Revenue Performance - Revenue for the three months ended June 30, 2024, was 26,937,adecreaseof29,116, or 52%, from 56,053forthesameperiodin2023[126]−RevenueforthesixmonthsendedJune30,2024,was53,440, representing a decrease of 160,563,or75214,003 for the same period in 2023[131] Cost and Expenses - Cost of revenues for the three months ended June 30, 2024, was 16,231,adecreaseof7,339, or 31%, from 23,570forthesameperiodin2023[127]−ResearchanddevelopmentexpensesforthethreemonthsendedJune30,2024,were67,203, a decrease of 650,464,or91717,667 for the same period in 2023[127] - Selling, general and administrative expenses for the three months ended June 30, 2024, were 1,443,171,adecreaseof182,300, or 11%, from 1,625,471forthesameperiodin2023[128]NetLoss−ThenetlossforthethreemonthsendedJune30,2024,was1,499,742, a decrease of 810,913,or352,310,655 for the same period in 2023[129] - The company incurred net losses of approximately 10.5millionand22.4 million for the years ended December 31, 2023, and 2022, respectively[139] Cash Position - Cash position as of June 30, 2024, was 905,915,downfrom4,689,007 as of December 31, 2023[137] - Net cash used in operating activities for the six months ended June 30, 2024, was 3,783,092,anincreasefrom3,514,003 in the same period of 2023[142] - The company reported a net cash decrease of 3,783,092forthesixmonthsendedJune30,2024,comparedtoanincreaseof2,014,982 in the prior year[142] - There was no net cash provided by financing activities in the six months ended June 30, 2024, down from 5,538,655inthesameperiodof2023[146]−Thecashflowusedininvestingactivitieswas0 for the six months ended June 30, 2024, compared to 9,670inthesameperiodof2023[145]FinancingandStrategicAlternatives−ThecompanycompletedapublicdirectofferinginOctober2023,receivinggrossproceedsofapproximately3 million[139] - The company believes current resources and expected revenues will be insufficient to fund planned operations for the next twelve months[140] - The company has evaluated strategic alternatives due to declining revenues and liquidity concerns, indicating a need for additional financing[141] - The company may consider raising funds through public or private equity or debt financings, which could dilute current shareholders' ownership[141] - The company anticipates that any additional capital raised may come with restrictive covenants and significant interest costs[141] - All promissory notes totaling $4,750,818 issued from 2017 to December 31, 2022, have been repaid as of December 31, 2023[147] Tax Matters - The company has not recorded any accruals for interest and penalties related to income tax matters as of June 30, 2024, and 2023[154]
Versus Systems (VS)2024-08-14 18:36