false
0001386301
0001386301
2024-02-08
2024-02-08
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report:
(Date of earliest event reported)
February 8, 2024
Research Solutions, Inc.
(Exact name of registrant as specified in its charter)
Nevada
(State or other Jurisdiction of Incorporation)
1-39256 |
|
11-3797644 |
(Commission File
Number) |
|
(IRS Employer
Identification No.) |
N/A
(Address of Principal
Executive Offices and
zip code)
(310) 477-0354
(Registrant’s telephone number, including
area code)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of registrant under any of the following provisions:
¨ Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting
material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b))
¨ Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of
the Act:
Title of each Class |
Trading Symbol(s) |
Name of each Exchange on which registered |
Common stock, $0.001 par value |
RSSS |
The Nasdaq Stock Market LLC |
Indicate by
check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405)
or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 13(a) of the Exchange Act. ¨
| Item 2.02. | Results of Operations and Financial Condition. |
On February 8, 2024, the Registrant
announced its financial results for the second quarter ended December 31, 2023. A copy of the press release is being furnished as Exhibit
99.1 to this Current Report on Form 8-K.
The information in this Item
2.02 and Exhibit 99.1 attached hereto is intended to be furnished and shall not be deemed “filed” for purposes of Section
18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor
shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as
expressly set forth by specific reference in such filing.
| Item 9.01. | Financial Statements and Exhibits |
SIGNATURE
Pursuant to the requirements of
the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
RESEARCH SOLUTIONS, INC. |
|
|
Date: February 8, 2024 |
By: |
/s/ William Nurthen |
|
|
William Nurthen |
|
|
Chief Financial Officer |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Research
Solutions Reports Fiscal Second Quarter 2024 Results
Reports
18.3% Revenue Increase and ARR of $15.6 Million
HENDERSON, Nev., February 8, 2024 —
Research Solutions, Inc. (NASDAQ: RSSS), a trusted partner providing cloud-based workflow solutions to accelerate research for
R&D-driven organizations, reported financial results for its fiscal second quarter ended December 31, 2023.
Fiscal Second Quarter 2024 Summary
| · | Total
revenue of $10.3 million, an 18.3% increase from the prior-year quarter |
| · | Platform
revenue up 48% to $3.1 million. Annual Recurring Revenue (“ARR”) up 77% to $15.6 million, which includes approximately
$4.0 million of B2C recurring revenue and $0.4M of B2B recurring revenue from the Scite, Inc. (“Scite”) acquisition. B2C ARR is broken out on a separate
line in the Company’s Financial and Operational Summary Tables and for the purposes of calculating B2C ARR, the value of any monthly
recurring subscriptions has been multiplied by twelve (see the Financial and Operational Summary Tables and associated notes below). |
| · | Gross
profit up 31.7% from the prior-year quarter. Total gross margin improved 450 basis points to 43.5%. |
| · | Net
loss of $54,000 or ($0.00) on a per share basis, compared to a net loss of ($256,000) or ($0.01) per share in the prior-year quarter.
The quarter’s loss includes $307,000 in expenses related to M&A activities, most of which were legal expenses. |
| · | Adjusted
EBITDA of $318,000 compared to $201,000 in the prior-year quarter. The Adjusted EBITDA result is inclusive of the expenses related to
M&A activities noted above. Without these costs, Adjusted EBITDA would have been approximately $625,000. |
| · | The
company closed its acquisition of Scite on December 1, 2023. The quarter’s numbers include
approximately one month of activity from Scite. |
“Our second quarter results reflect
the continued execution of our plan and with the acquisition of Scite our ARR is now approximately $15.6 million. We also
experienced continued organic growth across our platform and transaction offerings, with net incremental ARR on the Article Galaxy
platform being our best result in the last four quarters” said Roy W. Olivier, President and CEO of Research Solutions.
“In addition, we have greatly enhanced the offerings available within our Article Galaxy platform over the past six months
with the addition of ResoluteAI and Scite. When combined with our existing products, these acquisitions add multiple new workflow
and advanced search and discovery solutions that can be sold to new or existing customers. These new solutions materially increase
our Total Addressable Market (“TAM”) and as we further integrate the products together, we will be able to deliver
unique value to our customers. Overall, we remain a critical piece of the research process and believe we are well-positioned to
expand our user base as macroeconomic conditions improve.”
Fiscal Second Quarter 2024 Results
Total revenue was $10.3 million, an 18% increase
from $8.7 million in the year-ago quarter as both platform and transaction revenue increased from the prior-year period.
Platform subscription revenue increased 48% to
$3.1 million compared to $2.1 million in the year-ago quarter. The increase was primarily due to the acquisitions of ResoluteAI and Scite,
as well as organic growth in the core Article Galaxy platform. The quarter ended with annual recurring revenue of $15.569 million, up
77% year-over-year, including approximately $4.355 million of ARR from Scite (see the company’s definition of annual recurring
revenue below).
Transaction revenue was $7.2 million, compared
to $6.6 million in the second quarter of fiscal 2023. The increase was primarily due to organic growth, which was also enhanced by higher
transaction volumes related to contracts transferred from FIZ Karlsruhe effective on January 1, 2023. The transaction customer count
for the quarter was 1,398, compared to 1,223 customers in the prior-year quarter (see the company’s definition of active customer accounts
and transactions below).
Total gross margin improved 450 basis points
from the prior-year quarter to 43.5%. The increase was primarily driven by the continued revenue mix shift to the higher-margin Platforms
business, as well as increased margins in the transactions business.
Total operating expenses were $4.9 million, compared
to $3.7 million in the second quarter of 2023. The increase was primarily related to the additional expense base associated with the acquisitions
of ResoluteAI and Scite. Additionally, this quarter’s results include $307,000 in expenses related to M&A activities, the vast
majority of which were legal expenses.
Net loss in the second quarter was $54,000,
or roughly breakeven on a per share basis, compared to a net loss of ($256,000), or ($0.01) per share, in the prior-year quarter.
Adjusted EBITDA was $318,000, compared to $201,000 in the year-ago quarter. The Adjusted EBITDA result is inclusive of the $307,000
in M&A activity related costs noted above (see definition and further discussion about the presentation of Adjusted EBITDA, a
non-GAAP term, below).
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 8, 2024
Time: 5:00 p.m. ET (2:00 p.m. PT)
Dial-in number: 1-412-317-5180
Conference ID: 10185927
The conference call will be broadcast live and
available for replay until March 8, 2024 by dialing 1-412-317-6671 and using the replay ID 10185927, 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, | | |
Fiscal
Year Ended December 31, | |
| |
2023 | | |
2022 | | |
Change | | |
%
Change | | |
2023 | | |
2022 | | |
Change | | |
%
Change | |
Revenue: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Platforms | |
$ | 3,125,584 | | |
$ | 2,110,272 | | |
$ | 1,015,312 | | |
| 48.1 | % | |
$ | 5,725,776 | | |
$ | 4,130,239 | | |
$ | 1,595,537 | | |
| 38.6 | % |
Transactions | |
$ | 7,188,158 | | |
$ | 6,606,394 | | |
| 581,764 | | |
| 8.8 | % | |
$ | 14,648,937 | | |
$ | 13,271,070 | | |
| 1,377,867 | | |
| 10.4 | % |
Total
Revenue | |
| 10,313,742 | | |
| 8,716,666 | | |
| 1,597,076 | | |
| 18.3 | % | |
| 20,374,713 | | |
| 17,401,309 | | |
| 2,973,404 | | |
| 17.1 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Gross
Profit: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Platforms | |
| 2,639,399 | | |
| 1,857,199 | | |
| 782,200 | | |
| 42.1 | % | |
| 4,856,977 | | |
| 3,646,693 | | |
| 1,210,284 | | |
| 33.2 | % |
Transactions | |
| 1,844,403 | | |
| 1,546,628 | | |
| 297,775 | | |
| 19.3 | % | |
| 3,658,391 | | |
| 3,106,382 | | |
| 552,009 | | |
| 17.8 | % |
Total
Gross Profit | |
| 4,483,802 | | |
| 3,403,827 | | |
| 1,079,975 | | |
| 31.7 | % | |
| 8,515,368 | | |
| 6,753,075 | | |
| 1,762,293 | | |
| 26.1 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Gross
profit as a % of revenue: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Platforms | |
| 84.4 | % | |
| 88.0 | % | |
| -3.6 | % | |
| | | |
| 84.8 | % | |
| 88.3 | % | |
| -3.5 | % | |
| | |
Transactions | |
| 25.7 | % | |
| 23.4 | % | |
| 2.2 | % | |
| | | |
| 25.0 | % | |
| 23.4 | % | |
| 1.6 | % | |
| | |
Total
Gross Profit | |
| 43.5 | % | |
| 39.0 | % | |
| 4.4 | % | |
| | | |
| 41.8 | % | |
| 38.8 | % | |
| 3.0 | % | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Operating
Expenses: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Sales
and marketing | |
| 804,927 | | |
| 666,608 | | |
| 138,319 | | |
| 20.7 | % | |
| 1,489,943 | | |
| 1,187,824 | | |
| 302,119 | | |
| 25.4 | % |
Technology
and product development | |
| 1,336,558 | | |
| 922,132 | | |
| 414,426 | | |
| 44.9 | % | |
| 2,581,137 | | |
| 1,797,422 | | |
| 783,715 | | |
| 43.6 | % |
General
and administrative | |
| 2,023,848 | | |
| 1,613,664 | | |
| 410,184 | | |
| 25.4 | % | |
| 4,566,717 | | |
| 3,133,088 | | |
| 1,433,629 | | |
| 45.8 | % |
Depreciation
and amortization | |
| 155,749 | | |
| 6,342 | | |
| 149,407 | | |
| 2355.8 | % | |
| 215,369 | | |
| 12,154 | | |
| 203,215 | | |
| 1672.0 | % |
Stock-based
compensation | |
| 596,455 | | |
| 608,703 | | |
| (12,248 | ) | |
| -2.0 | % | |
| 1,188,269 | | |
| 784,064 | | |
| 404,205 | | |
| 51.6 | % |
Foreign
currency translation loss | |
| (13,738 | ) | |
| (84,179 | ) | |
| 70,441 | | |
| 83.7 | % | |
| (7,118 | ) | |
| (11,663 | ) | |
| 4,545 | | |
| 39.0 | % |
Total
Operating Expenses | |
| 4,903,799 | | |
| 3,733,270 | | |
| 1,170,529 | | |
| 31.4 | % | |
| 10,034,317 | | |
| 6,902,889 | | |
| 3,131,428 | | |
| 45.4 | % |
Income
(loss) from operations | |
| (419,997 | ) | |
| (329,443 | ) | |
| (90,554 | ) | |
| -27.5 | % | |
| (1,518,949 | ) | |
| (149,814 | ) | |
| (1,369,135 | ) | |
| -913.9 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Other
Income (Expenses): | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Other
income | |
| 376,426 | | |
| 74,695 | | |
| 301,731 | | |
| 404.0 | % | |
| 516,737 | | |
| 113,764 | | |
| 402,973 | | |
| 354.2 | % |
Provision
for income taxes | |
| (10,057 | ) | |
| (782 | ) | |
| (9,275 | ) | |
| 1186.1 | % | |
| (39,459 | ) | |
| (4,915 | ) | |
| (34,544 | ) | |
| 702.8 | % |
Total
Other Income (Expenses): | |
| 366,369 | | |
| 73,913 | | |
| 292,456 | | |
| 395.7 | % | |
| 477,278 | | |
| 108,849 | | |
| 368,429 | | |
| 338.5 | % |
Net
income (loss) | |
$ | (53,628 | ) | |
$ | (255,530 | ) | |
| 201,902 | | |
| 79.0 | % | |
$ | (1,041,671 | ) | |
$ | (40,965 | ) | |
| (1,000,706 | ) | |
| -2442.8 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Adjusted
EBITDA | |
$ | 318,469 | | |
$ | 201,423 | | |
$ | 117,046 | | |
| 58.1 | % | |
$ | (122,429 | ) | |
$ | 634,741 | | |
$ | (757,170 | ) | |
| NM | |
| |
Quarter
Ended December 31, | | |
Fiscal
Year Ended December 31, | |
| |
2023 | | |
2022 | | |
Change | | |
%
Change | | |
2023 | | |
2022 | | |
Change | | |
%
Change | |
Platforms: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
B2B
ARR (Annual recurring revenue): | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Beginning of Period | |
$ | 11,020,241 | | |
$ | 8,331,770 | | |
$ | 2,688,471 | | |
| 32.3 | % | |
$ | 9,444,130 | | |
$ | 7,922,188 | | |
$ | 1,521,942 | | |
| 19.2 | % |
Incremental
ARR | |
| 594,507 | | |
| 445,207 | | |
| 149,300 | | |
| 33.5 | % | |
| 2,170,618 | | |
| 854,789 | | |
| 1,315,829 | | |
| 153.9 | % |
End of Period | |
$ | 11,614,748 | | |
$ | 8,776,977 | | |
$ | 2,837,771 | | |
| 32.3 | % | |
$ | 11,614,748 | | |
$ | 8,776,977 | | |
$ | 2,837,771 | | |
| 32.3 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Deployments: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Beginning of Period | |
| 880 | | |
| 756 | | |
| 124 | | |
| 16.4 | % | |
| 835 | | |
| 733 | | |
| 102 | | |
| 13.9 | % |
Incremental
Deployments | |
| 62 | | |
| 34 | | |
| 28 | | |
| 82.4 | % | |
| 107 | | |
| 57 | | |
| 50 | | |
| 87.7 | % |
End of Period | |
| 942 | | |
| 790 | | |
| 152 | | |
| 19.2 | % | |
| 942 | | |
| 790 | | |
| 152 | | |
| 19.2 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
ASP
(Average sales price): | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Beginning of Period | |
$ | 12,523 | | |
$ | 11,021 | | |
$ | 1,502 | | |
| 13.6 | % | |
$ | 11,310 | | |
$ | 10,808 | | |
$ | 502 | | |
| 4.6 | % |
End of Period | |
$ | 12,330 | | |
$ | 11,110 | | |
$ | 1,220 | | |
| 11.0 | % | |
$ | 12,330 | | |
$ | 11,110 | | |
$ | 1,220 | | |
| 11.0 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
B2C
ARR (Annual recurring revenue): | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Beginning of Period | |
$ | - | | |
$ | - | | |
$ | - | | |
| | | |
$ | - | | |
$ | - | | |
$ | - | | |
| | |
Incremental
ARR | |
| 3,954,090 | | |
| - | | |
| 3,954,090 | | |
| NM | | |
| 3,954,090 | | |
| - | | |
| 3,954,090 | | |
| NM | |
End of Period | |
$ | 3,954,090 | | |
$ | - | | |
$ | 3,954,090 | | |
| NM | | |
$ | 3,954,090 | | |
$ | - | | |
$ | 3,954,090 | | |
| NM | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total
ARR (Annualized recurring revenue): | |
$ | 15,568,838 | | |
$ | 8,776,977 | | |
$ | 6,791,861 | | |
| 77.4 | % | |
$ | 15,568,838 | | |
$ | 8,776,977 | | |
$ | 6,791,861 | | |
| 77.4 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Transaction
Customers: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Corporate
customers | |
| 1,065 | | |
| 921 | | |
| 144 | | |
| 15.6 | % | |
| 1,078 | | |
| 922 | | |
| 157 | | |
| 17.0 | % |
Academic
customers | |
| 333 | | |
| 302 | | |
| 31 | | |
| 10.3 | % | |
| 319 | | |
| 300 | | |
| 19 | | |
| 6.3 | % |
Total
customers | |
| 1,398 | | |
| 1,223 | | |
| 175 | | |
| 14.3 | % | |
| 1,397 | | |
| 1,222 | | |
| 176 | | |
| 14.4 | % |
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), 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 December 31, | | |
Fiscal Year Ended December 31, | |
| |
2023 | | |
2022 | | |
Change | | |
%
Change | | |
2023 | | |
2022 | | |
Change | | |
%
Change | |
Net
Income (loss) | |
$ | (53,628 | ) | |
$ | (255,530 | ) | |
$ | 201,902 | | |
| 79.0 | % | |
$ | (1,041,671 | ) | |
$ | (40,965 | ) | |
$ | (1,000,706 | ) | |
| -2442.8 | % |
Add (deduct): | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| - | | |
| | |
Other
income (expense) | |
| (376,426 | ) | |
| (74,695 | ) | |
| (301,731 | ) | |
| 404.0 | % | |
| (516,737 | ) | |
| (113,764 | ) | |
| (402,973 | ) | |
| 354.2 | % |
Foreign
currency translation loss | |
| (13,738 | ) | |
| (84,179 | ) | |
| 70,441 | | |
| 83.7 | % | |
| (7,118 | ) | |
| (11,663 | ) | |
| 4,545 | | |
| 39.0 | % |
Provision
for income taxes | |
| 10,057 | | |
| 782 | | |
| 9,275 | | |
| 1186.1 | % | |
| 39,459 | | |
| 4,915 | | |
| 34,544 | | |
| 702.8 | % |
Depreciation
and amortization | |
| 155,749 | | |
| 6,342 | | |
| 149,407 | | |
| 2355.8 | % | |
| 215,369 | | |
| 12,154 | | |
| 203,215 | | |
| 1672.0 | % |
Stock-based
compensation | |
| 596,455 | | |
| 608,703 | | |
| (12,248 | ) | |
| -2.0 | % | |
| 1,188,269 | | |
| 784,064 | | |
| 404,205 | | |
| 51.6 | % |
Gain
on sale of disc. ops. | |
| - | | |
| - | | |
| - | | |
| | | |
| - | | |
| - | | |
| - | | |
| | |
Adjusted EBITDA | |
$ | 318,469 | | |
$ | 201,423 | | |
$ | 117,046 | | |
| 58.1 | % | |
$ | (122,429 | ) | |
$ | 634,741 | | |
$ | (757,170 | ) | |
| 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
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, | | |
| |
| |
2023 | | |
June 30, | |
| |
(unaudited) | | |
2023 | |
Assets | |
| | | |
| | |
Current assets: | |
| | | |
| | |
Cash and cash equivalents | |
$ | 2,697,659 | | |
$ | 13,545,333 | |
Accounts receivable, net of allowance of $94,991 and $85,015, respectively | |
| 7,289,248 | | |
| 6,153,063 | |
Prepaid expenses and other current assets | |
| 547,786 | | |
| 400,340 | |
Prepaid royalties | |
| 1,081,578 | | |
| 1,202,678 | |
Total current assets | |
| 11,616,271 | | |
| 21,301,414 | |
| |
| | | |
| | |
Goodwill (provisional) | |
| 16,451,937 | | |
| — | |
| |
| | | |
| | |
Other assets: | |
| | | |
| | |
Property and equipment, net of accumulated depreciation of $905,411 and $881,908, respectively | |
| 103,195 | | |
| 70,193 | |
Intangible assets, net of accumulated amortization of $940,234 and $747,355, respectively ($10,806,487 provisional) | |
| 11,290,225 | | |
| 462,068 | |
Deposits and other assets | |
| 1,060 | | |
| 1,052 | |
Total assets | |
$ | 39,462,688 | | |
$ | 21,834,727 | |
| |
| | | |
| | |
Liabilities and Stockholders’ Equity | |
| | | |
| | |
Current liabilities: | |
| | | |
| | |
Accounts payable and accrued expenses | |
$ | 8,862,829 | | |
$ | 8,079,516 | |
Deferred revenue | |
| 7,843,674 | | |
| 6,424,724 | |
Total current liabilities | |
| 16,706,503 | | |
| 14,504,240 | |
| |
| | | |
| | |
Long-term liabilities: | |
| | | |
| | |
Contingent earnout liability | |
| 8,792,811 | | |
| — | |
Total liabilities | |
| 25,499,314 | | |
| 14,504,240 | |
| |
| | | |
| | |
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; 32,619,598 and 29,487,508 shares issued and outstanding, respectively | |
| 32,620 | | |
| 29,487 | |
Additional paid-in capital | |
| 37,607,895 | | |
| 29,941,873 | |
Accumulated deficit | |
| (23,564,320 | ) | |
| (22,522,649 | ) |
Accumulated other comprehensive loss | |
| (112,821 | ) | |
| (118,224 | ) |
Total stockholders’ equity | |
| 13,963,374 | | |
| 7,330,487 | |
Total liabilities and stockholders’ equity | |
$ | 39,462,688 | | |
$ | 21,834,727 | |
Research Solutions, Inc. and Subsidiaries
Consolidated Statements of Operations and Other
Comprehensive Loss
(Unaudited)
| |
Three Months Ended | | |
Six Months Ended | |
| |
December 31, | | |
December 31, | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Revenue: | |
| | | |
| | | |
| | | |
| | |
Platforms | |
$ | 3,125,584 | | |
$ | 2,110,272 | | |
$ | 5,725,776 | | |
$ | 4,130,239 | |
Transactions | |
| 7,188,158 | | |
| 6,606,394 | | |
| 14,648,937 | | |
| 13,271,070 | |
Total revenue | |
| 10,313,742 | | |
| 8,716,666 | | |
| 20,374,713 | | |
| 17,401,309 | |
| |
| | | |
| | | |
| | | |
| | |
Cost of revenue: | |
| | | |
| | | |
| | | |
| | |
Platforms | |
| 486,185 | | |
| 253,073 | | |
| 868,799 | | |
| 483,546 | |
Transactions | |
| 5,343,755 | | |
| 5,059,766 | | |
| 10,990,546 | | |
| 10,164,688 | |
Total cost of revenue | |
| 5,829,940 | | |
| 5,312,839 | | |
| 11,859,345 | | |
| 10,648,234 | |
Gross profit | |
| 4,483,802 | | |
| 3,403,827 | | |
| 8,515,368 | | |
| 6,753,075 | |
| |
| | | |
| | | |
| | | |
| | |
Operating expenses: | |
| | | |
| | | |
| | | |
| | |
Selling, general and administrative | |
| 4,748,050 | | |
| 3,726,928 | | |
| 9,818,948 | | |
| 6,890,735 | |
Depreciation and amortization | |
| 155,749 | | |
| 6,342 | | |
| 215,369 | | |
| 12,154 | |
Total operating expenses | |
| 4,903,799 | | |
| 3,733,270 | | |
| 10,034,317 | | |
| 6,902,889 | |
| |
| | | |
| | | |
| | | |
| | |
Loss from operations | |
| (419,997 | ) | |
| (329,443 | ) | |
| (1,518,949 | ) | |
| (149,814 | ) |
| |
| | | |
| | | |
| | | |
| | |
Other income | |
| 376,426 | | |
| 74,695 | | |
| 516,737 | | |
| 113,764 | |
| |
| | | |
| | | |
| | | |
| | |
Loss from operations before provision for income taxes | |
| (43,571 | ) | |
| (254,748 | ) | |
| (1,002,212 | ) | |
| (36,050 | ) |
Provision for income taxes | |
| (10,057 | ) | |
| (782 | ) | |
| (39,459 | ) | |
| (4,915 | ) |
| |
| | | |
| | | |
| | | |
| | |
Net loss | |
| (53,628 | ) | |
| (255,530 | ) | |
| (1,041,671 | ) | |
| (40,965 | ) |
| |
| | | |
| | | |
| | | |
| | |
Other comprehensive income (loss): | |
| | | |
| | | |
| | | |
| | |
Foreign currency translation | |
| 6,349 | | |
| 6,524 | | |
| 5,403 | | |
| 1,348 | |
Comprehensive loss | |
$ | (47,279 | ) | |
$ | (249,006 | ) | |
$ | (1,036,268 | ) | |
$ | (39,617 | ) |
| |
| | | |
| | | |
| | | |
| | |
Loss per common share: | |
| | | |
| | | |
| | | |
| | |
Net loss per share, basic and diluted | |
$ | - | | |
$ | (0.01 | ) | |
$ | (0.04 | ) | |
$ | - | |
Weighted average common shares outstanding, basic and diluted | |
| 28,092,945 | | |
| 26,816,550 | | |
| 27,564,404 | | |
| 26,767,360 | |
Research Solutions, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
| |
Six Months Ended | |
| |
December 31, | |
| |
2023 | | |
2022 | |
Cash flow from operating activities: | |
| | | |
| | |
Net loss | |
$ | (1,041,671 | ) | |
$ | (40,965 | ) |
Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities: | |
| | | |
| | |
Depreciation and amortization | |
| 215,369 | | |
| 12,154 | |
Fair value of vested stock options | |
| 61,714 | | |
| 301,737 | |
Fair value of vested restricted common stock | |
| 1,105,606 | | |
| 482,327 | |
Fair value of vested unrestricted common stock | |
| — | | |
| 68,272 | |
Modification cost of accelerated vesting of restricted common stock | |
| 20,949 | | |
| — | |
Changes in operating assets and liabilities: | |
| | | |
| | |
Accounts receivable | |
| (681,502 | ) | |
| 8,159 | |
Prepaid expenses and other current assets | |
| (67,986 | ) | |
| (67,603 | ) |
Prepaid royalties | |
| 121,100 | | |
| 805,436 | |
Accounts payable and accrued expenses | |
| 81,078 | | |
| (974,931 | ) |
Deferred revenue | |
| (241,545 | ) | |
| 428,999 | |
Net cash provided by (used in) operating activities | |
| (426,888 | ) | |
| 1,023,585 | |
| |
| | | |
| | |
Cash flow from investing activities: | |
| | | |
| | |
Purchase of property and equipment | |
| (55,763 | ) | |
| (18,876 | ) |
Payment for acquisition of Resolute, net of cash acquired | |
| (2,718,253 | ) | |
| — | |
Payment for acquisition of Scite, net of cash acquired | |
| (7,305,493 | ) | |
| — | |
Payment for non-refundable deposit for asset acquisition | |
| — | | |
| (297,450 | ) |
Net cash used in investing activities | |
| (10,079,509 | ) | |
| (316,326 | ) |
| |
| | | |
| | |
Cash flow from financing activities: | |
| | | |
| | |
Common stock repurchase | |
| (68,748 | ) | |
| (48,729 | ) |
Payment of contingent acquisition consideration | |
| (278,195 | ) | |
| — | |
Net cash used in financing activities | |
| (346,943 | ) | |
| (48,729 | ) |
| |
| | | |
| | |
Effect of exchange rate changes | |
| 5,666 | | |
| 859 | |
Net increase (decrease) in cash and cash equivalents | |
| (10,847,674 | ) | |
| 659,389 | |
Cash and cash equivalents, beginning of period | |
| 13,545,333 | | |
| 10,603,175 | |
Cash and cash equivalents, end of period | |
$ | 2,697,659 | | |
$ | 11,262,564 | |
| |
| | | |
| | |
Supplemental disclosures of cash flow information: | |
| | | |
| | |
Cash paid for income taxes | |
$ | 39,459 | | |
$ | 4,915 | |
| |
| | | |
| | |
Non-cash investing and financing activities: | |
| | | |
| | |
Contingent consideration accrual on asset acquisition | |
$ | 36,364 | | |
$ | — | |
Contact
Steven Hooser or John Beisler
Three Part Advisors
(214) 872-2710
shooser@threepa.com; jbeisler@threepa.com
# # #
v3.24.0.1
X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
+ References
+ Details
Name: |
dei_AmendmentFlag |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
+ References
+ Details
Name: |
dei_DocumentPeriodEndDate |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:dateItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
+ References
+ Details
Name: |
dei_DocumentType |
Namespace Prefix: |
dei_ |
Data Type: |
dei:submissionTypeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityCentralIndexKey |
Namespace Prefix: |
dei_ |
Data Type: |
dei:centralIndexKeyItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionIndicate if registrant meets the emerging growth company criteria.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityEmergingGrowthCompany |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
+ References
+ Details
Name: |
dei_EntityFileNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:fileNumberItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
+ References
+ Details
Name: |
dei_EntityIncorporationStateCountryCode |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarStateCountryItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityRegistrantName |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityTaxIdentificationNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:employerIdItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionLocal phone number for entity.
+ References
+ Details
Name: |
dei_LocalPhoneNumber |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 13e -Subsection 4c
+ Details
Name: |
dei_PreCommencementIssuerTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 14d -Subsection 2b
+ Details
Name: |
dei_PreCommencementTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTitle of a 12(b) registered security.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b
+ Details
Name: |
dei_Security12bTitle |
Namespace Prefix: |
dei_ |
Data Type: |
dei:securityTitleItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the Exchange on which a security is registered.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection d1-1
+ Details
Name: |
dei_SecurityExchangeName |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarExchangeCodeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Section 14a -Number 240 -Subsection 12
+ Details
Name: |
dei_SolicitingMaterial |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
+ References
+ Details
Name: |
dei_TradingSymbol |
Namespace Prefix: |
dei_ |
Data Type: |
dei:tradingSymbolItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Securities Act -Number 230 -Section 425
+ Details
Name: |
dei_WrittenCommunications |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
Research Solutions (NASDAQ:RSSS)
過去 株価チャート
から 8 2024 まで 9 2024
Research Solutions (NASDAQ:RSSS)
過去 株価チャート
から 9 2023 まで 9 2024