SCWorx Q2 Loss Narrows to $121K; Nasdaq Compliance in Progress

summarizeSummary

SCWorx's Q2 net loss narrowed to $121K from $1.9M a year ago, with cash of $1.26M. The company remains in Nasdaq compliance review after its reverse split, while internal control weaknesses persist.

check_boxKey Events · Earnings and Guidance · WORX

• Q2 Net Loss Narrows Sharply

  Net loss of $120,954 for Q2 2026, down from $1,906,085 in Q2 2025, driven by an 83% increase in gross profit and the absence of prior-year non-cash interest and legal settlement charges.

• Cash Runway Remains Adequate

  Cash of $1,263,478 at June 30, 2026, with operating cash burn of $258,442 for H1 2026, suggesting several quarters of runway at current spending levels.

• Internal Control Weakness Persists

  Disclosure controls and procedures were deemed not effective as of June 30, 2026 due to deficiencies in design of internal controls and lack of segregation of duties.

• Reverse Split Reflected in Financials

  The 1-for-12 reverse stock split effective August 4, 2026 has been applied retrospectively to all periods presented, reducing weighted average shares outstanding to 89,269 for Q2 2026.

auto_awesomeAnalysis · WORX · Technology

SCWorx reported a significantly reduced net loss of $120,954 for Q2 2026, down from $1.9 million a year earlier, driven by lower cost of revenue and the absence of prior-year non-cash charges. Cash stands at $1.26 million, enough to fund operations for several quarters at the current burn rate. The company also disclosed that its disclosure controls remain ineffective due to internal control deficiencies, a governance red flag that persists despite the improved bottom line. The 1-for-12 reverse split, effective August 4, 2026, is now reflected in all periods presented, and the company is in the 20-day compliance period to sustain a $1.00 bid price.