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
Key Corporate Developments for the Quarter Ended
Securities Purchase Agreement and Promissory Notes
On
Securities Purchase Agreement and Promissory Note with
On
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,
2020 2019 2020 2019
Operating expenses:
Selling, general and administrative $168,515 $215,706 $361,711 $414,764
Development expense 10,994 - 105,994 35,500
Total Operating Expenses 179,509 215,706 467,705 450,264
Loss from Operations (179,509) (215,706) (467,705) (450,264)
Other income (expenses):
Gain (loss) on change in fair value of
derivative liabilities (673,826) 207,556 (549,494) 485,568
Derivative liability expense - (61,396) - (61,396)
Warrant exercise expense (211,411) - (211,411) -
Gain (loss) on extinguishment of debt (53,963) (58,407) (208,864) (98,821) Interest expense
(49,096) (98,794) (76,004) (199,275)
Total other income (expenses) (988,296) (11,041) (1,045,773) 126,076
Net loss $(1,167,805) $(226,747) $(1,513,478) $(324,188) Selling, General, and Administrative Expenses
Six Month Period Ended
For the six months ended
Six Months Ended
December 31,
2020 2019
Accounting expense $39,988 $29,734
Consulting fees 10,000 30,000
Salaries 168,000 168,000
Legal and professional fees 36,060 16,550
Travel expense 1,086 9,786
Occupancy expense 15 3,137
Telephone expense 1,800 1,800
Marketing expense 500 8,199
Website expense 1,563 1,531
Investor relations expense 10,000 20,000
Stock based compensation 84,000 121,000
Other 8,699 5,027
$361,711 $414,764 The decrease in selling, general and administrative expenses of
We believe that our selling, general, and administrative expenses will remain steady as we increase our business activity over the remainder of 2020, but anticipate incurring lower legal and consulting expenses.
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Development Expense
Six-Months Ended
December 31, %
2020 2019 Change
Development expense
Development expense represents the expense to further enhance and commercialize
CyGraph. We believe that we will incur an additional
Derivative Liability Expense
Six-Months Ended
December 31 , %
2020 2019 Change
Derivative liability expense $-
Derivative liability expense represents the expense related to our convertible
notes payable issued in
Change in Fair Value of Derivative Liabilities
Six-Months Ended
December 31, %
2020 2019 Change
Gain (loss) on change in fair value of derivative
liabilities $(549,494) $485,568 350.0%
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, %
2020 2019 Change
Interest expense
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
Gain (Loss) on Extinguishment of Debt
Six-Months Ended
December 31, %
2020 2019 Change
Loss on extinguishment of debt
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,
2020 2019
Accounting expense $17,038 $972
Consulting fees 10,000 5,750
Salaries 84,000 84,000
Legal and professional fees 25,560 9,490
Travel expense 1,086 1,002
Occupancy expense 15 1,706
Telephone expense 900 900
Marketing expense 500 (1,749
Website expense 912 871
Investor relations expense 10,000 20,000
Stock based compensation 12,000 92,000
Other 6,504 764
$168,511 $215,706 The decrease in selling, general and administrative expenses of
Change in Fair Value of Derivative Liabilities
Three-Months Ended
December 31, %
2020 2019 Change
Gain (loss) on change in fair value of derivative
liabilities $(673,826) $207,556 (425.6)%
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, %
2020 2019 Change
Interest expense
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, 2020 June 30, 2020
Cash $50,492 $30,251
Accounts payable and accrued expenses 387,890 333,805
Accrued compensation 789,029 652,529
Notes, convertible notes, and accrued interest payable
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
Issuance of promissory notes payable
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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