Versus Systems (VS) - 2024 Q2 - Quarterly Report

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]