Revenue Performance - Revenue for the year ended December 31, 2024, was 57,288,adecreaseof213,881, or 79%, from 271,169in2023,primarilyduetoareductioninactiveclientsfrom16to2[177].−ThenetlossfortheyearendedDecember31,2024,was4,574,836, compared to a net loss of 10,512,157in2023,representingadecreaseof5,937,321, or 56%[176]. - Revenue from custom-built software development and maintenance is recognized upon satisfaction of performance obligations, either at a single point in time or over time[200]. - For the year ended December 31, 2024, no revenue was recognized on functional IP as the license agreement with ASPIS had not been delivered during the year[203]. Expenses and Cost Management - Cost of revenues decreased to 40,277in2024,down62,790, or 61%, from 103,067in2023,mainlyduetostaffreductions[178].−Researchanddevelopmentexpenseswere246,019 for 2024, a decrease of 861,216,or781,107,235 in 2023, attributed to reduced staffing and software costs[179]. - Selling, general and administrative expenses were 4,310,218in2024,down1,634,691, or 27%, from 5,944,909in2023,reflectingadecreaseinemployeecountfrom16to6[180].CashFlowandLiquidity−Netcashusedinoperatingactivitieswas4,971,948 for 2024, a decrease from 5,582,139in2023,primarilyduetoareductioninnetloss[191].−Netcashprovidedbyfinancingactivitieswas3,278,235 in 2024, compared to 9,045,578in2023,reflectingadecreaseinproceedsfromcommonsharesandwarrants[193].−Thecompanyhadcashandcashequivalentsof3.1 million as of December 31, 2024, indicating ongoing liquidity concerns[187]. - The company plans to increase cash flow from operations and is evaluating strategic alternatives to address liquidity issues[189]. Impairment and Intangible Assets - The impairment of goodwill and other intangible assets was 0for2024,adecreaseof3,968,332, or 100%, from the previous year[181]. - The company impaired the remaining carrying value of intangible assets by $3,968,332 during the year ended December 31, 2023[195]. Revenue Recognition Policies - The company recognizes revenue from software-as-a-service (SAAS) over the life of the contract, with payment terms varying by contract[198]. - Cash received in advance for services is recorded as deferred revenue based on the proportion of time remaining under the service arrangement[204]. - The company recognizes advertising revenue on a net basis, acting as an agent in the transaction, and only upon achieving agreed-upon performance criteria[201]. - The company may enter into short-term convertible debt agreements to provide bridge capital, which includes a debt discount and a common stock conversion feature[205].
Versus Systems (VS)2025-03-31 16:52