One Stop Systems (OSS) said in their 3Q 2024 earnings conference call that development relationships like their program for the U.S. Army where they have been developing the AI-enabled 360 visualization technology to eliminate blind spots in our nearly 14,000 tanks will take one to two years before leading to production orders... and we know their first development contract for this program was received on February 14, 2023, with the program size being expanded on March 27, 2024. This means production orders from the U.S. Army are most likely coming in 1Q 2025.
OSS expects their rapid quarter-over-quarter revenue growth from $12.65 million in 1Q 2024, to $13.20 million in 2Q 2024, to $13.70 million in 3Q 2024, and to an estimated $15 million in 4Q 2024... to continue on a consistent, sustainable basis each quarter for years to come because most of their contracts signed over the last two years across multiple branches of the military, multiple intelligence agencies, and multiple defense contractors... will result in easily predictable high margin recurring revenue for many years into the future.
Last quarter, OSS wrote down the remaining inventory from their previous discontinued business line of in-flight entertainment on airlines. As you may have noticed, airlines have been cutting costs and don't provide as much in-flight entertainment anymore. Luckily for OSS, most of its future revenue will come from governments that can print their own money, which will make OSS a high growth, high margin, recession proof AI supercomputing play. There will be no further write downs and OSS is on track to become profitable at some point in 2025. OSS is already cash flow positive, which means no dilution... unless orders become so large that they need to massively increase their production capacity, but at that point the share price will be so high nobody will care if they raise $200-$300 million at $20+ per share to build new production plants.
Not only is OSS AS9100 Certified for both NASA and the Department of Defense, but OSS one year ago was granted a facility security clearance, allowing them to access government contracts and projects that require a security clearance due to the sensitive nature of the information involved... essentially giving them the ability to work on projects with classified data within the defense sector.
The OSS Rigel Edge Supercomputer is the closest thing we have to working real life quantum computers, today... that can operate in the harshest of all environments for NASA and the Department of Defense.
For quantum computing: qubits must be maintained at extremely low temperatures near absolute zero to preserve their quantum states and enable coherent computation. Even with an ideal, stable environment, quantum computers can yield different outcomes on each execution due to their inherent probabilistic nature.
For Nvidia (NVDA) GPUs in an AI datacenter: operating temperatures should be kept between 64°F and 81°F. Temperatures exceeding 81°F can trigger thermal throttling, where the GPUs automatically reduce performance to prevent overheating and damage. Conversely, if temperatures fall too low, the system may fail to boot. Additionally, vibrations and shocks in the environment can induce mechanical stress on sensitive GPU components, such as solder joints, which can eventually lead to failure.
One Stop Systems (OSS) Rigel Edge Supercomputers are designed to operate within a temperature range of 14°F to 122°F while maintaining the low latency required for military, defense, and space applications. These supercomputers are engineered to withstand significant shock and vibration, making them suitable for demanding military and aerospace environments.
Do you honestly believe OSS will remain a $65 million market cap company? We feel like going to a random train station and telling every person that walks by about it knowing it will change their life!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is meant for informational and educational purposes only and does not provide investment advice.
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