Worlds Inc. reported a challenging financial performance for the nine months ended September 30, 2024, with no revenue generated, consistent with the same period in 2023. The company continues to face significant operational hurdles, including a working capital deficiency and stockholder’s deficiency, both amounting to $3,516,131. The net loss for the nine months was $373,968, an increase from a net loss of $215,848 in the prior year. This reflects a deteriorating financial position as the company has incurred substantial losses since its inception and has had minimal revenues from operations.

Operating expenses have risen, with selling, general, and administrative (SG&A) expenses increasing by $50,093 to $122,758 compared to the same period in 2023. Salaries and related expenses also saw an uptick, rising to $194,426 from $161,760. The increase in SG&A expenses is attributed to higher data center costs and consultant fees aimed at attracting investors. Cash used in operations for the nine months was $213,604, significantly higher than $80,529 in the previous year.

The company has been operating at a reduced capacity, employing only one staff member and relying on consultants for additional work. As of the reporting date, cash and cash equivalents stood at $31,253, a slight increase from $31,088 a year earlier. The company has not incurred any advertising or research and development costs during the nine months ended September 30, 2024.

Worlds Inc. is focusing on expanding its legacy celebrity virtual worlds and its collection of non-fungible tokens (NFTs) as potential revenue sources. The company anticipates future revenue from these initiatives, although it has not yet realized any income from them. The Worlds Chat platform, which has over 200,000 registered users and approximately 10,000 monthly active users, remains a key asset.

The company’s financial stability is contingent upon raising additional capital and implementing its business plan. As of September 30, 2024, the company recorded a reserve of $205,000 for a lawsuit related to unpaid consulting services, which is included in accrued expenses. The company has also noted that its disclosure controls and procedures were not effective as of the reporting date, indicating potential governance issues that may affect future operations.