VERSES (VERS) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 was $155,000, down from $558,814 in Q2 2024, due to early termination of a key SaaS contract.

• Net loss for Q2 2025 was $8,333,308, up from $7,995,067 in Q2 2024, mainly from higher R&D and share-based payments.

• For the six months ended September 30, 2024, net loss was $18,732,903, compared to $16,133,570 in the prior year period.

• The company continues to invest heavily in the development and beta launch of its Genius™ platform.

• Significant financing activities included a $10M convertible debenture and multiple private placements to support operations.

Financial highlights

• Q2 2025 revenue fell 72% year-over-year; cost of revenue also decreased to $145,000 from $474,632.

• Operating expenses rose to $10,265,829 in Q2 2025, up $2.1M from Q2 2024, driven by R&D and share-based compensation.

• For the six months, total expenses increased by $4.7M year-over-year, mainly due to R&D and a $1.25M contract settlement provision.

• Gain on derivative liability of $2,464,873 in Q2 2025 partially offset higher expenses.

• Cash and restricted cash at September 30, 2024, was $2.2M, up from $892,727 at March 31, 2024.

Outlook and guidance

• Management expects continued investment in Genius™ development and anticipates further capital raises to fund operations.

• The company is pursuing new contracts for Genius™ and expanding its beta program to more developers in 2024.

• Ongoing reliance on external financing and investor support is expected for the foreseeable future.