Reports 18.3% Revenue Increase and ARR of
$15.6 Million
HENDERSON, Nev., Feb. 8, 2024
/PRNewswire/ --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 %
|
|
|
|
|
|
|
|
|
|
NM
|
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
|
|
$
|
—
|
|
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SOURCE Research Solutions, Inc.