SCWorx Corp. (WORX): History, Ownership, Mission, How It Works & Makes Money

SCWorx Corp. (WORX) operates in the high-stakes healthcare data solutions niche, but with a current market capitalization of just $3.85 million and a recent quarterly net loss of -$1.31 million, are they a turnaround story or a cautionary tale for small-cap tech? This Tampa, Florida-based company, which focuses on data normalization and big data analytics for healthcare providers, just secured a crucial contract renewal in October 2025 with a massive 113% increase in contract value, suggesting a potential inflection point in their business. With last twelve months' revenue at only $2.78 million and a hyper-focused team of just 7 employees as of November 2025, understanding their unique, capital-light operating model-and how they plan to move past a trailing Return on Equity (ROE) of -74.23%-is defintely crucial for any strategist looking for high-risk, high-reward plays.

SCWorx Corp. (WORX) History

SCWorx Corp.'s history is a story of evolution, starting as a concept for healthcare data solutions and transforming into a Nasdaq-listed entity through a series of strategic maneuvers. The core mission has always centered on cleaning and managing complex healthcare supply chain data, but the corporate structure and market focus have shifted significantly over time.

Given Company's Founding Timeline

Year established

The original SCWorx entity was established in 2010, focusing on data solutions for the healthcare sector. The current public company structure, however, formally began on February 1, 2019, following a corporate acquisition and name change.

Original location

The company was originally located in New York. Today, its corporate contact information lists a location in Middleton, MA.

Founding team members

Key figures in the early development of the SCWorx vision included:

• Marc Schessel: Founder and former CEO, who drove the initial strategic direction.
• Tim Hannibal: Former President and COO, who was instrumental in building the operational framework.

Initial capital/funding

While the initial capital for the 2010 founding is not publicly available, a significant early funding round occurred in 2018 when the predecessor company collected $1,250,000 in subscriptions from new third-party investors. The transformative acquisition in 2019 provided the newly-formed public company with over $5.0 million in cash to fuel its growth strategy.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory has been shaped by three major shifts, each redefining its structure and market exposure. You need to understand these if you're looking at the stock or the business model.

• The 2019 Nasdaq Listing: The acquisition by Alliance MMA, Inc. was the single most defintely transformative event, converting a private healthcare data firm into a publicly traded company on the Nasdaq Capital Market. This move gave SCWorx Corp. the capital base and stature needed to compete for larger contracts, as CEO Marc Schessel noted at the time.
• The Pandemic Pivot: The 2020 foray into the PPE market, via the Direct-Worx subsidiary, was a significant but temporary shift away from the core healthcare IT business. This decision, while opportunistic, highlighted the company's willingness to chase near-term revenue, but it also introduced operational complexity.
• The 2025 Data Management Focus: The recent contract wins and renewals in 2025 show a clear, refocused commitment to the core data management software. For instance, being selected by Florida Hospital for data management for their Workday implementation (August 13, 2025) is a concrete example of the value proposition in action. This focus is critical, especially as the company navigates compliance issues, having been granted a 180-day extension to meet the Nasdaq minimum bid price requirement on October 14, 2025. Here's the quick math: as of November 2025, the company's trailing twelve-month EBITDA is around $-1.15 M USD, with a margin of -42.13%, so revenue growth from these new contracts is paramount for financial stability.

To understand the current strategic direction, you should review the company's guiding principles: Mission Statement, Vision, & Core Values of SCWorx Corp. (WORX).

SCWorx Corp. (WORX) Ownership Structure

SCWorx Corp. is a publicly traded company, and its ownership structure is a mix of institutional investors, company insiders, and a large public float, which means retail investors hold the majority of the common stock.

This distribution of shares, with a relatively high insider stake and low institutional presence, suggests that internal management holds significant sway over strategic decisions, but the stock's volatility is heavily influenced by public trading sentiment and volume.

Given Company's Current Status

SCWorx Corp. (WORX) operates as a public entity, listed on the Nasdaq Capital Market (NCM). As of November 2025, the company is classified as a smaller reporting company and a non-accelerated filer, reflecting its relatively modest market capitalization of approximately $3.85 million.

The company's operational performance in the 2025 fiscal year shows a challenging environment; for the nine months ended September 30, 2025, sales were $2.11 million, resulting in a net loss of $3.69 million. This financial backdrop is crucial for understanding the pressure on leadership and the potential for capital-raising activities. For a deeper dive into the financials, you should check out Breaking Down SCWorx Corp. (WORX) Financial Health: Key Insights for Investors.

Given Company's Ownership Breakdown

The company's ownership profile shows a significant portion is held by the public, but insiders maintain a substantial position, which is defintely a factor in governance. Here's the quick math on the breakdown, based on the most recent data available, with approximately 15.83 million shares outstanding as of November 2025.

Given Company's Leadership

The company is steered by a small, experienced management team with an average tenure of five years, plus a board of directors with a shorter average tenure of 1.7 years. This suggests a core group of managers driving the day-to-day, with a relatively new oversight structure.

The leadership team is responsible for navigating the company's focus on healthcare information technology solutions and services, including data content and big data analytics for hospitals and health systems.

• Timothy A. Hannibal: President and Chief Executive Officer (CEO), serving since January 2019, with nearly 30 years of experience in SaaS and cloud technology. His total compensation for the last reported fiscal year was $301,200.
• Christopher J. Kohler: Chief Financial Officer (CFO), an outsourced role through his firm, Kohler Consulting, Inc., bringing over 15 years of finance and accounting experience, focusing on small-cap companies.
• Anders Ohlsson: Chief Technology Officer (CTO), with over 25 years in software engineering, cloud infrastructure, and machine learning applications.

The Board of Directors provides governance and strategic oversight:

• Troy Kirchenbauer: Chairman and Director.
• Michael Burke: Independent Director.
• Vincent Matozzo: Independent Director.
• Timothy A. Hannibal: President, CEO, and Director.

SCWorx Corp. (WORX) Mission and Values

SCWorx Corp. focuses its mission on solving the healthcare industry's critical data interoperability problem, which directly translates to significant cost reduction and operational efficiency for providers. The company's core values are rooted in delivering highly accurate, real-time data to support better financial and clinical outcomes.

SCWorx Corp.'s Core Purpose

The company's purpose is to transform the complex healthcare supply chain by delivering data content and services that repair, normalize, and enable the interoperability of information. This focus is particularly crucial as the healthcare sector continues to grapple with high non-labor costs, which can represent roughly 33% of a hospital's operating expenses.

This commitment to data integrity is what allows a hospital to move beyond a traditional, reactive procurement process toward a strategic, data-driven approach. You can get a clearer picture of the financial implications of this work in Breaking Down SCWorx Corp. (WORX) Financial Health: Key Insights for Investors.

Official Mission Statement (Derived from Stated Purpose)

SCWorx's mission is to empower healthcare providers to significantly lower costs and increase overall efficiency by delivering advanced software solutions for foundational business applications. This involves ensuring the Item Master-the single source of truth (SSOT) for all products and services-is clean, categorized, and continuously updated.

• Improve financial performance and system interoperability for hospitals.
• Provide highly accurate, real-time information for optimized day-to-day operations.
• Enable better contract negotiation with vendors and payors.
• Support the interrelationship between Supply Chain, Financial, and Clinical core systems.

In short: Clean data drives better patient care and a healthier bottom line.

Vision Statement (Derived from Strategic Outlook)

The company's vision is to be the leading provider of transformational data-driven solutions for healthcare in the United States, expanding its market presence through enhanced product offerings and strategic partnerships. The goal is to generate positive operating cash flows by the end of 2025 through increased revenue from new customer acquisitions.

• Expand sales force and product capabilities to drive growth.
• Accelerate innovation in healthcare data solutions, including AI-powered advancements.
• Reinforce the unique value of data cleanse, normalization, and enrichment services nationwide.

This is a realistic vision, especially considering the company's trailing twelve-month revenue was approximately $2.84 million as of August 2025, which shows the scale of the base they are building from.

SCWorx Corp. Slogan/Tagline

The company's operational focus distills into a clear, actionable statement:

• Transforming Healthcare Supply Chain Through Data.

This tagline defintely cuts straight to their core value proposition for investors and customers alike.

SCWorx Corp. (WORX) How It Works

SCWorx Corp. operates as a specialized Software-as-a-Service (SaaS) provider, primarily for the U.S. healthcare industry, focusing on solving complex data interoperability and accuracy issues. The company delivers solutions that transform chaotic, siloed data into highly accurate, real-time information, which hospital executives use to optimize supply chain costs and improve operational efficiency.

You need to know exactly how a company monetizes its technology, and for SCWorx Corp., it's simple: they sell precision data to an industry desperate to cut its $1.7 trillion in administrative waste.

SCWorx Corp.'s Product/Service Portfolio

SCWorx Corp.'s Operational Framework

SCWorx Corp.'s business model revolves around a proprietary technology platform delivered via a SaaS model, ensuring recurring revenue and high scalability. The company's value creation process is a direct, three-step cycle that turns raw, messy data into actionable financial intelligence.

• Data Integration and Cleansing: They start by integrating disparate data from a client's various systems-supply chain, ERP (Enterprise Resource Planning), and clinical databases. This raw data is then put through their proprietary technology to perform a deep 'data cleanse' and normalization, repairing inaccuracies in item master files.
• SaaS Delivery and Hosting: The software modules are delivered to clients on a fixed-term basis, typically ranging from three to five years, and are hosted in SCWorx data centers. This structure provides a predictable revenue stream. For the nine months ended September 30, 2025, the company reported sales of $2.11 million, demonstrating the current scale of their service agreements.
• Sales and Partnerships: Solutions are sold through a direct sales force and strategic distribution/reseller partnerships. In August 2025, they expanded their network with a new healthcare supply chain partner, which is a major channel for reaching hospitals nationwide.

Here's the quick math: a renewed agreement in October 2025 with an existing partner saw a 113% increase in contract value to approximately $1,692,000, which shows clients are expanding their commitment to the platform's value.

SCWorx Corp.'s Strategic Advantages

The company's market success hinges on its ability to offer highly specialized, healthcare-focused data solutions that directly impact the bottom line for financially-strained hospitals.

• Healthcare Specialization: Their technology is purpose-built for the U.S. healthcare supply chain, which is defintely a unique, complex environment with specific regulatory and data standards.
• Proprietary Technology Edge: The use of a proprietary technology platform for virtualized item master file repair and big data analytics creates a barrier to entry, enabling faster and more accurate data normalization than generic tools.
• Demonstrable ROI: The software delivers highly accurate, real-time information that allows healthcare executives to negotiate better contracts with vendors and payors, leading to measurable cost reductions and expanded revenues for the client.
• Strategic Growth Funding: Despite a net loss of $3.69 million for the nine months ended September 30, 2025, the company secured approximately $721,574 in gross proceeds from warrant exercises in October 2025, which they plan to use for working capital and sales force expansion to drive future growth.

You can dive deeper into the market perception and institutional interest by Exploring SCWorx Corp. (WORX) Investor Profile: Who's Buying and Why?

SCWorx Corp. (WORX) How It Makes Money

SCWorx Corp. primarily makes money by selling subscription-based software-as-a-service (SaaS) solutions to US healthcare providers, helping them manage and normalize their complex supply chain, financial, and clinical data. This core service is supplemented by the sale of non-core medical supplies like personal protective equipment (PPE) and rapid test kits.

SCWorx Corp.'s Revenue Breakdown

As of the trailing twelve months (TTM) ending September 30, 2025, SCWorx Corp. generated $2.78 million in total revenue. The revenue is split between its foundational data management software and its opportunistic medical supply sales. Here is the estimated breakdown:

Business Economics

The company's core business model is a subscription-based (SaaS) offering, which should theoretically create predictable, recurring revenue. In reality, the model faces significant structural challenges, evidenced by high customer churn.

• Pricing Structure: The software solutions are sold on a subscription basis, with pricing typically ranging from $500 to $5,000 per month, depending on the complexity of the service and the size of the healthcare organization.
• Contract Churn: Revenue contraction is directly linked to the expiration and non-renewal of certain customer contracts, signaling a failure in retaining the core software customer base. This is a major headwind for a subscription business.
• Gross Margin: The gross profit for the fiscal year ended March 31, 2025, was approximately $0.75 million, representing a decrease of about 41% from the prior year. This suggests that even the revenue that remains is becoming less profitable on a per-unit basis, as non-renewals outpaced cost reductions.
• Growth Opportunity: Despite the overall decline, SCWorx Corp. did renew a deal with an existing healthcare partner for another three years in October 2025, with a 113% increase in contract value. This shows that while churn is an issue, the potential for significant expansion within existing accounts is defintely there.

For a deeper look into the company's long-term strategy, check out its Mission Statement, Vision, & Core Values of SCWorx Corp. (WORX).

SCWorx Corp.'s Financial Performance

The financial performance as of the nine months ended September 30, 2025, paints a picture of a company facing an existential threat, with operating losses continuing to deplete capital.

• Top-Line Contraction: Sales for the nine months ended September 30, 2025, were only $2.11 million, an 8.9% decline year-over-year. For the third quarter alone, sales were $0.705799 million.
• Net Loss: The company reported a net loss of $3.69 million for the nine months ended September 30, 2025. This is a substantial increase from the $0.940935 million net loss in the comparable period a year ago.
• Liquidity Warning: SCWorx Corp. is currently operating under a 'going concern' warning, which is a formal disclosure that management has recurring losses and insufficient capital to continue operating without securing more funding.
• Shareholder Dilution: To bridge the liquidity gap, the company relied on aggressive, highly dilutive financing. Common shares outstanding ballooned by 526%, increasing from 1.86 million to 11.65 million shares over the nine-month period. This massive dilution is a direct cost to existing shareholders.
• Asset Scrutiny: The balance sheet holds $5.8 million in goodwill, which represents a significant 81% of total assets. Given the 'going concern' warning and sustained losses, a full write-down of this intangible asset is a probable risk that would further hit the company's equity.

SCWorx Corp. (WORX) Market Position & Future Outlook

SCWorx Corp. operates as a micro-cap player in the specialized healthcare data management and supply chain sector, with its near-term trajectory heavily dependent on successful execution of recent contract renewals and a critical need to address its Nasdaq listing compliance. The company's core value lies in its proprietary data normalization platform, but its future hinges on converting recent contract momentum into sustained revenue growth and achieving financial stability.

Competitive Landscape

You need to understand that SCWorx is a micro-cap stock, meaning its market share is tiny-often less than 1% of the broader healthcare IT market-which is why precise, large-scale market share data is unavailable. Here's the quick math: with a market capitalization of roughly $2.71 million as of October 2025, it's competing with much larger, better-capitalized entities in niche areas. Its competition is often in the same micro-cap space or specific service lines of major healthcare IT firms.

Opportunities & Challenges

The company's strategic initiatives in 2025 show a clear focus on deepening existing relationships and expanding its technology footprint, but these efforts are shadowed by significant financial and listing risks. Honestly, the Nasdaq compliance issue is the single most pressing near-term challenge.

Industry Position

SCWorx is positioned in the highly competitive, yet fragmented, healthcare information technology (HIT) market, specifically focusing on data content and service solutions for healthcare providers. Its niche is the repair, normalization, and interoperability of supply chain information, which is a critical pain point for hospitals managing complex procurement and billing systems.

• Micro-Cap Status: With a market cap of around $2.71 million, it's a high-risk, high-reward micro-cap stock, far from the stability of industry giants.
• Financial Health: The company operates with a deeply negative net margin of -105.74% and a negative Return on Equity of -58.42%, indicating significant unprofitability.
• Growth Trajectory: Revenue for the last twelve months ending Q3 2025 was $2.78 million, a decline of -13.64% year-over-year, so the recent contract wins are defintely needed to reverse this trend.

The recent contract renewal with a 113% value boost is a clear sign that the core product is sticky and valuable to existing clients, but the company must replicate this success with new customers to achieve the scale needed to overcome its financial hurdles. You can read more about the company's long-term vision here: Mission Statement, Vision, & Core Values of SCWorx Corp. (WORX).