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 ...

[PART I — FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This section presents Research Solutions, Inc.'s unaudited condensed consolidated financial statements and detailed notes for the periods ended December 31, 2022 and 2021 [Item 1. Condensed Consolidated Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section provides the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, equity changes, and cash flows, with explanatory notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the unaudited condensed consolidated balance sheets for Research Solutions, Inc. as of December 31, 2022, and June 30, 2022 Condensed Consolidated Balance Sheets | Metric | Dec 31, 2022 (unaudited) | Jun 30, 2022 | | :----------------------------------- | :----------------------- | :----------- | | **Assets** | | | | Cash and cash equivalents | $11,262,564 | $10,603,175 | | Accounts receivable, net | $5,243,386 | $5,251,545 | | Total current assets | $16,890,795 | $16,977,398 | | Total assets | $17,244,334 | $17,026,276 | | **Liabilities & Stockholders' Equity** | | | | Accounts payable and accrued expenses | $5,629,101 | $6,604,032 | | Deferred revenue | $5,967,525 | $5,538,526 | | Total current liabilities | $11,596,626 | $12,142,558 | | Total stockholders' equity | $5,647,708 | $4,883,718 | | Total liabilities and stockholders' equity | $17,244,334 | $17,026,276 | [Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Other%20Comprehensive%20Income%20(Loss)) This section presents the unaudited condensed consolidated statements of operations and other comprehensive income (loss) for the three and six months ended December 31, 2022 and 2021 Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss) | Metric | Three Months Ended Dec 31, 2022 | Three Months Ended Dec 31, 2021 | Six Months Ended Dec 31, 2022 | Six Months Ended Dec 31, 2021 | | :---------------------------------- | :------------------------------ | :------------------------------ | :---------------------------- | :---------------------------- | | Total revenue | $8,716,666 | $7,872,287 | $17,401,309 | $15,614,791 | | Total cost of revenue | $5,312,839 | $5,034,627 | $10,648,234 | $10,116,756 | | Gross profit | $3,403,827 | $2,837,660 | $6,753,075 | $5,498,035 | | Total operating expenses | $3,733,270 | $3,319,509 | $6,902,889 | $6,346,392 | | Loss from operations | $(329,443) | $(481,849) | $(149,814) | $(848,357) | | Net loss | $(255,530) | $(481,585) | $(40,965) | $(853,587) | | Net loss per share, basic and diluted | $(0.01) | $(0.02) | $0.00 | $(0.03) | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This section presents the unaudited condensed consolidated statements of changes in stockholders' equity for the periods ended December 31, 2022 and 2021 Condensed Consolidated Statements of Changes in Stockholders' Equity | Metric | Balance, Sep 30, 2022 | Balance, Dec 31, 2022 | | :-------------------------------- | :-------------------- | :-------------------- | | Common Stock Shares | 27,330,878 | 29,154,737 | | Common Stock Amount | $27,331 | $29,155 | | Additional Paid-in Capital | $28,298,171 | $28,874,383 | | Accumulated Deficit | $(22,879,707) | $(23,135,237) | | Total Stockholders' Equity | $5,318,678 | $5,647,708 | | Metric | Balance, Jul 1, 2022 | Balance, Dec 31, 2022 | | :-------------------------------- | :------------------- | :-------------------- | | Common Stock Shares | 27,075,648 | 29,154,737 | | Common Stock Amount | $27,076 | $29,155 | | Additional Paid-in Capital | $28,072,855 | $28,874,383 | | Accumulated Deficit | $(23,094,272) | $(23,135,237) | | Total Stockholders' Equity | $4,883,718 | $5,647,708 | - For the three months ended December 31, 2022, the company issued **1,800,000 shares** of restricted common stock and **40,000 shares** upon exercise of stock options, while repurchasing **16,141 shares**[14](index=14&type=chunk) - For the six months ended December 31, 2022, the company issued **2,022,334 shares** of restricted common stock and **46,046 shares** upon exercise of stock options, while repurchasing **25,800 shares**[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the unaudited condensed consolidated statements of cash flows for the six months ended December 31, 2022 and 2021 Condensed Consolidated Statements of Cash Flows | Metric | Six Months Ended Dec 31, 2022 | Six Months Ended Dec 31, 2021 | | :------------------------------------------ | :---------------------------- | :---------------------------- | | Net cash provided by (used in) operating activities | $1,023,585 | $(316,899) | | Net cash used in investing activities | $(316,326) | $(26,991) | | Net cash provided by (used in) financing activities | $(48,729) | $22,359 | | Net increase (decrease) in cash and cash equivalents | $659,389 | $(324,623) | | Cash and cash equivalents, end of period | $11,262,564 | $10,679,714 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining the company's organization, significant accounting policies, and specific financial activities [Note 1. Organization, Nature of Business and Basis of Presentation](index=9&type=section&id=Note%201.%20Organization,%20Nature%20of%20Business%20and%20Basis%20of%20Presentation) This note describes Research Solutions, Inc.'s corporate structure, business model, and the basis for financial statement presentation - Research Solutions, Inc. was incorporated in Nevada on November 2, 2006, operating as a publicly traded holding company with three wholly-owned subsidiaries[18](index=18&type=chunk) - The company offers two main services: a cloud-based SaaS research platform ('Platforms') sold via annual license agreements, and the transactional sale of scientific, technical, and medical ('STM') content as individual articles ('Transactions')[19](index=19&type=chunk)[92](index=92&type=chunk) - The Platform provides proprietary software and internet-based interfaces for annual subscription fees, offering functionalities like order initiation, cost-effective acquisition, transaction management, reporting, authentication, and integration with other systems, with recent additions including interactive app-like components for data gathering and extraction[20](index=20&type=chunk)[21](index=21&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk) - The Transactions service provides access to over **80 million** existing and **one million** newly published STM articles annually, delivered electronically, often within minutes, with necessary copyright licenses[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=11&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the critical accounting policies and estimates used in preparing the condensed consolidated financial statements - The financial statements are unaudited and prepared in accordance with GAAP and SEC interim financial reporting rules, with certain disclosures condensed or omitted[27](index=27&type=chunk) - Management makes estimates and assumptions affecting reported amounts, including reserves for uncollectible accounts, accruals for liabilities, valuation of equity instruments, and realization of deferred tax assets[29](index=29&type=chunk)[30](index=30&type=chunk) - The company's financial instruments, cash and accounts receivable, are subject to credit risk, with cash held in high-quality financial institutions, sometimes exceeding FDIC limits, and foreign currency cash holdings in Euros and British Pounds amounted to **$1,406,009** at December 31, 2022[31](index=31&type=chunk)[32](index=32&type=chunk) - No single customer represented **10% or more** of revenue or accounts receivable for the periods presented[34](index=34&type=chunk) Vendor Concentrations | Vendor | Three Months Ended Dec 31, 2022 | Three Months Ended Dec 31, 2021 | Six Months Ended Dec 31, 2022 | Six Months Ended Dec 31, 2021 | | :------- | :------------------------------ | :------------------------------ | :---------------------------- | :---------------------------- | | Vendor A | 21 % | 21 % | 21 % | 20 % | | Vendor B | 13 % | 14 % | 12 % | 13 % | - Revenue is recognized under ASC 606: Platform revenue is recognized ratably over the subscription term (typically one year), and Transaction revenue is recognized upon electronic delivery of articles[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) Revenue by Geographical Region (Three Months Ended December 31) | Region | 2022 Revenue | 2022 % | 2021 Revenue | 2021 % | | :----------- | :----------- | :----- | :----------- | :----- | | United States | $5,061,779 | 58.1 % | $4,603,421 | 58.5 % | | Europe | $2,963,155 | 34.0 % | $2,717,935 | 34.5 % | | Rest of World | $691,732 | 7.9 % | $550,931 | 7.0 % | | Total | $8,716,666 | 100 % | $7,872,287 | 100 % | Accounts Receivable by Geographical Region (As of December 31, 2022) | Region | Amount | % | Jun 30, 2022 Amount | Jun 30, 2022 % | | :----------- | :----------- | :-- | :------------------ | :------------- | | United States | $3,068,940 | 58.5 % | $3,255,976 | 62.0 % | | Europe | $1,645,037 | 31.4 % | $1,665,111 | 31.7 % | | Rest of World | $529,409 | 10.1 % | $330,458 | 6.3 % | | Total | $5,243,386 | 100 % | $5,251,545 | 100 % | - Deferred revenue, primarily from cloud-based software subscriptions billed in advance, is recorded as a current liability[42](index=42&type=chunk)[43](index=43&type=chunk) - Cost of Platform revenue includes personnel costs and third-party service/data providers, while Cost of Transaction revenue primarily consists of copyright fees and, to a lesser extent, personnel costs[44](index=44&type=chunk)[45](index=45&type=chunk) - Stock-based compensation is measured at grant date fair value and recognized over the vesting period, with foreign currency translation gains/losses included in selling, general and administrative expenses[46](index=46&type=chunk)[49](index=49&type=chunk) Foreign Currency Exchange Rates (Period End) | Currency | Dec 31, 2022 | Dec 31, 2021 | Jun 30, 2022 | Jun 30, 2021 | | :--------- | :----------- | :----------- | :----------- | :----------- | | Euro : US Dollar | 1.07 | 1.13 | 1.05 | 1.19 | | GBP : US Dollar | 1.21 | 1.35 | 1.21 | 1.38 | | Mexican Peso : US Dollar | 0.05 | 0.05 | 0.05 | 0.05 | - Basic and diluted net loss per common share were the same for the periods presented due to all potentially dilutive securities being anti-dilutive[54](index=54&type=chunk) - The company does not expect ASU 2016-13 (CECL) to have a material impact on its financial position, results of operations, and cash flows, effective July 1, 2023[55](index=55&type=chunk) [Note 3. Line of Credit](index=17&type=section&id=Note%203.%20Line%20of%20Credit) This note details the company's revolving line of credit, including terms, availability, and outstanding balances - The company has a revolving line of credit with Silicon Valley Bank for the lesser of **$2,500,000** or **80%** of eligible accounts receivable, maturing February 28, 2024[57](index=57&type=chunk)[138](index=138&type=chunk) - As of December 31, 2022, there were no outstanding borrowings, and approximately **$2,342,000** of credit was available, with an interest rate of **8.5%**[58](index=58&type=chunk)[139](index=139&type=chunk) [Note 4. Stockholders' Equity](index=17&type=section&id=Note%204.%20Stockholders'%20Equity) This note provides information on the company's equity compensation plans, stock option activity, restricted common stock, and share repurchases - The company has two equity compensation plans (2007 Plan and 2017 Plan) for employees, directors, and consultants, with **1,763,262 shares** available for grant under the 2017 Plan as of December 31, 2022[59](index=59&type=chunk)[61](index=61&type=chunk) Stock Option Activity (Six Months Ended December 31, 2022) | Category | Shares | Weighted Average Exercise Price | | :-------------------------- | :------- | :------------------------------ | | Outstanding at June 30, 2022 | 3,182,872 | $1.79 | | Granted | 200,000 | $2.15 | | Options vesting | — | — | | Exercised | (162,648) | $1.40 | | Forfeited | (150,000) | $1.81 | | Outstanding at December 31, 2022 | 3,070,224 | $1.84 | - The weighted average remaining contractual life of all outstanding options was **5.68 years** as of December 31, 2022, with an aggregate intrinsic value of **$1,050,934**[63](index=63&type=chunk) - During the six months ended December 31, 2022, **200,000 options** were granted to directors, fully expensed due to immediate vesting, and total vested options fair value was **$301,737**[64](index=64&type=chunk) Black-Scholes Option Pricing Model Assumptions (Six Months Ended December 31) | Assumption | 2022 | 2021 | | :-------------------- | :----- | :--------- | | Expected dividend yield | — % | — % | | Risk-free interest rate | 3.76 % | 0.92 - 1.01 % | | Expected life (in years) | 5 | 6 | | Expected volatility | 56 % | 56 % | Restricted Common Stock Activity (Six Months Ended December 31, 2022) | Category | Number of Shares | Fair Value | | :-------------------------- | :--------------- | :----------- | | Non-vested, June 30, 2022 | 400,092 | $775,453 | | Granted | 2,022,334 | $2,958,528 | | Vested | (122,143) | $(482,327) | | Non-vested, December 31, 2022 | 2,300,283 | $3,251,654 | - **1,800,000 shares** of restricted common stock were granted under the Long-Term Equity Bonus Program (LTEBP) to key management, vesting based on 30-day volume weighted average price (VWAP) targets ranging from **$3.00 to $6.00 per share** over **5 years**[69](index=69&type=chunk)[72](index=72&type=chunk)[76](index=76&type=chunk) - The fair value of LTEBP awards was determined using Monte Carlo simulations, and unvested compensation related to restricted common stock was **$3,251,654** as of December 31, 2022[73](index=73&type=chunk) - The Compensation Committee authorized repurchases of up to **$400,000** of common stock from employees to satisfy tax obligations related to stock incentive awards, extended through fiscal year 2023[75](index=75&type=chunk)[155](index=155&type=chunk) - During the six months ended December 31, 2022, the company repurchased **25,800 shares** for **$48,729**, with **$206,616** remaining under the authorization as of December 31, 2022[78](index=78&type=chunk)[157](index=157&type=chunk) [Note 5. Non-refundable Deposit for Asset Acquisition](index=24&type=section&id=Note%205.%20Non-refundable%20Deposit%20for%20Asset%20Acquisition) This note describes a non-refundable deposit made for the acquisition of certain STM content contracts - Reprints Desk entered an asset purchase agreement with FIZ Karlsruhe to acquire certain STM content contracts, effective January 1, 2023[80](index=80&type=chunk) - A non-refundable deposit of **$297,450 (€300,000)** was paid on September 30, 2022, with potential contingent consideration of up to an additional **$248,000 (€250,000)** and a bonus amount based on future service fees[80](index=80&type=chunk) [Note 6. Contingencies](index=24&type=section&id=Note%206.%20Contingencies) This note addresses potential risks and uncertainties, including the impacts of the COVID-19 pandemic and inflation - The company acknowledges risks and uncertainties from the COVID-19 pandemic, but has not experienced significant negative impacts on operations or cash flows to date[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk) - Inflation has not materially affected operations to date, but future inflationary and interest rate pressures could increase operating costs and stress working capital[84](index=84&type=chunk) [Note 7. Subsequent Events](index=26&type=section&id=Note%207.%20Subsequent%20Events) This note discloses significant events that occurred after the balance sheet date, including stock issuances and forfeitures - In January 2023, the company issued **12,722 net shares** and **12,515 net shares** upon cashless exercise of stock options, and **50,000 shares** for **$57,500 cash**[86](index=86&type=chunk)[87](index=87&type=chunk) - On January 31, 2023, **65,165 shares** of restricted common stock were retired due to forfeiture prior to vesting[86](index=86&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes the company's financial condition and operational results, covering revenue, costs, expenses, liquidity, and Adjusted EBITDA for the periods presented [Overview](index=27&type=section&id=Overview) This overview describes Research Solutions, Inc.'s business model, including its SaaS platform and transactional content services, and discusses general economic impacts - Research Solutions, Inc. is a publicly traded holding company providing cloud-based SaaS research platforms ('Platforms') and transactional sales of scientific, technical, and medical ('STM') content ('Transactions')[91](index=91&type=chunk)[92](index=92&type=chunk) - The Platforms offer proprietary software for annual subscription fees, enabling customers to manage transactions, access reporting, and integrate with other systems, with recent additions of interactive app-like components[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) - The Transactions service provides access to over **80 million** STM articles, delivered electronically, often within minutes, with copyright compliance[97](index=97&type=chunk)[98](index=98&type=chunk) - The company has not experienced significant negative impacts from the COVID-19 pandemic to date, but acknowledges potential future risks to transactional orders and platform subscriptions[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) - Inflation has not materially affected operations, but future inflationary and interest rate pressures could increase operating costs[102](index=102&type=chunk) [Critical Accounting Policies and Estimates](index=29&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section highlights key accounting policies and estimates that significantly impact the financial statements, such as revenue recognition and stock-based compensation - The preparation of financial statements requires management to make estimates and assumptions that affect reported amounts, with actual results potentially differing[103](index=103&type=chunk)[104](index=104&type=chunk) - Revenue recognition follows ASC 606, with Platform revenue recognized ratably over the subscription term and Transaction revenue recognized upon delivery of single articles[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) - Stock-based compensation fair value is estimated using the Black-Scholes-Merton Option Pricing model, with assumptions that could materially affect future compensation expense[110](index=110&type=chunk)[112](index=112&type=chunk) - The company refers to Footnote 2 for a discussion of recent accounting pronouncements, including the expected non-material impact of ASU 2016-13 (CECL)[113](index=113&type=chunk)[55](index=55&type=chunk) [Quarterly Information (Unaudited)](index=33&type=section&id=Quarterly%20Information%20(Unaudited)) This section presents unaudited quarterly financial data, including revenue, gross profit, operating expenses, and net income (loss) per share Quarterly Financial Data (Unaudited) | Metric | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Platforms Revenue | $2,110,272 | $2,019,967 | $1,886,845 | $1,786,224 | $1,604,829 | $1,509,874 | $1,429,160 | $1,344,183 | | Transactions Revenue | $6,606,394 | $6,664,676 | $6,675,164 | $6,971,128 | $6,267,458 | $6,232,630 | $6,788,494 | $6,996,349 | | Total Revenue | $8,716,666 | $8,684,643 | $8,562,009 | $8,757,352 | $7,872,287 | $7,742,504 | $8,217,654 | $8,340,532 | | Total Gross Profit | $3,403,827 | $3,349,248 | $3,283,142 | $3,238,497 | $2,837,660 | $2,660,375 | $2,742,216 | $2,702,640 | | Total Operating Expenses | $3,733,270 | $3,169,619 | $3,726,756 | $3,578,442 | $3,319,509 | $3,026,883 | $2,831,228 | $2,652,570 | | Net income (loss) | $(255,530) | $214,565 | $(438,267) | $(340,530) | $(481,585) | $(372,002) | $(88,876) | $49,748 | | Basic EPS | $(0.01) | $0.01 | $(0.02) | $(0.01) | $(0.02) | $(0.01) | $0.00 | $0.00 | | Diluted EPS | $(0.01) | $0.01 | $(0.02) | $(0.01) | $(0.02) | $(0.01) | $0.00 | $0.00 | [Comparison of the Three and Six Months Ended December 31, 2022 and 2021](index=34&type=section&id=Comparison%20of%20the%20Three%20and%20Six%20Months%20Ended%20December%2031,%202022%20and%202021) This section provides a detailed comparison of financial performance for the three and six months ended December 31, 2022 and 2021 [Revenue](index=37&type=section&id=Revenue) This section analyzes the changes in Platform and Transaction revenue for the three and six months ended December 31, 2022 and 2021 Revenue Comparison (Three Months Ended December 31) | Category | 2022 | 2021 | $ Change | % Change | | :----------- | :----------- | :----------- | :--------- | :--------- | | Platforms | $2,110,272 | $1,604,829 | $505,443 | 31.5 % | | Transactions | $6,606,394 | $6,267,458 | $338,936 | 5.4 % | | Total revenue | $8,716,666 | $7,872,287 | $844,379 | 10.7 % | Revenue Comparison (Six Months Ended December 31) | Category | 2022 | 2021 | $ Change | % Change | | :----------- | :----------- | :----------- | :--------- | :--------- | | Platforms | $4,130,239 | $3,114,703 | $1,015,536 | 32.6 % | | Transactions | $13,271,070 | $12,500,088 | $770,982 | 6.2 % | | Total revenue | $17,401,309 | $15,614,791 | $1,786,518 | 11.4 % | - Platform revenue increased due to additional deployments to new and existing customers and expansion from existing customers[119](index=119&type=chunk) - Transaction revenue increased primarily due to higher paid order volume and pricing initiatives[119](index=119&type=chunk) [Cost of Revenue](index=37&type=section&id=Cost%20of%20Revenue) This section examines the changes in Platform and Transaction cost of revenue and their percentages relative to revenue Cost of Revenue Comparison (Three Months Ended December 31) | Category | 2022 | 2021 | $ Change | % Change | | :----------- | :----------- | :----------- | :--------- | :--------- | | Platforms | $253,073 | $231,668 | $21,405 | 9.2 % | | Transactions | $5,059,766 | $4,802,959 | $256,807 | 5.3 % | | Total | $5,312,839 | $5,034,627 | $278,212 | 5.5 % | Cost of Revenue as a Percentage of Revenue (Three Months Ended December 31) | Category | 2022 % | 2021 % | % Change | | :----------- | :----- | :----- | :------- | | Platforms | 12.0 % | 14.4 % | (2.4)% | | Transactions | 76.6 % | 76.6 % | - % | | Total | 61.0 % | 64.0 % | (3.0)% | Cost of Revenue Comparison (Six Months Ended December 31) | Category | 2022 | 2021 | $ Change | % Change | | :----------- | :----------- | :----------- | :--------- | :--------- | | Platforms | $483,546 | $477,324 | $6,222 | 1.3 % | | Transactions | $10,164,688 | $9,639,432 | $525,256 | 5.4 % | | Total | $10,648,234 | $10,116,756 | $531,478 | 5.3 % | Cost of Revenue as a Percentage of Revenue (Six Months Ended December 31) | Category | 2022 % | 2021 % | % Change | | :----------- | :----- | :----- | :------- | | Platforms | 11.7 % | 15.3 % | (3.6)% | | Transactions | 76.6 % | 77.1 % | (0.5)% | | Total | 61.2 % | 64.8 % | (3.6)% | - Platform cost of revenue as a percentage of revenue decreased due to lower software expense and personnel costs[123](index=123&type=chunk)[124](index=124&type=chunk) - Transaction cost of revenue as a percentage of revenue decreased primarily due to proportionally lower personnel costs[124](index=124&type=chunk) [Gross Profit](index=40&type=section&id=Gross%20Profit) This section details the changes in gross profit and gross profit margins for both Platforms and Transactions segments Gross Profit Comparison (Three Months Ended December 31) | Category | 2022 | 2021 | $ Change | % Change | | :----------- | :----------- | :----------- | :--------- | :--------- | | Platforms | $1,857,199 | $1,373,161 | $484,038 | 35.2 % | | Transactions | $1,546,628 | $1,464,499 | $82,129 | 5.6 % | | Total | $3,403,827 | $2,837,660 | $566,167 | 20.0 % | Gross Profit as a Percentage of Revenue (Three Months Ended December 31) | Category | 2022 % | 2021 % | % Change | | :----------- | :----- | :----- | :------- | | Platforms | 88.0 % | 85.6 % | 2.4 % | | Transactions | 23.4 % | 23.4 % | - % | | Total | 39.0 % | 36.0 % | 3.0 % | Gross Profit Comparison (Six Months Ended December 31) | Category | 2022 | 2021 | $ Change | % Change | | :----------- | :----------- | :----------- | :--------- | :--------- | | Platforms | $3,646,693 | $2,637,379 | $1,009,314 | 38.3 % | | Transactions | $3,106,382 | $2,860,656 | $245,726 | 8.6 % | | Total | $6,753,075 | $5,498,035 | $1,255,040 | 22.8 % | Gross Profit as a Percentage of Revenue (Six Months Ended December 31) | Category | 2022 % | 2021 % | % Change | | :----------- | :----- | :----- | :------- | | Platforms | 88.3 % | 84.7 % | 3.6 % | | Transactions | 23.4 % | 22.9 % | 0.5 % | | Total | 38.8 % | 35.2 % | 3.6 % | [Operating Expenses](index=40&type=section&id=Operating%20Expenses) This section analyzes the changes in sales and marketing, technology, general and administrative, depreciation, stock-based compensation, and foreign currency expenses Operating Expenses Comparison (Three Months Ended December 31) | Expense Category | 2022 | 2021 | $ Change | % Change | | :-------------------------------- | :----------- | :----------- | :--------- | :--------- | | Sales and marketing | $666,608 | $518,357 | $148,251 | 28.6 % | | Technology and product development | $922,132 | $868,236 | $53,896 | 6.2 % | | General and administrative | $1,613,664 | $1,616,135 | $(2,471) | (0.2)% | | Depreciation and amortization | $6,342 | $4,260 | $2,082 | 48.9 % | | Stock-based compensation expense | $608,703 | $300,539 | $308,164 | 102.5 % | | Foreign currency transaction loss (gain) | $(84,179) | $11,982 | $(96,161) | (802.5)% | | Total operating expenses | $3,733,270 | $3,319,509 | $413,761 | 12.5 % | Operating Expenses Comparison (Six Months Ended December 31) | Expense Category | 2022 | 2021 | $ Change | % Change | | :-------------------------------- | :----------- | :----------- | :--------- | :--------- | | Sales and marketing | $1,187,824 | $1,041,308 | $146,516 | 14.1 % | | Technology and product development | $1,797,422 | $1,689,696 | $107,726 | 6.4 % | | General and administrative | $3,133,088 | $3,113,358 | $19,730 | 0.6 % | | Depreciation and amortization | $12,154 | $7,156 | $4,998 | 69.8 % | | Stock-based compensation expense | $784,064 | $471,649 | $312,415 | 66.2 % | | Foreign currency transaction loss (gain) | $(11,663) | $23,225 | $(34,888) | (150.2)% | | Total operating expenses | $6,902,889 | $6,346,392 | $556,497 | 8.8 % | - Sales and marketing expenses increased due to higher personnel costs and marketing spend, partially offset by lower consulting expenses[128](index=128&type=chunk) - Technology and product development expenses rose due to increased software development personnel costs, partially offset by lower consulting and recruiting expenses[128](index=128&type=chunk) - General and administrative expenses saw a slight increase (six months) or decrease (three months) due to a mix of higher personnel costs and lower accounting/consulting expenses[128](index=128&type=chunk) - Stock-based compensation expense significantly increased by **102.5%** (three months) and **66.2%** (six months) due to vesting of awards[116](index=116&type=chunk)[118](index=118&type=chunk) - Foreign currency transaction loss turned into a gain for the three and six months ended December 31, 2022, significantly impacting the change[116](index=116&type=chunk)[118](index=118&type=chunk) [Net Income (Loss)](index=42&type=section&id=Net%20Income%20(Loss)) This section discusses the changes in net income (loss) for the three and six months ended December 31, 2022 and 2021 Net Income (Loss) Comparison (Three Months Ended December 31) | Metric | 2022 | 2021 | $ Change | % Change | | :----------- | :----------- | :----------- | :--------- | :--------- | | Net loss | $(255,530) | $(481,585) | $226,055 | 46.9 % | Net Income (Loss) Comparison (Six Months Ended December 31) | Metric | 2022 | 2021 | $ Change | % Change | | :----------- | :----------- | :----------- | :--------- | :--------- | | Net loss | $(40,965) | $(853,587) | $812,622 | 95.2 % | - Net loss decreased by **46.9%** for the three months and **95.2%** for the six months ended December 31, 2022, primarily due to increased gross profit, partially offset by increased operating expenses[129](index=129&type=chunk)[130](index=130&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's cash flows, capital resources, and ability to meet short-term and long-term obligations Consolidated Statements of Cash Flow Data (Six Months Ended December 31) | Metric | 2022 | 2021 | | :------------------------------------------ | :----------- | :----------- | | Net cash provided by (used in) operating activities | $1,023,585 | $(316,899) | | Net cash used in investing activities | $(316,326) | $(26,991) | | Net cash provided by (used in) financing activities | $(48,729) | $22,359 | | Net increase (decrease) in cash and cash equivalents | $659,389 | $(324,623) | | Cash and cash equivalents, end of period | $11,262,564 | $10,679,714 | - Cash and cash equivalents increased by **$659,389** to **$11,262,564** as of December 31, 2022, primarily driven by cash provided by operating activities[133](index=133&type=chunk) - Operating activities provided **$1,023,585** in cash for the six months ended December 31, 2022, mainly due to decreases in prepaid royalties and increases in deferred revenue and fair value of vested restricted common stock, partially offset by a decrease in accounts payable[134](index=134&type=chunk) - Investing activities used **$316,326**, primarily for a non-refundable deposit for asset acquisition[136](index=136&type=chunk) - Financing activities used **$48,729**, resulting from common stock repurchases[137](index=137&type=chunk) - The company has an available revolving line of credit of approximately **$2,342,000** with Silicon Valley Bank, with no outstanding borrowings as of December 31, 2022[138](index=138&type=chunk)[139](index=139&type=chunk) [Non-GAAP Measure – Adjusted EBITDA](index=46&type=section&id=Non-GAAP%20Measure%20%E2%80%93%20Adjusted%20EBITDA) This section presents Adjusted EBITDA as a non-GAAP measure, reconciling it to net income (loss) and explaining its relevance - Adjusted EBITDA is presented as a supplemental non-GAAP measure to compare performance across reporting periods by excluding items not indicative of core operating performance[140](index=140&type=chunk)[141](index=141&type=chunk) Adjusted EBITDA Reconciliation to Net Income (Loss) | Metric | Three Months Ended Dec 31, 2022 | Three Months Ended Dec 31, 2021 | Six Months Ended Dec 31, 2022 | Six Months Ended Dec 31, 2021 | | :-------------------------- | :------------------------------ | :------------------------------ | :---------------------------- | :---------------------------- | | Net income (loss) | $(255,530) | $(481,585) | $(40,965) | $(853,587) | | Other (income) expense | $(74,695) | $(264) | $(113,764) | $(540) | | Foreign currency transaction loss (gain) | $(84,179) | $11,982 | $(11,663) | $23,225 | | Provision for income taxes | $782 | $0 | $4,915 | $5,770 | | Depreciation and amortization | $6,342 | $4,260 | $12,154 | $7,156 | | Stock-based compensation | $608,703 | $300,539 | $784,064 | $471,649 | | Adjusted EBITDA | $201,423 | $(165,068) | $634,741 | $(346,327) | - Adjusted EBITDA increased significantly to **$201,423** for the three months and **$634,741** for the six months ended December 31, 2022, compared to negative figures in the prior year, reflecting improved core operating performance[141](index=141&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that quantitative and qualitative disclosures about market risk are not required for the company - The company is not required to provide quantitative and qualitative disclosures about market risk[144](index=144&type=chunk) [Item 4. Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures) This section evaluates the effectiveness of the company's disclosure controls and internal control over financial reporting, acknowledging inherent limitations [Evaluation of Disclosure Controls and Procedures](index=48&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section presents management's conclusion on the effectiveness of the company's disclosure controls and procedures - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of December 31, 2022[145](index=145&type=chunk)[146](index=146&type=chunk) [Inherent Limitations on the Effectiveness of Controls](index=48&type=section&id=Inherent%20Limitations%20on%20the%20Effectiveness%20of%20Controls) This section acknowledges that control systems provide reasonable, not absolute, assurance and are subject to inherent limitations - Management acknowledges that control systems provide only reasonable, not absolute, assurance and cannot prevent or detect all errors or fraud due to inherent limitations like resource constraints, faulty judgments, individual acts, collusion, or management override[147](index=147&type=chunk)[150](index=150&type=chunk) [Changes in Internal Control Over Financial Reporting](index=50&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section reports on any material changes in internal control over financial reporting during the quarter - No changes in internal control over financial reporting occurred during the quarter ended December 31, 2022, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[151](index=151&type=chunk) [PART II — OTHER INFORMATION](index=50&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) This section provides additional information not covered in the financial statements, including risk factors, equity sales, and exhibits [Item 1A. Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) This section outlines potential risks that could materially impact the company's business and financial performance, particularly those related to the COVID-19 pandemic [COVID-19 Pandemic Impact](index=50&type=section&id=COVID-19%20Pandemic%20Impact) This section discusses the significant risks and uncertainties posed by the COVID-19 pandemic to the company's operations and financial results - The COVID-19 pandemic presents significant risks and uncertainties, potentially reducing transactional article orders or platform subscriptions, which could materially and adversely impact the business and financial performance[152](index=152&type=chunk)[153](index=153&type=chunk) - The severity of the pandemic's future impact is uncertain and depends on its duration, severity, and effects on customers, service providers, and suppliers[154](index=154&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchase program, including authorization, shares repurchased, and remaining authorization [Common Stock Repurchases](index=51&type=section&id=Common%20Stock%20Repurchases) This section provides information on the company's common stock repurchases, including the number of shares and average price - The Compensation Committee authorized repurchases of up to **$400,000** of common stock from employees to satisfy tax obligations related to stock incentive awards, extended through fiscal year 2023[155](index=155&type=chunk) Common Stock Repurchases (Three Months Ended December 31, 2022) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares that May Yet Be Purchased | | :---------------- | :----------------------------- | :--------------------------- | :----------------------------------------------------------- | | Oct 1-31, 2022 | — | — | $237,283 | | November 1-30, 2022 | — | — | $237,283 | | December 1-31, 2022 | 16,141 | $1.90 | $206,616 | | Total | 16,141 | $1.90 | — | - During the three months ended December 31, 2022, **16,141 shares** were repurchased for **$30,667** at an average price of **$1.90 per share**, with **$206,616** remaining under the repurchase authorization as of December 31, 2022[157](index=157&type=chunk)[159](index=159&type=chunk) [Item 6. Exhibits](index=52&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate documents, certifications, and XBRL data files - Exhibits include Articles of Incorporation, Amended and Restated Bylaws, Rule 13a-14(a)/15d-14(a) Certifications of CEO and CFO, Section 1350 Certifications, and various XBRL Taxonomy Extension files[161](index=161&type=chunk) [SIGNATURES](index=53&type=section&id=SIGNATURES) This section contains the official signatures of the registrant's authorized officers, certifying the report's submission - The report was signed by Roy W. Olivier, Chief Executive Officer and President, and William Nurthen, Chief Financial Officer, on February 10, 2023[165](index=165&type=chunk)

Research Solutions, Inc. (NASDAQ:RSSS) Q2 2023 Earnings Conference Call February 9, 2023 5:00 PM ET Company Participants John Beisler - Investor Relations Roy Olivier - President & Chief Executive Officer William Nurthen - Chief Financial Officer Conference Call Participants Richard Baldry - ROTH Capital Allen Klee - Maxim Group Peter Rabover - Artko Capital George Melas - MKH Management Operator Thank you for standing by. This is the conference operator. Welcome to the Research Solutions' Second Quarter 20 ...

Research Solutions, Inc. (NASDAQ:RSSS) Q1 2023 Earnings Conference Call November 10, 2022 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 Group Richard Baldry – ROTH Capital 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 First ...