Verses AI Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending December 31, 2025. The company generated revenue of $417,932 for the quarter, a notable increase from zero revenue in the same quarter of the previous year. For the nine-month period, total revenue reached $818,632, compared to $155,000 in the prior year, marking a 428% increase. The cost of revenue for the quarter was $292,552, resulting in a gross profit of $125,380, while the nine-month gross profit was $271,529, reflecting a substantial improvement from the previous year's $10,000.
The company’s operating expenses decreased significantly, totaling $5,534,743 for the quarter, down 58% from $13,259,580 in the prior year. This reduction was primarily driven by a decrease in non-cash expenses related to share-based payments, which fell from $6.89 million to a gain of $53,805. The net loss for the quarter was $5,476,661, a 67% improvement compared to a loss of $16,811,050 in the same quarter last year. For the nine-month period, the net loss was $24,982,562, down 27% from $34,274,476 in the previous year.
In terms of strategic developments, Verses AI launched its flagship product, the Genius platform, in April 2025, which is designed to enhance decision-making through its proprietary Active Inference technology. The company has adopted a targeted "Lighthouse" strategy to license Genius to financial institutions managing over $100 million in assets. This strategic focus aims to leverage the platform's capabilities to improve investment performance and risk management for institutional clients.
Operationally, Verses AI reported a working capital deficit of $13,197,759 as of December 31, 2025, compared to $8,868,756 at the end of the previous fiscal year. The company’s cash reserves decreased significantly to $67,954 from $4,816,906, reflecting ongoing investments in research and development, which accounted for a substantial portion of total cash expenses. The company’s headcount and user engagement metrics were not disclosed in the filing, but the focus on expanding its customer base and product adoption remains a priority.
Looking ahead, Verses AI's ability to continue operations is contingent upon securing additional financing and generating sufficient revenue to cover its operating costs. The company has expressed uncertainty regarding its ability to raise capital in the future, which raises substantial doubt about its ability to continue as a going concern. Management plans to monitor cash flow closely and explore various financing options to support its ongoing development and operational needs.
About Verses AI Inc.
Verses AI Inc. develops advanced cognitive computing and AI software platforms, notably Genius, for enterprise decision-making and prediction. Leveraging neuroscience-inspired active inference, the company offers AI agents, model editors, and APIs targeting industries like finance, smart cities, and manufacturing. Its competitive edge lies in explainability, efficiency, and interoperability, serving data scientists and developers with SaaS solutions to enhance AI reliability and adaptability in high-stakes environments.
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