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
Employees
At
Our principal offices are located at
Our common stock is quoted on the OTC Pink under the symbol "VISM".
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VISIUM TECHNOLOGIES, INC.
RESULTS OF OPERATIONS
Three and Six Month Periods Ended
Three Months Ended Six Months Ended
December 31, December 31,
2021 2020 2021 2020
Operating expenses:
Selling, general and
administrative $ 1,264,592 $ 168,511 $ 2,464,629 $ 361,707
Development expense 85,912 10,994 196,325 105,994
Total Operating Expenses 1,350,504 179,505 2,660,954 467,701
Loss from Operations (1,350,504 ) (179,505 ) (2,660,954 ) (467,701 )
Other income (expenses):
Gain (loss) on change in
fair value of derivative
liabilities 75,253 (673,826 56,345 (549,494
Warrant exercise expense - (211,411 - (211,411
Gain (loss) on
extinguishment of debt - (53,963 ) - (208,864 )
Interest expense (15,211 ) (49,096 ) (501,675 ) (76,004 )
Total other income
(expenses) 60,042 (988,296 ) (445,330 ) (1,045,773
Net loss $ (1,290,462 ) $ (1,167,801 ) $ (3,106,284 ) $ (1,513,474 ) Selling, General, and Administrative Expenses
Six Month Period Ended
For the six months ended
Six Months Ended
December 31,
2021 2020
Accounting expense $ 36,045 $ 39,988
Consulting fees 8,850 10,000
Salaries 437,145 168,000
Legal and professional fees 278,030 36,060
Travel expense 34 1,086
Occupancy expense 378 15
Telephone expense 2,102 1,800
Marketing expense 3,379 500
Website expense 19,496 1,563
Investor relations expense - 10,000Stock based consulting expense 786,380 39,000 Stock based compensation expense 842,000 45,000 Other
50,790 8,695
$ 2,464,629 $ 361,707 The increase in selling, general and administrative expenses of
We believe that our selling, general, and administrative expenses will decline over the rest of the current fiscal year due to lower stock based compensation expense, offset by increased expenses related to an increase our business activity over the remainder of fiscal 2022.
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Development Expense
Six-Months Ended
December 31, %
2021 2020 Change
Development expense $ 196,325 $ 105,994 85 %
Development expense represents the expense to further enhance and commercialize
CyGraph. We believe that we will incur an additional
Change in Fair Value of Derivative Liabilities
Six-Months Ended
December 31, %
2021 2020 Change
Gain (loss) on change in fair value of derivative (487%)
liabilities $ 56,345 $ (549,494 ) The change in fair value of derivative liabilities results from the changes in the fair value of the derivative liability due to the application of ASC 815, resulting in either income or expense, depending on the difference in fair value of the derivative liabilities between their measurement dates driven by the change in the per share price of the Company's common stock.
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Interest Expense
Six-Months Ended
December 31, %
2021 2020 Change
Interest expense $ 501,675 $ 76,004 1,708 %
Interest expense represents stated interest of notes and convertible notes
payable as well as amortization of debt discount. Interest expense is lower for
the six months ended
Warrant exercise expense
Six-Months Ended
December 31, %
2021 2020 ChangeWarrant exercise expense $ -$ (211,411 ) N/A
The loss on settlement of debt is related to the difference between the conversion price used when convertible notes are converted into common and the share price on the date of the conversion.
Three Month Period Ended
For the three months ended
Three Months Ended
December 31,
2021 2020
Accounting expense $ 12,974 $ 17,038
Consulting fees 1,350 10,000
Salaries 278,161 84,000
Legal and professional fees 10,500 25,560
Travel expense 34 1,086
Occupancy expense (189 ) 15
Telephone expense 953 900
Marketing expense 2,223 500
Website expense 12,998 912
Investor relations expense - 10,000Stock based consulting expense 419,107 12,000 Stock based compensation expense 497,000
-
Other 29,481 6,500
$ 1,264,592 $ 168,511 The increase in selling, general and administrative expenses of
Development Expense
Three-Months Ended
December 31, %
2021 2020 Change
Development expense
Change in Fair Value of Derivative Liabilities
Three-Months Ended
December 31, %
2021 2020 Change
Gain (loss) on change in fair value of
derivative liabilities $ 75,253 $ (673,826 ) (111 )%
The change in fair value of derivative liabilities results from the changes in the fair value of the derivative liability due to the application of ASC 815, resulting in either income or expense, depending on the difference in fair value of the derivative liabilities between their measurement dates driven by the change in the per share price of the Company's common stock.
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Interest Expense
Three-Months Ended
December 31, %
2021 2020 Change
Interest expense $ 15,211 $ 49,096 69 )%
Interest expense represents stated interest of notes and convertible notes
payable as well as amortization of debt discount. Interest expense is lower for
the three months ended
Liquidity and Capital Resources
Balance at
December 31, June 30,
2021 2021
Cash $ 361,560 $ 125,166
Accounts payable and accrued expenses (576,153 ) (425,804 )
Accrued compensation (682,529 ) (672,529 )
Notes, convertible notes, and accrued interest
payable $ (1,039,304 ) $ (1,735,057 ) We do not have any material commitments for capital expenditures.
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
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Six months ended
Net cash used in operations during the six months ended
Six months ended
Net cash used in operations during the six months ended
Capital Raising Transactions Sale of Common Stock
We generated net proceeds of
Other outstanding obligations at
Convertible Notes Payable
The Company had convertible promissory notes aggregating
Convertible notes payable to
On
Notes Payable
The Company had promissory notes aggregating
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Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements.
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