Versus Systems Inc. Files Q2 2024 10-Q Report

TL;DR

VS: Q2 10-Q filed. Financials and ops update for period ending June 30, 2024.

AI Summary

Versus Systems Inc. filed its quarterly report on Form 10-Q for the period ended June 30, 2024. The company, incorporated in British Columbia, operates in the computer processing and data preparation sector. Its principal executive offices are located in Vancouver, Canada.

Why It Matters

This filing provides investors with an update on Versus Systems Inc.'s financial performance and operational status for the second quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial and operational information.

Key Players & Entities

• Versus Systems Inc. (company) — Registrant
• June 30, 2024 (date) — Quarterly period end date
• 001-39885 (other) — Commission File Number
• Vancouver, BC (location) — Principal executive office location

FAQ

Filing Documents

• ea0210880-10q_versus.htm (10-Q) — 889KB
• ea021088001ex31-1_versus.htm (EX-31.1) — 11KB
• ea021088001ex31-2_versus.htm (EX-31.2) — 12KB
• ea021088001ex32-1_versus.htm (EX-32.1) — 4KB
• ea021088001ex32-2_versus.htm (EX-32.2) — 5KB
• image_001.jpg (GRAPHIC) — 5KB
• 0001213900-24-068862.txt ( ) — 5290KB
• vs-20240630.xsd (EX-101.SCH) — 54KB
• vs-20240630_cal.xml (EX-101.CAL) — 30KB
• vs-20240630_def.xml (EX-101.DEF) — 232KB
• vs-20240630_lab.xml (EX-101.LAB) — 415KB
• vs-20240630_pre.xml (EX-101.PRE) — 238KB
• ea0210880-10q_versus_htm.xml (XML) — 663KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1 Condensed Interim Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 1 Condensed Interim Consolidated Statements of Operations and Comprehensive Loss for the three and six months ended June 30, 2024 and 2023. 2 Condensed Interim Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2024 and 2023. 3 Condensed Interim Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023. 4 Notes to the Condensed Interim Unaudited Consolidated Financial Statements 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 32 Item 4.

Controls and Procedures

Controls and Procedures 32 PART II OTHER INFORMATION 33 Item 1.

Legal Proceedings

Legal Proceedings 33 Item 1A.

Risk Factors

Risk Factors 33 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 33 Item 3. Default Upon Senior Securities 33 Item 4. Mine Safety Disclosures 33 Item 5. Other Information 33 Item 6. Exhibits 34

Signatures

Signatures 35 i PART I. FINANCIAL INFORMATION

: Financial Statements

Item 1: Financial Statements Versus Systems Inc. Condensed Interim Consolidated Balance Sheets (Expressed in US Dollars) June 30 December 31, 2024 2023 ($) ($) ASSETS (Unaudited) Current assets Cash 905,915 4,689,007 Receivables, net of allowance (Note 4) 10,250 18,222 Prepaids 913,658 160,474 Total current assets 1,829,823 4,867,703 Restricted deposit (Note 5) - 8,679 Property and equipment, net (Note 6) 878 1,935 Total assets 1,830,701 4,878,317 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities (Note 9, Note 10 and Note 12) 23,606 286,427 Deferred revenue 9,331 35,049 Total liabilities 32,937 321,476 Stockholders' equity Share capital (Note 11) Common stock and additional paid in capital, no par value. Unlimited authorized shares; 2,506,015 common shares and no Class A shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively 147,290,988 147,130,123 Accumulated other comprehensive income 329,770 248,287 Accumulated deficit ( 138,105,958 ) ( 135,434,022 ) 9,514,800 11,944,388 Non-controlling interest (Note 7) ( 7,717,036 ) ( 7,387,547 ) Total stockholders' equity 1,797,764 4,556,841 Total liabilities and stockholders' equity 1,830,701 4,878,317 The accompanying notes are an integral part of these condensed interim consolidated financial statements. 1 Versus Systems Inc. Consolidated (Expressed in US Dollars, except share and per share amounts) Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 ($) ($) ($) ($) REVENUES Revenues 26,937 56,053 53,440 214,003 Cost of revenues 16,231 23,570 40,277 55,927 Gross margin 10,706 32,483 13,163 158,076 EXPENSES Research and development 67,203 717,667 106,615 784,807 Selling, general and administrative 1,443,171 1,625,471 2,907,6

financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP)

financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). Basis of measurement These condensed interim consolidated financial statements have been prepared on a historical cost basis, except for financial instruments classified as financial instruments at fair value. In addition, these condensed interim consolidated financial statements have been prepared using the accrual basis of accounting. Functional and presentation currency These condensed interim consolidated financial statements are presented in United States dollars, unless otherwise noted, which is the functional currency of the Company and its subsidiaries. Basis of consolidation These condensed interim consolidated financial statements include the accounts of Versus Systems Inc. and its subsidiaries, from the date control was acquired. Control exists when the Company possesses power over an investee, has exposure to variable returns from the investee and has the ability to use its power over the investee to affect its returns. All inter-company balances and transactions, and any unrealized income and expenses arising from inter-company transactions, are eliminated on consolidation. For partially owned subsidiaries, the interest attributable to non-controlling shareholders is reflected in non-controlling interest. Adjustments to non-controlling interest are accounted for as transactions with Name of Subsidiary Place of Incorporation Proportion of Versus Systems (Holdco) Inc. United States of America 81.9 % Holding Company Versus Systems UK, Ltd. United Kingdom 81.9 % Sales Company Versus LLC United States of America 81.9 % Technology Company Xcite Interactive, Inc. United States of America 100.0 % Technology Company Use of estimates The preparation of these

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