Strength in both segments contributed to consolidated year-over-year revenue growth for Q4 2024
Consolidated revenue increased sequentially every quarter throughout 2024, reflecting the success of the Company's transformation strategy to higher-growth markets
Management expects double-digit consolidated revenue growth in 2025, driven by anticipated OSS segment revenue of over 20% and consolidated EBITDA break even for the year
ESCONDIDO, Calif., March 19, 2025 (GLOBE NEWSWIRE) -- One Stop Systems, Inc. ("OSS" or the "Company") (Nasdaq: OSS), a leader in rugged Enterprise Class compute for artificial intelligence (AI), machine learning (ML) autonomy and sensor processing at the edge, reported results for the three- and twelve-month periods ended December 31, 2024. Comparisons for the three- and twelve-month periods are to the same year-ago periods unless otherwise noted.
"I am pleased to report a return to consolidated year-over-year revenue growth for the fourth quarter, as sales from both our OSS and Bressner segments grew at double digit rates. Throughout 2024 we executed on our multi-year transformation, making significant progress in shifting our business toward higher-margin, higher-growth markets. We invested in our platform, strengthened our pipeline, and deepened collaboration with customers developing high-performance, Enterprise Class, edge computing solutions for both commercial and defense applications," stated OSS President and CEO, Mike Knowles.
"As efforts to reposition the Company for revenue growth gained momentum during 2024 and our business model evolved, we adjusted our legacy inventory and program costs to better align with our focus on improving efficiencies and increasing profitability. We believe the progress we made in 2024 strengthened our business, positioning the Company for higher sales and profitability in 2025 and beyond," concluded Mr. Knowles.
2024 Fourth-Quarter Financial Summary
Consolidated revenue was $15.1 million, compared to $13.2 million in the fourth quarter of 2023. The 15.1% year-over-year increase was a result of a $1.3 million increase in Bressner segment revenue and a $642,000 year-over-year increase in OSS segment revenue. The 10% year-over-year increase in OSS segment revenue was primarily due to higher revenue from defense and commercial customers, as well as new customer-funded development orders, aligned directly with the Company's strategic focus and plan.
The following table sets forth net revenue by segment for the three months ended December 31, 2024, and December 31, 2023 (Dollars may not calculate due to rounding):
| Three Months Ended | ||||||||||||||
| Entity: | December 31, 2024 | % of Net Revenue | December 31, 2023 | % of Net Revenue | % Change | |||||||||
| OSS | $ | 7,042,613 | 46.5 | % | $ | 6,401,047 | 48.7 | % | 10.0 | % | ||||
| Bressner | 8,097,533 | 53.5 | % | 6,754,161 | 51.3 | % | 19.9 | % | ||||||
| Total net revenue | $ | 15,140,146 | 100.0 | % | $ | 13,155,209 | 100.0 | % | 15.1 | % | ||||
During the fourth quarter ended December 31, 2024, the Company took a charge related to contract losses of $1.2 million for incurred and anticipated costs to satisfy performance obligations on a customer-funded development contract that was entered into in 2022. This charge reduced reported gross margin, net income, and adjusted EBITDA for the three- and twelve-month periods ended December 31, 2024. Management does not currently foresee any further charges related to this customer-funded development contract.
Consolidated gross margin percentage was 15.7%, compared to 33.7% in the prior year quarter. Gross margin, excluding the one-time charges, was 23.8%, compared to 33.7% in the same period last year. The decrease in gross margin was primarily due to product mix.
On a segment basis, the OSS segment had a gross margin of 9.4%, compared to 45.9% for the same period a year ago. OSS segment gross margin, excluding the one-time charges, was 26.8%, compared to 45.9%. The decrease from the same period last year was primarily driven by product mix. The Company's Bressner segment had a gross margin percentage of 21.2%, compared to 22.2% in the same period last year.
Total operating expenses increased 15.1% to $5.5 million. This increase was predominantly attributable to higher general and administrative costs related to planned sales and program management investments made during the quarter.
The Company reported a net loss of $3.1 million, or $(0.15) per share, as compared to a net loss of $278,000, or $(0.01) per share, in the prior year period.
Adjusted EBITDA, a non-GAAP metric, was a loss of $2.3 million, inclusive of $1.2 million in one-time charges, compared to adjusted EBITDA of $322,000 in the prior year period.
As of December 31, 2024, the Company reported cash and short-term investments of $10.0 million and total working capital of $24.0 million, compared to cash and short-term investments of $11.8 million and total working capital of $35.6 million at December 31, 2023. The reduction in cash and short-term investments was primarily driven by the paydown of $1 million of notes payable.
2024 Twelve Months Financial Summary
Consolidated revenue was $54.7 million, compared to $60.9 million for the same period last year. The 10.2% year-over-year reduction in consolidated revenue was primarily a result of approximately $4.8 million related to a former media customer, for whom shipments ceased in the second quarter of 2023. This decrease was partially offset by higher sales to customers in the military and defense end markets. In addition, Bressner segment revenue declined by $2.0 million on a year-over-year basis, associated with slower economic activity in the German economy.
The following table sets forth net revenue by segment for the twelve months ended December 31, 2024, and December 31, 2023 (Dollars may not calculate due to rounding):
| Twelve Months Ended | ||||||||||||||
Entity: | December 31, 2024 | % of Net Revenue | December 31, 2023 | % of Net Revenue | % Change | |||||||||
| OSS | $ | 24,558,809 | 44.9 | % | $ | 28,809,888 | 47.3 | % | (14.8 | )% | ||||
| Bressner | 30,135,550 | 55.1 | % | 32,086,910 | 52.7 | % | (6.1 | )% | ||||||
| Total net revenue | $ | 54,694,358 | 100.0 | % | $ | 60,896,798 | 100.0 | % | (10.2 | )% | ||||
For the year ended December 31, 2024, the Company incurred a total of $8.3 million of one-time charges that reduced reported gross margin, net income, and adjusted EBITDA. During the fourth quarter of 2024, the Company took a charge related to contract losses of $1.2 million for incurred and anticipated costs to satisfy performance obligations on a customer-funded development contract that was entered into in 2022. Additionally, during the year, OSS incurred $7.1 million of inventory charges related to obsolete and slow-moving inventory associated with the transition of the Company's business model and operating strategies, as well as slower adoption and movement in certain commercial and defense edge compute markets. Management does not currently foresee any further significant adjustments to costs related to this customer-funded development contract or inventory charges, outside of historical trends.
Consolidated gross margin percentage was 14.1%, compared to 29.5% in the prior year. On a full year basis, consolidated gross margin, excluding one-time charges, was 29.3%, compared to 29.5% in 2023.
On a segment basis, the Company's OSS segment had a gross margin of 2.5%, compared to 35.6% for the same period a year ago. OSS segment gross margin, excluding one-time charges, was 36.4%, up from 35.6% for 2023. The Company's Bressner segment had a gross margin of 23.5%, compared to 24.0% in the same period last year.
Total operating expenses decreased 18.6% to $21.1 million. This decrease was predominantly attributable to a charge of $5.6 million for an impairment of goodwill that occurred during the 2023 twelve-month period, the elimination of costs associated with organizational restructuring, timing of certain new product introduction activities and the deployment of engineering resources onto customer funded development efforts, partially offset by increased costs for personnel and for tradeshow participation.
The Company reported a net loss of $13.6 million, or $(0.65) per share, as compared to a net loss of $6.7 million, or $(0.32) per share, in the prior year. Non-GAAP net loss and loss per share was $11.6 million, or $(0.56) per share, as compared to non-GAAP net loss and loss per share of $415,000, or $(0.02) per share, in the prior year period. Net loss and non-GAAP net loss for the period ended December 31, 2024, are inclusive of $8.3 million of one-time charges.
Adjusted EBITDA, a non-GAAP metric, was a loss of $10.3 million, inclusive of $7.1 million of inventory-related charges and a $1.2 million contract loss related to a customer-funded development contract that was entered into in 2022, compared to adjusted EBITDA of $1.1 million in the prior year.
2025 Full Year Outlook
The Company anticipates consolidated revenue of $59 to $61 million for the full year of 2025. This includes expected OSS segment revenue of approximately $30 million, representing over 20% year-over-year growth in the OSS segment. In addition, the Company expects to be EBITDA break-even for the full year of 2025. Management expects revenue and profitability to improve at a higher rate in the second half of 2025 based on current trends and the Company's expanding sales pipeline.
Conference Call
OSS will hold a conference call to discuss its results for the fourth quarter of 2024, followed by a question-and-answer period.
Date: Wednesday, March 19, 2025
Time: 10:00 a.m. ET (7:00 a.m. PT)
Toll-free dial-in: 1-800-717-1738
International dial-in: 1-646-307-1865
Conference ID: 35863 (required for entry)
Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1706031&tp_key=7e52a82afd
A replay of the call will be available after 1:00 p.m. ET on March 19, 2025, through April 2, 2025.
Toll-free replay: 1-844-512-2921
International replay: 1-412-317-6671
Passcode: 1135863
About One Stop Systems
One Stop Systems, Inc. (Nasdaq: OSS) is a leader in AI enabled solutions for the demanding 'edge'. OSS designs and manufactures Enterprise Class compute and storage products that enable rugged AI, sensor fusion and autonomous capabilities without compromise. These hardware and software platforms bring the latest data center performance to harsh and challenging applications, whether they are on land, sea or in the air.
OSS products include ruggedized servers, compute accelerators, flash storage arrays, and storage acceleration software. These specialized compact products are used across multiple industries and applications, including autonomous trucking and farming, as well as aircraft, drones, ships and vehicles within the defense industry.
OSS solutions address the entire AI workflow, from high-speed data acquisition to deep learning, training and large-scale inference, and have delivered many industry firsts for industrial OEM and government customers.
As the fastest growing segment of the multi-billion-dollar edge computing market, AI enabled solutions require-and OSS delivers-the highest level of performance in the most challenging environments without compromise.
OSS products are available directly or through global distributors. For more information, go to www.onestopsystems.com. You can also follow OSS on X, YouTube, and LinkedIn.
Non-GAAP Financial Measures
We believe that the use of adjusted earnings before interest, taxes, depreciation and amortization, or adjusted EBITDA, is helpful for an investor to assess the performance of the Company. The Company defines adjusted EBITDA as income (loss) before interest, taxes, depreciation, amortization, acquisition expense, impairment of long-lived assets, financing costs, government funded programs, fair value adjustments from purchase accounting, stock-based compensation expense, and expenses related to discontinued operations.
Adjusted EBITDA is not a measurement of financial performance under generally accepted accounting principles in the United States, or GAAP. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company's non-cash operating expenses, we believe that providing a non-GAAP financial measure that excludes non-cash and non-recurring expenses allows for meaningful comparisons between our core business operating results and those of other companies, as well as providing us with an important tool for financial and operational decision making and for evaluating our own core business operating results over different periods of time.
Our adjusted EBITDA measure may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently, particularly related to non-recurring and unusual items. Our adjusted EBITDA is not a measurement of financial performance under GAAP, and should not be considered as an alternative to operating income or as an indication of operating performance or any other measure of performance derived in accordance with GAAP. We do not consider adjusted EBITDA to be a substitute for, or superior to, the information provided by GAAP financial results.
| For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net loss | $ | (3,134,782 | ) | $ | (277,560 | ) | $ | (13,634,333 | ) | $ | (6,716,176 | ) | |||
| Depreciation and amortization of intangibles | 226,417 | 263,743 | 1,041,837 | 1,077,516 | |||||||||||
| Amortization of right-of-use assets, net of changes in lease liability | (2,488 | ) | (30,208 | ) | 29,885 | 22,592 | |||||||||
| Stock-based compensation expense | 564,176 | 454,461 | 1,988,125 | 2,345,358 | |||||||||||
| Interest expense | 3,206 | 29,662 | 74,116 | 117,774 | |||||||||||
| Interest income | (100,805 | ) | (159,487 | ) | (477,745 | ) | (544,958 | ) | |||||||
| Impairment of goodwill | - | - | - | 5,630,788 | |||||||||||
| Employee retention credit (ERC) | - | - | - | (1,716,727 | ) | ||||||||||
| Provision for income taxes | 157,120 | 41,796 | 726,502 | 927,128 | |||||||||||
| Adjusted EBITDA | $ | (2,287,156 | ) | $ | 322,407 | $ | (10,251,613 | ) | $ | 1,143,296 | |||||
FOOTNOTE: Adjusted EBITDA for the fourth quarter and full year ended December 31, 2024, included a charge related to contract losses of $1.2 million for incurred and anticipated costs to satisfy performance obligations on a customer-funded development contract that was entered into in 2023. Adjusted EBITDA for the full year ended December 31, 2024, also included inventory-related charges of $7.1 million.
(Dollars may not calculate due to rounding)
Adjusted EPS excludes the impact of certain items and, therefore, has not been calculated in accordance with GAAP. We believe that exclusion of certain selected items assists in providing a more complete understanding of our underlying results and trends and allows for comparability with our peer company index and industry. We use this measure along with the corresponding GAAP financial measures to manage our business and to evaluate our performance compared to prior periods and the marketplace. The Company defines non-GAAP income (loss) as income or (loss) before amortization, government funded programs, impairment of long lived assets, stock-based compensation, expenses related to discontinued operations, and acquisition costs. Adjusted EPS expresses adjusted income (loss) on a per share basis using weighted average diluted shares outstanding.
Adjusted EPS is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. These non-GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies. We expect to continue to incur expenses similar to the adjusted income from continuing operations and adjusted EPS financial adjustments described above, and investors should not infer from our presentation of these non-GAAP financial measures that these costs are unusual, infrequent or non-recurring.
The following table reconciles non-GAAP net income and basic and diluted earnings per share:
| For the Three Months Ended December 31, | For the Full Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net loss | $ | (3,134,782 | ) | $ | (277,560 | ) | $ | (13,634,333 | ) | $ | (6,716,176 | ) | |||
| Amortization of intangibles | - | - | - | 42,154 | |||||||||||
| Impairment of goodwill | - | - | - | 5,630,788 | |||||||||||
| Employee retention credit (ERC) | - | - | - | (1,716,727 | ) | ||||||||||
| Stock-based compensation expense | 564,176 | 454,461 | 1,988,125 | 2,345,358 | |||||||||||
| Non-GAAP net loss | $ | (2,570,606 | ) | $ | 176,901 | $ | (11,646,208 | ) | $ | (414,603 | ) | ||||
| Non-GAAP net loss per share: | |||||||||||||||
| Basic | $ | (0.12 | ) | $ | 0.01 | $ | (0.56 | ) | $ | (0.02 | ) | ||||
| Diluted | $ | (0.12 | ) | $ | 0.01 | $ | (0.56 | ) | $ | (0.02 | ) | ||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 21,120,396 | 20,632,300 | 20,953,397 | 20,854,777 | |||||||||||
| Diluted | 21,120,396 | 20,632,300 | 20,953,397 | 20,854,777 | |||||||||||
FOOTNOTE: Non-GAAP net loss for the fourth quarter and full year ended December 31, 2024, included a charge related to contract losses of $1.2 million for incurred and anticipated costs to satisfy performance obligations on a customer-funded development contract that was entered into in 2023. Non-GAAP net loss for the full year ended December 31, 2024, also included an inventory charge of $6.1 million.
(Dollars may not calculate due to rounding)
Forward-Looking Statements
One Stop Systems cautions you that statements in this press release that are not a description of historical facts are forward-looking statements. These statements are based on the company's current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by One Stop Systems or its partners that any of our plans or expectations will be achieved, including but not limited to, our ability to expand our product offerings and further penetrate our target markets, future demand for AI/ML integrations, expected or anticipated increase in revenues, and our business strategies. Actual results may differ from those set forth in this press release due to the risk and uncertainties inherent in our business, including risks described in our prior press releases and in our filings with the Securities and Exchange Commission (SEC), including under the heading "Risk Factors" in our latest Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Media Contacts:
Robert Kalebaugh
One Stop Systems, Inc.
Tel (858) 518-6154
Email contact
Investor Relations:
Andrew Berger
Managing Director
SM Berger & Company, Inc.
Tel (216) 464-6400
Email contact
| ONE STOP SYSTEMS, INC. (OSS) | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| Audited | Audited | ||||||
| December 31, | December 31, | ||||||
| 2024 | 2023 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 6,794,093 | $ | 4,048,948 | |||
| Short-term investments | 3,217,065 | 7,771,820 | |||||
| Accounts receivable, net | 8,177,371 | 8,318,247 | |||||
| Inventories, net | 13,176,156 | 21,694,748 | |||||
| Prepaid expenses and other current assets | 836,364 | 611,066 | |||||
| Total current assets | 32,201,048 | 42,444,829 | |||||
| Property and equipment, net | 1,669,026 | 2,370,224 | |||||
| Operating lease right-of use assets | 1,536,094 | 1,922,784 | |||||
| Deposits and other | 38,093 | 38,093 | |||||
| Goodwill | 1,489,722 | 1,489,722 | |||||
| Total Assets | $ | 36,933,982 | $ | 48,265,652 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 2,068,017 | $ | 1,201,781 | |||
| Accrued expenses and other liabilities | 4,806,675 | 3,202,519 | |||||
| Current portion of operating lease obligation | 285,937 | 390,926 | |||||
| Current portion of notes payable | 1,035,050 | 2,077,895 | |||||
| Total current liabilities | 8,195,679 | 6,873,121 | |||||
| Deferred tax liability, net | 52,574 | 44,673 | |||||
| Operating lease obligation, net of current portion | 1,513,684 | 1,765,536 | |||||
| Total liabilities | 9,761,937 | 8,683,330 | |||||
| Commitments and contingencies | |||||||
| Stockholders' equity | |||||||
| Common stock, $0.0001 par value; 50,000,000 shares authorized; 21,148,810 and 20,661,341 shares issued and outstanding at December 31, 2024 and 2023, respectively | 2,115 | 2,066 | |||||
| Additional paid-in capital | 49,082,737 | 47,323,673 | |||||
| Accumulated other comprehensive income | 140,254 | 675,310 | |||||
| Accumulated deficit | (22,053,061 | ) | (8,418,727 | ) | |||
| Total stockholders' equity | 27,172,045 | 39,582,322 | |||||
| Total Liabilities and Stockholders' Equity | $ | 36,933,982 | $ | 48,265,652 | |||
| ONE STOP SYSTEMS, INC. (OSS) | |||||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (Dollars may not calculate due to rounding) | |||||||||||||||
| For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue: | |||||||||||||||
| Product | $ | 14,280,939 | $ | 12,335,554 | $ | 51,003,350 | $ | 59,200,580 | |||||||
| Customer funded development | 859,207 | 819,655 | 3,691,009 | 1,696,217 | |||||||||||
| 15,140,146 | 13,155,209 | 54,694,358 | 60,896,797 | ||||||||||||
| Cost of revenue: | |||||||||||||||
| Product | 10,829,859 | 8,229,397 | 42,953,344 | 41,907,604 | |||||||||||
| Customer funded development | 1,930,800 | 491,242 | 4,022,707 | 1,034,571 | |||||||||||
| 12,760,659 | 8,720,639 | 46,976,051 | 42,942,175 | ||||||||||||
| Gross (loss) profit | 2,379,487 | 4,434,570 | 7,718,307 | 17,954,622 | |||||||||||
| Operating expenses: | |||||||||||||||
| General and administrative | 2,413,102 | 1,970,746 | 8,971,909 | 9,264,447 | |||||||||||
| Impairment of goodwill | - | - | - | 5,630,788 | |||||||||||
| Marketing and selling | 1,821,918 | 1,667,765 | 8,005,982 | 6,651,516 | |||||||||||
| Research and development | 1,250,377 | 1,127,194 | 4,097,229 | 4,331,024 | |||||||||||
| Total operating expenses | 5,485,397 | 4,765,704 | 21,075,120 | 25,877,775 | |||||||||||
| Loss from operations | (3,105,910 | ) | (331,134 | ) | (13,356,813 | ) | (7,923,153 | ) | |||||||
| Other income (expense), net: | |||||||||||||||
| Interest income | 100,805 | 159,487 | 477,745 | 544,958 | |||||||||||
| Interest expense | (3,206 | ) | (29,662 | ) | (74,116 | ) | (117,774 | ) | |||||||
| Employee retention credit (ERC) | - | 418,431 | - | 1,716,727 | |||||||||||
| Other income (expense), net | 30,647 | (452,886 | ) | 45,353 | (9,806 | ) | |||||||||
| Total other income, net | 128,246 | 95,370 | 448,982 | 2,134,105 | |||||||||||
| Loss before income taxes | (2,977,664 | ) | (235,764 | ) | (12,907,831 | ) | (5,789,048 | ) | |||||||
| Provision for income taxes | 157,119 | 41,796 | 726,502 | 927,128 | |||||||||||
| Net loss | $ | (3,134,783 | ) | $ | (277,560 | ) | $ | (13,634,333 | ) | $ | (6,716,176 | ) | |||
| Net loss per share: | |||||||||||||||
| Basic | $ | (0.15 | ) | $ | (0.01 | ) | $ | (0.65 | ) | $ | (0.32 | ) | |||
| Diluted | $ | (0.15 | ) | $ | (0.01 | ) | $ | (0.65 | ) | $ | (0.32 | ) | |||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 21,120,396 | 20,632,300 | 20,953,397 | 20,854,777 | |||||||||||
| Diluted | 21,120,396 | 20,632,300 | 20,953,397 | 20,854,777 | |||||||||||
| ONE STOP SYSTEMS, INC. (OSS) | |||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| For the Twelve Months Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (13,634,333 | ) | $ | (6,716,176 | ) | |
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
| Deferred income taxes | 28,082 | (95,496 | ) | ||||
| Loss (gain) on disposal of property and equipment | 354 | - | |||||
| Provision for bad debt | 85,447 | 4,160 | |||||
| Impairment of goodwill | - | 5,630,788 | |||||
| Warranty reserves | (79,962 | ) | 11,846 | ||||
| Amortization of intangibles | - | 42,154 | |||||
| Depreciation | 1,041,837 | 1,035,362 | |||||
| Amortization of right-of-use assets | 377,206 | 1,241,445 | |||||
| Inventory reserves | 7,348,390 | 962,458 | |||||
| Stock-based compensation expense | 1,988,125 | 2,345,358 | |||||
| Employee retention credit | - | (1,716,727 | ) | ||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (190,339 | ) | 3,095,701 | ||||
| Inventories | 658,303 | (1,636,153 | ) | ||||
| Prepaid expenses and other current assets | (238,554 | ) | (100,848 | ) | |||
| Accounts payable | 926,231 | (3,408,487 | ) | ||||
| Accrued expenses and other liabilities | 1,928,436 | 83,789 | |||||
| Operating lease liabilities | (347,321 | ) | (1,218,853 | ) | |||
| Net cash provided by operating activities | (108,098 | ) | (439,679 | ) | |||
| Cash flows from investing activities: | |||||||
| Redemption of short-term investment grade securities | 4,553,535 | 2,342,552 | |||||
| Purchases of property and equipment, including capitalization of labor | (362,748 | ) | (821,753 | ) | |||
| Net cash provided by investing activities | 4,190,787 | 1,520,799 | |||||
| Cash flows from financing activities: | |||||||
| Proceeds from exercise of stock options and warrants | 237,749 | 62,422 | |||||
| Payment of payroll taxes on net issuance of employee stock options | (466,762 | ) | (597,856 | ) | |||
| Repayments on notes payable | (954,939 | ) | (1,352,637 | ) | |||
| Employee retention credit benefit | - | 1,716,727 | |||||
| Net cash (used in) provided by financing activities | (1,183,952 | ) | (171,344 | ) | |||
| Net change in cash and cash equivalents | 2,898,737 | 909,776 | |||||
| Effect of exchange rates on cash | (153,592 | ) | 26,977 | ||||
| Cash and cash equivalents, beginning of period | 4,048,948 | 3,112,196 | |||||
| Cash and cash equivalents, end of period | $ | 6,794,093 | $ | 4,048,948 | |||
