Revenue Performance - Revenue for the three months ended June 30, 2024, was $742,027, a decrease of 25.2% from $991,099 for the same period in 2023, primarily due to the expiration and non-renewal of certain customer contracts [100]. - Revenue for the six months ended June 30, 2024, was $1,554,126, a decrease of 21.7% from $1,988,548 for the same period in 2023, primarily due to contract expirations [105]. Cost of Revenues - Cost of revenues for the three months ended June 30, 2024, was $495,701, down 19.5% from $616,030 in the same period of 2023, attributed to staffing reductions [101]. - Cost of revenues for the six months ended June 30, 2024, was $1,099,166, down 15.8% from $1,305,492 in the same period of 2023, also due to staffing reductions [105]. Operating Expenses - Operating expenses increased by $29,941 to $553,473 for the three months ended June 30, 2024, compared to $523,532 in the same period of 2023, mainly due to increased legal and professional fees [102]. - Operating expenses decreased by $290,373 to $940,563 for the six months ended June 30, 2024, compared to $1,230,936 in the same period of 2023, primarily due to reductions in salaries and stock-based compensation [106]. Net Loss - The net loss for the three months ended June 30, 2024, was $337,313, compared to a net loss of $153,922 for the same period in 2023, reflecting a deterioration of 118.5% [103]. Cash Flow - Cash used in operating activities was approximately $587,000 for the six months ended June 30, 2024, mainly related to the net loss and increases in accounts receivable [107]. - Cash provided by financing activities was $513,081 for the six months ended June 30, 2024, consisting of proceeds from loans payable [111]. Going Concern - Management has raised substantial doubt about the company's ability to continue as a going concern due to insufficient capital resources and ongoing operating losses [112].
SCWorx (WORX) - 2024 Q2 - Quarterly Report