8-K
Research Solutions, Inc. (RSSS)
UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORTPursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report:
(Date of earliest event reported)
May 11, 2023
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 May 11, 2023, the Registrant announced its financial results for the third quarter ended March 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 | |
|---|---|---|
| (d) | Exhibits. | |
| Exhibit | ||
| Number | Description | |
| 99.1 | Press Release issued May 11, 2023 entitled “Research Solutions Reports Fiscal Third Quarter 2023 Results”. | |
| 104 | Cover Page Interactive Data File (embedded as Inline XBRL document) |
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: May 11, 2023 | By: | /s/ William Nurthen |
| William Nurthen | ||
| Chief Financial Officer |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Research Solutions Reports Fiscal Third Quarter2023 Results
Reports 18% Revenue Increase and 24% Increasein ARR to $9.1 Million
HENDERSON,Nev., May 11, 2023 — Research Solutions, Inc. (NASDAQ: RSSS), a pioneer in providing cloud-based workflow solutions for R&D driven organizations, reported financial results for its fiscal third quarter ended March 31, 2023.
Fiscal Third Quarter 2023 Summary
| • | Total<br> revenue of $10.3 million, an 18.1% increase from prior-year quarter and the Company’s<br> first reported quarter of over $10 million in revenue |
|---|---|
| • | Platform<br> revenue up 26% to $2.2 million. Annual Recurring Revenue (“ARR”) up 24%<br> to $9.1 million. |
| --- | --- |
| • | Gross<br> profit up 24% from prior-year quarter. Total gross margin improved 190 basis points to 38.9%. |
| --- | --- |
| • | Earnings<br> of $0.01 per diluted share, compared to a loss of $0.01 per share in the prior-year quarter.<br> Fiscal year to date net income of $0.01 per diluted share, compared to a loss of $0.05 in<br> the same fiscal year to date period in the prior-year. |
| --- | --- |
| • | Adjusted<br> EBITDA of $559,000 compared to $94,000 in the prior-year quarter |
| --- | --- |
| • | Positive<br> cash flow from operations of $0.8 million for the quarter and $1.9 million fiscal year to<br> date, compared to negative cash flow from operations of $0.4 million in the same fiscal year<br> to date period in the prior-year |
| --- | --- |
“Our third quarter results reflect the continued adoption of our platform by new customers and a 16% revenue increase in our transactions business, due to both organic growth and the successful transition of customer contracts from FIZ Karlsruhe, which took effect on January 1, 2023,” said Roy W. Olivier, President and CEO of Research Solutions. “Platform growth remained challenging in the quarter as our customers continue to extend sales cycles and operate under tightened budgets. Our profitability, however, has allowed us to continue to invest in marketing and product development, with some important product features being successfully released in the quarter. We feel well positioned to execute as the economic environment improves and believe our products will be even more relevant to our research customers.”
Fiscal Third Quarter 2023 Results
Total revenue was $10.3 million, an 18.1% increase from $8.8 million in the year-ago quarter as both platform and transaction revenue increased from the prior period.
Platform subscription revenue increased 26% to $2.2 million compared to $1.8 million in the year-ago quarter. The increase was primarily due to an increase in the total number of paid Platform deployments, including 25 net deployments added in the quarter, as well as upsells to existing customers. The quarter ended with annual recurring revenue of $9.1 million, up 24% year-over-year (see the company’s definition of annual recurring revenue below).
Transaction revenue was $8.1 million, compared to $7.0 million in the third quarter of fiscal 2022. The increase was primarily due to organic growth and higher transaction volumes related to contracts transferred from FIZ Karlsruhe effective on January 1, 2023. The transaction customer count for the quarter was 1,417, compared to 1,193 customers in the prior-year quarter (see the company's definition of active customer accounts and transactions below).
Total gross margin improved 190 basis points from the prior-year quarter to 38.9%. The increase was primarily driven by a continued revenue mix shift to the higher-margin Platforms business as well as increased margins in the transactions business.
Total operating expenses were $3.9 million, compared to $3.6 million in the third quarter of 2022. The increase was primarily due to higher sales and marketing and general and administrative costs, the latter related to recruiting fees expensed in the period.
Net income in the third quarter was $237,000, or $0.01 per diluted share, compared to a net loss of ($341,000), or ($0.01) per share, in the prior-year quarter. Adjusted EBITDA was $559,000, compared to $94,000 in the year-ago quarter (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, May 11, 2023
Time: 5:00 p.m. ET (2:00 p.m. PT)
Dial-in number: 1-412-317-5180
Conference ID: 10178138
The conference call will be broadcast live and available for replay until June 11, 2023 by dialing 1-412-317-6671 and using the replay ID 10178138, and via the investor relations section of the company's website at http://researchsolutions.investorroom.com/.
Fiscal Third Quarter Financial and Operational Summary Tables vs.Prior-Year Quarter
| Quarter<br> Ended March 31, | Nine<br> Months Ended March 31, | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | Change | %<br> Change | 2023 | 2022 | Change | %<br> Change | |||||||||||||||||
| Revenue: | ||||||||||||||||||||||||
| Platforms | $ | 2,249,632 | $ | 1,786,224 | $ | 463,408 | 25.9 | % | $ | 6,379,871 | $ | 4,900,927 | $ | 1,478,944 | 30.2 | % | ||||||||
| Transactions | $ | 8,092,794 | $ | 6,971,128 | 1,121,666 | 16.1 | % | $ | 21,363,864 | $ | 19,471,216 | 1,892,648 | 9.7 | % | ||||||||||
| Total Revenue | 10,342,426 | 8,757,352 | 1,585,074 | 18.1 | % | 27,743,735 | 24,372,143 | 3,371,592 | 13.8 | % | ||||||||||||||
| Gross Profit: | ||||||||||||||||||||||||
| Platforms | 1,981,002 | 1,567,173 | 413,829 | 26.4 | % | 5,627,695 | 4,204,552 | 1,423,144 | 33.8 | % | ||||||||||||||
| Transactions | 2,046,271 | 1,671,324 | 374,947 | 22.4 | % | 5,152,653 | 4,531,980 | 620,673 | 13.7 | % | ||||||||||||||
| Total Gross<br> Profit | 4,027,273 | 3,238,497 | 788,776 | 24.4 | % | 10,780,348 | 8,736,532 | 2,043,817 | 23.4 | % | ||||||||||||||
| Gross profit<br> as a % of revenue: | ||||||||||||||||||||||||
| Platforms | 88.1 | % | 87.7 | % | 0.3 | % | 88.2 | % | 85.8 | % | 2.4 | % | ||||||||||||
| Transactions | 25.3 | % | 24.0 | % | 1.3 | % | 24.1 | % | 23.3 | % | 0.8 | % | ||||||||||||
| Total Gross<br> Profit | 38.9 | % | 37.0 | % | 2.0 | % | 38.9 | % | 35.8 | % | 3.0 | % | ||||||||||||
| Operating<br> Expenses: | ||||||||||||||||||||||||
| Sales and<br> marketing | 642,624 | 543,496 | 99,128 | 18.2 | % | 1,830,448 | 1,584,804 | 245,644 | 15.5 | % | ||||||||||||||
| Technology<br> and product development | 953,677 | 971,959 | (18,282 | ) | -1.9 | % | 2,751,099 | 2,661,655 | 89,444 | 3.4 | % | |||||||||||||
| General and<br> administrative | 1,871,591 | 1,629,371 | 242,220 | 14.9 | % | 5,004,678 | 4,742,729 | 261,950 | 5.5 | % | ||||||||||||||
| Depreciation<br> and amortization | 18,332 | 4,988 | 13,344 | 267.5 | % | 30,486 | 12,144 | 18,342 | 151.0 | % | ||||||||||||||
| Stock-based<br> compensation | 480,458 | 399,234 | 81,224 | 20.3 | % | 1,264,522 | 870,883 | 393,639 | 45.2 | % | ||||||||||||||
| Foreign<br> currency translation loss (gain) | (72,547 | ) | 29,394 | (101,941 | ) | NM | (84,210 | ) | 52,619 | (136,829 | ) | NM | ||||||||||||
| Total<br> Operating Expenses | 3,894,135 | 3,578,442 | 315,693 | 8.8 | % | 10,797,023 | 9,924,834 | 872,190 | 8.8 | % | ||||||||||||||
| Income<br> (loss) from operations | 133,139 | (339,944 | ) | 473,083 | 139.2 | % | (16,675 | ) | (1,188,302 | ) | 1,171,627 | 98.6 | % | |||||||||||
| Other Income<br> (Expenses): | ||||||||||||||||||||||||
| Other income<br> (expense) | 104,331 | 237 | 104,094 | NM | 218,095 | 777 | 217,318 | NM | ||||||||||||||||
| Provision<br> for income taxes | (628 | ) | (822 | ) | 194 | -23.6 | % | (5,543 | ) | (6,592 | ) | 1,049 | 15.9 | % | ||||||||||
| Gain<br> on sale of disc'd operations | - | - | - | - | - | - | ||||||||||||||||||
| Total<br> Other Income (Expenses): | 103,703 | (585 | ) | 104,288 | NM | 212,552 | (5,815 | ) | 218,367 | NM | ||||||||||||||
| Net<br> income (loss) | $ | 236,842 | $ | (340,529 | ) | 577,371 | 169.6 | % | $ | 195,877 | $ | (1,194,117 | ) | 1,389,994 | 116.4 | % | ||||||||
| NM | NM | |||||||||||||||||||||||
| Adjusted<br> EBITDA | $ | 559,382 | $ | 93,672 | $ | 465,710 | 497.2 | % | $ | 1,194,123 | $ | (252,656 | ) | $ | 1,446,779 | NM | ||||||||
| Quarter<br> Ended March 31, | Nine<br> Months Ended March 31, | |||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| 2023 | 2022 | Change | %<br> Change | 2023 | 2022 | Change | %<br> Change | |||||||||||||||||
| Platforms: | ||||||||||||||||||||||||
| ARR (Annual<br> recurring revenue): | ||||||||||||||||||||||||
| Beginning<br> of Period | $ | 8,776,977 | $ | 6,848,613 | $ | 1,928,363 | 28.2 | % | $ | 7,922,188 | $ | 5,880,179 | $ | 2,042,009 | 34.7 | % | ||||||||
| Incremental<br> ARR | 330,704 | 500,233 | (169,529 | ) | -33.9 | % | 1,185,493 | 1,468,668 | (283,175 | ) | -19.3 | % | ||||||||||||
| End of Period | $ | 9,107,681 | $ | 7,348,847 | $ | 1,758,834 | 23.9 | % | $ | 9,107,681 | $ | 7,348,847 | $ | 1,758,834 | 23.9 | % | ||||||||
| Deployments: | ||||||||||||||||||||||||
| Beginning of Period | 790 | 646 | 144 | 22.3 | % | 733 | 553 | 180 | 32.5 | % | ||||||||||||||
| Incremental<br> Deployments | 25 | 34 | (9 | ) | -26.5 | % | 82 | 127 | (45 | ) | -35.4 | % | ||||||||||||
| End of Period | 815 | 680 | 135 | 19.9 | % | 815 | 680 | 135 | 19.9 | % | ||||||||||||||
| ASP (Average sales price): | ||||||||||||||||||||||||
| Beginning of Period | $ | 11,110 | $ | 10,602 | $ | 509 | 4.8 | % | $ | 10,808 | $ | 10,633 | $ | 175 | 1.6 | % | ||||||||
| End of Period | $ | 11,175 | $ | 10,807 | $ | 368 | 3.4 | % | $ | 11,175 | $ | 10,807 | $ | 368 | 3.4 | % | ||||||||
| Transaction<br> Customers: | ||||||||||||||||||||||||
| Corporate<br> customers | 1,116 | 904 | 212 | 23.5 | % | 986 | 875 | 112 | 12.8 | % | ||||||||||||||
| Academic<br> customers | 301 | 289 | 12 | 4.2 | % | 300 | 300 | - | 0.0 | % | ||||||||||||||
| Total customers | 1,417 | 1,193 | 224 | 18.8 | % | 1,287 | 1,175 | 112 | 9.5 | % |
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.
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<br> Ended March 31, | Nine<br> Months Ended March 31, | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | Change | %<br> Change | 2023 | 2022 | Change | %<br> Change | |||||||||||||||||
| Net<br> Income (loss) | $ | 236,842 | $ | (340,529 | ) | $ | 577,371 | 169.6 | % | $ | 195,877 | $ | (1,194,117 | ) | $ | 1,389,994 | 116.4 | % | ||||||
| Add<br> (deduct): | - | |||||||||||||||||||||||
| Other income<br> (expense) | (104,331 | ) | (237 | ) | (104,094 | ) | NM | (218,095 | ) | (777 | ) | (217,318 | ) | NM | ||||||||||
| Foreign currency<br> translation loss (gain) | (72,547 | ) | 29,394 | (101,941 | ) | NM | (84,210 | ) | 52,619 | (136,829 | ) | NM | ||||||||||||
| Provision<br> for income taxes | 628 | 822 | (194 | ) | -23.6 | % | 5,543 | 6,592 | (1,049 | ) | -15.9 | % | ||||||||||||
| Depreciation<br> and amortization | 18,332 | 4,988 | 13,344 | 267.5 | % | 30,486 | 12,144 | 18,342 | 151.0 | % | ||||||||||||||
| Stock-based<br> compensation | 480,458 | 399,234 | 81,224 | 20.3 | % | 1,264,522 | 870,883 | 393,639 | 45.2 | % | ||||||||||||||
| Gain<br> on sale of disc. ops. | - | - | - | - | - | - | ||||||||||||||||||
| Adjusted<br> EBITDA | $ | 559,382 | $ | 93,672 | $ | 465,710 | 497.2 | % | $ | 1,194,123 | $ | (252,656 | ) | $ | 1,446,779 | 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 visitwww.researchsolutions.com and www.reprintsdesk.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 additional customers, potential acquisitions 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
| June 30, | |||||
| 2022 | |||||
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | 12,132,899 | $ | 10,603,175 | ||
| Accounts receivable, net of allowance of 49,670 and 94,144, respectively | 6,797,240 | 5,251,545 | |||
| Prepaid expenses and other current assets | 398,726 | 276,026 | |||
| Prepaid royalties | 798,892 | 846,652 | |||
| Total current assets | 20,127,757 | 16,977,398 | |||
| Other assets: | |||||
| Property and equipment, net of accumulated depreciation of 868,324 and 840,996, respectively | 53,766 | 47,985 | |||
| Intangible assets, net of accumulated amortization of 11,046 and 0, respectively | 430,788 | — | |||
| Deposits and other assets | 997 | 893 | |||
| Total assets | 20,613,308 | $ | 17,026,276 | ||
| Liabilities and Stockholders’ Equity | |||||
| Current liabilities: | |||||
| Accounts payable and accrued expenses | 7,696,205 | $ | 6,604,032 | ||
| Deferred revenue | 6,524,570 | 5,538,526 | |||
| Total current liabilities | 14,220,775 | 12,142,558 | |||
| 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; 29,500,764 and 27,075,648 shares issued and outstanding, respectively | 29,501 | 27,076 | |||
| Additional paid-in capital | 29,386,169 | 28,072,855 | |||
| Accumulated deficit | (22,898,395 | ) | (23,094,272 | ) | |
| Accumulated other comprehensive loss | (124,742 | ) | (121,941 | ) | |
| Total stockholders’ equity | 6,392,533 | 4,883,718 | |||
| Total liabilities and stockholders’ equity | 20,613,308 | $ | 17,026,276 |
All values are in US Dollars.
Research Solutions, Inc. and Subsidiaries
Consolidated Statements of Operations and OtherComprehensive Loss
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, | March 31, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Revenue: | ||||||||||||
| Platforms | $ | 2,249,632 | $ | 1,786,224 | $ | 6,379,871 | $ | 4,900,927 | ||||
| Transactions | 8,092,794 | 6,971,128 | 21,363,864 | 19,471,216 | ||||||||
| Total revenue | 10,342,426 | 8,757,352 | 27,743,735 | 24,372,143 | ||||||||
| Cost of revenue: | ||||||||||||
| Platforms | 268,630 | 219,051 | 752,176 | 696,375 | ||||||||
| Transactions | 6,046,523 | 5,299,804 | 16,211,211 | 14,939,236 | ||||||||
| Total cost of revenue | 6,315,153 | 5,518,855 | 16,963,387 | 15,635,611 | ||||||||
| Gross profit | 4,027,273 | 3,238,497 | 10,780,348 | 8,736,532 | ||||||||
| Operating expenses: | ||||||||||||
| Selling, general and administrative | 3,875,802 | 3,573,454 | 10,766,537 | 9,912,690 | ||||||||
| Depreciation and amortization | 18,332 | 4,988 | 30,486 | 12,144 | ||||||||
| Total operating expenses | 3,894,134 | 3,578,442 | 10,797,023 | 9,924,834 | ||||||||
| Income (loss) from operations | 133,139 | (339,945 | ) | (16,675 | ) | (1,188,302 | ) | |||||
| Other income | 104,331 | 237 | 218,095 | 777 | ||||||||
| Income (loss) from operations before provision for income taxes | 237,470 | (339,708 | ) | 201,420 | (1,187,525 | ) | ||||||
| Provision for income taxes | (628 | ) | (822 | ) | (5,543 | ) | (6,592 | ) | ||||
| Net income (loss) | 236,842 | (340,530 | ) | 195,877 | (1,194,117 | ) | ||||||
| Other comprehensive income (loss): | ||||||||||||
| Foreign currency translation | (4,149 | ) | 1,609 | (2,801 | ) | (1,181 | ) | |||||
| Comprehensive income (loss) | $ | 232,693 | $ | (338,921 | ) | $ | 193,076 | $ | (1,195,298 | ) | ||
| Basic income (loss) per common share: | ||||||||||||
| Net income (loss) per share | $ | 0.01 | $ | (0.01 | ) | $ | 0.01 | $ | (0.05 | ) | ||
| Weighted average common shares outstanding | 26,929,314 | 26,512,195 | 26,820,557 | 26,392,949 | ||||||||
| Diluted income (loss) per common share: | ||||||||||||
| Net income (loss) per share | $ | 0.01 | $ | (0.01 | ) | $ | 0.01 | $ | (0.05 | ) | ||
| Weighted average common shares outstanding | 29,791,719 | 26,512,195 | 28,837,774 | 26,392,949 |
Research Solutions, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
| Nine Months Ended | ||||||
|---|---|---|---|---|---|---|
| March 31, | ||||||
| 2023 | 2022 | |||||
| Cash flow from operating activities: | ||||||
| Net income (loss) | $ | 195,877 | $ | (1,194,117 | ) | |
| Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||
| Depreciation and amortization | 30,486 | 12,144 | ||||
| Fair value of vested stock options | 338,973 | 424,450 | ||||
| Fair value of vested restricted common stock | 925,550 | 446,433 | ||||
| Fair value of vested unrestricted common stock | 68,272 | — | ||||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable | (1,545,695 | ) | (904,915 | ) | ||
| Prepaid expenses and other current assets | (122,700 | ) | (67,984 | ) | ||
| Prepaid royalties | 47,760 | (54,287 | ) | |||
| Accounts payable and accrued expenses | 947,789 | 397,088 | ||||
| Deferred revenue | 986,044 | 538,477 | ||||
| Net cash provided by (used in) operating activities | 1,872,356 | (402,711 | ) | |||
| Cash flow from investing activities: | ||||||
| Purchase of property and equipment | (29,976 | ) | (34,251 | ) | ||
| Payment for non-refundable deposit for asset acquisition | (297,450 | ) | — | |||
| Net cash used in investing activities | (327,426 | ) | (34,251 | ) | ||
| Cash flow from financing activities: | ||||||
| Proceeds from the exercise of stock options | 57,500 | 97,688 | ||||
| Proceeds from the exercise of warrants | — | 59,500 | ||||
| Common stock repurchase | (74,556 | ) | (82,053 | ) | ||
| Net cash provided by (used in) financing activities | (17,056 | ) | 75,135 | |||
| Effect of exchange rate changes | 1,850 | (1,989 | ) | |||
| Net increase (decrease) in cash and cash equivalents | 1,529,724 | (363,816 | ) | |||
| Cash and cash equivalents, beginning of period | 10,603,175 | 11,004,337 | ||||
| Cash and cash equivalents, end of period | $ | 12,132,899 | $ | 10,640,521 | ||
| Supplemental disclosures of cash flow information: | ||||||
| Cash paid for income taxes | $ | 5,543 | $ | 6,592 |
Contact
Steven Hooser or John Beisler
Three Part Advisors
(214) 872-2710
shooser@threepa.com; jbeisler@threepa.com