Reports 18% Revenue Increase, ARR of
$17.4 Million and Record Cash
Flow
HENDERSON, Nev., Sept. 19,
2024 /PRNewswire/ -- Research Solutions,
Inc. (NASDAQ: RSSS), a trusted partner providing cloud-based
workflow solutions to accelerate research for R&D-driven
organizations, reported record financial results for its fourth
quarter and full fiscal year ended June 30,
2024.
Fiscal Fourth Quarter 2024 Summary (compared to prior-year
quarter)
- Total revenue of $12.1 million, a
22% increase.
- Platform revenue up 86% to $4.3 million. Platform revenue
accounted for 35% of the revenue as compared to 23% in the prior
year.
- Annual Recurring Revenue ("ARR") up 84% to $17.4 million,
which includes approximately $12.1
million of B2B recurring revenue and $5.4M of B2C recurring revenue.
- Gross profit up 44%. Total gross margin improved 710 basis
points to 46.5%.
- Net loss of $2.8 million, or
($0.09) per diluted share, compared
to $376,000 or $0.01 per diluted share. The quarter's result
includes a charge of approximately $4.3
million related to increasing the projected earnout for
Scite.
- Adjusted EBITDA of $1.4 million,
a 70% improvement and a Company quarterly record, compared to
$825,000.
- Cash flow from operations of $2.0
million, compared to $1.5
million, a 30% improvement.
Fiscal Year 2024 Summary (compared to Fiscal 2023)
- Total revenue of $44.6 million,
an 18% increase.
- Platform revenue up 61% to $14.0 million. Transaction
revenue increased 5.7% to $30.7
million.
- Gross profit up 34%. Total gross margin improved 500 basis
points to 44.0%.
- Net loss of $3.8 million, or
($0.13) per diluted share, including
the previously mentioned $4.3 million
charge and $1.5 million in proxy and
acquisition-related expenses, compared to net income of
$572,000 or $0.02 per diluted share.
- Adjusted EBITDA of $2.2 million,
which is inclusive of proxy and acquisition-related expenses of
$1.4 million, a Company record,
compared to $2.0 million.
- Cash flow from operations of $3.6
million, a Company record, compared to $3.4 million.
"Fiscal 2024 was a transformational year for the Company. We
completed two acquisitions which helped position us as a vertical
SaaS and AI company, helping researchers throughout their entire
workflow. The integration of these acquisitions and our operational
execution were meaningful contributors to our 85% year-over-year
ARR growth and the double-digit increase in Adjusted EBITDA," said
Roy W. Olivier, President and CEO of
Research Solutions. "There are many untapped market opportunities
where our highly specialized product offerings can serve as a vital
piece of the research process. Overall, we believe we are
well-positioned to deliver meaningful ARR growth while expanding
Adjusted EBITDA margins, creating long-term value for our
shareholders."
Fiscal Fourth Quarter 2024 Results
Total revenue was $12.1 million, a
22% increase from $10.0 million in
the year-ago quarter primarily driven by increased platform revenue
versus the prior-year period due to revenue from the Company's
acquisitions as well as organic platform revenue growth.
Platform subscription revenue for the quarter was $4.3 million, an 86% year-over-year increase. The
increase was primarily due to the acquisition of Scite, as well as
organic growth in the core Article Galaxy platform. The quarter
ended with annual recurring revenue of $17.4
million, up 84% year-over-year (see the company's definition
of annual recurring revenue below).
Transaction revenue was $7.9
million, compared to $7.7
million in the fourth quarter of fiscal 2023. The
transaction active customer count for the quarter was 1,398,
compared to 1,404 customers in the prior-year quarter (see the
company's definition of active customer accounts and transactions
below).
Total gross margin improved 710 basis points from the prior-year
quarter to 46.5%. The increase was primarily driven by the
continued revenue mix shift to the higher-margin Platforms
business, as well as a 70 basis point increase in margins in the
transactions business.
Total operating expenses were $5.0
million, compared to $3.7
million in the fourth quarter of 2023. The increase was
primarily related to the additional cost base associated with the
aforementioned acquisitions, as well as increased non-cash
depreciation and amortization expense related to such
acquisitions.
Other expense for the quarter was approximately $3.5 million, compared to other income of
$120,000 in the prior-year quarter.
The primary driver of this was $4.3M
of expense related to increasing the earn-out assumption associated
with the Scite acquisition.
Net loss in the fourth quarter was $2.8
million, or ($0.09) per
diluted share, compared to net income of $376,000, or $0.01
per diluted share, in the prior-year quarter. Adjusted EBITDA was
$1.4 million, compared to
$825,000 in the year-ago quarter (see
definition and further discussion about the presentation of
Adjusted EBITDA, a non-GAAP term, below).
Full-Year Fiscal 2024 Results
Total revenue was $44.6 million,
an 18% increase from fiscal 2023, driven by both increased platform
revenue and transaction revenue.
Platform subscription revenue for fiscal 2024 was $14.0 million, a 61% year-over-year increase. The
increase was primarily due to the acquisition of Scite, as well as
organic growth in the core Article Galaxy platform.
Transaction revenue was $30.7
million, compared to $29.0
million in fiscal 2023. The increase was driven by organic
growth and the impact of a full year of contribution from the
acquisition of contracts from FIZ Karlsruhe, compared to six months
in fiscal 2023.
Total gross margin improved 500 basis points from the prior-year
to 44.0%. The increase was primarily driven by the continued
revenue mix shift to the higher-margin Platforms business, as well
as a 100 basis point increase in margins in the transactions
business related to pricing initiatives.
Total operating expenses for the year were $20.4 million, compared to $14.5 million in fiscal 2023. The increase was
primarily related to the additional cost base associated with the
acquisitions, including increased non-cash depreciation and
amortization expense related to such acquisitions, as well as the
aforementioned proxy and acquisition-related expenses.
Net loss for fiscal 2024 was $3.8
million, or ($0.13) per
diluted share, compared to net income of $572,000, or $0.02
per diluted share, in the prior-year. Adjusted EBITDA was
$2.2 million, compared to
$2.0 million in fiscal 2023 (see
definition and further discussion about the presentation of
Adjusted EBITDA, a non-GAAP term, below).
Conference Call
Research Solutions President and CEO
Roy W. Olivier and CFO Bill Nurthen will host the conference call,
followed by a question and answer period.
Date: Thursday, September 19,
2024
Time: 5:00 p.m. ET (2:00 p.m. PT)
Dial-in number: 1-412-317-5180
The conference call will be broadcast live and available for
replay until October 19, 2024 by
dialing 1-412-317-6671 and using the replay ID 10191850, and
via the investor relations section of the company's website at
http://researchsolutions.investorroom.com/.
Fiscal Fourth Quarter Financial and Operational Summary
Tables vs. Prior-Year Quarter
|
|
Quarter Ended June
30,
|
|
Twelve Months Ended
June 30,
|
|
|
2024
|
2023
|
Change
|
%
Change
|
|
2024
|
2023
|
Change
|
%
Change
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
Platforms
|
$
4,277,338
|
$ 2,303,375
|
$
1,973,963
|
85.7 %
|
|
$ 13,956,517
|
$
8,683,246
|
$
5,273,271
|
60.7 %
|
|
Transactions
|
$
7,856,176
|
$ 7,656,342
|
199,834
|
2.6 %
|
|
$ 30,667,382
|
$ 29,020,206
|
1,647,176
|
5.7 %
|
|
Total
Revenue
|
12,133,514
|
9,959,717
|
2,173,797
|
21.8 %
|
|
44,623,899
|
37,703,452
|
6,920,447
|
18.4 %
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit:
|
|
|
|
|
|
|
|
|
|
|
Platforms
|
3,650,286
|
2,028,265
|
1,622,021
|
80.0 %
|
|
11,889,314
|
7,655,960
|
4,233,353
|
55.3 %
|
|
Transactions
|
1,992,580
|
1,892,278
|
100,302
|
5.3 %
|
|
7,750,852
|
7,044,931
|
705,921
|
10.0 %
|
|
Total Gross
Profit
|
5,642,866
|
3,920,543
|
1,722,323
|
43.9 %
|
|
19,640,166
|
14,700,891
|
4,939,274
|
33.6 %
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit as a % of
revenue:
|
|
|
|
|
|
|
|
|
|
|
Platforms
|
85.3 %
|
88.1 %
|
-2.7 %
|
|
|
85.2 %
|
88.2 %
|
-3.0 %
|
|
|
Transactions
|
25.4 %
|
24.7 %
|
0.6 %
|
|
|
25.3 %
|
24.3 %
|
1.0 %
|
|
|
Total Gross
Profit
|
46.5 %
|
39.4 %
|
7.1 %
|
|
|
44.0 %
|
39.0 %
|
5.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
830,195
|
455,030
|
375,165
|
82.4 %
|
|
3,442,503
|
2,285,478
|
1,157,025
|
50.6 %
|
|
Technology and product
development
|
1,489,491
|
991,093
|
498,398
|
50.3 %
|
|
5,442,382
|
3,742,192
|
1,700,190
|
45.4 %
|
|
General and
administrative
|
1,917,907
|
1,649,333
|
268,574
|
16.3 %
|
|
8,511,697
|
6,654,012
|
1,857,685
|
27.9 %
|
|
Depreciation and
amortization
|
311,004
|
22,163
|
288,841
|
1303.3 %
|
|
836,271
|
52,649
|
783,622
|
1488.4 %
|
|
Stock-based
compensation
|
426,190
|
585,384
|
(159,194)
|
-27.2 %
|
|
2,155,461
|
1,849,906
|
305,555
|
16.5 %
|
|
Foreign currency
translation loss
|
6,336
|
(37,743)
|
44,079
|
116.8 %
|
|
21,395
|
(121,953)
|
143,348
|
117.5 %
|
|
Total Operating
Expenses
|
4,981,123
|
3,665,260
|
1,315,863
|
35.9 %
|
|
20,409,709
|
14,462,284
|
5,947,425
|
41.1 %
|
|
Income (loss) from
operations
|
661,743
|
255,283
|
406,460
|
159.2 %
|
|
(769,543)
|
238,608
|
(1,008,151)
|
-422.5 %
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expenses):
|
|
|
|
|
|
|
|
|
|
|
Other income
|
(3,451,948)
|
120,522
|
(3,572,470)
|
NM
|
|
(2,903,983)
|
338,617
|
(3,242,600)
|
NM
|
|
Provision for income
taxes
|
(31,022)
|
(59)
|
(30,963)
|
NM
|
|
(113,071)
|
(5,602)
|
(107,469)
|
NM
|
|
Total Other Income
(Expenses):
|
(3,482,970)
|
120,463
|
(3,603,433)
|
NM
|
|
(3,017,054)
|
333,015
|
(3,350,069)
|
NM
|
|
Net income
(loss)
|
$
(2,821,227)
|
$
375,746
|
(3,196,973)
|
NM
|
|
$
(3,786,597)
|
$ 571,623
|
(4,358,220)
|
NM
|
|
|
|
|
|
|
|
|
|
NM
|
|
Adjusted
EBITDA
|
$
1,405,273
|
$
825,087
|
$ 580,186
|
70.3 %
|
|
$
2,243,584
|
$
2,019,210
|
$ 224,374
|
11.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended June
30,
|
|
Twelve Months Ended
June 30,
|
|
|
2024
|
2023
|
Change
|
%
Change
|
|
2024
|
2023
|
Change
|
%
Change
|
|
Platforms:
|
|
|
|
|
|
|
|
|
|
|
B2B ARR (Annual
recurring revenue*):
|
|
|
|
|
|
|
|
|
|
|
Beginning of
Period
|
$ 11,653,063
|
$ 9,107,681
|
$
2,545,382
|
27.9 %
|
|
$
9,444,130
|
$
7,922,188
|
$
1,521,942
|
19.2 %
|
|
Incremental ARR
|
407,139
|
336,448
|
70,691
|
21.0 %
|
|
2,616,072
|
1,521,941
|
1,094,131
|
71.9 %
|
|
End of
Period
|
$ 12,060,202
|
$ 9,444,129
|
$
2,616,073
|
27.7 %
|
|
$ 12,060,202
|
$
9,444,129
|
$
2,616,073
|
27.7 %
|
|
|
|
|
|
|
|
|
|
|
|
Deployments:
|
|
|
|
|
|
|
|
|
|
|
Beginning of
Period
|
983
|
815
|
168
|
20.6 %
|
|
835
|
733
|
102
|
13.9 %
|
|
Incremental Deployments
|
38
|
20
|
18
|
90.0 %
|
|
186
|
102
|
84
|
82.4 %
|
|
End of
Period
|
1,021
|
835
|
186
|
22.3 %
|
|
1,021
|
835
|
186
|
22.3 %
|
|
|
|
|
|
|
|
|
|
|
|
ASP (Average sales
price):
|
|
|
|
|
|
|
|
|
|
|
Beginning of
Period
|
$
11,855
|
$ 11,175
|
$
680
|
6.1 %
|
|
$
11,310
|
$
10,808
|
$
502
|
4.6 %
|
|
End of
Period
|
$
11,812
|
$ 11,310
|
$
502
|
4.4 %
|
|
$
11,812
|
$
11,310
|
$
502
|
4.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
B2C ARR (Annual
recurring revenue*):
|
|
|
|
|
|
|
|
|
|
|
Beginning of
Period
|
$
4,902,975
|
$
-
|
$
4,902,975
|
|
|
$
-
|
$
-
|
$
-
|
|
|
Incremental ARR
|
460,154
|
-
|
460,154
|
NM
|
|
5,363,129
|
-
|
5,363,129
|
NM
|
|
End of
Period
|
$
5,363,129
|
$
-
|
$
5,363,129
|
NM
|
|
$
5,363,129
|
$
-
|
$
5,363,129
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
Total ARR (Annualized
recurring revenue):
|
$ 17,423,331
|
$ 9,444,129
|
$
7,979,202
|
84.5 %
|
|
$ 17,423,331
|
$
9,444,129
|
$
7,979,202
|
84.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction
Customers:
|
|
|
|
|
|
|
|
|
|
|
Corporate
customers
|
1,093
|
1,090
|
3
|
0.3 %
|
|
1,088
|
1,012
|
76
|
7.5 %
|
|
Academic
customers
|
305
|
314
|
(9)
|
-2.9 %
|
|
316
|
304
|
12
|
4.0 %
|
|
Total
customers
|
1,398
|
1,404
|
(6)
|
-0.4 %
|
|
1,404
|
1,316
|
88
|
6.7 %
|
Active Customer Accounts, Transactions and Annual Recurring
Revenue
The company defines active customer accounts as the sum of the
total quantity of customers per month for each month in the period
divided by the respective number of months in the period. The
quantity of customers per month is defined as customers with at
least one transaction during the month.
A transaction is an order for a unit of copyrighted content
fulfilled or managed in the Platform.
The company defines annual recurring revenue ("ARR") as the
value of contracted Platform subscription recurring revenue
normalized to a one-year period. For B2C ARR, this includes
the annualized value of monthly subscriptions, meaning their
monthly value multiplied by twelve.
Use of Non-GAAP Measure – Adjusted EBITDA
Research Solutions' management evaluates and makes operating
decisions using various financial metrics. In addition to the
company's GAAP results, management also considers the non-GAAP
measure of Adjusted EBITDA. Management believes that this non-GAAP
measure provides useful information about the company's operating
results.
The tables below provide a reconciliation of this non-GAAP
financial measure with the most directly comparable GAAP financial
measure. Adjusted EBITDA is defined as net income (loss), plus
interest expense, other income (expense) including any change in
fair value of contingent earnout liability, foreign currency
transaction loss, provision for income taxes, depreciation and
amortization, stock-based compensation, gain on sale of
discontinued operations, and other potential adjustments that may
arise. Set forth below is a reconciliation of Adjusted EBITDA to
net income (loss):
|
|
Quarter Ended June
30,
|
|
Twelve Months Ended
June 30,
|
|
|
2024
|
2023
|
Change
|
%
Change
|
|
2024
|
2023
|
Change
|
%
Change
|
|
Net Income
(loss)
|
$
(2,821,227)
|
$
375,746
|
$
(3,196,973)
|
NM
|
|
$
(3,786,597)
|
$ 571,623
|
$(4,358,220)
|
NM
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
-
|
|
|
Other income
(expense)
|
3,451,948
|
(120,522)
|
3,572,470
|
NM
|
|
2,903,983
|
(338,617)
|
3,242,600
|
NM
|
|
Foreign currency
translation loss
|
6,336
|
(37,743)
|
44,079
|
116.8 %
|
|
21,395
|
(121,953)
|
143,348
|
117.5 %
|
|
Provision for income
taxes
|
31,022
|
59
|
30,963
|
NM
|
|
113,071
|
5,602
|
107,469
|
NM
|
|
Depreciation and
amortization
|
311,004
|
22,163
|
288,841
|
1303.3 %
|
|
836,271
|
52,649
|
783,622
|
1488.4 %
|
|
Stock-based
compensation
|
426,190
|
585,384
|
(159,194)
|
-27.2 %
|
|
2,155,461
|
1,849,906
|
305,555
|
16.5 %
|
|
Gain on sale of disc.
ops.
|
-
|
-
|
-
|
|
|
-
|
-
|
-
|
|
|
Adjusted
EBITDA
|
$
1,405,273
|
$
825,087
|
$ 580,186
|
70.3 %
|
|
$
2,243,584
|
$
2,019,210
|
$ 224,374
|
11.1 %
|
About Research Solutions
Research Solutions,
Inc. (NASDAQ: RSSS) provides cloud-based technologies to streamline
the process of obtaining, managing, and creating intellectual
property. Founded in 2006 as Reprints Desk, the company was a
pioneer in developing solutions to serve researchers. Today, more
than 70 percent of the top pharmaceutical companies, prestigious
universities, and emerging businesses rely on Article Galaxy, the
company's SaaS research platform, to streamline access to the
latest scientific research and data with 24/7 customer support. For
more information and details, please visit
www.researchsolutions.com
Important Cautions Regarding Forward-Looking
Statements
Certain statements in this press release may contain
"forward-looking statements" regarding future events and our future
results. All statements other than statements of historical
facts are statements that could be deemed to be forward-looking
statements. These statements are based on current expectations,
estimates, forecasts, and projections about the markets in which we
operate and the beliefs and assumptions of our management. Words
such as "expects," "anticipates," "targets," "goals," "projects",
"intends," "plans," "believes," "seeks," "estimates," "endeavors,"
"strives," "may," or variations of such words, and similar
expressions are intended to identify such forward-looking
statements. Readers are cautioned that these forward-looking
statements are subject to a number of risks, uncertainties and
assumptions that are difficult to predict, estimate or verify.
Therefore, actual results may differ materially and adversely from
those expressed in any forward-looking statements. Such risks and
uncertainties include those factors described in the Company's most
recent annual report on Form 10-K, as such may be amended or
supplemented by subsequent quarterly reports on Form 10-Q, or other
reports filed with the Securities and Exchange Commission. Examples
of forward-looking statements in this release include statements
regarding enhanced product offerings, additional customers, and the
Company's prospects for growth. Readers are cautioned not to place
undue reliance on these forward-looking statements. The
forward-looking statements are made only as of the date hereof, and
the Company undertakes no obligation to publicly release the result
of any revisions to these forward-looking statements. For more
information, please refer to the Company's filings with the
Securities and Exchange Commission.
|
Research Solutions,
Inc. and Subsidiaries
Consolidated Balance
Sheets
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
2024
|
|
2023
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
6,100,031
|
|
$
|
13,545,333
|
|
Accounts receivable,
net of allowance of $68,579 and $85,015, respectively
|
|
|
6,879,800
|
|
|
6,153,063
|
|
Prepaid expenses and
other current assets
|
|
|
643,553
|
|
|
400,340
|
|
Prepaid
royalties
|
|
|
1,067,237
|
|
|
1,202,678
|
|
Total current
assets
|
|
|
14,690,621
|
|
|
21,301,414
|
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
Property and equipment,
net of accumulated depreciation of $922,558 and $881,908,
respectively
|
|
|
88,011
|
|
|
70,193
|
|
Intangible assets, net
of accumulated amortization of $1,535,310 and $747,355,
respectively ($8,343,056 provisional)
|
|
|
10,764,261
|
|
|
462,068
|
|
Goodwill ($13,171,486
provisional)
|
|
|
16,315,888
|
|
|
—
|
|
Deposits and other
assets
|
|
|
981
|
|
|
1,052
|
|
Total
assets
|
|
$
|
41,859,762
|
|
$
|
21,834,727
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
8,843,612
|
|
$
|
8,079,516
|
|
Deferred
revenue
|
|
|
9,023,848
|
|
|
6,424,724
|
|
Total current
liabilities
|
|
|
17,867,460
|
|
|
14,504,240
|
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
Contingent earnout
liability
|
|
|
12,298,114
|
|
|
—
|
|
Total
liabilities
|
|
|
30,165,574
|
|
|
14,504,240
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Preferred stock; $0.001
par value; 20,000,000 shares authorized; no shares issued and
outstanding
|
|
|
—
|
|
|
—
|
|
Common stock; $0.001
par value; 100,000,000 shares authorized; 32,295,373 and
29,487,508 shares issued and outstanding,
respectively
|
|
|
32,295
|
|
|
29,487
|
|
Additional paid-in
capital
|
|
|
38,089,958
|
|
|
29,941,873
|
|
Accumulated
deficit
|
|
|
(26,309,246)
|
|
|
(22,522,649)
|
|
Accumulated other
comprehensive loss
|
|
|
(118,819)
|
|
|
(118,224)
|
|
Total stockholders'
equity
|
|
|
11,694,188
|
|
|
7,330,487
|
|
Total liabilities
and stockholders' equity
|
|
$
|
41,859,762
|
|
$
|
21,834,727
|
|
Research Solutions,
Inc. and Subsidiaries
Consolidated Statements of
Operations and Other Comprehensive Loss
|
|
|
|
Years Ended
|
|
|
June 30,
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Platforms
|
|
$
|
13,956,517
|
|
$
|
8,683,246
|
|
Transactions
|
|
|
30,667,382
|
|
|
29,020,206
|
|
Total
revenue
|
|
|
44,623,899
|
|
|
37,703,452
|
|
|
|
|
|
|
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Platforms
|
|
|
2,067,203
|
|
|
1,027,286
|
|
Transactions
|
|
|
22,916,530
|
|
|
21,975,275
|
|
Total cost of
revenue
|
|
|
24,983,733
|
|
|
23,002,561
|
|
Gross profit
|
|
|
19,640,166
|
|
|
14,700,891
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
19,573,438
|
|
|
14,409,634
|
|
Depreciation and
amortization
|
|
|
836,271
|
|
|
52,649
|
|
Total operating
expenses
|
|
|
20,409,709
|
|
|
14,462,283
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
(769,543)
|
|
|
238,608
|
|
|
|
|
|
|
|
|
Other income
|
|
|
333,088
|
|
|
338,617
|
|
Change in fair value of
contingent earnout liability
|
|
|
(3,237,071)
|
|
|
—
|
|
|
|
|
|
|
|
|
Income (loss) from
operations before provision for income taxes
|
|
|
(3,673,526)
|
|
|
577,225
|
|
Provision for income
taxes
|
|
|
(113,071)
|
|
|
(5,602)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
(3,786,597)
|
|
|
571,623
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
Foreign currency
translation
|
|
|
(595)
|
|
|
3,717
|
|
Comprehensive income
(loss)
|
|
$
|
(3,787,192)
|
|
$
|
575,340
|
|
|
|
|
|
|
|
|
Basic income (loss) per
common share:
|
|
|
|
|
|
|
|
Net income (loss) per
share
|
|
$
|
(0.13)
|
|
$
|
0.02
|
|
Weighted average
common shares outstanding
|
|
|
28,863,949
|
|
|
26,860,761
|
|
|
|
|
|
|
|
|
Diluted income (loss)
per common share:
|
|
|
|
|
|
|
|
Net income (loss) per
share
|
|
$
|
(0.13)
|
|
$
|
0.02
|
|
Weighted average
common shares outstanding
|
|
|
28,863,949
|
|
|
29,139,759
|
|
Research Solutions,
Inc. and Subsidiaries
Consolidated Statements of Cash
Flows
|
|
|
|
Years
Ended
|
|
|
June 30,
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(3,786,597)
|
|
$
|
571,623
|
|
Adjustment to reconcile
net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
836,271
|
|
|
52,649
|
|
Fair value of vested
stock options
|
|
|
140,150
|
|
|
375,189
|
|
Fair value of vested
restricted common stock
|
|
|
1,994,362
|
|
|
1,418,718
|
|
Fair value of vested
unrestricted common stock
|
|
|
—
|
|
|
68,272
|
|
Modification cost of
accelerated vesting of restricted common stock
|
|
|
20,949
|
|
|
56,000
|
|
Adjustment to
contingent earnout liability
|
|
|
3,237,071
|
|
|
—
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(344,020)
|
|
|
(901,518)
|
|
Prepaid expenses and
other current assets
|
|
|
(164,579)
|
|
|
(124,314)
|
|
Prepaid
royalties
|
|
|
135,441
|
|
|
(356,026)
|
|
Accounts payable and
accrued expenses
|
|
|
560,027
|
|
|
1,337,056
|
|
Deferred
revenue
|
|
|
921,879
|
|
|
886,198
|
|
Net cash provided by
operating activities
|
|
|
3,550,954
|
|
|
3,383,847
|
|
|
|
|
|
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(71,510)
|
|
|
(47,209)
|
|
Payment for acquisition
of Resolute, net of cash acquired
|
|
|
(2,718,253)
|
|
|
—
|
|
Payment for acquisition
of Scite, net of cash acquired
|
|
|
(7,305,493)
|
|
|
—
|
|
Payment for
non-refundable deposit for asset acquisition
|
|
|
—
|
|
|
(297,450)
|
|
Net cash used in
investing activities
|
|
|
(10,095,256)
|
|
|
(344,659)
|
|
|
|
|
|
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from the
exercise of stock options
|
|
|
—
|
|
|
57,500
|
|
Common stock
repurchase
|
|
|
(554,202)
|
|
|
(104,250)
|
|
Payment of contingent
acquisition consideration
|
|
|
(351,649)
|
|
|
(50,509)
|
|
Net cash used in
financing activities
|
|
|
(905,851)
|
|
|
(97,259)
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes
|
|
|
4,851
|
|
|
229
|
|
Net increase (decrease)
in cash and cash equivalents
|
|
|
(7,445,302)
|
|
|
2,942,158
|
|
Cash and cash
equivalents, beginning of period
|
|
|
13,545,333
|
|
|
10,603,175
|
|
Cash and cash
equivalents, end of period
|
|
$
|
6,100,031
|
|
$
|
13,545,333
|
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
|
Cash paid for income
taxes
|
|
$
|
113,071
|
|
$
|
5,602
|
|
|
|
|
|
|
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
|
|
|
Contingent
consideration accrual on asset acquisition
|
|
$
|
32,022
|
|
$
|
138,428
|
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SOURCE Research Solutions, Inc.