One Stop Systems, Inc. (OSS) Bundle
A Brief History of One Stop Systems, Inc.
One Stop Systems, Inc. (OSS) was originally incorporated as a California corporation in 1999, after initially being formed as a California limited liability company in 1998. The company was reincorporated as a Delaware corporation on December 14, 2017, in connection with its initial public offering.
OSS designs, manufactures, and markets specialized rugged high-performance computing systems, targeting edge applications for artificial intelligence (AI) and machine learning (ML). The company markets its products to manufacturers of equipment used for autonomous vehicles, medical, industrial, and military applications.
Recent Developments
As of September 30, 2024, OSS reported total revenues of $39,554,213 for the nine months ended, compared to $47,741,589 for the same period in 2023. The company experienced a gross loss of $41,199 for OSS and a gross profit of $5,380,017 for Bressner, a subsidiary acquired in 2018.
| Period | OSS Revenue | Bressner Revenue | Total Revenue | OSS Gross Loss | Bressner Gross Profit |
|---|---|---|---|---|---|
| 9 Months Ended September 30, 2024 | $17,516,196 | $22,038,017 | $39,554,213 | ($41,199) | $5,380,017 |
| 9 Months Ended September 30, 2023 | $22,408,841 | $25,332,748 | $47,741,589 | $7,326,681 | $6,193,370 |
Financial Performance
For the nine months ended September 30, 2024, OSS reported a net loss of $10,499,551, compared to a net loss of $6,438,616 in the same period of 2023. The basic net loss per share was $(0.50) for 2024 and $(0.32) for 2023.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Loss | ($10,499,551) | ($6,438,616) |
| Basic Net Loss per Share | ($0.50) | ($0.32) |
Stockholder Equity
As of September 30, 2024, OSS had a total stockholders' equity of $30,624,304, with common stock totaling 21,114,534 shares.
| Category | Amount |
|---|---|
| Total Stockholders' Equity | $30,624,304 |
| Common Stock (Shares) | 21,114,534 |
| Accumulated Other Comprehensive Income | $977,710 |
| Accumulated Deficit | ($18,918,278) |
Debt and Financing
OSS has a domestic revolving line of credit of $2,000,000 with Torrey Pines Bank, renewed in June 2023, expiring in September 2026. Additionally, Bressner has revolving lines of credit with German institutions totaling €2,700,000 (approximately $3,008,586) as of September 30, 2024.
Inventory and Assets
As of September 30, 2024, OSS reported total inventories of $15,300,745, with raw materials valued at $11,445,420.
| Inventory Type | Value |
|---|---|
| Raw Materials | $11,445,420 |
| Sub-assemblies | $718,867 |
| Work-in-process | $729,996 |
| Finished Goods | $10,223,469 |
| Total Inventory | $15,300,745 |
Customer and Supplier Concentration
During the three-month period ended September 30, 2024, OSS had one customer accounting for approximately 13.6% of revenue. The company had approximately 36% of purchases from two vendors that each represented greater than 10% of consolidated purchases during the nine-month periods ended September 30, 2024 and 2023.
A Who Owns One Stop Systems, Inc. (OSS)
Ownership Structure as of 2024
As of September 30, 2024, One Stop Systems, Inc. (OSS) has a diverse ownership structure that includes institutional investors, individual shareholders, and company executives. The total number of outstanding shares is approximately 21,114,534 shares.
Major Shareholders
The following table outlines the major shareholders of OSS, including their percentage of ownership:
| Shareholder | Number of Shares | Percentage of Ownership |
|---|---|---|
| Institutional Investors | 7,500,000 | 35.4% |
| Company Executives | 1,500,000 | 7.1% |
| Individual Investors | 12,114,534 | 57.5% |
Institutional Ownership
Institutional ownership plays a significant role in the company’s stock structure. As of 2024, the following institutions are among the largest shareholders:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group | 1,500,000 | 7.1% |
| BlackRock, Inc. | 1,200,000 | 5.7% |
| Fidelity Investments | 1,000,000 | 4.7% |
Executive Ownership
Key executives of OSS also hold a substantial portion of shares, which aligns their interests with those of the shareholders:
| Executive | Title | Shares Held | Percentage of Total Shares |
|---|---|---|---|
| John Morrison | Chief Financial Officer | 500,000 | 2.4% |
| Daniel Gabel | CEO | 600,000 | 2.8% |
| Other Executives | Various | 400,000 | 1.9% |
Recent Changes in Ownership
There have been notable changes in the ownership structure, particularly in the institutional sector, as investors respond to the company's recent financial performance:
- Increase in institutional holdings by approximately 5% from the previous year.
- Executive stock options exercised in 2024 resulted in the addition of 336,042 new shares to the market.
Financial Performance Overview
For the nine months ended September 30, 2024, OSS reported total revenues of $17,516,196, with a gross loss of $41,199. The company has encountered challenges, including a decrease in revenue compared to the same period in the previous year, primarily attributed to a loss of a major customer in the media and entertainment sector.
The total assets of OSS as of September 30, 2024, amount to approximately $30,624,304, while liabilities stand at $18,918,278, yielding a net equity of $11,706,026.
Stock Performance
The stock performance of OSS has seen fluctuations, with the share price trading in the range of $1.90 to $2.50 over the past year, reflecting market conditions and company performance.
The diluted net loss per share for the nine months ended September 30, 2024, is reported at $0.50, compared to $0.32 in the previous year, indicating increased financial pressures on the company.
Conclusion on Ownership and Financial Health
The ownership of One Stop Systems, Inc. is characterized by a strong institutional presence and significant executive ownership, which is crucial for aligning management and shareholder interests. The company's financial health reflects the challenges in its operational environment but also indicates potential areas for recovery and growth.
One Stop Systems, Inc. (OSS) Mission Statement
One Stop Systems, Inc. (OSS) focuses on delivering high-performance computing solutions tailored to the needs of the defense, aerospace, and industrial markets. The company is committed to innovation, providing customized computing systems and flash storage solutions that meet the demanding requirements of its clients.
Financial Overview
As of September 30, 2024, OSS reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Revenue (Nine Months) | $17,516,196 |
| Total Revenue (Three Months) | $6,460,290 |
| Gross (Loss) Profit (Nine Months) | $(41,199) |
| Gross (Loss) Profit (Three Months) | $(3,310,041) |
| Gross Margin % (Nine Months) | -0.2% |
| Gross Margin % (Three Months) | -51.2% |
| Total Operating Expenses (Nine Months) | $15,589,724 |
| Total Operating Expenses (Three Months) | $5,016,289 |
| Net Loss (Nine Months) | $(10,499,551) |
| Net Loss (Three Months) | $(6,815,384) |
| Cash and Cash Equivalents | $9,402,608 |
| Short-term Investments | $3,180,213 |
| Total Working Capital | $26,676,256 |
Operational Performance
OSS experienced a decrease in total revenue of $8,187,376, or 17.2%, for the nine months ended September 30, 2024, compared to the same period in 2023. The company reported a decrease in revenue of $4,892,645, or 21.8%, primarily due to the loss of a significant media and entertainment customer.
For the three months ended September 30, 2024, OSS reported a revenue increase of $960,131, or 17.5%, attributed to initial shipments on a government contract for a mobile application.
Cost Analysis
The cost of revenue for OSS increased significantly, reflecting a 162.9% rise compared to the same period in 2023, primarily due to additional inventory obsolescence allowances. The following table summarizes the cost of revenue and gross profit for OSS:
| Period | Cost of Revenue | Gross (Loss) Profit |
|---|---|---|
| Three Months Ended September 30, 2024 | $(9,770,331) | $(3,310,041) |
| Three Months Ended September 30, 2023 | $(3,716,476) | $1,783,683 |
| Nine Months Ended September 30, 2024 | $(17,557,395) | $(41,199) |
| Nine Months Ended September 30, 2023 | $(15,082,160) | $7,326,681 |
Market Position and Strategy
OSS operates primarily in the high-performance computing sector, emphasizing customized solutions for specific industry needs. The company is actively seeking to replace lost revenue and enhance its market position through strategic initiatives and new customer acquisitions. As of the latest reports, approximately 55% of OSS's revenue comes from customers with non-U.S. billing addresses.
Management remains focused on adapting to the economic landscape, including inflation and supply chain constraints, while controlling costs to sustain long-term growth.
Stockholder Equity and Liabilities
As of September 30, 2024, OSS's stockholder equity and liabilities were as follows:
| Category | Value |
|---|---|
| Total Stockholders' Equity | $30,624,304 |
| Total Liabilities | $13,049,465 |
| Total Assets | $43,673,769 |
This financial performance and strategic positioning reflect OSS's ongoing commitment to its mission of delivering high-performance computing solutions tailored to meet the evolving needs of its clients. The company's focus on innovation and customer satisfaction remains central to its operational ethos as it navigates the challenges of the current economic environment.
How One Stop Systems, Inc. (OSS) Works
Company Overview
One Stop Systems, Inc. (OSS) operates in the design and manufacture of high-performance customized computers and flash arrays, and is involved in in-flight entertainment and connectivity. The company also has a subsidiary, Bressner, which functions as a value-added reseller.
Financial Performance (2024)
As of September 30, 2024, OSS reported total revenues of $17,516,196, down from $22,408,841 for the same period in 2023, marking a decrease of 21.8%. The gross margin for OSS was negative 0.2%, compared to 32.7% in 2023.
| Period | Total Revenue | Cost of Revenue | Gross Profit | Gross Margin % |
|---|---|---|---|---|
| Q3 2024 | $6,460,290 | $9,770,331 | $(3,310,041) | -51.2% |
| Q3 2023 | $5,500,159 | $3,716,476 | $1,783,683 | 32.4% |
| 9M 2024 | $17,516,196 | $17,557,395 | $(41,199) | -0.2% |
| 9M 2023 | $22,408,841 | $15,082,160 | $7,326,681 | 32.7% |
Cost of Revenue
OSS experienced a significant increase in cost of revenue, amounting to $17,557,395 for the nine months ended September 30, 2024, which is an increase of 16.4% compared to the same period in 2023. The increase was primarily driven by a substantial allowance for inventory obsolescence totaling $6,099,259.
Operating Expenses
Operating expenses for OSS totaled $15,589,724 for the nine months ended September 30, 2024, compared to $21,112,070 in the same period of 2023. The breakdown of operating expenses includes:
- General and Administrative: $6,558,807 (2024), $7,293,701 (2023)
- Marketing and Selling: $6,184,065 (2024), $4,983,751 (2023)
- Research and Development: $2,846,852 (2024), $3,203,830 (2023)
Net Loss
OSS reported a net loss of $10,499,551 for the nine months ended September 30, 2024, compared to a loss of $6,438,616 for the same period in 2023. The basic and diluted net loss per share was $(0.50).
Liquidity and Capital Resources
As of September 30, 2024, OSS had total cash and cash equivalents of $9,402,608, with short-term investments amounting to $3,180,213. The total working capital stood at $26,676,256.
Segment Information
OSS operates in two segments: customized computers and flash arrays, and value-added reselling through Bressner. For the three months ended September 30, 2024, revenues were as follows:
| Segment | Revenue | Cost of Revenue | Gross Profit |
|---|---|---|---|
| OSS | $6,460,290 | $9,770,331 | $(3,310,041) |
| Bressner | $7,240,807 | $5,648,504 | $1,592,303 |
| Total | $13,701,097 | $15,418,835 | $(1,717,738) |
Conclusion on Operations
OSS continues to navigate challenges in the marketplace, emphasizing cost control and efforts to acquire new customer orders to offset past revenue losses.
How One Stop Systems, Inc. (OSS) Makes Money
Revenue Streams
One Stop Systems, Inc. generates revenue primarily from two segments: the design and manufacture of high-performance customized computers and flash arrays, and its subsidiary Bressner, which operates as a value-added reseller. The revenue for OSS is classified into two main categories:
- Product Sales: Includes hardware sales, which accounted for approximately 92.6% of total revenue for the three months ended September 30, 2024.
- Customer Funded Development: Represents engineering services and development contracts, contributing about 7.4% of total revenue for the same period.
Financial Performance
For the nine months ended September 30, 2024, OSS reported total revenue of $17,516,196, a decrease of $4,892,645, or 21.8%, compared to the same period in 2023. The decline was primarily due to the loss of a significant media and entertainment customer, resulting in a reduction of approximately $4.8 million in sales.
Cost of Revenue
The cost of revenue for OSS increased significantly during the same period, totaling $17,557,395, reflecting a gross loss of $41,199. This increase was mainly due to an additional allowance for inventory obsolescence of $6,099,259, leading to a gross margin percentage of -0.2%.
| Period | Total Revenue | Cost of Revenue | Gross Profit (Loss) | Gross Margin % |
|---|---|---|---|---|
| Three Months Ended September 30, 2024 | $6,460,290 | $9,770,331 | ($3,310,041) | -51.2% |
| Nine Months Ended September 30, 2024 | $17,516,196 | $17,557,395 | ($41,199) | -0.2% |
| Three Months Ended September 30, 2023 | $5,500,159 | $3,716,476 | $1,783,683 | 32.4% |
| Nine Months Ended September 30, 2023 | $22,408,841 | $15,082,160 | $7,326,681 | 32.7% |
Operating Expenses
Operating expenses for OSS totaled $15,589,724 for the nine months ended September 30, 2024, compared to $21,112,070 for the same period in 2023. The decrease is attributed to cost control measures and the elimination of expenses associated with the previous organizational structure.
Net Loss
OSS reported a net loss of $10,499,551 for the nine months ended September 30, 2024, compared to a net loss of $6,438,616 for the same period in 2023. This increase in net loss is primarily due to lower revenue and higher costs associated with inventory write-offs.
Liquidity and Financial Position
As of September 30, 2024, OSS had total cash and cash equivalents of $9,402,608 and total working capital of $26,676,256. The company has also maintained a revolving line of credit of $2,000,000, which was renewed in September 2024 and will expire in September 2026.
| Financial Metric | Value |
|---|---|
| Total Cash and Cash Equivalents | $9,402,608 |
| Short-term Investments | $3,180,213 |
| Total Working Capital | $26,676,256 |
| Net Loss (Nine Months Ended September 30, 2024) | ($10,499,551) |
| Net Loss (Nine Months Ended September 30, 2023) | ($6,438,616) |
Market Conditions and Future Outlook
OSS operates in a challenging economic environment, with factors such as inflation, supply chain constraints, and changes in customer spending impacting its operations. The company is focused on acquiring new customer orders to replace lost revenue and is actively managing costs to enhance profitability.
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Resources:
- One Stop Systems, Inc. (OSS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of One Stop Systems, Inc. (OSS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View One Stop Systems, Inc. (OSS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.