Research Solutions, Inc. (NASDAQ:RSSS) Q3 2021 Earnings Conference Call May 13, 2021 5:00 PM ET Company Participants Steven Hooser - Investor Relations Peter Derycz - Executive Chairman Roy Olivier - Interim President and Chief Executive Officer Alan Urban - Chief Financial Officer Conference Call Participants Adam Wilk - Greystone Capital Management Scott Billeadeau - Walrus Partners Operator Thank you for standing by. This is the conference operator. Welcome to the Research Solutions Incorporated Third Fi ...

[PART I — FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) Unaudited condensed consolidated financial statements for the period ended March 31, 2021, show increased total assets to $17.3 million, improved net income for the quarter, and a narrowed net loss for the nine-month period [Note 1: Business Overview](index=11&type=section&id=Note%201.%20Organization%2C%20Nature%20of%20Business%20and%20Basis%20of%20Presentation) Research Solutions operates through two primary service offerings: Platforms, a cloud-based SaaS research intelligence platform, and Transactions, involving the sale and delivery of scientific, technical, and medical content - The company's business is divided into two primary service offerings: Platforms and Transactions[19](index=19&type=chunk) - Platforms consist of a cloud-based SaaS research intelligence platform with features for order management, reporting, and data extraction, sold on an annual subscription basis[20](index=20&type=chunk)[21](index=21&type=chunk) - Transactions involve the on-demand sale and electronic delivery of single articles of STM content to researchers, ensuring copyright compliance[23](index=23&type=chunk)[24](index=24&type=chunk) [Note 5: Stockholders' Equity](index=21&type=section&id=Note%205.%20Stockholders%27%20Equity) This note details changes in stockholders' equity, including activity related to stock options, warrants, and restricted common stock, alongside repurchases - As of March 31, 2021, there were **3,261,203 stock options outstanding** with a weighted average exercise price of **$1.70**[62](index=62&type=chunk) - The company repurchased options for 243,750 shares from a former director for **$213,312.50** and warrants for 100,000 shares for **$95,000** on March 31, 2021[65](index=65&type=chunk)[70](index=70&type=chunk) - During the nine months ended March 31, 2021, the company issued **163,553 shares of restricted stock** and recognized **$281,148 in expense** for vested restricted stock[72](index=72&type=chunk)[73](index=73&type=chunk) - A common stock repurchase program was authorized in February 2021 to satisfy employee tax obligations, with **67,417 shares repurchased for $150,386** during the nine-month period[75](index=75&type=chunk)[76](index=76&type=chunk) [Note 6: Contingencies (COVID-19)](index=27&type=section&id=Note%206.%20Contingencies) The company acknowledges COVID-19 risks, noting no significant negative impact to date, but future effects remain uncertain and difficult to predict - The company is subject to risks from the COVID-19 pandemic, but the extent of the impact is highly uncertain[78](index=78&type=chunk) - To date, the company has not experienced any significant changes in its business that would have a significant negative impact on its financial statements or cash flows[79](index=79&type=chunk) - The future impact of the pandemic on the company's financial condition, liquidity, or results of operations remains uncertain[80](index=80&type=chunk) Condensed Consolidated Balance Sheet Highlights (unaudited) | Account | March 31, 2021 | June 30, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $11,233,562 | $9,311,556 | | Accounts receivable, net | $5,013,089 | $4,449,260 | | Total current assets | $17,307,384 | $14,722,930 | | Total assets | $17,323,427 | $14,812,692 | | **Liabilities & Equity** | | | | Accounts payable and accrued expenses | $7,558,319 | $6,349,845 | | Deferred revenue | $4,601,473 | $3,524,507 | | Total current liabilities | $12,159,792 | $9,953,678 | | Total stockholders' equity | $5,163,635 | $4,859,014 | Condensed Consolidated Statements of Operations Highlights (unaudited) | Metric | Three Months Ended Mar 31, 2021 | Three Months Ended Mar 31, 2020 | Nine Months Ended Mar 31, 2021 | Nine Months Ended Mar 31, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | **$8,340,532** | **$8,047,406** | **$23,538,692** | **$23,172,957** | | Gross profit | $2,702,640 | $2,539,014 | $7,543,798 | $7,129,349 | | Income (loss) from operations | $50,070 | $(11,155) | $(194,020) | $(847,005) | | **Net income (loss)** | **$49,748** | **$11,946** | **$(196,213)** | **$(661,683)** | | Net income (loss) per share (basic) | $0.00 | $0.00 | $(0.01) | $(0.03) | Condensed Consolidated Statements of Cash Flows Highlights (unaudited) | Cash Flow Activity | Nine Months Ended Mar 31, 2021 | Nine Months Ended Mar 31, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,220,056 | $1,304,131 | | Net cash used in investing activities | $(11,853) | $0 | | Net cash provided by (used in) financing activities | $(288,598) | $1,606,463 | | **Net increase in cash and cash equivalents** | **$1,922,006** | **$2,896,170** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports a 3.6% increase in total revenue for Q3 FY2021, driven by Platform growth, improved gross profit, and a strengthened liquidity position [Results of Operations](index=35&type=section&id=Results%20of%20Operations) For Q3 FY2021, total revenue grew 3.6% year-over-year to $8.3 million, with Platform revenue up 32.1%, and the nine-month net loss significantly narrowed Revenue Comparison (YoY) | Revenue Source | Three Months Ended Mar 31, 2021 | % Change | Nine Months Ended Mar 31, 2021 | % Change | | :--- | :--- | :--- | :--- | :--- | | Platforms | $1,344,183 | 32.1% | $3,706,406 | 31.2% | | Transactions | $6,996,349 | (0.5)% | $19,832,286 | (2.5)% | | **Total Revenue** | **$8,340,532** | **3.6%** | **$23,538,692** | **1.6%** | - Platform revenue growth was driven by additional deployments to new and existing customers and expansion from existing customers[107](index=107&type=chunk) - Transaction revenue decreased primarily due to lower order volume[107](index=107&type=chunk) Profitability Comparison (YoY) | Metric | Three Months Ended Mar 31, 2021 | Three Months Ended Mar 31, 2020 | Nine Months Ended Mar 31, 2021 | Nine Months Ended Mar 31, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total Gross Profit** | **$2,702,640** | **$2,539,014** | **$7,543,798** | **$7,129,349** | | Gross Margin | 32.4% | 31.6% | 32.0% | 30.8% | | **Income (Loss) from Operations** | **$50,070** | **$(11,155)** | **$(194,020)** | **$(847,005)** | | **Net Income (Loss)** | **$49,748** | **$11,946** | **$(196,213)** | **$(661,683)** | [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity improved with cash and cash equivalents increasing to $11.2 million, driven by operating cash flow, and maintains an available revolving line of credit - Cash and cash equivalents increased to **$11,233,562** as of March 31, 2021, up from **$9,311,556** at June 30, 2020[121](index=121&type=chunk) - Net cash provided by operating activities for the nine months ended March 31, 2021, was **$2,220,056**, an increase from **$1,304,131** in the prior-year period[120](index=120&type=chunk)[123](index=123&type=chunk) - Net cash used in financing activities was **$288,598**, resulting from stock and warrant repurchases partially offset by proceeds from option and warrant exercises[126](index=126&type=chunk) - The company has a revolving line of credit with no outstanding borrowings and approximately **$1,888,000 of available credit** as of March 31, 2021[129](index=129&type=chunk) [Non-GAAP Measure – Adjusted EBITDA](index=47&type=section&id=Non-GAAP%20Measure%20%E2%80%93%20Adjusted%20EBITDA) Adjusted EBITDA significantly increased to $238,129 for the three months ended March 31, 2021, and improved to $565,822 for the nine-month period Reconciliation of Net Income (Loss) to Adjusted EBITDA | Metric | Three Months Ended Mar 31, 2021 | Three Months Ended Mar 31, 2020 | Nine Months Ended Mar 31, 2021 | Nine Months Ended Mar 31, 2020 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $49,748 | $11,946 | $(196,213) | $(661,683) | | Adjustments | $188,381 | $133,294 | $762,035 | $658,442 | | **Adjusted EBITDA** | **$238,129** | **$145,240** | **$565,822** | **$(3,241)** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not required for smaller reporting companies - No disclosure is required under this item[135](index=135&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal control over financial reporting - Management concluded that as of March 31, 2021, the company's disclosure controls and procedures were effective at a reasonable assurance level[137](index=137&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2021, that have materially affected, or are reasonably likely to materially affect, internal controls[140](index=140&type=chunk) [PART II — OTHER INFORMATION](index=31&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Item 1A. Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) The primary risk factor is the COVID-19 pandemic, which could reduce demand for services, though no significant negative impact has been experienced to date - The company identifies the COVID-19 pandemic as a significant risk factor that could reduce demand for its services[142](index=142&type=chunk) - To date, the company has not experienced any significant negative impact on its consolidated statements of operations or cash flows[143](index=143&type=chunk) - The future extent to which the pandemic may materially impact the company's financial condition, liquidity, or results of operations is uncertain[144](index=144&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) A stock repurchase program of up to $400,000 was authorized in February 2021 to satisfy employee tax obligations, with 10,750 shares repurchased in March - A stock repurchase program of up to **$400,000** was authorized effective February 9, 2021, for employees to cover tax obligations on vesting awards[145](index=145&type=chunk) Common Stock Repurchases (Q3 FY2021) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2021 | — | — | | February 2021 | — | — | | March 2021 | 10,750 | $2.15 | | **Total** | **10,750** | **$2.15** | [Item 6. Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including employment agreements, CEO/CFO certifications, and XBRL data files - Exhibits filed include amended employment agreements for Peter Derycz and Roy W. Olivier, CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, and XBRL interactive data files[153](index=153&type=chunk)

Research Solutions, Inc. (NASDAQ:RSSS) Q2 2021 Earnings Conference Call February 11, 2021 5:00 PM ET Company Participants Steven Hooser - Investor Relations Peter Derycz - President and Chief Executive Officer Alan Urban - Chief Financial Officer Conference Call Participants John Basler - Basler Capital Scott Billeadeau - Walrus Partners George Melas - MKH Management Operator Good afternoon, everyone, and thank you for participating in today's Conference Call to discuss Research Solutions' Financial and Op ...

[PART I — FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section presents Research Solutions, Inc.'s unaudited condensed consolidated financial statements as of December 31, 2020, including balance sheets, statements of operations, cash flows, and related notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Highlights (as of Dec 31, 2020 vs. June 30, 2020) | Metric | Dec 31, 2020 | June 30, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $10,163,504 | $9,311,556 | | Total current assets | $15,362,251 | $14,722,930 | | Total assets | $15,390,653 | $14,812,692 | | Deferred revenue | $4,385,507 | $3,524,507 | | Total current liabilities | $10,196,103 | $9,953,678 | | Total stockholders' equity | $5,194,550 | $4,859,014 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Three Months Ended December 31, 2020 vs 2019 | Metric | Q2 2021 (ended 12/31/20) | Q2 2020 (ended 12/31/19) | Change | | :--- | :--- | :--- | :--- | | Platform Revenue | $1,220,535 | $949,825 | +28.5% | | Transactions Revenue | $6,229,200 | $6,580,613 | -5.3% | | **Total Revenue** | **$7,449,735** | **$7,530,438** | **-1.1%** | | Gross Profit | $2,391,582 | $2,273,800 | +5.2% | | Loss from Operations | ($261,005) | ($709,147) | +63.2% | | **Net Loss** | **($260,606)** | **($592,172)** | **+56.0%** | | Net Loss Per Share | ($0.01) | ($0.03) | N/A | Six Months Ended December 31, 2020 vs 2019 | Metric | H1 2021 (ended 12/31/20) | H1 2020 (ended 12/31/19) | Change | | :--- | :--- | :--- | :--- | | Platform Revenue | $2,362,223 | $1,806,270 | +30.8% | | Transactions Revenue | $12,835,937 | $13,319,281 | -3.6% | | **Total Revenue** | **$15,198,160** | **$15,125,551** | **+0.5%** | | Gross Profit | $4,841,158 | $4,590,335 | +5.5% | | Loss from Operations | ($244,090) | ($835,850) | +70.8% | | **Net Loss** | **($245,961)** | **($673,629)** | **+63.5%** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (Six Months Ended Dec 31) | Cash Flow Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $884,478 | $1,617,651 | | Net cash used in investing activities | ($6,134) | $0 | | Net cash used in financing activities | ($31,923) | ($199,374) | | **Net increase in cash** | **$851,948** | **$1,416,038** | | **Cash at end of period** | **$10,163,504** | **$6,769,128** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company provides two main service offerings: annual licenses for its SaaS research intelligence platform (**"Platforms"**) and transactional sales of scientific, technical, and medical (STM) content (**"Transactions"**)[21](index=21&type=chunk) - **Platform revenue** from subscription fees is recognized ratably over the subscription term (typically one year), while **Transaction revenue** from single article delivery is recognized upon delivery to the customer[38](index=38&type=chunk)[39](index=39&type=chunk) - The company has a revolving line of credit for the lesser of **$2.5 million** or 80% of eligible accounts receivable, maturing in February 2022. As of December 31, 2020, there were no outstanding borrowings and approximately **$1.72 million** was available[54](index=54&type=chunk)[55](index=55&type=chunk) - During the six months ended December 31, 2020, the company repurchased **56,667 shares** of common stock from employees for an aggregate amount of **$127,274** to cover tax withholding obligations related to vesting of restricted stock[76](index=76&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results for the three and six months ended December 31, 2020, highlighting strong Platform segment growth, a slight Transactions segment decline, improved gross profit, reduced operating expenses, and a significant narrowing of net loss, alongside liquidity, capital resources, and Adjusted EBITDA reconciliation [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Revenue Analysis (Three Months Ended Dec 31, 2020 vs 2019) | Category | 2020 | 2019 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Platforms | $1,220,535 | $949,825 | $270,710 | 28.5% | | Transactions | $6,229,200 | $6,580,613 | ($351,413) | -5.3% | | **Total Revenue** | **$7,449,735** | **$7,530,438** | **($80,703)** | **-1.1%** | - For the three months ended Dec 31, 2020, Platform revenue grew **28.5%** due to new and existing customer deployments, while Transaction revenue decreased **5.3%** due to lower order volume[109](index=109&type=chunk) - Total operating expenses for the quarter decreased by **11.1%** YoY to **$2.65 million**, driven primarily by lower sales and marketing spend (**-23.7%**) and general and administrative costs (**-11.9%**)[107](index=107&type=chunk)[115](index=115&type=chunk) - For the six months ended Dec 31, 2020, total revenue increased **0.5%** YoY, driven by a **30.8%** increase in Platform revenue, which offset a **3.6%** decrease in Transaction revenue[108](index=108&type=chunk)[110](index=110&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) - As of December 31, 2020, the company had cash and cash equivalents of **$10.2 million**, an increase of **$0.85 million** from June 30, 2020, primarily due to cash provided by operating activities[120](index=120&type=chunk) - Net cash provided by operating activities was **$884,478** for the six months ended December 31, 2020, mainly resulting from an increase in deferred revenue and a decrease in accounts receivable, partially offset by a decrease in accounts payable[121](index=121&type=chunk) - Net cash used in financing activities was **$31,923** for the six-month period, resulting from common stock repurchases of **$127,274**, partially offset by proceeds from the exercise of warrants of **$81,251**[126](index=126&type=chunk) [Non-GAAP Measure – Adjusted EBITDA](index=34&type=section&id=Non-GAAP%20Measure%20%E2%80%93%20Adjusted%20EBITDA) Reconciliation of Net Loss to Adjusted EBITDA | Period | Net Loss | Adjusted EBITDA | Change in Adj. EBITDA | | :--- | :--- | :--- | :--- | | **Three Months Ended Dec 31, 2020** | ($260,606) | $160,514 | +$344,645 | | **Three Months Ended Dec 31, 2019** | ($592,172) | ($184,131) | N/A | | **Six Months Ended Dec 31, 2020** | ($245,961) | $327,693 | +$476,174 | | **Six Months Ended Dec 31, 2019** | ($673,629) | ($148,481) | N/A | - The company uses **Adjusted EBITDA**, a non-GAAP measure, to supplement its performance analysis. Adjusted EBITDA is defined as net income (loss) adjusted for interest, taxes, depreciation, amortization, stock-based compensation, and other specific items[129](index=129&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company, as a smaller reporting entity, is not required to provide disclosures in this section - Disclosure is not required for the registrant[133](index=133&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded the company's disclosure controls and procedures were effective as of December 31, 2020, with no material changes to internal control over financial reporting during the quarter - Based on their evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2020[135](index=135&type=chunk) - No changes in internal control over financial reporting that materially affected, or are reasonably likely to materially affect, such controls were identified during the quarter ended December 31, 2020[138](index=138&type=chunk) [PART II — OTHER INFORMATION](index=36&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) This section addresses the potential adverse impact of the COVID-19 pandemic on the company's business, acknowledging the risk of reduced customer demand for transactional articles and platform subscriptions despite no significant negative effects observed to date - The company identifies the COVID-19 pandemic as a **significant risk factor**, with potential to reduce orders from transactional customers or decrease platform subscriptions, which could materially impact business and financial performance[139](index=139&type=chunk) - To date, the company has not experienced any significant changes in its business that would have a significant negative impact on its financial statements or cash flows due to the pandemic[141](index=141&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company's stock repurchase program, authorized to satisfy employee tax obligations from vesting stock awards, resulted in the repurchase of **31,167 shares** for **$68,879** during the three months ended December 31, 2020, before its expiration at year-end - A stock repurchase program was authorized in February 2020 for up to **$400,000** of common stock to satisfy employee tax obligations from vesting stock awards[143](index=143&type=chunk) Stock Repurchases (Q2 2021) | Period | Total Shares Purchased | Average Price Paid per Share | Aggregate Amount | | :--- | :--- | :--- | :--- | | **Three Months Ended Dec 31, 2020** | 31,167 | ~$2.21 | $68,879 | [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section indexes all exhibits filed with the Form 10-Q report, including CEO and CFO certifications and interactive data files in XBRL format - The report includes certifications from the Chief Executive Officer and Chief Financial Officer under Rule 13a-14(a)/15d-14(a) and Section 1350[148](index=148&type=chunk) - **Interactive Data Files (XBRL documents)** are also included as exhibits[148](index=148&type=chunk)

Research Solutions, Inc. (NASDAQ:RSSS) Q1 2021 Earnings Conference Call November 12, 2020 5:00 PM ET Company Participants Steven Hooser – Investor Relations Peter Derycz – President and Chief Executive Officer Alan Urban – Chief Financial Officer Conference Call Participants George Melas – MKH Management Peter Rabover – Artko 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 First Fisca ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2020 Securities registered pursuant to Section 12(b) of the Act: | Title of each Class | Trading Symbol(s) | Name of each Exchange on which registered | | --- | --- | --- | | Common stock, $0.001 par value | RSSS | The NASDAQ Stock Market LLC | ¨ TRANSITION REPORT PURSUANT TO SECTIO ...

Financial Data and Key Metrics Changes - For Q4 2020, total revenue was $7.9 million, a 5.5% increase from Q4 2019 [11] - Full-year revenue increased 7.9% to $31.1 million compared to $28.8 million in fiscal 2019 [15] - Net loss improved to $1,000 or nil on a per share basis, compared to a loss of $71,000 in the previous year [15] - Adjusted EBITDA improved to $146,000 compared to negative $41,000 in the year-ago quarter [15] Business Line Data and Key Metrics Changes - Platform subscription revenue increased 33% to approximately $1.1 million in Q4 2020, driven by a net increase of Platform deployments [11] - Full-year Platform subscription revenue increased 38% year-over-year to $3.9 million [15] - Transaction revenue increased 2% to $6.8 million in Q4 2020, with transaction count rising from approximately 215,000 to 231,000 year-over-year [12] Market Data and Key Metrics Changes - Total active customers were 1,087, essentially even with 1,090 active customers in Q4 2019 [12] - Total platform deployments as of June 30 were 401, a net increase of 100 deployments or 33% from a year ago [15] Company Strategy and Development Direction - The company aims to continue building on the momentum from the previous year, focusing on expanding market reach to small and medium-sized businesses [22] - Selling the Article Galaxy platform remains a top priority, with a focus on increasing platform pricing upon contract renewal [23] - The company is committed to product development and has hired a new Chief Product Officer to enhance customer-centric product innovation [24] Management's Comments on Operating Environment and Future Outlook - Management noted that operations have been largely unaffected by COVID-19, allowing the company to focus on key initiatives [9] - The company remains optimistic about demand trends moving forward, with additional product improvements and partnership opportunities [27] - Management expressed confidence in the ability to adapt to changes in the operating environment due to the pandemic [22] Other Important Information - The company successfully uplisted to the NASDAQ on March 23, increasing market visibility and liquidity [8] - Cash and cash equivalents increased to $9.3 million as of June 30, 2020, compared to $5.4 million a year earlier [20] Q&A Session Summary Question: How direct is the correlation between marketing spend and results? - Management indicated optimism regarding improvements in customer acquisition costs and sales pipelines, though precise metrics were not available [29][31] Question: What are the reasons for not winning some accounts? - The primary objection noted was the unavailability of budget at the time of contact, rather than issues with pricing or functionality [32][34] Question: Can you provide insights on the current quarter's performance? - Management stated that positive trends are continuing, with eagerness to release specific guidance in the upcoming quarter [35] Question: Who are the main competitors? - Management identified a "Do It Yourself" approach as a significant competitor, alongside other software tools and internally built solutions [39][40] Question: Can you quantify the benefits from COVID-19? - Management noted significant disruption in customer organizations due to COVID-19, leading to increased relevance of cloud-based solutions [41][42]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT For the fiscal year ended: June 30, 2020 ¨ 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. 000-53501 RESEARCH SOLUTIONS, INC. (Exact name of registrant as specified in its charter) Nevada 11-3797644 (State or other ju ...

Financial Data and Key Metrics Changes - Platform subscription revenue increased by 36% to $1 million, driven by a 33% year-over-year increase in total platform deployments from 281 to 374 [14] - Annual recurring revenue reached $4.1 million, up 12% sequentially and 39% year-over-year, reflecting consistent upselling and low churn [15] - Transaction revenue increased by 6% to $7 million, with transaction count rising from approximately 212,000 to 228,000 [16] - Consolidated revenue grew by 9% to $8 million compared to $7.4 million in the same year-ago quarter [16] - Gross margin for the platform business increased by 50 basis points to 82.5%, while consolidated gross margin rose by 210 basis points to 31.6% [17][18] Business Line Data and Key Metrics Changes - The number of corporate customers increased by 1% to 845, while academic customers grew by 11% to 270 [16] - The platform business is expected to continue improving as it becomes a higher percentage of revenue, contributing to overall gross margin enhancement [18] Market Data and Key Metrics Changes - The company has successfully transitioned to a virtual operating model, which has allowed it to maintain operations without interruption during the COVID-19 pandemic [10][11] - The company has not experienced any disruption to its business or lost clients due to the pandemic, with R&D efforts in the life sciences industry expanding [31] Company Strategy and Development Direction - The company is focused on enhancing its platform's value to the scientific and medical community, particularly during the pandemic [12] - A new partnership with Springer Nature was announced, launching Article Galaxy Plus, which provides access to 35% of the world's scientific literature [23] - The company aims to democratize access to scientific literature for small and medium-sized businesses, traditionally only available to larger organizations [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the challenges posed by the COVID-19 pandemic, citing a strong cash position and zero debt [38] - The company remains vigilant and optimistic about demand trends moving forward, with continued momentum into the fourth fiscal quarter [38] Other Important Information - The company received approvals for its up listing to NASDAQ and began trading in late March, which is expected to enhance liquidity and market awareness [6] - A new billing policy for copyright-free COVID-19 articles has been implemented to ensure customers are not charged for articles that should be free [36] Q&A Session Summary Question: Update on partnerships with Springer and Evidence Partners - The partnership with Evidence Partners is progressing well, with technical integration set to launch [41] - The integration will allow customers to use both platforms seamlessly, enhancing upsell opportunities [42] Question: Economics of Article Galaxy Plus - The pricing for Article Galaxy Plus is designed to provide a net boost, with no sacrifice in revenue [44] Question: SG&A capability to support growth - The company believes it has sufficient SG&A capability to support growth, with potential resource shifts to focus on sales and marketing [46] Question: Capital allocation strategy - The company aims to maintain a strong balance sheet while being opportunistic in product improvements and partnerships [51] Question: Industry recognition and brand awareness - The company aspires to be a recognized leader in the life sciences industry, similar to Bloomberg, and is focused on expanding brand awareness [53]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2020 ¨ 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. 000-53501 RESEARCH SOLUTIONS, INC. Indicate by check mark whether the registrant has submitted electronically ...