Visium Tech Swings to Loss Amid Zero Revenue, Dwindling Cash

TL;DR

**VISM is a cash-strapped, zero-revenue cybersecurity firm with a 'going concern' warning; steer clear until they prove they can actually make money.**

AI Summary

VISIUM TECHNOLOGIES, INC. (VISM) reported a net loss of $444,703 for the three months ended September 30, 2025, a significant decline from the net income of $326,616 in the same period of 2024. The company generated no net revenues in either period. Operating expenses remained relatively stable at $369,623 in Q3 2025 compared to $370,466 in Q3 2024. A key factor in the shift to net loss was the absence of a 'Gain on extinguishment of debt,' which was $725,059 in Q3 2024 but $0 in Q3 2025. Interest expense increased by 43.6% to $77,675 from $54,088 year-over-year. The company's cash position drastically decreased from $60,144 at June 30, 2025, to $2,986 at September 30, 2025, and it reported negative working capital of $6,038,768. VISM continues to operate on a going concern basis, relying on future equity and debt financing, with no activity yet on its $20 million data center contract from November 2023.

Why It Matters

This filing reveals VISM's precarious financial health, with zero revenue, a substantial net loss, and critically low cash reserves. For investors, the 'going concern' warning and reliance on future financing signal high risk, especially given the lack of progress on the $20 million Cybastion contract. Employees might face job insecurity if the company cannot secure funding or generate revenue. Customers, particularly those anticipating the TruContext™ cybersecurity platform or data center services, should be wary of potential delays or non-delivery. In the competitive cybersecurity and IT infrastructure market, VISM's inability to execute on contracts and generate revenue puts it at a severe disadvantage against better-capitalized rivals.

Risk Assessment

Risk Level: high — The company reported a net loss of $444,703 for the three months ended September 30, 2025, and had net cash used in operating activities of $163,712. Its cash balance plummeted to $2,986 from $60,144 in just three months, and it has negative working capital of $6,038,768, raising substantial doubt about its ability to continue as a going concern.

Analyst Insight

Investors should exercise extreme caution and consider avoiding VISM stock. The company's 'going concern' warning, zero revenue, and rapidly depleting cash indicate severe operational and financial distress. Wait for concrete evidence of revenue generation and successful execution of its $20 million contract before considering any investment.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$8,611

total Debt

N/A

net Income

($444,703)

eps

N/A

gross Margin

N/A

cash Position

$2,986

revenue Growth

N/A

Key Numbers

• $444,703 — Net Loss (for the three months ended September 30, 2025, compared to net income of $326,616 in Q3 2024)
• $0 — Net Revenues (for the three months ended September 30, 2025 and 2024)
• $2,986 — Cash at End of Period (as of September 30, 2025, down from $60,144 at June 30, 2025)
• $6,038,768 — Negative Working Capital (as of September 30, 2025)
• $163,712 — Net Cash Used in Operating Activities (for the three months ended September 30, 2025)
• $20,000,000 — Data Center Contract Value (from Cybastion Institute of Technology, with no activity as of September 30, 2025)
• 417,544,861 — Common Shares Outstanding (as of November 19, 2025)
• $77,675 — Interest Expense (for the three months ended September 30, 2025, up from $54,088 in Q3 2024)

Key Players & Entities

• VISIUM TECHNOLOGIES, INC. (company) — registrant
• Cybastion Institute of Technology (company) — partner for $20 million contract
• JAJ Advisory, LLC (company) — subsidiary with no activity
• TruContext™ (company) — proprietary cybersecurity platform
• Republic of Cte d'Ivoire (country) — location of data center contract
• Republic of Benin (country) — location of data center contract
• SEC (regulator) — Securities and Exchange Commission

FAQ

Risk Factors

• Severe Cash Burn and Going Concern Uncertainty [high — financial]: The company's cash position has plummeted from $60,144 on June 30, 2025, to $2,986 on September 30, 2025. This severe liquidity crunch, coupled with negative working capital of $6,038,768, highlights a critical going concern issue. The company's ability to continue operations is contingent on securing future equity and debt financing.
• Lack of Revenue Generation [high — operational]: VISM reported zero net revenues for the three months ended September 30, 2025, and 2024. This persistent lack of revenue generation is a fundamental business risk, indicating a failure to monetize its operations or secure any commercial traction.
• Unrealized Data Center Contract [high — operational]: Despite a $20 million data center contract announced in November 2023, there has been no reported activity as of September 30, 2025. This suggests significant execution risk or potential non-commencement of a major revenue-generating project.
• Increasing Interest Expense [medium — financial]: Interest expense increased by 43.6% to $77,675 for the three months ended September 30, 2025, from $54,088 in the prior year period. This rise in borrowing costs, especially with a precarious cash situation, adds financial strain.
• Significant Stockholder Deficit [medium — financial]: The company has a substantial accumulated deficit of $64,534,173 as of September 30, 2025, resulting in a total stockholders' deficit of $6,038,768. This indicates a long history of unprofitability and erosion of shareholder equity.

Industry Context

VISIUM TECHNOLOGIES, INC. operates in a highly competitive technology sector where innovation and revenue generation are paramount. The company's current financial distress, characterized by zero revenue and a severe cash crunch, places it at a significant disadvantage against competitors who are likely generating substantial revenue and have stronger financial footing. The lack of progress on its announced data center contract further isolates it within an industry that demands tangible results and market traction.

Regulatory Implications

The company's ongoing reliance on external financing and its precarious cash position could attract scrutiny from regulatory bodies if it fails to meet disclosure requirements or if its financial instability poses systemic risks. The lack of revenue and significant accumulated deficit also raise questions about the sustainability of its business model under current regulatory frameworks for publicly traded companies.

What Investors Should Do

1. Avoid investment due to extreme financial distress.
2. Monitor for any signs of revenue generation or contract execution.
3. Assess the feasibility of future financing rounds.

Key Dates

• 2025-09-30: End of Q3 2025 — Reported net loss of $444,703, zero revenue, and a drastic decrease in cash to $2,986, with negative working capital of $6,038,768.
• 2025-06-30: End of Q2 2025 — Cash balance was $60,144, indicating a significant cash burn in the subsequent quarter.
• 2024-09-30: End of Q3 2024 — Reported net income of $326,616, driven by a $725,059 gain on extinguishment of debt, and zero revenue.
• 2023-11-01: Announcement of $20 million data center contract — This significant contract has shown no activity as of the reporting date, raising concerns about its realization.

Glossary

Accumulated deficit

The total net losses of a company since its inception, minus any net income. (Indicates the company's long-term unprofitability, with a deficit of $64,534,173 as of September 30, 2025.)

Working capital

The difference between a company's current assets and current liabilities. Positive working capital indicates a company can meet its short-term obligations. (VISM has negative working capital of $6,038,768 as of September 30, 2025, signaling potential short-term liquidity issues.)

Going concern

An assumption that a company will continue to operate for the foreseeable future, typically at least 12 months. (VISM is operating on a going concern basis, heavily reliant on future financing due to its precarious financial state.)

Gain on extinguishment of debt

A profit recognized when a company repays debt for less than its carrying amount. (This was a significant one-time gain of $725,059 in Q3 2024, the absence of which contributed to the net loss in Q3 2025.)

Derivative liabilities

Financial instruments whose value is derived from an underlying asset, group of assets, or benchmark. These can introduce volatility. (The company has derivative liabilities, and the fair value changes contributed to other income/expenses, though the gain decreased significantly year-over-year.)

Year-Over-Year Comparison

Compared to the third quarter of 2024, VISIUM TECHNOLOGIES, INC. has experienced a significant deterioration in its financial performance. While both periods reported zero net revenues, the company swung from a net income of $326,616 to a net loss of $444,703. This shift was primarily due to the absence of a $725,059 gain on extinguishment of debt in the current period. Furthermore, cash reserves have drastically depleted from $60,144 to $2,986, and interest expenses have risen by 43.6%, exacerbating the company's financial precariousness.

Key Financial Figures

• $0.0001 — nding of the registrant's Common Stock, $0.0001 par value per share, as of November 19,
• $0.001 — TED) Preferred Stock - Series A $0.001 Par Value Preferred Stock - Ser

Filing Documents

• vism_10q.htm (10-Q) — 781KB
• vism_ex311.htm (EX-31.1) — 7KB
• vism_ex312.htm (EX-31.2) — 7KB
• vism_ex321.htm (EX-32.1) — 4KB
• vism_ex322.htm (EX-32.2) — 4KB
• vism_10qimg1.jpg (GRAPHIC) — 6KB
• 0001654954-25-013301.txt ( ) — 4311KB
• vism-20250930.xsd (EX-101.SCH) — 52KB
• vism-20250930_lab.xml (EX-101.LAB) — 287KB
• vism-20250930_cal.xml (EX-101.CAL) — 39KB
• vism-20250930_pre.xml (EX-101.PRE) — 244KB
• vism-20250930_def.xml (EX-101.DEF) — 129KB
• vism_10q_htm.xml (XML) — 627KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 3

Financial Statements

Item 1. Financial Statements 3 Consolidated Balance Sheets – September 30, 2025 (unaudited) and June 30, 2025 3 Consolidated Statements of Operations - Three Months ended September 30, 2025 and 2024 (unaudited) 4 Consolidated Statements of Changes in Stockholders' Deficit (unaudited) - Three Months ended September 30, 2025 and 2024 5 Consolidated Statements of Cash Flows - Three Months Ended September 30, 2025 and 2024 (unaudited) 7 Notes to Unaudited Consolidated Financial Statements – September 30, 2025 8

Management's Discussion and Analysis and Results of Operations

Item 2. Management's Discussion and Analysis and Results of Operations 19

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 24

Controls and Procedures

Item 4. Controls and Procedures 24

- OTHER INFORMATION

PART II - OTHER INFORMATION 25

Legal Proceedings

Item 1. Legal Proceedings. 25

Risk Factors

Item 1A. Risk Factors. 25

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 25

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities. 25

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. 25

Other Information

Item 5. Other Information. 25

Exhibits

Item 6. Exhibits 26

SIGNATURES

SIGNATURES 27 2 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements VISIUM TECHNOLOGIES, INC. CONSOLIDATED BALANCE SHEETS September 30, 2025 June 30, 2025(1) (Unaudited) ASSETS Current assets: Cash $ 2,986 $ 60,144 Prepaid expenses 5,625 7,500 Total current assets 8,611 67,644 Total assets $ 8,611 $ 67,644 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable and accrued expenses $ 1,482,932 $ 1,472,933 Accrued compensation 2,649,679 2,556,428 Accrued interest 328,244 418,044 Due to officer 277,359 277,859 Convertible notes payable 179,132 183,873 Derivative liabilities 5,210 7,805 Notes payable, net of discount of $ 26,154 and $ 27,126 , respectively 1,124,823 991,567 Total current liabilities 6,047,379 5,908,509 Commitments and contingencies (Note 11) - - Stockholders' deficit: Preferred stock Series A Convertible Stock ($ 0.001 par value; 50,000,000 shares authorized, 13,992,340 shares issued and outstanding as of September 30, 2025 and June 30, 2025, respectively) 13,992 13,992 Series B Convertible Stock ($ 0.001 par value 30,000,000 shares authorized, 1,327,670 shares issued and outstanding as of as of September 30, 2025 and June 30, 2025, respectively) 1,328 1,328 Series C Convertible Stock ($ 0.001 par value 30,000 shares authorized, 0 shares issued and outstanding as September 30, 2025 and June 30, 2025, respectively) - - Series AA Convertible Stock ($ 0.001 par value; 1 share authorized, 1 share issued and outstanding as of September 30, 2025 and June 30, 2025, respectively) - - Common stock, $ 0.0001 par value, 3,000,000,000 shares authorized: 417,544,861 shares issued and outstanding at September 30, 2025, and 368,544,861 shares issued and outstanding at June 30, 2025, respectively (See Note 6) 41,756 36,856 Additional paid in capital 58,438,329 58,196,428 Accumulated deficit ( 64,534,173 ) ( 64,089,470 ) Total stockholders' deficit ( 6,038,768 ) (

View Full Filing

View this 10-Q filing on SEC EDGAR