Revenue Performance - Revenue for the three months ended June 30, 2024, was $26,937, a decrease of $29,116, or 52%, from $56,053 for the same period in 2023[126] - Revenue for the six months ended June 30, 2024, was $53,440, representing a decrease of $160,563, or 75%, from $214,003 for the same period in 2023[131] Cost and Expenses - Cost of revenues for the three months ended June 30, 2024, was $16,231, a decrease of $7,339, or 31%, from $23,570 for the same period in 2023[127] - Research and development expenses for the three months ended June 30, 2024, were $67,203, a decrease of $650,464, or 91%, from $717,667 for the same period in 2023[127] - Selling, general and administrative expenses for the three months ended June 30, 2024, were $1,443,171, a decrease of $182,300, or 11%, from $1,625,471 for the same period in 2023[128] Net Loss - The net loss for the three months ended June 30, 2024, was $1,499,742, a decrease of $810,913, or 35%, from $2,310,655 for the same period in 2023[129] - The company incurred net losses of approximately $10.5 million and $22.4 million for the years ended December 31, 2023, and 2022, respectively[139] Cash Position - Cash position as of June 30, 2024, was $905,915, down from $4,689,007 as of December 31, 2023[137] - Net cash used in operating activities for the six months ended June 30, 2024, was $3,783,092, an increase from $3,514,003 in the same period of 2023[142] - The company reported a net cash decrease of $3,783,092 for the six months ended June 30, 2024, compared to an increase of $2,014,982 in the prior year[142] - There was no net cash provided by financing activities in the six months ended June 30, 2024, down from $5,538,655 in the same period of 2023[146] - The cash flow used in investing activities was $0 for the six months ended June 30, 2024, compared to $9,670 in the same period of 2023[145] Financing and Strategic Alternatives - The company completed a public direct offering in October 2023, receiving gross proceeds of approximately $3 million[139] - The company believes current resources and expected revenues will be insufficient to fund planned operations for the next twelve months[140] - The company has evaluated strategic alternatives due to declining revenues and liquidity concerns, indicating a need for additional financing[141] - The company may consider raising funds through public or private equity or debt financings, which could dilute current shareholders' ownership[141] - The company anticipates that any additional capital raised may come with restrictive covenants and significant interest costs[141] - All promissory notes totaling $4,750,818 issued from 2017 to December 31, 2022, have been repaid as of December 31, 2023[147] Tax Matters - The company has not recorded any accruals for interest and penalties related to income tax matters as of June 30, 2024, and 2023[154]

Core Insights - Geoff Deller has been appointed as the new interim Chief Financial Officer of Versus Systems, bringing extensive experience in finance, investment banking, and technology sectors [1][4] - The company aims to leverage Deller's financial leadership to guide its next phase of growth and innovation [1][6] - Curtis Wolfe, the Interim Chief Executive Officer, expressed confidence in Deller's role in shaping the company's future and building a dynamic management team [2][5] Company Overview - Versus Systems, Inc. is a technology company focused on interactive entertainment and audience engagement solutions, headquartered in Los Angeles, California [4][5] - The company has developed a proprietary in-game prizing and promotions engine that allows game developers to offer real-world rewards to players [5] - Versus Systems is committed to innovation, security, and delivering value to its stakeholders while redefining the interactive entertainment landscape [6]

About this content Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government. She earned a Bachelor of ...

VANCOUVER, British Columbia, July 01, 2024 (GLOBE NEWSWIRE) -- Versus Systems, Inc. (NASDAQ: VS), a pioneering technology company in interactive entertainment, is pleased to announce the appointment of a new Interim Chief Executive Officer. Prior to Mr. Wolfe's appointment as Interim CEO, the Board of Directors accepted the resignations of Matthew Pierce, the Company's CEO and Director, Craig Finster, the Company's CFO, and Keyvan Penman, the Company's Chairman, and independent directors Michelle Gahagan an ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File No. 001-39885 VERSUS SYSTEMS INC. (Exact name of registrant as specified in its charter) British Columbia Not Applicable ...

Revenue Performance - Revenue for the year ended December 31, 2023, was $271,169, a decrease of $847,671 or 76% from $1,108,840 in 2022, primarily due to a reduction in active customers from 16 to 5[187]. Cost Management - Cost of revenues decreased to $103,067 in 2023, down $513,982 or 83% from $617,049 in 2022, attributed to significant staff reductions[188]. - Research and development expenses were $1,107,235 for 2023, a decrease of $1,298,771 or 54% from $2,406,006 in 2022, mainly due to reduced staffing and software costs[189]. - Selling, general and administrative expenses were $5,944,909 in 2023, down $5,893,219 or 50% from $11,838,128 in 2022, reflecting a reduction in staff from 39 to 8 employees[191]. Impairment and Losses - Impairment of goodwill and other intangible assets was $3,968,332 in 2023, a decrease of $4,950,670 or 56% from $8,919,002 in 2022, influenced by reduced revenue projections and competitive landscape[192]. - Net loss for the year ended December 31, 2023, was $10,512,157, a decrease of $11,961,035 or 53% from $22,473,192 in 2022[186]. Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2023, were $4.7 million, with net cash used in operating activities amounting to $5,471,406[196][200]. - The company completed a registered direct offering in February 2023, raising gross proceeds of $2.25 million, and a public direct offering in October 2023, raising approximately $3 million[196]. - The company plans to increase cash flow from operations and is evaluating strategic alternatives to address liquidity concerns[198]. - The company incurred net cash used in investing activities of $14,514 in 2023, significantly lower than $2,536,832 in 2022, due to reduced payroll capitalized for intangible asset development[201]. Debt and Financing - The company issued $4,750,818 in promissory notes from 2017 to December 31, 2022, with interest rates ranging from 2.45% to 3.95% per annum, all loans have been repaid as of December 31, 2023[203]. - Deferred financing costs primarily relate to direct incremental costs from the public offerings of common stock completed in February 2023[206]. Asset Management - Property and equipment are stated at cost, net of accumulated depreciation, with depreciation calculated over the depreciable amount starting from the date the asset is available for intended use[207]. - Intangible assets acquired through business combinations are initially recognized at fair value as of the acquisition date and carried at cost less accumulated amortization[209]. Financial Reporting and Compliance - A $9,743,659 warrant derivative loss was recorded beginning February 1, 2021, when the company changed its functional currency[211]. - The company recognizes uncertain income tax positions at the largest amount that is more-likely-than-not to be sustained upon audit, with no accruals for interest and penalties recorded as of December 31, 2023[214]. - The estimation of share-based payments utilizes the Black-Scholes valuation model, with inputs based on historical data and market conditions[215]. - Revenue recognition occurs monthly upon delivery or as services are provided, with cash received in advance recorded as deferred revenue[216]. - The functional currency for each subsidiary is determined based on the primary economic environment, with reassessment occurring if conditions change[217].

Exhibit 99.1 CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Expressed in United States dollars) SIX MONTH PERIOD ENDED JUNE 30, 2023 Versus Systems Inc. Condensed Interim Consolidated Statements of Financial Position (Expressed in US Dollars) (Unaudited – prepared by management) June 30, 2023 December 31, 2022 ($) ($) ASSETS Current assets Cash 3,193,827 1,178,846 Receivables, net of allowance (Note 5) 21,386 60,749 Deferred financing costs (Note 3) 135,162 - Prepaids 290,564 223,226 Total current ass ...

Exhibit 99.1 CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Expressed in United States dollars) THREE MONTH PERIOD ENDED MARCH 31, 2023 Versus Systems Inc. Condensed Interim Consolidated Statements of Financial Position (Expressed in US Dollars) (Unaudited – prepared by management) | | March 31, | December 31, | | --- | --- | --- | | | 2023 | 2022 | | | ($) | ($) | | ASSETS | | | | Current assets | | | | Cash | 5,279,410 | 1,178,846 | | Receivables, net of allowance (Note 5) | 34,567 | 60,749 | | Prep ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Securities registered or to be registered pursuant to Sectio ...

Exhibit 99.1 CONSOLIDATED FINANCIAL STATEMENTS (Expressed in United States dollars) YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020 18012 Sky Park Circle, Suite 200 Irvine, California 92614 tel 949-852-1600 Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Directors Versus Systems Inc.: Opinion on the Consolidated Financial Statements We have audited the accompanying statements of financial position of Versus Systems Inc. and its subsidiaries (collectively, the Company) a ...