WORLDS INC SEC 10-K Report

Worlds Inc., a company focused on monetizing its collection of non-fungible tokens (NFTs) and legacy celebrity virtual reality worlds, has released its 10-K report for the fiscal year ended December 31, 2024. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges it faces in a rapidly evolving industry.

Financial Highlights

• Total Revenue: $0. The company generated no operating revenue during the years ended December 31, 2024, and 2023.
• Gross Profit/(Loss): $0. As there was no revenue, the gross profit/loss remained at zero for both years.
• Operating Loss: $(435,472). Operating loss increased due to higher selling, general, and administrative expenses, as well as increased salaries and related expenses.
• Net Income/(Loss): $(511,382). The company reported a net loss for the year ended December 31, 2024, compared to a net income of $82,179 for the year ended December 31, 2023, primarily due to the absence of gains from the sale of marketable securities and a URL.
• Weighted Average Gain (Loss) per share, basic and diluted: $(0.01), reflecting the net loss for the year ended December 31, 2024.

Business Highlights

• Business Focus: The company is focused on monetizing its collection of non-fungible tokens and legacy celebrity virtual reality worlds. It is also exploring strategic alliances with advanced virtual reality platforms to enhance its position in the VR/AR market.
• Technology Platform: The company's core technology includes WorldsShaper, WorldsServer, WorldsBrowser, WorldsPlayer, and Worlds Gamma Libraries, which are used to create and manage 3D virtual environments. These tools are designed for rapid creation and integration of 3D environments.
• Intellectual Property: The company retained its patent portfolio after the spin-off of its operations to MariMed Inc. and is leveraging this IP to develop new applications and enforce its patents.
• Employee Structure: As of December 31, 2024, the company had one employee, its president and CEO, Thomas Kidrin.
• Corporate History: The company underwent a spin-off in 2011, transferring the majority of its operations to Worlds Online Inc., now known as MariMed Inc. The company retained its patent portfolio and is focusing on its legacy virtual reality worlds.
• Future Outlook: The company anticipates generating revenue from its non-fungible tokens and legacy virtual reality worlds. It is also seeking additional capital and strategic partnerships to expand its operations and leverage its existing software assets.

Strategic Initiatives

• Strategic Initiatives: The company is focused on monetizing its collection of non-fungible tokens and legacy celebrity virtual reality worlds as potential sources of revenue. It has retained its patent portfolio and is looking to expand on its legacy celebrity worlds. The company is also exploring additional sources of capital to support its operations and potential expansion.
• Capital Management: The company has faced liquidity constraints, limiting its operations since mid-2001. It has raised small amounts of capital through equity and convertible debt issuance, and by selling shares of MariMed Inc. The company has not raised any additional cash during the year ended December 31, 2024, and its cash and cash equivalents decreased significantly from $244,856 in 2023 to $6,380 in 2024. The company has a working capital deficiency and a stockholder's deficiency, raising substantial doubt about its ability to continue as a going concern. No capital expenditures were made in 2024 or 2023.
• Future Outlook: The company plans to continue pursuing additional sources of capital, though it currently has no arrangements for additional financing. If it cannot raise additional capital or generate sufficient revenues, it may be unable to expand operations or purchase additional patents. The company is committed to implementing its strategic plans to provide the opportunity to continue as a going concern. It also plans to focus on its patent portfolio and the monetization of its non-fungible tokens and virtual reality worlds as potential revenue streams.

Challenges and Risks

• Industry Uncertainty: The company is focused on monetizing its collection of non-fungible tokens (NFTs) and legacy celebrity virtual reality worlds. This is a relatively new industry, and its development and acceptance in the mainstream market are uncertain. The company is exploring strategic alliances with virtual reality platforms to leverage its existing software assets and industry relationships.
• Operational Risks: The company faces significant operational risks due to its history of large losses and the need for substantial market penetration and improved operating margins to achieve profitability. The success of monetizing its IP assets, such as legacy celebrity worlds and NFTs, is uncertain due to the nascent nature of the industry.
• Intellectual Property Risks: The company also faces risks related to the protection and potential litigation of its intellectual property rights, which could result in substantial costs and liabilities.
• Key Personnel Risks: The loss of key personnel, particularly the CEO, could materially affect the company's operations.
• Regulatory Risks: Regulatory risks include potential new government regulations related to the Internet and e-commerce, which could increase operational costs.
• Liquidity and Capital Risks: The company has not generated operating revenue and continues to face liquidity challenges. It relies on raising capital through equity and convertible debt, and there is no assurance of future financing availability. The company’s expenses have increased, particularly in data center costs, consulting services, audit, and legal fees. The company’s strategy involves seeking additional capital, forming alliances, or generating sufficient revenues to expand operations.
• Market Risks: The company is exposed to market risks, including the potential impact of foreign currency fluctuations and changes in general economic and business conditions. The lack of liquidity and the need for additional capital pose significant risks to the company’s ability to continue operations and expand its business.

SEC Filing: WORLDS INC [ WDDD ] - 10-K - Apr. 01, 2025