10-Q - RSSS - Equibles

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: March 31, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to _____________

Commission File No. 001-39256

RESEARCH SOLUTIONS, INC.

(Exact name of registrant as specified in its charter)

Nevada	11-3797644
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
Address not applicable^1^	N/A
(Address of principal executive offices)	(Zip Code)

( 310 ) 477-0354

(Registrant’s telephone number, including area code)

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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer þ	Smaller reporting company þ
	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. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date.

Title of Class	Number of Shares Outstanding on May 10, 2022
Common Stock, $0.001 par value	27,064,215

^1^ In November 2019, we became a fully remote company. Accordingly, we do not currently have principal executive offices.

Table of Contents TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION	3
Item 1. Condensed Consolidated Financial Statements (unaudited)	3
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3. Quantitative and Qualitative Disclosures About Market Risk	30
Item 4. Controls and Procedures	31
PART II — OTHER INFORMATION	32
Item 1A. Risk Factors	32
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 6. Exhibits	33
SIGNATURES	34

Table of Contents PART 1 — FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

Research Solutions, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets


	****	March 31,		****
	****	2022		****	June 30,
		(unaudited)			2021
Assets
Current assets:
Cash and cash equivalents		$	10,640,521		$	11,004,337
Accounts receivable, net of allowance of $80,655 and $51,495, respectively			5,622,368			4,717,453
Prepaid expenses and other current assets			338,236			270,252
Prepaid royalties			959,208			904,921
Total current assets			17,560,333			16,896,963

Other assets:
Property and equipment, net of accumulated depreciation of $836,339 and $824,123, respectively			43,671			20,755
Deposits and other assets			905			906
Total assets		$	17,604,909		$	16,918,624

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses		$	7,084,276		$	6,687,188
Deferred revenue			5,342,828			4,804,351
Total current liabilities			12,427,104			11,491,539

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; 27,000,844 and 26,498,215 shares issued and outstanding, respectively			27,001			26,498
Additional paid-in capital			27,927,567			26,982,052
Accumulated deficit			(22,656,005)			(21,461,888)
Accumulated other comprehensive loss			(120,758)			(119,577)
Total stockholders’ equity			5,177,805			5,427,085
Total liabilities and stockholders’ equity		$	17,604,909		$	16,918,624

See notes to condensed consolidated financial statements

Table of Contents Research Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss)

(Unaudited)


		Three Months Ended						Nine Months Ended
		March 31,						March 31,
	****	2022		****	2021		****	2022		****	2021

Revenue:
Platforms		$	1,786,224		$	1,344,183		$	4,900,927		$	3,706,406
Transactions			6,971,128			6,996,349			19,471,216			19,832,286
Total revenue			8,757,352			8,340,532			24,372,143			23,538,692

Cost of revenue:
Platforms			219,051			233,696			696,375			654,651
Transactions			5,299,804			5,404,196			14,939,236			15,340,243
Total cost of revenue			5,518,855			5,637,892			15,635,611			15,994,894
Gross profit			3,238,497			2,702,640			8,736,532			7,543,798

Operating expenses:
Selling, general and administrative			3,573,454			2,650,504			9,912,690			7,728,990
Depreciation and amortization			4,988			2,066			12,144			8,828
Total operating expenses			3,578,442			2,652,570			9,924,834			7,737,818

Income (loss) from operations			(339,945)			50,070			(1,188,302)			(194,020)

Other income			237			250			777			884

Income (loss) from operations before provision for income taxes			(339,708)			50,320			(1,187,525)			(193,136)
Provision for income taxes			(822)			(572)			(6,592)			(3,077)

Net income (loss)			(340,530)			49,748			(1,194,117)			(196,213)

Other comprehensive income (loss):
Foreign currency translation			1,609			(3,333)			(1,181)			3,348
Comprehensive income (loss)		$	(338,921)		$	46,415		$	(1,195,298)		$	(192,865)

Basic income (loss) per common share:
Net income (loss) per share		$	(0.01)		$	—		$	(0.05)		$	(0.01)
Weighted average common shares outstanding			26,512,195			26,027,665			26,392,949			25,966,072

Diluted income (loss) per common share:
Net income (loss) per share		$	(0.01)		$	—		$	(0.05)		$	(0.01)
Weighted average common shares outstanding			26,512,195			26,565,892			26,392,949			25,966,072

See notes to condensed consolidated financial statements

Table of Contents Research Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

For the Three and Nine Months Ended March 31, 2022

(Unaudited)


							Additional						Other			Total
		Common Stock					Paid-in			Accumulated			Comprehensive			Stockholders’
	****	Shares	****	Amount		****	Capital		****	Deficit		****	Loss		****	Equity

Balance, December 31, 2021		26,817,056		$	26,817		$	27,475,741		$	(22,315,475)		$	(122,367)		$	5,064,716

Fair value of vested stock options		—			—			296,782			—			—			296,782

Fair value of vested restricted common stock		42,214			42			102,410			—			—			102,452

Repurchase of common stock		(6,086)			(6)			(14,235)			—			—			(14,241)

Common stock issued upon exercise of stock options		147,660			148			66,869			—			—			67,017

Net loss for the period		—			—			—			(340,530)			—			(340,530)

Foreign currency translation		—			—			—			—			1,609			1,609

Balance, March 31, 2022		27,000,844		$	27,001		$	27,927,567		$	(22,656,005)		$	(120,758)		$	5,177,805

Balance, July 1, 2021		26,498,215		$	26,498		$	26,982,052		$	(21,461,888)		$	(119,577)		$	5,427,085

Fair value of vested stock options		—			—			424,450			—			—			424,450

Fair value of vested restricted common stock		293,211			293			446,140			—			—			446,433

Repurchase of common stock		(33,402)			(34)			(82,019)			—			—			(82,053)

Common stock issued upon exercise of stock options		192,820			194			97,494			—			—			97,688

Common stock issued upon exercise of warrants		50,000			50			59,450			—			—			59,500

Net loss for the period		—			—			—			(1,194,117)			—			(1,194,117)

Foreign currency translation		—			—			—			—			(1,181)			(1,181)

Balance, March 31, 2022		27,000,844		$	27,001		$	27,927,567		$	(22,656,005)		$	(120,758)		$	5,177,805

See notes to condensed consolidated financial statements

Table of Contents Research Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

For the Three and Nine Months Ended March 31, 2021

(Unaudited)


							Additional						Other			Total
		Common Stock					Paid-in			Accumulated			Comprehensive			Stockholders’
	****	Shares	****	Amount		****	Capital		****	Deficit		****	Loss		****	Equity

Balance, December 31, 2020		26,266,008		$	26,266		$	26,709,401		$	(21,422,760)		$	(118,357)		$	5,194,550

Fair value of vested stock options		—			—			85,151			—			—			85,151

Fair value of vested restricted common stock		20,079			20			94,174			—			—			94,194

Repurchase of common stock		(10,750)			(11)			(23,101)			—			—			(23,112)

Repurchase of stock options and warrants		—			—			(308,313)			—			—			(308,313)

Common stock issued upon exercise of stock options		76,671			77			74,673			—			—			74,750

Net income for the period		—			—			—			49,748			—			49,748

Foreign currency translation		—			—			—			—			(3,333)			(3,333)

Balance, March 31, 2021		26,352,008		$	26,352		$	26,631,985		$	(21,373,012)		$	(121,690)		$	5,163,635

Balance, July 1, 2020		26,032,263		$	26,032		$	26,134,819		$	(21,176,799)		$	(125,038)		$	4,859,014

Fair value of vested stock options		—			—			504,936			—			—			504,936

Fair value of vested restricted common stock		163,553			163			280,985			—			—			281,148

Repurchase of common stock		(67,417)			(67)			(150,319)			—			—			(150,386)

Repurchase of stock options and warrants		—			—			(308,313)			—			—			(308,313)

Common stock issued upon exercise of stock options		158,609			159			88,691			—			—			88,850

Common stock issued upon exercise of warrants		65,000			65			81,186			—			—			81,251

Net loss for the period		—			—			—			(196,213)			—			(196,213)

Foreign currency translation		—			—			—			—			3,348			3,348

Balance, March 31, 2021		26,352,008		$	26,352		$	26,631,985		$	(21,373,012)		$	(121,690)		$	5,163,635

See notes to condensed consolidated financial statements

Table of Contents Research Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)


		Nine Months Ended
		March 31,
	****	2022		****	2021

Cash flow from operating activities:
Net loss		$	(1,194,117)		$	(196,213)
Adjustment to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization			12,144			8,828
Amortization of lease right			—			72,331
Fair value of vested stock options			424,450			504,936
Fair value of vested restricted common stock			446,433			281,148
Changes in operating assets and liabilities:
Accounts receivable			(904,915)			(563,829)
Prepaid expenses and other current assets			(67,984)			(75,473)
Prepaid royalties			(54,287)			(23,146)
Deposits and other assets			—			5,360
Accounts payable and accrued expenses			397,088			1,208,474
Deferred revenue			538,477			1,076,966
Lease liability			—			(79,326)
Net cash provided by (used in) operating activities			(402,711)			2,220,056

Cash flow from investing activities:
Purchase of property and equipment			(34,251)			(11,853)
Net cash used in investing activities			(34,251)			(11,853)

Cash flow from financing activities:
Proceeds from the exercise of stock options			97,688			88,850
Proceeds from the exercise of warrants			59,500			81,251
Common stock repurchase			(82,053)			(150,386)
Repurchase of stock options and warrants			—			(308,313)
Net cash provided by (used in) financing activities			75,135			(288,598)

Effect of exchange rate changes			(1,989)			2,401
Net increase (decrease) in cash and cash equivalents			(363,816)			1,922,006
Cash and cash equivalents, beginning of period			11,004,337			9,311,556
Cash and cash equivalents, end of period		$	10,640,521		$	11,233,562

Supplemental disclosures of cash flow information:
Cash paid for income taxes		$	6,592		$	3,077

See notes to condensed consolidated financial statements

Table of Contents RESEARCH SOLUTIONS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Nine Months Ended March 31, 2022 and 2021 (Unaudited)

Note 1. Organization, Nature of Business and Basis of Presentation

Organization

Research Solutions, Inc. (the “Company,” “Research Solutions,” “we,” “us” or “our”) was incorporated in the State of Nevada on November 2, 2006, and is a publicly traded holding company with two wholly owned subsidiaries: Reprints Desk, Inc., a Delaware corporation and Reprints Desk Latin America S. de R.L. de C.V, an entity organized under the laws of Mexico.

Nature of Business

We provide two service offerings to our customers: a cloud-based software-as-a-service (“SaaS”) research platform (“Platforms”) typically sold via annual auto-renewing license agreements and the sale of published scientific, technical, and medical (“STM”) content sold as individual articles (“Transactions”) either stand alone or via the Platform. When customers utilize the Platform to purchase Transactions it is packaged as a single solution that enables life science and other research intensive organizations to accelerate their research and development activities with faster, access and management of STM articles used throughout the intellectual property development lifecycle. The Platform typically delivers a ROI to the customer via more effectively managing Transaction costs and saving researchers time during the research process.

Platforms

Our cloud-based SaaS research Platform consists of proprietary software and Internet-based interfaces sold to customers for an annual subscription fee. Legacy functionality allows customers to initiate orders, route orders for the lowest cost acquisition, manage transactions, obtain spend and usage reporting, automate authentication, and connect seamlessly to in-house and third-party software systems. Customers can also enhance the information resources they already own or license and collaborate around bibliographic information.

Additional functionality has recently been added to our Platform in the form of interactive app-like components. An alternative to manual data filtering, identification and extraction, the apps are designed to gather, augment, and extract data across a variety of formats, including bibliographic citations, tables of contents, RSS feeds, PDF files, XML feeds, and web content. We continue to develop new apps in order to build an ecosystem of apps. Together, these apps will provide researchers with an “all in one” toolkit, delivering efficiencies in core research workflows and knowledge creation processes.

Our Platform is deployed as a single, multi-tenant system across our entire customer base. Customers securely access the Platform through online web interfaces and via web service APIs that enable customers to leverage Platform features and functionality from within in-house and third-party software systems. The Platform can also be configured to satisfy a customer’s individual preferences. We leverage our Platform’s efficiencies in scalability, stability and development costs to fuel rapid innovation and competitive advantage.

Transactions

Our Platform provides our customers with a single source to the universe of published STM content that includes over 70 million existing STM articles and over one million newly published STM articles each year. STM content is sold to our customers on a transaction basis. Researchers and knowledge workers in life science and other research-intensive organizations generally require single copies of published STM journal articles for use in their research activities. These individuals are our primary users.

Table of Contents as single article delivery or document delivery. We also obtain the necessary permission licenses from the content publisher or other rights holder so that our customer’s use complies with applicable copyright laws. We have arrangements with hundreds of content publishers that allow us to distribute their content. The majority of these publishers provide us with electronic access to their content, which allows us to electronically deliver single articles to our customers often in a matter of minutes.

Principles of Consolidation

The accompanying financial statements are consolidated and include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation.

Basis of Presentation

The accompanying condensed consolidated financial statements are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2021 filed with the SEC. The condensed consolidated balance sheet as of June 30, 2021 included herein was derived from the audited consolidated financial statements as of that date, but does not include all disclosures, including notes, required by GAAP.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to fairly present the Company’s financial position and results of operations for the interim periods reflected. Except as noted, all adjustments contained herein are of a normal recurring nature. Results of operations for the fiscal periods presented herein are not necessarily indicative of fiscal year-end results.

Note 2. Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates.

These estimates and assumptions include estimates for reserves of uncollectible accounts, accruals for potential liabilities, assumptions made in valuing equity instruments issued for services or acquisitions, and realization of deferred tax assets.

Concentration of Credit Risk

Financial instruments, which potentially subject the Company to concentrations of credit risk, consist of cash and cash equivalents and accounts receivable. The Company places its cash with high quality financial institutions and at times may exceed the FDIC $250,000 insurance limit. The Company does not anticipate incurring any losses related to these credit risks. The Company extends credit based on an evaluation of the customer’s financial condition, generally without collateral. Exposure to losses on receivables is principally dependent on each customer’s financial condition. The Company monitors its exposure for credit losses and intends to maintain allowances for anticipated losses, as required.

Cash denominated in Euros and British Pounds with an aggregate US Dollar equivalent of $963,825 and $138,488 at March 31, 2022 and June 30, 2021, respectively, was held by Reprints Desk in accounts at financial institutions located in Europe. 9

Table of Contents The Company has no customers that represent 10% of revenue or more for the three and nine months ended March 31, 2022 and 2021.

The following table summarizes accounts receivable concentrations:


	As of
	March 31,			June 30,
	2022	****	****	2021
Customer A	*			14	%

* Less than 10%

The following table summarizes vendor concentrations:


		Three Months Ended					Nine Months Ended
		March 31,					March 31,
	****	2022	****	****	2021		2022	****	****	2021
Vendor A		22	%		22	%	21	%		19	%
Vendor B		14	%		13	%	13	%		13	%

Revenue Recognition

The Company accounts for revenue in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606), ("ASC 606"). The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. The Company adopted the guidance of ASC 606 on July 1, 2018.

Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company derives its revenues from two sources: annual licenses that allow customers to access and utilize certain premium features of our cloud-based SaaS research intelligence platform (“Platforms”) and the transactional sale of STM content managed, sourced and delivered through the Platform (“Transactions”).

The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements:

●	identify the contract with a customer;
●	identify the performance obligations in the contract;
---	---
●	determine the transaction price;
---	---
●	allocate the transaction price to performance obligations in the contract; and
---	---
●	recognize revenue as the performance obligation is satisfied.
---	---

Table of Contents Platforms

We charge a subscription fee that allows customers to access and utilize certain premium features of our Platform. Revenue is recognized ratably over the term of the subscription agreement, which is typically one year, provided all other revenue recognition criteria have been met. Billings or payments received in advance of revenue recognition are recorded as deferred revenue.

Transactions

We charge a transactional service fee for the electronic delivery of single articles, and a corresponding copyright fee for the permitted use of the content. We recognize revenue from single article delivery services upon delivery to the customer provided all other revenue recognition criteria have been met.

Revenue by Geographical Region

The following table summarizes revenue by geographical region:


	Three Months Ended							****
	March 31,							****
	2022			****	2021
United States	$	5,027,965	57.4	%	$	4,600,913	55.2	%
Europe		3,159,984	36.1	%		3,134,387	37.6	%
Rest of World		569,403	6.5	%		605,232	7.3	%
Total	$	8,757,352	100	%	$	8,340,532	100	%


	Nine Months Ended
	March 31,
	2022			****	2021
United States	$	14,222,605	58.4	%	$	13,100,900	55.7	%
Europe		8,488,722	34.8	%		8,666,032	36.8	%
Rest of World		1,660,816	6.8	%		1,771,760	7.5	%
Total	$	24,372,143	100	%	$	23,538,692	100	%

Accounts Receivable by Geographical Region

The following table summarizes accounts receivable by geographical region:


	As of March 31, 2022			****	As of June 30, 2021
United States	$	3,345,122	59.5	%	$	2,798,224	59.3	%
Europe		1,979,689	35.2	%		1,650,030	35.0	%
Rest of World		297,557	5.3	%		269,199	5.7	%
Total	$	5,622,368	100	%	$	4,717,453	100	%

Deferred Revenue

Contract liabilities, such as deferred revenue, exist where the Company has the obligation to transfer services to a customer for which the entity has received consideration, or when the consideration is due, from the customer.

Cash payments received or due in advance of performance are recorded as deferred revenue. Deferred revenue is primarily comprised of cloud-based software subscriptions which are generally billed in advance. The deferred revenue balance is presented as a current liability on the Company's consolidated balance sheets. 11

Table of Contents Cost of Revenue

Platforms

Cost of Platform revenue consists primarily of personnel costs of our operations team, and to a lesser extent managed hosting providers and other third-party service and data providers.

Transactions

Cost of Transaction revenue consists primarily of the respective copyright fee for the permitted use of the content, less a discount in most cases, and to a much lesser extent, personnel costs of our operations team and third-party service providers.

Stock-Based Compensation

The Company periodically issues stock options and restricted stock awards to employees and non-employees for services. The Company accounts for such grants issued and vesting based on ASC 718, whereby the value of the award is measured on the date of grant and recognized as compensation expense on the straight-line basis over the vesting period. The Company recognizes the fair value of stock-based compensation within its Statements of Operations with classification depending on the nature of the services rendered.

Under ASC 718, Repurchase or Cancellation of equity awards, the amount of cash or other assets transferred (or liabilities incurred) to repurchase an equity award shall be charged to equity, to the extent that the amount paid does not exceed the fair value of the equity instruments repurchased at the repurchase date. Any excess of the repurchase price over the fair value of the instruments repurchased shall be recognized as additional compensation cost.

Foreign Currency

The accompanying condensed consolidated financial statements are presented in United States dollars, the functional currency of the Company. Capital accounts of foreign subsidiaries are translated into US Dollars from foreign currency at their historical exchange rates when the capital transactions occurred. Assets and liabilities are translated at the exchange rate as of the balance sheet date. Income and expenditures are translated at the average exchange rate of the period. Although the majority of our revenue and costs are in US dollars, the costs of Reprints Desk Latin America are in Mexican Pesos. As a result, currency exchange fluctuations may impact our revenue and the costs of our operations. We currently do not engage in any currency hedging activities.

Gains and losses from foreign currency transactions, which result from a change in exchange rates between the functional currency and the currency in which a foreign currency transaction is denominated, are included in selling, general and administrative expenses and amounted to a loss of $29,394 and $6,648 for the three months ended March 31, 2022 and 2021, respectively and a loss of $52,619 and a gain of $35,070 for the nine months ended March 31, 2022 and 2021, respectively. Cash denominated in Euros and British Pounds with an aggregate US Dollar equivalent of $963,825 and $138,488 at March 31, 2022 and June 30, 2021, respectively, was held in accounts at financial institutions located in Europe. 12

Table of Contents The following table summarizes the exchange rates used:


	Nine Months Ended		Year Ended
	March 31,		June 30,
	2022	2021	2021	2020
Period end Euro : US Dollar exchange rate	1.11	1.17	1.19	1.12
Average period Euro : US Dollar exchange rate	1.15	1.18	1.19	1.11

Period end : US Dollar exchange rate	1.31	1.38	1.38	1.23
Average period : US Dollar exchange rate	1.36	1.32	1.34	1.26

Period end Mexican Peso : US Dollar exchange rate	0.05	0.05	0.05	0.04
Average period Mexican Peso : US Dollar exchange rate	0.05	0.05	0.05	0.05

All values are in British Pounds.

Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period, excluding shares of unvested restricted common stock. Shares of restricted stock are included in the basic weighted average number of common shares outstanding from the time they vest. Diluted earnings per share is computed by dividing the net income applicable to common stockholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued, using the treasury stock method. Shares of restricted stock are included in the diluted weighted average number of common shares outstanding from the date they are granted. Potential common shares are excluded from the computation when their effect is antidilutive. At March 31, 2022 potentially dilutive securities include options to acquire 3,249,617 shares of common stock and unvested restricted common stock of 364,675. At March 31, 2021 potentially dilutive securities include options to acquire 3,261,203 shares of common stock, warrants to acquire 220,000 shares of common stock and unvested restricted common stock of 241,197. The dilutive effect of potentially dilutive securities is reflected in diluted net income per share if the exercise prices were lower than the average fair market value of common shares during the reporting period.

Basic and diluted net loss per common share is the same for the three months ended March 31, 2022 and nine months ended March 31, 2022 and 2021 because all stock options, warrants, and unvested restricted common stock are anti-dilutive. For the three months ended March 31, 2021, the calculation of diluted earnings per share includes unvested restricted common stock, stock options and warrants, calculated under the treasury stock method.

Recently Issued Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires entities to use a forward-looking approach based on current expected credit losses (“CECL”) to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. ASU 2016-13 is effective for the Company beginning January 1, 2023, and early adoption is permitted. The Company does not believe the potential impact of the new guidance and related codification improvements will be material to its financial position, results of operations and cash flows.

Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements.

Note 3. Line of Credit

The Company entered into a Loan and Security Agreement with Silicon Valley Bank (“SVB”) on July 23, 2010, which, as amended, provides for a revolving line of credit for the lesser of $2,500,000, or 80% of eligible accounts receivable. The line of credit matures on February 28, 2024, and is subject to certain financial and performance covenants with which we were in compliance as of March 31, 2022. Financial covenants include maintaining an adjusted quick ratio of unrestricted cash and net accounts receivable, divided by current liabilities plus debt less deferred revenue of at least 13

Table of Contents 1.15 to 1.0. The line of credit bears interest at an annual rate equal to the greater of 1% above the prime rate and 5.0%. The interest rate on the line of credit was 5.0% as of March 31, 2022. The line of credit is secured by the Company’s consolidated assets.

There were no outstanding borrowings under the line as of March 31, 2022 and June 30, 2021, respectively. As of March 31, 2022, there was approximately $2,204,000 of available credit.

Note 4. Stockholders’ Equity

Stock Options

In December 2007, we established the 2007 Equity Compensation Plan (the “2007 Plan”) and in November 2017 we established the 2017 Omnibus Incentive Plan (the “2017 Plan”), collectively (the “Plans”). The Plans were approved by our board of directors and stockholders. The purpose of the Plans is to grant stock and options to purchase our common stock, and other incentive awards, to our employees, directors and key consultants. On November 10, 2016, the maximum number of shares of common stock that may be issued pursuant to awards granted under the 2007 Plan increased from 5,000,000 to 7,000,000. On November 21, 2017, the Company’s stockholders approved the adoption of the 2017 Plan (previously adopted by our board of directors on September 14, 2017), which authorized a maximum of 1,874,513 shares of common stock that may be issued pursuant to awards granted under the 2017 Plan. On November 17, 2020, the Company's stockholders approved an increase in the maximum number of shares of common stock that may be issued pursuant to awards granted under the 2017 Omnibus Incentive Plan from 2,374,513 to 3,374,513. On November 17, 2021, the Company's stockholders approved an increase in the maximum number of shares of common stock that may be issued pursuant to awards granted under the 2017 Omnibus Incentive Plan from 3,374,513 to 6,874,513. Upon adoption of the 2017 Plan we ceased granting incentive awards under the 2007 Plan and commenced granting incentive awards under the 2017 Plan. The shares of our common stock underlying cancelled and forfeited awards issued under the 2017 Plan may again become available for grant under the 2017 Plan. Cancelled and forfeited awards issued under the 2007 Plan that were cancelled or forfeited prior to November 21, 2017 became available for grant under the 2007 Plan. As of March 31, 2022, there were 3,998,967 shares available for grant under the 2017 Plan, and no shares were available for grant under the 2007 Plan. All incentive stock award grants prior to the adoption of the 2017 Plan on November 21, 2017 were made under the 2007 Plan, and all incentive stock award grants after the adoption of the 2017 Plan on November 21, 2017 were made under the 2017 Plan.

The majority of awards issued under the Plan vest immediately or over three years, with a one year cliff vesting period, and have a term of ten years. Stock-based compensation cost is measured at the grant date, based on the fair value of the awards that are ultimately expected to vest, and recognized on a straight-line basis over the requisite service period, which is generally the vesting period.

The following table summarizes vested and unvested stock option activity:


		All Options					Vested Options					Unvested Options
	****		****	Weighted		****		****	Weighted		****		****	Weighted
				Average					Average					Average
				Exercise					Exercise					Exercise
		Shares		Price			Shares		Price			Shares		Price
Outstanding at June 30, 2021		3,258,408		$	1.68		2,930,474		$	1.60		327,934		$	2.46
Granted		307,843			2.22		—			—		307,843			2.22
Options vesting		—			—		402,302			2.25		(402,302)			2.25
Exercised		(316,634)			1.23		(316,634)			1.23		—			—
Forfeited		—			—		—			—		—			—
Repurchased		—			—		—			—		—			—
Outstanding at March 31, 2022		3,249,617		$	1.78		3,016,142		$	1.73		233,475		$	2.46

The weighted average remaining contractual life of all options outstanding as of March 31, 2022 was 5.62 years. The remaining contractual life for options vested and exercisable at March 31, 2022 was 5.36 years. Furthermore, the 14

Table of Contents aggregate intrinsic value of options outstanding and of options vested and exercisable as of March 31, 2022 was $1,607,080, in each case based on the fair value of the Company’s common stock on March 31, 2022.

During the nine months ended March 31, 2022, the Company granted 307,843 options to employees and directors with a fair value of $342,566 which amount will be amortized over the vesting period. The total fair value of options that vested during the nine months ended March 31, 2022 was $424,450 and is included in selling, general and administrative expenses in the accompanying statement of operations. As of March 31, 2022, the amount of unvested compensation related to stock options was $258,807 which will be recorded as an expense in future periods as the options vest. During the nine months ended March 31, 2022, the Company issued 192,820 net shares of common stock upon the exercise of options underlying 316,634 shares of common stock, resulting in net cash proceeds of $97,688.

The following table presents the assumptions used to estimate the fair values based upon a Black-Scholes option pricing model of the stock options granted during the nine months ended March 31, 2022 and 2021.


		Nine Months Ended			****
		March 31,
	****	2022	****	2021
Expected dividend yield		0	%	0	%
Risk-free interest rate		0.92 - 1.81	%	0.37 - 0.73	%
Expected life (in years)		5 - 6		5 - 6
Expected volatility		56	%	57 - 63	%

Table of Contents Additional information regarding stock options outstanding and exercisable as of March 31, 2022 is as follows:


	Option	****		****	Remaining	****
	Exercise		Options		Contractual		Options
	Price		Outstanding		Life (in years)		Exercisable
$	0.70		225,000		3.68		225,000
	0.77		25,000		2.39		25,000
	0.80		16,000		3.39		16,000
	0.90		25,667		2.06		25,667
	0.97		6,000		0.25		6,000
	1.00		28,249		1.68		28,249
	1.02		2,000		0.25		2,000
	1.05		315,529		4.26		315,529
	1.07		33,898		0.54		33,898
	1.09		75,000		3.37		75,000
	1.10		105,000		3.25		105,000
	1.15		104,400		0.85		104,400
	1.20		274,000		5.30		274,000
	1.25		32,000		0.87		32,000
	1.50		185,000		0.73		185,000
	1.59		25,000		6.12		25,000
	1.80		94,050		1.38		94,050
	1.85		17,800		1.05		17,800
	1.95		200,000		6.26		200,000
	2.10		238,767		10.00		238,767
	2.13		216,708		8.64		208,354
	2.17		35,955		9.12		—
	2.19		5,000		10.00		—
	2.40		332,833		6.63		332,833
	2.43		61,250		9.18		31,250
	2.45		173,000		8.35		100,916
	2.49		88,435		8.09		76,430
	2.50		20,000		7.13		20,000
	2.64		30,882		9.35		—
	2.67		33,194		9.47		—
	2.99		8,000		8.12		5,333
	3.13		208,000		7.62		206,666
	3.50		8,000		7.87		6,000
	Total		3,249,617				3,016,142

Table of Contents Warrants

The following table summarizes warrant activity:


	****		****	Weighted
				Average
		Number of		Exercise
		Warrants		Price
Outstanding, June 30, 2021		50,000		$	1.19
Granted		—			—
Exercised		(50,000)			1.19
Repurchased		—			—
Expired/Cancelled		—			—
Outstanding, March 31, 2022		—		$	—
Exercisable, June 30, 2021		50,000		$	1.19
Exercisable, March 31, 2022		—		$	—

During the nine months ended March 31, 2022, certain holder of warrants to purchase shares of the Company’s common stock at a per share exercise price of $1.19 exercised those warrants to purchase 50,000 shares of common stock, generating gross proceeds to the Company of $59,500.

Restricted Common Stock

Prior to July 1, 2021, the Company issued 2,473,176 shares of restricted common stock to employees valued at $3,173,312, of which 2,013,600 shares have vested, 214,324 shares with fair value of $188,203 have been forfeited, and $2,503,156 has been recognized as an expense. The balance of the non-vested shares of restricted common stock was 245,252 at June 30, 2021, with an aggregate fair value of $481,953.

During the nine months ended March 31, 2022, the Company issued an additional 293,211 shares of restricted stock to employees. Of this amount, 193,211 shares vest over a three year period, with a one year cliff vesting period, and remain subject to forfeiture if vesting conditions are not met. The remaining 100,000 shares vest over a four year period, with a one year cliff vesting period, and remain subject to forfeiture if vesting conditions are not met. The aggregate fair value of the stock awards was $732,492 based on the market price of our common stock price ranging from $2.10 to $2.64 per share on the date of grant, which will be amortized over the range of three and four-year vesting periods.

The total fair value of restricted common stock vesting during the nine months ended March 31, 2022 was $446,433 and is included in selling, general and administrative expenses in the accompanying statements of operations. As of March 31, 2022, the amount of unvested compensation related to issuances of restricted common stock was $768,012, which will be recognized as an expense in future periods as the shares vest. When calculating basic net income (loss) per share, these shares are included in weighted average common shares outstanding from the time they vest. When calculating diluted net income per share, these shares are included in weighted average common shares outstanding as of their grant date.

The following table summarizes restricted common stock activity:


	****		****			****	Weighted
							Average
		Number of					Grant Date
		Shares		Fair Value			Fair Value
Non-vested, June 30, 2021		245,252		$	481,953		$	2.47
Granted		293,211			732,492			2.50
Vested		(173,788)			(446,433)			2.52
Forfeited		—			—			—
Non-vested, March 31, 2022		364,675		$	768,012		$	2.47

Table of Contents Common Stock Repurchases

Effective as of February 9, 2021, the Compensation Committee of our Board of Directors authorized the repurchase, during calendar year 2021 on the last day of each trading window and otherwise in accordance with our insider trading policies, of up to $400,000 of outstanding common stock (at prices no greater than $4.00 per share) from our employees to satisfy their tax obligations in connection with the vesting of stock incentive awards. The actual number of shares repurchased will be determined by applicable employees in their discretion, and will depend on their evaluation of market conditions and other factors. As of June 30, 2021, $349,263 remained under the current authorization to repurchase our outstanding common stock from our employees.

During the nine months ended March 31, 2022, the Company repurchased 33,402 shares of our common stock from employees at an average market price of approximately $2.46 per share for an aggregate amount of $82,053. As of March 31, 2022, $267,210 remains under the current authorization to repurchase our outstanding common stock from our employees.

Shares repurchased are retired and deducted from common stock for par value and from additional paid in capital for the excess over par value. Direct costs incurred to acquire the shares are included in the total cost of the shares.

Note 5. Contingencies

COVID-19

The Company is subject to risks and uncertainties as a result of the COVID-19 pandemic. The extent of the impact of the COVID-19 pandemic on the Company’s business is highly uncertain and difficult to predict, as the responses that the Company, other businesses and governments are taking continue to evolve. Furthermore, capital markets and economies worldwide have also been negatively impacted by the COVID-19 pandemic, and it is possible that it could cause a local and/or global economic recession. Policymakers around the globe have responded with fiscal policy actions to support the healthcare industry and economy as a whole. The magnitude and overall effectiveness of these actions remain uncertain.

To date, we have not experienced any significant changes in our business that would have a significant negative impact on our consolidated statements of operations or cash flows.

The severity of the impact of the COVID-19 pandemic on the Company’s business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on the Company’s customers, service providers and suppliers, all of which are uncertain and cannot be predicted. As of the date of issuance of Company’s financial statements, the extent to which the COVID-19 pandemic may in the future materially impact the Company’s financial condition, liquidity or results of operations is uncertain.

Note 6. Subsequent Events

On May 10, 2022, the Company issued 63,371 shares of restricted stock to employees. These shares vest over a three year period, with a one year cliff vesting period, and remain subject to forfeiture if vesting conditions are not met. The aggregate value of the stock award was $118,504 based on the market price of our common stock of $1.87 per share on the date of grant, which will be amortized over the three-year vesting period.

Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Notice Regarding Forward-Looking Statements

The following discussion and analysis of our financial condition and results of operations for the three and nine months ended March 31, 2022 and 2021 should be read in conjunction with our consolidated financial statements and related notes to those financial statements that are included elsewhere in this report. Our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth under “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2021.

We use words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” and similar expressions to identify forward-looking statements. All forward-looking statements included in this report are based on information available to us on the date hereof and, except as required by law, we assume no obligation to update any such forward-looking statements.

Overview

Research Solutions was incorporated in the State of Nevada on November 2, 2006, and is a publicly traded holding company with two wholly owned subsidiaries at June 30, 2021: Reprints Desk, Inc., a Delaware corporation and Reprints Desk Latin America S. de R.L. de C.V, an entity organized under the laws of Mexico.

Platforms

Table of Contents

Transactions

Our Platform allows customers to find and download digital versions of STM articles that are critical to their research. Customers submit orders for the articles they need which we source and electronically deliver to them generally in under an hour; in many cases under one minute. This service is generally known in the industry as single article delivery or document delivery. We also obtain the necessary permission licenses from the content publisher or other rights holder so that our customer’s use complies with applicable copyright laws. We have arrangements with hundreds of content publishers that allow us to distribute their content. The majority of these publishers provide us with electronic access to their content, which allows us to electronically deliver single articles to our customers often in a matter of minutes.

COVID-19

We are subject to risks and uncertainties as a result of the COVID-19 pandemic. The extent of the impact of the COVID-19 pandemic on our business is highly uncertain and difficult to predict, as the responses that we, other businesses and governments are taking continue to evolve. Furthermore, capital markets and economies worldwide have also been negatively impacted by the COVID-19 pandemic, and it is possible that it could cause a local and/or global economic recession. Policymakers around the globe have responded with fiscal policy actions to support the healthcare industry and economy as a whole. The magnitude and overall effectiveness of these actions remain uncertain.

To date, we have not experienced any significant changes in our business that would have a significant negative impact on our consolidated statements of operations or cash flows.

The severity of the impact of the COVID-19 pandemic on our business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on our customers, service providers and suppliers, all of which are uncertain and cannot be predicted. As of the date of issuance of our financial statements, the extent to which the COVID-19 pandemic may in the future materially impact our financial condition, liquidity or results of operations is uncertain.

Critical Accounting Policies and Estimates

The preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the United States, or GAAP, requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. When making these estimates and assumptions, we consider our historical experience, our knowledge of economic and market factors and various other factors that we believe to be reasonable under the circumstances. Actual results may differ under different estimates and assumptions.

The accounting estimates and assumptions discussed in this section are those that we consider to be the most critical to an understanding of our financial statements because they inherently involve significant judgments and uncertainties.

Revenue Recognition

We account for revenue in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606), ("ASC 606"). The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. We adopted the guidance of ASC 606 on July 1, 2018. 20

Table of Contents Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. We derive our revenues from two sources: annual licenses that allow customers to access and utilize certain premium features of our cloud-based SaaS research intelligence platform (“Platforms”) and the transactional sale of STM content managed, sourced and delivered through the Platform (“Transactions”).

We apply the following five steps in order to determine the appropriate amount of revenue to be recognized as we fulfill our obligations under each of our agreements:

●	identify the contract with a customer;
●	identify the performance obligations in the contract;
---	---
●	determine the transaction price;
---	---
●	allocate the transaction price to performance obligations in the contract; and
---	---
●	recognize revenue as the performance obligation is satisfied.
---	---

Platforms

Transactions

Stock-Based Compensation

The fair value of our stock options is estimated using the Black-Scholes-Merton Option Pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the stock options or restricted stock, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes-Merton Option Pricing model and based on actual experience. The assumptions used in the Black-Scholes-Merton Option Pricing model could materially affect compensation expense recorded in future periods. 21

Table of Contents

Recent Accounting Pronouncements

Please refer to footnote 2 to the condensed consolidated financial statements contained elsewhere in this Form 10-Q for a discussion of Recent Accounting Pronouncements.

Quarterly Information (Unaudited)

The following table sets forth unaudited and quarterly financial data for the most recent eight quarters:


	****	Mar. 31,			Dec 31,		****	Sept. 30,			June 30,		****	Mar. 31,		****	Dec. 31,		****	Sept. 30,		****	June 30,
		2022		****	2021		****	2021		****	2021		****	2021		****	2020		****	2020		****	2020
Revenue:
Platforms		$	1,786,224		$	1,604,829		$	1,509,874		$	1,429,160		$	1,344,183		$	1,220,535		$	1,141,688		$	1,066,630
Transactions			6,971,128			6,267,458			6,232,630			6,788,494			6,996,349			6,229,200			6,606,737			6,819,150
Total revenue			8,757,352			7,872,287			7,742,504			8,217,654			8,340,532			7,449,735			7,748,425			7,885,780

Cost of revenue:
Platforms			219,051			231,668			245,656			257,320			233,696			217,003			203,952			153,241
Transactions			5,299,804			4,802,959			4,836,473			5,218,118			5,404,196			4,841,150			5,094,897			5,224,006
Total cost of revenue			5,518,855			5,034,627			5,082,129			5,475,438			5,637,892			5,058,153			5,298,849			5,377,247

Gross profit:
Platforms			1,567,173			1,373,161			1,264,218			1,171,840			1,110,487			1,003,532			937,736			913,389
Transactions			1,671,324			1,464,499			1,396,157			1,570,376			1,592,153			1,388,050			1,511,840			1,595,144
Total gross profit			3,238,497			2,837,660			2,660,375			2,742,216			2,702,640			2,391,582			2,449,576			2,508,533

Operating expenses:
Sales and marketing			543,496			518,357			522,951			521,220			566,713			487,571			498,374			692,096
Technology and product dev.			971,959			868,236			821,460			732,371			664,195			624,747			622,961			537,830
General and administrative			1,629,371			1,616,135			1,497,223			1,354,244			1,233,603			1,118,750			1,161,061			1,132,483
Depreciation and amortization			4,988			4,260			2,896			2,694			2,066			3,039			3,723			3,746
Stock-based comp. expense			399,234			300,539			171,110			221,589			179,345			435,949			170,791			143,054
Foreign currency transaction loss (gain)			29,394			11,982			11,243			(890)			6,648			(17,469)			(24,249)			4,214
Total operating expenses			3,578,442			3,319,509			3,026,883			2,831,228			2,652,570			2,652,587			2,432,661			2,513,423
Other income (expenses and income taxes)			(585)			264			(5,494)			136			(322)			399			(2,270)			4,331
Net income (loss)			(340,530)			(481,585)			(372,002)			(88,876)			49,748			(260,606)			14,645			(559)

Basic income (loss) per common share:
Net income (loss) per share		$	(0.01)		$	(0.02)		$	(0.01)		$	—		$	—		$	(0.01)		$	—		$	—
Basic weighted average common shares outstanding			26,512,195			26,351,947			26,277,116			26,145,794			26,027,665			25,988,117			25,898,900			25,815,163

Diluted income (loss) per common share:
Net income (loss) per share		$	(0.01)		$	(0.02)		$	(0.01)		$	—		$	—		$	(0.01)		$	—		$	—
Diluted weighted average common shares outstanding			26,512,195			26,351,947			26,277,116			26,145,794			26,565,892			25,988,117			26,511,180			25,815,163

Table of Contents Comparison of the Three and Nine Months Ended March 31, 2022 and 2021

Results of Operations


		Three Months Ended March 31,									****
	****	2022		****	2021		****	Change	****	% Change	****

Revenue:
Platforms		$	1,786,224		$	1,344,183				32.9	%
Transactions			6,971,128			6,996,349				(0.4)	%
Total revenue			8,757,352			8,340,532				5.0	%

Cost of revenue:
Platforms			219,051			233,696				(6.3)	%
Transactions			5,299,804			5,404,196				(1.9)	%
Total cost of revenue			5,518,855			5,637,892				(2.1)	%

Gross profit:
Platforms			1,567,173			1,110,487				41.1	%
Transactions			1,671,324			1,592,153				5.0	%
Total gross profit			3,238,497			2,702,640				19.8	%

Operating expenses:
Sales and marketing			543,496			566,713				(4.1)	%
Technology and product development			971,959			664,195				46.3	%
General and administrative			1,629,371			1,233,603				32.1	%
Depreciation and amortization			4,988			2,066				141.4	%
Stock-based compensation expense			399,234			179,345				122.6	%
Foreign currency transaction loss (gain)			29,394			6,648				342.1	%
Total operating expenses			3,578,442			2,652,570				34.9	%

Income (loss) from operations			(339,945)			50,070				(778.9)	%

Other income			237			250				(5.2)	%

Income (loss) from operations before provision for income taxes			(339,708)			50,320				(775.1)	%
Provision for income taxes			(822)			(572)				(43.7)	%

Net income (loss)		$	(340,530)		$	49,748				(784.5)	%

All values are in US Dollars. 23

Table of Contents


		Nine Months Ended March 31,									****
	****	2022		****	2021		****	Change	****	% Change	****

Revenue:
Platforms		$	4,900,927		$	3,706,406				32.2	%
Transactions			19,471,216			19,832,286				(1.8)	%
Total revenue			24,372,143			23,538,692				3.5	%

Cost of revenue:
Platforms			696,375			654,651				6.4	%
Transactions			14,939,236			15,340,243				(2.6)	%
Total cost of revenue			15,635,611			15,994,894				(2.2)	%

Gross profit:
Platforms			4,204,552			3,051,755				37.8	%
Transactions			4,531,980			4,492,043				0.9	%
Total gross profit			8,736,532			7,543,798				15.8	%

Operating expenses:
Sales and marketing			1,584,804			1,552,658				2.1	%
Technology and product development			2,661,655			1,911,903				39.2	%
General and administrative			4,742,729			3,513,415				35.0	%
Depreciation and amortization			12,144			8,828				37.6	%
Stock-based compensation expense			870,883			786,084				10.8	%
Foreign currency transaction loss (gain)			52,619			(35,070)				250.0	%
Total operating expenses			9,924,834			7,737,818				28.3	%

Loss from operations			(1,188,302)			(194,020)				(512.5)	%

Other income			777			884				(12.1)	%

Loss from operations before provision for income taxes			(1,187,525)			(193,136)				(514.9)	%
Provision for income taxes			(6,592)			(3,077)				(114.2)	%

Net loss		$	(1,194,117)		$	(196,213)				(508.6)	%

All values are in US Dollars.

Revenue


		Three Months Ended March 31,									****
	****	2022		****	2021		****	Change	****	% Change	****
Revenue:
Platforms		$	1,786,224		$	1,344,183				32.9	%
Transactions			6,971,128			6,996,349				(0.4)	%
Total revenue		$	8,757,352		$	8,340,532				5.0	%

All values are in US Dollars.

Table of Contents Total revenue increased $416,820, or 5%, for the three months ended March 31, 2022 compared to the prior year, due to the following:


Category	****	Impact			Key Drivers
Platforms		↑	$	442,041	Increased due to additional deployments to new and existing customers, and expansion from existing customers. Revenue is recognized ratably over the term of the subscription agreement, which is typically one year, provided all other revenue recognition criteria have been met. Billings or payments received in advance of revenue recognition are recorded as deferred revenue.
Transactions		↓	$	25,221	Decreased primarily due to lower order volume.


		Nine Months Ended March 31,									****
	****	2022		****	2021		****	Change	****	% Change	****
Revenue:
Platforms		$	4,900,927		$	3,706,406				32.2	%
Transactions			19,471,216			19,832,286				(1.8)	%
Total revenue		$	24,372,143		$	23,538,692				3.5	%

All values are in US Dollars.

Total revenue increased $833,451, or 3.5%, for the nine months ended March 31, 2022 compared to the prior year, due to the following:


Category	Impact			Key Drivers
Platforms	↑	$	1,194,521	Increased due to additional deployments to new and existing customers, and expansion from existing customers. Revenue is recognized ratably over the term of the subscription agreement, which is typically one year, provided all other revenue recognition criteria have been met. Billings or payments received in advance of revenue recognition are recorded as deferred revenue.
Transactions	↓	$	361,070	Decreased primarily due to lower order volume.

Cost of Revenue


		Three Months Ended March 31,									****
	****	2022		****	2021		****	Change	****	% Change	****
Cost of Revenue:
Platforms		$	219,051		$	233,696				(6.3)	%
Transactions			5,299,804			5,404,196				(1.9)	%
Total cost of revenue		$	5,518,855		$	5,637,892				(2.1)	%

All values are in US Dollars.


		Three Months Ended					****
		March 31,
	****	2022	****	2021	****	% Change *	****
As a percentage of revenue:
Platforms		12.3	%	17.4	%	(5.1)	%
Transactions		76.0	%	77.2	%	(1.2)	%
Total		63.0	%	67.6	%	(4.6)	%
*	The difference between current and prior period cost of revenue as a percentage of revenue
---	---

Table of Contents Total cost of revenue as a percentage of revenue decreased 4.6%, from 67.6% for the previous year to 63%, for the three months ended March 31, 2022.


	****	Impact as percentage		****
Category		of revenue			Key Drivers
Platforms	****	↓	5.1	%	Decreased primarily due to lower personnel costs.
Transactions	****	↓	1.2	%	Decreased primarily due to lower copyright expenses.


		Nine Months Ended March 31,									****
	****	2022		****	2021		****	Change	****	% Change	****
Cost of Revenue:
Platforms		$	696,375		$	654,651				6.4	%
Transactions			14,939,236			15,340,243				(2.6)	%
Total cost of revenue		$	15,635,611		$	15,994,894				(2.2)	%

All values are in US Dollars.


		Nine Months Ended					****
		March 31,					****
	****	2022	****	2021	****	% Change *	****
As a percentage of revenue:
Platforms		14.2	%	17.7	%	(3.5)	%
Transactions		76.7	%	77.3	%	(0.6)	%
Total		64.2	%	68.0	%	(3.8)	%

*The difference between current and prior period cost of revenue as a percentage of revenue

Total cost of revenue as a percentage of revenue decreased 3.8%, from 68% for the previous year to 64.2%, for the nine months ended March 31, 2022.


	****	Impact as percentage		****
Category		of revenue			Key Drivers
Platforms	****	↓	3.5	%	Decreased primarily due to proportionally lower personnel costs.
Transactions	****	↓	0.6	%	Decreased primarily due to lower copyright expenses and proportionally lower personnel costs.

Gross Profit


		Three Months Ended March 31,									****
	****	2022		****	2021		****	Change	****	% Change	****
Gross Profit:
Platforms		$	1,567,173		$	1,110,487				41.1	%
Transactions			1,671,324			1,592,153				5.0	%
Total gross profit		$	3,238,497		$	2,702,640				19.8	%

All values are in US Dollars.


		Three Months Ended					****
		March 31,
	****	2022	****	2021	****	% Change*	****
As a percentage of revenue:
Platforms		87.7	%	82.6	%	5.1	%
Transactions		24.0	%	22.8	%	1.2	%
Total		37.0	%	32.4	%	4.6	%
*	The difference between current and prior period gross profit as a percentage of revenue
---	---

Table of Contents


		Nine Months Ended March 31,									****
	****	2022		****	2021		****	Change	****	% Change	****
Gross Profit:
Platforms		$	4,204,552		$	3,051,755				37.8	%
Transactions			4,531,980			4,492,043				0.9	%
Total gross profit		$	8,736,532		$	7,543,798				15.8	%

All values are in US Dollars.


		Nine Months Ended					****
		March 31,					****
	****	2022	****	2021	****	% Change*	****
As a percentage of revenue:
Platforms		85.8	%	82.3	%	3.5	%
Transactions		23.3	%	22.7	%	0.6	%
Total		35.8	%	32.0	%	3.8	%

*	The difference between current and prior period gross profit as a percentage of revenue

Operating Expenses


		Three Months Ended March 31,									****
	****	2022		****	2021		****	Change	****	% Change	****
Operating Expenses:
Sales and marketing		$	543,496		$	566,713				(4.1)	%
Technology and product development			971,959			664,195				46.3	%
General and administrative			1,629,371			1,233,603				32.1	%
Depreciation and amortization			4,988			2,066				141.4	%
Stock-based compensation expense			399,234			179,345				122.6	%
Foreign currency transaction loss (gain)			29,394			6,648				342.1	%
Total operating expenses		$	3,578,442		$	2,652,570				34.9	%

All values are in US Dollars.


Category	****	Impact			Key Drivers
Sales and marketing	****	↓	$	23,217	Decreased primarily due to lower personnel costs and design services spend.
Technology and product development	****	↑	$	307,764	Increased due to greater consulting and recruiting expenses and personnel costs.
General and administrative	****	↑	$	395,768	Increased due to greater personnel costs and accounting, consulting and legal expenses.


		Nine Months Ended March 31,									****
	****	2022		****	2021		****	Change	****	% Change	****
Operating Expenses:
Sales and marketing		$	1,584,804		$	1,552,658				2.1	%
Technology and product development			2,661,655			1,911,903				39.2	%
General and administrative			4,742,729			3,513,415				35.0	%
Depreciation and amortization			12,144			8,828				37.6	%
Stock-based compensation expense			870,883			786,084				10.8	%
Foreign currency transaction loss (gain)			52,619			(35,070)				250.0	%
Total operating expenses		$	9,924,834		$	7,737,818				28.3	%

All values are in US Dollars. 27

Table of Contents


Category	****	Impact			Key Drivers
Sales and marketing	****	↑	$	32,146	Increased primarily due to greater consulting expenses partially offset by lower design services spend and personnel costs.
Technology and product development	****	↑	$	749,752	Increased due to greater consulting and recruiting expenses and personnel costs.
General and administrative	****	↑	$	1,229,314	Increased due to greater personnel costs and accounting, consulting and legal expenses. Greater personnel costs include separation costs paid to a former officer.

Net Income (Loss)


		Three Months Ended March 31,									****
	****	2022		****	2021		****	Change	****	% Change	****
Net Income (Loss):
Net income (loss):		$	(340,530)		$	49,748				(784.5)	%

All values are in US Dollars.

Net income decreased $390,278 or 784.5%, for the three months ended March 31, 2022 compared to the prior year, primarily due to increased operating expenses, partially offset by increased gross profit as described above.


		Nine Months Ended March 31,									****
	****	2022		****	2021		****	Change	****	% Change	****
Net Income (Loss):
Net loss:		$	(1,194,117)		$	(196,213)				(508.6)	%

All values are in US Dollars.

Net loss increased $997,904 or 508.6%, for the nine months ended March 31, 2022 compared to the prior year, primarily due to increased operating expenses, partially offset by increased gross profit as described above.

Liquidity and Capital Resources


	Nine Months Ended March 31,
	2022			2021
Consolidated Statements of Cash Flow Data:			****
Net cash provided by (used in) operating activities	$	(402,711)		$	2,220,056
Net cash used in investing activities		(34,251)			(11,853)
Net cash provided by (used in) financing activities		75,135			(288,598)

Effect of exchange rate changes		(1,989)			2,401
Net increase (decrease) in cash and cash equivalents		(363,816)			1,922,006
Cash and cash equivalents, beginning of period		11,004,337			9,311,556
Cash and cash equivalents, end of period	$	10,640,521		$	11,233,562

Liquidity

As of March 31, 2022, we had cash and cash equivalents of $10,640,521, compared to $11,004,337 as of June 30, 2021, a decrease of $363,816. This decrease was primarily due to cash used in operating activities.

Operating Activities

Net cash used in operating activities was $402,711 for the nine months ended March 31, 2022 and resulted primarily from an increase in accounts receivable of $904,915, partially offset by an increase in deferred revenue of $538,477 and an increase in accounts payable and accrued expenses of $397,088. 28

Table of Contents Net cash provided by operating activities was $2,220,056 for the nine months ended March 31, 2021 and resulted primarily from an increase in accounts payable and accrued expenses of $1,208,474 and an increase in deferred revenue of $1,076,966, partially offset by an increase in accounts receivable of $563,829.

Investing Activities

Net cash used in investing activities was $34,251 for the nine months ended March 31, 2022 and resulted from the purchase of property and equipment.

Net cash used in investing activities was $11,853 for the nine months ended March 31, 2021 and resulted from the purchase of property and equipment.

Financing Activities

Net cash provided by financing activities was $75,135 for the nine months ended March 31, 2022 and resulted from the proceeds from the exercise of options of $97,688 and the proceeds from the exercise of warrants of $59,500, partially offset by the repurchase of common stock of $82,053.

Net cash used in financing activities was $288,598 for the nine months ended March 31, 2021 and resulted from the repurchase of stock options and warrants of $308,313 and the repurchase of common stock of $150,386, partially offset by the proceeds from the exercise of stock options of $88,850 and the proceeds from the exercise of warrants of $81,251.

We entered into a Loan and Security Agreement with Silicon Valley Bank (“SVB”) on July 23, 2010, which, as amended, provides for a revolving line of credit for the lesser of $2,500,000, or 80% of eligible accounts receivable. The line of credit matures on February 28, 2024, and is subject to certain financial and performance covenants with which we were in compliance as of March 31, 2022. Financial covenants include maintaining an adjusted quick ratio of unrestricted cash and net accounts receivable, divided by current liabilities plus debt less deferred revenue of at least 1.15 to 1.0. The line of credit bears interest at an annual rate equal to the greater of 1% above the prime rate and 5.0%. The interest rate on the line of credit was 5.0% as of March 31, 2022. The line of credit was secured by our consolidated assets.

There were no outstanding borrowings under the line as of March 31, 2022 and June 30, 2021, respectively. As of March 31, 2022, there was approximately $2,204,000 of available credit.

Non-GAAP Measure – Adjusted EBITDA

In addition to our GAAP results, we present Adjusted EBITDA as a supplemental measure of our performance. However, Adjusted EBITDA is not a recognized measurement under GAAP and should not be considered as an alternative to net income, income from operations or any other performance measure derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of liquidity. We define Adjusted EBITDA as net income (loss), plus interest expense, other income (expense), foreign currency transaction loss, provision for income taxes, depreciation and amortization, stock-based compensation, income from discontinued operations and gain on sale of discontinued operations. Management considers our core operating performance to be that which our managers can affect in any particular period through their management of the resources that affect our underlying revenue and profit generating operations that period. Non-GAAP adjustments to our results prepared in accordance with GAAP are itemized below. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. 29

Table of Contents Set forth below is a reconciliation of Adjusted EBITDA to net income (loss) for the three and nine months ended March 31, 2022 and 2021:


	****	Three Months Ended
	****	March 31,
		2022		****	2021		****	Change
Net income (loss)		$	(340,530)		$	49,748
Add (deduct):
Other (income) expense			(237)			(250)
Foreign currency transaction loss (gain)			29,394			6,648
Provision for income taxes			822			572
Depreciation and amortization			4,988			2,066
Stock-based compensation			399,234			179,345
Adjusted EBITDA		$	93,671		$	238,129

All values are in US Dollars.


	****	Nine Months Ended
	****	March 31,
		2022		****	2021		****	Change
Net income (loss)		$	(1,194,117)		$	(196,213)
Add (deduct):
Other (income) expense			(777)			(884)
Foreign currency transaction loss (gain)			52,619			(35,070)
Provision for income taxes			6,592			3,077
Depreciation and amortization			12,144			8,828
Stock-based compensation			870,883			786,084
Adjusted EBITDA		$	(252,656)		$	565,822

All values are in US Dollars.

We present Adjusted EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Adjusted EBITDA in developing our internal budgets, forecasts and strategic plan; in analyzing the effectiveness of our business strategies in evaluating potential acquisitions; and in making compensation decisions and in communications with our board of directors concerning our financial performance. Adjusted EBITDA has limitations as an analytical tool, which includes, among others, the following:

●	Adjusted EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;
●	Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
---	---
●	Adjusted EBITDA does not reflect interest expense, or the cash requirements necessary to service interest or principal payments, on our debts; and
---	---
●	Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements.
---	---

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not required. 30

Table of Contents

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q. For purposes of this section, the term disclosure controls and procedures means controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of March 31, 2022, the end of the period covered by this report, our disclosure controls and procedures were effective at a reasonable assurance level.

Inherent Limitations on the Effectiveness of Controls

Management does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control systems are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in a cost-effective control system, no evaluation of internal control over financial reporting can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been or will be detected.

These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of a simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

Changes in Internal Control Over Financial Reporting

In addition, our management with the participation of our principal executive officer and principal financial officer have determined that no change in our internal control over financial reporting (as that term is defined in Rules 13(a)-15(f) and 15(d)-15(f) of the Exchange Act) occurred during the quarter ended March 31, 2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Table of Contents PART II — OTHER INFORMATION

Item 1A. Risk Factors.

The COVID-19 pandemic may reduce the number of articles ordered by our transactional customers, or may reduce the number of platform subscriptions, either of which could have a material adverse impact on our business and financial performance.

To date, we have not experienced any significant changes in our business that would have a significant negative impact on our consolidated statements of operations or cash flows. However, the COVID-19 pandemic’s continued impact on the economy and our customers may reduce the number of articles ordered by our transactional customers, or may reduce the number of platform subscriptions, either of which could have a material adverse impact on our business and financial performance.

The severity of the impact of the COVID-19 pandemic on our business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on our customers, service providers and suppliers, all of which are uncertain and cannot be predicted. As of the date of issuance of our financial statements for the fiscal quarter ended March 31, 2022, the extent to which the COVID-19 pandemic may in the future materially impact our financial condition, liquidity or results of operations is uncertain.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

During the three months ended March 31, 2022, we repurchased 6,086 shares of our common stock from employees at an average market price of approximately $2.34 per share for an aggregate amount of $14,241. As of March 31, 2022, $267,210 remains under the current authorization to repurchase our outstanding common stock from our employees.

Table of Contents The following table summarizes repurchases of our common stock on a monthly basis:


	****		****			****	Total Number of Shares	****	Approximate Dollar Value
		Total Number		Average			Purchased as Part of		of Shares that May Yet Be
		of Shares		Price Paid			Publicly Announced		Purchased Under the
Period		Purchased^1^		per Share			Plans or Programs		Plans or Programs
January 2022		—			—		—		$	281,451
February 2022		—			—		—		$	281,451
March 2022		6,086		$	2.34		—		$	267,210
Total		6,086		$	2.34		—			—

^1^ Consists of shares of common stock purchased from an employee to satisfy tax obligations in connection with the vesting of stock incentive awards.

Item 6. Exhibits

EXHIBIT INDEX

Exhibit<br>Number	Description
10.1	Third Amendment to Amended and Restated Loan and Security Agreement dated February 15, 2022 among Silicon Valley Bank, Research Solutions, Inc. and Reprints Desk, Inc.
10.2	Fourth Amendment to Amended and Restated Loan and Security Agreement dated February 28, 2022 among Silicon Valley Bank, Research Solutions, Inc. and Reprints Desk, Inc.
31.1	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
31.2	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
32.1	Section 1350 Certification of Chief Executive Officer *
32.2	Section 1350 Certification of Chief Financial Officer *
101.INS	INLINE XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase
104	Cover Page Interactive Data File – The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

* Furnished herewith

Table of Contents SIGNATURES

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 thereunto duly authorized.

	RESEARCH SOLUTIONS, INC.
	By:	/s/ Roy W. Olivier
		Roy W. Olivier
Date: May 13, 2022		Chief Executive Officer and President (Principal Executive Officer)
	By:	/s/ William Nurthen
		William Nurthen
Date: May 13, 2022		Chief Financial Officer (Principal Financial and Accounting Officer)

Exhibit 10.1

THIRD Amendment to AMENDED AND RESTATED Loan and security agreement

THIS **** THIRD AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this **** “Amendment”) is entered into this 15^th^ day of February, 2022, by and among SILICON VALLEY BANK, a California corporation (“Bank”), **** RESEARCH SOLUTIONS, INC., a Nevada corporation (“Research Solutions”), and REPRINTS DESK, INC., a Delaware corporation (“Reprints”; together with Research Solutions, individually and collectively, jointly and severally, “Borrower”).

Recitals

A.Bank and Borrower have entered into that certain Amended and Restated Loan and Security Agreement dated as of December 31, 2017 (as amended, modified, supplemented or restated from time to time, the “Loan Agreement”).

B.Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.

C.Borrower has requested that Bank amend the Loan Agreement to make certain revisions to the Loan Agreement as more fully set forth herein.

D.Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below.

Agreement

Now, Therefore, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

1.Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.

2.Amendments to Loan Agreement.

2.1Section 13 (Definitions). The following defined term and its definition set forth in Section 13.1 of the Loan Agreement is hereby amended by deleting it in its entirety and replacing it with the following:

“Revolving Line Maturity Date” is February 28, 2022. 123881858v2 220763.003059

3.Limitation of Amendments.

3.1The amendments set forth in Section **** 2, above, are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under or in connection with any Loan Document.

3.2This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect.

3.3In addition to those Events of Default specifically enumerated in the Loan Documents, the failure to comply with the terms of any covenant or agreement contained herein shall constitute an Event of Default and shall entitle the Bank to exercise all rights and remedies provided to the Bank under the terms of any of the other Loan Documents as a result of the occurrence of the same.

4.Representations and Warranties. To induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as follows:

4.1Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is continuing;

4.2Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;

4.3The organizational documents of Borrower delivered to Bank on the Effective Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;

4.4The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized;

4.5The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower;

123881858v2 220763.003059

4.6The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and

4.7This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.

5.Integration. This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents.

6.Counterparts. This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.

7.Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and delivery to Bank of this Amendment by each party hereto, and (b) payment of Bank’s legal fees and expenses in connection with the negotiation and preparation of this Amendment.

[Signature page follows.]

123881858v2 220763.003059

In Witness Whereof, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above.

BANK
SILICON VALLEY BANK
By:____________________________<br><br>Kelly Pedersen<br><br>Vice President

BORROWER<br><br>RESEARCH SOLUTIONS, INC.<br><br><br><br>By:____________________________<br><br>William Nurthen<br><br>CFO<br><br><br><br>REPRINTS DESK, INC.
<br><br>By:____________________________<br><br>William Nurthen<br><br>CFO

[Signature Page to Third Amendment to Amended and Restated Loan and Security Agreement]

123881858v2 220763.003059

Exhibit 10.2

FOURTH Amendment to AMENDED AND RESTATED Loan and security agreement

THIS **** FOURTH AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this **** “Amendment”) is entered into this 28^th^ day of February, 2022, by and among SILICON VALLEY BANK, a California corporation (“Bank”), **** RESEARCH SOLUTIONS, INC., a Nevada corporation (“Research Solutions”), and REPRINTS DESK, INC., a Delaware corporation (“Reprints”; together with Research Solutions, individually and collectively, jointly and severally, “Borrower”).

Recitals

B.Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.

C.Borrower has requested that Bank amend the Loan Agreement to make certain revisions to the Loan Agreement as more fully set forth herein.

Agreement

1.Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.

2.Amendments to Loan Agreement.

2.1Section 2.7 (Payment of Interest on the Credit Extensions). Section 2.7(a) of the Loan Agreement is hereby amended by deleting it in its entirety and replacing it with the following:

(a)Interest Rate. Subject to Section 2.7(b), the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum rate equal to (a) at all times when a Streamline Period is in effect, the greater of (i) one percent 123585318v6 220763.003059

(1.00%) above the Prime Rate and (ii) five percent (5.00%), and (b) at all times when a Streamline Period is not in effect, the greater of (i) one and one half of one percent (1.50%) above the Prime Rate and (ii) five and one half of one percent (5.50%), which interest shall be payable monthly in accordance with Section 2.7(e) below.

2.2Section 2.8 (Fees). Section 2.8 of the Loan Agreement is hereby amended by deleting Section 2.8(c) in its entirety and replacing it with the following:

(c)Termination Fee. Upon termination of this Agreement or the termination of the Revolving Line for any reason prior to the Revolving Line Maturity Date, in addition to the payment of any other amounts then-owing, a termination fee in an amount equal to (i) 2.0% of the Maximum Dollar Amount if such termination occurs prior to the first anniversary of the Fourth Amendment Effective Date, or (ii) 1.0% of the Maximum Dollar Amount if such termination occurs on or at any time after the first anniversary of the Fourth Amendment Effective Date provided that no termination fee shall be charged if the credit facility hereunder is replaced with a new facility from Bank;

2.3Section 2.8 (Fees). Section 2.8 of the Loan Agreement is hereby amended by adding clause (g) immediately after clause (f) therein as follows:

(g)Fourth Amendment Anniversary Fee. A fully earned, non-refundable anniversary fee of Twelve Thousand Five Hundred Dollars ($12,500) (the “Fourth Amendment Anniversary Fee”) is earned as of the Fourth Amendment Effective Date and is due and payable on the earlier to occur of (i) the one (1) year anniversary of the Fourth Amendment Effective Date, (ii) the termination of this Agreement, or (iii) the occurrence of an Event of Default.

2.4Section 6.9 (Financial Covenants). Section 6.9(b) of the Loan Agreement is hereby amended by deleting it in its entirety and replacing it with the following

(b)Reserved.

2.5Section 13 (Definitions).

(a)The following defined terms and their definitions set forth in Section 13.1 of the Loan Agreement are hereby amended by deleting them in their entirety and replacing them with the following:

“Obligations” are Borrower’s obligations to pay when due any debts, principal, interest, fees, Bank Expenses, the Termination Fee, the Anniversary Fee, the Second Amendment Anniversary Fee, the Fourth Amendment Anniversary Fee, and other amounts Borrower owes to Bank now or later, whether under this Agreement, the other Loan Documents, or otherwise, including, without limitation, all obligations relating to Bank Services and interest accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of Borrower assigned to Bank, and to perform Borrower’s duties under the Loan Documents.

“Revolving Line Maturity Date” is February 28, 2024.

123585318v6 220763.003059

“Streamline Period” is, provided no Event of Default has occurred and is continuing, the period commencing on the first day of the second calendar month following a Testing Month in which Borrower achieves an Adjusted Quick Ratio equal to or greater than 1.45 to 1.0 (the “AQR Requirement”) and continuing in effect thereafter until (i) Borrower fails to achieve the AQR Requirement in any Testing Month or (ii) a Default or Event of Default has occurred and is continuing. As an example, assuming no Default or Event of Default has occurred or does occur, if Borrower achieves the AQR Requirement for October 2022, the Streamline Period will go into effect on December 1, 2022 (since Bank receives Borrower’s October financial reporting in November). If Borrower subsequently fails to achieve the AQR Requirement for December 2022, but satisfies the AQR Requirement for January 2023, a new Streamline Period will go into effect on March 1, 2023.

(b)The following defined terms are hereby added to Section 13.1 of the Loan Agreement in alphabetical order:

“Fourth Amendment Anniversary Fee” is defined in Section 2.8(g).

“Fourth Amendment Effective Date” is February 28, 2022.

(c)The terms “Net Income” and “Tangible Net Worth” and their definitions are hereby deleted from Section 13.1 of the Loan Agreement.

3.Compliance Certificate. The Compliance Certificate appearing as Exhibit B to the Loan Agreement is deleted in its entirety and replaced with the Compliance Certificate attached as Exhibit B attached hereto.

4.Limitation of Amendments.

4.1The amendments set forth in Section **** 2, above, are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under or in connection with any Loan Document.

4.2This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect.

4.3In addition to those Events of Default specifically enumerated in the Loan Documents, the failure to comply with the terms of any covenant or agreement contained herein shall constitute an Event of Default and shall entitle the Bank to exercise all rights and remedies provided to the Bank under the terms of any of the other Loan Documents as a result of the occurrence of the same.

123585318v6 220763.003059

5.Representations and Warranties. To induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as follows:

5.1Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is continuing;

5.2Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;

5.3The organizational documents of Borrower delivered to Bank on the Effective Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;

5.4The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized;

5.5The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower;

5.6The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and

5.7This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.

6.Integration. This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents.

123585318v6 220763.003059

7.Counterparts. This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.

8.Post-Closing Condition. Unless otherwise provided in writing, within thirty (30) days of the date hereof, Bank shall have received, in form and substance satisfactory to Bank (a) evidence that the insurance policies and endorsements required by Section 6.7 of the Loan Agreement are in full force and effect, together with appropriate evidence showing lender loss payable, waiver of subrogation and additional insured clauses or endorsements in favor of Bank, and (b) duly executed updated Perfection Certificates by each Borrower.

9.Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and delivery to Bank of this Amendment by each party hereto, (b) the due execution and delivery to Bank of that certain Addendum to Intellectual Property Security Agreement by Research Solutions in favor of Bank, dated of even date herewith, and (c) payment of (i) the Second Amendment Anniversary Fee in the amount of Twelve Thousand Five Hundred Dollars ($12,500), and (ii) Bank’s legal fees and expenses in connection with the negotiation and preparation of this Amendment.

[Signature page follows.]

123585318v6 220763.003059

In Witness Whereof, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above.

BANK
SILICON VALLEY BANK
By:____________________________<br><br>Kelly Pedersen<br><br>Vice President

BORROWER<br><br>RESEARCH SOLUTIONS, INC.<br><br><br><br>By:____________________________<br><br>William Nurthen<br><br>Chief Financial Officer and Secretary<br><br><br><br>REPRINTS DESK, INC.
<br><br>By:____________________________<br><br>William Nurthen<br><br>Chief Financial Officer and Secretary

[Signature Page to Fourth Amendment to Amended and Restated Loan and Security Agreement]

123585318v6 220763.003059

EXHIBIT B COMPLIANCE CERTIFICATE

TO:SILICON VALLEY BANKDate:

FROM: RESEARCH SOLUTIONS, INC. and REPRINTS DESK, INC.

The undersigned authorized officer of RESEARCH SOLUTIONS, INC. (“Research Solutions”) and REPRINTS DESK, INC., (“Reprints”; together with Research Solutions, individually and collectively, “Borrower”) certifies that under the terms and conditions of the Amended and Restated Loan and Security Agreement between Borrower and Bank (the “Agreement”), (1) Borrower is in complete compliance for the period ending _______________ with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement, and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries, if any, relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Bank. Attached are the required documents supporting the certification. The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement.

Please indicate compliance status by circling Yes/No under “Complies” column.

Reporting Covenants	Required	Complies

Monthly financial statements with <br>Compliance Certificate	Monthly within 30 days	Yes No
10-Q, 10-K and 8-K	Within 5 days after filing with<br><br>SEC	Yes No
A/R & A/P Agings	Streamline Period not in effect:<br><br>Weekly and with each Advance request;<br><br>Streamline Period in effect:<br><br>Monthly within 7 days and with each Advance request	Yes No
Borrowing Base Reports	Streamline Period not in effect:<br><br>Weekly and with each Advance request;<br><br>Streamline Period in effect:<br><br>Monthly within 7 days and with each Advance request	Yes No
Board approved projections	FYE within 30 days and as amended/updated	Yes No

123585318v6 220763.003059


<br><br>The following Intellectual Property was registered after the Effective Date (if no registrations, state “None”)<br><br>____________________________________________________________________________<br><br>

Financial Covenant	Required	Actual	Complies

Maintain as indicated:
Minimum Adjusted Quick Ratio	1.15:1.0	_____:1.0	Yes No

Performance Pricing		Applies

AQR ≥ 1.45 to 1.0	Prime + 1.00%, 5.00% Floor	Yes No
AQR < 1.45 to 1.0	Prime + 1.50%, 5.50% Floor	Yes No

Streamline Period		Applies

AQR ≥ 1.45 to 1.0	Streamline Period in Effect	Yes No
AQR < 1.45 to 1.0	Streamline Period not in Effect	Yes No

The following financial covenant analyses and information set forth in Schedule 1 attached hereto are true and accurate as of the date of this Certificate.

The following are the exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions to note.”)

RESEARCH SOLUTIONS, INC.<br><br><br><br><br><br>By: <br><br>Name: <br><br>Title: <br><br><br><br><br><br>REPRINTS DESK, INC.<br><br><br><br><br><br>By: <br><br>Name: <br><br>Title:	BANK USE ONLY<br><br><br><br>Received by: _____________________<br><br>authorized signer<br><br>Date: _________________________<br><br><br><br>Verified: ________________________<br><br>authorized signer<br><br>Date: _________________________<br><br><br><br>Compliance Status:Yes No

123585318v6 220763.003059

Schedule 1 to Compliance Certificate

Financial Covenants of Borrower

In the event of a conflict between this Schedule and the Agreement, the terms of the Agreement shall govern.

Dated:____________________

I.Adjusted Quick Ratio (Section 6.9(a))

Required:1.15:1.00

Actual:

A.	Aggregate value of the unrestricted and unencumbered cash and cash equivalents of Borrower and its Subsidiaries maintained with Bank	$
B.	Aggregate value of the net billed accounts receivable of Borrower and its Subsidiaries	$
C.	Quick Assets (the sum of lines A and B)	$
D.	Aggregate value of Obligations to Bank	$
E.	Aggregate value of liabilities of Borrower and its Subsidiaries (including all Indebtedness) that matures within one (1) year and current portion of Subordinated Debt permitted by Bank to be paid by Borrower less the current portion of Deferred Revenue and less the current portion of accrued lease liabilities	$
F.	Current Liabilities (the sum of lines D and E)	$
G.	Adjusted Quick Ratio (line C divided by line F)

Is line G equal to or greater than 1.15:1:00?

No, not in compliance Yes, in compliance 123585318v6 220763.003059

Submission Proof - 21-4610-1

Exhibit 31.1

RULE 13a-14(a) CERTIFICATION

I, Roy W. Olivier, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Research Solutions, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
---	---
c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
---	---
d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
---	---

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
---	---


Date: May 13, 2022		/s/ Roy W. Olivier
		Roy W. Olivier
		Chief Executive Officer and President<br><br>(Principal Executive Officer)

Submission Proof - 21-4610-1

Exhibit 31.2

RULE 13a-14(a) CERTIFICATION

I, William Nurthen, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Research Solutions, Inc.;

a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
---	---
c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
---	---
d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
---	---

a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
---	---


Date: May 13, 2022		/s/ William Nurthen
		William Nurthen
		Chief Financial Officer (Principal Financial and
		Accounting Officer)

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Research Solutions, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Roy W. Olivier, Interim Chief Executive Officer and President, and Director of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Roy W. Olivier
Roy W. Olivier
Chief Executive Officer and President<br><br>(Principal Executive Officer)
May 13, 2022

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Research Solutions, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, William Nurthen, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ William Nurthen
William Nurthen
Chief Financial Officer (Principal Financial and Accounting Officer)
May 13, 2022