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ONE STOP SYSTEMS, INC.

CIK:0001394056|SEC Filings

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue	$ 9,348,551	$ 5,760,711	$ 17,418,162	$ 10,967,521
Cost of revenue	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)
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	0	453,421	(157,274)	715,181
Net income (loss)	$ (7,319,659)	$ (2,020,730)	$ (7,839,521)	$ (4,038,364)
Basic:
Basic: Continuing operations	$ (0.29)	$ (0.11)	$ (0.31)	$ (0.22)
Basic: Discontinued operations	0	0.02	(0.01)	0.03
Basic loss per share	(0.29)	(0.09)	(0.32)	(0.19)
Diluted:
Diluted: Continuing operations	(0.29)	(0.11)	(0.31)	(0.22)
Diluted: Discontinued operations	0	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
Product
Revenue	$ 8,405,014	$ 5,375,709	$ 15,469,262	$ 10,172,145
Cost of revenue	4,994,499	3,127,961	8,630,081	5,615,780
Customer Funded Development
Revenue	943,537	385,002	1,948,900	795,376
Cost of revenue	$ 703,014	$ 250,879	$ 969,484	$ 600,661

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 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	0
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	0
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)	1,269,614
Net cash flow from discontinued investing activities	0	(117,132)
Net cash flow from discontinued financing activities	0	0
Net change in cash, cash equivalents, and restricted cash from discontinued operations	(157,274)	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
Continuing Operations
Supplemental disclosure of cash flow information:
Cash paid during the period for income taxes	12,930	8,400
Discontinued Operations
Adjustments to reconcile loss from continuing operations to net cash provided by (used in) continuing operating activities:
Stock-based compensation expense	$ 0	66,580
Supplemental disclosure of cash flow information:
Cash paid during the period for interest		26,793
Cash paid during the period for income taxes		$ 270,354

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 17,279,139	$ 31,174,880
Restricted Cash		2,200,096
Short-term investments	14,128,617	0
Accounts receivable, net (Note 4)	8,343,042	11,549,718
Inventories, net (Note 5)	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 (Note 7)	80,195	73,908
Total assets	55,839,730	52,821,543
Current liabilities
Accounts payable	6,175,505	1,716,389
Accrued expenses and other current liabilities (Note 6)	9,669,622	3,630,130
Current portion of operating lease liabilities (Note 10)	244,859	219,097
Total current liabilities	16,089,986	5,565,616
Operating lease liabilities, net of current portion (Note 10)	1,122,275	1,249,862
Total liabilities	17,212,261	6,815,478
Commitments and contingencies (Note 10)
Stockholders’ equity
Common stock, $0.0001 par value; 50,000,000 shares authorized; 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