VISIUM TECHNOLOGIES, INC. The following discussion of our financial condition and results of operations should be read in conjunction with the financial statements and related notes included elsewhere in this report. Certain statements in this discussion and elsewhere in this report constitute forward-looking statements. See ''Cautionary Statement Regarding Forward Looking Information'' elsewhere in this report. Because this discussion involves risk and uncertainties, our actual results may differ materially from those anticipated in these forward-looking statements.
Overview
In
Plan of Operation
Visium operates in the traditional cyber security space, and provides solutions,
tools and services related to Security information and event management (SIEM).
Our TruContext technology provides visualization, advanced cyber monitoring
intelligence, data modeling, analytics and automation to help reduce risk,
simplify cyber security and deliver better security outcomes.
? through a virtual appliance model, primarily targeted to the Federal
government, charging a seat license
? through a SaaS model, charging a recurring monthly license fee for
TruContext; and
? through professional services to support and deliver cybersecurity solutions
and services to its customers
The Company has developed integration partnerships with larger established technology companies and is using these partnerships as part of its go-to-market strategy. In addition, the Company has partnered with value-added resellers that sell to the federal government and commercial markets. The Company is focused on digital risk management, cybersecurity solutions, and technology services for network physical security, the Cloud, and mobility solutions. We solve mission-critical problems.
Employees
As of
Third-Party Service Providers
We are heavily reliant on our technology and infrastructure to provide our products and services to our customers. For example, we host many of our products using third-party data center facilities, and we do not control the operation of these facilities. In addition, we rely on certain technology that we license from third parties, including third-party commercial software and open source software, which is used with certain of our solutions.
Governmental Regulation
We collect, use, store or disclose an increasingly high volume, variety, and velocity of personal information, including from employees and customers, in connection with the operation of our business. The personal information we process is subject to an increasing number of federal, state, local, and foreign laws regarding privacy and data security.
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Competition
The markets for our solutions are highly competitive, and we expect both the
requirements and pricing competition to increase, particularly given the
increasingly sophisticated attacks, changing customer preferences and
requirements, current economic pressures, and market consolidation. Competitive
pressures in these markets may result in price reductions, reduced margins, loss
of market share and inability to gain market share, and a decline in sales, any
one of which could seriously impact our business, financial condition, results
of operations, and cash flows. We may face competition due to changes in the
manner that organizations utilize IT assets and the security solutions applied
to them, such as the provision of privileged account security functionalities as
part of public cloud providers' infrastructure offerings, or cloud-based
identity management solutions. Limited IT budgets may also result in competition
with providers of other advanced threat protection solutions such as
Available Information
All reports of the Company filed with the
Our principal offices are located at
Our common stock is quoted on the OTC Pink under the symbol "VISM".
VISIUM TECHNOLOGIES, INC. RESULTS OF OPERATIONS
Discussion of Results for Three Month Period Ended
Increase/ Increase/
Three-month period ended (Decrease) (Decrease)
September 30, in $ 2021 in % 2021
2021 2020 vs 2020 vs 2020
Operating expenses:
Selling, general and
administrative $ 1,200,030 $ 193,196 $ 1,024,335 530.2 %
Development expense 110,413 95,000 15,413 16.2 %
Total operating expenses 1,310,443 288,196 1,039,748 360.8 %
Operating loss (1,310,443 ) (288,196 ) 1,039,748 360.8 %
Other expense:
Gain (loss) on change in
fair value of derivative
liabilities (18,908 ) 124,332 (143,240 ) (115.2 )%
Loss on extinguishment of
debt - (154,901 ) (114,487 ) 100.0 %
Interest expense (486,464 ) (26,908 ) (459,556 ) 1,707.9 %
(505,372 ) (57,477 (447,895 ) (779.3 )%
Net loss $ (1,815,815 ) (345,673 ) $ (1,487,643 ) 430.4 %
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Selling, General, and Administrative Expenses
For the three months ended
Three Months Ended
September 30, Increase/
2021 2020 Decrease % Change
Accounting expense $ 23,071 $ 22,950 $ 121 0.5 %
Consulting fees 7,500 - 7,500 100.0 %
Salaries 158,981 84,000 74,981 89.3 %
Legal and professional fees 267,530 10,500 257,030 2,447.9 %
Occupancy expense 567 - 567 100.0 %
Telephone expense 1,149 900 249 27.7 %
Website expense 6,498 651 5,847 898.2 %
Marketing Expense 1,156 - 1,156 100.0 %
Stock based consulting expense 367,273 27,000 340,273 1,260.3 %
Stock based compensation 345,000 45,000 300,000 1,185.0 %
Other 21,305 2,195 19,110 870.6 %
$ 1,200,030 $ 193,196 $ 1,006,834 521.1 %
The increase in selling, general and administrative expenses during fiscal Q1 of
2021, when compared with the prior year, is primarily due to an increase in
stock-based consulting expense of
We believe that our selling, general, and administrative expenses will decrease as the stock based consulting and compensation expenses and legal and professional expenses are not recurring expenses. Other expenses may increase as we increase our business activity over the remainder of fiscal 2022.
Development Expense
Three-Months Ended
September 30, %
2021 2020 Change
Development expense $ 110,413 $ 95,000 16.2 %
Development expense represents the expense of further enhancing and commercializing CyGraph. We believe that our development expense will continue at a lower expense rate for the remainder of fiscal 2021.
Interest Expense
Three-Months Ended
September 30, %
2021 2020 Change
Interest expense $ 486,464 $ 26,908 $ 1,707.9 %
Interest expense represents stated interest of notes and convertible notes
payable, along with the amortization of debt discount. The increase in interest
expense during the three-month period ended
Liquidity and Capital Resources
Balance at
September 30, June 30,
2021 2021
Cash $ 999,769 $ 125,166
Accounts payable and accrued expenses 443,032 425,804
Accrued compensation 732,529 672,529
Notes, convertible notes, and accrued interest
payable $ 1,268,523 $ 1,753,057 At
We do not have any material commitments for capital expenditures.
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The objective of liquidity management is to ensure that we have ready access to sufficient funds to meet commitments and effectively implement our growth strategy. Our primary sources are financing activities such as the issuance of notes payable and convertible notes payable. In the past, we have mostly relied on debt and equity financing to provide for our operating needs.
We cannot ascertain that we have sufficient funds from operations to fund our
ongoing operating requirements through
We intend to finance our operations using a mix of equity and debt financing. We
do not anticipate incurring capital expenditures for the foreseeable future. We
anticipate that we will need to raise approximately
Going Concern
The accompanying financial statements have been prepared on a going concern
basis. The Company has used net cash in its operating activities of
approximately
Three months ended
Net cash used in operations during the three months ended
Capital Raising Transactions
In
Other outstanding obligations at
Convertible Notes Payable
The Company had convertible promissory notes aggregating
Convertible notes payable to
On
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Notes Payable
The Company had promissory notes aggregating
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements.
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