Vocodia Holdings(US:VHAI)2025-12-22 22:28Revenue and Profitability - Revenues increased by $1,168, or 2%, to $51,324 for the three months ended September 30, 2025, compared to $50,156 for the same period in 2024[191] - Revenues increased by $16,230, or 32%, to $66,461 for the nine months ended September 30, 2025, compared to $50,231 for the same period in 2024[201] - Gross profit improved by $34,594 to a gross profit of $10,688 for the three months ended September 30, 2025, compared to a gross loss of $23,906 for the same period in 2024[193] - Gross loss decreased by $19,976 to $60,114 for the nine months ended September 30, 2025, from a gross loss of $80,090 for the same period in 2024[203] Cost Management - Cost of revenue decreased by $33,426, or 45%, to $40,636 for the three months ended September 30, 2025, from $74,062 for the same period in 2024[192] - Cost of revenue decreased by $3,746, or 3%, to $126,575 for the nine months ended September 30, 2025, from $130,321 for the same period in 2024[202] - Operating expenses decreased by $897,067, or 69%, to $410,034 for the three months ended September 30, 2025, from $1,307,101 for the same period in 2024[194] - Total operating expenses decreased by $4,484,238 or 79% to $1,222,316 for the nine months ended September 30, 2025, from $5,706,554 for the same period in 2024[204] Expense Breakdown - General and administrative expenses decreased by $371,476, or 50%, to $368,534 during the three months ended September 30, 2025, from $740,010 during the same period in 2024[195] - Salaries and wages decreased by $346,731, or 99%, to $3,000 for the three months ended September 30, 2025, from $349,731 for the same period in 2024[196] - Research and development expenses decreased by $217,360, or 100%, to $0 for the three months ended September 30, 2025, from $217,360 for the same period in 2024[197] - Related party consulting expenses increased by $38,500, or 100%, to $38,500 for the three months ended September 30, 2025, from $0 for the same period in 2024[198] Financial Position - Current assets decreased by $99,750, or 78%, to $28,607 as of September 30, 2025, from $128,357 as of December 31, 2024[210] - Current liabilities increased by $4,476,106 or 201%, to $7,124,541 as of September 30, 2025, from $2,363,345 as of December 31, 2024[211] - The company had a working capital deficiency of $7,095,844 as of September 30, 2025, indicating substantial doubt about its ability to continue as a going concern[212] Cash Flow and Liquidity - Cash used in operating activities was $653,478 for the nine months ended September 30, 2025, compared to $5,289,085 for the same period in 2024, reflecting an improvement of $4,635,607[214] - Cash flows from financing activities provided $656,337 during the nine months ended September 30, 2025, compared to $5,292,432 in the same period in 2024[219] - The company intends to rely on cash from operations and equity and debt offerings to meet its liquidity needs, with potential strategic actions if additional capital is not available[213] Accounting Policies and Instruments - The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks[228] - The fair value of the May 2025 Convertible Note is estimated using a Monte Carlo simulation model, considering factors such as common stock fair value and risk-free interest rate[233] - Research and development costs are expensed as incurred, including both internal and third-party costs[236] - Stock-based compensation is measured at grant date based on the fair value of the award and recognized over the service period[237] - The Company accounts for warrants as either equity-classified or liability-classified instruments based on specific terms and guidance[230] - Changes in the estimated fair value of warrants are recognized as a non-cash gain or loss on the statements of operations[231] - The Company evaluates all financial instruments to determine if they are derivatives or contain embedded derivatives[228] - The classification of derivative instruments is evaluated at the end of each reporting period[228] - The Company has elected to account for the May 2025 Convertible Note at fair value at inception and each subsequent reporting date[232] - The Company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay adopting new accounting standards[244]