Versus Systems (US:VS)2025-03-31 16:52Revenue Performance - Revenue for the year ended December 31, 2024, was $57,288, a decrease of $213,881, or 79%, from $271,169 in 2023, primarily due to a reduction in active clients from 16 to 2[177]. - The net loss for the year ended December 31, 2024, was $4,574,836, compared to a net loss of $10,512,157 in 2023, representing a decrease of $5,937,321, or 56%[176]. - Revenue from custom-built software development and maintenance is recognized upon satisfaction of performance obligations, either at a single point in time or over time[200]. - For the year ended December 31, 2024, no revenue was recognized on functional IP as the license agreement with ASPIS had not been delivered during the year[203]. Expenses and Cost Management - Cost of revenues decreased to $40,277 in 2024, down $62,790, or 61%, from $103,067 in 2023, mainly due to staff reductions[178]. - Research and development expenses were $246,019 for 2024, a decrease of $861,216, or 78%, from $1,107,235 in 2023, attributed to reduced staffing and software costs[179]. - Selling, general and administrative expenses were $4,310,218 in 2024, down $1,634,691, or 27%, from $5,944,909 in 2023, reflecting a decrease in employee count from 16 to 6[180]. Cash Flow and Liquidity - Net cash used in operating activities was $4,971,948 for 2024, a decrease from $5,582,139 in 2023, primarily due to a reduction in net loss[191]. - Net cash provided by financing activities was $3,278,235 in 2024, compared to $9,045,578 in 2023, reflecting a decrease in proceeds from common shares and warrants[193]. - The company had cash and cash equivalents of $3.1 million as of December 31, 2024, indicating ongoing liquidity concerns[187]. - The company plans to increase cash flow from operations and is evaluating strategic alternatives to address liquidity issues[189]. Impairment and Intangible Assets - The impairment of goodwill and other intangible assets was $0 for 2024, a decrease of $3,968,332, or 100%, from the previous year[181]. - The company impaired the remaining carrying value of intangible assets by $3,968,332 during the year ended December 31, 2023[195]. Revenue Recognition Policies - The company recognizes revenue from software-as-a-service (SAAS) over the life of the contract, with payment terms varying by contract[198]. - Cash received in advance for services is recorded as deferred revenue based on the proportion of time remaining under the service arrangement[204]. - The company recognizes advertising revenue on a net basis, acting as an agent in the transaction, and only upon achieving agreed-upon performance criteria[201]. - The company may enter into short-term convertible debt agreements to provide bridge capital, which includes a debt discount and a common stock conversion feature[205].