Tue, Jan 14, 11:01 AM (34 days ago)
For the quarter ending September 30, 2024, Veritec, Inc. (VRTC) reported a significant decline in revenue, totaling $39,000, down 32.8% from $58,000 in Q3 2023. Mobile banking technology revenue remained stable at $21,000, while management fee revenue from a related party fell sharply by 51.4% to $18,000. Operating expenses increased to $280,000 from $233,000, primarily due to higher selling and administrative costs. The net loss widened to $390,000 from $306,000 year-over-year. Cash flow from operations was negative at $152,000, with a cash balance of $64,000 as of September 30, 2024, down from $118,000 at the prior quarter end. The company faces liquidity challenges, evidenced by a stockholders’ deficit of $10,118,000 and overdue convertible notes totaling $802,000. Concerns about the company's ability to continue as a going concern are heightened, as it relies heavily on external funding and related party transactions for financial support. The company plans to pursue additional investments and cost reductions to stabilize its financial position.