We expect this inventory increase to be relieved in 2024. As the company continues to transition and have an evolving business from being largely dependent on media derived revenue, the company will operationally focus on maximizing gross profit contribution. In the near term, this may include accepting lower margin business that incrementally contribute to gross profits but may be inconsistent with our long-term objective of a decreasing consolidated gross margin percentage. The objective of this effort is to have sustainable cash flow as the company bridges our revenue model. Now looking forward to the fourth quarter of 2023, we expect revenue of approximately $13 million. We are witnessing some impact from the defense budget continuing resolution, manifesting late funding and awards on sole source opportunities.
We could experience further impacts going forward as the budget approval continues to be delayed. We also continue to see a commercial slowness or general malaise that has manifested in delays and/or reduced awards. We have not seen signs of overall improvement and do not know when we may be able to see those. This will complete our financial review for the quarter. I would now like to turn the call back over to Mike. Mike?
Mike Knowles: Thank you, John. Last quarter, we announced the departure of two OSS directors as well as the appointment of Vice Admiral Mike Dumont and myself to the Board of Directors. We also reconfirmed our commitment to continue the reprofiling of the Board to align with the strategic path and desired skill sets of directors. As noted in the 8-K and earnings release, Joe Manko, Managing Member and Senior Principal at Horton Capital Management has been selected and appointed to serve on the Board effective November 10, 2023. Mr. Manko has been serving as a managing member of senior principal Horton Capital Management an investment fund since 2013. His prior asset management and investment banking experience, having served in executive positions at BZ Fund Management, Deutsche Bank and Merrill Lynch and also legal experience having served as corporate finance attorney at Skadden, Arps, Slate, Meagher and Flom.
Mr. Manko also serves as a Director on the Board of Safeguard Scientific and Koru Medical Systems and has previously served as a Director on the Board of Creative Realities and Wireless Telecom Group. The One Stop Systems Board has dynamically voted to temporarily increase the size of the Board from 7 to 8 at this time and appoint Mr. Manko to fill the vacancy created by the increase. The Board intends to further temporarily increase the size of the Board to no more than 9 and add one additional Board Member with relevant defense experience during the Q4 time frame. There are candidates actively in review to fill this position. The director of Slate presented for election by the company’s shareholders at its 2024 Annual Shareholder Meeting in May, will be a 7-person slate.
This director of Slate will be chosen by the Board prior to filing the 2024 Annual Meeting proxy. We are adding the additional Board Members at this time to take advantage of the unique skills, expertise and fresh perspective that these individuals will bring. Aligned with our pursuit of greater defense revenues, which many times include classified programs, I’m pleased to announce that we recently received our site facility clearance. This is key to our strategy and now clears the way for us to address additional market opportunities in the classified space. In addition to all the opportunities and engagements I shared earlier on the call, we continue to increase our market engagement exposure through participation in several industry events for both commercial and defense markets as we broadly disseminate OSS’s unique messaging and move to identify opportunities and expand our pipeline.
In mid-December, we showcased our specialized high-performance AI computing solutions at Defense and Security Equipment International, also known as DSEI. The trade show held in London is the world’s largest land sea and air biennial defense and security exhibition. The team and I attended the event at the ExCel London Exhibition Center, where we displayed our full line of rugged Edge processing products for AI, sensor processing and sensor fusion applications. Rigel, our flagship rugged supercomputing Edge processor, won best in show, while our 3U SDS server, Cernis & Donati products received a vast amount of interest. With the largest defense the show was seen, we were able to engage with military prime contractors and service customers from multiple countries around the world, expanding from our primarily focused U.S. market.
In addition to solidifying relationships with current customers, we were able to expand our engagement within countries in Asia, Europe and the Middle East. We were able to leverage our Bressner team in these engagements to strengthen our channel to market for OSS products in Europe and the Middle East. Bressner continues to do a better job of promoting the higher-margin OSS products. Also in September, we exhibited at ADAS, the Autonomous Vehicle Technology Excellence Conference at the Santa Clara Convention Center in California. We showcased our latest solutions in autonomous vehicle technology, including Rigel as well as rugged Edge storage and compute solutions, such as EB4400 and 3U SDS. We did notice an increased level of interest and activity in the autonomous trucking space and received some additional requests for information and proposal.
We remain vigilant in this market space and continue to monitor it. In October, we showcased our specialized high-performance rugged Edge processing solutions at the Association of the United States Army annual meeting, AUSA. This show is considered the largest land power exposition in North America and had in excess of 40,000 people in attendance. The event was held at the Walter E. Washington Convention Center in Arlington, Virginia. It was clear across all venues of the show that sensor fusion and artificial intelligence were driving the future of army weapon systems. Our display of a rugged line of high-performance computer products from Rigel to Cernis & Donati resonated in relation to the themes and demand presented at the show. As with DSEI we were able to advance existing efforts and establish new procedure opportunities with new prime and new divisions within the U.S. Army.
