VISIUM TECHNOLOGIES, INC. SEC 10-K Report

Sep 30, 202421:18 UTC

Visium Technologies, Inc., a provider of IT infrastructure professional services including network engineering, system engineering, converged infrastructure deployment, software development, and cybersecurity services, has released its 2023 10-K report. The report outlines the company's financial performance, business operations, strategic initiatives, and the challenges it faces in the current market environment.

Financial Highlights

Revenues: $0 million. The company did not report any revenues for the years ended June 30, 2024, and 2023.
Operating Expenses: $2.59 million. Total operating expenses for the year ended June 30, 2024, were $2,588,477 compared to $2,413,604 for the year ended June 30, 2023, an increase primarily due to higher selling, general, and administrative expenses.
Loss from Operations: $2.59 million. The company reported a loss from operations of $2,588,477 for the year ended June 30, 2024, compared to $2,413,604 for the year ended June 30, 2023.
Net Loss: $2.88 million. The company reported a net loss of $2,878,090 for the year ended June 30, 2024, compared to $3,310,848 for the year ended June 30, 2023.
Net Loss Per Common Share – Basic and Diluted: $0.03. The net loss per common share for the year ended June 30, 2024, was $0.03 compared to $0.55 for the year ended June 30, 2023.

Business Highlights

Company Overview: Visium Technologies, Inc. provides IT infrastructure professional services, including network engineering, system engineering, converged infrastructure deployment, software development, and cybersecurity services. The company has undergone several name changes and mergers since its incorporation in 1987, with the most recent name change to Visium Technologies, Inc. in March 2018.
Proprietary Technology: Visium's proprietary cybersecurity visualization, big data analytics, and automation platform, TruContextTM, is based on a licensed technology from MITRE Corporation known as CyGraph. TruContextTM provides advanced analytics for cybersecurity situational awareness and is designed to be scalable, flexible, and comprehensive.
Product Development: Significant proprietary product development efforts have been made to commercialize TruContextTM, including making it a native cloud application, adding multi-user and multi-tenant capability, enhancing the graphical user interface, and adding enhanced dashboard and reporting capabilities.
New Contract: In November 2023, Visium secured a contract valued at over $20 million from Cybastion Institute of Technology to oversee the design and construction of data centers in the Republic of Côte d’Ivoire and the Republic of Benin. The scope of work includes data center architecture and design, power civil engineering, controls and distribution systems, rack layouts, network topology, vendor high availability, and a comprehensive security stack solution incorporating TruContextTM.
Operational Focus: Visium is entering the digital transformation and data center design and construction market, leveraging its expertise in cybersecurity and IT infrastructure to deliver comprehensive solutions.
TruContextTM Capabilities: The TruContextTM platform provides visualization, advanced cyber monitoring intelligence, threat hunting, forensic and root cause analysis, data modeling, analytics, and automation. It helps reduce risk, simplify security, and deliver better security outcomes by providing real-time comprehensive visualized information on security events.
Use Cases: TruContextTM can be deployed in various use cases such as cybersecurity threat intelligence and forensics, IT/OT critical infrastructure security, supply chain analytics, anti-fraud, law enforcement, compliance, and healthcare.
Productivity Enhancement: TruContextTM enhances the productivity of cyber analysts by eliminating false positives, prioritizing threat events, and providing a no-code user interface for combining, layering, filtering, and querying data.
Partnership Ecosystem: Visium collaborates with technology alliance partners to design go-to-market strategies that combine its platform with products or services provided by partners, focusing on security analytics, network and infrastructure security, threat platforms, and orchestration and automation.
Employee Count: As of September 30, 2024, Visium had 5 full-time employees.
Recent Developments: On July 25, 2024, the company received resignations from three members of its Board of Directors, which were not due to any disagreements with the company.
Future Outlook: Visium plans to generate revenue through a virtual appliance model targeted at the Federal government, a SaaS model charging a recurring monthly license fee, and professional services to support and deliver IT infrastructure and cybersecurity solutions.

Strategic Initiatives

Strategic Focus: Visium Technologies, Inc. has focused on creating a world-class cybersecurity/digital risk management company, with a focus on network security, threat visualization, pinpoint threat identification, and big-data analytics. In March 2019, the company entered into a software license agreement with MITRE Corporation to license a patented technology known as Cygraph, which has been rebranded as TruContextTM.
Market Expansion: The company is entering the digital transformation and data center design and construction market after landing a contract in November 2023 valued at over $20 million from its partner, Cybastion Institute of Technology, to oversee the design and construction of data centers in the Republic of Côte d’Ivoire and the Republic of Benin.
Capital Management: Visium Technologies, Inc. has primarily relied on debt and equity financing to meet its capital requirements. During the fiscal year ended June 30, 2024, the company issued convertible notes payable, generating net proceeds of $122,960, and short-term notes payable, generating net proceeds of $465,000. The company also issued 85,586,379 shares of its common stock related to the conversion of $723,784 of principal and accrued interest of its convertible notes payable. Additionally, the company issued 24,742,499 shares of its common stock to consultants and 12,820,000 shares to employees as compensation for services rendered. The company did not repurchase any of its common stock during the year ended June 30, 2024.
Future Outlook: Visium Technologies, Inc. plans to continue financing its operations using equity financing and does not anticipate incurring capital expenditures for the foreseeable future. The company anticipates needing to raise approximately $180,000 per year in the near term to finance the recurring costs of being a publicly traded company. Management plans to provide for the company’s capital requirements by continuing to issue additional equity and debt securities. The company will also continue to seek possible acquisition targets to enhance its growth strategy.

Challenges and Risks

Going Concern: Management and independent auditors have raised substantial doubts about the company's ability to continue as a going concern due to recurring net losses and an accumulated deficit of approximately $62.7 million as of June 30, 2024.
Key Personnel: The company's future performance depends on the continued engagement of key members of its management team. The failure to secure the continued services of these or other key personnel could have a material adverse effect on the business.
Working Capital Deficit: Visium currently has a working capital deficit of approximately $5.15 million as of June 30, 2024, and negative cash flow from operations of approximately $488,300 for the year ended June 30, 2024.
Debt Obligations: The company had $1,852,431 of convertible notes, notes payable, and accrued interest payable as of June 30, 2024, of which $1,344,042 is past due. The company does not have the funds necessary to pay these obligations.
Net Operating Loss Carryover: In the event of a transaction with a profitable company, Visium may not be able to utilize its net operating loss carryover, which could negatively impact the value of the investment.
Economic Conditions: General economic conditions and rapid technological advances may affect the company's ability to obtain financing and complete mergers or acquisitions.
COVID-19 Impact: The full extent and duration of the impact of COVID-19 on the company’s operations and financial performance is currently unknown and depends on future developments.
Common Stock Risks: Various factors related to the company's common stock, including dilution, limited liquidity, and penny stock regulations, may adversely affect shareholders.
Cybersecurity Risks: Any significant cybersecurity incident or disruption of information technology systems could materially damage user relationships and subject the company to significant reputational, financial, legal, and operational consequences.
Internal Control Weakness: The company has identified a material weakness in its internal control over financial reporting, which could adversely affect its ability to report results accurately and in a timely manner.
Global Business Risks: The company is exposed to various risks of international operations, including inflation, changes in laws, exchange controls, inadequate infrastructure, and political instability.

SEC Filing: VISIUM TECHNOLOGIES, INC. [ VISM ] - 10-K - Sep. 30, 2024