Financial Data and Key Metrics Changes - In Q3, the company reported consolidated revenue of $13.7 million, a decrease of $5.1 million or 26.9% compared to the same period in 2022, primarily due to the loss of a former media customer and delays in defense applications [6][36] - Gross profit decreased to $3.7 million, with an overall gross margin percentage decreasing 40 basis points to 26.6% [35] - The net loss on a GAAP basis was $3.6 million or $0.18 per share, compared to net income of $133,000 or $0.01 per share in the same period in 2022 [36] Business Line Data and Key Metrics Changes - OSS contributed $5.5 million to the revenue, while Bressner contributed $8.2 million, including $377,000 from OSS products [6] - Bressner's gross margin percentage improved by 40 basis points to 22.6% due to a favorable product mix [13] - OSS's gross margin improved by 1.7 percentage points to 32.4%, attributed to the absence of lower-margin sales to the former media customer [35] Market Data and Key Metrics Changes - The company is experiencing a slowdown in commercial markets, which has led to delays in customer orders and reduced awards [6][39] - The defense market remains active, with the company engaged in multiple proposal and program pursuits, including opportunities in the commercial aerospace market [9][10] Company Strategy and Development Direction - The company is focusing on expanding its presence in rugged Edge and defense market opportunities, moving away from low-margin media customers [5][10] - There is a commitment to securing new prime contractors and multiyear contracts, both domestically and internationally, to bolster the pipeline [10][19] - The company aims to maximize gross profit contribution, even if it means accepting lower-margin business in the short term [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the rugged Edge processing market, driven by artificial intelligence and sensor fusion [8] - The company anticipates challenges due to the defense budget continuing resolution, which may delay funding and awards [39] - Management noted a general malaise in the commercial market, but there is significant interest in technology adoption from technical engineers [81] Other Important Information - The company received its site facility clearance, enabling it to pursue additional market opportunities in classified programs [19] - The company showcased its products at major industry events, enhancing its visibility and engagement with potential customers [21][42] Q&A Session Summary Question: Can you quantify the pipeline? - The pipeline structure of opportunities is around $850 million, with a 5-year unfactored pipeline in excess of $900 million [25][46] Question: What is the addressable or biddable portion of the pipeline? - The pipeline includes both commercial and defense markets, with a mix likely close to 50-50 [27] Question: What should be expected regarding core OSS gross margin? - The core OSS gross margin is expected to be in the 35% to 40% range [29] Question: What hurdles exist between now and production in the defense industry? - The continued resolution of the defense budget is causing delays, but there are opportunities for technology refresh cycles that could expedite contracts [55] Question: How is the company addressing hiring challenges for security clearances? - The company can utilize its own personnel for current projects, and there is a plan to build out the team as needed [84] Question: What is the status of the defense work pushed out into 2024? - The estimate remains around $5 million to $6 million of defense work pushed out into 2024 [82]

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 ...

Financial Data and Key Metrics Changes - Consolidated revenue in Q4 increased by 2.7% to $18.2 million, with annual revenue reaching a record $72.4 million, up 16.8% year-over-year [3][89] - Adjusted EBITDA for the year was a record $5.2 million, driven by increased sales and continued spending controls [89] - Operating expenses decreased by 9.4% to $4.6 million, with operating expenses as a percentage of revenue decreasing to 25.3% from 28.7% [4] - Overall gross margin for the year was 28.2%, down from 31.7% in the previous year, primarily due to a higher proportion of low-margin sales [6][106] Business Line Data and Key Metrics Changes - Core OSS revenue decreased by 1.8% to $11.3 million, representing 62% of total quarterly revenue, while OSS Europe revenue increased by 10.8% to $6.9 million, accounting for 38% of total revenue [100] - The military AI Transportable segment is projected to grow by 40% in 2023, driven by the return of the largest military customer and new business layering in [14][70] - The company added three new major program wins in Q4 across military, commercial aerospace, and autonomous vehicles [116] Market Data and Key Metrics Changes - The media and entertainment customer is projected to contribute less than 10% of consolidated revenue in 2023, having fallen off faster than anticipated [3][70] - The military portion of the business is expected to grow from approximately 20% to 30% year-over-year, with OSS classic business increasing from the mid-30s to about 55% [70][70] Company Strategy and Development Direction - The company is focusing on transitioning from low-margin media business to higher-margin military AI Transportable business, with a strategic reorganization to support this shift [108][145] - The Rigel Edge Supercomputer has received NVIDIA certification, enhancing its market position and sales process [10] - The company is engaged with eight of the top ten largest military prime contractors in the U.S., indicating a strong foothold in the defense sector [96][148] Management's Comments on Operating Environment and Future Outlook - Management anticipates revenue for Q1 2023 to be approximately $16.6 million, with expectations for growth throughout the year as military business increases [150] - The company expects to see revenue growth in the 25% to 30% range starting in 2024, driven by military contracts and AI Transportable products [150][154] - Management expressed confidence in the company's strategy and future prospects, highlighting the importance of military engagements and product certifications [15][109] Other Important Information - The company is undergoing a leadership transition, with a search for a new CEO expected to be completed by mid-year [98] - The company has made significant progress in the defense market, including a $3 million defense order and contract extensions with the Navy [146] Q&A Session Summary Question: Clarification on gross margin and military product revenue - Management confirmed that the decline in gross margin was due to the absence of higher-end military product revenue during re-certification [18][70] Question: Outlook for autonomous trucks and military opportunities - Management indicated that while autonomous trucks remain a focus, the military segment is currently prioritized due to its growth potential [29][84] Question: Progress on Rigel integration with military applications - Management reported ongoing discussions with the DOD regarding Rigel's integration into various military platforms, with expectations for revenue generation in 2023 [35][49]

Business Disruptions and Economic Factors - Business disruptions could lead to a decline in revenues and increased costs due to various factors including geopolitical instability and natural disasters [147]. - Economic uncertainty and capital market disruptions have significantly impacted financial conditions and results of operations, particularly due to the ongoing military conflict between Russia and Ukraine [156]. - Supply chain disruptions from the COVID-19 pandemic and other macroeconomic factors have resulted in longer lead times and increased product costs [149]. - Inflation has increased overall cost structures, affecting liquidity and financial conditions, with potential for higher interest rates and capital costs [162]. - The ongoing military conflict in Ukraine has led to sanctions that could adversely affect the global economy and financial markets, impacting access to capital [157]. Customer and Supplier Risks - A limited number of customers represent a significant portion of sales, and the loss of key customers could lead to substantial revenue decreases [148]. - The company relies on a limited number of parts suppliers, which poses risks to manufacturing and design processes [148]. - Approximately 37.4% and 41.5% of net sales in 2022 and 2021, respectively, were attributable to three major customers, including disguise, Raytheon, and the Navy [177]. - In 2022, suppliers representing over 10% of total parts purchases accounted for approximately 25.0% of materials purchased, with a significant concentration on one supplier, Concisys Inc. [179]. - The company faces potential disruptions in operations due to reliance on a limited number of suppliers, which could adversely affect marketing and sales capabilities [179]. Market and Competitive Landscape - The market for high-performance computing products is characterized by rapid technological advances, making future demand difficult to predict [163]. - The introduction of new entrants and distribution models in the market may harm the company's competitive position [168]. - The company may face increased pricing pressure and reduced profit margins due to competition from mass-produced hardware solutions [167]. - Future success depends on the ability to develop and introduce new products that meet customer needs in the rapidly changing computer hardware and software industry [182]. - The commoditization of HPC hardware and software has led to increased pricing pressure, negatively impacting gross margins [196]. Operational Challenges - The company expects fluctuations in operating results due to variable sales timing and budgeted expense levels that depend on future sales expectations [164]. - Delays in production cycles could lead to outdated equipment, resulting in decreased sales and potential losses [183]. - Unsuccessful government programs or OEM contracts may lead to reduced revenues and potential returns of products [184]. - Inventory may become obsolete due to varying sales cycles, leading to potential write-offs and adverse financial effects [185]. - Significant defects in products could incur high remediation costs, damage reputation, and result in loss of market share [186]. Legal and Regulatory Risks - Extended product warranties expose the company to risks of future returns and repair costs [187]. - Failure to achieve design wins could harm the business, as they are crucial for growth and customer satisfaction [189]. - The company is obligated to indemnify channel partners and end-customers for certain expenses and liabilities resulting from intellectual property infringement claims, which could lead to substantial costs [204]. - Privacy concerns regarding the company's products and services may damage its reputation and result in increased security costs, regulatory proceedings, and legal claims [205]. - The European Union's General Data Protection Regulation (GDPR) could impose penalties of up to 4% of worldwide revenue for non-compliance, affecting the company's financial results [207]. Financial and Stockholder Considerations - The company has never paid, and does not expect to pay, any cash dividends to common stockholders for the foreseeable future [156]. - The company's common stock price may be volatile, influenced by various factors including market conditions and analysts' opinions, potentially leading to investment losses [215]. - Substantial future equity issuances could dilute current shareholders and cause the market price of the company's common stock to decline [224]. - The company is authorized to issue up to 10,000,000 shares of blank-check preferred stock, which may have rights that could adversely affect common stockholders [225]. - Anti-takeover provisions in the company's charter could make acquisitions more difficult and limit stockholder actions, potentially affecting the market price of common stock [227]. Growth and Capital Needs - The company qualifies as an "emerging growth company" and a "smaller reporting company," which allows it to take advantage of reduced reporting requirements [235]. - The company may remain an emerging growth company until December 31, 2023, or until it meets certain revenue or debt thresholds [236]. - The company may seek additional capital through equity offerings or debt financings, which could result in dilution for existing stockholders [231]. - The issuance of preferred stock could reduce the voting rights of common stockholders and may lead to dilution in book value per share [226]. - The company may face challenges in raising additional funding on acceptable terms, which could impact its ability to develop new technologies and expand operations [232].

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 ...

Financial Data and Key Metrics Changes - Q2 2022 revenue reached a record $18.3 million, up 7% sequentially and 23% year-over-year [4][12] - Gross profit for Q2 was $5.2 million, a 12% increase from the previous year, resulting in a gross margin of 28.4%, down from 31.2% year-over-year [5][14] - GAAP net income was $323,000 or $0.02 per diluted share, down from $1.7 million or $0.09 per diluted share in the same period last year [16] - Non-GAAP net income was $871,000 or $0.04 per diluted share, up from $812,000 or $0.04 per diluted share year-over-year [17] Business Line Data and Key Metrics Changes - Core OSS business revenue increased 18% to $10.7 million, representing 59% of total revenue [12] - Revenue from Bressner, the European subsidiary, increased 31% to $7.6 million, accounting for 41% of total revenue [13] - Gross margin for the core OSS business decreased to 33%, primarily due to lower-margin media and entertainment revenue [13][14] Market Data and Key Metrics Changes - The media and entertainment sector saw a revenue increase of 135% to a record $6.4 million [4] - Supply chain constraints continue to impact product availability, with lead times extending to 52 weeks or more for key components [8][10] Company Strategy and Development Direction - The company aims for leadership in the AI Transportable market, focusing on high-performance platforms for commercial, military, and industrial applications [39][32] - Investments in R&D and marketing for higher-margin businesses, particularly AI Transportables, are ongoing [6][15] - The formation of a Strategic Advisory Board aims to enhance navigation within military markets and improve product and market strategies [38][70] Management's Comments on Operating Environment and Future Outlook - Management expects supply chain challenges to persist through the remainder of the year and into the first half of next year [8][10] - The revenue outlook for Q3 2022 is projected at $18.5 million, representing a 16% growth year-over-year [39] - Management remains optimistic about military program engagements, anticipating stronger revenue in the second half of the year [44][54] Other Important Information - The company has approximately $20.4 million in inventory, with $11.6 million designated for the core OSS business and $8.8 million for Bressner [10] - Operating expenses as a percentage of revenue improved to 26.2% from 27.7% year-over-year, despite a 16% increase in total operating expenses [15] Q&A Session Summary Question: Inventory availability for Bressner vs. other products - Management explained that Bressner's status as a value-added reseller allows it to gain market share, which contributes to its strong inventory availability [42][43] Question: Military customer sales activity - Management noted increased military design activity but indicated that revenue from military customers is expected to be stronger in the second half of the year [44] Question: Production line efficiencies - The company is moving some manufacturing to Mexico to improve delivery amidst shipping constraints [45][46] Question: Updates on agricultural and mining verticals - Management stated that while these verticals are potential future opportunities, current focus remains on more immediate prospects in the autonomous truck space [47] Question: Revenue from autonomous vehicle customers - Management refrained from disclosing specific revenue figures but indicated that revenue from autonomous vehicle customers is expected to increase [50][51] Question: Pricing strategies with lower-margin customers - Management confirmed that pricing adjustments are possible under existing contracts, and they are focusing on strategic business opportunities [52][53] Question: Delays in government projects - Management clarified that delays are not solely due to budget issues, and they expect significant business from a key military customer in the future [54][56] Question: Strength of media and entertainment customer - Management anticipates continued strength from this customer but expects revenue to normalize after an exceptionally large quarter [58][59] Question: Growth drivers for Bressner - Management highlighted strategic investments and a talented team as key factors driving Bressner's growth [60][61]

Revenue and Income - Revenue for Q2 2022 was $18,303,343, an increase of 22.5% compared to $14,905,009 in Q2 2021[151] - Net income for Q2 2022 was $322,822, a significant decrease from $1,697,122 in Q2 2021[151] - Total revenue for the three months ended June 30, 2022, increased by $3,398,334, or 22.8%, compared to the same period in 2021, with OSS revenue up by $1,612,926 (17.7%) and Bressner revenue up by $1,785,408 (30.8%) due to improved shipments and economic conditions in Europe[154][155] - For the six months ended June 30, 2022, total revenue increased by $7,135,259, or 25.3%, with OSS revenue up by $3,592,997 (20.3%) and Bressner revenue up by $3,542,262 (33.7%) attributed to increased shipments and strategic product availability[155] - For the three months ended June 30, 2022, the net income was $322,822, compared to $1,697,122 for the same period in 2021[215] - Non-GAAP net income for the three months ended June 30, 2022, was $871,265, compared to $812,005 in 2021, indicating a growth of about 7.3%[219] Costs and Expenses - Gross profit for Q2 2022 was $5,200,318, representing a gross margin of 28.4%, down from 31.2% in Q2 2021[151] - Operating expenses for Q2 2022 totaled $4,798,395, which is 26.2% of revenue, compared to 27.7% in Q2 2021[151] - Cost of revenue for Q2 2022 was $13,103,025, which is 71.6% of revenue, up from 68.8% in Q2 2021[151] - General and administrative expenses increased by $172,660, or 10.5%, for the three months ended June 30, 2022, with OSS up by $278,357 (25.0%) and Bressner down by $105,697 (19.7%), while the expense as a percentage of revenue decreased to 10.0% from 11.1%[161] - Selling and marketing expenses increased by $245,621, or 16.6%, for the three months ended June 30, 2022, with OSS up by $187,382 (16.3%) and Bressner up by $58,239 (17.8%), while the expense as a percentage of revenue decreased to 9.4% from 9.9%[163][165] - Research and development expenses increased by $244,020, or 24.2%, for the three months ended June 30, 2022, with OSS up by $237,857 (26.2%), while the expense as a percentage of revenue remained flat at 6.8%[166] - Interest expense for the three months ended June 30, 2022, was $44,949, a decrease from $169,031 in 2021, indicating a reduction of approximately 73.5%[215] - Stock-based compensation expense for the three months ended June 30, 2022, was $532,636, compared to $465,336 in 2021, representing an increase of approximately 14.4%[219] Cash Flow and Liquidity - As of June 30, 2022, the company had total cash and cash equivalents of $2,874,831 and short-term investments of $11,514,047, resulting in total working capital of $32,914,013[176] - For the six months ended June 30, 2022, the company used $7,576,355 in cash for operating activities, a decrease of $10,364,718 compared to the cash provided by operating activities of $2,788,363 in the same period of 2021[188] - The net cash provided by investing activities during the six months ended June 30, 2022, was $2,878,600, compared to $14,723,446 used in the prior year, resulting in a net change of $17,602,046[192] - The company generated $2,614,463 in cash from financing activities for the six months ended June 30, 2022, compared to $9,628,718 in the same period of 2021[193] - The company anticipates using liquidity and cash flows from operations to fund growth and may evaluate potential acquisitions, which could require additional financing[178] - Net working capital requirements for the six months ended June 30, 2022, were $10,071,443, an increase of $10,360,900 compared to the prior year[191] - The company obtained a domestic revolving line of credit of $2 million in April 2022, which requires maintaining cash and investments balances of at least $4 million[183] - Management believes that sufficient liquidity exists to meet anticipated working capital requirements for at least the next twelve months, although there are no assurances regarding the effectiveness of cost reduction efforts[185] Economic and Market Conditions - The company is experiencing increased pricing and longer lead times, leading to higher inventory balances[136] - The geopolitical instability and inflation are contributing to economic uncertainty, impacting customer spending and operations[135] - The company experienced increased product pricing due to semiconductor shortages and rising transportation costs, which are being actively managed[198] - The company is subject to interest rate risk due to recent increases in Federal Reserve interest rates, which may impact borrowing costs[206] Tax and Other Income - The effective tax rate for the period ended June 30, 2022, is anticipated to be approximately 20.86%, with recorded provisions of $85,490 for Q2 2022 and $235,293 for Q2 2021[174] - Other income for the three months ended June 30, 2022, resulted in a net expense of ($4,169), a decrease of $1,527,167 compared to the prior year, primarily due to the prior year's gain on the forgiveness of a PPP loan[171][172] - Interest income decreased by $6,291 for the three months ended June 30, 2022, due to lower investments in marketable securities, while it increased by $39,414 for the six months ended June 30, 2022, due to interest on newly purchased securities[168] Future Outlook - Management plans to control costs and conserve cash in response to economic uncertainties[140] - Research and development expenses are expected to increase as the company invests in new and existing products[147] - The company expects to continue incurring expenses similar to the adjusted income from continuing operations and adjusted EPS financial adjustments[217] - The company employs derivatives to manage market risks, specifically using foreign exchange forward contracts as cash flow hedges[210]