Why did OSS's revenue costs surge in Q3 2024?

One Stop Systems (OSS) experienced a surge in revenue costs in Q3 2024, with the cost of goods sold (COGS) reaching $13.7 million and total revenue at $15.42 million. This surge in revenue costs can be attributed to several key factors:

1. **Bressner Technology GmbH**: OSS's revenue was significantly influenced by Bressner Technology GmbH, with $30.14 million in revenue from this business segment. This indicates that the company's revenue is heavily dependent on its partnership with Bressner.
2. **New Product Announcements**: OSS has a strong pipeline of over $1 billion, with new product announcements expected in the latter half of 2024 and early 2025. These new product developments likely led to increased costs associated with research and development, manufacturing, and marketing.
3. **Strategic Expansion**: OSS is actively pursuing customer-funded development programs, which is expected to drive growth in the future. These programs often require significant upfront investments, which can increase revenue costs in the short term.
4. **Defense Sector Opportunities**: OSS is eyeing the defense sector and has partnered with the U.S. Special Operations Command to develop rugged edge AI/ML compute solutions. These strategic moves are likely to open up new revenue streams but may also come with increased costs due to the specialized nature of the products and the stringent requirements of the defense market.

In conclusion, OSS's revenue costs surge in Q3 2024 due to the influence of Bressner Technology GmbH, new product announcements, strategic expansion, and opportunities in the defense sector. These factors combined create a complex interplay that drives the company's revenue costs upward.