SCWorx Corp. reported its financial results for the three and nine months ended September 30, 2024, revealing a decline in revenue but improvements in net loss and operating expenses compared to the same periods in 2023. For the third quarter of 2024, revenue was $759,724, down from $906,099 in 2023, marking a decrease of $146,375. For the nine-month period, revenue totaled $2,313,850, a decline of $580,797 from $2,894,647 in the prior year. The decrease in revenue was attributed to the expiration and non-renewal of certain customer contracts.
Gross profit for the third quarter of 2024 was $132,576, compared to $239,291 in 2023. For the nine months, gross profit decreased to $587,536 from $922,347. Total operating expenses significantly decreased to $526,074 for the third quarter, down from $1,097,273 in 2023, and to $1,466,637 for the nine months, compared to $2,328,209 in the previous year. This reduction was primarily due to cuts in salaries and wages, legal settlement accruals, and stock-based compensation.
The net loss for the third quarter of 2024 was $(424,963), an improvement from $(858,258) in 2023. For the nine months, the net loss was $(940,935), compared to $(1,412,070) in the same period last year. The net loss per share for the third quarter was $(0.27), down from $(0.76) in 2023, while for the nine months, it was $(0.69), compared to $(1.45) in the prior year.
As of September 30, 2024, total current assets increased to $679,965 from $435,782 at the end of 2023, and total assets rose to $6,522,398 from $6,278,215. Total stockholders’ equity also improved to $4,484,876 from $3,853,449. The company reported net cash used in operating activities of $(949,860) for the nine months, compared to $(701,282) in 2023, while net cash provided by financing activities increased to $946,090 from $524,249.
Strategically, SCWorx has been focusing on reducing operating expenses and securing additional financing through debt or equity securities. The company has raised concerns about its ability to continue as a going concern due to insufficient capital resources. Additionally, SCWorx issued shares for legal settlements and convertible notes, reflecting ongoing financial maneuvers to manage its obligations. The company continues to operate under a SaaS model, providing data content and services for healthcare providers, with a focus on data normalization and interoperability.
About SCWorx Corp.
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