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UNAUDITED PRO FORMA CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

 

OVERVIEW

On December 30, 2025, One Stop Systems ("OSS" or the "Company") signed and closed a definitive agreement to sell all assets and operations of its Bressner Technology GmbH ("Bressner" or "OSS GmbH") to Hiper Euro Gmbh ("Hiper") (the "Disposition" or "Separation") for $22.4M, subject to adjustment for final closing working capital balances. The Disposition constituted a significant disposition for purposes of Item 2.01 of Form 8-K. As a result, the Company prepared the accompanying unaudited pro forma consolidated financial statements in accordance with Article 11 of Regulation S-X.

 

BASIS OF PRESENTATION

The historical financial information as of and for the nine months ended September 30, 2025 has been derived from and should be read in conjunction with the historical unaudited condensed consolidated financial statements of One Stop Systems, Inc., included in the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2025 filed with the SEC on November 5, 2025 and the assumptions outlined in the Notes to the Unaudited Pro Forma Consolidated Condensed Financial Statements below. The historical financial information for the years ended December 31, 2024 and 2023 has been derived from and should be read in conjunction with the historical audited consolidated financial statements of One Stop Systems, Inc. (OSS), included in the Company's Annual Report on Form 10-K for the years ended December 31, 2024 and 2023, filed with the SEC on March 19, 2025 and March 21, 2024 respectively, and the assumptions outlined in the Notes to the Unaudited Pro Forma Consolidated Condensed Financial Statements below.

The unaudited pro forma condensed consolidated statement of operations for the nine months ended September 30, 2025 and for the years ended December 31, 2024 and 2023 reflect pro forma results of the Company's operations as if the Separation had occurred on January 1, 2023. The unaudited pro forma condensed consolidated balance sheet as of September 30, 2025, gives effect to the Separation as if it had occurred on that date.


The unaudited pro forma condensed consolidated financial statements were derived from the historical consolidated financial statements of the Company, which were prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP"). The unaudited pro forma condensed consolidated financial statements were prepared in accordance with Article 11 of Regulation S-X. The unaudited pro forma financial information is based upon available information and assumptions that management considers to be reasonable, and such assumptions have been made solely for purposes of developing such unaudited pro forma financial information for illustrative purposes in compliance with the disclosure requirements of the SEC. The unaudited pro forma condensed consolidated financial statements were prepared for illustrative and informational purposes only and are not intended to represent what the Company's results of operations or financial position would have been had the Separation occurred on the dates indicated. The unaudited pro forma condensed consolidated financial statements should not be considered indicative of the Company's future results of operations or financial position. The actual financial position and results of operations may differ significantly from the unaudited pro forma condensed consolidated financial statements presented herein due to a variety of factors.

 

ONE STOP SYSTEMS, INC. (OSS)

 

Unaudited Pro Forma Condensed Consolidated Balance Sheet

 

As of September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical (as reported)

 

 

Separation of OSS GmbH (a)

 

 

Other Transaction Adjustments

 

 

Notes

 

Pro Forma

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

6,508,020

 

 

$

(3,765,771

)

 

$

19,553,612

 

 

 (b)

 

$

22,295,862

 

Restricted cash

 

 

-

 

 

 

-

 

 

 

2,200,000

 

 

 (c)

 

 

2,200,000

 

Accounts receivable, net

 

 

12,024,553

 

 

 

(5,139,138

)

 

 

-

 

 

 

 

 

6,885,415

 

Inventories, net

 

 

15,326,919

 

 

 

(9,673,787

)

 

 

-

 

 

 

 

 

5,653,132

 

Prepaid expenses and other current assets

 

 

2,138,861

 

 

 

(1,392,669

)

 

 

-

 

 

 

 

 

746,192

 

Total current assets

 

 

35,998,353

 

 

 

(19,971,365

)

 

 

21,753,612

 

 

 

 

 

37,780,600

 

Property and equipment, net

 

 

1,519,045

 

 

 

(668,746

)

 

 

-

 

 

 

 

 

850,300

 

Operating lease right-of use assets

 

 

4,012,747

 

 

 

(2,744,865

)

 

 

-

 

 

 

 

 

1,267,883

 

Deposits and other

 

 

38,093

 

 

 

-

 

 

 

-

 

 

 

 

 

38,093

 

Goodwill

 

 

1,489,722

 

 

 

(1,489,722

)

 

 

-

 

 

 

 

 

-

 

Total Assets

 

$

43,057,960

 

 

$

(24,874,698

)

 

$

21,753,612

 

 

 

 

$

39,936,874

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

6,033,999

 

 

$

(4,018,712

)

 

$

-

 

 

 

 

$

2,015,287

 

Accrued expenses and other liabilities

 

 

4,145,292

 

 

 

(1,854,058

)

 

 

450,000

 

 

 (d)

 

 

2,741,234

 

Current portion of operating lease obligation

 

 

513,093

 

 

 

(299,209

)

 

 

-

 

 

 

 

 

213,884

 

Borrowing on bank lines of credit

 

 

1,000,000

 

 

 

-

 

 

 

-

 

 

 

 

 

1,000,000

 

Current portion of notes payable

 

 

1,173,116

 

 

 

(1,173,116

)

 

 

-

 

 

 

 

 

-

 

Total current liabilities

 

 

12,865,500

 

 

 

(7,345,095

)

 

 

450,000

 

 

 

 

 

5,970,405

 

Deferred tax liability, net

 

 

39,781

 

 

 

(39,781

)

 

 

-

 

 

 (e)

 

 

-

 

Operating lease obligation, net of current portion

 

 

3,812,931

 

 

 

(2,502,068

)

 

 

-

 

 

 

 

 

1,310,863

 

Total liabilities

 

 

16,718,212

 

 

 

(9,886,943

)

 

 

450,000

 

 

 

 

 

7,281,268

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

26,339,748

 

 

 

(14,987,755

)

 

 

21,303,612

 

 

 (f)

 

 

32,655,605

 

Total Liabilities and Stockholders' Equity

 

$

43,057,960

 

 

$

(24,874,698

)

 

$

21,753,612

 

 

 

 

$

39,936,873

 

 

ONE STOP SYSTEMS, INC. (OSS)

Unaudited Pro Forma Condensed Consolidated Statement of Operations

 

 

For the nine months ended September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical (as reported)

 

 

Separation of OSS GmbH (a)

 

 

Pro Forma

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

Product

 

$

44,032,955

 

 

$

(24,893,833

)

 

$

19,139,123

 

 

Customer funded development

 

 

1,090,916

 

 

 

-

 

 

 

1,090,916

 

 

 

 

45,123,871

 

 

 

(24,893,833

)

 

 

20,230,038

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

Product

 

 

29,325,649

 

 

 

(18,764,961

)

 

 

10,560,688

 

 

Customer funded development

 

 

696,580

 

 

 

-

 

 

 

696,580

 

 

 

 

30,022,229

 

 

 

(18,764,961

)

 

 

11,257,267

 

 

Gross profit (loss)

 

 

15,101,642

 

 

 

(6,128,871

)

 

 

8,972,771

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

7,097,346

 

 

 

(1,553,526

)

 

 

5,543,820

 

 

Marketing and selling

 

 

6,872,293

 

 

 

(1,974,157

)

 

 

4,898,135

 

 

Research and development

 

 

4,330,713

 

 

 

(491,864

)

 

 

3,838,849

 

 

Total operating expenses

 

 

18,300,352

 

 

 

(4,019,547

)

 

 

14,280,805

 

 

Income (loss) from operations

 

 

(3,198,710

)

 

 

(2,109,324

)

 

 

(5,308,034

)

 

Other (expense) income, net:

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

159,240

 

 

 

555

 

 

 

159,795

 

 

Interest expense

 

 

(42,941

)

 

 

40,517

 

 

 

(2,424

)

 

Other (expense) income, net

 

 

(91,930

)

 

 

108,330

 

 

 

16,400

 

 

Total other (expense) income, net

 

 

24,369

 

 

 

149,402

 

 

 

173,771

 

 

Income (loss) before income taxes

 

 

(3,174,341

)

 

 

(1,959,922

)

 

 

(5,134,264

)

 

Provision for income taxes

 

 

600,535

 

 

 

(600,535

)

 

 

-

 

 

Net income (loss)

 

$

(3,774,876

)

 

$

(1,359,387

)

 

$

(5,134,264

)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.17

)

 

 

 

 

$

(0.24

)

 

Diluted

 

$

(0.17

)

 

 

 

 

$

(0.24

)

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

Basic

 

 

21,675,802

 

 

 

 

 

 

21,675,802

 

 

Diluted

 

 

21,675,802

 

 

 

 

 

 

21,675,802

 

 

 

ONE STOP SYSTEMS, INC. (OSS)

Unaudited Pro Forma Condensed Consolidated Statement of Operations

 

 

For the year ended December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical (as reported)

 

 

Separation of OSS GmbH (a)

 

 

Pro Forma

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

Product

 

$

51,003,350

 

 

$

(30,135,550

)

 

$

20,867,800

 

 

Customer funded development

 

 

3,691,009

 

 

 

-

 

 

 

3,691,009

 

 

 

 

54,694,358

 

 

 

(30,135,550

)

 

 

24,558,809

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

Product

 

 

42,953,344

 

 

 

(23,040,166

)

 

 

19,913,178

 

 

Customer funded development

 

 

4,022,707

 

 

 

 

 

 

4,022,707

 

 

 

 

46,976,051

 

 

 

(23,040,166

)

 

 

23,935,886

 

 

Gross profit (loss)

 

 

7,718,307

 

 

 

(7,095,384

)

 

 

622,923

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

8,971,909

 

 

 

(1,768,281

)

 

 

7,203,628

 

 

Marketing and selling

 

 

8,005,982

 

 

 

(2,389,278

)

 

 

5,616,704

 

 

Research and development

 

 

4,097,229

 

 

 

(631,152

)

 

 

3,466,077

 

 

Total operating expenses

 

 

21,075,120

 

 

 

(4,788,711

)

 

 

16,286,409

 

 

Income (loss) from operations

 

 

(13,356,813

)

 

 

(2,306,672

)

 

 

(15,663,486

)

 

Other (expense) income, net:

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

477,745

 

 

 

-

 

 

 

477,745

 

 

Interest expense

 

 

(74,116

)

 

 

70,089

 

 

 

(4,027

)

 

Other (expense) income, net

 

 

45,353

 

 

 

(21,313

)

 

 

24,040

 

 

Total other (expense) income, net

 

 

448,982

 

 

 

48,776

 

 

 

497,758

 

 

Income (loss) before income taxes

 

 

(12,907,831

)

 

 

(2,257,896

)

 

 

(15,165,728

)

 

Provision for income taxes

 

 

726,502

 

 

 

(723,942

)

 

 

2,560

 

 

Net income (loss)

 

$

(13,634,333

)

 

$

(1,533,954

)

 

$

(15,168,288

)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.65

)

 

 

 

 

$

(0.72

)

 

Diluted

 

$

(0.65

)

 

 

 

 

$

(0.72

)

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

Basic

 

 

20,953,397

 

 

 

 

 

 

20,953,397

 

 

Diluted

 

 

20,953,397

 

 

 

 

 

 

20,953,397

 

 

 

ONE STOP SYSTEMS, INC. (OSS)

Unaudited Pro Forma Condensed Consolidated Statement of Operations

 

 

For the year ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical (as reported)

 

 

Separation of OSS GmbH (a)

 

 

Pro Forma

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

Product

 

$

59,200,580

 

 

$

(32,086,910

)

 

$

27,113,670

 

 

Customer funded development

 

 

1,696,217

 

 

 

-

 

 

 

1,696,217

 

 

 

 

60,896,797

 

 

 

(32,086,910

)

 

 

28,809,887

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

Product

 

 

41,907,604

 

 

 

(24,397,274

)

 

 

17,510,331

 

 

Customer funded development

 

 

1,034,571

 

 

 

-

 

 

 

1,034,571

 

 

 

 

42,942,175

 

 

 

(24,397,274

)

 

 

18,544,901

 

 

Gross profit (loss)

 

 

17,954,622

 

 

 

(7,689,636

)

 

 

10,264,986

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

9,264,447

 

 

 

(1,953,249

)

 

 

7,311,198

 

 

Impairment of goodwill

 

 

5,630,788

 

 

 

-

 

 

 

5,630,788

 

 

Marketing and selling

 

 

6,651,516

 

 

 

(1,664,941

)

 

 

4,986,575

 

 

Research and development

 

 

4,331,024

 

 

 

(517,564

)

 

 

3,813,460

 

 

Total operating expenses

 

 

25,877,775

 

 

 

(4,135,754

)

 

 

21,742,021

 

 

Income (loss) from operations

 

 

(7,923,153

)

 

 

(3,553,882

)

 

 

(11,477,035

)

 

Other (expense) income, net:

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

544,958

 

 

 

-

 

 

 

544,958

 

 

Interest expense

 

 

(117,774

)

 

 

119,386

 

 

 

1,612

 

 

Employee retention credit

 

 

1,716,727

 

 

 

-

 

 

 

1,716,727

 

 

Other (expense) income, net

 

 

(9,806

)

 

 

28,893

 

 

 

19,086

 

 

Total other (expense) income, net

 

 

2,134,105

 

 

 

148,278

 

 

 

2,282,383

 

 

Income (loss) before income taxes

 

 

(5,789,048

)

 

 

(3,405,603

)

 

 

(9,194,651

)

 

Provision for income taxes

 

 

927,128

 

 

 

(974,830

)

 

 

(47,702

)

 

Net income (loss)

 

$

(6,716,176

)

 

$

(2,430,773

)

 

$

(9,146,949

)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.32

)

 

 

 

 

$

(0.44

)

 

Diluted

 

$

(0.32

)

 

 

 

 

$

(0.44

)

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

Basic

 

 

20,854,777

 

 

 

 

 

 

20,854,777

 

 

Diluted

 

 

20,854,777

 

 

 

 

 

 

20,854,777

 

 

 

NOTES TO THE UNAUDITED PRO FORMA CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

 

 

(a)
Represents the elimination of the operations, assets, liabilities, and equity of OSS GmbH.
(b)
Reflects the cash consideration received in exchange for the sale of the business, net of certain holdbacks and transaction expenses paid in cash at closing, as follows:

Total purchase consideration

 

$

22,417,422

 

Escrow

 

 

(2,200,000

)

Indemnity holdback

 

 

(59,310

)

Transaction expenses paid at closing

 

 

(604,500

)

Pro forma adjustment to cash and cash equivalents

 

$

19,553,612

 

 

(c)
Reflects amount deposited into an escrow account subject to adjustment and release upon determination of Final Net Working Capital.
(d)
Represents estimated unaccrued one-time transaction costs, which were recorded as an accrual in the unaudited pro forma condensed consolidated balance sheet within accrued and other liabilities. These costs were primarily related to professional fees associated with finance, tax, and legal advisory.
(e)
US deferred tax assets are fully offset by valuation allowance.
(f)
Reflects the effect on total stockholders' equity of the separation adjustments described in footnotes (b) to (d) above.