Versus Systems (VS) AI Stock Analysis

• Market Cap: $5.82M
• Dividend Yield: N/A
• Average Volume (3M): 52.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.12
• Revenue Growth: -79.87%
• EPS Growth: 90.89%
• Country: US
• Employees: 8
• Sector: Technology
• Sector Strength: 43
• Industry: Software - Application
• EPS (TTM): -4.59
• Shares Outstanding: 2,746,505
• 10 Day Avg. Volume: 35,670
• 30 Day Avg. Volume: 52,147
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 56.14
• Price to Cash Flow (P/CF): -0.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.00
• Price Target Upside: -5.66% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

Versus Systems' stock score reflects significant financial challenges, including persistent losses and negative cash flows, which heavily weigh on the overall assessment. Positive technical signals provide a moderate boost, suggesting some market optimism. The recent appointment of a new CEO is a favorable development, potentially leading to strategic improvements, but the overall outlook remains cautious due to valuation concerns.

Positive Factors

Licensing agreement

The licensing agreement with Aspis Cyber Technologies provides needed visibility on '25 revenue and signals a return to growth.

Management changes

Previously announced management changes and a new licensing agreement announced in October should give investors reason for some optimism as the business moves into 2025.

Negative Factors

Financial stability

The company is likely to require additional capital to fund operations in 2025.

Investor confidence

Potential investors are likely kept at arm's length due to the challenging balance sheet position.

Technology risks

Technology risks given business reliance on proprietary prizing and promotion technologies.

Versus Systems Business Overview & Revenue Model

Company Description

Versus Systems (VS) is a technology company that specializes in interactive media and engagement solutions. The company operates in the sectors of digital advertising, gaming, and entertainment. Versus Systems' core product is its proprietary platform that integrates into mobile, console, and PC games, as well as live events and streaming services, to provide in-game and in-content rewards and challenges that increase user engagement.

How the Company Makes Money

Versus Systems makes money primarily through its unique engagement and rewards platform, which enables brands and content creators to offer real-world prizes to players and audiences. The company generates revenue by charging fees to advertisers and sponsors who wish to reach consumers through these interactive experiences. Additionally, Versus Systems may receive revenue sharing from content partners that benefit from increased user engagement and retention facilitated by the platform. The company's strategic partnerships with gaming developers and media companies enhance its market reach and contribute to its earnings.

Versus Systems Financial Statement Overview

Summary

Overall, Versus Systems faces significant financial difficulties with persistent losses, declining revenue, and negative cash flows. While the company has managed to avoid heavy leverage, its operational efficiency and profitability need substantial improvement to achieve financial stability and growth potential.

Income Statement

Versus Systems' income statement shows significant challenges with negative gross and net profit margins over the TTM. Revenue has decreased from the previous annual report, indicating a decline in sales performance. Both EBIT and EBITDA margins are deeply negative, reflecting significant operational inefficiencies and high expenses relative to revenue.

Balance Sheet

The balance sheet reflects a low debt-to-equity ratio, indicating minimal leverage, which is positive. However, the equity ratio has deteriorated, showing reduced shareholder equity relative to total assets. Return on Equity (ROE) is negative due to substantial net losses, highlighting profitability concerns.

Cash Flow

Cash flow statements reveal negative free cash flow growth, with operating cash flows not sufficient to cover capital expenditures despite the absence of new debt. The operating and free cash flow to net income ratios are both unfavorable, suggesting ongoing liquidity challenges and poor cash generation ability from operations.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
91.50K	271.17K	1.11M	768.65K	1.46M	509.02K
	Gross Profit
-514.09K	168.10K	-19.13T	-9.18K	-1.71T	269.65K
	EBIT
-5.04M	-10.75M	-22.06M	-15.48M	―	―
	EBITDA
-4.56M	-8.04M	-17.86M	-17.33M	-5.66M	-4.83M
	Net Income Common Stockholders
-8.47M	-10.51M	-29.61M	-18.00M	―	―
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.96K	4.69M	1.18M	1.68M	2.33M	75.95K
	Total Assets
2.70M	4.88M	8.80M	18.54M	5.59M	3.09M
	Total Debt
2.55M	0.00	2.73M	3.15M	5.27M	4.55M
	Net Debt
2.53M	-4.69M	1.55M	1.48M	2.94M	4.47M
	Total Liabilities
3.31M	321.48K	3.32M	4.54M	6.75M	5.29M
	Stockholders Equity
3.71M	11.94M	11.86M	22.62M	4.76M	2.41M
Cash Flow		Free Cash Flow
-4.26M	-5.54M	-11.69M	-15.32M	―	―
	Operating Cash Flow
-5.35M	-5.52M	-9.15M	-12.89M	―	―
	Investing Cash Flow
0.00	-14.51K	-2.54M	-2.51M	―	―
	Financing Cash Flow
3.58M	9.05M	11.19M	14.80M	7.20M	5.72M

Versus Systems Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.12
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VS, the sentiment is Neutral. The current price of 2.12 is below the 20-day moving average (MA) of 2.15, below the 50-day MA of 2.19, and above the 200-day MA of 1.81, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 48.80 is Neutral, neither overbought nor oversold. The STOCH value of 61.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VS.

Versus Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	58 Neutral	$21.03B	10.28	-16.29%	2.47%	4.45%	-23.80%
SKLZ	52 Neutral	$80.27M	―	-25.25%	―	-37.90%	80.16%
UPLD	44 Neutral	$85.07M	―	-208.78%	―	-7.74%	28.24%
VS	42 Neutral	$5.82M	―	-77.59%	―	-79.87%	90.89%

Versus Systems Corporate Events

Versus Systems Appoints Aric Spitulnik to Board

Versus Systems, Inc. has appointed Aric Spitulnik to its board of directors, where he will play a key role by chairing the audit committee and serving on the compensation and corporate governance committees. This strategic move is significant for those keeping an eye on the company’s governance and financial oversight.