Versus Systems (VS) - 2025 Q1 - Quarterly Report

Revenue Performance - Revenue for the three-month period ended March 31, 2025, was $199,347, representing an increase of $172,844, or 652%, from $26,503 for the same period in 2024[78]. - For the three months ended March 31, 2025, the Company recognized $176,000 attributed to professional services[101]. - No revenue was recognized on functional IP for the three months ended March 31, 2025, as the license had not been delivered to ASPIS during the year[102]. Cost and Expenses - Cost of revenues decreased by $15,823, or 66%, to $8,223 for the three-month period ended March 31, 2025, compared to $24,046 for the same period in 2024[79]. - Research and development expenses were $6,149 for the three-month period ended March 31, 2025, a decrease of $33,263, or 84%, from $39,412 for the same period in 2024[80]. - Selling, general and administrative expenses decreased by $106,745, or 7%, to $1,357,736 for the three-month period ended March 31, 2025, from $1,464,481 for the same period in 2024[81]. Operating Performance - The operating loss for the three-month period ended March 31, 2025, was $1,172,761, a decrease of $328,675, or 22%, from $1,501,436 for the same period in 2024[82]. - The company incurred net losses of approximately $1.2 million and $1.5 million for the three months ended March 31, 2025, and 2024, respectively[86]. Cash Flow and Liquidity - Cash position as of March 31, 2025, was $2,432,219, down from $3,065,914 as of December 31, 2024, reflecting ongoing operational funding needs[84]. - Net cash used in operating activities for the three-month period ended March 31, 2025, was $641,445, a decrease from $1,757,911 for the same period in 2024[90]. - The company plans to increase cash flow from operations and is evaluating strategic alternatives to address liquidity concerns[88]. Customer Base - The company has two active customers as of March 31, 2025, primarily consisting of sports teams and venues[67]. Stock-Based Compensation - The Company uses the Black-Scholes valuation model for estimating stock-based compensation, which includes considerations of volatility, expected life, and dividend yield[103].