VNUE, Inc. Reports Significant Financial Challenges, Net Loss of $1.3M in Latest Quarter

VNUE, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decline in revenue, with net revenue for the three months at $57,670, down from $196,522 in the same period of 2023. For the nine months ended September 30, 2024, total revenue was $251,796, compared to $428,552 in the prior year. This decrease is attributed to reduced performance at its subsidiary, Stage It, and a lack of touring by the band Matchbox Twenty.

Gross profit for the third quarter was $30,999, a decrease from $52,942 in the previous year. Operating expenses surged to $1,321,752, up from $300,132 in Q3 2023, primarily due to a litigation judgment expense of $1,306,775. Consequently, the operating loss for the quarter was $(1,290,753), compared to $(247,190) in Q3 2023. The net loss for the quarter was $(1,314,551), significantly higher than the $(305,525) reported in the same quarter last year. For the nine-month period, the net loss was $(1,778,912), compared to $(1,124,028) in 2023.

As of September 30, 2024, VNUE's cash position had deteriorated to $3,416, down from $25,430 at the end of 2023. The company reported total current liabilities of $7,680,710, an increase from $6,607,437 at the end of the previous fiscal year, resulting in a total stockholders’ deficit of $(7,677,295). The accumulated deficit reached $(40,222,569).

The company has raised concerns about its ability to continue as a going concern, citing a lack of commitments for additional capital and the need to raise funds to implement its business plan. VNUE has historically funded operations through private offerings and loans, but it can no longer utilize its equity line of credit due to a settlement, pending re-audits mandated by the SEC.

Strategically, VNUE continues to focus on its technology-driven solutions for artists and venues, with its primary revenue-generating product being the Set.fm platform. The company is also deploying its Soundstr Music Recognition Technology in various locations and has signed a Memorandum of Understanding with Eyeora to enhance its Stage It platform. However, the company faces substantial operational and financial hurdles, including ongoing litigation and ineffective internal controls, which management is currently addressing.