One Stop Systems (OSS) 10-Q10 Aug 232023 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2023	Jul. 31, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Trading Symbol	OSS
Title of 12(b) Security	Common Stock, $0.0001 par value per share
Security Exchange Name	NASDAQ
Entity Registrant Name	One Stop Systems, Inc.
Entity Central Index Key	0001394056
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity Common Stock, Shares Outstanding		20,543,024
Entity File Number	001-38371
Entity Tax Identification Number	33-0885351
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	2235 Enterprise Street #110
Entity Address, City or Town	Escondido
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92029
City Area Code	760
Local Phone Number	745-9883

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 6,100,317	$ 3,112,196
Short-term investments (Note 3)	9,321,456	10,123,535
Accounts receivable, net (Note 4)	9,225,346	11,327,244
Inventories, net (Note 5)	21,463,925	20,775,366
Prepaid expenses and other current assets	1,231,609	502,156
Total current assets	47,342,653	45,840,497
Property and equipment, net	2,432,900	2,570,124
Operating lease right-of use assets	569,296	731,043
Deposits and other	48,093	60,243
Goodwill	4,420,510	7,120,510
Intangible assets, net (Note 6)	10,538	42,154
Total Assets	54,823,990	56,364,571
Current liabilities
Accounts payable	2,811,093	4,592,713
Accrued expenses and other liabilities (Note 7)	4,987,695	3,013,869
Current portion of operating lease obligation (Note 10)	583,675	536,588
Current portion of notes payable (Note 8)	3,012,945	2,952,447
Total current liabilities	11,395,408	11,095,617
Long-term debt, net of current portion (Note 8)		409,294
Deferred tax liability, net	136,746	138,662
Operating lease obligation, net of current portion (Note 10)	148,830	397,249
Total liabilities	11,680,984	12,040,822
Commitments and contingencies (Note 10)
Stockholders’ equity
Common stock, $0.0001 par value; 50,000,000 shares authorized; 20,543,024 and 20,084,528 shares issued and outstanding, respectively	2,053	2,008
Additional paid-in capital	46,404,428	45,513,807
Accumulated other comprehensive income	1,239,084	510,485
Accumulated deficit	(4,502,559)	(1,702,551)
Total stockholders’ equity	43,143,006	44,323,749
Total Liabilities and Stockholders' Equity	$ 54,823,990	$ 56,364,571

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	20,543,024	20,084,528
Common stock, shares outstanding	20,543,024	20,084,528

UNAUDITED CONSOLIDATED STATEMEN

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Revenue	$ 17,211,532	$ 18,303,343	$ 33,993,426	$ 35,356,020
Cost of revenue	12,413,594	13,103,025	24,124,726	25,015,047
Gross profit	4,797,938	5,200,318	9,868,700	10,340,973
Operating expenses:
General and administrative	3,072,880	1,821,445	5,357,981	3,596,133
Impairment of goodwill	2,700,000		2,700,000
Marketing and selling	1,483,965	1,724,913	3,270,646	3,196,633
Research and development	954,650	1,252,037	2,149,978	2,496,152
Total operating expenses	8,211,495	4,798,395	13,478,605	9,288,918
(Loss) income from operations	(3,413,557)	401,923	(3,609,905)	1,052,055
Other income (expense), net:
Interest income	104,785	55,507	215,051	106,512
Interest expense	(23,939)	(44,949)	(56,644)	(103,665)
Employee retention credit (ERC)	1,298,241		1,298,241
Other income (expense), net	31,837	(4,169)	11,614	97,952
Total other income, net	1,410,924	6,389	1,468,262	100,799
Income before income taxes	(2,002,633)	408,312	(2,141,643)	1,152,854
Provision for income taxes	396,863	85,490	658,365	250,798
Net (loss) income	$ (2,399,496)	$ 322,822	$ (2,800,008)	$ 902,056
Net (loss) income per share:
Basic	$ (0.12)	$ 0.02	$ (0.14)	$ 0.05
Diluted	$ (0.12)	$ 0.02	$ (0.14)	$ 0.04
Weighted average common shares outstanding:
Basic	20,397,741	19,940,902	20,325,029	19,416,832
Diluted	20,397,741	21,180,490	20,325,029	20,346,917

UNAUDITED CONSOLIDATED STATEM_2

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement Of Income And Comprehensive Income [Abstract]
Net (loss) income	$ (2,399,496)	$ 322,822	$ (2,800,008)	$ 902,056
Other comprehensive income (loss):
Net unrealized income (loss) on short-term investments	(13,078)	4,577	867	(1,419)
Currency translation adjustment	388,642	(168,384)	727,732	(218,750)
Total other comprehensive income (loss)	375,564	(163,807)	728,599	(220,169)
Comprehensive (loss) income	$ (2,023,932)	$ 159,015	$ (2,071,409)	$ 681,887

UNAUDITED CONSOLIDATED STATEM_3

UNAUDITED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($)	Total	Adjustment	Common Stock	Common Stock Adjustment	Additional Paid-in Capital	Additional Paid-in Capital Adjustment	Accumulated Other Comprehensive Income	Accumulated Other Comprehensive Income Adjustment	Accumulated (Deficit) Earnings	Accumulated (Deficit) Earnings Adjustment
Balance at Dec. 31, 2021	$ 41,958,716	$ 41,914,183	$ 1,877	$ 1,877	$ 41,232,441	$ 41,232,441	$ 153,361	$ 153,361	$ 571,037	$ 526,504
Balance (ASC 842) at Dec. 31, 2021		(44,533)								(44,533)
Balance, Shares at Dec. 31, 2021			18,772,214	18,772,214
Stock-based compensation	382,828				382,828
Exercise of stock options, RSUs and warrants	29,670		$ 10		29,660
Exercise of stock options, RSU's and warrants, Shares			105,969
Taxes paid on net issuance of employee stock options	(20,478)				(20,478)
Conversion of senior secured convertible debt to equity	2,590,909		$ 104		2,590,805
Conversion of senior secured convertible debt to equity, Shares			1,036,365
Currency translation adjustment	(50,366)						(50,366)
Net unrealized gains (losses) on short-term investments	(5,996)						(5,996)
Net (loss) income	579,234								579,234
Balance at Mar. 31, 2022	45,419,984		$ 1,991		44,215,256		96,999		1,105,738
Balance, Shares at Mar. 31, 2022			19,914,548
Balance at Dec. 31, 2021	41,958,716	41,914,183	$ 1,877	$ 1,877	41,232,441	$ 41,232,441	153,361	$ 153,361	571,037	526,504
Balance (ASC 842) at Dec. 31, 2021		$ (44,533)								$ (44,533)
Balance, Shares at Dec. 31, 2021			18,772,214	18,772,214
Net unrealized gains (losses) on short-term investments	(1,419)
Net (loss) income	902,056
Balance at Jun. 30, 2022	45,982,509		$ 2,001		44,618,756		(66,808)		1,428,560
Balance, Shares at Jun. 30, 2022			20,008,885
Balance at Mar. 31, 2022	45,419,984		$ 1,991		44,215,256		96,999		1,105,738
Balance, Shares at Mar. 31, 2022			19,914,548
Stock-based compensation	532,636				532,636
Exercise of stock options, RSUs and warrants	2,558		$ 10		2,548
Exercise of stock options, RSU's and warrants, Shares			94,337
Taxes paid on net issuance of employee stock options	(131,684)				(131,684)
Currency translation adjustment	(168,384)						(168,384)
Net unrealized gains (losses) on short-term investments	4,577						4,577
Net (loss) income	322,822								322,822
Balance at Jun. 30, 2022	45,982,509		$ 2,001		44,618,756		(66,808)		1,428,560
Balance, Shares at Jun. 30, 2022			20,008,885
Balance at Dec. 31, 2022	44,323,749		$ 2,008		45,513,807		510,485		(1,702,551)
Balance, Shares at Dec. 31, 2022			20,084,528
Stock-based compensation	474,209				474,209
Exercise of stock options, RSUs and warrants			$ 27		(27)
Exercise of stock options, RSU's and warrants, Shares			274,591
Taxes paid on net issuance of employee stock options	(326,534)				(326,534)
Currency translation adjustment	339,090						339,090
Net unrealized gains (losses) on short-term investments	13,945						13,945
Net (loss) income	(400,512)								(400,512)
Balance at Mar. 31, 2023	44,423,947		$ 2,035		45,661,455		863,520		(2,103,063)
Balance, Shares at Mar. 31, 2023			20,359,119
Balance at Dec. 31, 2022	44,323,749		$ 2,008		45,513,807		510,485		(1,702,551)
Balance, Shares at Dec. 31, 2022			20,084,528
Net unrealized gains (losses) on short-term investments	867
Net (loss) income	(2,800,008)
Balance at Jun. 30, 2023	43,143,006		$ 2,053		46,404,428		1,239,084		(4,502,559)
Balance, Shares at Jun. 30, 2023			20,543,024
Balance at Mar. 31, 2023	44,423,947		$ 2,035		45,661,455		863,520		(2,103,063)
Balance, Shares at Mar. 31, 2023			20,359,119
Stock-based compensation	898,008				898,008
Exercise of stock options, RSUs and warrants	51,049		$ 18		51,031
Exercise of stock options, RSU's and warrants, Shares			183,905
Taxes paid on net issuance of employee stock options	(206,066)				(206,066)
Currency translation adjustment	388,642						388,642
Net unrealized gains (losses) on short-term investments	(13,078)						(13,078)
Net (loss) income	(2,399,496)								(2,399,496)
Balance at Jun. 30, 2023	$ 43,143,006		$ 2,053		$ 46,404,428		$ 1,239,084		$ (4,502,559)
Balance, Shares at Jun. 30, 2023			20,543,024

UNAUDITED CONSOLIDATED STATEM_4

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net (loss) income	$ (2,800,008)	$ 902,056
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Deferred benefit for income taxes		(1,648)
(Gain) loss on disposal of property and equipment	(69,916)	36,064
Provision (recovery) for bad debt	38,653	(5,524)
Impairment of goodwill	2,700,000
Warranty reserves	(8,216)	(35,465)
Amortization of intangibles	31,616	31,616
Depreciation	510,912	492,604
Inventory reserves	386,998	158,697
Amortization of debt discount		1,224
Stock-based compensation expense	1,372,217	915,464
Employee retention credit (ERC)	(1,298,241)
Changes in operating assets and liabilities:
Accounts receivable	2,526,139	(5,041,981)
Inventories	(918,495)	(8,962,525)
Prepaid expenses and other current assets	(711,567)	(508,546)
Accounts payable	(1,806,057)	4,429,156
Accrued expenses and other liabilities	2,094,899	12,453
Net cash provided by (used in) operating activities	2,048,934	(7,576,355)
Cash flows from investing activities:
Redemption of short-term investment grade securities	802,945	2,895,285
Proceeds from sale of intangible assets		125,000
Purchases of property and equipment, including capitalization of labor costs for test equipment and ERP	(299,891)	(141,685)
Net cash provided by investing activities	503,054	2,878,600
Cash flows from financing activities:
Proceeds from exercise of stock options and warrants	51,049	32,228
Payment of payroll taxes on net issuance of employee stock options	(532,600)	(152,162)
Proceed on borrowing of notes payable		3,663,009
Repayments on notes payable	(403,115)	(928,612)
Employee Retention Credit Benefit	1,298,241
Net cash provided by financing activities	413,575	2,614,463
Net change in cash and cash equivalents	2,965,563	(2,083,292)
Effect of exchange rates on cash	22,558	(143,051)
Cash and cash equivalents, beginning of period	3,112,196	5,101,174
Cash and cash equivalents, end of period	6,100,317	2,874,831
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	60,615	13,373
Cash paid during the period for income taxes	$ 93,777	30,821
Supplemental disclosure of non-cash flow transactions:
Right of use assets recorded upon adoption of ASC 842		1,203,580
Lease liabilities recorded upon adoption of ASC 842		1,477,419
Conversion of senior secured convertible debt to common stock		$ 2,590,909

The Company and Basis of Presen

The Company and Basis of Presentation	6 Months Ended
The Company and Basis of Presentation	Jun. 30, 2023
Organization Consolidation And Presentation Of Financial Statements [Abstract]
The Company and Basis of Presentation	NOTE 1 – THE COMPANY AND BASIS OF PRESENTATION Nature of Operations One Stop Systems, Inc. (“we,” “our,” “OSS,” or the “Company”) was originally incorporated as a California corporation in 1999, after initially being formed as a California limited liability company in 1998. On December 14, 2017, the Company was reincorporated as a Delaware corporation in connection with its initial public offering. The Company designs, manufactures, and markets specialized high-performance compute and storage hardware, software, and systems, which are designed to target edge artificial intelligence (“AI”) Transportable deployments. The Company markets its products to manufacturers of automated equipment used for autonomous vehicle, medical, industrial, and military applications, with special focus on platforms that move, such as trucks, planes, and mobile datacenters. During the year ended December 31, 2015, the Company formed a wholly owned subsidiary in Germany, One Stop Systems, GmbH (“OSS GmbH”). In July 2016, the Company acquired Mission Technologies Group, Inc. (“Magma”) and its operations that complemented OSS' manufacture of custom high-performance compute servers. On August 31, 2018, the Company acquired Concept Development Inc. (“CDI”) located in Irvine, California. CDI specialized in the design and manufacture of custom high-performance computing systems for airborne in-flight entertainment, flight safety equipment, and networking systems. CDI’s business was fully integrated into the core operations of the Company as of June 1, 2020. On October 31, 2018, OSS GmbH acquired 100 % of the outstanding equity of Bressner Technology GmbH, a limited liability company registered under the laws of Germany and located near Munich, Germany (“OSS Europe”). OSS Europe designs and manufactures standard and customized servers, panel PCs, and PCIe accelerator systems. Although, currently, OSS Europe primarily serves as a value-added reseller for the Company in Europe, we are also focused on growing the AI Transportable portion of our business through OSS Europe and leveraging its existing relationships. OSS Europe also provides manufacturing, test, sales, and marketing services for customers throughout Europe, the Middle East and Africa. As of June 30, 2023, the Company has completed and fulfilled substantially all of its orders associated with its long-term media and entertainment customer and does not anticipate significant business from this customer in the future. This resulted from an acceleration in such customer’s investment in cloud technology and a drive towards less intelligent compute capability at the edge to reduce the costs of their componentry. This is particularly true of their virtual products, which do not require the same level of ruggedization, as this system is not typically operated in harsh environments and for which software is being developed to provide a real-time cloud solution. This customer’s transition to cloud solutions had a negative impact on the Company’s results of operations for the three and six months ended June 30, 2023, and is expected to continue to have a negative impact on the Company’s results of operations for the near term. As previously disclosed, in 2021, we shifted our primary focus to the development and sale of AI Transportables. Since 2022, we have significantly increased our efforts to penetrate the military and defense sectors in particular. With the formation of a new strategic advisory board in second quarter 2022, and the recent hiring of a new president and chief executive officer, who has extensive experience in contracting in the defense industry, we have further increased our emphasis and focus on the pursuit of revenue opportunities with major defense contractors and the military. The lingering negative impacts of the COVID-19 pandemic and the impact on the global economy and capital markets resulting from the geopolitical instability caused in part by the ongoing military conflict between Russia and Ukraine, including inflation and Federal Reserve interest rate increases, have contributed to global supply chain issues and economic uncertainty, which has negatively affected our operations. Additionally, during the first half of 2023, the general consensus among economists continued to suggest that a risk of recession will continue for the foreseeable future, which could result in further economic uncertainty and volatility in the capital markets in the near term and could negatively affect our operations. We are continuing to experience increased pricing, longer lead-times, unavailability of certain product and limited supplies, protracted delivery dates, changes in minimum order quantities to secure product, and/or shortages of certain parts and supplies that are necessary components for the products and services we offer to our customers. As a result, the Company is continuing to carry increased inventory balances to ensure availability of necessary products and to secure pricing. These global issues and concerns regarding general economic decline or recession are impacting our business as well as some of our customers, who are experiencing downturns or uncertainty in their own business operations and revenue, and as a result, these customers may need to decrease or delay their technology spending, request pricing concessions or payment extensions, or seek to renegotiate their contracts. During the three and six months ended June 30, 2023, the Company experienced delays and postponements of committed purchases and orders due to certain customers’ funding or program delays. We have also experienced cancellations of orders due to disruptions in our customers’ businesses or changes in their business plans. Such delays, postponements and cancellations negatively impacted the Company’s results of operations for the three and six months ended June 30, 2023. If such decreases in orders, postponements or cancellations continue in the future, our operating results will be further impacted, and our revenues may decline in future periods. These global issues and events may also have the effect of heightening many risks associated with our customers and supply chain. We may take further actions that alter our operations as may be required by federal, state, or local authorities from time to time, or which we determine are in our best interests. In addition, we may decide to postpone or abandon planned investments in our business in response to changes in our business, which may impact our ability to attract and retain customers and our rate of innovation, either of which could harm our business. In March 2023, Silicon Valley Bank and Signature Bank, and most recently on May 1, 2023, First Republic Bank, were closed and taken over by the FDIC, which created significant market disruption and uncertainty for those who bank with those institutions, and which raised significant concern regarding the stability of the banking system in the United States, and in particular with respect to regional banks. If other banks and financial institutions enter receivership or become insolvent in the future in response to financial conditions affecting the banking system and financial markets, our ability to access our cash and cash equivalents may be threatened and such events could have a material adverse effect on our business and financial condition. As a result of these global issues, as well as other factors discussed in this Quarterly Report, it has been difficult to accurately forecast our revenues or financial results, especially given the near and long-term impacts of the economic and geopolitical issues, inflation, the Federal Reserve interest rate increases and the potential for a recession. In addition, while the potential impact and duration of these issues on the economy and our business may be difficult to assess or predict, these world events have resulted in, and may continue to result in, significant disruption of global financial markets, and may reduce our ability to access additional capital, which could negatively affect our liquidity in the future. Our results of operations could be materially below our forecasts as well, which could adversely affect our results of operations, disappoint analysts and investors, or cause our stock price to decline. Management’s plans with respect to the above are to continue their efforts towards responding to the changing economic landscape, to continue to control costs, conserve cash, strengthen margins through the introduction of new product lines focusing on AI compute capabilities for military and industrial applications, autonomous truck diving and improve company-wide execution. In February 2023, the Company announced that David Raun, the Company’s president and chief executive officer as of such date, would be stepping down, effective upon the appointment of his successor. In connection with the anticipated transition, on April 3, 2023, the Company and Mr. Raun entered into an Amended and Restated Employment Agreement (the “A&R Raun Agreement”), which superseded that certain Employment Agreement between the Company and Mr. Raun, dated June 24, 2020, as amended by that Amendment to Employment Agreement, dated July 15, 2020. The term of the A&R Raun Agreement commenced on April 3, 2023, and was to remain in effect until the earlier of (i) June 24, 2023 and (ii) the first date on which Mr. Raun’s successor commenced his or her employment as the chief executive officer of the Company, unless earlier terminated or extended pursuant to terms of the A&R Raun Agreement. On May 16, 2023, the Company entered into an employment agreement with Michael Knowles, pursuant to which, effective June 5, 2023, Mr. Knowles began serving as president and chief executive officer and president of the Company. Consistent with prior disclosures and the terms and conditions of the A&R Raun Agreement, Mr. Raun stepped down as president and chief executive officer of the Company on June 5, 2023, and the A&R Raun Agreement automatically terminated pursuant to its terms. Basis of Presentation The accompanying consolidated financial statements have been prepared on an accrual basis of accounting in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”), as set forth in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”). The unaudited consolidated financial statements herein have been prepared by the Company pursuant to the rules and regulations of the SEC. The accompanying interim unaudited consolidated financial statements have been prepared under the presumption that users of the interim financial information have either read or have access to the audited consolidated financial statements for the latest year ended December 31, 2022. Accordingly, note disclosures which would substantially duplicate the disclosures contained in the December 31, 2022 audited consolidated financial statements have been omitted from these interim unaudited consolidated financial statements. The Company’s management has evaluated all subsequent events and transactions through the date of filing this Quarterly Report. In the opinion of management, all adjustments considered necessary for a fair presentation have been included in the accompanying condensed consolidated financial statements. Operating results for the three and six month periods ended June 30, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. For further information, refer to the audited consolidated financial statements and notes for the year ended December 31, 2022, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 23, 2023. Principles of Consolidation The accompanying consolidated financial statements include the accounts of OSS, which include the operating results of its wholly owned subsidiary, OSS GmbH, and its wholly owned subsidiary OSS Europe. Intercompany balances and transactions have been eliminated in consolidation.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
Significant Accounting Policies	Jun. 30, 2023
Accounting Policies [Abstract]
Significant Accounting Policies	NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES There have been no changes to our accounting policies disclosed in our audited consolidated financial statements and the related notes for the year ended December 31, 2022, except for the adoption of ASU 2016-13, ("Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ”) as follows: Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13 , which sets out the principles for the recognition of measurement of credit losses on financial instruments. This standard provides guidance on the impairment of financial instruments that is based on expected losses rather than probable or incurred losses. Under this new guidance, the Company will recognize, as an allowance, our estimate of expected credit losses based upon historical and current information, and reasonable and supportable forecasts of future events and circumstances, as well as estimates of prepayments. Under this model, we are required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. Accounts receivable have been reduced by an allowance for doubtful accounts. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable after considering current market conditions and supportable forecasts when appropriate. This estimate is a result of management's evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations. The Company shall recognize an allowance for credit losses rather than a reduction to the carrying value of the asset for debt securities. To determine credit losses, we employ a systematic methodology that considers available quantitative and qualitative evidence. In addition, we consider specific adverse conditions related to the financial health of, and business outlook for, the investee. Upon adoption of this standard on January 1, 2023, there was no immediate material impact to the Company's consolidated financial position, results of operations or cash flows. On an ongoing basis, the Company will contemplate forward-looking economic conditions in recording lifetime expected credit losses for the Company’s financial assets measured at cost, such as the Company’s trade receivables and certain short-term investments. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates and assumptions. On an ongoing basis, our management evaluates these estimates and assumptions, including those related to determination of standalone selling prices of our products and services, allowance for doubtful account and sales reserves, income tax valuations, stock-based compensation, goodwill, intangible assets and inventory valuations and recoverability. We base our estimates on historical data and experience, as well as various other factors that our management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities. Goodwill Goodwill represents the excess of the purchase price paid over the fair value of the net assets acquired in business combinations. Goodwill is not amortized but is tested for impairment at least annually or when we deem that a triggering event has occurred. The Company reviews the impairment of goodwill for impairment annually at yearend. The Company completed its annual assessment for goodwill impairment and determined that goodwill is not impaired as of December 31, 2022 and no adjustment was required. In June 2023, the Company performed an interim impairment test of goodwill, as a result of the overall financial performance of OSS Classic as compared to plan, the transition of and focus on our product strategy of AI Transportables and the defense industry, deferment of certain orders. As a result of this interim evaluation, the Company recorded an impairment loss to goodwill of $ 2,700,000 , which was charged to operating expenses in the current period. Due to the COVID-19 pandemic, Ukraine war, inflationary pressures, other macroeconomic factors, the loss of our media and entertainment customer (which has historically been one of our largest customers), there has been uncertainty and disruption in the global economy, financial markets and our ongoing operations. We are not aware of any specific event or circumstance that would require an update to our estimates or assumptions or a revision of the carrying value of our assets or liabilities as of the date of this Quarterly Report. These estimates and assumptions may change as new events occur and additional information is obtained. As a result, actual results could differ materially from these estimates and assumptions. Recent Accounting Pronouncements Management has evaluated recent accounting pronouncements through the date of these consolidated financial statements and believes that the are no recent accounting pronouncements that will have a material impact on the Company's financial statements. Employee Retention Credit On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") to provide certain relief as a result of the COVID-19 pandemic. The CARES Act provides tax relief, along with other stimulus measures, including a provision for an Employee Retention Credit (“ERC”) The ERC was designed to encourage businesses to keep employees on the payroll during the COVID-19 pandemic. As there is no authoritative guidance under U.S. GAAP on accounting for government assistance to for-profit business entities, we accounted for the ERC funding consistent with our accounting treatment and reporting of the forgiveness of our Paycheck Protection Program ("PPP") Loan. The credit is based upon the number of employees in any given quarter in years 2020 and 2021. For the year 2020, the maximum credit is based upon the lesser of 50 % of eligible wages or $ 5,000 for the year. For the first three quarters only of the year 2021, the maximum quarterly credit is based upon the lesser of 70 % of eligible wages or $ 7,000 per quarter. The total maximum program credit per employee is $ 26,000 . The Company applied for the ERC program and as of June 30, 2023, has received $ 1,516,034 in credits, including interest, and paid commissions of $ 217,793 to a vendor who assisted with the calculations and filing of the application. The net proceeds of $ 1,298,241 have been reported as other income in the accompanying consolidated statements of operations. Income is recognized when reasonably assured of receipt based upon notice.

Short-Term Investments

Short-Term Investments	6 Months Ended
Short-Term Investments	Jun. 30, 2023
Investments Debt And Equity Securities [Abstract]
Short-Term Investments	NOTE 3 - SHORT-TERM INVESTMENTS The Company’s short-term investments by significant investment category as of June 30, 2023, were as follows: Description Amortized Gross Gross Accrued Estimated Level 1: (1) Cash alternatives $ 2,431,672 $ 25,066 $ - $ 3,268 $ 2,460,006 Certificates of deposit 6,806,683 - ( 9,244 ) 64,011 6,861,450 $ 9,238,355 $ 25,066 $ ( 9,244 ) $ 67,279 $ 9,321,456 (1) Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities. The Company’s short-term investments by significant investment category as of December 31, 2022, were as follows: Description Amortized Gross Gross Accrued Estimated Level 1: (1) Cash alternatives $ 5,139,940 $ 22,646 $ - $ 3,506 $ 5,166,092 Certificates of deposit 4,950,527 - ( 7,691 ) 14,607 4,957,443 $ 10,090,467 $ 22,646 $ ( 7,691 ) $ 18,113 $ 10,123,535 (1) Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities. Cash alternatives represents cash balances in savings accounts and U.S. Treasury Bills that are temporarily on-hand that are immediately available for investments in accordance with the Company’s investment policy. The Company typically invests in highly rated securities and its investment policy limits the amount of credit exposure to any one issuer. The policy requires investments in fixed income instruments denominated and payable in U.S. dollars only and requires investments to be investment grade, with a primary objective of minimizing the potential risk of principal loss.

Accounts Receivable

Accounts Receivable	6 Months Ended
Accounts Receivable	Jun. 30, 2023
Accounts Receivable Net Current [Abstract]
Accounts Receivable	NOTE 4 -ACCOUNTS RECEIVABLE Accounts receivable, net consisted of the following: June 30, December 31, 2023 2022 Accounts receivable $ 9,310,063 $ 11,372,598 Less: allowance for doubtful accounts ( 84,717 ) ( 45,354 ) $ 9,225,346 $ 11,327,244 Provision (recovery) for bad debt expense related to accounts receivable was $ 8,653 and ($ 5,524 ) for the three month periods ended June 30, 2023 and 2022, respectively, and $ 38,653 and ($ 5,524 ) for the six month periods ended June 30, 2023 and 2022, respectively.

Inventories

Inventories	6 Months Ended
Inventories	Jun. 30, 2023
Inventory Disclosure [Abstract]
Inventories	NOTE 5 – INVENTORIES Inventories, net consisted of the following: June 30, December 31, 2023 2022 Raw materials $ 10,944,553 $ 9,370,162 Sub-assemblies 849,968 892,123 Work-in-process 700,935 1,343,239 Finished goods 10,379,886 10,357,452 22,875,342 21,962,976 Less: allowances for obsolete and slow-moving inventories ( 1,411,417 ) ( 1,187,610 ) $ 21,463,925 $ 20,775,366

Long-Lived Intangible Assets

Long-Lived Intangible Assets	6 Months Ended
Long-Lived Intangible Assets	Jun. 30, 2023
Goodwill And Intangible Assets Disclosure [Abstract]
Long-Lived Intangible Assets	NOTE 6 – LONG LIVED INTANGIBLE ASSETS Definite lived intangible assets related to acquisition were as follows, as of June 30, 2023: Expected Remaining Gross Accumulated Net Customer lists and relationships 36 to 60 months 2 months $ 2,084,515 $ ( 2,073,977 ) $ 10,538 Drawings and technology 36 months 0 months 760,207 ( 760,207 ) - Trade name, trademarks & other 24 to 36 months 0 months 447,274 ( 447,274 ) - Non-compete 36 months 0 months 246,797 ( 246,797 ) - $ 3,538,793 $ ( 3,528,255 ) $ 10,538 Definite lived intangibles assets related to acquisitions were as follows, as of December 31, 2022: Expected Remaining Gross Accumulated Net Customer lists and relationships 36 to 60 months 8 months $ 2,084,515 $ ( 2,042,361 ) $ 42,154 Drawings and technology 36 months 0 months 760,207 ( 760,207 ) - Trade name, trademarks & other 24 to 36 months 0 months 447,274 ( 447,274 ) - Non-compete 36 months 0 months 246,797 ( 246,797 ) - $ 3,538,793 $ ( 3,496,639 ) $ 42,154 Amortization expense recognized during the three month periods ended June 30, 2023 and 2022, was $ 15,808 and $ 15,807 , respectively, and $ 31,616 and $ 31,616 for the six month periods ended June 30, 2023 and 2022, respectively.

Accrued Expenses and Other Liab

Accrued Expenses and Other Liabilities	6 Months Ended
Accrued Expenses and Other Liabilities	Jun. 30, 2023
Accrued Liabilities And Other Liabilities [Abstract]
Accrued Expenses and Other Liabilities	NOTE 7 – ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consisted of the following: June 30, December 31, 2023 2022 Accrued compensation and related liabilities $ 1,383,311 $ 989,478 Deferred revenue 286,955 378,952 Customer deposits 270,025 61,696 Warranty reserve 582,636 584,268 Trade and other taxes 1,148,261 225,743 Other accrued expenses 1,316,507 773,732 $ 4,987,695 $ 3,013,869

Debt

Debt	6 Months Ended
Debt	Jun. 30, 2023
Debt Disclosure [Abstract]
Debt	NOTE 8 – DEBT Bank Lines of Credit In April 2022, the Company obtained a domestic revolving line of credit of $ 2,000,000 with Torrey Pines Bank which was renewed in April 2023, and renews on an annual basis at the current prime rate. To access this line of credit the Company must maintain cash and investments balances at a minimum of $ 4,000,000 . No balance was outstanding on June 30, 2023 and December 31, 2022, respectively. OSS Europe has three revolving lines of credit with German institutions, including Uni Credit Bank AG, Commerzbank AG, and VR Bank, with total availability of up to € 2,200,000 (US$ 2,401,907 ) as of June 30, 2023. Borrowings under the lines of credit bear interest at a variable rate of Euribor plus a stated rate. The rates as of June 30, 2023, for the lines of credit ranged from 3.1 % to 5.62 %, with the balances remaining open indefinitely or until occurrence of a defined change of control event. There were no outstanding lines of credit balances as of June 30, 2023 and December 31, 2022, respectively. Foreign Debt Obligations OSS Europe had five term loans outstanding as of June 30, 2023, with an aggregate balance outstanding of € 2,759,673 (US$ 3,012,945 ) as follows: • On February 1, 2022, OSS Europe converted € 500,000 of its line of credit from VR Bank into a note payable. On August 1, 2022, this note was extended through February 1, 2023, with accrued interest having been paid current as of the original maturity date. On February 1, 2023, this note was further extended through July 31, 2023, and the interest rate was increased to 4.76 %, with accrued interest having been paid current as of February 1, 2023. The balance outstanding as of June 30, 2023, and December 31, 2022 was € 500,000 (US$ 545,888 ) and € 500,000 (US$ 536,616 ), respectively; • On February 16, 2022, OSS Europe converted € 500,000 of its line of credit from UniCredit Bank into a note payable. On August 16, 2022, this note was extended through February 16, 2023, with accrued interest having been paid current as of the original maturity date. On February 16, 2023, this note was further extended through August 16, 2023, and the interest rate was increased to 4.70 %, with accrued interest having been paid current as of February 16, 2023. The outstanding balance as of June 30, 2023 and December 31, 2022, was € 500,000 (US$ 545,888 ) and € 500,000 (US$ 536,616 ), respectively; • On April 9, 2021, OSS Europe converted € 500,000 of its line of credit from Commerzbank AG into a note payable. The note was due on September 30, 2021 , with a payment of principal and interest due upon maturity. This loan was paid in full on September 30, 2021, with proceeds from a new note with similar terms. This new note had an original maturity date of June 30, 2022; however, on September 30, 2022, this note was further extended through March 31, 2023, with accrued interest having been paid current as of the revised maturity date. On March 30, 2023, this note was further extended through September 29, 2023, and the interest rate was increased to 4.60 %, with accrued interest having been paid current as of March 30, 2023. The balance outstanding on the new note as of June 30, 2023 and December 31, 2022, was € 500,000 (US$ 545,888 ), and € 500,000 (US$ 536,616 ), respectively; • On June 18, 2021, OSS Europe converted € 500,000 of its line of credit from UniCredit Bank into a note payable. The note was originally due December 17, 2021 , and subsequently extended through June 17, 2022 . On June 17, 2022, this note was further extended through December 19, 2022 , with accrued interest having been paid current as of the revised maturity date. On December 19, 2022, this note was further extended through June 19, 2023 . However, on June 19, 2023, this note was further extended through December 19, 2023, and the interest rate was increased to 5.8 %, with accrued interest having been paid current as of June 19, 2023. The balance outstanding on the new note as of June 30, 2023 and December 31, 2022, was € 500,000 (US$ 545,888 ) and € 500,000 (US$ 536,616 ) respectively; and • On June 30, 2022, OSS Europe borrowed € 1,500,000 (US$ 1,468,173 ) from Commerzbank AG, which bears interest at 2.55 %, is due in June 2024, and is repayable in twenty-four month ly installments, with payments beginning July 31, 2022 . The balance outstanding as of June 30, 2023 and December 31, 2022, was € 759,673 (US$ 829,393 ) and € 1,132,356 (US$ 1,215,279 ), respectively. This loan is collateralized by accounts receivable attributable to a specific customer. Senior Secured Convertible Note On April 20, 2020, the Company entered into a Securities Purchase Agreement with an institutional investor, providing for the issuance by the Company of Senior Secured Convertible Promissory Notes with a principal face value of up to $ 6,000,000 . The notes were, subject to certain conditions, convertible into shares of the Company’s common stock, par value $ 0.0001 per share, at an initial conversion price per share of $ 2.50 . Notes issued under the Securities Purchase Agreement had a 10 % original issue discount. At the initial closing of this offering, the Company issued notes in the principal amount of $ 3,000,000 with a 10 % original issue discount, resulting in an aggregate purchase price of $ 2,700,000 at the initial closing. The notes bore no interest rate (except upon event of default) and, unless earlier converted or redeemed, were scheduled to mature on April 1, 2022 . Commencing July 1, 2020, the Company made monthly amortization payments equal to 1/22 nd of the initial principal, any accrued and unpaid interest, and late charges and any deferred or accelerated amount, of such note, which could be satisfied in cash at a redemption price equal to 105 % of such installment amount ( 110 % of such installment amount on notes issued at additional closings). The remaining balance of the notes of $ 2,590,909 was converted into Company common stock on March 30, 2022; accordingly, the outstanding balance of the notes as of June 30, 2023 and 2022, was $ 0 , respectively. The original issue discount of 10 % on the note was recorded as a debt discount, decreasing the note payable. This debt discount is amortized to interest expense using the effective interest rate method over the term of the loan. For the three month periods ended June 30, 2023 and 2022, total debt discount amortization was $ 0 , respectively, and for the six month periods ended June 30, 2023 and 2022, total debt discount amortization was $ 0 and $ 1,161 , respectively. Such amounts are included in interest expense in the accompanying consolidated statements of operations. Debt issuance costs in the amount of $ 316,274 related to this indebtedness were deducted from the face value of the note. Such costs are amortized to interest expense using the effective interest rate method over the term of the loan. Total debt issuance costs amortized during the three month periods ended June 30, 2023 and 2022, was $ 0 , respectively and for the six month periods ended June 30, 2023 and 2022 was $ 0 and $ 1,223 , respectively. Such amounts are included in interest expense in the accompanying consolidated statements of operations. A summary of outstanding debt obligations as of June 30, 2023, was as follows: Loan Description Current Maturity Balance Balance ($) Current Long-term Foreign: VR Bank 4.760 % July-23 € 500,000 $ 545,888 $ 545,888 $ - Uni Credit Bank AG 4.700 % August-23 500,000 545,888 545,888 - Commerzbank AG 4.600 % September-23 500,000 545,888 545,888 - Uni Credit Bank AG 5.800 % December-23 500,000 545,888 545,888 - Commerzbank AG 2.550 % June-24 759,673 829,393 829,393 - € 2,759,673 $ 3,012,945 $ 3,012,945 $ - Total future principal payments under notes payable as of June 30, 2023, was as follows: Period Ending June 30, Foreign Total 2024 $ 3,012,945 $ 3,012,945 2025 - - Total minimum payments 3,012,945 3,012,945 Current portion of notes payable ( 3,012,945 ) ( 3,012,945 ) Notes payable, net of current portion $ - $ -

Stockholders' Equity

Stockholders' Equity	6 Months Ended
Stockholders' Equity	Jun. 30, 2023
Stockholders Equity Note [Abstract]
Stockholders' Equity	NOTE 9 – STOCKHOLDERS’ EQUITY The Company’s amended and restated certificate of incorporation, filed on December 14, 2017, authorizes the Company to issue 10,000,000 shares of preferred stock and 50,000,000 shares of common stock. 2017 Equity Incentive Plan Amendments On October 10, 2017, the Company’s board of directors approved and adopted the 2017 Equity Incentive Plan (as amended to date, the “2017 Plan”), subject to stockholder approval thereof. On December 18, 2017, the Company’s stockholders approved the 2017 Plan. The 2017 Plan allows for the grant of a variety of equity vehicles to provide flexibility in the grant and issuance of equity awards, including stock options, unrestricted stock grants, restricted stock units, stock bonuses and performance-based awards. An aggregate of 1,500,000 shares of common stock were initially reserved for issuance under the Plan. On June 24, 2020, the Company amended its 2017 Equity Incentive Plan to increase the maximum limitation of the number of shares of common stock with respect to one or more Stock Awards (as defined in the 2017 Plan) that may be granted to any one participant under the 2017 Plan during any calendar year from 500,000 shares to 1,000,000 shares. The amendment did not increase the total number of shares of common stock reserved under the 2017 Plan and did not require stockholder approval. On May 19, 2021, the Company’s stockholders approved the Company’s proposal to increase the number of shares authorized for issuance under the 2017 Plan from 1,500,000 shares to 3,000,000 shares of common stock of the Company pursuant to the terms and conditions of the 2017 Plan. The amendment took effect upon receipt of stockholder approval. On March 16, 2023, the Company’s board of directors unanimously approved, subject to stockholder approval, an amendment to the 2017 Plan (the “Plan Amendment”), which if approved by our stockholders, would have resulted in an increase in the number of shares of common stock authorized for issuance thereunder from 3,000,000 to 4,500,000 shares of common stock. The Plan Amendment was presented to stockholders for approval at the Company’s 2023 Annual Meeting of Stockholders; however, the proposal was not approved, and therefor the Plan Amendment was not implemented and the 2017 Plan was not altered. Executive Employment Agreements As contemplated by the A&R Raun Agreement, in connection with the termination of Mr. Raun’s role as chief executive officer and president of the Company, all of those unvested restricted stock units ("RSUs") held by Mr. Raun that were scheduled to vest within twelve months from his termination date (June 5, 2023) became vested as of such date, with the remaining unvested RSUs being forfeited. As a result, the vesting of 150,556 RSUs was accelerated and 52,132 RSUs were forfeited. On June 5, 2023, in connection with, and as a material inducement to, the appointment of Mr. Knowles as the Company’s new chief executive officer and president, Mr. Knowles was granted (i) non-qualified stock options to purchase 400,000 shares of Company common stock (the “Inducement Options”), which Inducement Options have an exercise price equal to $ 2.95 per share and will expire ten years from the date of the grant; and (ii) 400,000 restricted stock units (together with the Inducement Options, the “Inducement Grants”). Both of the Inducement Grants shall vest over a four-year period as follows: 25 % on the one-year anniversary of the date of the grant, and the remaining 75 % will vest in six equal installments, commencing six months after the one-year anniversary of the date of grant and every six months thereafter until fully vested, subject to Mr. Knowles’ continued employment by the Company. The Inducement Grants were granted outside of the Company’s 2017 Plan and any other equity incentive plans, and in reliance on the employment inducement exemption provided under the Nasdaq Listing Rule 5635(c)(4). Stock Options A summary of stock option activity under each of the Company’s equity incentive plans during the six month period ended June 30, 2023, was as follows: Stock Options Outstanding Number of Underlying Weighted Weighted Aggregate Outstanding on January 1, 2023 970,680 $ 2.07 5.61 $ 864,762 Granted 400,000 $ 2.95 9.94 - Forfeited / Canceled ( 1,250 ) $ 2.10 - $ 962 Exercised ( 20,935 ) $ 0.61 - $ 47,233 Outstanding on June 30, 2023 1,348,495 $ 2.35 2.24 $ 816,567 Exercisable as of June 30, 2023 948,495 $ 2.10 2.24 $ 816,567 Vested and expected to vest as of June 30, 2023 948,495 $ 2.10 2.24 $ 816,567 The following table presents details of the assumptions used to calculate the weighted-average grant date fair value of common stock options granted by the Company. There were no options granted under the Company's 2017 Plan during the six month period ended June 30, 2022. The following table presents the grant date fair value of options vested and the intrinsic value of options exercised: For the Six Months Ended June 30, 2023 2022 Expected term (in years) 6.16 - Expected volatility 72.73 % 0.00 % Risk-free interest rate 3.79 % 0.00 % Weighted average grant date fair value per share $ 2.95 $ - Grant date fair value of options vested $ 933,399 $ 2,005,285 Intrinsic value of options exercised $ 47,233 $ 119,927 As of June 30, 2023, the amount of unearned stock-based compensation estimated to be expensed from 2023 through 2027 related to unvested stock options is $ 782,295 , net of estimated forfeitures, which is expected to be recognized over a weighted average period of 2.27 years. If there are any modifications or cancellations of the underlying unvested awards, the Company may be required to accelerate, increase, or cancel any remaining unearned stock-based compensation expense or calculate and record additional expense. Future stock-based compensation expense and unearned stock-based compensation will increase to the extent that the Company grants additional common stock options or other stock-based awards. Restricted Stock Units RSUs may be granted at the discretion of the compensation committee of the Company's board of directors under the Company’s 2017 Plan in connection with the hiring and retention of personnel and are subject to certain conditions. RSUs vest quarterly or semi-annually over a period of one to four years and are typically forfeited if employment is terminated before the RSUs vest. The compensation expense related to the RSUs is calculated as the fair value of the common stock on the grant date and is amortized to expense over the vesting period and is adjusted for estimated forfeitures. The Company’s RSU activity for the six months ended June 30, 2023, was as follows: Restricted Stock Units Number of Underlying Weighted Unvested on January 1, 2023 907,507 $ 4.04 Granted 889,528 $ 2.80 Vested ( 512,805 ) $ 3.79 Canceled ( 97,798 ) $ 4.32 Unvested on June 30, 2023 1,186,432 $ 3.19 As of June 30, 2023, there was $ 4,177,442 of unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over a weighted average period of 1.73 years. Stock-based compensation expense for the three and six month periods ended June 30, 2023 and 2022, was comprised of the following: For the Three Months Ended June 30, For the Six Months Ended June 30, Stock-based compensation classified as: 2023 2022 2023 2022 General and administrative $ 651,291 $ 300,346 $ 945,286 $ 502,441 Production 86,528 70,959 153,969 126,415 Marketing and selling 86,516 104,364 146,504 186,544 Research and development 73,674 56,967 126,458 100,064 $ 898,009 $ 532,636 $ 1,372,217 $ 915,464 Warrants The following table summarizes the Company’s warrant activity during the six months ended June 30, 2023: Number of Weighted Warrants outstanding – January 1, 2023 451,112 $ 5.37 Warrants granted - $ - Warrants expired ( 380,000 ) $ 6.00 Warrants exercised ( 28,090 ) $ 1.78 Warrants outstanding – June 30, 2023 43,022 $ 2.15

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2023
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 10 – COMMITMENTS AND CONTINGENCIES Legal We are subject to litigation, claims, investigations, and audits arising from time to time in the ordinary course of our business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of any such matters as of June 30, 2023 and December 31, 2022, are not expect to have a materially adverse effect on the consolidated financial position or results of operations of the Company. Guarantees and Indemnities The Company has made certain indemnities, under which it may be required to make payments to an indemnified party, in relation to certain transactions. The Company indemnifies its directors, officers, employees, and agents to the maximum extent permitted under the laws of the State of Delaware. In connection with its facility lease, the Company has indemnified its lessor for certain claims arising from the use of the facilities. The duration of the indemnities varies, and in many cases is indefinite. These indemnities do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has not been obligated to make any payments for these obligations and no liabilities have been recorded for these indemnities in the accompanying consolidated balance sheets. Leases The Company leases its offices, manufacturing, and warehouse facility in San Diego County under a non-cancelable operating lease. Our corporate headquarters are in a leased space comprising of approximately 29,342 square feet in Escondido, California under a lease that was modified in February 2019 and expires in August 2024 . The Company also leases a 3,208 square foot facility in Salt Lake City, Utah that houses our Ion software development team that was scheduled to expire in June 2023 pursuant to its terms, and was extended through June 2025. The Company is the lessee of 1,632 square feet located in Anaheim, California, which was scheduled to expire in June 2023 pursuant to its terms, and was extended through June 2025. OSS Europe leases space comprised of 11,836 square feet on a month-to-month basis. Other information related to leases as of the three and six month periods ended June 30, 2023 and 2022, was as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Operating lease cost $ 196,538 $ 165,785 $ 334,107 $ 326,695 Total lease cost $ 196,538 $ 165,785 $ 334,107 $ 326,695 Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases $ 81,843 $ 165,785 $ 243,185 $ 326,695 Right-of-use assets obtained in exchange for new operating lease liabilities - - - - Weighted-average remaining lease term - operating leases 16.2 months 25.8 months Weighted-average discount rate - operating leases 12.1 % 12.8 % The following table presents a maturity of the Company’s operating lease liabilities as of June 30, 2023: Year Operating Leases Remaining payments in 2023 $ 306,030 2024 446,361 2025 21,061 2026 2,408 Total lease payments $ 775,860 Less: Amount representing interest ( 43,355 ) Present value of lease payment 732,505 Less: current portion of operating lease obligation ( 583,675 ) Operating lease obligation, net of current portion $ 148,830 Purchase Commitments In the normal course of business, the Company may enter into purchase commitments for inventory components to be delivered based upon non-cancellable, pre-established, delivery schedules that are over a period that may exceed one year. Total non-cancellable purchase orders as of June 30, 2023, were $ 10,762,867 . Customer Concentration During the three month period ended June 30, 2023, the Company had two customers that accounted for (in the aggregate) approximately 29 % of revenue, and during the three month period ended June 30, 2022, the Company had one customer that accounted for approximately 35 % of revenue, for which each of such customers represented greater than 10% of our consolidated quarterly revenue. During the six month period ended June 30, 2023, the Company had two customers that accounted for (in the aggregate) approximately 33 % of revenue, and during the six month period ended June 30, 2022, the Company had one customer that accounted for approximately 31 % of revenue, for which each of such customers represented greater than 10% of our consolidated quarterly revenue. As of June 30, 2023 and December 31, 2022, the Company had two customers that accounted for (in the aggregate) approximately 29 % and 47 % of trade accounts receivables, respectively, for which each of such customer’s balances represented greater than 10% of our consolidated trade accounts receivable balance. During the three month periods ended June 30, 2023 and 2022, the Company had approximately 36 % and 23 %of purchases, respectively, from vendors/suppliers for which each of such vendors represents greater than 10% of our consolidated purchases. During the six month periods ended June 30, 2023 and 2022, the Company had approximately 32 % and 32 % of purchases, respectively, from vendors/suppliers for which each represents greater than 10% of our consolidated purchases.

Net (Loss) Income Per Share

Net (Loss) Income Per Share	6 Months Ended
Net (Loss) Income Per Share	Jun. 30, 2023
Earnings Per Share [Abstract]
Net (Loss) Income Per Share	NOTE 11 – NET (LOSS) INCOME PER SHARE Basic and diluted net (loss) income per share were calculated as follows for the three and six periods ended June 30, 2023 and 2022: For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Basic and diluted net (loss) income per share: Numerator: Net (loss) income $ ( 2,399,496 ) $ 322,822 $ ( 2,800,008 ) $ 902,056 Denominator: Weighted average common shares outstanding - basic 20,397,741 19,940,902 20,325,029 19,416,832 Effect of dilutive securities - 1,239,588 - 930,085 Weighted average common shares outstanding - diluted 20,397,741 21,180,490 20,325,029 20,346,917 Net (loss) income per share: Basic $ ( 0.12 ) $ 0.02 $ ( 0.14 ) $ 0.05 Diluted $ ( 0.12 ) $ 0.02 $ ( 0.14 ) $ 0.04

Revenue, Segment and Geographic

Revenue, Segment and Geographic Information	6 Months Ended
Revenue, Segment and Geographic Information	Jun. 30, 2023
Segment Reporting [Abstract]
Revenue, Segment and Geographic Information	NOTE 12 – REVENUE, SEGMENT AND GEOGRAPHIC INFORMATION The Company operates in two reportable segments: (i) the design and manufacture of high-performance customized computers and flash arrays, in-flight entertainment and connectivity, which we refer to as “OSS Classic,” and (ii) our subsidiary, OSS Europe, which operates as a value-added reseller with minimal product customization. The Company evaluates financial performance on a company-wide basis. Segment details for the three and six month periods ended June 30, 2023 and 2022, were as follows: For the Three Months Ended June 30, 2023 For the Three Months Ended June 30, 2022 OSS Classic OSS Europe Total OSS Classic OSS Europe Total Revenues $ 8,278,096 $ 8,933,436 $ 17,211,532 $ 10,715,361 $ 7,587,982 $ 18,303,343 Cost of revenues ( 5,863,974 ) ( 6,549,620 ) ( 12,413,594 ) ( 7,180,343 ) ( 5,922,682 ) ( 13,103,025 ) Gross profit 2,414,122 2,383,816 4,797,938 3,535,018 1,665,300 5,200,318 Gross margin % 29.2 % 26.7 % 27.9 % 33.0 % 21.9 % 28.4 % Total operating expenses ( 7,238,984 ) ( 972,511 ) ( 8,211,495 ) ( 3,876,028 ) ( 922,367 ) ( 4,798,395 ) (Loss) income from operations $ ( 4,824,862 ) $ 1,411,305 $ ( 3,413,557 ) $ ( 341,010 ) $ 742,933 $ 401,923 For the Six Months Ended June 30, 2023 For the Six Months Ended June 30, 2022 OSS Classic OSS Europe Total OSS Classic OSS Europe Total Revenues $ 16,908,682 $ 17,084,744 $ 33,993,426 $ 21,297,403 $ 14,058,617 $ 35,356,020 Cost of revenues ( 11,365,683 ) ( 12,759,043 ) ( 24,124,726 ) ( 13,982,054 ) ( 11,032,993 ) ( 25,015,047 ) Gross profit 5,542,999 4,325,701 9,868,700 7,315,349 3,025,624 10,340,973 Gross profit % 32.8 % 25.3 % 29.0 % 34.3 % 21.5 % 29.2 % Total operating expenses ( 11,477,078 ) ( 2,001,527 ) ( 13,478,605 ) ( 7,504,643 ) ( 1,784,275 ) ( 9,288,918 ) (Loss) income from operations $ ( 5,934,079 ) $ 2,324,174 $ ( 3,609,905 ) $ ( 189,294 ) $ 1,241,349 $ 1,052,055 Revenue from customers with non-U.S. billing addresses represented approximately 75 % and 78 % of the Company’s revenue during the three month periods ended June 30, 2023 and 2022, respectively, and 67 % and 74 % of the Company’s revenue during the six month periods ended June 30, 2023 and 2022, respectively. As of June 30, 2023, substantially all the Company’s long-lived assets are located in the United States of America, with the exception of assets of $ 247,781 located in Germany.

Subsequent Events

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	NOTE 13 – SUBSEQUENT EVENTS The Company’s management has evaluated subsequent events after the consolidated balance sheet dated as of June 30, 2023, through the date of filing of this Quarterly Report. Based upon the evaluation, management has determined that, other than as disclosed in the accompanying notes, no subsequent events have occurred that would require recognition in the accompanying consolidated financial statements or disclosure in the notes thereto. On July 17, 2023, the Company received a final payment of ERC funds of $ 418,430 , net of commission paid to a vendor who assisted with the calculations and filing of the application. On July 17, 2023, the Company entered into an employee agreement with its newly hired vice president of sales, pursuant to which, as a material inducement to his entering into employment with the Company, the Company granted him 35,715 RSUs, valued at $ 100,000 . The RSUs vest over a three year period as follows: 33 1/3% will vest on the one-year anniversary of the date of the grant, and the remaining 66 2/3% will vest in four equal installments, commencing six months after the one-year anniversary of the date of grant and every six months thereafter until fully vested, subject to continued employment by the Company. The RSUs were granted as inducement grants outside of the Company’s equity incentive plans in accordance with the employment inducement exemption provided under the Nasdaq Listing Rule 5635(c)(4). On July 14, 2023, the board of directors of the Company disbanded the Strategic Transition Committee that was formed on February 2, 2023, for purpose of assisting in the transition and retention of a successor chief executive officer. All remuneration payable to the members of the Strategic Transition Committee through June 5, 2023, the date that the chief executive officer transition was completed, was paid in full. On July 31, 2023, OSS Europe paid in full their promissory note that matured on July 31, 2023, in the amount of € 500,000 (US$ 550,947 ). On August 8, 2023, Jack Harrison and Sita Lowman tendered their resignations from the Company’s board of directors (the “Board”) and the relevant committees thereof, effective September 30, 2023. On August 8, 2023, the Board appointed Michael Knowles, the Company’s Chief Executive Officer and President, and retired Admiral Michael Dumont, a member of the Company’s advisory board, as directors of the Company, effective September 30, 2023, to fill the vacancies created by the resignations of Mr. Harrison and Ms. Lowman. Commencing September 30, 2023, Mr. Knowles and Mr. Dumont will hold the director positions until the Company’s next annual meeting of stockholders or until their respective successors are elected and qualified, subject to their earlier death, resignation or removal.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	6 Months Ended
Significant Accounting Policies (Policies)	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements have been prepared on an accrual basis of accounting in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”), as set forth in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”). The unaudited consolidated financial statements herein have been prepared by the Company pursuant to the rules and regulations of the SEC. The accompanying interim unaudited consolidated financial statements have been prepared under the presumption that users of the interim financial information have either read or have access to the audited consolidated financial statements for the latest year ended December 31, 2022. Accordingly, note disclosures which would substantially duplicate the disclosures contained in the December 31, 2022 audited consolidated financial statements have been omitted from these interim unaudited consolidated financial statements. The Company’s management has evaluated all subsequent events and transactions through the date of filing this Quarterly Report. In the opinion of management, all adjustments considered necessary for a fair presentation have been included in the accompanying condensed consolidated financial statements. Operating results for the three and six month periods ended June 30, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. For further information, refer to the audited consolidated financial statements and notes for the year ended December 31, 2022, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 23, 2023.
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include the accounts of OSS, which include the operating results of its wholly owned subsidiary, OSS GmbH, and its wholly owned subsidiary OSS Europe. Intercompany balances and transactions have been eliminated in consolidation.
Measurement of Credit Losses on Financial Instruments	Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13 , which sets out the principles for the recognition of measurement of credit losses on financial instruments. This standard provides guidance on the impairment of financial instruments that is based on expected losses rather than probable or incurred losses. Under this new guidance, the Company will recognize, as an allowance, our estimate of expected credit losses based upon historical and current information, and reasonable and supportable forecasts of future events and circumstances, as well as estimates of prepayments. Under this model, we are required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. Accounts receivable have been reduced by an allowance for doubtful accounts. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable after considering current market conditions and supportable forecasts when appropriate. This estimate is a result of management's evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations. The Company shall recognize an allowance for credit losses rather than a reduction to the carrying value of the asset for debt securities. To determine credit losses, we employ a systematic methodology that considers available quantitative and qualitative evidence. In addition, we consider specific adverse conditions related to the financial health of, and business outlook for, the investee. Upon adoption of this standard on January 1, 2023, there was no immediate material impact to the Company's consolidated financial position, results of operations or cash flows. On an ongoing basis, the Company will contemplate forward-looking economic conditions in recording lifetime expected credit losses for the Company’s financial assets measured at cost, such as the Company’s trade receivables and certain short-term investments.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates and assumptions. On an ongoing basis, our management evaluates these estimates and assumptions, including those related to determination of standalone selling prices of our products and services, allowance for doubtful account and sales reserves, income tax valuations, stock-based compensation, goodwill, intangible assets and inventory valuations and recoverability. We base our estimates on historical data and experience, as well as various other factors that our management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities.
Goodwill	Goodwill Goodwill represents the excess of the purchase price paid over the fair value of the net assets acquired in business combinations. Goodwill is not amortized but is tested for impairment at least annually or when we deem that a triggering event has occurred. The Company reviews the impairment of goodwill for impairment annually at yearend. The Company completed its annual assessment for goodwill impairment and determined that goodwill is not impaired as of December 31, 2022 and no adjustment was required. In June 2023, the Company performed an interim impairment test of goodwill, as a result of the overall financial performance of OSS Classic as compared to plan, the transition of and focus on our product strategy of AI Transportables and the defense industry, deferment of certain orders. As a result of this interim evaluation, the Company recorded an impairment loss to goodwill of $ 2,700,000 , which was charged to operating expenses in the current period. Due to the COVID-19 pandemic, Ukraine war, inflationary pressures, other macroeconomic factors, the loss of our media and entertainment customer (which has historically been one of our largest customers), there has been uncertainty and disruption in the global economy, financial markets and our ongoing operations. We are not aware of any specific event or circumstance that would require an update to our estimates or assumptions or a revision of the carrying value of our assets or liabilities as of the date of this Quarterly Report. These estimates and assumptions may change as new events occur and additional information is obtained. As a result, actual results could differ materially from these estimates and assumptions.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Management has evaluated recent accounting pronouncements through the date of these consolidated financial statements and believes that the are no recent accounting pronouncements that will have a material impact on the Company's financial statements.
Employee Retention Credit	Employee Retention Credit On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") to provide certain relief as a result of the COVID-19 pandemic. The CARES Act provides tax relief, along with other stimulus measures, including a provision for an Employee Retention Credit (“ERC”) The ERC was designed to encourage businesses to keep employees on the payroll during the COVID-19 pandemic. As there is no authoritative guidance under U.S. GAAP on accounting for government assistance to for-profit business entities, we accounted for the ERC funding consistent with our accounting treatment and reporting of the forgiveness of our Paycheck Protection Program ("PPP") Loan. The credit is based upon the number of employees in any given quarter in years 2020 and 2021. For the year 2020, the maximum credit is based upon the lesser of 50 % of eligible wages or $ 5,000 for the year. For the first three quarters only of the year 2021, the maximum quarterly credit is based upon the lesser of 70 % of eligible wages or $ 7,000 per quarter. The total maximum program credit per employee is $ 26,000 . The Company applied for the ERC program and as of June 30, 2023, has received $ 1,516,034 in credits, including interest, and paid commissions of $ 217,793 to a vendor who assisted with the calculations and filing of the application. The net proceeds of $ 1,298,241 have been reported as other income in the accompanying consolidated statements of operations. Income is recognized when reasonably assured of receipt based upon notice.

Short-Term Investments (Tables)

Short-Term Investments (Tables)	6 Months Ended
Short-Term Investments (Tables)	Jun. 30, 2023
Investments Debt And Equity Securities [Abstract]
Summary of Short-Term Investments by Significant Investment Category	The Company’s short-term investments by significant investment category as of June 30, 2023, were as follows: Description Amortized Gross Gross Accrued Estimated Level 1: (1) Cash alternatives $ 2,431,672 $ 25,066 $ - $ 3,268 $ 2,460,006 Certificates of deposit 6,806,683 - ( 9,244 ) 64,011 6,861,450 $ 9,238,355 $ 25,066 $ ( 9,244 ) $ 67,279 $ 9,321,456 (1) Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities. The Company’s short-term investments by significant investment category as of December 31, 2022, were as follows: Description Amortized Gross Gross Accrued Estimated Level 1: (1) Cash alternatives $ 5,139,940 $ 22,646 $ - $ 3,506 $ 5,166,092 Certificates of deposit 4,950,527 - ( 7,691 ) 14,607 4,957,443 $ 10,090,467 $ 22,646 $ ( 7,691 ) $ 18,113 $ 10,123,535 (1) Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities.

Accounts Receivable (Tables)

Accounts Receivable (Tables)	6 Months Ended
Accounts Receivable (Tables)	Jun. 30, 2023
Accounts Receivable Net Current [Abstract]
Schedule of Accounts Receivable, Net	Accounts receivable, net consisted of the following: June 30, December 31, 2023 2022 Accounts receivable $ 9,310,063 $ 11,372,598 Less: allowance for doubtful accounts ( 84,717 ) ( 45,354 ) $ 9,225,346 $ 11,327,244

Inventories (Tables)

Inventories (Tables)	6 Months Ended
Inventories (Tables)	Jun. 30, 2023
Inventory Disclosure [Abstract]
Summary of Inventories, Net	Inventories, net consisted of the following: June 30, December 31, 2023 2022 Raw materials $ 10,944,553 $ 9,370,162 Sub-assemblies 849,968 892,123 Work-in-process 700,935 1,343,239 Finished goods 10,379,886 10,357,452 22,875,342 21,962,976 Less: allowances for obsolete and slow-moving inventories ( 1,411,417 ) ( 1,187,610 ) $ 21,463,925 $ 20,775,366

Long-Lived Intangible Assets (T

Long-Lived Intangible Assets (Tables)	6 Months Ended
Long-Lived Intangible Assets (Tables)	Jun. 30, 2023
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Definite Lived Intangible Assets	Definite lived intangible assets related to acquisition were as follows, as of June 30, 2023: Expected Remaining Gross Accumulated Net Customer lists and relationships 36 to 60 months 2 months $ 2,084,515 $ ( 2,073,977 ) $ 10,538 Drawings and technology 36 months 0 months 760,207 ( 760,207 ) - Trade name, trademarks & other 24 to 36 months 0 months 447,274 ( 447,274 ) - Non-compete 36 months 0 months 246,797 ( 246,797 ) - $ 3,538,793 $ ( 3,528,255 ) $ 10,538 Definite lived intangibles assets related to acquisitions were as follows, as of December 31, 2022: Expected Remaining Gross Accumulated Net Customer lists and relationships 36 to 60 months 8 months $ 2,084,515 $ ( 2,042,361 ) $ 42,154 Drawings and technology 36 months 0 months 760,207 ( 760,207 ) - Trade name, trademarks & other 24 to 36 months 0 months 447,274 ( 447,274 ) - Non-compete 36 months 0 months 246,797 ( 246,797 ) - $ 3,538,793 $ ( 3,496,639 ) $ 42,154

Accrued Expenses and Other Li_2

Accrued Expenses and Other Liabilities (Tables)	6 Months Ended
Accrued Expenses and Other Liabilities (Tables)	Jun. 30, 2023
Accrued Liabilities And Other Liabilities [Abstract]
Schedule of Accrued Expenses and Other Liabilities	Accrued expenses and other liabilities consisted of the following: June 30, December 31, 2023 2022 Accrued compensation and related liabilities $ 1,383,311 $ 989,478 Deferred revenue 286,955 378,952 Customer deposits 270,025 61,696 Warranty reserve 582,636 584,268 Trade and other taxes 1,148,261 225,743 Other accrued expenses 1,316,507 773,732 $ 4,987,695 $ 3,013,869

Debt (Tables)

Debt (Tables)	6 Months Ended
Debt (Tables)	Jun. 30, 2023
Debt Disclosure [Abstract]
Summary of Outstanding Debt Obligations	A summary of outstanding debt obligations as of June 30, 2023, was as follows: Loan Description Current Maturity Balance Balance ($) Current Long-term Foreign: VR Bank 4.760 % July-23 € 500,000 $ 545,888 $ 545,888 $ - Uni Credit Bank AG 4.700 % August-23 500,000 545,888 545,888 - Commerzbank AG 4.600 % September-23 500,000 545,888 545,888 - Uni Credit Bank AG 5.800 % December-23 500,000 545,888 545,888 - Commerzbank AG 2.550 % June-24 759,673 829,393 829,393 - € 2,759,673 $ 3,012,945 $ 3,012,945 $ -
Schedule of Total Future Principal Payments under Notes Payable	Total future principal payments under notes payable as of June 30, 2023, was as follows: Period Ending June 30, Foreign Total 2024 $ 3,012,945 $ 3,012,945 2025 - - Total minimum payments 3,012,945 3,012,945 Current portion of notes payable ( 3,012,945 ) ( 3,012,945 ) Notes payable, net of current portion $ - $ -

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
Stockholders' Equity (Tables)	Jun. 30, 2023
Stockholders Equity Note [Abstract]
Summary of Stock Option Activity	A summary of stock option activity under each of the Company’s equity incentive plans during the six month period ended June 30, 2023, was as follows: Stock Options Outstanding Number of Underlying Weighted Weighted Aggregate Outstanding on January 1, 2023 970,680 $ 2.07 5.61 $ 864,762 Granted 400,000 $ 2.95 9.94 - Forfeited / Canceled ( 1,250 ) $ 2.10 - $ 962 Exercised ( 20,935 ) $ 0.61 - $ 47,233 Outstanding on June 30, 2023 1,348,495 $ 2.35 2.24 $ 816,567 Exercisable as of June 30, 2023 948,495 $ 2.10 2.24 $ 816,567 Vested and expected to vest as of June 30, 2023 948,495 $ 2.10 2.24 $ 816,567
Schedule of Assumption to Calculate Weighted Average Grant Date Fair Value of Options Grant	The following table presents details of the assumptions used to calculate the weighted-average grant date fair value of common stock options granted by the Company. There were no options granted under the Company's 2017 Plan during the six month period ended June 30, 2022. The following table presents the grant date fair value of options vested and the intrinsic value of options exercised: For the Six Months Ended June 30, 2023 2022 Expected term (in years) 6.16 - Expected volatility 72.73 % 0.00 % Risk-free interest rate 3.79 % 0.00 % Weighted average grant date fair value per share $ 2.95 $ - Grant date fair value of options vested $ 933,399 $ 2,005,285 Intrinsic value of options exercised $ 47,233 $ 119,927
Schedule of RSU Activity	The Company’s RSU activity for the six months ended June 30, 2023, was as follows: Restricted Stock Units Number of Underlying Weighted Unvested on January 1, 2023 907,507 $ 4.04 Granted 889,528 $ 2.80 Vested ( 512,805 ) $ 3.79 Canceled ( 97,798 ) $ 4.32 Unvested on June 30, 2023 1,186,432 $ 3.19
Summary of Stock-Based Compensation Expense	Stock-based compensation expense for the three and six month periods ended June 30, 2023 and 2022, was comprised of the following: For the Three Months Ended June 30, For the Six Months Ended June 30, Stock-based compensation classified as: 2023 2022 2023 2022 General and administrative $ 651,291 $ 300,346 $ 945,286 $ 502,441 Production 86,528 70,959 153,969 126,415 Marketing and selling 86,516 104,364 146,504 186,544 Research and development 73,674 56,967 126,458 100,064 $ 898,009 $ 532,636 $ 1,372,217 $ 915,464
Schedule of Warrant Activity	The following table summarizes the Company’s warrant activity during the six months ended June 30, 2023: Number of Weighted Warrants outstanding – January 1, 2023 451,112 $ 5.37 Warrants granted - $ - Warrants expired ( 380,000 ) $ 6.00 Warrants exercised ( 28,090 ) $ 1.78 Warrants outstanding – June 30, 2023 43,022 $ 2.15

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
Commitments and Contingencies (Tables)	Jun. 30, 2023
Commitments And Contingencies Disclosure [Abstract]
Schedule of Other information Related to Leases	Other information related to leases as of the three and six month periods ended June 30, 2023 and 2022, was as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Operating lease cost $ 196,538 $ 165,785 $ 334,107 $ 326,695 Total lease cost $ 196,538 $ 165,785 $ 334,107 $ 326,695 Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases $ 81,843 $ 165,785 $ 243,185 $ 326,695 Right-of-use assets obtained in exchange for new operating lease liabilities - - - - Weighted-average remaining lease term - operating leases 16.2 months 25.8 months Weighted-average discount rate - operating leases 12.1 % 12.8 %
Summary of Maturity of Operating Lease Liabilities	The following table presents a maturity of the Company’s operating lease liabilities as of June 30, 2023: Year Operating Leases Remaining payments in 2023 $ 306,030 2024 446,361 2025 21,061 2026 2,408 Total lease payments $ 775,860 Less: Amount representing interest ( 43,355 ) Present value of lease payment 732,505 Less: current portion of operating lease obligation ( 583,675 ) Operating lease obligation, net of current portion $ 148,830

Net (Loss) Income Per Share (Ta

Net (Loss) Income Per Share (Tables)	6 Months Ended
Net (Loss) Income Per Share (Tables)	Jun. 30, 2023
Earnings Per Share [Abstract]
Summary of Basic and Diluted Net (Loss) Income Per Share	Basic and diluted net (loss) income per share were calculated as follows for the three and six periods ended June 30, 2023 and 2022: For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Basic and diluted net (loss) income per share: Numerator: Net (loss) income $ ( 2,399,496 ) $ 322,822 $ ( 2,800,008 ) $ 902,056 Denominator: Weighted average common shares outstanding - basic 20,397,741 19,940,902 20,325,029 19,416,832 Effect of dilutive securities - 1,239,588 - 930,085 Weighted average common shares outstanding - diluted 20,397,741 21,180,490 20,325,029 20,346,917 Net (loss) income per share: Basic $ ( 0.12 ) $ 0.02 $ ( 0.14 ) $ 0.05 Diluted $ ( 0.12 ) $ 0.02 $ ( 0.14 ) $ 0.04

Revenue, Segment and Geograph_2

Revenue, Segment and Geographic Information (Tables)	6 Months Ended
Revenue, Segment and Geographic Information (Tables)	Jun. 30, 2023
Segment Reporting [Abstract]
Schedule of (Loss) Income from Operations by Reporting Segments	Segment details for the three and six month periods ended June 30, 2023 and 2022, were as follows: For the Three Months Ended June 30, 2023 For the Three Months Ended June 30, 2022 OSS Classic OSS Europe Total OSS Classic OSS Europe Total Revenues $ 8,278,096 $ 8,933,436 $ 17,211,532 $ 10,715,361 $ 7,587,982 $ 18,303,343 Cost of revenues ( 5,863,974 ) ( 6,549,620 ) ( 12,413,594 ) ( 7,180,343 ) ( 5,922,682 ) ( 13,103,025 ) Gross profit 2,414,122 2,383,816 4,797,938 3,535,018 1,665,300 5,200,318 Gross margin % 29.2 % 26.7 % 27.9 % 33.0 % 21.9 % 28.4 % Total operating expenses ( 7,238,984 ) ( 972,511 ) ( 8,211,495 ) ( 3,876,028 ) ( 922,367 ) ( 4,798,395 ) (Loss) income from operations $ ( 4,824,862 ) $ 1,411,305 $ ( 3,413,557 ) $ ( 341,010 ) $ 742,933 $ 401,923 For the Six Months Ended June 30, 2023 For the Six Months Ended June 30, 2022 OSS Classic OSS Europe Total OSS Classic OSS Europe Total Revenues $ 16,908,682 $ 17,084,744 $ 33,993,426 $ 21,297,403 $ 14,058,617 $ 35,356,020 Cost of revenues ( 11,365,683 ) ( 12,759,043 ) ( 24,124,726 ) ( 13,982,054 ) ( 11,032,993 ) ( 25,015,047 ) Gross profit 5,542,999 4,325,701 9,868,700 7,315,349 3,025,624 10,340,973 Gross profit % 32.8 % 25.3 % 29.0 % 34.3 % 21.5 % 29.2 % Total operating expenses ( 11,477,078 ) ( 2,001,527 ) ( 13,478,605 ) ( 7,504,643 ) ( 1,784,275 ) ( 9,288,918 ) (Loss) income from operations $ ( 5,934,079 ) $ 2,324,174 $ ( 3,609,905 ) $ ( 189,294 ) $ 1,241,349 $ 1,052,055

The Company and Basis of Pres_2

The Company and Basis of Presentation - Additional Information (Details)	Oct. 31, 2018
OSS Europe
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Percentage of shares acquired	100%

Significant Accounting Polici_3

Significant Accounting Policies - Additional Information (Details) - USD ($)	3 Months Ended	6 Months Ended	9 Months Ended	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Sep. 30, 2021	Dec. 31, 2020
Significant Accounting Policies [Line Items]
Employee retention credit maximum percentage of eligible wages			70%	50%
Employee retention credit annual wages			$ 7,000	$ 5,000
Maximum program credit per employee		$ 26,000
Employee retention credit recieved		1,516,034
Employee retention credit commission paid		217,793
Employee retention credit (ERC)		(1,298,241)
Impairment loss to goodwill	$ 2,700,000	2,700,000
Other Income
Significant Accounting Policies [Line Items]
Employee retention credit (ERC)		$ 1,298,241
ASU 2016-13
Significant Accounting Policies [Line Items]
Change in accounting principle, ASU, adopted	true	true

Short-Term Investments - Summar

Short-Term Investments - Summary of Short-Term Investments by Significant Investment Category (Details) - Level 1 - USD ($)	Jun. 30, 2023		Dec. 31, 2022
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	$ 9,238,355	[1]	$ 10,090,467	[2]
Gross Unrealized Gains	25,066	[1]	22,646	[2]
Gross Unrealized Losses	$ (9,244)	[1]	$ (7,691)	[2]
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Current, Statement of Financial Position [Extensible Enumeration]	Short-term investments (Note 3)		Short-term investments (Note 3)
Accrued Interest	$ 67,279	[1]	$ 18,113	[2]
Estimated Fair Value	9,321,456	[1]	10,123,535	[2]
Cash Alternatives
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	2,431,672	[1]	5,139,940	[2]
Gross Unrealized Gains	25,066	[1]	22,646	[2]
Accrued Interest	3,268	[1]	3,506	[2]
Estimated Fair Value	2,460,006	[1]	5,166,092	[2]
Certificates of Deposit
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	6,806,683	[1]	4,950,527	[2]
Gross Unrealized Losses	(9,244)	[1]	(7,691)	[2]
Accrued Interest	64,011	[1]	14,607	[2]
Estimated Fair Value	$ 6,861,450	[1]	$ 4,957,443	[2]

[1] Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities. Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities.

Short-Term Investments - Additi

Short-Term Investments - Additional Information (Details)	6 Months Ended
Short-Term Investments - Additional Information (Details)	Jun. 30, 2023 Issuer
Maximum
Schedule Of Available For Sale Securities [Line Items]
Number of issuer, investment policy limits the amount of credit exposure	1

Accounts Receivable - Schedule

Accounts Receivable - Schedule of Accounts Receivable, Net (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Accounts Receivable Net Current [Abstract]
Accounts receivable	$ 9,310,063	$ 11,372,598
Less: allowance for doubtful accounts	(84,717)	(45,354)
Accounts receivable, total	$ 9,225,346	$ 11,327,244

Accounts Receivable - Additiona

Accounts Receivable - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Accounts Receivable Net Current [Abstract]
Provision (recovery) for bad debt expense	$ 8,653	$ (5,524)	$ 38,653	$ (5,524)

Inventories - Summary of Invent

Inventories - Summary of Inventories, Net (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 10,944,553	$ 9,370,162
Sub-assemblies	849,968	892,123
Work-in-process	700,935	1,343,239
Finished goods	10,379,886	10,357,452
Inventory gross	22,875,342	21,962,976
Less: allowances for obsolete and slow-moving inventories	(1,411,417)	(1,187,610)
Inventory net	$ 21,463,925	$ 20,775,366

Long-Lived Intangible Assets -

Long-Lived Intangible Assets - Schedule of Definite Lived Intangible Assets (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Finite Lived Intangible Assets [Line Items]
Definite lived intangible assets, Gross	$ 3,538,793	$ 3,538,793
Definite lived intangible assets, Accumulated Amortization	(3,528,255)	(3,496,639)
Definite lived intangible assets, Net	$ 10,538	$ 42,154
Customer Lists and Relationships
Finite Lived Intangible Assets [Line Items]
Definite lived intangible assets, Remaining Months	2 months	8 months
Definite lived intangible assets, Gross	$ 2,084,515	$ 2,084,515
Definite lived intangible assets, Accumulated Amortization	(2,073,977)	(2,042,361)
Definite lived intangible assets, Net	$ 10,538	$ 42,154
Customer Lists and Relationships \| Minimum
Finite Lived Intangible Assets [Line Items]
Definite lived intangible assets, Expected Life	36 months	36 months
Customer Lists and Relationships \| Maximum
Finite Lived Intangible Assets [Line Items]
Definite lived intangible assets, Expected Life	60 months	60 months
Drawings and Technology
Finite Lived Intangible Assets [Line Items]
Definite lived intangible assets, Expected Life	36 months	36 months
Definite lived intangible assets, Remaining Months	0 months	0 months
Definite lived intangible assets, Gross	$ 760,207	$ 760,207
Definite lived intangible assets, Accumulated Amortization	$ (760,207)	$ (760,207)
Trade name, Trademarks & other
Finite Lived Intangible Assets [Line Items]
Definite lived intangible assets, Remaining Months	0 months	0 months
Definite lived intangible assets, Gross	$ 447,274	$ 447,274
Definite lived intangible assets, Accumulated Amortization	$ (447,274)	$ (447,274)
Trade name, Trademarks & other \| Minimum
Finite Lived Intangible Assets [Line Items]
Definite lived intangible assets, Expected Life	24 months	24 months
Trade name, Trademarks & other \| Maximum
Finite Lived Intangible Assets [Line Items]
Definite lived intangible assets, Expected Life	36 months	36 months
Non-Compete
Finite Lived Intangible Assets [Line Items]
Definite lived intangible assets, Expected Life	36 months	36 months
Definite lived intangible assets, Remaining Months	0 months	0 months
Definite lived intangible assets, Gross	$ 246,797	$ 246,797
Definite lived intangible assets, Accumulated Amortization	$ (246,797)	$ (246,797)

Long-Lived Intangible Assets _2

Long-Lived Intangible Assets - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense	$ 15,808	$ 15,807	$ 31,616	$ 31,616

Accrued Expenses and Other Li_3

Accrued Expenses and Other Liabilities - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Accrued Liabilities And Other Liabilities [Abstract]
Accrued compensation and related liabilities	$ 1,383,311	$ 989,478
Deferred revenue	286,955	378,952
Customer deposits	270,025	61,696
Warranty reserve	582,636	584,268
Trade and other taxes	1,148,261	225,743
Other accrued expenses	1,316,507	773,732
Accrued expenses and other liabilities	$ 4,987,695	$ 3,013,869

Debt - Additional Information (

Debt - Additional Information (Details)									3 Months Ended		6 Months Ended
Debt - Additional Information (Details)	Dec. 19, 2022	Jun. 30, 2022 USD ($)	Jun. 07, 2022	Jun. 18, 2021 EUR (€)	Apr. 09, 2021 EUR (€)	Jul. 01, 2020	Apr. 24, 2020 USD ($)	Apr. 20, 2020 USD ($) $ / shares	Jun. 30, 2023 USD ($) TermLoan LineofCredit $ / shares	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) TermLoan LineofCredit $ / shares	Jun. 30, 2022 USD ($)	Jun. 30, 2023 EUR (€) TermLoan LineofCredit	Jun. 19, 2023	Mar. 30, 2023	Feb. 16, 2023	Feb. 01, 2023	Dec. 31, 2022 USD ($) $ / shares	Dec. 31, 2022 EUR (€)	Jun. 30, 2022 EUR (€)	Apr. 30, 2022 USD ($)	Feb. 16, 2022 EUR (€)	Feb. 01, 2022 EUR (€)
Debt Instrument [Line Items]
Debt discount amortization												$ 1,224
Proceeds from loan												3,663,009
Common stock, par value \| $ / shares									$ 0.0001		$ 0.0001							$ 0.0001
Senior Secured Convertible Promissory Notes \| Securities Purchase Agreement
Debt Instrument [Line Items]
Aggregate balance outstanding		$ 0							$ 0	$ 0	$ 0	0
Debt instrument, interest rate							0%
Debt instrument, maturity date								Apr. 01, 2022
Non-interest bearing convertible note							$ 3,000,000	$ 6,000,000
Common stock, par value \| $ / shares								$ 0.0001
Debt instrument, initial conversion price per share \| $ / shares								$ 2.50
Remaining balance of convertible notes									2,590,909		$ 2,590,909
Original issue discount rate								10%
Debt instrument, aggregate purchase price								$ 2,700,000
Monthly amortization payments percentage of initial principal						4.545%
Debt instrument, redemption price percentage						105%					110%
Debt discount amortization									0	0	$ 0	1,161
Original issue discount rate								$ 316,274
Debt issuance costs amortized									$ 0	0	$ 0	1,223
OSS Europe
Debt Instrument [Line Items]
Number of term loans outstanding \| TermLoan									5		5		5
Debt instrument, modified interest rate														5.80%
Debt instrument, face amount \| €				€ 500,000	€ 500,000																	€ 500,000	€ 500,000
Commerzbank AG
Debt Instrument [Line Items]
Aggregate balance outstanding									$ 829,393		$ 829,393		€ 759,673					$ 1,215,279	€ 1,132,356
Debt instrument, face amount		$ 1,468,173								$ 1,468,173		$ 1,468,173								€ 1,500,000
Debt installment term		24 months
Debt installments payment beginning date		Jul. 31, 2022
Term Loans \| OSS Europe
Debt Instrument [Line Items]
Aggregate balance outstanding									$ 3,012,945		$ 3,012,945		€ 2,759,673
Debt instrument, maturity date				Dec. 17, 2021	Sep. 30, 2021
Debt instrument, extended maturity date	Jun. 19, 2023		Dec. 19, 2022	Jun. 17, 2022
Debt instrument, modified interest rate															4.60%	4.70%	4.76%
Term Loans \| Commerzbank AG
Debt Instrument [Line Items]
Debt instrument, interest rate		2.55%								2.55%		2.55%								2.55%
German Institutions \| Revolving Credit Facility \| Bressner Technology GmbH
Debt Instrument [Line Items]
Number of lines of credit \| LineofCredit									3		3		3
Total outstanding balance									$ 0		$ 0							0
German Institutions \| Revolving Credit Facility \| Bressner Technology GmbH \| Minimum
Debt Instrument [Line Items]
Line of credit current rate											3.10%
German Institutions \| Revolving Credit Facility \| Bressner Technology GmbH \| Maximum
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity									2,401,907		$ 2,401,907		€ 2,200,000
Line of credit current rate											5.62%
Torrey Pines Bank
Debt Instrument [Line Items]
Total outstanding balance									0		$ 0							0
Torrey Pines Bank \| Revolving Credit Facility \| Minimum
Debt Instrument [Line Items]
Cash and investments balances maintained									4,000,000		4,000,000
Torrey Pines Bank \| Revolving Credit Facility \| Maximum
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity																					$ 2,000,000
Line of Credit from UniCredit Bank \| Term Loans
Debt Instrument [Line Items]
Aggregate balance outstanding									545,888		545,888		500,000					536,616	500,000
Line of Credit from UniCredit Bank \| Term Loans \| OSS Europe
Debt Instrument [Line Items]
Aggregate balance outstanding									545,888		545,888		500,000					536,616	500,000
Line Of Credit From V R Bank \| Term Loans \| OSS Europe
Debt Instrument [Line Items]
Aggregate balance outstanding									545,888		545,888		500,000					536,616	500,000
Line of Credit from Commerzbank AG \| Term Loans \| OSS Europe
Debt Instrument [Line Items]
Aggregate balance outstanding									$ 545,888		$ 545,888		€ 500,000					$ 536,616	€ 500,000

Debt - Summary of Outstanding D

Debt - Summary of Outstanding Debt Obligations (Details)	6 Months Ended
Debt - Summary of Outstanding Debt Obligations (Details)	Jun. 30, 2023 USD ($)	Jun. 30, 2023 EUR (€)	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
Current Portion	$ 3,012,945
Long-term debt, net of current portion (Note 8)			$ 409,294
Foreign
Debt Instrument [Line Items]
Balance	3,012,945	€ 2,759,673
Current Portion	$ 3,012,945
Foreign \| VR Bank \| Note Payable Maturing on July 31, 2023
Debt Instrument [Line Items]
Current Interest Rate	4.76%	4.76%
Maturity Date	Jul. 31, 2023
Balance	$ 545,888	€ 500,000
Current Portion	$ 545,888
Foreign \| Uni Credit Bank AG \| Note Payable Maturing on August 31, 2023
Debt Instrument [Line Items]
Current Interest Rate	4.70%	4.70%
Maturity Date	Aug. 31, 2023
Balance	$ 545,888	€ 500,000
Current Portion	$ 545,888
Foreign \| Uni Credit Bank AG \| Note Payable Maturing on December 31, 2023
Debt Instrument [Line Items]
Current Interest Rate	5.80%	5.80%
Maturity Date	Dec. 31, 2023
Balance	$ 545,888	€ 500,000
Current Portion	$ 545,888
Foreign \| Commerzbank AG \| Note Payable Maturing on September 30, 2023
Debt Instrument [Line Items]
Current Interest Rate	4.60%	4.60%
Maturity Date	Sep. 30, 2023
Balance	$ 545,888	€ 500,000
Current Portion	$ 545,888
Foreign \| Commerzbank AG \| Note Payable Maturing on June 30, 2024
Debt Instrument [Line Items]
Current Interest Rate	2.55%	2.55%
Maturity Date	Jun. 30, 2024
Balance	$ 829,393	€ 759,673
Current Portion	$ 829,393

Debt - Schedule of Total Future

Debt - Schedule of Total Future Principal Payments under Notes Payable (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
2024	$ 3,012,945
Total minimum payments	3,012,945
Current portion of notes payable	(3,012,945)
Notes payable, net of current portion		$ 409,294
Foreign
Debt Instrument [Line Items]
2024	3,012,945
Total minimum payments	3,012,945
Current portion of notes payable	$ (3,012,945)

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - USD ($)			3 Months Ended	6 Months Ended
	Jun. 05, 2023	Jun. 24, 2020	Jun. 30, 2023	Jun. 30, 2023	Mar. 16, 2023	Mar. 15, 2023	Dec. 31, 2022	May 19, 2021	May 18, 2021	Jun. 23, 2020	Dec. 18, 2017
Class Of Stock [Line Items]
Preferred stock, shares authorized			10,000,000	10,000,000
Common stock, shares authorized			50,000,000	50,000,000			50,000,000
Unvested common stock options, net of estimated forfeitures			$ 782,295	$ 782,295
Unearned stock-based compensation expected to be recognized				2 years 3 months 7 days
Restricted Stock Units
Class Of Stock [Line Items]
Number of Shares Underlying, Granted				889,528
Unvested RSUs being forfeited				97,798
Inducement options and grants, shares				889,528
Weighted average exercise price				$ 2.80
Unvested common stock options, net of estimated forfeitures			$ 4,177,442	$ 4,177,442
Unearned stock-based compensation expected to be recognized				1 year 8 months 23 days
Mike Knowles \| Restricted Stock Units
Class Of Stock [Line Items]
Vesting percentage		33.33%
David Raun \| Restricted Stock Units
Class Of Stock [Line Items]
RSUs that received accelerated vesting	150,556
Unvested RSUs being forfeited	52,132
2017 Plan
Class Of Stock [Line Items]
Number of shares granted			0	0
2017 Equity Incentive Plan \| Restricted Stock Units \| Minimum
Class Of Stock [Line Items]
Vesting period				1 year
2017 Equity Incentive Plan \| Restricted Stock Units \| Maximum
Class Of Stock [Line Items]
Vesting period				4 years
2017 Equity Incentive Plan Amendments \| Common Stock
Class Of Stock [Line Items]
Common stock, reserved for future issuance											1,500,000
Shares authorized for issuance								3,000,000	1,500,000
Amendment to 2017 Equity Incentive Plan \| Common Stock
Class Of Stock [Line Items]
Shares authorized for issuance		1,000,000			4,500,000	3,000,000				500,000
Inducement Options \| Mike Knowles
Class Of Stock [Line Items]
Number of Shares Underlying, Granted	400,000
Exercise price	2.95%
Inducement options and grants, shares	400,000
Inducement Grants \| Mike Knowles \| Restricted Stock Units
Class Of Stock [Line Items]
Number of Shares Underlying, Granted	400,000
Inducement options and grants, shares	400,000
Inducement Options and Inducement Grants \| Mike Knowles \| One-Year Anniversary of Date of Grant
Class Of Stock [Line Items]
Vesting percentage	25%
Inducement Options and Inducement Grants \| Mike Knowles \| Six Months after One-Year Anniversary of Date of Grant
Class Of Stock [Line Items]
Vesting percentage	75%

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Stock Option Activity (Details) - Stock Options	6 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Underlying Shares, Outstanding beginning balance \| shares	970,680
Number of Underlying Shares, Granted \| shares	400,000
Number of Underlying Shares, Forfeited / Canceled \| shares	(1,250)
Number of Underlying Shares, Exercised \| shares	(20,935)
Number of Shares Underlying, Outstanding ending balance \| shares	1,348,495	970,680
Number of Shares Underlying, Exercisable ending balance \| shares	948,495
Number of Shares Underlying, Vested and expected to vest ending balance \| shares	948,495
Weighted Average Exercise Price, Outstanding beginning balance \| $ / shares	$ 2.07
Weighted Average Exercise Price, Granted \| $ / shares	2.95
Weighted Average Exercise Price, Forfeited / Cancelled \| $ / shares	2.10
Weighted Average Exercise Price, Exercised \| $ / shares	0.61
Weighted Average Exercise Price, Outstanding ending balance \| $ / shares	2.35	$ 2.07
Weighted Average Exercise Price, Exercisable ending balance \| $ / shares	2.10
Weighted Average Exercise Price, Vested and expected to vest ending balance \| $ / shares	$ 2.10
Weighted Average Remaining Contractual Life (in years), Outstanding balance	2 years 2 months 26 days	5 years 7 months 9 days
Weighted Average Remaining Contractual Life (in years), Granted	9 years 11 months 8 days
Weighted Average Remaining Contractual Life (in years), Exercisable balance	2 years 2 months 26 days
Weighted Average Remaining Contractual Life (in years), Vested and expected to vest balance	2 years 2 months 26 days
Aggregate Intrinsic Value, Outstanding balance \| $	$ 816,567	$ 864,762
Aggregate Intrinsic Value, Forfeited / Cancelled balance \| $	962
Aggregate Intrinsic Value, Exercised balance \| $	47,233
Aggregate Intrinsic Value, Exercisable balance \| $	816,567
Aggregate Intrinsic Value, Vested and expected to vest balance \| $	$ 816,567

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Assumption to Calculate Weighted Average Grant Date Fair Value of Options Grant (Details) - Common Stock - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Class Of Stock [Line Items]
Expected term (in years)	6 years 1 month 28 days
Expected volatility	72.73%	0%
Risk-free interest rate	3.79%	0%
Weighted average grant date fair value per share	$ 2.95
Grant date fair value of options vested	$ 933,399	$ 2,005,285
Intrinsic value of options exercised	$ 47,233	$ 119,927

Stockholders' Equity - Summar_2

Stockholders' Equity - Summary of RSU Activity (Details) - Restricted Stock Units	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares Underlying, Outstanding beginning balance \| shares	907,507
Number of Shares Underlying, Granted \| shares	889,528
Number of shares Underlying, Vested \| shares	(512,805)
Number of Shares Underlying, Canceled \| shares	(97,798)
Number of Shares Underlying, Outstanding ending balance \| shares	1,186,432
Weighted Average Grant Date Fair Value, Outstanding beginning balance \| $ / shares	$ 4.04
Weighted Average Grant Date Fair Value, Granted \| $ / shares	2.80
Weighted Average Grant Date Fair Value, Vested \| $ / shares	3.79
Weighted Average Grant Date Fair Value, Canceled \| $ / shares	4.32
Weighted Average Grant Date Fair Value / Exercise Price, Outstanding ending balance \| $ / shares	$ 3.19

Stockholders' Equity - Summar_3

Stockholders' Equity - Summary of Stock-Based Compensation Expense (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 898,009	$ 532,636	$ 1,372,217	$ 915,464
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	651,291	300,346	945,286	502,441
Production
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	86,528	70,959	153,969	126,415
Marketing and Selling
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	86,516	104,364	146,504	186,544
Research and Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 73,674	$ 56,967	$ 126,458	$ 100,064

Stockholders' Equity - Schedu_2

Stockholders' Equity - Schedule of Warrant Activity (Details) - Warrants - $ / shares	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Jun. 30, 2023
Class Of Stock [Line Items]
Number of Shares, Beginning Warrants outstanding	451,112	451,112
Number of Shares, Warrants expired	(380,000)
Number of Shares, Warrants exercised		(28,090)
Number of Shares, Ending Warrants outstanding		43,022
Weighted Average Grant Date Fair Value, Outstanding beginning balance	$ 5.37	$ 5.37
Weighted Average Exercise Price, Warrant expired		6
Weighted Average Exercise Price, Warrant exercised		1.78
Weighted Average Grant Date Fair Value / Exercise Price, Outstanding ending balance		$ 2.15

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023 ft² Customer	Jun. 30, 2022 Customer	Jun. 30, 2023 USD ($) ft² Customer	Jun. 30, 2022 Customer	Dec. 31, 2022 Customer
Operating Leased Assets [Line Items]
Weighted average remaining lease term for operating leases	16 months 6 days	25 years 9 months 18 days	16 months 6 days	25 years 9 months 18 days
Weighted average discount rate for operating leases	12.10%	12.80%	12.10%	12.80%
Purchase commitments description			In the normal course of business, the Company may enter into purchase commitments for inventory components to be delivered based upon non-cancellable, pre-established, delivery schedules that are over a period that may exceed one year.
Non-cancellable purchase commitments \| $			$ 10,762,867
Number of customer's more than10% of revenue \| Customer	2	1	2	1
Number of customers more than 10% of net trade accounts receivable \| Customer	2		2		2
Revenue \| Customer Concentration Risk \| Significant Customers
Operating Leased Assets [Line Items]
Customers accounted for 10% or more of quarterly revenues	29%	35%	33%	31%
Trade Accounts Receivable \| Customer Concentration Risk \| Significant Customers
Operating Leased Assets [Line Items]
Customers accounted for 10% or more of quarterly revenues			29%		47%
Net Purchases \| Customer Concentration Risk \| Significant Customers
Operating Leased Assets [Line Items]
Customers accounted for 10% or more of quarterly revenues	36%	23%	32%	32%
Offices, Manufacturing and Warehouse Facility \| Bressner Technology GmbH
Operating Leased Assets [Line Items]
Operating lease, area	11,836		11,836
Offices, Manufacturing and Warehouse Facility \| Escondido, California
Operating Leased Assets [Line Items]
Operating lease, area	29,342		29,342
Operating lease modified date			2019-02
Operating lease, expiration date			Aug. 31, 2024
Offices, Manufacturing and Warehouse Facility \| Salt Lake City, Utah
Operating Leased Assets [Line Items]
Operating lease, area	3,208		3,208
Operating lease, expiration date			Jun. 30, 2023
Offices, Manufacturing and Warehouse Facility \| Irvine, California
Operating Leased Assets [Line Items]
Operating lease, area	1,632		1,632
Operating lease, expiration date			Jun. 30, 2023

Commitments and Contingencies_2

Commitments and Contingencies - Schedule of Other information Related to Leases (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Leases [Abstract]
Operating lease cost	$ 196,538	$ 165,785	$ 334,107	$ 326,695
Total lease cost	196,538	165,785	334,107	326,695
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows from operating leases	$ 81,843	$ 165,785	$ 243,185	326,695
Right-of-use assets obtained in exchange for new operating lease liabilities				$ 1,203,580
Weighted-average remaining lease term - operating leases	16 months 6 days	25 years 9 months 18 days	16 months 6 days	25 years 9 months 18 days
Weighted-average discount rate - operating leases	12.10%	12.80%	12.10%	12.80%

Commitments and Contingencies_3

Commitments and Contingencies - Summary of Maturity of Operating Lease Liabilities (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Operating Lease Liabilities Payments Due [Abstract]
Remainder of 2023	$ 306,030
2024	446,361
2025	21,061
2026	2,408
Total lease payments	775,860
Less: Amount representing interest	(43,355)
Present value of lease payment	732,505
Less: current portion of operating lease obligation	(583,675)	$ (536,588)
Operating lease obligation, net of current portion	$ 148,830	$ 397,249

Net (Loss) Income Per Share - S

Net (Loss) Income Per Share - Summary of Basic and Diluted Net (Loss) Income Per Share (Details) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerator:
Net (loss) income	$ (2,399,496)	$ (400,512)	$ 322,822	$ 579,234	$ (2,800,008)	$ 902,056
Denominator:
Weighted average common shares outstanding - basic	20,397,741		19,940,902		20,325,029	19,416,832
Effect of dilutive securities			1,239,588			930,085
Weighted average common shares outstanding - diluted	20,397,741		21,180,490		20,325,029	20,346,917
Net (loss) income per share:
Basic	$ (0.12)		$ 0.02		$ (0.14)	$ 0.05
Diluted	$ (0.12)		$ 0.02		$ (0.14)	$ 0.04

Revenue, Segment and Geograph_3

Revenue, Segment and Geographic Information - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Germany
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Exception of Long-Lived Assets	$ 247,781		$ 247,781
Revenue \| Customer Concentration Risk \| Non-U.S.
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Concentration risk, percentage	75%	78%	67%	74%

Revenue, Segment and Geograph_4

Revenue, Segment and Geographic Information - Schedule of (Loss) Income from Operations by Reporting Segments (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Revenue	$ 17,211,532	$ 18,303,343	$ 33,993,426	$ 35,356,020
Cost of revenues	(12,413,594)	(13,103,025)	(24,124,726)	(25,015,047)
Gross profit	$ 4,797,938	$ 5,200,318	$ 9,868,700	$ 10,340,973
Gross margin %	27.90%	28.40%	29%	29.20%
Total operating expenses	$ (8,211,495)	$ (4,798,395)	$ (13,478,605)	$ (9,288,918)
(Loss) income from operations	(3,413,557)	401,923	(3,609,905)	1,052,055
OSS Classic
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Revenue	8,278,096	10,715,361	16,908,682	21,297,403
Cost of revenues	(5,863,974)	(7,180,343)	(11,365,683)	(13,982,054)
Gross profit	$ 2,414,122	$ 3,535,018	$ 5,542,999	$ 7,315,349
Gross margin %	29.20%	33%	32.80%	34.30%
Total operating expenses	$ (7,238,984)	$ (3,876,028)	$ (11,477,078)	$ (7,504,643)
(Loss) income from operations	(4,824,862)	(341,010)	(5,934,079)	(189,294)
OSS Europe
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Revenue	8,933,436	7,587,982	17,084,744	14,058,617
Cost of revenues	(6,549,620)	(5,922,682)	(12,759,043)	(11,032,993)
Gross profit	$ 2,383,816	$ 1,665,300	$ 4,325,701	$ 3,025,624
Gross margin %	26.70%	21.90%	25.30%	21.50%
Total operating expenses	$ (972,511)	$ (922,367)	$ (2,001,527)	$ (1,784,275)
(Loss) income from operations	$ 1,411,305	$ 742,933	$ 2,324,174	$ 1,241,349

Subsequent Events - Additional

Subsequent Events - Additional Information (Details)		1 Months Ended		6 Months Ended
Subsequent Events - Additional Information (Details)	Jul. 17, 2023 USD ($) shares	Jul. 31, 2023 USD ($)	Jul. 31, 2023 EUR (€)	Jun. 30, 2023 USD ($) shares
Subsequent Event [Line Items]
Employee retention credit net of commission paid				$ 217,793
Restricted Stock Units
Subsequent Event [Line Items]
Inducement options and grants, shares \| shares				889,528
Award vesting, description				The RSUs vest over a three year period as follows: 33 1/3% will vest on the one-year anniversary of the date of the grant, and the remaining 66 2/3% will vest in four equal installments, commencing six months after the one-year anniversary of the date of grant and every six months thereafter until fully vested, subject to continued employment by the Company.
Subsequent Event
Subsequent Event [Line Items]
Employee retention credit net of commission paid	$ 418,430
Subsequent Event \| OSS Europe
Subsequent Event [Line Items]
Repayment of notes payable		$ 550,947	€ 500,000
Subsequent Event \| Restricted Stock Units
Subsequent Event [Line Items]
Inducement options and grants, shares \| shares	35,715
Inducement grant, amount	$ 100,000
Vesting period	3 years