8-K
Research Solutions, Inc. (RSSS)
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)
August 26, 2020
____________________________
Research Solutions, Inc.
(Exact name of registrant as specified in charter)
Nevada
(State or other Jurisdiction of Incorporation or Organization)
| 0-53501<br><br> <br>(Commission File Number) | 11-3797644(IRS Employer Identification No.) | |
|---|---|---|
| 16350 Ventura Boulevard, Suite D #811<br><br> <br>Encino, CA 91436<br><br> <br>(Address of Principal Executive<br> 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<br>pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ¨ | Soliciting material pursuant to Rule 14a-12(b) under<br>the Exchange Act (17 CFR 240.14a-12(b)) |
| --- | --- |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b)<br>under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c)<br>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 Operationsand Financial Condition.
On August 26, 2020, the Registrant issued a press release announcing preliminary financial results for its fiscal fourth quarter ended June 30, 2020. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, 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 under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statementsand Exhibits.
| (d) | Exhibits |
|---|---|
| 99.1 | Press release dated August 26, 2020, titled “Research Solutions Reports Preliminary Fiscal<br>Fourth Quarter 2020 Results” |
| --- | --- |
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: August 26, 2020 | By: | /s/ Alan Urban |
| Alan Urban | ||
| Chief Financial Officer |
Exhibit 99.1
FOR IMMEDIATE RELEASE
ResearchSolutions Reports Preliminary Fiscal Fourth Quarter 2020 Results
CompanyExpects to Report $4.4 million of Annual Recurring Revenue
ENCINO,Calif., August 26, 2020 — Research Solutions, Inc. (NASDAQ: RSSS), a pioneer in providing cloud-based workflow solutions for R&D driven organizations, today announced selected preliminary results for its fiscal fourth quarter ended June 30, 2020.
Based on preliminary unaudited information, Research Solutions expects total revenue in the fourth quarter of fiscal 2020 to increase 5.5% to approximately $7.9 million compared to $7.5 million in the same quarter last year. Platform subscription revenue is expected to increase 33% to approximately $1.1 million. Annual recurring revenue is expected to increase 38% to approximately $4.4 million (see the company's definition of annual recurring revenue below), and the number of paid platform deployments is expected to increase 33% to 401. Net income is expected to be approximately breakeven, with Adjusted EBITDA of approximately $145,000. In addition, Research Solutions expects transaction revenue to increase 2% to approximately $6.8 million.
Cash and cash equivalents at June 30, 2020, are expected to amount to approximately $9.3 million compared to $8.2 million at March 31, 2020. As of June 30, 2020 the company had no long-term liabilities or other debt and full access to a revolving line of credit for the lesser of $2.5 million, or 80% of eligible accounts receivable..
"Our preliminary fourth quarter results reflect continued momentum in our Platforms business, as more users find value in the offering, which was strengthened through our recent launch of Article Galaxy+” said Peter Derycz, President and CEO of Research Solutions. “We are also pleased to increase our cash position while remaining debt-free.”
“In the face of the COVID-19 pandemic, our R&D-based clients including large and small corporations and academic institutions are relying on our seamless access to scientific research.”
Research Solutions expects to report its full fiscal fourth quarter 2020 results on September 24, 2020. Information on the call details will be provided in a separate press release.
Annual RecurringRevenue
The company defines annual recurring revenue as the value of contracted Platform subscription recurring revenue normalized to a one-year period.
About ResearchSolutions and Reprints Desk
Research Solutions, Inc. (NASDAQ: RSSS) is a pioneer in providing seamless access to scientific research and simplifies how organizations and individual researchers discover, acquire, and manage scholarly journal articles, book chapters and other content in scientific, technical, and medical (STM) research. More than 70 percent of the top pharmaceutical companies, prestigious universities, and emerging businesses rely on Article Galaxy a cloud-based SaaS research platform, for simplified and lowest cost access to the latest scientific research and data. Featuring an ecosystem of app-like Gadgets for a personalized research experience, Article Galaxy offers individual as well as enterprise plans, coupled with unparalleled, 24/7 customer support. For more information and details, please visit www.researchsolutions.com and www.reprintsdesk.com
Forward-LookingStatements
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 the company’s expected results for the fourth fiscal quarter of 2020. 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.
**16350 Ventura Blvd., Suite D #811, Encino, CA 91436 – USA | P: +1 \(310\) 477-0354 F: +1 \(323\) 375-1576 | www.reprintsdesk.com**
Contact
Steven Hooser
Three Part Advisors
shooser@threepa.com
(214) 872-2710
**16350 Ventura Blvd., Suite D #811, Encino, CA 91436 – USA | P: +1 \(310\) 477-0354 F: +1 \(323\) 375-1576 | www.reprintsdesk.com**