Versus Systems Inc. (VS): Business Model Canvas [Dec-2025 Updated]

As a long-time observer of the tech-meets-sports space, you're likely tracking how Versus Systems Inc. is positioning itself after its strategic shift, especially following that key ASPIS Cyber Technologies deal which brought in a $2.5 million equity investment. Honestly, looking at their late-2025 Business Model Canvas, the picture is one of high-potential IP licensing-like their XEO platform-driving a trailing twelve-month revenue of $2.18 million, but still operating with a Q3 loss of $(990,361). This structure shows a clear path: monetizing proprietary gamification and AR tech through sports leagues and global brands, but it also highlights the immediate pressure to scale those licensing fees to cover development and G&A costs for their small team of 5 employees. Dive into the nine blocks below to see exactly how Versus Systems Inc. plans to turn those high-engagement value propositions into sustainable profitability.

Versus Systems Inc. (VS) - Canvas Business Model: Key Partnerships

You're looking at the core alliances that Versus Systems Inc. is counting on to drive its platform adoption and financial stability as of late 2025. These aren't just handshake deals; they involve significant capital and market reach.

The relationship with ASPIS Cyber Technologies is foundational, directly addressing capital structure needs. This partnership involved a crucial $2,500,000 investment via a Business Funding Agreement. This funding was explicitly part of the compliance plan to meet the Nasdaq minimum shareholders' equity requirement of $2,500,000 until at least September 30, 2025. Furthermore, the Technology License Agreement is set to generate a recurring revenue stream, with a stipulated monthly license fee of $165,000 starting in January 2025.

In the sports vertical, Versus Systems Inc. secured a renewal with the Texas Rangers for the 2025 Season. This marks the fourth consecutive year the team has utilized the Filter Fan Cam technology for in-game entertainment at Globe Life Field.

A significant expansion into the Digital Out-of-Home (DOOH) space came via a new collaboration with LiftMedia LDA across the Iberian Peninsula. The companies signed a non-binding Letter of Intent, expecting a Master Services Agreement within 60 days. This deployment is projected to reach 2,650,000 people daily in Spain and Portugal, representing 4.4% of the Iberian population and generating nearly 1 billion impressions annually. To be fair, this market entry comes while Versus Systems Inc. is facing headwinds, with a three-year revenue growth rate of -88% and a net margin of -75.17%.

On the product integration front, Versus Systems Inc. announced a non-binding Letter of Intent with Drinkfinger Enterprises Ltd. on November 18, 2025. This strategic move aims to transform physical fan gear into digital touchpoints globally, allowing fans to scan Drinkfinger products to unlock digital experiences.

Here's a quick look at the quantifiable impact of these key alliances:

The scope of engagement with these partners is detailed by the technology deployment:

• ASPIS Cyber Technologies: Licensing of gamification and QR code technology for cybersecurity integration.
• Texas Rangers: Continued use of Filter Fan Cam and Augmented Reality filters for all home games.
• LiftMedia LDA: Deployment of QR code technology in thousands of elevator-based media properties.
• Drinkfinger Enterprises Ltd.: Integration to unlock digital games, rewards, and social engagement via scanning physical products.

Regarding the collaborations with Global Brands (Fortune 500 companies), specific financial or statistical data points for Versus Systems Inc.'s direct engagement in late 2025 were not publicly detailed in the available filings, so we focus on the structure of the other confirmed relationships. Finance: draft 13-week cash view by Friday.

Versus Systems Inc. (VS) - Canvas Business Model: Key Activities

You're looking at the core engine of Versus Systems Inc. as of late 2025. These are the things they absolutely must do well to keep the lights on and grow. Honestly, the numbers show a company heavily reliant on a single, large licensing agreement right now, so the activity around that deal is paramount.

Software Development: Creating new IP, including AI and Machine Learning advancements

Versus Systems Inc. is actively working on the next generation of its tech stack. Management has initiated a project specifically aimed at developing new intellectual property.

• The development focus includes advancements in Artificial Intelligence.
• The development focus includes advancements in Machine Learning.
• Share-based compensation recognized for the six months ended June 30, 2025, was $387,476.
• Remaining unrecognized share-based compensation expected to vest is $235,843 over approximately 2.75 years.

Platform Licensing: Managing the XEO and Filter Fan Cam technology licenses

Managing the existing and future licensing of their core software products is a major activity. You should note that the XEO Platform, designed for in-venue main-board work, is currently in a development-only state and not being used by clients as of 2025. The revenue engine is currently the ASPIS license.

The company licenses its three principal software products:

• XEO platform (in-venue main-board work).
• Filter Fan Cam (FFC) platform (Augmented Reality filtering tool).
• Winfinite (stand-alone gaming and prizing product for mobile).

Professional Services: Providing integration and support for partners

Integration and support services are a necessary activity that supplements the licensing revenue. These services were a noted contributor to the recent top-line performance.

• Professional Services contributed to the Q3 2025 revenue of $2.18 million.
• The Gross Margin for Q3 2025 was $2.16 million, reflecting improved cost management alongside license revenue.

Market Expansion: Targeting new geographies like Brazil for major sports franchises

Expanding the customer base geographically is a clear strategic activity for Versus Systems Inc. They are definitely putting effort into securing new deals outside their primary operating area.

• Versus Systems Inc. is expanding operations into Brazil.
• The target market in Brazil includes major soccer franchises, leagues, festival promoters, and tennis organizations.
• This expansion is expected to generate revenue in the near term.

Compliance Management: Maintaining Nasdaq listing requirements (e.g., $2.5 million equity)

Keeping the listing on The Nasdaq Capital Market is a critical, ongoing administrative and financial activity. You defintely need to watch the equity position closely.

• The minimum stockholders' equity required for continued listing is $2,500,000.
• As of June 30, 2024, the company's stockholders' equity was $1,797,764, which was below the minimum.
• A transaction in December 2024 involved a $2.5 million promissory note conversion, which increased equity past the minimum requirement.
• As of June 30, 2025, the company reported 4,901,677 common shares outstanding.

For the nine months ended September 30, 2025, the company reported total revenues of $2.18 million, with an operating loss of $(990,361) and a net loss of $(972,013).

Finance: draft 13-week cash view incorporating Q4 2025 projections by Friday.

Versus Systems Inc. (VS) - Canvas Business Model: Key Resources

You're looking at the core assets Versus Systems Inc. (VS) relies on to operate and grow as of late 2025. Honestly, the key resources right now are heavily weighted toward recent financing and licensing agreements that directly address compliance and near-term cash flow.

Proprietary Software: XEO platform, Filter Fan Cam, and Winfinite interactive ad tool.

Versus Systems Inc. maintains its technology suite, which includes the eXtreme Engagement Online (XEO) platform, designed for main-board work in stadiums and arenas. The company also has the Filter Fan Cam, an augmented reality filtering tool for mobile and venue use, and Winfinite, an interactive advertising tool.

The revenue generated from the licensing of this technology is a critical resource:

Intellectual Property: Core gamification engine and new AI/ML developments.

The foundation of the offering is the proprietary gamification, engagement, and QR code technology licensed to ASPIS Cyber Technologies. Furthermore, Versus Systems Inc. has initiated projects to develop new intellectual property, specifically focusing on advancements in Artificial Intelligence and Machine Learning to modernize its portfolio.

• Technology licensed to ASPIS for cybersecurity integration.
• Focus on developing new IP in AI/ML.

Financial Capital: $2.5 million investment from ASPIS Cyber Technologies.

Securing capital was a primary focus, evidenced by the Business Funding Agreement with ASPIS Cyber Technologies. This funding was crucial for the compliance plan submitted to Nasdaq to meet the minimum shareholders' equity requirement.

Here's the quick math on that capital infusion:

• Total Investment Amount: $2.5 million via an unsecured convertible promissory note.
• Initial Funding Received: $500,000.
• Balance Due by November 15, 2024: $2,000,000.
• Note Interest Rate: Simple interest at 10% per annum.
• Compliance Target: Aim to exceed the minimum shareholders' equity requirement of $2.5 million until at least September 30, 2025.

Technical Talent: Engineering team for platform maintenance and new product development.

The ability to maintain and advance the proprietary software relies on the engineering team. While a specific headcount isn't available, their work supports the ongoing development of new intellectual property, including the AI/ML enhancements mentioned.

The financial context for managing this talent is reflected in the operating results:

• Q3 2025 Gross Margin: $2.16 million.
• Q3 2025 Operating Loss: $(990,361).
• Q3 2025 Net Loss: $(972,013).

Customer Contracts: Multi-year agreements with major sports leagues (NFL, MLB, etc.).

Versus Systems Inc. has a history of working with major entities across sports and entertainment. This established relationship base is a resource, even without current contract values.

The company has worked with teams and leagues including:

• NFL teams.
• MLB teams.
• NHL teams.
• NCAA teams.
• Fortune 500 global brands.

The company is also actively expanding its customer base into new territories, targeting major soccer franchises, leagues, festival promoters, and tennis organizations in Brazil, which is expected to generate revenue in the near term.

Finance: draft 13-week cash view by Friday.

Versus Systems Inc. (VS) - Canvas Business Model: Value Propositions

You're looking at the core reasons why content partners and venues choose Versus Systems Inc. as of late 2025. The value propositions are centered on turning passive consumption into active, rewarded participation.

Enhanced Audience Engagement

Versus Systems Inc. drives participation by tying activities to real-world rewards, whether that's in-game or while you're at a venue. This is being scaled through new partnerships, such as the one announced in December 2025 with LiftMedia LDA. for Digital Out-of-Home (DOOH) experiences.

The expected reach from this DOOH initiative alone is substantial:

• Daily reach across key Iberian Peninsula markets: 2,650,000 people.
• Percentage of the Iberian population reached daily: 4.4%.
• Annual impressions projected from this channel: Nearly 1 billion.

This focus on active engagement is clearly reflected in the company's top-line performance compared to the prior year.

Interactive Advertising

The platform offers high-engagement ad units, like the Winfinite tool, designed to keep players involved rather than tuning out. The success of embedding these incentivized mechanics is visible in the Q3 2025 revenue figures, which show a massive increase over the previous year's comparable quarter. This suggests that the interactive advertising and licensing revenue streams are gaining traction.

The platform's core technology is designed to monetize user interaction across various digital touchpoints.

Real-Time Analytics

Content partners get immediate feedback through a proprietary analytics dashboard. This helps you see what's working right now, not next month. Versus Systems Inc. provides tools to track specific performance indicators for incentive campaigns.

Metrics clients track in real time include:

• Participation rates in challenges.
• Redemption activity for rewards.

The company's gross margin for Q3 2025 was reported at $2.16 million, indicating that the services and licensing driving this data analysis are highly efficient on a cost basis.

Augmented Reality (AR) Experiences

The Filter Fan Cam platform is Versus Systems Inc.'s specific tool for AR experiences, usable for both mobile and in-venue fan broadcasts. This technology is part of a broader strategy that includes expanding into new geographical markets and verticals.

Strategic expansion efforts as of late 2025 include targeting specific sports and entertainment sectors:

Verifiable Rewards

A key differentiator is the use of blockchain and web3 principles to ensure that all prizes and rewards are traceable and secure. This builds trust in the incentive system, which is crucial for high-value prizes.

The platform includes a proprietary reward wallet and ledger infrastructure to support this traceability. Financially, the company is working toward profitability while supporting this technology stack.

The revenue for the nine months ended September 30, 2025, was significantly bolstered by a license agreement with ASPIS Cyber Technologies, Inc., a related party, which underpins the value delivered through these verifiable systems.

Versus Systems Inc. (VS) - Canvas Business Model: Customer Relationships

You're looking at the relationships Versus Systems Inc. (VS) maintains with its key customer and strategic counterparties as of late 2025. The structure here is heavily weighted toward a few critical, financially significant arrangements, which is something you definitely need to track closely.

Strategic Partnerships: Deep, financially intertwined relationship with ASPIS

The relationship with ASPIS Cyber Technologies Inc. is the current financial backbone, given the concentration of revenue. This is a deep tie, as ASPIS is an affiliate of a shareholder holding approximately 20.20% of Versus Systems Inc. as of the Q2 2025 filings.

Here's the quick math on the ASPIS license recognition for the period ending June 30, 2025, which drove much of the recent top-line performance:

The Q3 2025 revenue of $2.18 million for the quarter further underscores this concentration, as the ASPIS license was the primary driver for the nine months ended September 30, 2025. Still, management is actively pursuing new customer relationships in other sectors.

Dedicated Account Management: Long-term, high-touch relationships with league partners

While the ASPIS deal dominates the current financials, the historical high-touch model focused on sports and entertainment remains a stated area of future growth. You should watch for any new contract announcements that mirror the structure of past relationships.

• Expansion focus in late 2025 targets Brazil, specifically major soccer franchises, leagues, festival promoters, and tennis organizations.
• In 2023, the three largest customers included the San Jose Sharks and the Sacramento Kings, indicating established relationships within major North American sports leagues.
• The company is also pursuing new intellectual property development aimed at enhancing its technology portfolio, including advancements in Artificial Intelligence and Machine Learning, to better serve these partners.

Self-Service API: Tools for game developers to integrate prizing directly

Versus Systems Inc. has expanded its API offerings, which is the mechanism for game developers to integrate the prizing and engagement tools directly. However, the status of the core platform components suggests a transition period for developer adoption.

• The proprietary eXtreme Engagement Online or "XEO" platform, designed for in-venue main-board work, is currently in a development-only state and was not being used by clients as of 2025.
• The company continues to refine its suite of tools, which includes a proprietary reward wallet, ledger infrastructure, and analytics dashboard for incentive campaigns.

Investor Relations: Proactive communication via SEC filings and press releases

Investor communication is governed by the standard SEC reporting cadence, with the latest Form 10-Q filed on November 14, 2025, detailing Q3 2025 results. This proactive disclosure is critical given the company's ongoing need for financing and focus on maintaining Nasdaq listing requirements.

Here are some key shareholder metrics from the mid-2025 reporting period:

The unrecognized share-based compensation of $235,843 is expected to vest over approximately 2.75 years. Finance: draft 13-week cash view by Friday.

Versus Systems Inc. (VS) - Canvas Business Model: Channels

You're looking at how Versus Systems Inc. gets its product and value proposition in front of customers as of late 2025. The channel strategy mixes direct sales with platform deployments through partners across various digital and physical venues.

The overall financial context for these channels shows significant recent growth, though quarterly revenue can be lumpy. For the trailing twelve months ending September 30, 2025, Versus Systems Inc. reported total revenues of $2.18 million. This represented a massive year-over-year increase of 2,281.70% compared to the prior year's TTM revenue. However, the quarterly picture shows variability, with revenue for the quarter ending September 30, 2025, reported as $0.0.

Here's a breakdown of the key financial metrics underpinning the channel performance for the period:

Direct Software Licensing:

This channel involves the sales team pushing the XEO platform directly to teams and leagues. The primary financial driver for the recent revenue surge was a specific agreement. The company's revenue for the nine months ended September 30, 2025, was significantly boosted by the license agreement with ASPIS Cyber Technologies, Inc., which is noted as a related party. This suggests that large, direct licensing deals are a critical, albeit potentially non-recurring, component of the revenue mix.

Digital Out-of-Home (DOOH) Networks:

Versus Systems Inc. uses partners to deploy its technology across DOOH networks. A recent development shows a collaboration with LiftMedia to launch audience-enhancing Digital Out-of-Home experiences across key markets. This points to a channel strategy relying on established media network operators for scale and deployment infrastructure.

In-Venue Screens:

The technology is integrated into physical locations, specifically stadium main videoboards and jumbotrons. While specific deployment numbers aren't public, the company's expansion into Brazil targets major soccer franchises and leagues, which inherently rely on these large-format screens for fan engagement.

Mobile/In-App Integration:

Direct use within partner mobile applications represents another key delivery method for the interactive experiences. This channel is essential for capturing engagement data and delivering rewards directly to the end-user's device, complementing the large-screen activations.

Advertising Agencies:

Versus Systems Inc. is positioned in the advertising technology space, meaning it sells ad units, likely based on Cost Per Click (CPC) or Cost Per Action (CPA) models, to brands and agencies. The company's overall business is centered on interactive media and advertising technology. The success of the DOOH and in-venue channels directly feeds inventory into this advertising sales pipeline.

• The technology enables interactive advertising experiences.
• Expansion into Brazil targets leagues and festival promoters, key advertising inventory holders.

Versus Systems Inc. (VS) - Canvas Business Model: Customer Segments

The Customer Segments for Versus Systems Inc. (VS) as of late 2025 are defined by the nature of the technology licensing and professional services rendered, with significant financial contribution from a specific technology partner.

Cybersecurity/Technology Sector: ASPIS Cyber Technologies License

The financial performance for the nine months ended September 30, 2025, saw revenue primarily driven by the license agreement with ASPIS Cyber Technologies, Inc.. This segment represents a critical, high-value stream.

The established terms for this segment include:

• Monthly license fee starting January 2025: $165,000.
• Related-party license revenue recognized in Q2 2025: $1,980,000.
• Related-party contract asset as of June 30, 2025: $1,650,000.
• Accounts receivable - related party as of June 30, 2025: $330,000.
• Revenue from consulting services related to the ASPIS arrangement for the three months ended March 31, 2025: $176,000.

Professional Sports Organizations, Global Brands and Advertisers, and Content Creators

Versus Systems Inc. customers generally include sports teams, venues, and advertising agencies using the products for live events or advertising campaigns. The company has collaborated with gaming studios, streaming platforms, and consumer brands across North America and select international markets.

Specific activity noted within these broader segments includes:

The company offers proprietary business-to-business software tools designed to drive user engagement through gamification and rewards.

International Markets

Versus Systems Inc. is actively expanding its operations into specific international territories.

The geographical focus includes:

• Country Focus: Brazil.
• Target Entities in Brazil: Major soccer franchises, leagues, festival promoters, and tennis organizations.

Versus Systems Inc. (VS) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Versus Systems Inc.'s burn rate right now. Understanding where the cash goes is key to seeing the near-term financial reality of this technology play.

The cost structure is heavily weighted toward operational overhead and future-proofing the platform. For the three months ended September 30, 2025, Versus Systems Inc. reported total operating expenses of $\text{\$756,401}$. This resulted in the reported operating loss for the quarter of $\text{$(990,361)$}$.

Technology Development Costs:

Significant spend is going into new intellectual property, which includes AI/ML projects to modernize the technology portfolio. This is a necessary investment for a B2B software platform focused on engagement.

• Research and development expense for the three months ended September 30, 2025: $\text{\$14,470}$.
• Research and development expense for the nine months ended September 30, 2025: $\text{\$26,838}$.

The nine-month figure shows a sharp decrease from the prior year's $\text{\$118,077}$, suggesting a shift in spending focus or project phasing as of late 2025.

Operating Expenses Breakdown:

The largest component of the operating cost base is clearly in the Selling, General and Administrative category. Here's how the major expense lines looked for the third quarter of 2025:

The Selling, general and administrative costs for the nine months ended September 30, 2025, were $\text{\$3,126,425}$, which is lower than the $\text{\$3,429,062}$ recorded in the same period of 2024.

Sales and Marketing and General and Administrative (G&A):

The Selling, general and administrative spend of $\text{\$741,931}$ for the quarter covers both the team salaries and the costs of market expansion. Versus Systems Inc. is actively expanding into Brazil, targeting major sports and entertainment entities.

• Team Size: The corporate overhead supports a small team of just 5 total employees as of September 30, 2025.

Salaries and corporate overhead for only 5 people must be a significant portion of that $\text{\$741,931}$ quarterly figure.

Interest Expense:

The financing structure introduces a fixed debt cost. Based on the required structure, the interest expense calculation is straightforward, though the specific interest expense in the Q3 2025 filing isn't explicitly broken out to match this note description.

Here's the quick math for the mandated cost:

• Note Principal: $\text{\$2,500,000}$ (Raised in late 2024).
• Annual Interest Rate: 10% per annum.
• Estimated Quarterly Interest Expense: $\text{\$2,500,000} \times \text{0.10} / 4 = \text{$\text{\$62,500}$}$.

This $\text{\$62,500}$ quarterly charge hits the income statement regardless of revenue performance, which is a key risk when operations are not yet cash-flow positive. Finance: draft 13-week cash view by Friday.

Versus Systems Inc. (VS) - Canvas Business Model: Revenue Streams

You're looking at how Versus Systems Inc. (VS) is bringing in the money as of late 2025, and it's heavily weighted toward a specific, large agreement right now. The revenue streams are clearly defined, but the concentration risk is something you'll want to watch closely.

Software Licensing Fees form the primary driver of reported revenue. This is anchored by the non-cancellable license agreement with ASPIS Cyber Technologies, Inc. This agreement stipulates a monthly license fee of $165,000, which began in January 2025. To give you a concrete example of how this is recognized, in the quarter ended June 30, 2025, Versus Systems Inc. recognized $1,980,000 in related-party license revenue from ASPIS. Of that amount, $330,000 was billed and recorded as accounts receivable, while $1,650,000 was recorded as a contract asset for the unbilled portion of the initial twelve-month term.

Professional Services also contribute to the top line. Revenue reported for the third quarter was a substantial increase, driven by the ASPIS license revenue and professional services, which likely cover custom integration and support work related to that core technology deployment.

The third stream involves Advertising/Sponsorship Revenue. Versus Systems Inc.'s platform is designed to monetize branded interactivity through performance-based models. This includes revenue generated via Cost-Per-Click (CPC), Cost-Per-Action (CPA), and direct brand sponsorships embedded within the incentivized engagement experiences. This is the intended monetization path outside of the core licensing structure.

Here are the key financial figures defining the current revenue profile:

The Q3 2025 revenue of $2.18 million represents a substantial increase year-over-year, showing the immediate impact of the new licensing structure.

However, you need to be aware of the counterparty risk inherent in this revenue structure as of mid-2025. The reliance on the ASPIS agreement is significant:

• External revenue (non-related party) was $0 in Q2 2025.
• External revenue for the first six months of 2025 totaled only $23,348.
• The majority of the $1,980,000 recognized in Q2 2025 was from the related-party ASPIS license.

The company is also expanding operations into Brazil, targeting major soccer franchises, leagues, festival promoters, and tennis organizations, which management expects to generate revenue in the near term.