One Stop Systems Reports Q2 2026 Results
Rhea-AI Summary
One Stop Systems (Nasdaq: OSS) reported Q2 2026 revenue from continuing operations of $9.3 million, up 62.3% year-over-year, with gross margin of 39.1%. Quarterly bookings reached a record $15.1 million, resulting in a book-to-bill ratio of 1.6x in Q2 and 1.7x year-to-date.
The company recorded a $6.25 million legal settlement charge tied to a legacy commercial dispute, driving operating expenses to $11.3 million and a GAAP loss from continuing operations of $7.3 million ($0.29 per share). Excluding the settlement, operating expenses rose 2.9% to $5.1 million. Non-GAAP net loss from continuing operations was $0.2 million, with adjusted EBITDA loss improving to $0.3 million.
For the first half of 2026, revenue grew 58.8% to $17.4 million, with gross margin of 44.9% and non-GAAP net income of $0.1 million. OSS ended June 30, 2026 with $31.4 million in cash, cash equivalents and short-term investments and $38.1 million of working capital. The company raised full-year 2026 revenue growth guidance to 25%-30%, targeting gross margin of ~40% and positive EBITDA and adjusted EBITDA.
Positive
- Q2 2026 revenue up 62.3% year-over-year to $9.3 million
- Record Q2 2026 bookings of $15.1 million; book-to-bill 1.6x
- H1 2026 revenue up 58.8% year-over-year to $17.4 million
- Full-year 2026 revenue growth guidance raised to 25%–30%
- H1 2026 non-GAAP net income from continuing ops of $0.1 million
- Adjusted EBITDA loss improved to $0.3 million in Q2 from $1.8 million
- Cash, equivalents and short-term investments of $31.4 million at June 30, 2026
- Operating cash use reduced to $0.6 million in H1 2026 from $2.8 million
Negative
- Q2 2026 GAAP loss from continuing operations of $7.3 million
- H1 2026 GAAP loss from continuing operations of $7.7 million
- $6.25 million legal settlement charge recorded in Q2 2026
- Q2 2026 gross margin declined to 39.1% from 41.3%
- Working capital decreased to $38.1 million from $45.3 million at year-end 2025
- H1 2026 loss from discontinued operations of $0.2 million
News Explained
OSS’s discontinued-operations line reflects the completed
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 06 | Q1 earnings | Positive | +56.9% | Revenue growth accelerated; non-GAAP income and positive cash flow supported the quarter. |
| Mar 18 | Q4 earnings | Positive | +5.1% | Revenue growth and record gross margin accompanied continuing-operations net income. |
| Nov 05 | Q3 earnings | Positive | +22.0% | Revenue growth, improved margin, and raised full-year guidance accompanied positive EBITDA. |
| Aug 07 | Q2 earnings | Positive | +0.6% | Gross-margin improvement and maintained guidance contrasted with a quarterly net loss. |
| May 07 | Q1 earnings | Negative | -7.0% | Revenue declined and net loss widened despite improved gross margin and maintained guidance. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-matched earnings events had positive 24-hour reactions in four of five cases; the remaining event was negative.
Key Terms
book-to-bill ratio financial
adjusted ebitda financial
non-gaap financial
discontinued operations financial
c5isr technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second quarter of 2026 revenue increased
Second-quarter bookings reached
Company raises full year 2026 revenue growth guidance to
ESCONDIDO, Calif., Aug. 05, 2026 (GLOBE NEWSWIRE) -- One Stop Systems, Inc. ("OSS" or the "Company") (Nasdaq: OSS), a leader in rugged Enterprise Class compute for artificial intelligence (AI), machine learning (ML), autonomy and sensor processing at the edge, reported results for the second quarter ended June 30, 2026. Second-quarter and six-month comparisons are to the same year-ago periods unless otherwise noted. On December 30, 2025, the Company closed a definitive agreement to sell all assets and operations of Bressner Technology GmbH. All operations, assets, and liabilities associated with the sale of Bressner have been classified as discontinued operations.
“OSS delivered another quarter of strong year-over-year revenue growth, which accelerated to
“Our momentum also reflects a growing portion of revenue and bookings generated across an increasingly diverse range of defense and commercial customers. This includes mission-critical defense applications across C5ISR, sensor fusion, and autonomy programs serving both defense and commercial markets, and niche data center, robotics and medical applications. Many of these opportunities originated as development initiatives over the past several years and are now increasingly transitioning into larger scale, multi-year production orders. We believe this broadening activity demonstrates that OSS is gaining market share and becoming an increasingly important technology partner for organizations that require enterprise-class compute in demanding and rugged environments,” continued, Mr. Knowles.
“Given our strong start to the year, continued bookings momentum and expanding program activity, we are increasing our full-year revenue guidance. Overall, we believe OSS is well positioned to deliver sustained growth and create meaningful long-term shareholder value for years to come,” concluded Mr. Knowles.
2026 Second-Quarter Financial Summary
Total revenue from continuing operations increased
Gross margin from continuing operations was
During the second quarter of 2026, OSS recorded a
Total operating expenses from continuing operations increased
The Company reported a loss from continuing operations of
Adjusted EBITDA loss, from continuing operations, a non-GAAP metric, was
Net cash used in continuing operations for the six months ended June 30, 2026, was
As of June 30, 2026, the Company reported cash, cash equivalents, and short-term investments of
2026 First-Half Financial Summary
Total revenue from continuing operations increased
Gross margin from continuing operations was
Total operating expenses increased
OSS reported a loss from continuing operations of
Adjusted EBITDA loss, from continuing operations, a non-GAAP metric, was a loss of
Income from Discontinued Operations, net of Income Taxes
Income from discontinued operations consists of income from the Company’s Bressner Technologies subsidiary, which was sold on December 30, 2025. Income from discontinued operations also includes the gain recognized on the sale.
The Company recorded no income or loss from discontinued operations, net of income taxes, for the three months ended June 30, 2026, compared to income of
2026 Full Year Outlook
The Company is executing a strategic plan targeting both commercial and defense markets, aiming to provide integrated solutions and establish OSS as a platform incumbent on large, multi-year programs. This approach is expected to drive long-term value by increasing predictable, recurring revenue and building a strong, multi-year backlog.
Based on its current performance and business outlook, OSS is increasing its full-year 2026 revenue growth guidance. The Company’s expectations for 2026 reflect expected continued growth across its core defense and commercial markets and expected higher customer-funded development revenue compared with 2025. The Company also continues to monitor potential supply chain constraints affecting certain components, including memory, and the current outlook for the federal government budget. Changes in these assumptions could positively or negatively affect OSS’s 2026 results.
For the full year of 2026, OSS expects:
- Revenue growth of
25% to30% , compared to prior guidance of20% to25% - Gross margin of approximately
40% - Positive EBITDA and adjusted EBITDA, inclusive of planned strategic investments in personnel and research and development to support continued growth and technology leadership
Conference Call
OSS will hold a conference call to discuss its results for the second quarter of 2026, followed by a question-and-answer period.
Date: Wednesday, August 5, 2026
Time: 10:00 a.m. ET (7:00 a.m. PT)
Toll-free dial-in: 1-800-717-1738
International dial-in: 1-646-307-1865
Conference ID: 22300 (required for entry)
Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1764322&tp_key=470bf5a9b7
A replay of the call will be available after 1:00 p.m. ET on August 5, 2026, through August 19, 2026.
Toll-free replay: 1-844-512-2921
International replay: 1-412-317-6671
Passcode: 1122300
About One Stop Systems
One Stop Systems, Inc. (Nasdaq: OSS) is a leader in AI enabled solutions for the demanding ‘edge.’ OSS designs and manufactures Enterprise Class compute and storage products that enable rugged AI, sensor fusion and autonomous capabilities without compromise. These hardware and software platforms bring the latest data center performance to harsh and challenging applications, whether they are on land, sea or in the air.
OSS products include ruggedized servers, compute accelerators, flash storage arrays, and storage acceleration software. These specialized compact products are used across multiple industries and applications, including autonomous trucking and farming, as well as aircraft, drones, ships and vehicles within the defense industry.
OSS solutions address the entire AI workflow, from high-speed data acquisition to deep learning, training and large-scale inference, and have delivered many industry firsts for industrial OEM and government customers.
As one of the fastest growing segments of the multi-billion-dollar edge computing market, AI enabled solutions require—and OSS delivers—the highest level of performance in the most challenging environments without compromise.
OSS products are available directly or through global distributors. For more information, go to www.onestopsystems.com. You can also follow OSS on X, YouTube, and LinkedIn.
Non-GAAP Financial Measures
We believe that the use of adjusted earnings before interest, taxes, depreciation and amortization, or adjusted EBITDA, is helpful for an investor to assess the performance of the Company. The Company defines adjusted EBITDA as income (loss) before interest, taxes, depreciation, amortization, acquisition expense, impairment of long-lived assets, financing costs, government funded programs, fair value adjustments from purchase accounting, stock-based compensation expense, and expenses related to discontinued operations. Adjusted EBITDA also excludes the impact of the legal settlement agreement.
Adjusted EBITDA is not a measurement of financial performance under generally accepted accounting principles in the United States, or GAAP. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash operating expenses, we believe that providing a non-GAAP financial measure that excludes non-cash and non-recurring expenses allows for meaningful comparisons between our core business operating results and those of other companies, as well as providing us with an important tool for financial and operational decision making and for evaluating our own core business operating results over different periods of time.
Our adjusted EBITDA measure may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently, particularly related to non-recurring and unusual items. Our adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to operating income or as an indication of operating performance or any other measure of performance derived in accordance with GAAP. We do not consider adjusted EBITDA to be a substitute for, or superior to, the information provided by GAAP financial results.
| EBITDA from Continuing Operations | |||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Loss from continuing operations | $ | (7,319,659 | ) | $ | (2,474,151 | ) | $ | (7,682,247 | ) | $ | (4,753,545 | ) | |||
| Legal settlement | 6,250,000 | - | 6,250,000 | - | |||||||||||
| Depreciation | 182,465 | 195,657 | 366,616 | 390,437 | |||||||||||
| Amortization of right-of-use assets net of change in operating lease liability | (4,946 | ) | (2,033 | ) | (10,153 | ) | (4,065 | ) | |||||||
| Stock-based compensation expense | 861,213 | 483,350 | 1,516,341 | 1,061,755 | |||||||||||
| Interest income | (314,690 | ) | (50,296 | ) | (610,828 | ) | (123,362 | ) | |||||||
| Adjusted EBITDA | $ | (345,617 | ) | $ | (1,847,473 | ) | $ | (170,271 | ) | $ | (3,428,780 | ) | |||
| EBITDA from Discontinued Operations | |||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Income (loss) from discontinued operations, net of income taxes | $ | - | $ | 453,421 | $ | (157,274 | ) | $ | 715,181 | ||||||
| Post-closing adjustments to gain on sale | - | - | 157,274 | - | |||||||||||
| Depreciation | - | 31,504 | - | 60,572 | |||||||||||
| Amortization of right-of-use assets net of change in operating lease liability | - | 53,909 | 53,909 | ||||||||||||
| Stock-based compensation expense | - | 32,424 | - | 66,580 | |||||||||||
| Interest expense | - | 13,690 | - | 27,876 | |||||||||||
| Interest income | - | - | - | 555 | |||||||||||
| Provision for income taxes | - | 224,188 | - | 333,654 | |||||||||||
| Adjusted EBITDA | $ | - | $ | 809,137 | $ | - | $ | 1,258,327 | |||||||
| Consolidated EBITDA | |||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net loss | $ | (7,319,659 | ) | $ | (2,020,730 | ) | $ | (7,839,521 | ) | $ | (4,038,364 | ) | |||
| Legal settlement | 6,250,000 | - | 6,250,000 | - | |||||||||||
| Post-closing adjustments to gain on sale | - | - | 157,274 | - | |||||||||||
| Depreciation | 182,465 | 227,161 | 366,616 | 451,009 | |||||||||||
| Amortization of right-of-use assets net of change in operating lease liability | (4,946 | ) | 51,876 | (10,153 | ) | 49,844 | |||||||||
| Stock-based compensation expense | 861,213 | 515,774 | 1,516,341 | 1,128,335 | |||||||||||
| Interest expense | - | 13,690 | - | 27,876 | |||||||||||
| Interest income | (314,690 | ) | (50,296 | ) | (610,828 | ) | (122,807 | ) | |||||||
| Provision for income taxes | - | 224,188 | - | 333,654 | |||||||||||
| Adjusted EBITDA | $ | (345,617 | ) | $ | (1,038,336 | ) | $ | (170,271 | ) | $ | (2,170,453 | ) | |||
(Dollars may not calculate due to rounding)
Adjusted EPS excludes the impact of certain items and, therefore, has not been calculated in accordance with GAAP. We believe that exclusion of certain selected items assists in providing a more complete understanding of our underlying results and trends and allows for comparability with our peer company index and industry. We use this measure along with the corresponding GAAP financial measures to manage our business and to evaluate our performance compared to prior periods and the marketplace. The Company defines non-GAAP income (loss) as income or (loss) before amortization, government funded programs, impairment of long lived assets, stock-based compensation, expenses related to discontinued operations, and acquisition costs. Non-GAAP income (loss) also excludes the impact of the legal settlement agreement. Adjusted EPS expresses adjusted income (loss) on a per share basis using weighted average diluted shares outstanding.
Adjusted EPS is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. These non-GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies. We expect to continue to incur expenses similar to the adjusted income from continuing operations and adjusted EPS financial adjustments described above, and investors should not infer from our presentation of these non-GAAP financial measures that these costs are unusual, infrequent or non-recurring.
The following table reconciles non-GAAP net income and basic and diluted earnings per share:
| Non- GAAP Adjusted EPS from Continuing Operations | |||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Loss from continuing operations | $ | (7,319,659 | ) | $ | (2,474,151 | ) | $ | (7,682,247 | ) | $ | (4,753,545 | ) | |||
| Legal settlement | 6,250,000 | - | 6,250,000 | - | |||||||||||
| Stock-based compensation expense | 861,213 | 483,350 | 1,516,341 | 1,061,755 | |||||||||||
| Non-GAAP net (loss) income from continuing operations | $ | (208,446 | ) | $ | (1,990,801 | ) | $ | 84,094 | $ | (3,691,790 | ) | ||||
| Non-GAAP net (loss) income from continuing operations per share: | |||||||||||||||
| Basic | $ | (0.01 | ) | $ | (0.09 | ) | $ | 0.00 | $ | (0.17 | ) | ||||
| Diluted | $ | (0.01 | ) | $ | (0.09 | ) | $ | 0.00 | $ | (0.17 | ) | ||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 24,841,334 | 21,687,808 | 24,761,553 | 21,534,925 | |||||||||||
| Diluted | 24,841,334 | 21,687,808 | 25,920,480 | 21,534,925 | |||||||||||
| Non- GAAP Adjusted EPS from Discontinued Operations | |||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Income (loss) from discontinued operations, net of income taxes | $ | - | $ | 453,421 | $ | (157,274 | ) | $ | 715,181 | ||||||
| Post-closing adjustments to gain on sale | - | - | 157,274 | - | |||||||||||
| Stock-based compensation expense | - | 32,424 | - | 66,580 | |||||||||||
| Non-GAAP net income from discontinued operations | $ | - | $ | 485,845 | $ | - | $ | 781,761 | |||||||
| Non-GAAP net income from discontinued operations per share: | |||||||||||||||
| Basic | $ | - | $ | 0.02 | $ | - | $ | 0.04 | |||||||
| Diluted | $ | - | $ | 0.02 | $ | - | $ | 0.04 | |||||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 24,841,334 | 21,687,808 | 24,761,553 | 21,534,925 | |||||||||||
| Diluted | 25,999,867 | 21,951,955 | 25,920,480 | 22,022,039 | |||||||||||
| Consolidated Non-GAAP Adjusted EPS | |||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net loss | $ | (7,319,659 | ) | $ | (2,020,730 | ) | $ | (7,839,521 | ) | $ | (4,038,364 | ) | |||
| Legal settlement | 6,250,000 | - | 6,250,000 | - | |||||||||||
| Post-closing adjustments to gain on sale | - | - | 157,274 | - | |||||||||||
| Stock-based compensation expense | 861,213 | 515,774 | 1,516,341 | 1,128,335 | |||||||||||
| Non-GAAP net (loss) income | $ | (208,446 | ) | $ | (1,504,956 | ) | $ | 84,094 | $ | (2,910,029 | ) | ||||
| Non-GAAP net (loss) income per share: | |||||||||||||||
| Basic | $ | (0.01 | ) | $ | (0.07 | ) | $ | 0.00 | $ | (0.14 | ) | ||||
| Diluted | $ | (0.01 | ) | $ | (0.07 | ) | $ | 0.00 | $ | (0.14 | ) | ||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 24,841,334 | 21,687,808 | 24,761,553 | 21,534,925 | |||||||||||
| Diluted | 24,841,334 | 21,687,808 | 25,920,480 | 21,534,925 | |||||||||||
(Dollars may not calculate due to rounding)
Forward-Looking Statements
One Stop Systems cautions you that statements in this press release that are not a description of historical facts are forward-looking statements. Words such as, but not limited to, "anticipate," "aim," "believe," "contemplate," "continue," "could," "design," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "seek," "should," "suggest," "strategy," "target," "will," "would," and similar expressions or phrases, or the negative of those expressions or phrases, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements include but are not limited to statements in this press release relating to the Company’s expected financial performance and outlook for 2026, including anticipated revenue growth, market share, gross margin and EBITDA expectations and shareholder value; anticipated demand trends across defense and commercial markets and technology leadership; expected customer-funded development activity; and the Company’s ability to execute its strategic plan and secure positions on large, multi-year programs. The inclusion of forward-looking statements should not be regarded as a representation by One Stop Systems or its partners that any of its plans or expectations will be achieved, including but not limited to expected increases in sales, revenues and profitability, non-GAAP financial measures, our multi-year strategy, expected market growth, continued or new demand for our products, increase in margins, and operating expenses. These statements are based on the Company's current beliefs and expectations. Actual results may differ from those set forth in this press release due to the risk and uncertainties inherent in our business, including risks described in our prior press releases and in our filings with the Securities and Exchange Commission (SEC), including under the heading "Risk Factors" in our latest Annual Report on Form 10-K and any subsequent filings with the SEC, as well as those relating to current geopolitical conditions, defense spending changes, the Company’s ability to successfully scale production, manage program execution, and meet customer delivery schedules, semiconductor supply constraints, and customer concentration. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Media Contacts:
Robert Kalebaugh
One Stop Systems, Inc.
Tel (858) 518-6154
Email contact
Investor Relations:
Andrew Berger
Managing Director
SM Berger & Company, Inc.
Tel (216) 464-6400
Email contact
| ONE STOP SYSTEMS, INC. (OSS) CONSOLIDATED BALANCE SHEETS | |||||||
| Unaudited | Audited | ||||||
| June 30, | December 31, | ||||||
| 2026 | 2025 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 17,279,139 | $ | 31,174,880 | |||
| Restricted cash | - | 2,200,096 | |||||
| Short-term investments | 14,128,617 | - | |||||
| Accounts receivable, net | 8,343,042 | 11,549,718 | |||||
| Inventories, net | 13,864,197 | 5,420,439 | |||||
| Prepaid expenses and other current assets | 557,124 | 472,884 | |||||
| Total current assets | 54,172,119 | 50,818,017 | |||||
| Property and equipment, net | 427,145 | 674,654 | |||||
| Operating lease right-of-use assets | 1,125,198 | 1,216,871 | |||||
| Deposits and other | 35,073 | 38,093 | |||||
| Intangible assets, net | 80,195 | 73,908 | |||||
| Total assets | $ | 55,839,730 | $ | 52,821,543 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 6,175,505 | $ | 1,716,389 | |||
| Accrued expenses and other current liabilities | 9,669,622 | 3,630,130 | |||||
| Current portion of operating lease liabilities | 244,859 | 219,097 | |||||
| Total current liabilities | 16,089,986 | 5,565,616 | |||||
| Operating lease liabilities, net of current portion | 1,122,275 | 1,249,862 | |||||
| Total liabilities | 17,212,261 | 6,815,478 | |||||
| Commitments and contingencies | - | - | |||||
| Stockholders’ equity | |||||||
| Common stock, 24,940,130 and 24,583,775 shares issued and outstanding | 2,494 | 2,458 | |||||
| Additional paid-in capital | 63,476,602 | 62,968,973 | |||||
| Accumulated other comprehensive loss | (46,739 | ) | - | ||||
| Accumulated deficit | (24,804,888 | ) | (16,965,367 | ) | |||
| Total stockholders’ equity | 38,627,469 | 46,006,064 | |||||
| Total liabilities and stockholders' equity | $ | 55,839,730 | $ | 52,821,543 | |||
| ONE STOP SYSTEMS, INC. (OSS) UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars may not calculate due to rounding) | |||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenue: | |||||||||||||||
| Product | $ | 8,405,014 | $ | 5,375,709 | $ | 15,469,262 | $ | 10,172,145 | |||||||
| Customer funded development | 943,537 | 385,002 | 1,948,900 | 795,376 | |||||||||||
| 9,348,551 | 5,760,711 | 17,418,162 | 10,967,521 | ||||||||||||
| Cost of revenue: | |||||||||||||||
| Product | 4,994,499 | 3,127,961 | 8,630,081 | 5,615,780 | |||||||||||
| Customer funded development | 703,014 | 250,879 | 969,484 | 600,661 | |||||||||||
| 5,697,513 | 3,378,840 | 9,599,565 | 6,216,441 | ||||||||||||
| Gross profit | 3,651,038 | 2,381,871 | 7,818,597 | 4,751,080 | |||||||||||
| Operating expenses: | |||||||||||||||
| General and administrative | 2,453,864 | 1,907,425 | 4,898,609 | 3,815,809 | |||||||||||
| Legal settlement | 6,250,000 | - | 6,250,000 | - | |||||||||||
| Marketing and selling | 1,765,955 | 1,658,753 | 3,342,917 | 3,265,629 | |||||||||||
| Research and development | 853,100 | 1,362,070 | 1,670,139 | 2,567,212 | |||||||||||
| Total operating expenses | 11,322,919 | 4,928,248 | 16,161,665 | 9,648,650 | |||||||||||
| Loss from operations | (7,671,881 | ) | (2,546,377 | ) | (8,343,068 | ) | (4,897,570 | ) | |||||||
| Other income (expense), net: | |||||||||||||||
| Interest income | 314,690 | 50,296 | 610,828 | 123,362 | |||||||||||
| Other income, net | 37,532 | 21,930 | 49,993 | 20,663 | |||||||||||
| Total other income, net | 352,222 | 72,226 | 660,821 | 144,025 | |||||||||||
| Loss before income taxes | (7,319,659 | ) | (2,474,151 | ) | (7,682,247 | ) | (4,753,545 | ) | |||||||
| Provision for income taxes | - | - | - | - | |||||||||||
| Loss from continuing operations | (7,319,659 | ) | (2,474,151 | ) | (7,682,247 | ) | (4,753,545 | ) | |||||||
| Income (loss) from discontinued operations, net of income taxes | - | 453,421 | (157,274 | ) | 715,181 | ||||||||||
| Net loss | (7,319,659 | ) | (2,020,730 | ) | (7,839,521 | ) | (4,038,364 | ) | |||||||
| Per share basis: | |||||||||||||||
| Basic: | |||||||||||||||
| Continuing operations | $ | (0.29 | ) | $ | (0.11 | ) | $ | (0.31 | ) | $ | (0.22 | ) | |||
| Discontinued operations | $ | - | $ | 0.02 | $ | (0.01 | ) | $ | 0.03 | ||||||
| Basic loss per share | $ | (0.29 | ) | $ | (0.09 | ) | $ | (0.32 | ) | $ | (0.19 | ) | |||
| Diluted: | |||||||||||||||
| Continuing operations | $ | (0.29 | ) | $ | (0.11 | ) | $ | (0.31 | ) | $ | (0.22 | ) | |||
| Discontinued operations | $ | - | $ | 0.02 | $ | (0.01 | ) | $ | 0.03 | ||||||
| Diluted loss per share | $ | (0.29 | ) | $ | (0.09 | ) | $ | (0.32 | ) | $ | (0.19 | ) | |||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 24,841,334 | 21,687,808 | 24,761,553 | 21,534,925 | |||||||||||
| Diluted | 24,841,334 | 21,951,955 | 24,761,553 | 22,022,039 | |||||||||||
| ONE STOP SYSTEMS, INC. (OSS) UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| For the Six Months Ended June 30, | |||||||
| 2026 | 2025 | ||||||
| Cash flows from continuing operating activities: | |||||||
| Loss from continuing operations | $ | (7,682,247 | ) | $ | (4,753,545 | ) | |
| Adjustments to reconcile loss from continuing operations to net cash provided by (used in) continuing operating activities: | |||||||
| Depreciation | 366,616 | 390,437 | |||||
| Provision for (recovery from) credit losses | 30,000 | (100 | ) | ||||
| Amortization of right-of-use assets | 91,673 | 123,909 | |||||
| Stock-based compensation expense | 1,516,341 | 1,061,755 | |||||
| Change in warranty reserves | 40,000 | - | |||||
| Change in inventory reserves | (212,939 | ) | (394,386 | ) | |||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | 3,176,676 | 449,564 | |||||
| Inventories | (8,230,819 | ) | 588,495 | ||||
| Prepaid expenses and other current assets | (84,240 | ) | 1,556 | ||||
| Security deposits | 3,019 | - | |||||
| Accounts payable | 4,459,116 | 1,466,737 | |||||
| Accrued expenses and other current liabilities | 5,999,492 | (1,580,362 | ) | ||||
| Operating lease liabilities | (101,826 | ) | (127,974 | ) | |||
| Net cash used in continuing operating activities | (629,138 | ) | (2,773,914 | ) | |||
| Cash flows from continuing investing activities: | |||||||
| Purchases of property and equipment | (125,393 | ) | (56,197 | ) | |||
| (Purchase) sale of marketable securities | (14,175,356 | ) | 2,184,302 | ||||
| Net cash (used in) provided by continuing investing activities | (14,300,749 | ) | 2,128,105 | ||||
| Cash flows from continuing financing activities: | |||||||
| Proceeds from exercise of stock options | 188,204 | 1,000,780 | |||||
| Payment of withholding taxes on stock-based awards | (1,196,880 | ) | (303,477 | ) | |||
| Net cash (used in) provided by continuing financing activities | (1,008,676 | ) | 697,303 | ||||
| Net change in cash, cash equivalents, and restricted cash from continuing operations | (15,938,563 | ) | 51,494 | ||||
| Net cash flow from discontinued operating activities | (157,274.2 | ) | 1,269,614 | ||||
| Net cash flow from discontinued investing activities | - | (117,132 | ) | ||||
| Net cash flow from discontinued financing activities | - | - | |||||
| Net change in cash, cash equivalents, and restricted cash from discontinued operations | (157,274.2 | ) | 1,152,482 | ||||
| Effect of exchange rate changes on cash | 460,851 | ||||||
| Net change in cash, cash equivalents, and restricted cash | (16,095,837 | ) | 1,664,827 | ||||
| Cash, cash equivalents, and restricted cash, beginning of period: | 33,374,976 | 6,794,093 | |||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 17,279,139 | $ | 8,458,920 | |||
