SCWorx (WORX) - 2024 Q3 - Quarterly Report

Revenue Performance - Revenue for the three months ended September 30, 2024 was $759,724, a decrease of 16% from $906,099 for the same period in 2023, primarily due to the expiration and non-renewal of certain customer contracts [124]. - For the nine months ended September 30, 2024, revenue was $2,313,850, down 20% from $2,894,647 in 2023, primarily due to contract expirations [129]. Cost of Revenues - Cost of revenues for the three months ended September 30, 2024 was $627,148, down from $666,808 in 2023, attributed mainly to staffing reductions [125]. - Cost of revenues for the nine months ended September 30, 2024 was $1,726,314, a decrease from $1,972,300 in 2023, also due to staffing reductions [129]. Operating Expenses - Operating expenses decreased by $571,199 to $526,074 for the three months ended September 30, 2024, compared to $1,097,273 in the same period of 2023, due to reductions in legal fees and a one-time legal settlement accrual [126]. - Operating expenses for the nine months ended September 30, 2024 decreased by $861,572 to $1,466,637, compared to $2,328,209 in 2023, driven by reductions in salaries and a one-time legal settlement [129]. Net Loss - Net loss for the three months ended September 30, 2024 was $424,963, an improvement from a net loss of $858,258 in 2023 [128]. - Net loss for the nine months ended September 30, 2024 was $940,935, compared to a net loss of $1,412,070 in 2023, reflecting improved financial performance [131]. Cash Flow - Cash used in operating activities was approximately $950,000 for the nine months ended September 30, 2024, compared to $701,000 in 2023, primarily due to net losses and changes in accounts receivable [131]. - Cash provided by financing activities was approximately $946,000 for the nine months ended September 30, 2024, an increase from $524,000 in 2023, indicating improved financing efforts [135]. Regulatory Classification - The company is classified as a smaller reporting company and is not required to provide detailed market risk disclosures [139].