Research Solutions Inc (RSSS) 2024 Q1 法說會逐字稿

Thank you for standing by. This is the conference operator and welcome to the Research Solutions, Inc. first-quarter 2024 earnings conference call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. (Operator Instructions) John Beisler, Investor Relations. Please go ahead.

謝謝你的支持。我是會議主辦方，歡迎參加 Research Solutions, Inc. 2024 年第一季財報電話會議。提醒一下，所有與會者都處於僅聽模式，並且正在錄製會議。演講結束後，將有機會提問。 （操作員說明）John Beisler，投資者關係。請繼續。

Thank you, operator, and good afternoon, everyone. Thank you for joining us today for the Research Solutions' first-quarter fiscal 2024 earnings call. On the call today are Roy Olivier, President and Chief Executive Officer; and Bill Nurthern, Chief Financial Officer. After the market closed this afternoon, the company issued a press release announcing its results for the first-quarter of fiscal 2024. The release is available on the company's website at researchsolutions.com.

謝謝接線員，大家下午好。感謝您今天參加研究解決方案 2024 財年第一季財報電話會議。今天參加電話會議的是總裁兼執行長 Roy Olivier；和財務長比爾‧納瑟恩 (Bill Nuthern)。今天下午收盤後，該公司發布了一份新聞稿，宣布了 2024 財年第一季的業績。新聞稿可在該公司網站 Researchsolutions.com 上查閱。

Before Roy and Bill begin their prepared remarks, I would like to remind you that some of the statements made today will be forward-looking and are made under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those expressed or implied due to a variety of factors. We refer you to Research Solutions' recent filings with the SEC for a more detailed discussion of the risks that could impact the company's future operating results and financial condition. Also on today's call, management will reference certain non-GAAP financial measures, which we believe provide useful information for investors.

在羅伊和比爾開始準備好的發言之前，我想提醒您，今天發表的一些陳述具有前瞻性，並且是根據1995 年《私人證券訴訟改革法案》做出的。實際結果可能與明示或暗示的結果存在重大差異由於多種因素。我們建議您參閱 Research Solutions 最近向 SEC 提交的文件，以更詳細地討論可能影響該公司未來營運績效和財務狀況的風險。此外，在今天的電話會議上，管理層還將參考某些非公認會計準則財務指標，我們相信這些指標為投資者提供了有用的信息。

For reconciliation of those measures to GAAP measures, we've included in the earnings press release issued this afternoon. Finally, I would like to remind everyone that this call will be recorded and made available for replay via a link on the company's website. I would now like to turn the call over to Roy W. Olivier. Roy?

為了使這些措施與公認會計準則措施一致，我們已將其納入今天下午發布的收益新聞稿中。最後，我想提醒大家，這次通話將會被錄音，並可透過公司網站上的連結重播。我現在想把電話轉給羅伊·W·奧利維爾。羅伊？

Well, thank you, John, and thanks to everyone for joining us for our first-quarter of fiscal 2024 results. During the quarter, we had some great things going on, including record ARR of over $11 million, 16% overall revenue growth. and completing the acquisition of ResoluteAI. This acquisition will help us launch an advanced discovery or search tool, which has been the number one requested tool by our customers. It will also help us create new sources of revenue, both in terms of new products and in new workflows that expand our total addressable market and represent a strong cross-sell opportunity for us.

好吧，謝謝約翰，也謝謝大家與我們一起了解 2024 財年第一季的業績。本季度，我們發生了一些很棒的事情，包括創紀錄的 ARR 超過 1,100 萬美元，整體收入成長 16%。並完成對ResoluteAI的收購。此次收購將幫助我們推出先進的發現或搜尋工具，這是我們客戶最需要的工具。它還將幫助我們在新產品和新工作流程方面創造新的收入來源，從而擴大我們的總目標市場，並為我們帶來強大的交叉銷售機會。

There's a lot of things good going on around the business, including in the marketing, sales, product, and M&A segments, which I'll discuss with you in more detail after Bill's comments. The quarter is a bit messy in terms of our EBITDA performance due to several costs that Bill will discuss in detail. I'm happy with the core business EBITDA performance in Q1. Now I'd like to pass the call over to Bill to walk through our fiscal first-quarter 2024 financial results in detail, and then I'll wrap up with some comments. Bill?

業務方面有很多好的事情發生，包括行銷、銷售、產品和併購領域，我將在比爾發表評論後與您更詳細地討論這些方面。由於比爾將詳細討論的幾項成本，本季我們的 EBITDA 表現有點混亂。我對第一季核心業務 EBITDA 的表現感到滿意。現在，我想將電話轉給 Bill，詳細介紹我們 2024 年第一季的財務業績，然後我將發表一些評論。帳單？

Thank you, Roy, and good afternoon, everyone. Before I begin, I'd like to remind everyone that our first-quarter results include the acquisition of ResoluteAI on July 28, and as such, are inclusive of approximately two months of results from Resolute. Please note that we have integrated Resolute's operations into our existing business. And as a result, it will not be practical to report on Resolute as a separate entity.

謝謝羅伊，大家下午好。在開始之前，我想提醒大家，我們的第一季業績包括 7 月 28 日收購的 ResoluteAI，因此包含 Resolute 大約兩個月的業績。請注意，我們已將 Resolute 的業務整合到我們現有的業務中。因此，將 Resolute 作為一個單獨的實體進行報告是不切實際的。

That said, given it was only part of our operations for two months this quarter, I am able to provide some insight for this quarter only as to how it affected our ARR and P&L performance. Lastly, it should be noted Resolute's revenue is all captured on the platforms line of our P&L. Total revenue for the first quarter of fiscal 2024 was $10.1 million, a 16% increase from the first-quarter of fiscal 2023. The growth rate, excluding Resolute. was approximately 13%.

也就是說，鑑於這只是我們本季兩個月營運的一部分，我只能就本季它如何影響我們的 ARR 和損益表現提供一些見解。最後，應該指出的是，Resolute 的收入全部記錄在我們損益表的平台行中。 2024財年第一季總營收為1,010萬美元，較2023財年第一季成長16%。成長率不包括Resolute。約為13%。

Our platform subscription revenue increased 29% to $2.6 million. The growth was primarily driven by an increase of platform deployments from last year and the contribution from Resolute, which added a little over $200,000 of platform revenue for quarter. We ended the quarter with $11 million in annual recurring revenue, up 32% year-over-year, reflecting our continued sales and upselling efforts, low churn of existing platform subscribers, and approximately $1.35 million of new ARR associated with the Resolute transaction. Please see today's press release for how we define and use annual recurring revenue and other non-GAAP items.

我們的平台訂閱收入成長了 29%，達到 260 萬美元。這一增長主要得益於去年平台部署的增加以及 Resolute 的貢獻，該季度平台收入增加了略高於 20 萬美元。截至本季末，我們的年度經常性收入為1,100 萬美元，年增32%，反映出我們持續的銷售和追加銷售努力、現有平台訂戶的低流失率以及與Resolute 交易相關的約135 萬美元的新ARR。請參閱今天的新聞稿，以了解我們如何定義和使用年度經常性收入和其他非公認會計準則項目。

Our transaction revenue increased almost 12% from the first-quarter of fiscal 2023 to $7.5 million. And our total active customer count for the quarter was 1,395, a net increase of 175 from the same period a year ago. The increases are primarily due to organic growth, with additional growth resulting from higher transaction volumes related to contracts transferred from the FIZ Karlsruhe transaction, effective on January 1, 2023. Gross margin for the first quarter was 40.1%, a 150-basis-point improvement over the first quarter of 2023.

我們的交易收入較 2023 財年第一季成長近 12%，達到 750 萬美元。本季我們的活躍客戶總數為 1,395 名，比去年同期淨增加 175 名。這些成長主要是由於有機成長，而額外的成長是由於與2023 年1 月1 日生效的卡爾斯魯厄FIZ 交易轉移的合約相關的交易量增加所致。第一季毛利率為40.1%，提高了150 個基點較 2023 年第一季有所改善。

The increase is due to the ongoing revenue mix shift towards our higher margin platforms business. The platform business recorded gross margin of 85.3%, a decrease compared to 88.6% in the prior year quarter. The decrease is related to the inclusion of Resolute's platform revenues, which generate a lower margin. Going forward, as we consolidate Resolute into our business, I suspect our platform gross margin will decrease. However, it should remain in a range between 80% and 85%.

這一成長是由於收入結構持續轉向利潤率更高的平台業務。平台業務毛利率為85.3%，較去年同期的88.6%下降。這一下降與 Resolute 平台收入的計入有關，該收入產生的利潤率較低。展望未來，隨著我們將 Resolute 整合到我們的業務中，我懷疑我們的平台毛利率將會下降。然而，它應該保持在 80% 到 85% 之間的範圍內。

Gross margin in our transaction business increased 90-basis-points to 24.3%. The increase was primarily attributable to pricing initiatives, resulting in increased copyright margins. Total operating expenses in the quarter were $5.1 million compared to $3.2 million in the prior year quarter. This quarter's results include roughly $1.2 million related to a series of unique items, including $542,000 in proxy related expenses, $339,000 in legal costs associated with our M&A activities, and $280,000 in costs associated with the termination of our former Executive Chairman.

交易業務毛利率成長 90 個基點至 24.3%。這一增長主要歸因於定價舉措，導致版權利潤率增加。本季總營運費用為 510 萬美元，去年同期為 320 萬美元。本季度的業績包括與一系列獨特項目相關的約120 萬美元，其中包括542,000 美元的代理相關費用、與我們的併購活動相關的339,000 美元的法律費用，以及與我們前執行主席的解僱相關的280,000美元的費用。

These costs all appear on the G&A line of the P&L, with the exception of about $80,000 of that costs, which is classified as stock compensation. In addition, Resolute added approximately $300,000 of operating costs in the quarter. Most of which, appear on the technology and product development line in the P&L. Lastly, stock compensation was also up an additional amount of roughly $333,000, related to the expense from the long-term equity bonus plan, where restricted stock shares vest at higher stock prices, which was not implemented until Q2 of last year.

這些成本全部出現在損益表的 G&A 行中，但其中約 80,000 美元的成本除外，該成本被歸類為股票報酬。此外，Resolute 在本季增加了約 30 萬美元的營運成本。其中大部分出現在損益表中的技術和產品開發線上。最後，股票薪酬也額外增加了約 333,000 美元，與長期股權紅利計劃的費用相關，該計劃限制性股票以更高的股價歸屬，該計劃直到去年第二季度才實施。

Net loss for the quarter was $988,000 or $0.04 per share, compared to net income of $215,000 or $0.01 per diluted share in the prior year quarter. Adjusted EBITDA for the quarter was negative $441,000, compared to a positive $433,000 in the year ago quarter. Excluding the unique items I previously noted, adjusted EBITDA would have been approximately $637,000.

本季淨虧損為 988,000 美元，即每股 0.04 美元，而去年同期淨虧損為 215,000 美元，即每股攤薄收益 0.01 美元。本季調整後 EBITDA 為負 441,000 美元，去年同期為正 433,000 美元。排除我之前提到的特殊項目，調整後的 EBITDA 約為 637,000 美元。

Turning to our balance sheet, cash and cash equivalents as of September 30, 2023, were $9.9 million versus $13.5 million on June 30, 2023. The decrease was primarily attributable to the cash used for the Resolute acquisition and payments related to the FIZ acquisition, which collectively totaled about $2.8 million. We did burn approximately $750,000 of cash in the quarter, primarily related to excess legal costs associated with the M&A activities and the proxy matter and the fact that Resolute is presently in a cash burn situation. In addition, I will remind everyone that we pay our executive bonuses and sales commission overages for the prior fiscal year in Q1.

談到我們的資產負債表，截至2023 年9 月30 日，現金和現金等價物為990 萬美元，而2023 年6 月30 日為1,350 萬美元。減少的主要原因是用於Resolute 收購的現金以及與FIZ 收購相關的付款，總計約 280 萬美元。本季我們確實燒掉了大約 75 萬美元的現金，主要與併購活動和代理事宜相關的超額法律費用以及 Resolute 目前處於燒錢狀況有關。此外，我要提醒大家，我們在第一季支付了上一財年的高階主管獎金和銷售佣金超額部分。

As we look ahead, going forward, there are a few key items I would like to note: first, our P&L should be less impacted by the items that affected us in Q1. The proxy costs and separation costs related to the former Executive Chairman have, for the most part, all been expensed. That said, we will continue to work heavily on M&A in Q2 and should expect higher than normal costs related to M&A through Q2, before it tails off from there starting in Q3. Second, performance will still be hampered by a number of factors in Q2.

展望未來，我想指出幾個關鍵事項：首先，我們的損益表受到第一季影響我們的專案的影響應該較小。與前執行主席相關的代理費用和離職費用大部分已支出。也就是說，我們將在第二季繼續大力進行併購工作，並且預計第二季與併購相關的成本將高於正常水平，然後從第三季開始逐漸減少。其次，第二季業績仍將受到多種因素的限制。

Although expensed, we still have some bills to pay from the proxy matter. We'll pay out the separation costs of the former Executive Chairman over time. When you combine this with the high M&A costs and resolute still being in a burn position, Q2 will be another quarter of cash burn. Third, (technical difficulty) cash burn from Resolute will reduce over time and be offset by core cash flow performance, as our business gets past the unique items affecting it in Q1 and Q2.

儘管支出了費用，但我們仍有一些代理事務的帳單需要支付。隨著時間的推移，我們將支付前執行主席的離職費用。當你將這一點與高昂的併購成本結合起來，並且堅決仍處於燒錢狀態時，第二季度將是另一個燒錢的季度。第三，隨著我們的業務克服了第一季和第二季影響它的獨特項目，Resolute 的（技術難度）現金消耗將隨著時間的推移而減少，並被核心現金流表現所抵消。

Fourth, I will remind everyone that we have stated we are working on two other acquisitions, and both of these acquisitions are cash flow positive and will contribute to cash flow to make loans. The net of all this is that I believe we will see improved P&L performance in Q2; however, cash flow will continue to be affected. Once we hit Q3, however, past these items and see an improved, more normalized run rate for the business, as I have stated in the past, (technical difficulty) a number of unique items impacting the business currently, and indeed, these items are material (technical difficulty).

第四，我要提醒大家的是，我們已經說過我們正在進行另外兩項收購，這兩項收購都是正現金流，將有助於現金流發放貸款。所有這一切的最終結果是，我相信我們將在第二季看到損益表現的改善；然而，現金流將繼續受到影響。然而，一旦我們進入第三季度，過了這些項目，就會看到業務的運作率得到改善、更加規範化，正如我過去所說，（技術難度）目前影響業務的許多獨特項目，事實上，這些項目是材料（技術難度）。

Anything that represents a change to the profit and cash flow profile of the business that we saw as we exited fiscal year 2023. Additionally, we are working on acquisition acquisitions that I think will positively affect those numbers. So I'll now turn the call back to Roy. Roy?

2023 財年結束時，我們看到的任何代表業務利潤和現金流狀況變化的事情。此外，我們正在進行收購，我認為這將對這些數字產生積極影響。現在我將把電話轉回給羅伊。羅伊？

Thanks, Bill. The quarter was promising in terms of new business, as our collective bookings of new new, new existing, and Article Galaxy scholar showed strong growth versus last year. All three of those areas overperformed expectation, which is a nice improvement over last year's results and speaks to the improvements we have made in sales process, sales materials, and marketing and lead generation efforts. We underperformed expectations in churn and in upsells.

謝謝，比爾。本季的新業務前景看好，新業務、新現有業務和文章銀河學者的集體預訂量與去年相比呈現強勁增長。所有這三個領域的表現都超出了預期，這比去年的結果有了很大的進步，並說明了我們在銷售流程、銷售材料以及行銷和潛在客戶開發工作方面取得的改進。我們在客戶流失和追加銷售的表現低於預期。

While our net churn rates continue to be over 100%, we remain concerned about our performance in those areas, as some of our customers are downsizing or continue to operate with tight budgets. The good news is that we are seeing very strong lead generation results in the past two months, which leads us to believe that we will see continued strong performance in the new new and new existing sales teams. We've also not seen any material change in our competitive position, very little churn is due to competitive takeaways, and the upsell headwinds continue to be a function of our customers tightening their spending.

雖然我們的淨流失率仍然超過 100%，但我們仍然對我們在這些領域的表現感到擔憂，因為我們的一些客戶正在裁員或繼續在預算緊張的情況下運作。好消息是，我們在過去兩個月中看到了非常強勁的潛在客戶開發結果，這使我們相信我們將在新的和新的現有銷售團隊中看到持續強勁的表現。我們的競爭地位也沒有發生任何重大變化，由於競爭性外賣而造成的客戶流失很少，而追加銷售的逆風仍然是我們的客戶收緊支出的結果。

We did launch some new pricing bundles to drive additional upsells in Q2 that are generating a nice pipeline that we think will help in Q2 and Q3. Turning to product, we did several releases during the quarter, including expanding our AI-related offerings in the platform. We released our beta ChatGPT assistant to expand our capability in the platform, allowing our customers to quickly create ChatGPT article reviews for supported publishers. This is in addition to our AI-based recommendation engine in Article Galaxy and our post-market surveillance tool, where we accelerate the rereview process using this technology.

我們確實推出了一些新的定價捆綁包，以推動第二季的額外銷售，這正在形成一個良好的管道，我們認為這將有助於第二季和第三季。談到產品，我們在本季發布了多個版本，包括擴展平台中與人工智慧相關的產品。我們發布了測試版 ChatGPT 助手，以擴展我們在平台中的功能，使我們的客戶能夠為支援的發布商快速建立 ChatGPT 文章評論。這是我們在 Article Galaxy 中基於人工智慧的推薦引擎和上市後監控工具的補充，我們利用該技術加速了重新審查過程。

We had one small sale with the ResoluteAI product during the quarter. As a reminder, most of the value creation with this product will be through cross-sell activities, which are dependent on product enhancements. We remain on track to include document delivery inside the ResoluteAI platform, advanced discovery or search tools in the Article Galaxy platform, and several new workflows in Q2 and Q3, which is when we can expect to start generating revenue, primarily in the back-half of fiscal 2024. We did bring on a new enterprise sales professional that will focus on the Resolute products, both new and upsells.

本季我們對 ResoluteAI 產品進行了一次小額促銷。提醒一下，該產品的大部分價值創造將透過交叉銷售活動來實現，而這些活動取決於產品的增強。我們仍將在ResoluteAI 平台內包含文件交付、Article Galaxy 平台中的高級發現或搜尋工具，以及第二季和第三季的幾個新工作流程，屆時我們預計將開始產生收入，主要是在後半段2024 財年。我們確實聘請了一位新的企業銷售專業人員，他將專注於 Resolute 產品，包括新產品和追加銷售產品。

She has extensive experience selling these products for publishers, and we remain excited about the possibilities as we move forward. With the proxy matter largely behind us, we are focused on executing our plan and are closely monitoring employee morale and engagement so we can make sure that there are no distractions to hitting our goals for Q2 and the remainder of the year. Regarding M&A, we continue to work on two additional acquisitions. Barring any diligence problems, we expect to close one of them shortly. As a reminder, both are accretive to our growth objectives and our EBITDA objectives. In addition, they both represent a strong cross-sell opportunity and line-up with our long-term product strategy.

她擁有為出版商銷售這些產品的豐富經驗，我們對前進的可能性仍然感到興奮。代理權問題基本上已過去，我們將專注於執行我們的計劃，並密切監控員工的士氣和敬業度，以便我們能夠確保在實現第二季度和今年剩餘時間的目標時不會受到任何干擾。在併購方面，我們繼續進行另外兩項收購。除非出現任何勤勉問題，我們預計很快就會關閉其中一個。提醒一下，兩者都有助於我們的成長目標和 EBITDA 目標。此外，它們都代表了強大的交叉銷售機會，並與我們的長期產品策略一致。

Regarding our outlook for fiscal 2024, I have a mixed view. I do remain concerned about the economic headwinds impacting our upsell and churn rates, which in turn will affect our overall growth rate. That said, the acquisitions we are working on, if and when they close, will result in strong ARR as we roll into fiscal 2025, and it will result in nice EBITDA growth as well. I'm also confident that we will produce respectable bottom-line performance versus last year from our base business, as we put the proxy matter behind us and wind down our M&A activities.

對於我們對 2024 財年的展望，我的看法不一。我仍然擔心經濟逆風會影響我們的追加銷售和客戶流失率，這反過來又會影響我們的整體成長率。也就是說，我們正在進行的收購如果完成，將在我們進入 2025 財年時帶來強勁的 ARR，也將帶來良好的 EBITDA 成長。我也相信，隨著我們將代理問題拋之腦後並逐步減少併購活動，我們的基礎業務將比去年產生可觀的底線表現。

In my mind, our biggest challenge for fiscal 2024 and the beginning of 2025, will be to effectively integrate the products we have acquired and transition our sales and marketing efforts to successfully cross-sell those products. In short, we will be focused on integrating what we have acquired, resulting in us being much more selective about what (technical difficulty) engage in the future. I am excited about the months ahead for our business. As we execute on our plans, I think it will give investors a much clearer picture regarding what we are trying to build.

在我看來，我們 2024 財年和 2025 年初面臨的最大挑戰將是有效整合我們已收購的產品，並轉變我們的銷售和行銷工作，以成功交叉銷售這些產品。簡而言之，我們將專注於整合我們已經獲得的東西，從而使我們對未來從事的內容（技術難度）更有選擇性。我對我們的業務未來幾個月感到興奮。當我們執行計劃時，我認為這將使投資者對我們正在努力建立的目標有更清晰的了解。

I think we have a great opportunity to finish the back-half of the year with a great deal of momentum, which will be evident both in our integrated product suite and our financial performance. We will be presenting at the ROTH Technology Conference in New York next week on November 15, and the Southwest IDEAS Conference in Dallas on November 16. Qualified investors that would like to attend or schedule a meeting should contact Three Part Advisors. With that, I'd like to turn it over to the operator for Q&A. Operator?

我認為我們有很好的機會以強勁的勢頭結束今年下半年，這在我們的綜合產品套件和財務業績中都將顯而易見。我們將於下週 11 月 15 日在紐約舉行的 ROTH 技術會議以及 11 月 16 日在達拉斯舉行的西南 IDEAS 會議上發表演講。想要參加或安排會議的合格投資者應聯繫 Three Part Advisors。這樣，我想將其轉交給接線員進行問答。操作員？

(Operator Instructions) Richard Baldry, ROTH MKM.

（操作員說明）Richard Baldry，ROTH MKM。

Thanks. When I back out the one-time items from the OpEx side, it's well below your recent trends and even looks like a little bit down year-over-year. Was there any one-time things that held back the normalized spend? I might have thought it would go up a little bit even given Resolute integration. at 100%.

謝謝。當我從營運支出方面收回一次性項目時，它遠低於您最近的趨勢，甚至看起來同比略有下降。是否有任何一次性因素阻礙了正常化支出？我可能認為即使考慮到 Resolute 集成，它也會上升一點。為 100%。

Bill, you want to touch that?

比爾，你想摸那個嗎？

Yeah. No, I think I think we basically, if I understand your question correctly, Rich, we basically held tight on a lot of other spend, just given some of what we knew was coming with the proxy cost and the M&A related cost. I'll also say, as we budget for a fiscal year, at times, we'll put a few new heads in the budget, but it does take some time to get them onboard and hired, and that might have affected things a little bit as well. But we tried to run it pretty tight knowing we were going to have some of these costs hit us in the quarter.

是的。不，我想我認為我們基本上，如果我正確理解你的問題，Rich，我們基本上堅持了很多其他支出，只是考慮到我們所知道的一些代理成本和併購相關成本。我還要說，當我們制定一個財政年度的預算時，有時我們會在預算中加入一些新的負責人，但確實需要一些時間才能讓他們加入並僱用他們，這可能會對事情產生一些影響也有點。但我們試圖非常嚴格地控制它，因為我們知道其中一些成本將在本季受到影響。

When you talk about customers have been asking for a search feature top of their list, can you walk through some of what you need to do to integrate Resolute and its technologies into the core platform? Or are there meaningful challenges that are there to serve blocking and tackling EPIs? Basic stuff. Thanks

當您談到客戶一直要求將搜尋功能放在首位時，您能否介紹一下將 Resolute 及其技術整合到核心平台中需要做什麼？或者是否存在有意義的挑戰來服務於阻斷和解決 EPI？基本的東西。謝謝

I would say it's probably somewhere in between basic and complex. However, we expect that integration to be complete and the first version of that product will be released in late Q2, early Q3, and then we'll continue to enhance it from there. And what I mean by that is we have two different platforms, that in the first version will kind of linked to each other, so you would do the search in Resolute and then jump over to Article Galaxy. Where we want to go ultimately is that the platform is completely integrated into Article Galaxy, so you don't have two things talking to each other, you have one seamless experience. But [V1], which gets us to cross sell capability, is sometime between very late this quarter and very early in Q3.

我想說它可能介於基本和複雜之間。不過，我們預計整合將會完成，該產品的第一個版本將在第二季末、第三季初發布，然後我們將繼續對其進行增強。我的意思是我們有兩個不同的平台，在第一個版本中它們會相互鏈接，所以你可以在 Resolute 中進行搜索，然後跳到 Article Galaxy。我們最終想要實現的目標是將平台完全整合到 Article Galaxy 中，這樣您就不會看到兩個東西互相交談，而是獲得一種無縫的體驗。但是 [V1] 讓我們具備交叉銷售能力，時間是在本季末和第三季初之間的某個時間。

And last for me: the cash came down a little bit due to the acquisition in the quarter, talk about when you're looking at other acquisitions, how comfortable are you with the cash position or how comfortable carrying debt for at least an intermediate period of time? Would you look to use more equity as the cash balance comes down? Just for us to understand the funding backdrop to those M&A's. Thanks.

最後對我來說：由於本季度的收購，現金略有下降，請談談當您考慮其他收購時，您對現金頭寸的感覺如何，或者至少在中期期間承擔債務的舒適度如何時間？當現金餘額減少時，您會考慮使用更多股本嗎？只是為了讓我們了解這些併購的融資背景。謝謝。

Yeah, I'll let Bill comment further. I think I will say Bill and I have had a number of conversation about what our cash floor is and our cash floor is $3 million to $4 million. So we're not going to run this thing with $1 million in the bank, we're going up minimally have $3 million, preferably $4 million in the bank. And Billy, you want to address the remainder of that question?

是的，我會讓比爾進一步發表評論。我想我會說，比爾和我就我們的現金下限進行了多次對話，我們的現金下限是 300 萬至 400 萬美元。所以我們不會用銀行裡的 100 萬美元來經營這個項目，我們至少要在銀行存有 300 萬美元，最好是 400 萬美元。比利，你想解決這個問題的其餘部分嗎？

Yes, I think, as we as we start to announce some of these -- Rich, you'll get a little more flavor for how we intend to finance it. But, obviously, it's the larger some of these deals get, there's our first thing we want to do is try to use cash, but we will likely do some equity to complete some of these transactions. And we continue to basically look at all options. If we look at what Roy and I have done in the past, we use seller notes, we used or announced things like that. So I think that will also be the part of the structure. While at the same time, as Roy mentioned, making sure we keep a reserve amount of liquidity in the business to make sure that we can execute on our plans and don't run into any issues.

是的，我認為，當我們開始宣布其中的一些內容時，Rich，您會對我們打算如何為其融資有更多的了解。但是，顯然，這些交易中的一些規模越大，我們想做的第一件事就是嘗試使用現金，但我們可能會做一些股權來完成其中一些交易。我們基本上繼續考慮所有選項。如果我們看看羅伊和我過去所做的事情，我們使用賣家備註，我們使用或宣布類似的事情。所以我認為這也將是結構的一部分。同時，正如羅伊所提到的，確保我們在業務中保留一定的流動性儲備，以確保我們能夠執行我們的計劃並且不會遇到任何問題。

Last one, the ASP jumped more meaningful than we've seen in a while. Is that really the impact of Resolute coming in or is there more to it than that? Thanks.

最後一次，平均銷售價格的上漲比我們一段時間以來所看到的更有意義。這真的是 Resolute 的影響嗎？還是有更多影響？謝謝。

(multiple speakers) Primarily, yes, Resolute, yes.

（多名發言者）主要是，是的，堅決，是的。

Great. Thanks. Congrats on a good quarter.

偉大的。謝謝。恭喜季度表現良好。

Thank You.

謝謝。

Thank you.

謝謝。

(Operator Instructions) Allen Klee, Maxim Group.

（操作員說明）Allen Klee，Maxim Group。

Yes, hi. Could you give us a sense of how much of the incremental ARR that was added in the quarter came from the core business, excluding Resolute?

是的，嗨。您能否讓我們了解本季新增的 ARR 有多少來自核心業務（不包括 Resolute）？

Yeah. So I mentioned in my script, Resolute brought about $1.35 million of ARR. So I think we had about not quite [one-sixth] of incremental in the quarter, [135] of that came from Resolute.

是的。所以我在劇本中提到，Resolute 帶來了 135 萬美元的 ARR。因此，我認為本季我們的增量大約不完全是[六分之一]，其中[135]來自 Resolute。

Great. Thank you. And then, if we're going to think about, there's still a little left over incremental one-time nonrecurring type spending related to the things you mentioned mostly next quarter. Is there a way to think of what the magnitude of that might be compared to what you just had in the fiscal first quarter?

偉大的。謝謝。然後，如果我們要考慮一下，仍然有一些剩餘的增量一次性非經常性支出與您下個季度主要提到的事情相關。有沒有辦法思考一下與第一財季的情況相比，其幅度有多大？

Yeah. I think we itemized those costs that affected this quarter. And of that, the proxy stuff goes away pretty much and the chairman stuff goes away pretty much. So it's really around [350-ish] of legal I would say is probably a legal order over and above normal related to M&A type stuff would be the impact.

是的。我認為我們逐項列出了影響本季的成本。其中，代理權的東西幾乎消失了，主席的東西也幾乎消失了。因此，這實際上是大約[350-ish]的法律，我想說的是，與併購類型的東西相關的超出正常範圍的法律命令可能會產生影響。

Okay, great. And on the M&A that you're looking at, could you remind us of what, like in terms of what you're looking for, what these new businesses will be doing? What will be contributing to the type of stuff that you offer compared to what you offer today?

好的，太好了。關於您正在考慮的併購，您能否提醒我們，例如您正在尋找什麼，這些新企業會做什麼？與您現在提供的產品相比，哪些因素會對您提供的產品類型做出貢獻？

Well, yeah, I mean, obviously, we have to narrow our comments on this, but we're looking for unique capability that we do not have today that allows us to provide a unique value proposition to our user base. We also are highly interested in complementary adjacent markets where we're not as successful as others in. For example, we were very strong in corporate, not as strong in academic or government. So people that are strong in academic or government and maybe not in corporate would be of interest to us.

嗯，是的，我的意思是，顯然，我們必須縮小對此的評論範圍，但我們正在尋找我們今天所沒有的獨特功能，使我們能夠為我們的用戶群提供獨特的價值主張。我們也對互補的鄰近市場非常感興趣，在這些市場中我們不像其他市場那麼成功。例如，我們在企業方面非常強大，但在學術或政府方面卻不那麼強大。因此，我們會對學術界或政府界（也許不是企業界）實力雄厚的人感興趣。

And then if I point you back to the investor deck that we've used over the last 30 or 60 days, there's a number of capability at the slides that point out: here's where we were when we just had Article Galaxy, here's where we were three months ago with Article Galaxy curedatis and references, and here's what Resolute does for us. But even with that Resolute deck, there are a few empty boxes. So the way that we think about it is, is there a capability that we can acquire that also has strong cross-sell capability, that may also have strength in a segment of the market that we're not necessarily strong in that we can acquire that will fill out that (technical difficulty) portfolio allows us to have another quite strong cross-sell opportunity both ways.

然後，如果我讓你回顧一下我們在過去 30 或 60 天內使用的投資者平台，幻燈片中的許多功能都指出：這就是我們剛剛擁有 Article Galaxy 時的情況，這就是我們的情況是三個月前面的文章Galaxy 治療和參考文獻，這就是Resolute 為我們所做的。但即使有了那套「堅決」牌，仍然有一些空盒子。因此，我們思考的方式是，是否有一種我們可以獲得的能力，同時也具有強大的交叉銷售能力，在我們不一定能夠獲得的細分市場中也可能具有優勢這將填補（技術難度）投資組合，使我們能夠擁有另一個相當強大的雙向交叉銷售機會。

So I would just point you to the currently filed investor deck, which an updated version will be filed probably tomorrow, if not today. And if you go to the slide titled Innovation Value Chain, there are three empty boxes there that are interesting to us in terms of M&A targets. As long as they meet the other requirements, which has got to have cross-sell capability, got to have some strengths we don't have, and they've got to be accretive to our organic growth and EBITDA targets.

因此，我只想向您指出目前提交的投資者資料，更新版本可能會在明天（如果不是今天）提交。如果您查看標題為「創新價值鏈」的幻燈片，您會發現我們對併購目標感興趣的三個空框。只要他們滿足其他要求，就必須具有交叉銷售能力，就必須具有我們不具備的一些優勢，並且它們必須能夠促進我們的有機成長和 EBITDA 目標。

Great. Thank you very much.

偉大的。非常感謝。

Thank you.

謝謝。

(Operator Instructions) This concludes the question-and-answer session. I would like to turn the conference back over to Roy Olivier for any closing remarks.

（操作員說明）問答環節到此結束。我想將會議轉回羅伊·奧利維爾（Roy Olivier）發表閉幕詞。

Yes. Thanks, everyone, for joining us today. And as a reminder, we will again be presenting at the ROTH Tech Conference in New York on November 15 and the Southwest IDEAS Conference in Dallas on the 16. If you'd like to attend, please reach out to Three Part Advisors. We look forward to speaking to you in February and have a great day.

是的。謝謝大家今天加入我們。提醒一下，我們將再次出席 11 月 15 日在紐約舉行的 ROTH Tech Conference 和 16 日在達拉斯舉行的 Southwest IDEAS Conference。如果您想參加，請聯絡 Three Part Advisors。我們期待在二月與您交談並祝您度過愉快的一天。

This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

今天的電話會議到此結束。您可以斷開線路。感謝您的參與並祝您有個愉快的一天。