SCWorx Corp. reported a decline in financial performance for the second quarter of 2025, with revenues of $682,632, down from $742,027 in the same period last year. For the first half of 2025, total revenue was $1,402,931, compared to $1,554,126 in the first half of 2024. The decrease in revenue is attributed to the expiration and non-renewal of certain customer contracts. The company's gross profit for the second quarter was $180,417, down from $246,326 in the prior year, while the net loss widened to $1,906,085 from $337,313 in the same quarter of 2024. For the six months ended June 30, 2025, the net loss was $2,382,388, compared to $515,972 for the same period in 2024.
In terms of operational changes, SCWorx's total operating expenses decreased to $473,944 in the second quarter of 2025 from $553,473 in the same quarter of 2024, primarily due to a reduction in legal and professional fees. However, the company experienced a significant increase in other expenses, which totaled $1,612,558 for the second quarter, largely due to non-cash interest expenses and amortization of debt discounts. The company’s accumulated deficit increased to $33,358,454 as of June 30, 2025.
SCWorx's balance sheet showed improvements in liquidity, with cash increasing to $340,209 from $106,654 at the end of 2024. Accounts receivable also rose to $412,216 from $372,716. Total current liabilities decreased significantly to $1,187,640 from $1,836,549, reflecting a reduction in accounts payable and accrued liabilities. The company’s total assets increased to $6,645,933 from $6,345,811, driven by the issuance of common stock for legal settlements and the conversion of convertible loans.
Looking ahead, SCWorx faces challenges in achieving profitability, as indicated by management's caution regarding its ability to continue as a going concern. The company has incurred recurring losses and may need to generate significant increases in product revenues to sustain operations. Additionally, SCWorx is under scrutiny from Nasdaq for failing to meet the minimum bid price requirement, which could lead to delisting if compliance is not regained by October 2025. The company is monitoring its stock price and may consider a reverse stock split if necessary to meet Nasdaq's requirements.
About SCWorx Corp.
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