Image Credit: Joroen Mirck (Flickr)

Why the Feds are Investigating Tesla’s Autopilot and What that Means for the Future of Self-Driving Cars

 

It’s hard to miss the flashing lights of fire engines, ambulances, and police cars ahead of you as you’re driving down the road. But in at least 11 cases in the past three and a half years, Tesla’s Autopilot advanced driver-assistance system did just that. This led to 11 accidents in which Teslas crashed into emergency vehicles or other vehicles at those scenes, resulting in 17 injuries and one death.

The National Highway Transportation Safety Administration has launched an investigation into Tesla’s Autopilot system in response to the crashes. The incidents took place between January 2018 and July 2021 in Arizona, California, Connecticut, Florida, Indiana, Massachusetts, Michigan, North Carolina and Texas. The probe covers 765,000 Tesla cars – that’s virtually every car the company has made in the last seven years. It’s also not the first time the federal government has investigated Tesla’s Autopilot.

 

This article was republished with permission from  The Conversation, a news site dedicated to sharing ideas from academic experts. It represents the research-based findings and thoughts of Hayder Radha, Professor of Electrical and Computer Engineering, Michigan State University

 

As a researcher who studies autonomous vehicles, I believe the investigation will put pressure on Tesla to reevaluate the technologies the company uses in Autopilot and could influence the future of driver-assistance systems and autonomous vehicles.

 

How Tesla’s Autopilot Works

Tesla’s Autopilot uses cameras, radar, and ultrasonic sensors to support two major features: Traffic-Aware Cruise Control and Autosteer.

Traffic-Aware Cruise Control, also known as adaptive cruise control, maintains a safe distance between the car and other vehicles that are driving ahead of it. This technology primarily uses cameras in conjunction with artificial intelligence algorithms to detect surrounding objects such as vehicles, pedestrians, and cyclists, and estimate their distances. Autosteer uses cameras to detect clearly marked lines on the road to keep the vehicle within its lane.

In addition to its Autopilot capabilities, Tesla has been offering what it calls “full self-driving” features that include auto park and auto lane change. Since its first offering of the Autopilot system and other self-driving features, Tesla has consistently warned users that these technologies require active driver supervision and that these features do not make the vehicle autonomous.

 

Tesla’s Autopilot display shows the driver where the car thinks it is in relation to
the road and other vehicles. Rosenfeld Media/Flickr

Tesla is beefing up the AI technology that underpins Autopilot. The company announced on Aug. 19, 2021, that it is building a supercomputer using custom chips. The supercomputer will help train Tesla’s AI system to recognize objects seen in video feeds collected by cameras in the company’s cars.

 

Autopilot Does Not Equal Autonomous

Advanced driver-assistance systems have been supported on a wide range of vehicles for many decades. The Society of Automobile Engineers divides the degree of a vehicle’s automation into six levels, starting from Level 0, with no automated driving features, to Level 5, which represents full autonomous driving with no need for human intervention.

Within these six levels of autonomy, there is a clear and vivid divide between Level 2 and Level 3. In principle, at Levels 0, 1 and 2, the vehicle should be primarily controlled by a human driver, with some assistance from driver-assistance systems. At Levels 3, 4 and 5, the vehicle’s AI components and related driver-assistance technologies are the primary controller of the vehicle. For example, Waymo’s self-driving taxis, which operate in the Phoenix area, are Level 4, which means they operate without human drivers but only under certain weather and traffic conditions.

Tesla Autopilot is considered a Level 2 system, and hence the primary controller of the vehicle should be a human driver. This provides a partial explanation for the incidents cited by the federal investigation. Though Tesla says it expects drivers to be alert at all times when using the Autopilot features, some drivers treat the Autopilot as having autonomous driving capability with little or no need for human monitoring or intervention. This discrepancy between Tesla’s instructions and driver behavior seems to be a factor in the incidents under investigation.

Another possible factor is how Tesla assures that drivers are paying attention. Earlier versions of Tesla’s Autopilot were ineffective in monitoring driver attention and engagement level when the system is on. The company instead relied on requiring drivers to periodically move the steering wheel, which can be done without watching the road. Tesla recently announced that it has begun using internal cameras to monitor drivers’ attention and alert drivers when they are inattentive.

 

The Tesla Model S following its recovery from the crash scene near Williston, Florida.
(Photo by Florida Highway Patrol investigators)

Another equally important factor contributing to Tesla’s vehicle crashes is the company’s choice of sensor technologies. Tesla has consistently avoided the use of lidar. In simple terms, lidar is like radar but with lasers instead of radio waves. It’s capable of precisely detecting objects and estimating their distances. Virtually all major companies working on autonomous vehicles, including Waymo, Cruise, Volvo, Mercedes, Ford and GM, are using lidar as an essential technology for enabling automated vehicles to perceive their environments.

By relying on cameras, Tesla’s Autopilot is prone to potential failures caused by challenging lighting conditions, such as glare and darkness. In its announcement of the Tesla investigation, the NHTSA reported that most incidents occurred after dark where there were flashing emergency vehicle lights, flares, or other lights. Lidar, in contrast, can operate under any lighting conditions and can “see” in the dark.

 

Fallout From the Investigation

The preliminary evaluation will determine whether the NHTSA should proceed with an engineering analysis, which could lead to a recall. The investigation could eventually lead to changes in future Tesla Autopilot and its other self-driving system. The investigation might also indirectly have a broader impact on the deployment of future autonomous vehicles; in particular, the investigation may reinforce the need for lidar.

Although reports in May 2021 indicated that Tesla was testing lidar sensors, it’s not clear whether the company was quietly considering the technology or using it to validate their existing sensor systems. Tesla CEO Elon Musk called lidar “a fool’s errand” in 2019, saying it’s expensive and unnecessary.

However, just as Tesla is revisiting systems that monitor driver attention, the NHTSA investigation could push the company to consider adding lidar or similar technologies to future vehicles.

 

Suggested Reading:

Ford’s Announcement is Another Reason for Copper Investors to Smile

The Future of Electric Vehicles

Your Data is Used to Generate Big Returns

Edge Computing Importance to AI Applications

 

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Tuesday, August 24, 2021

TAAL Distributed Information Technologies (TAALF)
2Q Results In-Line with Expectations

Taal Distributed Information Technologies Inc delivers value-added blockchain services, providing professional-grade, highly scalable blockchain infrastructure and transactional platforms to support businesses building solutions and applications upon the Bitcoin SV platform, and developing, operating, and managing distributed computing systems for enterprise users.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

2Q21 Results. TAAL reported 2Q21 results yesterday. Revenue totaled $6.7 million and the Company reported a net loss of $10.1 million, or $0.29 per share. (All figures are in Canadian dollars unless noted.) In the same period last year, TAAL reported revenue of $1.6 million and a net loss of $2.4 million, or a loss of $0.11 per share. We had projected revenue of $6.0 million and a net loss of $2.1 million, or a loss of $0.06 per share.


Revaluation Impacted Bottom Line.  While revenue grew from an increase in mining machines on-line, overall results were negatively impacted by an $8.8 million revaluation loss on digital assets, as the holdings of Bitcoin SV were marked to market at quarter’s end. Excluding this non-cash charge, operating loss is estimated at $1.3 million. At the end of June, TAAL held approximately 100,900 Bitcoin …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

 

Voyager Digital Announces Conditional Approval to List on the Toronto Stock Exchange

 

– Stock will trade on the TSX under the new ticker symbol VOYG and de-list from the CSE –
– The Company is also announcing it has filed and obtained a receipt for its final short form Base Shelf Prospectus –

NEW YORK, Aug. 23, 2021 /PRNewswire/ – Voyager Digital  Ltd. (“Voyager” or the “Company”) (CSE: VYGR) (OTCQX: VYGVF) (FRA: UCD2), a fast-growing, publicly-traded cryptocurrency platform in the United States, is pleased to announce that it has received conditional approval from the Toronto Stock Exchange to list its common shares on the Toronto Stock Exchange (the “TSX”) and will voluntarily delist its common shares from  the Canadian Securities Exchange (the “CSE”). VOYG will be the new ticker symbol for trading on the TSX.

“It‘s a great accomplishment for Voyager that the TSX has conditionally approved our listing on the TSX,” said Steve Ehrlich, CEO and Co-founder of Voyager. “Our goal from day one was to be publicly traded and fully transparent to our community, which we accomplished by listing on the CSE. The Company is now at a stage where investors could benefit from an up-listing to a more senior exchange. With Voyager‘s crypto trading platform generating revenue and cash flow at an accelerating pace, we feel it’s time to uplist so that we can increase our exposure to a larger investor universe.”

Final approval of the listing is subject to the Company meeting certain customary conditions required by the TSX. Voyager will officially announce when the trading of Voyager common shares is expected to commence on the TSX. Upon completion of the final listing requirements, the Company’s common shares will be delisted from the CSE. Shareholders are not required to exchange their share certificates or take any other action in connection with the TSX listing. A TSX listing is one of the requirements for inclusion in certain indices including the S&P/TSX Composite Index and related exchange-traded products (ETFs). There can be no certainty that the company would qualify or be eligible to be included in such indices and ETFs.

Voyager is also pleased to announce that it has filed and obtained a receipt for its final short form Base Shelf Prospectus with the securities regulatory authorities in each of the provinces and territories of Canada. The Base Shelf Prospectus will allow the Company to make offerings of common shares, warrants, units, debt securities, and subscription receipts, or any combination thereof, for up to an aggregate total of US$300 million during the 25-month period that the Base Shelf Prospectus is effective. If any securities are offered under the Base Shelf Prospectus, the terms of any such securities and the intended use of the net proceeds resulting from such offering would be established at the time of any offering and would be described in a prospectus supplement filed with the applicable Canadian securities regulators at the time of such an offering. There is no certainty that any securities will be offered or sold under the Base Shelf Prospectus within its 25-month period of effectiveness. 

About Voyager Digital Ltd.
Voyager Digital Ltd. (CSE: VYGR;OTCQX: VYGVF; FRA: UCD2) is the fast-growing, publicly-traded cryptocurrency platform founded in 2018 to bring choice, transparency, and cost efficiency to the marketplace. Voyager offers a secure way to invest and trade in over 60 different crypto assets, with zero commissions, using its easy-to-use mobile application, and earn rewards up to 12 percent APY on more than 30 cryptocurrencies. Through its subsidiary Coinify ApS, Voyager provides crypto payment solutions for both consumers and merchants around the globe. To learn more about the company, please visit https://www.investvoyager.com.

Neither the TSX, the CSE nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. No securities regulatory authority has either approved or disapproved of the contents of this press release.

Cautionary Statement Regarding Forward-Looking Information
This news release contains “forward-looking statements” that are based on expectations, estimates, projections and interpretations as at the date of this news release. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “seek”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and other similar words or statements that certain events or conditions “may” or “will” occur. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors may include, but are not limited to, those risk factors outlined in the Company’s Management Discussion and Analysis as filed on SEDAR. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

Voyager Digital Ltd. Contacts
Michael Legg
Chief Communications Officer
(212) 547-8807
mlegg@investvoyager.com

Voyager Public Relations Team
pr@investvoyager.com

SOURCE Voyager Digital (Canada) Ltd.

 

Voyager Digital Announces Conditional Approval to List on the Toronto Stock Exchange

 

– Stock will trade on the TSX under the new ticker symbol VOYG and de-list from the CSE –
– The Company is also announcing it has filed and obtained a receipt for its final short form Base Shelf Prospectus –

NEW YORK, Aug. 23, 2021 /PRNewswire/ – Voyager Digital  Ltd. (“Voyager” or the “Company”) (CSE: VYGR) (OTCQX: VYGVF) (FRA: UCD2), a fast-growing, publicly-traded cryptocurrency platform in the United States, is pleased to announce that it has received conditional approval from the Toronto Stock Exchange to list its common shares on the Toronto Stock Exchange (the “TSX”) and will voluntarily delist its common shares from  the Canadian Securities Exchange (the “CSE”). VOYG will be the new ticker symbol for trading on the TSX.

“It‘s a great accomplishment for Voyager that the TSX has conditionally approved our listing on the TSX,” said Steve Ehrlich, CEO and Co-founder of Voyager. “Our goal from day one was to be publicly traded and fully transparent to our community, which we accomplished by listing on the CSE. The Company is now at a stage where investors could benefit from an up-listing to a more senior exchange. With Voyager‘s crypto trading platform generating revenue and cash flow at an accelerating pace, we feel it’s time to uplist so that we can increase our exposure to a larger investor universe.”

Final approval of the listing is subject to the Company meeting certain customary conditions required by the TSX. Voyager will officially announce when the trading of Voyager common shares is expected to commence on the TSX. Upon completion of the final listing requirements, the Company’s common shares will be delisted from the CSE. Shareholders are not required to exchange their share certificates or take any other action in connection with the TSX listing. A TSX listing is one of the requirements for inclusion in certain indices including the S&P/TSX Composite Index and related exchange-traded products (ETFs). There can be no certainty that the company would qualify or be eligible to be included in such indices and ETFs.

Voyager is also pleased to announce that it has filed and obtained a receipt for its final short form Base Shelf Prospectus with the securities regulatory authorities in each of the provinces and territories of Canada. The Base Shelf Prospectus will allow the Company to make offerings of common shares, warrants, units, debt securities, and subscription receipts, or any combination thereof, for up to an aggregate total of US$300 million during the 25-month period that the Base Shelf Prospectus is effective. If any securities are offered under the Base Shelf Prospectus, the terms of any such securities and the intended use of the net proceeds resulting from such offering would be established at the time of any offering and would be described in a prospectus supplement filed with the applicable Canadian securities regulators at the time of such an offering. There is no certainty that any securities will be offered or sold under the Base Shelf Prospectus within its 25-month period of effectiveness. 

About Voyager Digital Ltd.
Voyager Digital Ltd. (CSE: VYGR;OTCQX: VYGVF; FRA: UCD2) is the fast-growing, publicly-traded cryptocurrency platform founded in 2018 to bring choice, transparency, and cost efficiency to the marketplace. Voyager offers a secure way to invest and trade in over 60 different crypto assets, with zero commissions, using its easy-to-use mobile application, and earn rewards up to 12 percent APY on more than 30 cryptocurrencies. Through its subsidiary Coinify ApS, Voyager provides crypto payment solutions for both consumers and merchants around the globe. To learn more about the company, please visit https://www.investvoyager.com.

Neither the TSX, the CSE nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. No securities regulatory authority has either approved or disapproved of the contents of this press release.

Cautionary Statement Regarding Forward-Looking Information
This news release contains “forward-looking statements” that are based on expectations, estimates, projections and interpretations as at the date of this news release. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “seek”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and other similar words or statements that certain events or conditions “may” or “will” occur. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors may include, but are not limited to, those risk factors outlined in the Company’s Management Discussion and Analysis as filed on SEDAR. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

Voyager Digital Ltd. Contacts
Michael Legg
Chief Communications Officer
(212) 547-8807
mlegg@investvoyager.com

Voyager Public Relations Team
pr@investvoyager.com

SOURCE Voyager Digital (Canada) Ltd.

 

OSS Reports Q2 2021 Revenue up 28% to $14.9 Million, Delivering Income of $1.7 Million or $0.09 per Share

 

ESCONDIDO, Calif., Aug. 12, 2021 (GLOBE NEWSWIRE) — One Stop Systems, Inc. (Nasdaq: OSS), a leader in AI Transportable solutions on the edge, reported results for the second quarter ended June 30, 2021. All quarterly comparisons are to the same year-ago period unless otherwise noted. The company will hold a conference call at 5:00 p.m. Eastern time today to discuss the results (see dial-in information below).  

Q2 2021 Financial Highlights

• Revenue totaled $14.9 million, up 12% sequentially and up 28% versus the same year-ago quarter.
• Gross margin was 31.2%, up 2.6 percentage points.
• GAAP net income totaled $1.7 million or $0.09 per diluted share versus a net loss of $12,000 or $(0.00) per diluted share in the year-ago quarter. GAAP net income includes forgiveness of PPP loan of approximately $1.5 million.
• Non-GAAP net income was $812,000 or $0.04 per basic and diluted share, versus $248,000 or $0.01 per diluted share in the same year-ago quarter. Non-GAAP net income excludes $1.5 million of PPP loan forgiveness (see definition of this and other non-GAAP measures and reconciliation to GAAP, below).
• Adjusted EBITDA was $1.4 million, up $1.3 million and reaching more than 9% of total revenue. Adjusted EBITDA excludes $1.5 million of PPP loan forgiveness.
• Cash, cash equivalents and short-term investments totaled $18.5 million on June 30, 2021.

First Half 2021 Financial Highlights

• Revenue totaled a record $28.2 million, up 13%.
• Gross margin was 32.2%, up 5.3 percentage points.
• GAAP net income totaled $1.7 million or $0.09 per share, up by $2.8 million. GAAP net income includes forgiveness of PPP loan of approximately $1.5 million.
• Non-GAAP net income was $1.5 million or $0.08 per basic and diluted share, up by $1.9 million. Non-GAAP net income excludes $1.5 million of PPP loan forgiveness.
• Adjusted EBITDA was $2.5 million, up by $3.3 million. Adjusted EBITDA excludes $1.5 million of PPP loan forgiveness.
  

Q2 2021 Operational Highlights

• Secured three major design wins, which included two AI on the Fly® applications, a transportable edge flash storage solution, an autonomous vehicle training system, and a high-performance computing medical controller system. Total major wins for the first half of the year totaled six wins. In addition to the confirmed wins, the company has 17 major pending opportunities.
• Operating expenses as a percentage of revenue decreased to 27.7% from 32.1% in the same year-ago quarter, which was primarily due to the company’s expense reduction program initiated in early 2020.

Management Commentary

“In Q2, we achieved strong top-line growth with revenue up 28% to $14.9 million, and this helped drive first half revenue up 13% to a record $28.2 million,” commented OSS president and CEO, David Raun. “The strong top-line performance reflects our broadening customer base and new wins with major accounts.

“We also drove down our operating expenses as a percentage of revenue. Together, these results generated solid bottom-line improvements with net income in the second quarter increasing $1.7 million versus the year-ago quarter and adjusted EBITDA up by $1.3 million, reaching more than 9% of total revenue.

“During the second quarter, we won three new major opportunities that included a medical control system, an edge flash storage program, and a GPU-accelerated training and inference system with a major vehicle supplier in Germany. The vehicle supplier win expanded our footprint in the autonomous vehicle market. Altogether, these successes brought our first half of the year major wins to six. We also shipped our latest SDS rugged server which was designed into a military mobile datacenter application.

“While we expect the effects of the pandemic to continue through the rest of the year, we are seeing improving customer demand. Even our commercial aerospace customers, which were severely affected by COVID, are re-engaging with us on new programs, as well as bringing back programs previously put on hold. We have now 17 major pending opportunities in our pipeline that we are focused on closing.

“Executing on our long-term strategic vision and product road map continues to be our top priority. This plan includes strengthening our value proposition in the fast-growing, edge-computing industry with the goal of becoming the market leader in the AI Transportables space. This target market requires the highest performance computing in a challenging mobile environment, which we believe to be one of our greatest strengths.

“We continue to proactively manage the challenges imposed by the pandemic, and in doing so, our team has become adept at optimizing engineering and manufacturing processes, shipping product on time, and not only protecting but increasing margins.

“While we are experiencing increased product demand, supply chain challenges such as price increases and long lead-times continue to be significant. However, our team is managing the fluid landscape on multiple fronts by qualifying additional vendors, implementing extended purchase planning, and focusing on other strategic and tactical activities.

“We believe our execution of our strategic plan, corporate reorganization, and improved board composition has contributed to a tripling of shareholder value over the past two years. So far this year, we have made better-than-expected top- and bottom-line progress.

“Given our adjusted EBITDA at 9% of total revenue in the first half of the year, we are well on our way to achieving our objective of it being no less than 10% of revenues. For the current third quarter, we believe we are on track to generate revenue of about $15.9 million, which would represent an increase of 23% over the same year-ago quarter and would exceed all historical third quarters.”

Q2 2021 Financial Summary
Revenue in the second quarter of 2021 increased 28% to $14.9 million, compared to $11.6 million in the same year-ago quarter. This growth was primarily driven by improvements in the sale of ruggedized servers in the media and entertainment markets, differentiated military AI Transportables data processing and storage products, as well as continued expansion of the company’s customer base and new applications within key accounts.

Gross profit was $4.7 million or 31.2% of revenue in the second quarter of 2021, up from $3.3 million or 28.6% of revenue in Q2 2020. The improvement in quarterly margin was attributed to changes in product mix and type of customer.

Operating expenses increased 11% to $4.1 million in the second quarter of 2021 compared to $3.7 million in the same year-ago quarter. Operating expenses as a percentage of revenue decreased to 27.7% in the second quarter of 2021 versus 32.1% in the year-ago quarter.

Net income on a GAAP basis totaled $1.7 million in the second quarter of 2021 or $0.09 per diluted share compared to a net loss of $12,000 or $(0.00) per diluted share in the year-ago period. This improvement was due to more favorable gross margins as well as debt and interest forgiveness on the company’s PPP loan of approximately $1.5 million.

Non-GAAP net income totaled $812,000 or $0.04 per basic and diluted share in the second quarter of 2021, as compared to a non-GAAP net income of $248,000 or $0.01 per diluted share in the same year-ago period. Non-GAAP net income excludes the $1.5 million PPP loan forgiveness.

Adjusted EBITDA, a non-GAAP term, totaled $1.4 million in the second quarter of 2021 as compared to $73,000 in the same year-ago period. Adjusted EBITDA excludes the $1.5 million PPP loan forgiveness.

Cash, cash equivalents and short-term investments totaled $18.5 million as of June 30, 2021, as compared to $19.6 million on March 31, 2021. The company believes its cash position and other available funds provide sufficient liquidity to meet its cash requirements for working capital and paying down debt, while supporting its strategic growth initiatives.

First Half 2021 Financial Summary

Total revenues increased 13% to a record $28.2 million compared to $25.0 million in the prior year. This growth was primarily driven by improvements in the sale of ruggedized servers in the media and entertainment markets, our differentiated military AI Transportables data processing and storage products, as well as continued expansion of our customer base and new applications within key accounts.

Gross profit for the first half of 2021 was $9.1 million or 32.2% of revenue, compared to $6.7 million or 26.9% of revenue in the same year-ago period. The improvements in quarterly margins were attributable to product mix, additional sales of high-value products, and increased efficiencies.

Total operating expenses decreased 4% to $8.3 million versus the first half of 2020. Operating expenses as a percentage of revenue improved to 29.4% during the first half of 2021 versus 34.6% in the same year-ago period.

Net income on a GAAP basis totaled $1.7 million or $0.09 per diluted share, as compared to a loss of $1.1 million or $(0.07) per share in the first half of 2020. Net Income includes the $1.5 million PPP loan forgiveness.

Non-GAAP net income totaled $1.5 million or $0.08 per diluted share, as compared to non-GAAP net loss of $466,000 or $(0.03) per share in the first half of 2020. Non-GAAP net income excludes the $1.5 million PPP loan forgiveness.

Adjusted EBITDA, a non-GAAP term, totaled $2.5 million as compared to negative $885,000 in the first half of 2020. Adjusted EBITDA excludes the $1.5 million PPP loan forgiveness.

Outlook
For the third quarter of 2021, OSS expects revenue of approximately $15.9 million which would be an increase of 7% sequentially and 23% versus the same year-ago quarter.

Conference Call
OSS management will hold a conference call to discuss its second quarter 2021 results later today, followed by a question-and-answer period.

Date: Thursday, August 12, 2021
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Toll-free dial-in number: 1-866-269-4260
International dial-in number: 1-786-204-3966
Conference ID: 1453156

The conference call will be webcast live and available for replay here as well as via a link in the Investors section of the company’s website at onestopsystems.com/pages/investors. OSS regularly uses its website to disclose material and non-material information to investors, customers, employees and others interested in the company.

Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact CMA at 1-949-432-7566.

A replay of the call will be available after 8:00 p.m. Eastern time on the same day through August 26, 2021.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 1453156

About One Stop Systems
One Stop Systems, Inc. (OSS) designs and manufactures innovative AI Transportable edge computing modules and systems, including ruggedized servers, compute accelerators, expansion systems, flash storage arrays and Ion Accelerator™ SAN, NAS and data recording software for AI workflows. These products are used for AI data set capture, training, and large-scale inference in the defense, oil and gas, mining, autonomous vehicles and rugged entertainment applications.
  
OSS utilizes the power of PCI Express, the latest GPU accelerators and NVMe storage to build award-winning systems, including many industry firsts, for industrial OEMs and government customers. The company enables AI on the Fly® by bringing AI datacenter performance to ‘the edge’, especially on mobile platforms, and by addressing the entire AI workflow, from high-speed data acquisition to deep learning, training and inference. OSS products are available directly or through global distributors. For more information, go to www.onestopsystems.com.

Non-GAAP Financial Measures
Management believes 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 expenses, impairment of long-lived assets, financing costs, fair value adjustments from purchase accounting, stock-based compensation expense and expenses related to discontinued operations. For this reporting period, it excludes PPP loan forgiveness, which the company does not anticipate will reoccur in the foreseeable future.
  
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, management believes that providing a non-GAAP financial measure that excludes non-cash and non-recurring expenses allows for meaningful comparisons between the company’s core business operating results and those of other companies, as well as providing management with an important tool for financial and operational decision making and for evaluating the company’s own core business operating results over different periods of time.
  
The company’s adjusted EBITDA measure may not provide information that is directly comparable to that provided by other companies in its industry, as other companies in the company’s industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. The Company’s 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. Management does not consider adjusted EBITDA to be a substitute for, or superior to, the information provided by GAAP financial results.

	For the Three Months Ended								For the Six Months Ended
	June 30,								June 30,
	2021				2020				2021				2020
Net income (loss)	$	1,697,122			$	(12,162	)		$	1,738,320			$	(1,108,194	)
Depreciation and amortization		394,794				402,385				775,572				798,210
Amortization of deferred gain		–				(12,359	)			–				(53,838	)
Stock-based compensation expense		465,336				85,378				903,730				293,139
Interest expense		169,031				150,186				319,013				218,970
Interest income		(61,798	)			(99,343	)			(67,098	)			(123,980	)
PPP loan and interest forgiveness		(1,514,354	)			–				(1,514,354	)			–
Provision (benefit) for income taxes		235,293				(441,511	)			295,815				(908,809	)
Adjusted EBITDA	$	1,385,424			$	72,574			$	2,450,998			$	(884,502	)

Adjusted EPS excludes the impact of certain items and therefore has not been calculated in accordance with GAAP. Management believes that exclusion of certain selected items assists in providing a more complete understanding of the company’s underlying results and trends and allows for comparability with its peer company index and industry. Management uses this measure along with the corresponding GAAP financial measures to manage the company’s business and to evaluate its performance compared to prior periods and the marketplace. The company defines Non-GAAP (loss) income as (loss) or income before amortization, stock-based compensation, expenses related to discontinued operations, impairment of long-lived assets and non-recurring acquisition costs. For this reporting period, it excludes PPP loan forgiveness, which the company does not anticipate will reoccur in the foreseeable future. Adjusted EPS expresses adjusted (loss) income 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. Management expects 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 the company’s presentation of these non-GAAP financial measures that these costs are unusual, infrequent or non-recurring.  

The following table reconciles net loss attributable to common stockholders and diluted earnings per share:

	For the Three Months Ended								For the Six Months Ended
	June 30,								June 30,
	2021				2020				2021				2020
Net income (loss)	$	1,697,122			$	(12,162	)		$	1,738,320			$	(1,108,194	)
Amortization of intangibles		163,901				174,525				327,801				349,051
Stock-based compensation expense		465,336				85,378				903,730				293,139
PPP loan and interest forgiveness		(1,514,354	)			–				(1,514,354	)			–
Non-GAAP net income (loss)	$	812,005			$	247,741			$	1,455,497			$	(466,004	)
Non-GAAP net income (loss) per share:
Basic	$	0.04			$	0.02			$	0.08			$	(0.03	)
Diluted	$	0.04			$	0.01			$	0.08			$	(0.03	)
Weighted average common shares outstanding:
Basic		18,513,620				16,488,325				17,934,022				16,410,660
Diluted		19,735,383				16,867,921				19,305,842				16,410,660

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. These statements are based on the company’s current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by One Stop Systems or its partners that any of our plans or expectations will be achieved, including but not limited to, to our management’s expectations for revenue growth generated by new products and design wins. 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 Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and we undertake 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 Contact:
Katie Rivera
One Stop Systems, Inc.
Tel (760) 745-9883
Email contact

Investor Relations:
Ronald Both or Justin Lumley
CMA
Tel (949) 432-7557
Email contact

ONE STOP SYSTEMS, INC. (OSS)

UNAUDITED CONSOLIDATED BALANCE SHEETS

	Unaudited
	June 30,				December 31,
	2021				2020
ASSETS
Current assets
Cash and cash equivalents	$	3,975,069			$	6,316,921
Short-term investments		14,524,249				–
Accounts receivable, net		6,527,109				7,458,383
Inventories, net		12,411,490				9,647,504
Prepaid expenses and other current assets		996,801				655,708
Total current assets		38,434,718				24,078,516
Property and equipment, net		3,218,341				3,487,178
Deposits and other		48,155				81,709
Deferred tax assets, net		3,485,709				3,698,593
Goodwill		7,120,510				7,120,510
Intangible assets, net		334,456				662,257
	$	52,641,889			$	39,128,763
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	4,149,482			$	976,420
Accrued expenses and other liabilities		3,036,793				3,481,444
Current portion of notes payable, net of debt discount of $0 and
$2,047, respectively		1,777,715				1,365,204
Current portion of related party notes payable, net of debt discount
of $0 and $6,726, respectively		–				199,943
Current portion of senior secured convertible note, net of debt discounts of $74,458 and $256,242, respectively		2,516,451				1,789,212
Total current liabilities		11,480,441				7,812,223
Senior secured convertible note, net of current portion and debt discounts of $0 and $14,107, respectively		–				531,347
Paycheck protection program note payable		–				1,499,360
Total liabilities		11,480,441				9,842,930
Commitments and contingencies
Stockholders’ equity
Common stock, $.0001 par value; 50,000,000 shares authorized;
18,538,689 and 16,684,424 shares issued and outstanding, respectively		1,854				1,668
Additional paid-in capital		41,037,948				30,758,354
Accumulated other comprehensive income		145,062				287,547
Accumulated deficit		(23,416	)			(1,761,736	)
Total stockholders’ equity		41,161,448				29,285,833
	$	52,641,889			$	39,128,763

ONE STOP SYSTEMS, INC. (OSS)

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2021				2020				2021				2020
Revenue	$	14,905,009			$	11,625,327			$	28,220,761			$	24,984,964
Cost of revenue		10,252,265				8,300,132				19,135,233				18,264,082
Gross profit		4,652,744				3,325,195				9,085,528				6,720,882
Operating expenses:
General and administrative		1,648,785				1,877,358				3,806,404				4,391,423
Marketing and selling		1,479,292				845,098				2,647,193				2,034,449
Research and development		1,008,017				1,008,625				1,840,250				2,212,050
Total operating expenses		4,136,094				3,731,081				8,293,847				8,637,922
Income (loss) from operations		516,650				(405,886	)			791,681				(1,917,040	)
Other income (expense), net:
Interest income		61,798				99,343				67,098				123,980
Interest expense		(169,031	)			(150,186	)			(319,013	)			(218,970	)
Other income (expense), net		1,522,998				3,056				1,494,369				(4,973	)
Total other income (expense), net		1,415,765				(47,787	)			1,242,454				(99,963	)
Income (loss) before income taxes		1,932,415				(453,673	)			2,034,135				(2,017,003	)
Provision (benefit) for income taxes		235,293				(441,511	)			295,815				(908,809	)
Net income (loss)	$	1,697,122			$	(12,162	)		$	1,738,320			$	(1,108,194	)
Net income (loss) per share:
Basic	$	0.09			$	(0.00	)		$	0.10			$	(0.07	)
Diluted	$	0.09			$	(0.00	)		$	0.09			$	(0.07	)
Weighted average common shares
outstanding:
Basic		18,513,620				16,488,325				17,934,022				16,410,660
Diluted		19,735,383				16,488,325				19,305,842				16,410,660

Source: One Stop Systems, Inc.

 

OSS Reports Q2 2021 Revenue up 28% to $14.9 Million, Delivering Income of $1.7 Million or $0.09 per Share

 

ESCONDIDO, Calif., Aug. 12, 2021 (GLOBE NEWSWIRE) — One Stop Systems, Inc. (Nasdaq: OSS), a leader in AI Transportable solutions on the edge, reported results for the second quarter ended June 30, 2021. All quarterly comparisons are to the same year-ago period unless otherwise noted. The company will hold a conference call at 5:00 p.m. Eastern time today to discuss the results (see dial-in information below).  

Q2 2021 Financial Highlights

• Revenue totaled $14.9 million, up 12% sequentially and up 28% versus the same year-ago quarter.
• Gross margin was 31.2%, up 2.6 percentage points.
• GAAP net income totaled $1.7 million or $0.09 per diluted share versus a net loss of $12,000 or $(0.00) per diluted share in the year-ago quarter. GAAP net income includes forgiveness of PPP loan of approximately $1.5 million.
• Non-GAAP net income was $812,000 or $0.04 per basic and diluted share, versus $248,000 or $0.01 per diluted share in the same year-ago quarter. Non-GAAP net income excludes $1.5 million of PPP loan forgiveness (see definition of this and other non-GAAP measures and reconciliation to GAAP, below).
• Adjusted EBITDA was $1.4 million, up $1.3 million and reaching more than 9% of total revenue. Adjusted EBITDA excludes $1.5 million of PPP loan forgiveness.
• Cash, cash equivalents and short-term investments totaled $18.5 million on June 30, 2021.

First Half 2021 Financial Highlights

• Revenue totaled a record $28.2 million, up 13%.
• Gross margin was 32.2%, up 5.3 percentage points.
• GAAP net income totaled $1.7 million or $0.09 per share, up by $2.8 million. GAAP net income includes forgiveness of PPP loan of approximately $1.5 million.
• Non-GAAP net income was $1.5 million or $0.08 per basic and diluted share, up by $1.9 million. Non-GAAP net income excludes $1.5 million of PPP loan forgiveness.
• Adjusted EBITDA was $2.5 million, up by $3.3 million. Adjusted EBITDA excludes $1.5 million of PPP loan forgiveness.
  

Q2 2021 Operational Highlights

• Secured three major design wins, which included two AI on the Fly® applications, a transportable edge flash storage solution, an autonomous vehicle training system, and a high-performance computing medical controller system. Total major wins for the first half of the year totaled six wins. In addition to the confirmed wins, the company has 17 major pending opportunities.
• Operating expenses as a percentage of revenue decreased to 27.7% from 32.1% in the same year-ago quarter, which was primarily due to the company’s expense reduction program initiated in early 2020.

Management Commentary

“In Q2, we achieved strong top-line growth with revenue up 28% to $14.9 million, and this helped drive first half revenue up 13% to a record $28.2 million,” commented OSS president and CEO, David Raun. “The strong top-line performance reflects our broadening customer base and new wins with major accounts.

“We also drove down our operating expenses as a percentage of revenue. Together, these results generated solid bottom-line improvements with net income in the second quarter increasing $1.7 million versus the year-ago quarter and adjusted EBITDA up by $1.3 million, reaching more than 9% of total revenue.

“During the second quarter, we won three new major opportunities that included a medical control system, an edge flash storage program, and a GPU-accelerated training and inference system with a major vehicle supplier in Germany. The vehicle supplier win expanded our footprint in the autonomous vehicle market. Altogether, these successes brought our first half of the year major wins to six. We also shipped our latest SDS rugged server which was designed into a military mobile datacenter application.

“While we expect the effects of the pandemic to continue through the rest of the year, we are seeing improving customer demand. Even our commercial aerospace customers, which were severely affected by COVID, are re-engaging with us on new programs, as well as bringing back programs previously put on hold. We have now 17 major pending opportunities in our pipeline that we are focused on closing.

“Executing on our long-term strategic vision and product road map continues to be our top priority. This plan includes strengthening our value proposition in the fast-growing, edge-computing industry with the goal of becoming the market leader in the AI Transportables space. This target market requires the highest performance computing in a challenging mobile environment, which we believe to be one of our greatest strengths.

“We continue to proactively manage the challenges imposed by the pandemic, and in doing so, our team has become adept at optimizing engineering and manufacturing processes, shipping product on time, and not only protecting but increasing margins.

“While we are experiencing increased product demand, supply chain challenges such as price increases and long lead-times continue to be significant. However, our team is managing the fluid landscape on multiple fronts by qualifying additional vendors, implementing extended purchase planning, and focusing on other strategic and tactical activities.

“We believe our execution of our strategic plan, corporate reorganization, and improved board composition has contributed to a tripling of shareholder value over the past two years. So far this year, we have made better-than-expected top- and bottom-line progress.

“Given our adjusted EBITDA at 9% of total revenue in the first half of the year, we are well on our way to achieving our objective of it being no less than 10% of revenues. For the current third quarter, we believe we are on track to generate revenue of about $15.9 million, which would represent an increase of 23% over the same year-ago quarter and would exceed all historical third quarters.”

Q2 2021 Financial Summary
Revenue in the second quarter of 2021 increased 28% to $14.9 million, compared to $11.6 million in the same year-ago quarter. This growth was primarily driven by improvements in the sale of ruggedized servers in the media and entertainment markets, differentiated military AI Transportables data processing and storage products, as well as continued expansion of the company’s customer base and new applications within key accounts.

Gross profit was $4.7 million or 31.2% of revenue in the second quarter of 2021, up from $3.3 million or 28.6% of revenue in Q2 2020. The improvement in quarterly margin was attributed to changes in product mix and type of customer.

Operating expenses increased 11% to $4.1 million in the second quarter of 2021 compared to $3.7 million in the same year-ago quarter. Operating expenses as a percentage of revenue decreased to 27.7% in the second quarter of 2021 versus 32.1% in the year-ago quarter.

Net income on a GAAP basis totaled $1.7 million in the second quarter of 2021 or $0.09 per diluted share compared to a net loss of $12,000 or $(0.00) per diluted share in the year-ago period. This improvement was due to more favorable gross margins as well as debt and interest forgiveness on the company’s PPP loan of approximately $1.5 million.

Non-GAAP net income totaled $812,000 or $0.04 per basic and diluted share in the second quarter of 2021, as compared to a non-GAAP net income of $248,000 or $0.01 per diluted share in the same year-ago period. Non-GAAP net income excludes the $1.5 million PPP loan forgiveness.

Adjusted EBITDA, a non-GAAP term, totaled $1.4 million in the second quarter of 2021 as compared to $73,000 in the same year-ago period. Adjusted EBITDA excludes the $1.5 million PPP loan forgiveness.

Cash, cash equivalents and short-term investments totaled $18.5 million as of June 30, 2021, as compared to $19.6 million on March 31, 2021. The company believes its cash position and other available funds provide sufficient liquidity to meet its cash requirements for working capital and paying down debt, while supporting its strategic growth initiatives.

First Half 2021 Financial Summary

Total revenues increased 13% to a record $28.2 million compared to $25.0 million in the prior year. This growth was primarily driven by improvements in the sale of ruggedized servers in the media and entertainment markets, our differentiated military AI Transportables data processing and storage products, as well as continued expansion of our customer base and new applications within key accounts.

Gross profit for the first half of 2021 was $9.1 million or 32.2% of revenue, compared to $6.7 million or 26.9% of revenue in the same year-ago period. The improvements in quarterly margins were attributable to product mix, additional sales of high-value products, and increased efficiencies.

Total operating expenses decreased 4% to $8.3 million versus the first half of 2020. Operating expenses as a percentage of revenue improved to 29.4% during the first half of 2021 versus 34.6% in the same year-ago period.

Net income on a GAAP basis totaled $1.7 million or $0.09 per diluted share, as compared to a loss of $1.1 million or $(0.07) per share in the first half of 2020. Net Income includes the $1.5 million PPP loan forgiveness.

Non-GAAP net income totaled $1.5 million or $0.08 per diluted share, as compared to non-GAAP net loss of $466,000 or $(0.03) per share in the first half of 2020. Non-GAAP net income excludes the $1.5 million PPP loan forgiveness.

Adjusted EBITDA, a non-GAAP term, totaled $2.5 million as compared to negative $885,000 in the first half of 2020. Adjusted EBITDA excludes the $1.5 million PPP loan forgiveness.

Outlook
For the third quarter of 2021, OSS expects revenue of approximately $15.9 million which would be an increase of 7% sequentially and 23% versus the same year-ago quarter.

Conference Call
OSS management will hold a conference call to discuss its second quarter 2021 results later today, followed by a question-and-answer period.

Date: Thursday, August 12, 2021
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Toll-free dial-in number: 1-866-269-4260
International dial-in number: 1-786-204-3966
Conference ID: 1453156

The conference call will be webcast live and available for replay here as well as via a link in the Investors section of the company’s website at onestopsystems.com/pages/investors. OSS regularly uses its website to disclose material and non-material information to investors, customers, employees and others interested in the company.

Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact CMA at 1-949-432-7566.

A replay of the call will be available after 8:00 p.m. Eastern time on the same day through August 26, 2021.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 1453156

About One Stop Systems
One Stop Systems, Inc. (OSS) designs and manufactures innovative AI Transportable edge computing modules and systems, including ruggedized servers, compute accelerators, expansion systems, flash storage arrays and Ion Accelerator™ SAN, NAS and data recording software for AI workflows. These products are used for AI data set capture, training, and large-scale inference in the defense, oil and gas, mining, autonomous vehicles and rugged entertainment applications.
  
OSS utilizes the power of PCI Express, the latest GPU accelerators and NVMe storage to build award-winning systems, including many industry firsts, for industrial OEMs and government customers. The company enables AI on the Fly® by bringing AI datacenter performance to ‘the edge’, especially on mobile platforms, and by addressing the entire AI workflow, from high-speed data acquisition to deep learning, training and inference. OSS products are available directly or through global distributors. For more information, go to www.onestopsystems.com.

Non-GAAP Financial Measures
Management believes 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 expenses, impairment of long-lived assets, financing costs, fair value adjustments from purchase accounting, stock-based compensation expense and expenses related to discontinued operations. For this reporting period, it excludes PPP loan forgiveness, which the company does not anticipate will reoccur in the foreseeable future.
  
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, management believes that providing a non-GAAP financial measure that excludes non-cash and non-recurring expenses allows for meaningful comparisons between the company’s core business operating results and those of other companies, as well as providing management with an important tool for financial and operational decision making and for evaluating the company’s own core business operating results over different periods of time.
  
The company’s adjusted EBITDA measure may not provide information that is directly comparable to that provided by other companies in its industry, as other companies in the company’s industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. The Company’s 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. Management does not consider adjusted EBITDA to be a substitute for, or superior to, the information provided by GAAP financial results.

	For the Three Months Ended								For the Six Months Ended
	June 30,								June 30,
	2021				2020				2021				2020
Net income (loss)	$	1,697,122			$	(12,162	)		$	1,738,320			$	(1,108,194	)
Depreciation and amortization		394,794				402,385				775,572				798,210
Amortization of deferred gain		–				(12,359	)			–				(53,838	)
Stock-based compensation expense		465,336				85,378				903,730				293,139
Interest expense		169,031				150,186				319,013				218,970
Interest income		(61,798	)			(99,343	)			(67,098	)			(123,980	)
PPP loan and interest forgiveness		(1,514,354	)			–				(1,514,354	)			–
Provision (benefit) for income taxes		235,293				(441,511	)			295,815				(908,809	)
Adjusted EBITDA	$	1,385,424			$	72,574			$	2,450,998			$	(884,502	)

Adjusted EPS excludes the impact of certain items and therefore has not been calculated in accordance with GAAP. Management believes that exclusion of certain selected items assists in providing a more complete understanding of the company’s underlying results and trends and allows for comparability with its peer company index and industry. Management uses this measure along with the corresponding GAAP financial measures to manage the company’s business and to evaluate its performance compared to prior periods and the marketplace. The company defines Non-GAAP (loss) income as (loss) or income before amortization, stock-based compensation, expenses related to discontinued operations, impairment of long-lived assets and non-recurring acquisition costs. For this reporting period, it excludes PPP loan forgiveness, which the company does not anticipate will reoccur in the foreseeable future. Adjusted EPS expresses adjusted (loss) income 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. Management expects 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 the company’s presentation of these non-GAAP financial measures that these costs are unusual, infrequent or non-recurring.  

The following table reconciles net loss attributable to common stockholders and diluted earnings per share:

	For the Three Months Ended								For the Six Months Ended
	June 30,								June 30,
	2021				2020				2021				2020
Net income (loss)	$	1,697,122			$	(12,162	)		$	1,738,320			$	(1,108,194	)
Amortization of intangibles		163,901				174,525				327,801				349,051
Stock-based compensation expense		465,336				85,378				903,730				293,139
PPP loan and interest forgiveness		(1,514,354	)			–				(1,514,354	)			–
Non-GAAP net income (loss)	$	812,005			$	247,741			$	1,455,497			$	(466,004	)
Non-GAAP net income (loss) per share:
Basic	$	0.04			$	0.02			$	0.08			$	(0.03	)
Diluted	$	0.04			$	0.01			$	0.08			$	(0.03	)
Weighted average common shares outstanding:
Basic		18,513,620				16,488,325				17,934,022				16,410,660
Diluted		19,735,383				16,867,921				19,305,842				16,410,660

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. These statements are based on the company’s current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by One Stop Systems or its partners that any of our plans or expectations will be achieved, including but not limited to, to our management’s expectations for revenue growth generated by new products and design wins. 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 Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and we undertake 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 Contact:
Katie Rivera
One Stop Systems, Inc.
Tel (760) 745-9883
Email contact

Investor Relations:
Ronald Both or Justin Lumley
CMA
Tel (949) 432-7557
Email contact

ONE STOP SYSTEMS, INC. (OSS)

UNAUDITED CONSOLIDATED BALANCE SHEETS

	Unaudited
	June 30,				December 31,
	2021				2020
ASSETS
Current assets
Cash and cash equivalents	$	3,975,069			$	6,316,921
Short-term investments		14,524,249				–
Accounts receivable, net		6,527,109				7,458,383
Inventories, net		12,411,490				9,647,504
Prepaid expenses and other current assets		996,801				655,708
Total current assets		38,434,718				24,078,516
Property and equipment, net		3,218,341				3,487,178
Deposits and other		48,155				81,709
Deferred tax assets, net		3,485,709				3,698,593
Goodwill		7,120,510				7,120,510
Intangible assets, net		334,456				662,257
	$	52,641,889			$	39,128,763
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	4,149,482			$	976,420
Accrued expenses and other liabilities		3,036,793				3,481,444
Current portion of notes payable, net of debt discount of $0 and
$2,047, respectively		1,777,715				1,365,204
Current portion of related party notes payable, net of debt discount
of $0 and $6,726, respectively		–				199,943
Current portion of senior secured convertible note, net of debt discounts of $74,458 and $256,242, respectively		2,516,451				1,789,212
Total current liabilities		11,480,441				7,812,223
Senior secured convertible note, net of current portion and debt discounts of $0 and $14,107, respectively		–				531,347
Paycheck protection program note payable		–				1,499,360
Total liabilities		11,480,441				9,842,930
Commitments and contingencies
Stockholders’ equity
Common stock, $.0001 par value; 50,000,000 shares authorized;
18,538,689 and 16,684,424 shares issued and outstanding, respectively		1,854				1,668
Additional paid-in capital		41,037,948				30,758,354
Accumulated other comprehensive income		145,062				287,547
Accumulated deficit		(23,416	)			(1,761,736	)
Total stockholders’ equity		41,161,448				29,285,833
	$	52,641,889			$	39,128,763

ONE STOP SYSTEMS, INC. (OSS)

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2021				2020				2021				2020
Revenue	$	14,905,009			$	11,625,327			$	28,220,761			$	24,984,964
Cost of revenue		10,252,265				8,300,132				19,135,233				18,264,082
Gross profit		4,652,744				3,325,195				9,085,528				6,720,882
Operating expenses:
General and administrative		1,648,785				1,877,358				3,806,404				4,391,423
Marketing and selling		1,479,292				845,098				2,647,193				2,034,449
Research and development		1,008,017				1,008,625				1,840,250				2,212,050
Total operating expenses		4,136,094				3,731,081				8,293,847				8,637,922
Income (loss) from operations		516,650				(405,886	)			791,681				(1,917,040	)
Other income (expense), net:
Interest income		61,798				99,343				67,098				123,980
Interest expense		(169,031	)			(150,186	)			(319,013	)			(218,970	)
Other income (expense), net		1,522,998				3,056				1,494,369				(4,973	)
Total other income (expense), net		1,415,765				(47,787	)			1,242,454				(99,963	)
Income (loss) before income taxes		1,932,415				(453,673	)			2,034,135				(2,017,003	)
Provision (benefit) for income taxes		235,293				(441,511	)			295,815				(908,809	)
Net income (loss)	$	1,697,122			$	(12,162	)		$	1,738,320			$	(1,108,194	)
Net income (loss) per share:
Basic	$	0.09			$	(0.00	)		$	0.10			$	(0.07	)
Diluted	$	0.09			$	(0.00	)		$	0.09			$	(0.07	)
Weighted average common shares
outstanding:
Basic		18,513,620				16,488,325				17,934,022				16,410,660
Diluted		19,735,383				16,488,325				19,305,842				16,410,660

Source: One Stop Systems, Inc.

Friday, August 13, 2021

One Stop Systems Inc. (OSS)
Second Quarter Tops Estimates; Raising PT

One Stop Systems Inc is US-based company which is principally engaged in designing, manufacturing, marketing high-end systems for high performance computing (HPC) applications. The company offers custom servers, compute accelerators, solid-state storage arrays and system expansion systems. The product line of the company includes GPU Appliances, GPU Expansion, GPUs and co-processors, Flash storage arrays, Flash storage expansion, Servers, Disk Arrays, Desktop computing appliances, accessories and parts. The company delivers high-end technology to customers through the sale of equipment and software for use on their premises or through remote cloud access to secure data centres housing technology.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

2Q21 Results. Revenue totaled $14.9 million, up 12% sequentially and 28% year-over-year. OSS reported GAAP EPS of $0.09 compared to $0.00 last year. Adjusted EPS for the second quarter of 2021 was $0.04, compared to $0.01 last year. Adjusted EBITDA rose to $1.4 million, up $1.3 million year-over-year. We had projected revenue of $14.4 million and adjusted EPS $0.03.


Business Pipeline.  During the quarter, One Stop Systems won three more $1+ million programs, bringing the YTD total to six. One of the wins was with a major vehicle supplier in Germany, expanding the Company’s footprint in the autonomous vehicle market. The pipeline remains robust with some 17 $1+ million opportunities being worked on …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Comtech Telecommunications Corp. Awarded $1.0 Million Contract for 5G Support with a Tier-One U.S. Carrier

 

MELVILLE, N.Y.–(BUSINESS WIRE)–Aug. 11, 2021– 
August 11, 2021 — 
Comtech Telecommunications Corp. (NASDAQ: CMTL), a global leading provider of next-generation 911 emergency systems and secure wireless communications technologies, announced today, that during its fourth quarter of fiscal 2021, it was awarded a contract for approximately 
$1.0 million for operations support features and enhancements supporting 5G applications with a major tier-one mobile network operator in 
the United States.

“Comtech is dedicated to supporting 5G technologies for our customers worldwide,” said  Fred Kornberg, Chairman of the Board and Chief Executive Officer of 
Comtech Telecommunications Corp. “Our long-term relationship with this customer demonstrates their trust in us to support them through the next steps in this technology.”

The contract was awarded to Comtech’s Trusted Location group, a leading provider of precise device location, mapping and messaging solutions for public safety, mobile network operators, and enterprise solutions. Sold around the world to mobile network operators, government agencies and Fortune 100 enterprises, our platforms locate, map, track and message. For more information, visit www.comtechlocation.com.

Comtech Telecommunications Corp. is a leading provider of next-generation 911 emergency systems and critical wireless communication technologies to commercial and government customers around the world. Headquartered in 
Melville, New York and with a passion for customer success, 
Comtech designs, produces and markets advanced and secure wireless solutions to customers in more than 100 countries. For more information, please visit www.comtechtel.com.

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s 
Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such 
Securities and Exchange Commission filings.

Comtech Investor Relations:
631-962-7005
investors@comtech.com

Source: 
Comtech Telecommunications Corp.

Comtech Telecommunications Corp. Awarded $1.0 Million Contract for 5G Support with a Tier-One U.S. Carrier

 

MELVILLE, N.Y.–(BUSINESS WIRE)–Aug. 11, 2021– 
August 11, 2021 — 
Comtech Telecommunications Corp. (NASDAQ: CMTL), a global leading provider of next-generation 911 emergency systems and secure wireless communications technologies, announced today, that during its fourth quarter of fiscal 2021, it was awarded a contract for approximately 
$1.0 million for operations support features and enhancements supporting 5G applications with a major tier-one mobile network operator in 
the United States.

“Comtech is dedicated to supporting 5G technologies for our customers worldwide,” said  Fred Kornberg, Chairman of the Board and Chief Executive Officer of 
Comtech Telecommunications Corp. “Our long-term relationship with this customer demonstrates their trust in us to support them through the next steps in this technology.”

The contract was awarded to Comtech’s Trusted Location group, a leading provider of precise device location, mapping and messaging solutions for public safety, mobile network operators, and enterprise solutions. Sold around the world to mobile network operators, government agencies and Fortune 100 enterprises, our platforms locate, map, track and message. For more information, visit www.comtechlocation.com.

Comtech Telecommunications Corp. is a leading provider of next-generation 911 emergency systems and critical wireless communication technologies to commercial and government customers around the world. Headquartered in 
Melville, New York and with a passion for customer success, 
Comtech designs, produces and markets advanced and secure wireless solutions to customers in more than 100 countries. For more information, please visit www.comtechtel.com.

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s 
Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such 
Securities and Exchange Commission filings.

Comtech Investor Relations:
631-962-7005
investors@comtech.com

Source: 
Comtech Telecommunications Corp.

Tuesday, August 10, 2021

Information Services (III)
Excellent 2Q21. Will the Momentum Continue?

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 70 of the top 100 enterprises in the world, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Strong 2Q21 Results. Revenue of $70.6 million rose 23.0% y-o-y and exceeded consensus of $65.5 million and our estimate of $65 million. ISG reported net income of $4.1 million, or $0.08 per share, up from $612,000, and $0.01, respectively, last year. Adjusted EPS was $0.12 and adjusted EBITDA totaled $9.7 million. We had forecast EPS of $0.04, adjusted EPS of $0.09, and adjusted EBITDA of $8.0 million.


All Segments Contributing.  ISG saw solid contribution from each of its geographic segments as clients doubled down on their digital investments. Reported revenue in the Americas rose 28%, Europe was up 13% and 4% on a constant currency basis, while Asia Pacific revenues rose 36% on a reported basis and 18% on a constant currency basis …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Comtech Telecommunications Corp. Awarded $1.0 Million Contract for High-Power Amplifiers

 

MELVILLE, N.Y.–(BUSINESS WIRE)–Aug. 10, 2021– 
August 10, 2021— 
Comtech Telecommunications Corp. (NASDAQ: CMTL), a global leading provider of next-generation 911 emergency systems and secure wireless communications technologies, announced today, that during its fourth quarter of fiscal 2021, it was awarded a 
$1.0 million contract for high-power amplifiers from a major domestic prime contractor.

These amplifiers, which utilize the latest in solid-state GaN transistor technology, are key transmit elements in a data communication system. They add to an installed base of 
Comtech solid-state high-power RF amplifiers previously delivered to this major domestic prime contractor.

“This contract demonstrates our continued leadership position in providing high-power communications technology and the ongoing demand for our solid-state high-power amplifiers utilized by major OEMs in both domestic and international markets,” said  Fred Kornberg, Chairman of the Board and Chief Executive Officer of 
Comtech Telecommunications Corp.

The contract was awarded to 
Comtech PST Corp. (www.comtechpst.com) which is a leading independent supplier of high-power, high performance RF microwave amplifiers and control components for use in a broad spectrum of applications including defense, medical, satellite communications systems and instrumentation.

Comtech Telecommunications Corp. is a leading provider of next-generation 911 emergency systems and critical wireless communication technologies to commercial and government customers around the world. Headquartered in 
Melville, New York and with a passion for customer success, 
Comtech designs, produces and markets advanced and secure wireless solutions to customers in more than 100 countries. For more information, please visit www.comtechtel.com.

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s 
Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such 
Securities and Exchange Commission filings.

Comtech Investor Relations:
631-962-7005
investors@comtech.com

Source: 
Comtech Telecommunications Corp.