike Knowles.
“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 15% year-over-year increase in OSS segment revenue. In addition, based on our current pipeline we believe we are well positioned for continued growth in the 2024 fourth quarter,” concluded Mr. Knowles.
2024 Second-Quarter Financial Summary
Consolidated revenue was $13.2 million, compared to $17.2 million. The 23.3% year-over-year reduction in revenue was primarily a result of approximately $3.2 million related to a former media customer and a $1.3 million decline in Bressner revenue associated with slower economic activity in Europe. Lower second-quarter revenue was partially offset by new customer-funded development orders, and revenue growth to new and existing customers, aligned directly with our strategic focus and plan.
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, |
% of Net Revenue |
June 30, |
% 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 25.2%, as compared to 27.9% in the same year-ago quarter. OSS segment gross margin was 24.9%, a reduction of 4.3 percentage points from the same period a year ago, primarily due to production facility underutilization and additional inventory reserves. Bressner gross margin declined 1.2 percentage points to 25.5%, primarily due lower revenues resulting from European market softness.
Total operating expenses decreased 31.9% to $5.6 million. This decrease was predominantly attributable to a $2.7 million impairment of goodwill that occurred in the second quarter of 2023, the elimination of costs associated with organizational restructuring and outside professional services, partially offset by planned marketing and program management investments made during the quarter.
OSS reported a net loss of $2.3 million, or $0.11 per share, as compared to a net loss of $2.4 million, or $0.12 per share, in the prior year. The Company reported a non-GAAP net loss of $1.8 million, or $0.09 per share, compared to a non-GAAP net loss of $84,000, or $0.00 per diluted share.
Adjusted EBITDA, a non-GAAP metric, was a loss of $1.3 million, compared to adjusted EBITDA of $520,000 in the prior year second quarter.
As of June 30, 2024, OSS reported cash and short-term investments of $11.8 million and total working capital of $32.6 million, compared to cash and short-term investments of $11.8 million and total working capital of $35.6 million at December 31, 2023.
2024 First-Half Financial Summary
Consolidated revenue was $25.9 million, compared to $34.0 million for the same period last year. The 23.9% year-over-year reduction in revenue was primarily a result of approximately $4.7 million related to a former media customer, and a delay in timing of a defense contract that was partially offset by an expansion from an existing aerospace customer, representing a net $1.1 million shortfall. In addition, a $2.3 million decline in Bressner revenue associated with slower economic activity in Europe contributed to the year-over-year reduction in consolidated revenue.
2
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, |
% of Net Revenue |
June 30, |
% 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 27.3%, as compared to 29.0% in the same year-ago quarter. OSS segment gross margin was 29.6%, a reduction of 3.2 percentage points from the same period a year ago. Bressner gross margin increased 0.3 percentage points to 25.6%.
Total operating expenses decreased 21.6% to $10.6 million. This decrease was predominantly attributable to a $2.7 million impairment of goodwill that occurred in the second quarter of 2023, the elimination of costs associated with organizational restructuring and outside professional services, partially offset by planned program management investments.
OSS reported a net loss of $3.7 million, or $0.18 per share, as compared to a net loss of $2.8 million, or $0.14 per share, in the prior year. The Company reported a non-GAAP net loss of $2.7 million, or $0.13 per share, compared to non-GAAP net income of $6,000, or $0.00 per diluted share.
Adjusted EBITDA, a non-GAAP metric, was a loss of $1.8 million, a decrease from adjusted EBITDA of $1.2 million in the prior year.
Outlook
OSS anticipates consolidated revenue of approximately $13.3 million in the third quarter of 2024, which accounts for approximately $1.6 million of orders that were pushed to the fourth quarter. The Company’s revenue guidance for the third quarter of 2024 also includes expected OSS segment revenue of $6.3 million, representing 15% year-over-year growth in the OSS segment, partially offset by lower Bressner revenue due to continued softness in the Company’s European markets.
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.
3
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.
4
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 |
|
|
For the Six Months Ended |
|
||||||||||
|
|
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:
5
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
||||||||||
|
|
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
6
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, $0.0001 par value; 50,000,000 shares authorized; |
|
|
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 |
|
|
|
|
|
|
|
|
||
7
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 |
|
8
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 |
|
|
(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 |
|
|
|
|
|
|
|
|
||
9