Reports 17% Revenue Increase, ARR of
$16.6 Million
Positive Net
Income and Record Adjusted EBITDA
HENDERSON, Nev., May 9, 2024
/PRNewswire/ -- Research Solutions, Inc. (NASDAQ:
RSSS), a trusted partner providing cloud-based workflow solutions
to accelerate research for R&D-driven organizations, reported
financial results for its fiscal third quarter ended March 31, 2024.
Fiscal Third Quarter 2024 Summary (compared to prior-year
quarter)
- Total revenue of $12.1 million, a
17% increase.
- Platform revenue up 76% to $4.0 million. Annual Recurring
Revenue ("ARR") up 82% to $16.6 million, which includes
approximately $11.7 million of B2B
recurring revenue and $4.9M of B2C
recurring revenue.
- Gross profit up 36%. Total gross margin improved 630 basis
points to 45.2%.
- Net income of $76,000 or
$0.00 per diluted share, compared to
$237,000 or $0.01 per diluted share.
- Adjusted EBITDA of $961,000, a
Company quarterly record, compared to $559,000.
- Quarterly cash flow from operations of over $2 million, also a Company quarterly record,
compared to $0.8 million.
"Our third quarter performance reflects the first full quarter
of contribution from Scite and continued progress integrating Scite
and ResoluteAI within our Article Galaxy platform. While we
realized some anticipated churn in ResoluteAI ARR in the quarter,
we experienced strong growth in both Scite B2B and B2C ARR, closing
some large cross-sell opportunities with existing customers," said
Roy W. Olivier, President and CEO of
Research Solutions. "During the quarter we launched two new product
offerings, Technology Landscape and Clinical Trial Landscape, both
of which harness our ability to simultaneously search across
multiple datasets, extracting and synthesizing insights into use
case specific outputs as part of our strategy to deliver workflows
that save time for our customers. The highly specialized
value proposition for our product offerings continues to grow as we
serve as a critical piece of the research process, giving users the
opportunity to effectively discover, acquire and manage the most
relevant content all in one place. Overall, we believe our
offerings and expanded addressable market will deliver meaningful
growth and long-term value for our shareholders."
Fiscal Third Quarter 2024 Results
Total revenue was $12.1 million, a
17% increase from $10.3 million in
the year-ago quarter primarily driven by increased platform revenue
from the prior-year period which included a full quarter of revenue
from the acquisitions of ResoluteAI and Scite.
Platform subscription revenue for the quarter was $4.0 million, a 76% year-over-year increase. The
increase was primarily due to the acquisitions of ResoluteAI and
Scite, as well as organic growth in the core Article Galaxy
platform. The quarter ended with annual recurring revenue of
$16.6 million, up 82% year-over-year
(see the company's definition of annual recurring revenue
below).
Transaction revenue was $8.2
million, compared to $8.1
million in the third quarter of fiscal 2023. This quarter
represents the first comparable period following the acquisition of
contracts from FIZ Karlsruhe, which was effective January 1, 2023. The transaction active customer
count for the quarter was 1,426, compared to 1,417 customers in the
prior-year quarter (see the company's definition of active customer
accounts and transactions below).
Total gross margin improved 630 basis points from the prior-year
quarter to 45.2%. The increase was primarily driven by the
continued revenue mix shift to the higher-margin Platforms
business, as well as a modest increase in margins in the
transactions business.
Total operating expenses were $5.4
million, compared to $3.9
million in the third quarter of 2023. The increase was
primarily related to the additional expense base associated with
the acquisitions of ResoluteAI and Scite.
Net income in the third quarter was $76,000, or $0.00
per share on a fully diluted basis, compared to $237,000, or $0.01
per diluted share, in the prior-year quarter. Adjusted EBITDA was
$961,000, compared to $559,000 in the year-ago quarter (see definition
and further discussion about the presentation of Adjusted EBITDA, a
non-GAAP term, below).
Conference Call
Research Solutions President and CEO Roy
W. Olivier and CFO Bill
Nurthen will host the conference call, followed by a
question and answer period.
Date: Thursday, May 9, 2024
Time: 5:00 p.m. ET (2:00 p.m. PT)
Dial-in number: 1-785-424-1699
Conference ID: RESEARCH
The conference call will be broadcast live and available for
replay until June 9, 2024 by
dialing 1-412-317-6671 and using the replay ID 11155728, and
via the investor relations section of the company's website at
http://researchsolutions.investorroom.com/.
Fiscal Third Quarter
Financial and Operational Summary Tables vs. Prior-Year
Quarter
|
|
|
Quarter Ended March
31,
|
|
Nine Months Ended
March 31,
|
|
|
2024
|
2023
|
Change
|
%
Change
|
|
2024
|
2023
|
Change
|
%
Change
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
Platforms
|
$ 3,953,403
|
$
2,249,632
|
$
1,703,771
|
75.7 %
|
|
$ 9,679,179
|
$ 6,379,871
|
$
3,299,308
|
51.7 %
|
|
Transactions
|
$ 8,162,269
|
$
8,092,794
|
69,475
|
0.9 %
|
|
$
22,811,206
|
$
21,363,864
|
1,447,342
|
6.8 %
|
Total
Revenue
|
12,115,672
|
10,342,426
|
1,773,246
|
17.1 %
|
|
32,490,385
|
27,743,735
|
4,746,650
|
17.1 %
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit:
|
|
|
|
|
|
|
|
|
|
|
Platforms
|
3,382,051
|
1,981,002
|
1,401,049
|
70.7 %
|
|
8,239,028
|
5,627,695
|
2,611,333
|
46.4 %
|
|
Transactions
|
2,099,881
|
2,046,271
|
53,610
|
2.6 %
|
|
5,758,272
|
5,152,653
|
605,619
|
11.8 %
|
Total Gross
Profit
|
5,481,932
|
4,027,273
|
1,454,659
|
36.1 %
|
|
13,997,300
|
10,780,348
|
3,216,952
|
29.8 %
|
|
|
|
|
|
|
|
|
|
|
Gross profit as a % of
revenue:
|
|
|
|
|
|
|
|
|
|
|
Platforms
|
85.5 %
|
88.1 %
|
-2.5 %
|
|
|
85.1 %
|
88.2 %
|
-3.1 %
|
|
|
Transactions
|
25.7 %
|
25.3 %
|
0.4 %
|
|
|
25.2 %
|
24.1 %
|
1.1 %
|
|
Total Gross
Profit
|
45.2 %
|
38.9 %
|
6.3 %
|
|
|
43.1 %
|
38.9 %
|
4.2 %
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
1,122,365
|
642,624
|
479,741
|
74.7 %
|
|
2,612,308
|
1,830,448
|
781,860
|
42.7 %
|
|
Technology and product
development
|
1,371,754
|
953,677
|
418,077
|
43.8 %
|
|
3,952,891
|
2,751,099
|
1,201,792
|
43.7 %
|
|
General and
administrative
|
2,027,074
|
1,871,591
|
155,483
|
8.3 %
|
|
6,593,791
|
5,004,679
|
1,589,112
|
31.8 %
|
|
Depreciation and
amortization
|
309,898
|
18,332
|
291,566
|
1590.5 %
|
|
525,267
|
30,486
|
494,781
|
1623.0 %
|
|
Stock-based
compensation
|
541,002
|
480,458
|
60,544
|
12.6 %
|
|
1,729,271
|
1,264,522
|
464,749
|
36.8 %
|
|
Foreign currency
translation loss
|
22,177
|
(72,547)
|
94,724
|
NM
|
|
15,059
|
(84,210)
|
99,269
|
NM
|
Total Operating
Expenses
|
5,394,270
|
3,894,135
|
1,500,135
|
38.5 %
|
|
15,428,587
|
10,797,024
|
4,631,563
|
42.9 %
|
Income (loss) from
operations
|
87,663
|
133,139
|
(45,476)
|
-34.2 %
|
|
(1,431,286)
|
(16,675)
|
(1,414,611)
|
8483.2 %
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expenses):
|
|
|
|
|
|
|
|
|
|
|
Other income
|
31,228
|
104,331
|
(73,103)
|
-70.1 %
|
|
547,965
|
218,095
|
329,870
|
151.3 %
|
|
Provision for income
taxes
|
(42,590)
|
(628)
|
(41,962)
|
NM
|
|
(82,049)
|
(5,543)
|
(76,506)
|
NM
|
Total Other Income
(Expenses):
|
(11,362)
|
103,703
|
(115,065)
|
NM
|
|
465,916
|
212,552
|
253,364
|
119.2 %
|
Net income
(loss)
|
$
76,301
|
$ 236,842
|
(160,541)
|
-67.8 %
|
|
$ (965,370)
|
$
195,877
|
(1,161,247)
|
NM
|
|
|
|
|
|
|
|
|
|
NM
|
Adjusted
EBITDA
|
$
960,740
|
$ 559,382
|
$
401,358
|
71.8 %
|
|
$
838,311
|
$ 1,194,123
|
$ (355,812)
|
-29.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended March
31,
|
|
Nine Months Ended
March 31,
|
|
|
2024
|
2023
|
Change
|
%
Change
|
|
2024
|
2023
|
Change
|
%
Change
|
Platforms:
|
|
|
|
|
|
|
|
|
|
|
B2B ARR (Annual
recurring revenue*):
|
|
|
|
|
|
|
|
|
|
|
Beginning of
Period
|
$
11,614,748
|
$
8,776,977
|
$
2,837,771
|
32.3 %
|
|
$ 9,444,130
|
$ 7,922,188
|
$
1,521,942
|
19.2 %
|
|
Incremental ARR
|
38,315
|
330,704
|
(292,389)
|
-88.4 %
|
|
2,208,933
|
1,185,493
|
1,023,440
|
86.3 %
|
|
End of
Period
|
$
11,653,063
|
$
9,107,681
|
$
2,545,382
|
27.9 %
|
|
$
11,653,063
|
$ 9,107,681
|
$
2,545,382
|
27.9 %
|
|
|
|
|
|
|
|
|
|
|
|
Deployments:
|
|
|
|
|
|
|
|
|
|
|
Beginning of
Period
|
942
|
790
|
152
|
19.2 %
|
|
835
|
733
|
102
|
13.9 %
|
|
Incremental Deployments
|
41
|
25
|
16
|
64.0 %
|
|
148
|
82
|
66
|
80.5 %
|
|
End of
Period
|
983
|
815
|
168
|
20.6 %
|
|
983
|
815
|
168
|
20.6 %
|
|
|
|
|
|
|
|
|
|
|
|
ASP (Average sales
price):
|
|
|
|
|
|
|
|
|
|
|
Beginning of
Period
|
$
12,330
|
$
11,110
|
$
1,220
|
11.0 %
|
|
$
11,310
|
$
10,808
|
$
502
|
4.6 %
|
|
End of
Period
|
$
11,855
|
$
11,175
|
$
680
|
6.1 %
|
|
$
11,855
|
$
11,175
|
$
680
|
6.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
B2C ARR (Annual
recurring revenue*):
|
|
|
|
|
|
|
|
|
|
|
Beginning of
Period
|
$ 3,954,090
|
$
-
|
$
3,954,090
|
|
|
$
-
|
$
-
|
$
-
|
|
|
Incremental ARR
|
948,885
|
-
|
948,885
|
NM
|
|
4,902,975
|
-
|
4,902,975
|
NM
|
|
End of
Period
|
$ 4,902,975
|
$
-
|
$
4,902,975
|
NM
|
|
$ 4,902,975
|
$
-
|
$
4,902,975
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
Total ARR (Annualized
recurring revenue):
|
$
16,556,038
|
$
9,107,681
|
$
7,448,357
|
81.8 %
|
|
$
16,556,038
|
$ 9,107,681
|
$
7,448,357
|
81.8 %
|
|
|
|
|
|
|
|
|
|
|
|
Transaction
Customers:
|
|
|
|
|
|
|
|
|
|
|
Corporate
customers
|
1,105
|
1,116
|
(11)
|
-1.0 %
|
|
1,086
|
986
|
100
|
10.1 %
|
|
Academic
customers
|
321
|
301
|
20
|
6.6 %
|
|
320
|
300
|
20
|
6.7 %
|
|
Total
customers
|
1,426
|
1,417
|
9
|
0.6 %
|
|
1,406
|
1,286
|
120
|
9.3 %
|
Active Customer Accounts, Transactions and Annual Recurring
Revenue
The company defines active customer accounts as the sum of the
total quantity of customers per month for each month in the period
divided by the respective number of months in the period. The
quantity of customers per month is defined as customers with at
least one transaction during the month.
A transaction is an order for a unit of copyrighted content
fulfilled or managed in the Platform.
The company defines annual recurring revenue ("ARR") as the
value of contracted Platform subscription recurring revenue
normalized to a one-year period. For B2C ARR, this includes
the annualized value of monthly subscriptions, meaning their
monthly value multiplied by twelve.
Use of Non-GAAP Measure – Adjusted EBITDA
Research Solutions' management evaluates and makes operating
decisions using various financial metrics. In addition to the
company's GAAP results, management also considers the non-GAAP
measure of Adjusted EBITDA. Management believes that this non-GAAP
measure provides useful information about the company's operating
results.
The tables below provide a reconciliation of this non-GAAP
financial measure with the most directly comparable GAAP financial
measure. Adjusted EBITDA is defined as net income (loss), plus
interest expense, other income (expense), foreign currency
transaction loss, provision for income taxes, depreciation and
amortization, stock-based compensation, gain on sale of
discontinued operations, and other potential adjustments that may
arise. Set forth below is a reconciliation of Adjusted EBITDA to
net income (loss):
|
|
Quarter Ended March
31,
|
|
Nine Months Ended
March 31,
|
|
|
2024
|
2023
|
Change
|
%
Change
|
|
2024
|
2023
|
Change
|
%
Change
|
Net Income
(loss)
|
$
76,301
|
$ 236,842
|
$ (160,541)
|
-67.8 %
|
|
$ (965,370)
|
$
195,877
|
$
(1,161,247)
|
NM
|
Add
(deduct):
|
|
|
|
|
|
|
|
-
|
|
|
Other income
(expense)
|
(31,228)
|
(104,331)
|
73,103
|
-70.1 %
|
|
(547,965)
|
(218,095)
|
(329,870)
|
151.3 %
|
|
Foreign currency
translation loss
|
22,177
|
(72,547)
|
94,724
|
NM
|
|
15,059
|
(84,210)
|
99,269
|
117.9 %
|
|
Provision for income
taxes
|
42,590
|
628
|
41,962
|
NM
|
|
82,049
|
5,543
|
76,506
|
NM
|
|
Depreciation and
amortization
|
309,898
|
18,332
|
291,566
|
1590.5 %
|
|
525,267
|
30,486
|
494,781
|
1623.0 %
|
|
Stock-based
compensation
|
541,002
|
480,458
|
60,544
|
12.6 %
|
|
1,729,271
|
1,264,522
|
464,749
|
36.8 %
|
|
Gain on sale of disc.
ops.
|
-
|
-
|
-
|
|
|
-
|
-
|
-
|
|
Adjusted
EBITDA
|
$
960,740
|
$ 559,382
|
$
401,358
|
71.8 %
|
|
$
838,311
|
$ 1,194,123
|
$ (355,812)
|
-29.8 %
|
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
|
|
|
March 31,
|
|
|
|
|
|
|
2024
|
|
June 30,
|
|
|
|
(unaudited)
|
|
2023
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
4,221,424
|
|
$
|
13,545,333
|
|
Accounts receivable,
net of allowance of $103,319 and $85,015, respectively
|
|
|
7,323,379
|
|
|
6,153,063
|
|
Prepaid expenses and
other current assets
|
|
|
635,000
|
|
|
400,340
|
|
Prepaid
royalties
|
|
|
1,004,790
|
|
|
1,202,678
|
|
Total current
assets
|
|
|
13,184,593
|
|
|
21,301,414
|
|
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
Property and equipment,
net of accumulated depreciation of $920,918 and $881,908,
respectively
|
|
|
94,078
|
|
|
70,193
|
|
Intangible assets, net
of accumulated amortization of $1,237,311 and $747,355,
respectively
($10,527,713 provisional)
|
|
|
11,029,679
|
|
|
462,068
|
|
Goodwill
(provisional)
|
|
|
16,493,763
|
|
|
—
|
|
Deposits and other
assets
|
|
|
1,086
|
|
|
1,052
|
|
Total
assets
|
|
$
|
40,803,199
|
|
$
|
21,834,727
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
9,011,868
|
|
$
|
8,079,516
|
|
Deferred
revenue
|
|
|
8,870,316
|
|
|
6,424,724
|
|
Total current
liabilities
|
|
|
17,882,184
|
|
|
14,504,240
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
Contingent earnout
liability
|
|
|
8,792,756
|
|
|
—
|
|
Total
liabilities
|
|
|
26,674,940
|
|
|
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; 32,281,424 and
29,487,508 shares issued and outstanding,
respectively
|
|
|
32,281
|
|
|
29,487
|
|
Additional paid-in
capital
|
|
|
37,695,960
|
|
|
29,941,873
|
|
Accumulated
deficit
|
|
|
(23,488,019)
|
|
|
(22,522,649)
|
|
Accumulated other
comprehensive loss
|
|
|
(111,963)
|
|
|
(118,224)
|
|
Total stockholders'
equity
|
|
|
14,128,259
|
|
|
7,330,487
|
|
Total liabilities
and stockholders' equity
|
|
$
|
40,803,199
|
|
$
|
21,834,727
|
|
Research Solutions,
Inc. and Subsidiaries
Consolidated
Statements of Operations and Other Comprehensive
Loss
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Platforms
|
|
$
|
3,953,403
|
|
$
|
2,249,632
|
|
$
|
9,679,179
|
|
$
|
6,379,871
|
|
Transactions
|
|
|
8,162,269
|
|
|
8,092,794
|
|
|
22,811,206
|
|
|
21,363,864
|
|
Total
revenue
|
|
|
12,115,672
|
|
|
10,342,426
|
|
|
32,490,385
|
|
|
27,743,735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Platforms
|
|
|
571,352
|
|
|
268,630
|
|
|
1,440,151
|
|
|
752,176
|
|
Transactions
|
|
|
6,062,388
|
|
|
6,046,523
|
|
|
17,052,934
|
|
|
16,211,211
|
|
Total cost of
revenue
|
|
|
6,633,740
|
|
|
6,315,153
|
|
|
18,493,085
|
|
|
16,963,387
|
|
Gross profit
|
|
|
5,481,932
|
|
|
4,027,273
|
|
|
13,997,300
|
|
|
10,780,348
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
5,084,371
|
|
|
3,875,802
|
|
|
14,903,319
|
|
|
10,766,537
|
|
Depreciation and
amortization
|
|
|
309,898
|
|
|
18,332
|
|
|
525,267
|
|
|
30,486
|
|
Total operating
expenses
|
|
|
5,394,269
|
|
|
3,894,134
|
|
|
15,428,586
|
|
|
10,797,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
87,663
|
|
|
133,139
|
|
|
(1,431,286)
|
|
|
(16,675)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
|
|
|
31,228
|
|
|
104,331
|
|
|
547,965
|
|
|
218,095
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations before provision for income taxes
|
|
|
118,891
|
|
|
237,470
|
|
|
(883,321)
|
|
|
201,420
|
|
Provision for income
taxes
|
|
|
(42,590)
|
|
|
(628)
|
|
|
(82,049)
|
|
|
(5,543)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
76,301
|
|
|
236,842
|
|
|
(965,370)
|
|
|
195,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation
|
|
|
858
|
|
|
(4,149)
|
|
|
6,261
|
|
|
(2,801)
|
|
Comprehensive income
(loss)
|
|
$
|
77,159
|
|
$
|
232,693
|
|
$
|
(959,109)
|
|
$
|
193,076
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share
|
|
$
|
-
|
|
$
|
0.01
|
|
$
|
(0.03)
|
|
$
|
0.01
|
|
Weighted average
common shares outstanding
|
|
|
30,020,652
|
|
|
26,929,314
|
|
|
28,377,199
|
|
|
26,820,557
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income (loss)
per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share
|
|
$
|
-
|
|
$
|
0.01
|
|
$
|
(0.03)
|
|
$
|
0.01
|
|
Weighted average
common shares outstanding
|
|
|
33,511,242
|
|
|
29,791,719
|
|
|
28,377,199
|
|
|
28,837,774
|
|
Research Solutions,
Inc. and Subsidiaries
Consolidated
Statements of Cash Flows
(Unaudited)
|
|
|
Nine Months
Ended
|
|
|
|
March 31,
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(965,370)
|
|
$
|
195,877
|
|
Adjustment to reconcile
net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
525,267
|
|
|
30,486
|
|
Fair value of vested
stock options
|
|
|
104,502
|
|
|
338,973
|
|
Fair value of vested
restricted common stock
|
|
|
1,603,820
|
|
|
925,550
|
|
Fair value of vested
unrestricted common stock
|
|
|
—
|
|
|
68,272
|
|
Modification cost of
accelerated vesting of restricted common stock
|
|
|
20,949
|
|
|
—
|
|
Adjustment to
contingent earnout liability
|
|
|
(268,287)
|
|
|
—
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(739,883)
|
|
|
(1,545,695)
|
|
Prepaid expenses and
other current assets
|
|
|
(156,026)
|
|
|
(122,700)
|
|
Prepaid
royalties
|
|
|
197,888
|
|
|
47,760
|
|
Accounts payable and
accrued expenses
|
|
|
498,584
|
|
|
947,789
|
|
Deferred
revenue
|
|
|
768,347
|
|
|
986,044
|
|
Net cash provided by
operating activities
|
|
|
1,589,791
|
|
|
1,872,356
|
|
|
|
|
|
|
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(57,761)
|
|
|
(29,976)
|
|
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
|
|
|
(10,081,507)
|
|
|
(327,426)
|
|
|
|
|
|
|
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from the
exercise of stock options
|
|
|
—
|
|
|
57,500
|
|
Common stock
repurchase
|
|
|
(522,024)
|
|
|
(74,556)
|
|
Payment of contingent
acquisition consideration
|
|
|
(314,960)
|
|
|
—
|
|
Net cash used in
financing activities
|
|
|
(836,984)
|
|
|
(17,056)
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes
|
|
|
4,791
|
|
|
1,850
|
|
Net increase (decrease)
in cash and cash equivalents
|
|
|
(9,323,909)
|
|
|
1,529,724
|
|
Cash and cash
equivalents, beginning of period
|
|
|
13,545,333
|
|
|
10,603,175
|
|
Cash and cash
equivalents, end of period
|
|
$
|
4,221,424
|
|
$
|
12,132,899
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
|
Cash paid for income
taxes
|
|
$
|
82,049
|
|
$
|
5,543
|
|
|
|
|
|
|
|
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
|
|
|
Contingent
consideration accrual on asset acquisition
|
|
$
|
36,130
|
|
$
|
144,384
|
|
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SOURCE Research Solutions, Inc.