ESCONDIDO, Calif., May 01, 2024 (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) and sensor processing at the edge, today announced that it will host its Annual Meeting of Shareholders, virtually on May 15, 2024, at 11:00 AM PT. Shareholders who owned the Company's stock as of the close of business on March 22, 2024, can register, vote electronically, and submit questions by u ...

Financial Data and Key Metrics - Consolidated revenue decreased by $11.5 million or 15.9% from $72.4 million to $60.9 million, primarily due to a $13.7 million decrease in media revenue [7] - OSS revenue decreased by $14.5 million or 33.4%, while Bressner revenue increased by $2.9 million or 10.1% [7] - Consolidated gross profit in Q4 decreased by $544,000 to $4.4 million, with gross margins improving to 33.7% from 27.3% [3] - OSS gross margin improved by 14.5 percentage points to 45.9%, while Bressner's gross margin improved by 1.6 percentage points to 22.2% [3] - Net loss on a GAAP basis was $278,000 or $0.01 per share, compared to a net loss of $3.3 million or $0.16 per share in the same period in 2022 [5] - Adjusted EBITDA, a non-GAAP metric, was $353,000, a decrease from $1.6 million in the prior year [6] Business Line Performance - OSS contributed $28.8 million or 47% of total revenue, while Bressner contributed $32.1 million or 53% [7] - OSS experienced a significant decrease in media revenue, offset by higher-margin rugged edge processing products [3] - Bressner improved both margins and profitability despite a challenging economy in Germany and Europe [23] Market Performance - OSS revenue was fairly evenly balanced between commercial and defense applications in 2023 [7] - The company expects revenue of approximately $12.5 million in Q1 2024, representing a 5% sequential decrease from Q4 2023 and a 25% year-over-year decrease [13] Company Strategy and Industry Competition - The company is transitioning away from lower-margin media revenue and focusing on higher-margin AI transportable products [22] - OSS is leveraging its expertise in high-performance ruggedized edge processing, compute, storage, and connectivity systems, while Bressner operates as a systems integrator in Europe [24] - The company is pursuing opportunities in both commercial and military segments, focusing on AI-centered high-performance computing at the edge [42][44] Management Commentary on Operating Environment and Future Outlook - Management highlighted the impact of U.S. Government continuing resolutions on revenue, particularly in the defense market [1] - The company expects increased spending in autonomy, artificial intelligence, and machine learning in the defense sector [48] - Management is optimistic about the growing pipeline of opportunities and the potential for long-term value creation [19][46] Other Important Information - The company has a five-year unfactored pipeline exceeding $1 billion, reflecting growth in both commercial and defense markets for AI and ML solutions [69] - Recent wins include a multi-million-dollar program with Leidos' Dynetics and a contract with the U.S. Army Ground Vehicle Systems Center [49][50] - The company has added new talent to its management team and Board of Directors to support its growth strategy [16][17] Q&A Session Summary Question: Gross margins in Q4 and outlook for 2024 - Gross margins in Q4 were heavily weighted towards AI transportable products, particularly in the defense industry, with higher-margin data storage units contributing significantly [34] - The company expects gross margins to continue growing, with a target of 30% to 40%, driven by the shift away from lower-margin media revenue [100] Question: Sales cycles and growth expectations in the defense market - The company expects growth to pick up in the second half of 2024, driven by pipeline conversion and defense market opportunities [38][76] - The defense market has long sales cycles, but the company is leveraging its high technology readiness level products to compete effectively [88] Question: Inventory levels and working capital - The company has significant inventory due to past commitments but expects to free up $2 million in working capital this year by selling down inventory [84][110] Question: Impact of NVIDIA's new Blackwell chip on product design - The company can move from product availability to shipping within a year, leveraging its engineering capabilities to work with customers on GPU lead times [102][117] Question: Pipeline conversion and qualification process - The company uses a two-probability model to assess opportunities, focusing on the likelihood of an opportunity emerging and the probability of winning [108] - The company is actively engaging with customers to convert its growing pipeline into multi-year, multi-million-dollar orders [109]

Exhibit 99.1 One Stop Systems Reports Q4 2023 Results Company to Hold a Conference Call Today at 5:00 p.m. Eastern Time ESCONDIDO, Calif. – March 21, 2024 – – One Stop Systems, Inc. (Nasdaq: OSS), a leader in rugged high- performance compute (HPC) for artificial intelligence (AI), machine learning (ML) and sensor processing at the edge, reported results for the fourth quarter and twelve months ended December 31, 2023. All quarterly and twelve-month comparisons are to the same year-ago period unless otherwis ...

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 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. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) (Registrant's telephone number, including area code) | Securities registered pursuant ...

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- ...

Company Focus and Strategy - One Stop Systems, Inc. focuses on high-performance compute and storage hardware for edge AI applications, targeting markets such as medical, industrial, and military [125]. - The company has shifted its focus to AI Transportables since 2021, with increased efforts in the military and defense sectors, supported by a new strategic advisory board [144]. - Recent organizational changes include the appointment of Michael Knowles as CEO and the hiring of a new VP of Sales with defense industry experience [132][145]. - The board of directors is being reprofiled to align with the company's focus on AI Transportables and military business [133]. - The company has made strategic acquisitions, including OSS GmbH and Bressner Technology GmbH, to enhance its capabilities in high-performance computing [129]. - The company is committed to navigating government bureaucracy and leveraging contacts in the defense sector through its advisory board [131]. - The company has shifted its focus to the development and sale of AI Transportables, particularly targeting military and defense sectors, with new leadership in place to support this strategy [212][216]. Financial Performance - For the three months ended June 30, 2023, total revenue decreased by $1,091,811, or 6.0%, compared to the same period in 2022 [169]. - OSS Classic revenue decreased by $2,437,265, or 22.8%, primarily due to decreased shipments to a media customer and bankruptcy of an autonomous trucking customer [169]. - OSS Europe revenue increased by $1,345,454, or 17.7%, attributed to additional project-based business and an increase in smaller accounts [169]. - Gross profit for the three months ended June 30, 2023, was $4,797,938, representing a gross margin of 27.9% [166]. - Total operating expenses for the three months ended June 30, 2023, were $8,211,495, which is 47.7% of revenue [166]. - The company reported a net loss of $2,399,496 for the three months ended June 30, 2023 [166]. - General and administrative expenses increased to $3,072,880 for the three months ended June 30, 2023, compared to $1,821,445 in the same period of 2022 [166]. - Impairment of goodwill amounted to $2,700,000 for the three months ended June 30, 2023 [166]. - Research and development expenses for the three months ended June 30, 2023, were $954,650, representing 5.5% of revenue [166]. - Total revenue decreased by $1,362,594, or 3.9%, for the six months ended June 30, 2023, compared to the same period in 2022 [170]. - OSS Classic revenue decreased by $4,388,721, or 20.6%, primarily due to reduced shipments to a media customer and bankruptcy of an autonomous trucking customer [170]. - OSS Europe revenue increased by $3,026,127, or 21.5%, due to additional project-based business and an increase in smaller accounts [170]. - Overall gross margin percentage was 29.0% for the six months ended June 30, 2023, compared to 29.2% in the same period in 2022 [175]. - General and administrative expenses increased by $1,761,848, or 49.0%, for the six months ended June 30, 2023, primarily due to organizational restructuring costs [177]. - Marketing and selling expenses increased by $74,013, or 2.3%, for the six months ended June 30, 2023, with OSS Europe experiencing a 16.9% increase [180]. - Research and development expenses decreased by $346,174, or 13.9%, for the six months ended June 30, 2023, with OSS Classic seeing a 16.2% decrease [182]. - The company recorded an impairment of goodwill of $2,700,000 in June 2023, reflecting poor financial performance and strategic shifts [178]. - The company experienced a net loss of $2,800,008 for the six months ended June 30, 2023, a decrease of $3,702,064 from a net income of $902,056 in 2022 [202]. - Adjusted EBITDA for the six months ended June 30, 2023, was $1,016,454, down from $2,589,691 in the same period of 2022, representing a decrease of approximately 60.7% [235]. - Free cash flow for the six months ended June 30, 2023, was $1,749,043, a significant improvement compared to a negative free cash flow of $(7,718,040) in the same period of 2022 [242]. Operational Challenges - As of June 30, 2023, the company completed most orders from a long-term media customer, which is transitioning to cloud solutions, negatively impacting operations [143]. - The company is experiencing supply chain issues, including increased pricing and longer lead times, leading to higher inventory balances [147]. - Economic uncertainties, including inflation and potential recession risks, are affecting customer spending and may lead to order delays or cancellations [146][148]. - The company anticipates continued negative impacts on operations due to customer funding delays and program postponements [148]. - The company is facing delays in funding for customer projects and extended sales cycles, which have negatively impacted results for the three and six months ended June 30, 2023 [209]. - The transition of a major long-term customer to cloud solutions has negatively impacted the company's results and is expected to continue affecting operations in the near term [211]. - Inflation has led to increased costs in semiconductor products and transportation, impacting the company's manufacturing and operating expenses [217]. Cash and Investments - As of June 30, 2023, total cash and cash equivalents were $6,100,317, with short-term investments of $9,321,456 [190]. - The net working capital sources for the six months ended June 30, 2023, were $1,184,919, compared to a use of working capital of $10,071,443 in the prior year, indicating a reduction in working capital use of $11,256,362 [204]. - Cash generated from investing activities decreased to $503,054 in the six months ended June 30, 2023, down from $2,878,600 in the prior year, reflecting a net decrease of $2,375,546 [206]. - Financing activities generated $413,575 during the six months ended June 30, 2023, compared to cash generated from new borrowings in the same period of 2022 [207]. - As of June 30, 2023, the company had $250,000 in cash exceeding FDIC insurance limits, and OSS Europe had €1,898,289 (approximately $2,072,507) in excess of insurance limits in Germany [226]. Shareholder Information - Stock-based compensation expense for the three months ended June 30, 2023, was $898,008, an increase from $532,636 in the same period of 2022 [235]. - The weighted average diluted shares outstanding for the three months ended June 30, 2023, was 20,397,741, compared to 21,180,490 for the same period in 2022 [238]. - The company reported a provision for income taxes of $396,863 for the three months ended June 30, 2023, compared to $85,490 for the same period in 2022 [235]. - Adjusted EPS for the three months ended June 30, 2023, was $(0.00), compared to $0.04 for the same period in 2022 [238]. - The company expects to continue incurring expenses similar to those reflected in adjusted income from continuing operations and adjusted EPS financial adjustments [237]. - The company utilizes foreign exchange forward contracts to manage market risks related to currency fluctuations, indicating a proactive approach to financial risk management [231].

Company Overview - One Stop Systems, Inc. focuses on high-performance compute and storage hardware for edge AI applications, targeting markets such as medical, industrial, and military[114]. - The company is undergoing internal organizational changes to align operations with its focus on the AI Transportables industry, including a reduction in force of 12 employees[120]. - The company has formed a strategic advisory board to accelerate its pursuit of the AI Transportables market, particularly in the military sector[118]. Economic and Market Conditions - The ongoing geopolitical instability and inflation have contributed to economic uncertainty, negatively affecting operations and customer spending[128]. - Management plans to continue monitoring economic conditions and may adjust strategies to address inflation and supply chain constraints[165]. - Inflation has impacted the company with increased product pricing and transportation costs, which are being managed to minimize effects on operations[188]. Financial Performance - Total revenue for the three months ended March 31, 2023, decreased by $270,783, or 1.6%, compared to the same period in 2022, with OSS experiencing an 18.4% decline in revenue[150]. - Gross profit margin for the three months ended March 31, 2023, was 30.2%, slightly up from 30.1% in the same period in 2022[152]. - General and administrative expenses increased by $510,412, or 28.8%, for the three months ended March 31, 2023, as a percentage of revenue rising to 13.6% from 10.4% in the prior year[154]. - Marketing and selling expenses rose by $314,961, or 21.4%, for the three months ended March 31, 2023, increasing as a percentage of revenue to 10.6% from 8.6%[155]. - Research and development expenses decreased by $48,787, or 3.9%, for the three months ended March 31, 2023, representing 7.1% of revenue compared to 7.3% in the same period in 2022[156]. - Net loss for the three months ended March 31, 2023, was $400,512, compared to a net income of $579,234 in the same period in 2022[146]. - Adjusted EBITDA for the same period was $529,911, a significant decrease from $1,404,871 in the prior year[207]. - Non-GAAP net income for Q1 2023 was $89,505, down from $977,871 in Q1 2022[211]. - The company reported a basic and diluted adjusted EPS of $0.00 for Q1 2023, compared to $0.05 for Q1 2022[211]. Cash Flow and Capital Management - For the three months ended March 31, 2023, the company generated $23,964 in cash from operating activities, a significant improvement compared to a cash outflow of $5,018,398 in the same period of 2022, representing a difference of $5,042,362[173]. - The company generated $833,524 in cash from investing activities during the three months ended March 31, 2023, down from $1,028,504 in the same period in 2022, a decrease of $194,980[177]. - Cash used in financing activities was $525,933 for the three months ended March 31, 2023, compared to cash generated from financing activities in the same period of 2022[179]. - The company has the potential to borrow up to $2,000,000 from its revolving line of credit to meet capital requirements if cash generated from operations is insufficient[171]. - Free cash flow for Q1 2023 was $(61,121), a notable improvement from $(5,104,239) in Q1 2022[214]. - Net cash provided by operating activities was $23,964 for Q1 2023, compared to $(5,018,398) in the same quarter of the previous year[214]. Demand and Market Trends - The transition to cloud technology by customers in the media and entertainment sector is leading to decreased demand for high-compute, ruggedized equipment[130]. - The company is experiencing a decrease in demand for high-compute, ruggedized media and entertainment equipment due to customer transitions to lower-cost solutions[183]. Leadership and Governance - The company has not yet identified a successor for the CEO position, and a search firm has been retained to assist in this process[121]. - The effective tax rate for the three months ended March 31, 2023, was 28.9%, compared to 20.7% in the prior period[161]. - The company does not have any off-balance sheet financing arrangements or liabilities, ensuring transparency in its financial condition[189].

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].