SCWorx Corp. reported significant financial results for the second quarter and first half of 2024, reflecting challenges in revenue generation and ongoing operational adjustments. For the three months ended June 30, 2024, the company generated revenue of $742,027, a decrease of 25.1% from $991,099 in the same period of 2023. For the six months ended June 30, 2024, revenue totaled $1,554,126, down 21.8% from $1,988,548 in the prior year. The decline in revenue was attributed to the expiration and non-renewal of certain customer contracts.
Gross profit for the second quarter was $246,326, compared to $375,069 in the previous year, while for the first half, gross profit decreased to $454,960 from $683,056. Total operating expenses for the second quarter increased slightly to $553,473 from $523,532, while for the first half, operating expenses decreased to $940,563 from $1,230,936, primarily due to reductions in salaries and stock-based compensation.
The company reported a net loss of $(337,313) for the second quarter, compared to a net loss of $(153,922) in the same period of 2023. For the first half of 2024, the net loss was $(515,972), an improvement from $(553,812) in the prior year. The net loss per share for the second quarter was $(0.26), compared to $(0.17) in 2023, while for the first half, it was $(0.41), down from $(0.62).
As of June 30, 2024, SCWorx had total assets of $6,514,436, an increase from $6,278,215 at the end of 2023. However, total liabilities rose to $2,905,715 from $2,424,766, leading to a decrease in stockholders' equity to $3,608,721 from $3,853,449. The company reported deferred revenue of $387,958, up from $378,583.
Cash reserves significantly declined, with $17,264 reported as of June 30, 2024, compared to $91,436 at the end of 2023. The net cash used in operating activities for the first half of 2024 was $(587,253), an increase from $(328,475) in 2023. However, net cash provided by financing activities improved to $513,081 from $212,047.
Strategically, SCWorx has faced challenges, including the termination of a merger agreement with American Energy Partners, Inc. in March 2024. The company is currently evaluating alternatives to reduce operating expenses and secure additional financing. Management has raised concerns about the company's ability to continue as a going concern due to insufficient capital resources.
About SCWorx Corp.
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