VISIUM TECHNOLOGIES, INC. SEC 10-Q Report

Visium Technologies, Inc., a provider of IT infrastructure professional services including network engineering, system engineering, converged infrastructure deployment, software development, and cybersecurity services, has released its Form 10-Q report for the third quarter ended September 30, 2024. The report highlights significant financial improvements, strategic initiatives aimed at expanding market presence, and the challenges the company faces in its operational and financial landscape.

Financial Highlights

• Net Revenues: $0 million. The company did not report any net revenues for the three months ended September 30, 2024.
• Operating Expenses: $370,466, a decrease of $166,037 or 30.9% compared to the same period in 2023, primarily due to reductions in consulting fees, stock-based consulting expense, and legal and professional expenses.
• Loss from Operations: $(370,466), improved by $166,037 or 30.9% compared to the same period in 2023, reflecting cost management efforts.
• Net Income (Loss): $326,616, a significant improvement from a net loss of $(588,699) in the same period in 2023, primarily due to a gain on debt write-off.
• Income (Loss) Per Common Share Basic: $0.00, compared to $(0.02) in the same period in 2023, reflecting the net income achieved in the current period.

Business Highlights

• Company Overview: Visium Technologies, Inc. provides IT infrastructure professional services, including network engineering, system engineering, converged infrastructure deployment, software development, and cybersecurity services. The company operates in the traditional cybersecurity space, as well as in the Internet of Things and data analytics spaces.
• Product Development: Visium has developed a proprietary cybersecurity platform called TruContextTM, a rebranded version of the CyGraph technology licensed from MITRE Corporation. TruContextTM provides advanced analytics for cybersecurity situational awareness and is designed to be a native cloud application with multi-user and multi-tenant capabilities.
• New Market Entry: The company is entering the digital transformation and data center design and construction market, having secured a contract valued at over $20 million to oversee the design and construction of data centers in the Republic of Côte d’Ivoire and the Republic of Benin.
• Operational 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 IT infrastructure and cybersecurity solutions.
• Partnership Ecosystem: Visium collaborates with technology alliance partners to integrate its platform with other products and services, focusing on security analytics, network and infrastructure security, and threat platforms.
• Future Outlook: The company aims to enhance its working capital through equity and debt financing and is exploring potential acquisition targets to expand its operations. Visium anticipates needing to raise approximately $180,000 annually to cover the costs of being a publicly-traded company.
• Employee Information: As of September 30, 2024, Visium had five full-time employees, indicating a lean operational structure focused on strategic growth and development.

Strategic Initiatives

• Expansion in Digital Transformation: Visium is focusing on expanding its presence in the digital transformation and data center design and construction market, having secured a contract valued at over $20 million for projects in Côte d’Ivoire and Benin.
• Enhancement of Cybersecurity Platform: The company is enhancing its cybersecurity platform, TruContextTM, to provide advanced analytics and visualization capabilities for cybersecurity situational awareness.
• Capital Management: During the three months ended September 30, 2024, Visium issued 10,691,000 shares of common stock for the conversion of $43,152 of principal and accrued interest from convertible notes. Additionally, the company issued 12,500,000 shares as compensation to directors and officers, and 5,350,000 shares to consultants. The company raised $75,000 through the issuance of promissory notes and extinguished aged debt totaling $725,059, which was beyond the statute of limitations.
• Future Outlook: Visium plans to continue financing its operations through a mix of equity and debt financing, with an anticipated need to raise approximately $180,000 annually to cover the costs of being a publicly-traded company. The company is also exploring potential acquisition targets to enhance its business operations and intends to raise substantial capital for such strategic acquisitions.

Challenges and Risks

• Operational and Financial Challenges: Visium faces several operational and financial challenges. The company is entering the digital transformation and data center design and construction market, which presents risks related to meeting specific requirements and standards for optimal performance and reliability. As of September 30, 2024, no activity has occurred pursuant to a significant contract valued at over $20 million, indicating potential delays or execution risks. The company also relies heavily on third-party data center facilities and licensed technology, which could pose operational risks if these resources become unavailable or fail to meet expectations.
• Working Capital Deficit: The company has a working capital deficit and relies on financing activities such as issuing notes payable and convertible notes payable to meet its obligations. This reliance on external financing presents a risk if the company is unable to secure necessary funds, which could impact its ability to continue operations and pursue growth strategies.
• Competitive Landscape: The competitive landscape is highlighted as a significant risk, with the company facing competition from established cybersecurity firms and vendors offering complementary solutions. This competition could lead to price reductions, reduced margins, and loss of market share.
• Resource and Personnel Shortages: The company faces challenges related to the shortage of resources and experienced personnel, which limits its ability to conduct thorough cybersecurity investigations. This shortage could impact the effectiveness of its TruContextTM platform in addressing cybersecurity threats.
• Financial Condition: The company’s financial condition is precarious, with a significant working capital deficit and a need to raise approximately $180,000 annually to cover the costs of being publicly traded. The company’s ability to continue as a going concern is dependent on securing additional financing and generating profitable operations.

SEC Filing: VISIUM TECHNOLOGIES, INC. [ VISM ] - 10-Q - Nov. 14, 2024