Research Solutions, Inc. (NASDAQ:RSSS) Q3 2024 Results Conference Call May 9, 2024 5:00 PM ET Company Participants John Beisler - Three Part Advisors, Investor Relations Roy Olivier - President & Chief Executive Officer Bill Nurthen - Chief Financial Officer Conference Call Participants Jacob Stephan - Lake Street Allen Klee - Maxim Group Operator Good day, ladies and gentlemen, and welcome to this Research Solutions, Inc. Conference Call. At this time, all participants are in a listen-only mode, and later, ...

Revenue Growth - Total revenue increased by 17% to $12.1 million, driven by platform revenue growth[4][5] - Platform revenue grew 76% to $4.0 million, with Annual Recurring Revenue (ARR) up 82% to $16.6 million[5][6] - Total revenue for Q1 2024 was $12,115,672, a 17.1% increase from $10,342,426 in Q1 2023[21] Profitability Metrics - Gross profit increased by 36%, with total gross margin improving 630 basis points to 45.2%[5][8] - Adjusted EBITDA reached a company record of $961,000, a 71.8% increase from the prior-year quarter[5][9] - Adjusted EBITDA for Q1 2024 was $960,740, a 71.8% increase from $559,382 in Q1 2023[15] - Gross profit for Q1 2024 was $5,481,932, a 36.1% increase from $4,027,273 in Q1 2023[21] Customer and Transaction Metrics - Transaction revenue was $8.2 million, with 1,426 active customers, a slight increase from 1,417 in the prior-year quarter[7] - Active customer accounts are defined as the sum of total customers per month divided by the number of months in the period, with customers having at least one transaction per month[12] - B2B ARR increased by 27.9% to $11.65 million, while B2C ARR reached $4.9 million[11] - Annual Recurring Revenue (ARR) is calculated as the annualized value of monthly subscriptions, multiplied by twelve for B2C ARR[13] Operating Expenses and Net Income - Total operating expenses increased by 38.5% to $5.4 million, primarily due to acquisitions[8] - Net income was $76,000, compared to $237,000 in the prior-year quarter[9] - Net income for Q1 2024 was $76,301, a 67.8% decrease from $236,842 in Q1 2023[15] - Net income (loss) for the nine months ended March 31, 2024, was $(965,370), compared to $195,877 in the same period in 2023[23] Cash Flow and Financial Position - Quarterly cash flow from operations exceeded $2 million, a company quarterly record[5] - Cash and cash equivalents as of March 31, 2024, were $4,221,424, a decrease from $13,545,333 as of June 30, 2023[19] - Accounts receivable as of March 31, 2024, were $7,323,379, an increase from $6,153,063 as of June 30, 2023[19] - Total assets as of March 31, 2024, were $40,803,199, an increase from $21,834,727 as of June 30, 2023[19] - Total liabilities as of March 31, 2024, were $26,674,940, an increase from $14,504,240 as of June 30, 2023[19] - Net cash provided by operating activities for the nine months ended March 31, 2024, was $1,589,791, down from $1,872,356 in the same period in 2023[23] - Net cash used in investing activities for the nine months ended March 31, 2024, was $(10,081,507), primarily due to acquisitions of Resolute and Scite[23] - Net cash used in financing activities for the nine months ended March 31, 2024, was $(836,984), including common stock repurchases of $(522,024)[23] - Cash and cash equivalents decreased by $9,323,909 to $4,221,424 at the end of March 31, 2024, from $13,545,333 at the beginning of the period[23] Depreciation, Amortization, and Other Expenses - Depreciation and amortization expenses increased to $525,267 for the nine months ended March 31, 2024, from $30,486 in the same period in 2023[23] - Fair value of vested restricted common stock increased to $1,603,820 for the nine months ended March 31, 2024, from $925,550 in the same period in 2023[23] - Accounts receivable decreased by $739,883 for the nine months ended March 31, 2024, compared to a decrease of $1,545,695 in the same period in 2023[23] - Deferred revenue increased by $768,347 for the nine months ended March 31, 2024, compared to an increase of $986,044 in the same period in 2023[23] - Cash paid for income taxes increased to $82,049 for the nine months ended March 31, 2024, from $5,543 in the same period in 2023[23] Product Launches - The company launched two new product offerings: Technology Landscape and Clinical Trial Landscape[3]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 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: December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File No. 001-39256 RESEARCH SOLUTIONS, INC. (Exact name of registrant as specified in its charter ...

Research Solutions, Inc. (NASDAQ:RSSS) Q2 2024 Earnings Conference Call February 8, 2024 5:00 PM ET Company Participants John Beisler - Three Part Advisors, Investor Relations Roy Olivier - President & Chief Executive Officer William Nurthen - Chief Financial Officer Conference Call Participants Allen Klee - Maxim Group Operator Good day and welcome to the Research Solutions, Inc. Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now lik ...

PART I [Item 1. Condensed Consolidated Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28unaudited%29) For the three months ended September 30, 2023, the company reported a net loss of $988,043, a reversal from prior year's net income, driven by increased operating expenses from the ResoluteAI acquisition despite a 15.8% revenue increase [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $23.7 million as of September 30, 2023, driven by the ResoluteAI acquisition's goodwill and intangible assets, while cash decreased to $9.9 million Balance Sheet Summary | Balance Sheet Items | Sep 30, 2023 (unaudited) | Jun 30, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $9,882,064 | $13,545,333 | | Total current assets | $17,823,842 | $21,301,414 | | Goodwill (provisional) | $3,238,794 | $0 | | Intangible assets, net | $2,528,259 | $462,068 | | **Total assets** | **$23,683,254** | **$21,834,727** | | **Liabilities & Equity** | | | | Total current liabilities | $14,929,034 | $14,504,240 | | Contingent earnout liability | $1,867,043 | $0 | | **Total liabilities** | **$16,796,077** | **$14,504,240** | | **Total stockholders' equity** | **$6,887,177** | **$7,330,487** | - The balance sheet includes provisional amounts for **goodwill ($3.2 million)** and **intangible assets ($2.1 million)** from the ResoluteAI acquisition, which occurred on July 28, 2023[12](index=12&type=chunk)[87](index=87&type=chunk)[91](index=91&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenue grew 15.8% to $10.1 million for the three months ended September 30, 2023, but a 61.9% surge in operating expenses led to a net loss of $988,043 Statements of Operations Summary | Metric | Q1 2024 (ended Sep 30, 2023) | Q1 2023 (ended Sep 30, 2022) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$10,060,971** | **$8,684,643** | **+15.8%** | | Platforms Revenue | $2,600,192 | $2,019,967 | +28.7% | | Transactions Revenue | $7,460,779 | $6,664,676 | +11.9% | | **Gross Profit** | **$4,031,565** | **$3,349,248** | **+20.4%** | | **Total Operating Expenses** | **$5,130,517** | **$3,169,619** | **+61.9%** | | Income (Loss) from Operations | ($1,098,952) | $179,629 | -711.8% | | **Net Income (Loss)** | **($988,043)** | **$214,565** | **-560.5%** | | **Diluted EPS** | **($0.04)** | **$0.01** | **N/A** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash decreased by $3.7 million to $9.9 million for the first quarter of fiscal 2024, primarily due to $2.8 million used for the ResoluteAI acquisition and a shift to cash used in operating activities Cash Flow Summary | Cash Flow Activity | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash from operating activities | ($755,571) | $108,879 | | Net cash from investing activities | ($2,752,078) | ($301,131) | | Net cash from financing activities | ($156,325) | ($18,062) | | **Net decrease in cash** | **($3,663,269)** | **($215,486)** | | **Cash at end of period** | **$9,882,064** | **$10,387,689** | - The primary use of cash in investing activities was a **$2.7 million payment** for an acquisition, net of cash acquired, which corresponds to the ResoluteAI transaction[17](index=17&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's Platforms and Transactions business, the $4.6 million ResoluteAI acquisition, and a subsequent forbearance agreement regarding loan defaults with FCB - The company's business consists of two main offerings: cloud-based SaaS research platforms (**Platforms**) and the transactional sale of scientific, technical, and medical (STM) content (**Transactions**)[19](index=19&type=chunk) - On July 28, 2023, the company acquired 100% of Resolute Innovation, Inc. (ResoluteAI), an advanced search platform powered by AI and NLP technologies[87](index=87&type=chunk) ResoluteAI Acquisition Details | Acquisition Details | Amount | | :--- | :--- | | Total Purchase Consideration (net of cash) | ~$4.6 million | | Initial Payment | $2.7 million | | Contingent Earnout (Fair Value) | $1.9 million | - Subsequent to the quarter end, the company was notified by FCB (successor to SVB) of certain defaults under its loan agreement, primarily related to diversifying cash holdings after the SVB collapse, and a forbearance agreement was reached on November 14, 2023, waiving the defaults provided the company regains compliance by January 30, 2024[94](index=94&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 fiscal 2024 revenue growth to platform deployments and transaction volumes, but a 61.9% surge in operating expenses led to a net loss and negative Adjusted EBITDA [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Total revenue increased by 15.8% to $10.1 million, but a 61.9% rise in operating expenses, driven by acquisition and personnel costs, resulted in a net loss of $988,043 Results of Operations Summary | Item | Q1 2024 (ended Sep 30, 2023) | Q1 2023 (ended Sep 30, 2022) | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $10,060,971 | $8,684,643 | 15.8% | | Gross Profit | $4,031,565 | $3,349,248 | 20.4% | | Total Operating Expenses | $5,130,517 | $3,169,619 | 61.9% | | Net Income (Loss) | ($988,043) | $214,565 | -560.5% | - Platform revenue growth was driven by new customer deployments, expansion from existing customers, and sales from the ResoluteAI transaction[118](index=118&type=chunk) - The increase in operating expenses was primarily due to greater personnel costs (including from ResoluteAI), higher legal expenses (including proxy-related and acquisition costs), and separation costs paid to a former officer[123](index=123&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents decreased by $3.7 million to $9.9 million due to the ResoluteAI acquisition, with the company subsequently entering a forbearance agreement for loan defaults with FCB - Cash and cash equivalents decreased by **$3,663,269** during the quarter, from **$13.5 million to $9.9 million**, primarily due to cash used in investing activities for the ResoluteAI acquisition[126](index=126&type=chunk)[127](index=127&type=chunk) - The company has a revolving line of credit with no outstanding borrowings as of September 30, 2023, and the available credit was approximately **$2,355,000**[134](index=134&type=chunk) - Post-quarter, the company was informed of defaults under its SVB loan agreement related to diversifying cash after the SVB collapse, and a forbearance agreement was signed with the successor bank, FCB, on November 14, 2023[136](index=136&type=chunk) [Non-GAAP Measure – Adjusted EBITDA](index=43&type=section&id=Non-GAAP%20Measure%20%E2%80%93%20Adjusted%20EBITDA) Adjusted EBITDA for the three months ended September 30, 2023, was a loss of $440,898, a significant decline from the prior year's positive $433,318, primarily due to the operating loss Adjusted EBITDA Reconciliation | Reconciliation Item | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net income (loss) | ($988,043) | $214,565 | | Other (income) expense | ($140,311) | ($39,069) | | Foreign currency transaction loss (gain) | $6,620 | $72,516 | | Provision for income taxes | $29,402 | $4,133 | | Depreciation and amortization | $59,620 | $5,812 | | Stock-based compensation | $591,814 | $175,361 | | **Adjusted EBITDA** | **($440,898)** | **$433,318** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not required for smaller reporting companies - The company has indicated that this disclosure is not required[142](index=142&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of September 30, 2023, the company's disclosure controls and procedures were effective at a reasonable assurance level[144](index=144&type=chunk) - No material changes to the internal control over financial reporting were identified during the quarter ended September 30, 2023[149](index=149&type=chunk) PART II — OTHER INFORMATION [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) The company states that there have been no material changes from the risk factors disclosed in its Annual Report on Form 10-K for the fiscal year ended June 30, 2023 - There have been no material changes to the risk factors previously disclosed in the company's Form 10-K for the year ended June 30, 2023[150](index=150&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 18,603 shares of common stock for $46,135 during the quarter to cover employee tax obligations, with $104,960 remaining under authorization - The company has a stock repurchase program to allow employees to cover tax obligations from vested stock awards, authorized through fiscal year 2024[151](index=151&type=chunk) Stock Repurchase Activity | Repurchase Activity | Value | | :--- | :--- | | Shares Repurchased (Q1 FY24) | 18,603 | | Average Price Paid per Share | ~$2.48 | | Total Cost | $46,135 | | Remaining Authorization | $104,960 | [Item 6. Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including CEO and CFO certifications and the ResoluteAI merger agreement incorporated by reference - The exhibit list includes CEO and CFO certifications as required by Sarbanes-Oxley Sections 302 and 905[157](index=157&type=chunk) - The merger agreement for the Resolute Innovation, Inc. acquisition is included by reference to a prior Form 8-K filing[157](index=157&type=chunk)

Research Solutions, Inc. (NASDAQ:RSSS) Q1 2024 Earnings Conference Call November 9, 2023 5:00 PM ET Company Participants John Beisler - Three Part Advisors, Investor Relations Roy Olivier - Chief Executive Officer and President William Nurthen - Chief Financial Officer Conference Call Participants Richard Baldry - ROTH Capital Allen Klee - Maxim Group Operator Thank you for standing by. This is the conference operator. Welcome to the Research Solutions Inc. First Quarter 2024 Earnings Conference Call. As a ...

Table of Contents 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: June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File No. 001-39256 RESEARCH SOLUTIONS, INC. (Exact name of registrant as specified in its charter) (State or ...

Research Solutions, Inc. (NASDAQ:RSSS) Q4 2023 Earnings Call Transcript September 13, 2023 5:00 PM ET Company Participants Steven Hooser - Investor Relations Roy W. Olivier - President and Chief Executive Officer Bill Nurthen - Chief Financial Officer Conference Call Participants Richard Baldry - Roth Capital Allen Klee - Maxim Group Peter Rabover - Artko Capital Operator Good afternoon, and welcome to the Research Solutions Fourth Quarter 2023 Earnings Conference Call. All participants will be in listen-on ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 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 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File No. 001-39256 RESEARCH SOLUTIONS, INC. (Exact name of registrant as specified in its charter) N ...

Research Solutions, Inc. (NASDAQ:RSSS) Q3 2023 Earnings Conference Call May 11, 2023 5:00 PM ET Company Participants John Beisler – Investor Relations Roy W. Olivier – President and Chief Executive Officer Bill Nurthen – Chief Financial Officer Conference Call Participants Allen Klee – Maxim Operator Good afternoon everyone and thank you for participating in today’s conference call to discuss Research Solutions’ Financial and Operating Results for its Fiscal Third Year Ended March 31, 2023. As a reminder, t ...