UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-38371 One Stop Systems, Inc. For the quarterly period ended September 30, 2023 (Exact Name of Registrant as Specified in its Charter) OR (State or other jurisdiction of incorporation or organization) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Delaware 33- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ________________ Commission File Number: 001-38371 One Stop Systems, Inc. ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact Name of Registrant as Specified in its Charter) For the quarterly period ended June 30, 2023 (State or other juris ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ________________ Commission File Number: 001-38371 One Stop Systems, Inc. (Exact Name of Registrant as Specified in its Charter) (State or other j ...

One Stop Systems, Inc. (NASDAQ:OSS) Q4 2022 Results Conference Call March 23, 2023 5:00 PM ET Company Participants David Raun - President and CEO John Morrison - CFO Jim Ison - Chief Product Officer Conference Call Participants Scott Searle - Roth Capital Eric Martinuzzi - Lake Street Joe Gomes - Noble Capital Operator Good afternoon, and thank you for joining us today to discuss One Stop Systems Financial Results for the Fourth Quarter and Year Ended December 31, 2022. With us today are the Company’s Presi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _______ (Address of principal executive offices, including Zip Code) (760) 745-9883 (Registrant's telephone number, including area code) Securities re ...

Financial Data and Key Metrics - Q3 revenue reached a record $18.8 million, up 18% YoY, with year-to-date revenue at $54.2 million, also a record, up 23% YoY [4] - Gross profit decreased by $439,000 to $5.1 million, with gross margin at 27%, down 7.5 percentage points due to lower margin revenue from Bressner and media/entertainment business, and delayed military shipments [13] - Core OSS revenue increased 15% to $10.7 million, driven by AI Transportable and media/entertainment businesses [11] - Bressner revenue increased 21% to a record $8.1 million, despite a 14% YoY euro devaluation [12] - Operating expenses increased by $424,000 to $4.9 million, but as a percentage of revenue, decreased to 26.1% from 28.1% YoY [16] - Net income on a GAAP basis was $133,000 or $0.01 per diluted share, down from $981,000 or $0.05 per diluted share YoY [17] - Non-GAAP net income was $691,000 or $0.03 per diluted share, down from $1.5 million or $0.08 per diluted share YoY [18] - Adjusted EBITDA was $955,000 or 5.1% of revenue, compared to $1.8 million or 11.3% of revenue YoY [18] Business Line Performance - AI Transportable business saw solid growth, particularly in autonomous trucking, with two autonomous trucking customers now in the top 10 customer list [5] - Media and entertainment business contributed to revenue growth but faced margin pressure, with margins under 20% [28] - Military business experienced deferred shipments due to a transition to a new storage product version, but shipments have resumed [13] - Bressner's gross margin decreased by 3.4 percentage points to 22.2% due to increased material and transportation costs, as well as higher sales of lower margin products [15] Market Performance - European market saw strong performance through Bressner, with increased market share and strategic inventory buys driving growth [12] - Autonomous trucking market continues to progress, with hundreds of thousands of miles driven using the company's products, but a driverless solution is still needed to realize full economic potential [6] - Military market is expected to rebound, with new relationships being built with prime contractors and the Department of Defense, aiming for higher margins and less seasonality [38] Strategic Direction and Industry Competition - The company is focusing on higher margin products, particularly in the AI Transportable and military markets, to offset potential declines in media and entertainment revenue [31] - Six new program wins were added in Q3, including two in autonomous trucks, two in medical designs, and two in mobile 5G AI applications [32] - The company is developing a superior roadmap for autonomous trucking compute storage needs, leveraging PCIe, NVLink, ruggedization, and cooling technologies [8] - Military engagements have progressed, with the introduction of the Rigel platform, which is recognized as the fastest, most compact supercomputer available for military applications [40] Management Commentary on Operating Environment and Future Outlook - Management expects Q4 revenue to be approximately $19.2 million, which would result in a record annual revenue of $73.4 million, up more than 18% YoY [48] - Gross margins are expected to improve in Q4 with the resumption of military product shipments [14] - The company anticipates a technology transition in the media and entertainment market, potentially impacting revenues by the second half of 2023 as customers move to lower-cost, cloud-based solutions [30] - The company is confident in its ability to backfill potential revenue declines in media and entertainment with higher margin business from AI Transportable and military markets [37] Other Important Information - Cash and cash equivalents totaled $3.2 million, with short-term investments at $9.5 million, totaling $12.7 million in capital resources, a decrease of $1.7 million from the previous quarter due to increased working capital requirements [25] - The company showcased its latest products at the AUSA military trade show and will be attending the Supercomputer 22 Conference, expecting to announce more information in a press release [47] Q&A Session Summary Question: Autonomous Trucking Testing Progress - Testing with autonomous trucking companies is progressing well, with trucks driving hundreds of thousands of miles with minimal human intervention, but full driverless operation is still a year or two away [51][52] Question: Military Revenue Timeline - Military revenue is expected to start impacting significantly in late 2023 and beyond, with initial funding for projects potentially ranging from $0.5 million to $1.5 million [53] Question: Bridging Revenue Gaps - The company plans to bridge potential revenue gaps through AI Transportable wins, a rebound in military business, and aggressive pursuit of other deals [63][64] Question: Gross Margin Trends - Gross margins are expected to improve starting in Q4, driven by the resumption of military shipments and a shift towards higher margin products [66][67] Question: Supply Chain and Inflation - Supply chain issues are improving slightly, but the company continues to secure necessary inventory, with plans to reduce inventory levels over time [70] Question: Mobile 5G AI Opportunity - The mobile 5G AI opportunity is expected to yield over $10 million in revenue over several years, with deployments planned in over 100 cities [75] Question: Gross Margin Outlook for Next Year - Gross margins are expected to snap back to previous levels and improve further, with a steady cadence of improvement anticipated [78][80] Question: Impact of China Restrictions - The company does not expect China restrictions to impact its business, as current autonomous trucking customers are U.S.-based [82] Question: Military Advisory Board Impact - The military advisory board has been instrumental in opening doors to new opportunities, particularly with the Department of Defense [87] Question: Quantifying Deferred Military Shipments - Military shipments deferred to Q4 are expected to double or triple compared to Q3, with a strong recovery anticipated in 2023 [89][90]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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 September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ________________ Commission File Number: 001-38371 One Stop Systems, Inc. (Exact Name of Registrant as Specified in its Charter) (State or oth ...

One Stop Systems, Inc. (NASDAQ:OSS) Q2 2022 Earnings Conference Call August 11, 2022 5:00 PM ET Company Participants David Raun - President, CEO & Director John Morrison - CFO, Treasurer & Secretary Jim Ison - Chief Sales & Marketing Officer Conference Call Participants Joseph Gomes - NOBLE Capital Markets Brian Kinstlinger - Alliance Global Partners David Williams - The Benchmark Company Maxwell Michaelis - Lake Street Capital Markets Operator Good afternoon, and thank you for joining us today to discuss O ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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 June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ________________ Commission File Number: 001-38371 One Stop Systems, Inc. (Exact Name of Registrant as Specified in its Charter) (State or other ju ...

Financial Data and Key Metrics - Revenue grew 28% YoY to a record $17.1 million in Q1 2022, with minimal seasonality impact (4% drop from Q4 to Q1 compared to 30%+ in prior years) [5] - Gross profit increased to $5.1 million from $4.4 million, with gross margins exceeding 30% [6] - Operating expenses increased by only 8% despite a 28% revenue growth, leading to improved operating leverage [6] - GAAP net income rose to $579,000, non-GAAP net income to nearly $1 million, and adjusted EBITDA to $1.4 million, all significant improvements over the previous year [6] - Cash and cash equivalents totaled $2.2 million, with short-term investments of $13.6 million, combining for $15.8 million as of March 31, 2022 [18] Business Line Performance - Core OSS revenue increased 23% YoY to $10.6 million, representing 62% of total revenue [12] - Bressner, the European subsidiary, saw a 37% revenue increase to $6.5 million, contributing 38% of total revenue [12] - Media and entertainment customer revenue exceeded pre-COVID levels, with expectations for continued growth throughout the year [5] - Autonomous trucking market saw four confirmed program wins in Q1, bringing the total to five, with products being shipped to three market leaders [10] Market Performance - The media and entertainment sector showed strong recovery, with revenues now greater than pre-COVID levels [5] - Bressner's performance in Europe was exceptional, with 37% revenue growth [6] - The AI transportable market, particularly in autonomous trucking, is accelerating, with significant interest in products like Rigel and Centauri [8][9] Strategic Direction and Industry Competition - The company is focusing on the AI transportable market, leveraging its technology to address high-growth verticals like autonomous trucks, military, and maritime applications [8][9] - Introduction of scalable standard products like Rigel and Centauri has been well-received, with Centauri specifically designed for autonomous trucking needs [9][10] - The company is investing in next-generation PCI Express Gen 5 technology, which will double the bandwidth of current Gen 4 products [23][24] Management Commentary on Operating Environment and Future Outlook - Supply chain disruptions, including long lead times, price increases, and higher shipping costs, continue to pose challenges, but the company is leveraging its strong cash position to mitigate these issues [7] - Management is optimistic about the growth potential in the AI transportable market, particularly in autonomous trucking, where the company has secured multiple program wins [10][29] - The company expects Q2 2022 revenue to be $17.3 million, representing 15% growth over Q2 2021 [38] Other Important Information - The company has a strong pipeline of pending major programs, with 34 opportunities, 20 of which involve AI transportable applications [19] - The company is actively participating in industry events and panels to position itself as a thought leader in the AI transportable market [26] - Management is focused on improving margins through price increases, manufacturing efficiencies, and the introduction of higher-value standard products [15] Q&A Session Summary Question: Performance of business segments outside media and entertainment and Bressner - All business segments are strong, with no decreases, but military shipments are expected to pick up in Q3 and Q4 [42] Question: Updates on military contracts - The company is working on several military projects, with additional shipments to Raytheon programs [44] Question: Pricing and differences in systems for autonomous trucks - The company is shipping to three customers with multiple products, and expects revenue from additional customers later this year [47] Question: Growth outlook for the media and entertainment customer - Steady growth is expected, driven by both virtual product lines and the return of large gatherings [49] Question: Margin improvement opportunities in media and entertainment - Margins in this segment are not expected to improve significantly, but the business remains profitable [53][56] Question: Integration opportunities with sensor platforms in autonomous vehicles - The company is already exploring deeper integration and potential partnerships in this area [58] Question: Replacement cycle for autonomous truck systems - Replacement cycles could be around three years, depending on technological advancements and application needs [59] Question: Development cycle for autonomous truck customers - The company is already shipping to three customers and expects to see revenue from additional customers later this year [63] Question: Contribution from autonomous trucking wins - Some autonomous trucking customers are expected to be in the top 10 by the end of 2022, with significant growth potential in 2023 and beyond [88] Question: Headcount growth plans - The company plans to add 2-3 employees per quarter, with flexibility to accelerate hiring if needed [92]