SCHEDULE 13D/A: Horton Capital Partners Reduces Stake in One Stop Systems Below 5%

Horton Capital Partners and affiliated entities have significantly reduced their beneficial ownership in One Stop Systems, Inc., falling below the 5% threshold as of May 30, 2025, following a series of share sales.

Summary

• Horton Capital Partners Fund, LP (HCPF), Horton Capital Partners, LLC (HCP), Horton Capital Management, LLC (HCM), and Joseph M. Manko, Jr. are the reporting persons.
• As of June 6, 2025, HCPF, HCP, and HCM beneficially owned 917,343 shares, representing approximately 4.2% of One Stop Systems, Inc.'s common stock.
• Joseph M. Manko, Jr. beneficially owned an aggregate of 938,343 shares, or approximately 4.3% of the common stock, including 21,000 shares directly owned and 917,343 shares shared through the Horton Capital entities.
• The aggregate percentage of shares owned is based on 21,589,229 shares outstanding as of May 2, 2025, as reported in the Issuer's Form 10-Q filed on May 7, 2025.
• The shares purchased by HCPF were acquired with working capital, including potential margin loans, at an aggregate purchase price of approximately $2,040,052 for 917,343 shares.
• Mr. Manko's directly owned 21,000 shares were awarded to him in his former capacity as a director of the Issuer.
• The reporting persons ceased to be beneficial owners of more than 5% of the shares as of May 30, 2025.
• A series of common stock sales by Horton Capital Partners Fund, LP occurred between May 15, 2025, and June 6, 2025, ranging in price from $2.51 to $3.21 per share.
• Notable sales include 25,000 shares at $2.59 on May 21, 2025, and 85,000 shares at $3.16 on June 4, 2025.
• A small purchase of 900 shares at $3.24 was made on June 6, 2025, followed by a sale of 21,537 shares at $3.21 on the same day.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative as a significant institutional investor has reduced its stake below the 5% threshold, which can be interpreted as a lack of conviction or a strategic exit, potentially signaling a negative outlook for the company's stock.

Negatives

• A significant institutional investor, Horton Capital Partners, has reduced its stake in One Stop Systems, Inc. below the 5% beneficial ownership threshold, which can be perceived negatively by the market.
• The reduction in stake suggests a potential loss of confidence or a strategic reallocation of capital by the reporting persons.

Future Outlook

NA

Industry Context

NA

Stakeholder Impact

• Shareholders may view the reduction in stake by a notable institutional investor as a negative signal, potentially leading to decreased investor confidence and downward pressure on the stock price.
• The company's management might face questions regarding the reasons for the institutional investor's reduced interest.

Key Dates

Recommendation

Keywords

ONE STOP SYSTEMS, OSS, Schedule 13D, beneficial ownership, shareholding, institutional investor, Horton Capital Partners, share sale, stake reduction