Versus Systems Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a dramatic decline in revenue, with total revenues of $3.8 thousand for the three months ended September 30, 2024, down 83% from $22.9 thousand in the same period of 2023. For the nine months ended September 30, 2024, revenues totaled $57.3 thousand, a decrease of 76% from $237 thousand in the prior year. This decline is attributed to a reduction in active customers, which fell from five at the end of 2023 to just one by September 30, 2024, largely due to a downsizing of the sales force.

Despite the revenue drop, the company managed to reduce its total operating expenses significantly. Operating expenses for the three months ended September 30, 2024, were $532.9 thousand, down 72% from $1.9 million in the same quarter of 2023. For the nine-month period, operating expenses decreased to $3.5 million from $5.5 million year-over-year. This led to a reduced operating loss of $529.0 thousand for the third quarter of 2024, compared to a loss of $1.9 million in the same quarter of 2023. The net loss for the three months ended September 30, 2024, was $529.0 thousand, a significant improvement from the $1.5 million loss reported in the same period of the previous year.

The company’s total assets decreased sharply from $4.9 million at the end of 2023 to $1.2 million by September 30, 2024. Total liabilities also saw a substantial reduction, falling from $321.5 thousand to $26.9 thousand in the same timeframe. However, the accumulated deficit increased from $(135.4 million) to $(138.7 million), and total stockholders’ equity decreased from $4.6 million to $1.2 million.

In terms of strategic developments, Versus Systems closed its UK operations in September 2024 and has faced compliance issues with Nasdaq, receiving a notice for non-compliance with the minimum stockholders’ equity requirement. The company has entered into a $2.5 million funding agreement with ASPIS Cyber Technologies, which includes a senior convertible promissory note and a technology license agreement. Additionally, the company has implemented expense reduction measures, including layoffs and the discontinuation of certain product development programs, as it seeks to stabilize its financial position.

As of September 30, 2024, Versus Systems had not achieved positive cash flow from operations, raising substantial doubt about its ability to continue as a going concern. The company is exploring options for additional funding and potential strategic transactions to improve its financial outlook.