Research Solutions, Inc.

Research Solutions, Inc.

Overview

Research Solutions, Inc. is a Nevada-based holding company that operates a portfolio of vertical SaaS platforms and AI-enabled products for research-intensive organizations. The company has five wholly owned subsidiaries and offers cloud-based tools for discovery, access, and reference management across scientific, technical, and medical (STM) content and related data types.

Platform family

• Discovery Tools
  • Scite.ai and Resolute.ai for search across STM literature, with advanced search capabilities and integration into purchasing workflows. These tools include AI-assisted insights and retrieval-augmented generation focused on STM content.
• Access
  • Article Galaxy (AG) and Article Galaxy Scholar (AGS) manage customer entitlements (subscriptions, token packages, existing libraries) and automate order routing, authentication, spend reporting, and integrations with in-house and third-party software. These solutions support rights and permissions for content reuse, including AI applications and model training.
• Manage
  • References: a reference management platform with built-in document delivery and collaboration features for research teams.

AI and data context

Generative AI assistants are embedded across multiple solutions to help assess article quality, accelerate review, and relate papers to one another. The platforms also include data beyond STM articles, such as patents, clinical trials, regulatory filings, and competitive intelligence.

Revenue model

• Cloud-based SaaS subscriptions for platform access (annual or multi-year, billed upfront or annually).
• Transactional sales of STM content (single-article delivery, licensed use) through the platform.
• Subscription revenue is recognized ratably; transactional revenue is recognized upon delivery.

Content and rights

• Platform provides access to a large STM content library: over 200 million articles available for download, 50 million for rent, 10 million online book chapters, and 45 million print-only articles.
• The company adds approximately 2–4 million new STM articles per year.
• Publisher licenses allow distribution and support content reuse rights, including AI use and training.

Acquisitions and components

• ResoluteAI (Resolute Innovation, Inc.) acquired in 2023.
• Scite, Inc. acquired in December 2023 (merged into Scite, LLC).
• Reprints Desk Latin America and ResSol LA operate to support cross-border operations.

Capital structure and governance

• No material debt other than a revolving line of credit with PNC; no borrowings under the line as of 6/30/2026. Line matures 4/15/2027; interest at SOFR plus 2.5%.
• Authorized shares: up to 100,000,000 common shares and 20,000,000 blank-check preferred shares. Approximately 33.5 million common shares issued and outstanding as of 6/30/2026.
• The company is remote with no principal executive offices; mailing address: 10624 S. Eastern Ave., Ste. A-614, Henderson, NV 89052.
• Stock repurchase program in place for tax-withholding and award-related repurchases; partial repurchases occurred in 2025–2026; remaining authorization as of 6/30/2026.

Segment structure

The company operates a single reportable segment based on its platform revenue model. Management evaluates performance on a combined basis for revenue, gross profit, and selected operating metrics. The company President is the CODM.

Financial highlights (year ended June 30, 2026)

• Revenue: $48,306,957
  • Platform subscriptions: $20,820,974
  • Transactions (STM content delivery): $27,485,983
• Cost of revenue: $23,236,449
  • Platform cost of revenue: $2,609,421
  • Transaction cost of revenue (copyright fees, etc.): $20,627,028
• Gross profit: $25,070,508
  • Platform gross profit: $18,211,553
  • Transaction gross profit: $6,858,955
• Operating expenses: $21,482,131
  • Selling, general and administrative: $20,227,158
  • Depreciation and amortization: $1,254,973
  • Stock-based compensation: $928,516
  • Foreign currency transaction loss (gain): $54,697
• Operating income: $3,588,377
• Other income: $407,026
• Accreted interest expense: $(1,040,293)
• Income before income taxes: $2,955,110
• Provision for income taxes: $(133,042)
• Net income: $2,822,068
• Comprehensive income: $2,838,857 (includes foreign currency translation)
• Non-GAAP Adjusted EBITDA (reconciled): $5,826,563
  • Reconciled from net income with interest, taxes, depreciation/amortization, stock-based compensation, and select other items as defined by the company.

Cash flow and liquidity (year ended June 30, 2026)

• Net cash provided by operating activities: $5,274,420
• Net cash used in investing activities: $(39,771)
• Net cash used in financing activities: $(4,845,748)
• Net increase in cash and cash equivalents: $402,971
• Cash and cash equivalents at period end: $12,630,283

Balance sheet (as of June 30, 2026)

• Total assets: $45,664,718
• Liabilities: $24,957,871
• Stockholders’ equity: $20,706,847
• Current assets: $20,694,168
• Non-current assets: $24,970,550
• Current liabilities: $24,940,626

Customers and concentration

• No customer accounted for more than 10% of revenue in 2026 or 2025.
• Content costs are concentrated with a few suppliers: approximately 46% of content costs derived from the three largest suppliers in 2026 (45% in 2025).

Geographical revenue and receivables (2026)

• Revenue by region: United States 56.4%, Europe 33.0%, Rest of World 10.6%.
• Accounts receivable by region: United States 54.9%, Europe 32.0%, Rest of World 13.1%.

Acquisitions and contingent consideration

• Scite earn-out liability balance at 6/30/2026: $7,323,314 (current portion); no long-term portion recorded.
• Beginning balance at 6/30/2025: $14,046,640. Changes included accreted interest expense of $1,040,293 and payments; ending balance at 6/30/2026: $7,323,314.
• First quarterly Scite earn-out payments began August 2025; final payment scheduled for May 2027. Earn-out is paid partly in cash and partly in common stock; ongoing accretion of interest is recorded.

Employees

141 full-time employees as of September 4, 2026.

Operational and strategic details

• Multi-tenant platform architecture supports customers via web interfaces and APIs for integration with in-house and third-party software.
• Content sourcing and licensing arrangements span hundreds of publishers; a small number of suppliers account for the majority of content costs.
• Growth priorities include organic customer acquisition and channel expansion, cross-sell opportunities (for example, introducing Scite into Article Galaxy platforms), pricing improvements, product development with AI-enabled features and expanded datasets, and selective acquisitions and international expansion.

Intellectual property and impairment

• Goodwill: $16,372,979; no impairment recorded in 2026 or 2025.
• Intangible assets include developed technology ($10.8M), customer relationships ($170k), customer lists ($1.50M), and licenses ($16k); amortization is recognized.

Tax and accounting

• The company maintains a valuation allowance against net deferred tax assets; no uncertain tax positions recorded as of 6/30/2026.
• ASU 2023-09 disclosures were adopted prospectively. The company is evaluating impacts from recent accounting standards as required.

Other notes

• The company is not a shell company and has not paid cash dividends; dividends would be discretionary and subject to board approval and financing needs.
• 2023 and subsequent acquisitions include earn-outs and contingent consideration, with ongoing accounting for fair value and accretion of interest.