Research Solutions(RSSS) - 2022 Q2 - Quarterly Report

Revenue Performance - Total revenue for Q2 2021 was $7,872,287, representing an increase from $7,449,735 in Q2 2020, a growth of approximately 5.7% year-over-year[107] - Revenue from Platforms reached $1,604,829 in Q2 2021, up from $1,220,535 in Q2 2020, marking a year-over-year increase of about 31.5%[107] - Revenue from Transactions was $6,267,458 in Q2 2021, slightly higher than $6,229,200 in Q2 2020, indicating a growth of 0.6%[107] - Total revenue for the three months ended December 31, 2021, increased by $422,552, or 5.7%, compared to the prior year, driven by a $384,294 increase in Platforms revenue[111] - Platforms revenue for the six months ended December 31, 2021, was $3,114,703, reflecting a growth of $752,480 or 31.9% year-over-year[113] Profit and Loss - Gross profit for Q2 2021 was $2,837,660, compared to $2,391,582 in Q2 2020, reflecting an increase of approximately 18.6% year-over-year[107] - Total gross profit for the three months ended December 31, 2021, was $2,837,660, an increase of $446,078 or 18.7% compared to the same period in 2020[117] - The net loss for Q2 2021 was $(481,585), compared to a net loss of $(260,606) in Q2 2020, indicating a worsening of approximately 84.7% year-over-year[107] - The net loss for the three months ended December 31, 2021, was $(481,585), which is an increase in loss of $(220,979) or 84.8% compared to the previous year[111] - For the six months ended December 31, 2021, net loss increased by $607,626 or 247% compared to the same period in 2020, totaling $853,587[121] Operating Expenses - Total operating expenses for Q2 2021 were $3,319,509, up from $2,652,587 in Q2 2020, representing an increase of about 25.2%[107] - Total operating expenses for the three months ended December 31, 2021, rose to $3,319,509, an increase of $666,922 or 25.1% year-over-year[111] - Technology and product development expenses increased by $243,489 or 39.0% for the three months ended December 31, 2021, reflecting increased investment in innovation[111] Cash Flow and Financial Position - Cash and cash equivalents as of December 31, 2021, were $10,679,714, a decrease of $324,623 from $11,004,337 as of June 30, 2021, primarily due to cash used in operating activities[123] - Net cash used in operating activities for the six months ended December 31, 2021, was $316,899, resulting from a net loss and a decrease in accounts payable and accrued expenses[124] - The company had no outstanding borrowings under its line of credit as of December 31, 2021, with approximately $1,858,000 of available credit[131] - Total cash used in investing activities for the six months ended December 31, 2021, was $26,991, primarily for the purchase of property and equipment[126] Adjusted EBITDA - Adjusted EBITDA for the three months ended December 31, 2021, was $(165,068), a decrease of $325,582 compared to $160,514 in the same period of 2020[133] - Adjusted EBITDA for the six months ended December 31, 2021, was $(346,327), a decrease of $674,020 from $327,693 in the prior year[134] Foreign Currency Transactions - The company experienced a foreign currency transaction loss of $11,982 for the three months ended December 31, 2021, compared to a gain of $(17,469) in the prior year, marking a significant change of 168.6%[111] - The company reported a foreign currency transaction loss of $11,982 for the three months ended December 31, 2021, compared to a gain of $(17,469) in the prior year, reflecting a change of $29,451[133] Platform Development - The company has over 70 million existing STM articles and publishes over one million new STM articles each year, providing a vast resource for researchers[93] - The platform allows for electronic delivery of articles, typically within one hour, enhancing efficiency for researchers[94] - The company continues to develop new app-like components for its platform to improve research workflows and knowledge creation processes[90] Cost of Revenue - Total cost of revenue for the three months ended December 31, 2021, decreased by $(23,526) or (0.5)%, totaling $5,034,627[114] - Gross profit margin for Platforms increased to 85.6% for the three months ended December 31, 2021, up from 82.2% in the prior year[117] - The total cost of revenue as a percentage of revenue decreased from 67.9% to 64.0% for the three months ended December 31, 2021[114]