Versus Systems (US:VS)2025-11-14 12:01Revenue Performance - For the three months ended September 30, 2025, the Company reported no revenue, a decrease of $3,848, or 100%, from $3,848 for the same period in 2024[74]. - For the nine months ended September 30, 2025, revenue was $2,179,348, an increase of $2,122,060, or 3,704%, from $57,288 for the same period in 2024, attributed to ASPIS license revenue and professional services[78]. - The company recognized $1,980,000 in revenue from functional IP for the nine months ended September 30, 2025, with $1,001,000 collected from ASPIS during the same period[100][101]. - The company recognized $176,000 attributed to professional services during the nine months ended September 30, 2025[99]. - Revenue from software-as-a-service (SAAS) is recognized over the life of the contract, reflecting the performance obligations satisfied[95]. - The company recognizes revenue from advertising sales on a net basis, acting as an agent in the transaction[97]. Expenses - Research and development expenses for the three months ended September 30, 2025, were $14,470, an increase of $3,008, or 26%, from $11,462 for the same period in 2024[75]. - Selling, general and administrative expenses for the three months ended September 30, 2025, were $741,931, an increase of $220,521, or 42%, from $521,410 for the same period in 2024[76]. - Total operating expenses for the nine months ended September 30, 2025, were $3,153,263, a decrease from $3,547,139 for the same period in 2024[77]. - Stock-based compensation increased by $248,087 during the nine months ended September 30, 2025[89]. Financial Position - As of September 30, 2025, the Company had cash of $1,405,628 and a working capital balance of $2,770,192, down from cash of $3,065,914 and working capital of $3,509,272 as of December 31, 2024[83]. - The net decrease in cash and cash equivalents for the nine months ended September 30, 2025 was $1,660,286, compared to a decrease of $4,217,759 in 2024[88]. - Net cash used in operating activities for the nine months ended September 30, 2025 was $1,484,267, a decrease of 65% compared to $4,255,345 for the same period in 2024[89]. - Cash used in investing activities was $300,000 for the nine months ended September 30, 2025, attributed to technology development for new product offerings, with no cash used in 2024[90]. Business Strategy and Risks - The Company is pursuing new customer relationships and expansion opportunities, particularly in Brazil, which is expected to begin generating revenue in the near term[67]. - The Company continues to face risks and uncertainties common to emerging growth businesses, with management believing that current resources may not be sufficient to fund planned activities for the next twelve months[86]. - The company has not engaged in any financing activities for the nine months ended September 30, 2025 and 2024[91]. - The company operates under the Emerging Growth Company status, allowing it to delay adopting new accounting standards[103]. Technology and Development - The Company has implemented cybersecurity solutions to strengthen its technology infrastructure and is developing new intellectual property to enhance its technology portfolio[67].