SCWorx (US:WORX)2025-11-12 21:04Revenue Performance - Revenue for the three months ended September 30, 2025 was $705,799, a decrease of 7.1% compared to $759,724 for the same period in 2024, primarily due to the expiration and non-renewal of certain customer contracts [138]. - For the nine months ended September 30, 2025, revenue was $2,108,730, a decrease of 8.9% from $2,313,850 for the same period in 2024, again due to contract expirations and non-renewals [145]. Cost of Revenues - Cost of revenues decreased to $453,872 for the three months ended September 30, 2025, down 27.5% from $627,148 in the same period of 2024, attributed to staffing reductions and lower cloud hosting costs [139]. - Cost of revenues for the nine months ended September 30, 2025 was $1,539,523, down 10.8% from $1,726,314 in 2024, resulting from staffing decreases and reduced cloud hosting expenses [146]. Operating Expenses - Operating expenses decreased by $135,290 to $390,784 for the three months ended September 30, 2025, compared to $526,074 in 2024, mainly due to reductions in legal and professional fees [140]. - Operating expenses for the nine months ended September 30, 2025 decreased to $1,335,588 from $1,466,637 in 2024, a reduction of $131,049, primarily due to lower legal and professional fees [147]. Net Loss - Net loss for the three months ended September 30, 2025 was $1,312,539, compared to a net loss of $424,963 for the same period in 2024, reflecting a significant increase in losses [142]. - The company reported a net loss of $3,694,927 for the nine months ended September 30, 2025, compared to a net loss of $940,935 for the same period in 2024, indicating a substantial increase in losses [149]. Other Expenses - Other expenses increased significantly to $2,928,546 for the nine months ended September 30, 2025, compared to $61,834 in 2024, largely due to new interest-bearing convertible notes and amortization of note discounts [148]. Financing Activities - Cash provided by financing activities was approximately $1,992,175 for the nine months ended September 30, 2025, significantly higher than $946,090 in 2024, driven by proceeds from loans and warrant exercises [154]. Company Classification - The company is classified as a smaller reporting company under Rule 12b-2 of the Exchange Act and is not required to provide detailed market risk information [162].