Exhibit 99.1

FOR IMMEDIATE RELEASE

Bsquare Announces Second Quarter 2023 Financial Results

Stable operating results; Exploring strategic options

Seattle, WA – August 10, 2023 – Bsquare Corporation (NASDAQ: BSQR) today announced financial results for the second quarter of 2023. Total revenue was $6.5 million, a decrease of $1.6 million or 20% compared to the first quarter of 2023. Gross profit increased by $0.1 million from the previous quarter and operating expenses increased by $0.3 million. Loss from operations was $0.7 million, a $0.3 million decline from the first quarter operating loss. Cash, cash equivalents, restricted cash and short-term investments totaled $33.4 million as of June 30, 2023.

On a year-to-date basis, loss from operations was $1.1 million, an improvement of $0.5 million compared to the same period in 2022. Year-to-date net loss was $0.3 million compared to a net loss of $1.5 million in 2022.

Bsquare Corporation also announced today that they have been working with Telegraph Hill Advisors, an investment bank that specializes in IoT, to explore strategic options.

“With Telegraph Hill’s assistance, we initiated a process to explore strategic options for creating shareholder value,” said Ralph C. Derrickson, Bsquare President and CEO. “While the process is running we will continue to operate the company as efficiently as possible and seek opportunities to demonstrate the potential of SquareOne as the basis for a high-margin SaaS business,” added Derrickson.

Second Quarter 2023 Results Compared to First Quarter 2023

Details as follows (unaudited, in thousands except percentages and per share amounts):

Notes:

Second Quarter 2023 Results Compared to Second Quarter 2022

Conference Call

Management will host a conference call Thursday, August 10, 2023 at 5 p.m. Eastern Time (2 p.m. Pacific Time). To access the call dial 1-844-825-9789 or 1-412-317-5180 for international callers, and reference "Bsquare Corporation Second Quarter 2023 Earnings Conference Call."

A replay will be available for two weeks following the call by dialing 1-844-512-2921, or 1-412-317-6671 for international callers; reference pin number 10180813. A live and replay webcast of the call will be available at www.bsquare.com in the investor relations section.

About Bsquare Corporation

Bsquare helps companies build connected products that participate intelligently in their own security, deployment, operation, and management, allowing our customers to realize the full potential of a connected world. We have extensive experience designing with Windows, Linux, Android, and other embedded operating systems and now operate IoT networks ranging in size from 50,000 to more than 1 million devices for our customers. Our technology is powering devices that help people be productive, enhance quality of life, and preserve the resources of our planet. Bsquare serves a global customer base from offices in Seattle, WA, and the United Kingdom. For more information, visit www.bsquare.com.

About Telegraph Hill Advisors

Telegraph Hill Advisors is a leading technology-focused boutique investment bank that provides strategic M&A and capital markets advice to growth-oriented technology companies. They build value for clients through their substantial domain knowledge, extensive industry relationships and strong ties within the technology investment community. Focus sectors include: enterprise software, AI/ML, communications technology, IoT, digital media and marketing technology. Telegraph Hill is headquartered in San Francisco and serves clients throughout the Americas, EMEA and Asia-Pacific regions. For further information, please visit www.telehilladvisors.com or contact: Phillip B. Courten, Managing Director at phillip@telehilladvisors.com.

Cautionary Note Regarding Forward-Looking Statements

This release contains "forward-looking statements" within the meaning of the safe-harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "expect," "continue," "believe," "plan," "strategy," "future," "may," "should," "will," and similar references to future periods. Examples of forward-looking statements include, among others, the ability to identify or advance strategic options, express or implied statements we make regarding the stability of our business, expected improvements to our IoT and software offerings, expected operating results in future periods, such as anticipated revenue, gross margins, profitability, cash and investments, and regarding strategies for customer retention, growth, new product and service developments, and market position. Forward-looking statements are neither historical facts nor assurances about future performance. Instead, they are based on current beliefs, expectations and assumptions about the future of our business and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.

Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others: our ability to execute our development initiatives and sales and marketing strategies; the extent to which we are successful in gaining new long-term customers and retaining existing ones; whether we are able to maintain our favorable relationship with Microsoft as a systems integrator and distributor; our success in leveraging strategic partnering initiatives with companies such as Microsoft, AWS and Intel; the ongoing impact of COVID-19 on our business and on our customers and vendors; and such other risk factors as discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by law, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. 

Bsquare and the Bsquare Logo are trademarks of Bsquare Corporation in the U.S. and other countries. Other names and brands herein may be trademarks of others.

BSQUARE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)

(Unaudited)

BSQUARE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)