One Stop : Corporate Profile

NASDAQ: OSS

Corporate Profile

September 2020

State-of-the-Art Hardware & Software Solutions for High-Performance Edge Computing & AI on the Fly®

Key Stats (NASDAQ: OSS)

Stock Price (9/9/20 @ close)		$2.45
52-WkLow-High	$0.59 - 3.25
Shares Outstanding			16.6M
Market Cap			$40.7M
Public Float, est.		70.6%
Avg. Daily Vol. (3-mo)			474K
Non-GAAP Net Income (mrq)		$248K
Insider Holdings		29.4%
Institutional Holdings		25.5%
Founded		1998
IPO		Feb. 1, 2018
Employees		93

Revenue

	Acquisitive	$ millions	$58.3
	Organic		57%	$16.9
		34%	$37.0
$27.5	$4.5 12%
$5.9	18%		$41.4
$21.6		$32.5
2017		2018	2019

Senior Management

David Raun, President & CEO, Director: 25 years' senior management and board experience with public and private companies, including 10+ M&A/fund raising events.

John Morrison, CFO: CPA with 30 years in public accounting, financial reporting and financing. 15 years at PwC (US/Asia).

Company Contact

One Stop Systems, Inc.

Escondido, California  T 760.745.9883

Investor Relations

Ron Both, CMA IR  T 949.432.7557 [e-mail]

Company Overview

About One Stop Systems (OSS)

• Industry-leadingdesigner & manufacturer of high-performancecomputing software and systems.
• I/O intensive, ruggedized designs for mobile and edge computing: AI on the Fly®
• Technology Leadership: World's first Gen 4
  PCIe-over-cable solutions. High-density flash arrays powered by Ion™ software.
• Target Markets: AI, media & entertainment, military, medical, autonomous vehicles, instrumentation, and data collection.
• Marquee Customers: Raytheon, Lyft, National Instruments, and Disguise.
• Strategic Partners: NVIDIA, Intel and Broadcom.

Growth Market with Strong Drivers

• Global Edge Computing Market growing at 26.5% CAGR to $18 billion by 2027.
• Big Data and AI demanding greater/faster flash storage capacity, high-performance computing, expansive I/O and mobility.
• Edge computing requires ruggedization, reduced size, weight & power (SWaP).
• OSS AI on the Fly® provides high-performance computing at point of data collection.
• OSS outstanding proposals for 17 opportunities valued at $1M+ each. 76% close rate in 2019.

Recent News

• 5/14/20: Q1-20 revenue up 33% to $13.4M.
• 5/15/20: U.S. Navy AI threat detection system order top $1.0 million.
• 7/1/20: Appointed three new independent directors. Board is now composed of seven members, four men and three women.
• 6/22/20: Introduced world's first PCIe Gen 4 expansion system for NVIDIA A100 PCIe GPUs.
• 6/25/20: David Raun, technology industry veteran, appointed president & CEO.
• 8/6/20: Reported Q2 2020 revenue of $11.6 million with 1H 2020 of $25.0 million
• 8/24/20: Received $4.3M in DSU purchase orders for military radar application as follow- on to $36M supplier agreement.

Products & Services

Servers

Flash Storage Arrays

®

I/O Expansion

GPU Compute Accelerators

Producing actionable intelligence in real-time, onsite, at the point

of data acquisition

Autonomous Vehicle must be able to collect, process, learn and act immediately.

Global Presence

San Diego, CA	Worldwide Revenue
	2019
Principal offices
Irvine, CA
Concept Development (CDI)	US
Salt Lake City, UT		Int'l 38%
Software development		62%

Gröbenzell, Germany

Supports EMEA

Large Growth Market

Global Edge Computing Market

$18B

$3B

19 20E 21E 22E 23E 24E 25E 26E 27E

Source:Fior Market, June 2020

mrq = most recent quarter ended 6/30/20. Stock data source: Yahoo! Finance, OSS. 1) Fior Market report, June 2020. Important Disclaimer: This document includes forward looking statements that involves risk and uncertainties as described in OSS's Form 10-K filed with the SEC and other filings available on www.sec.gov. This does not constitute an offer to sell or a solicitation of an offer to buy any security. No guarantee is made as to the reliability of this information and you should not rely on it as the basis to make any investment decision. 'AI on the Fly' is a registered trademark of One Stop Systems, Inc. © One Stop Systems, Inc. 2020 & 2019, All Rights Reserved. Product of CMA. 091020

Use of Non-GAAP Financial Measures and Reconciliation of Adjusted EBITDA to GAAP

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, OSS 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 the company with an important tool for financial and operational decision making and for evaluating its 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 its 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. OSS management does not consider adjusted EBITDA to be a substitute for, or superior to, the information provided by GAAP financial results.

Use of Non-GAAP Financial Measures and Reconciliation of Non-GAAP EPS to GAAP

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) attributable to common stockholders 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.

Adjusted EPS excludes the impact of certain items and, therefore, has not been calculated in accordance with GAAP. OSS 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. OSS management uses this measure along with the corresponding GAAP financial measures to manage its business and to evaluate the company's performance compared to prior periods and the marketplace. The company defines Non-GAAP (loss) income attributable to common stockholders as (loss) or income before amortization, stock-based compensation, expenses related to discontinued operations, impairment of long-lived assets and non-recurring acquisition costs. 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. The company 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 income (loss) attributable to common stockholders and diluted earnings per share: