Visium Technologies, Inc. Releases 10-K Report Highlighting Financial and Operational Performance
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Visium Technologies, Inc., a provider of cybersecurity visualization, big data analytics, and automation solutions, has released its Form 10-K report for the fiscal year ended June 30, 2023. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges it faces in the competitive cybersecurity market.
Financial Highlights
- Revenues: $0 million. The company did not report any revenue for the fiscal year ended June 30, 2023.
- Operating Expenses: $2.414 million. Total operating expenses decreased significantly from the previous year, primarily due to reductions in stock-based compensation and marketing expenses.
- Loss from Operations: $(2.414) million. The company reported a loss from operations, reflecting the absence of revenue and high operating expenses.
- Net Loss: $(3.311) million. The net loss decreased compared to the previous year, driven by cost reductions in various expense categories.
- Net Income Per Common Share – Basic and Diluted: $(0.55). The net loss per share improved from the previous year, reflecting a decrease in total net loss.
Business Highlights
- Company Overview: Visium Technologies, Inc. operates in the traditional cybersecurity space, as well as in the Internet of Things and data analytics spaces.
- Product Development: The company has commercialized a military-grade big data analytics tool for cybersecurity known as CyGraph, rebranded as TruContextTM. This tool provides advanced analytics for cybersecurity situational awareness and has been enhanced to function as a native cloud application with multi-user capabilities.
- TruContext Capabilities: TruContext offers visualization, advanced cyber monitoring intelligence, threat hunting, forensic analysis, data modeling, analytics, and automation. It is designed to reduce risk, simplify security operations, and improve security outcomes.
- Use Cases for TruContext: The platform can be deployed in various scenarios such as cybersecurity threat intelligence, IT/OT critical infrastructure security, supply chain analytics, anti-fraud, law enforcement, compliance, and healthcare.
- Revenue Generation Strategy: Visium plans to generate revenue through a virtual appliance model targeted at the Federal government, a SaaS model with recurring monthly fees, and professional services for cybersecurity solutions.
- Partnership Ecosystem: The company collaborates with technology alliance partners to integrate its platform with other products and services, focusing on security analytics, network security, threat platforms, and automation.
- Operational Challenges: The company faces competition from other cybersecurity solution providers and must navigate the complexities of increasing cyber attacks and limited resources for thorough investigations.
- Future Outlook: Visium aims to continue enhancing its cybersecurity solutions and expand its market presence by leveraging partnerships and improving its product offerings.
Strategic Initiatives
- Financial Position Improvement: The company has focused on improving its financial position by reducing outstanding debt and managing its capital resources effectively. This includes efforts to enhance liquidity through strategic financing activities such as the issuance of convertible notes and promissory notes.
- Capital Management: Visium has engaged in capital management activities including the issuance of convertible notes payable, which generated net proceeds of $140,000 during fiscal 2023. Additionally, the company issued promissory notes totaling $190,000. Shares were also issued as compensation to directors, officers, employees, and for consulting services.
- Future Outlook: The company plans to continue its strategy of managing liquidity through equity financing and does not anticipate incurring significant capital expenditures in the near term. The focus remains on raising approximately $180,000 annually to cover the costs of being a publicly traded company while exploring potential acquisition targets to enhance growth prospects.
Challenges and Risks
- Operational Risks: Visium heavily relies on third-party data center facilities and licensed technology from third parties. Any failure or unavailability of these facilities or technologies could present significant operational risks.
- Market Competition: The company faces significant competition in the cybersecurity market, which could lead to price reductions, reduced margins, and loss of market share.
- Supplier Dependence: Reliance on a single supplier for key raw materials presents a significant risk.
- Going Concern Doubts: Management and auditors have raised substantial doubts about the company's ability to continue as a going concern due to recurring net losses and a working capital deficit.
- Capital Raising Challenges: The company faces challenges in raising capital due to economic conditions and competition for limited available capital.
- Pandemic Impact: The COVID-19 pandemic adds uncertainty to the company's operations and financial performance.
- Stock Speculation: The company's stock is considered speculative with potential dilution risks for shareholders if additional shares are issued.
- Financial Liabilities: The company has a significant working capital deficit and negative cash flow from operations. Management plans to address these challenges by issuing additional equity securities and debt but there are no assurances of success. Risks related to convertible notes with variable price conversion terms also result in derivative liability expenses.