VISIUM TECHNOLOGIES, INC. 10-Q

Item 1. Financial Statements VISIUM TECHNOLOGIES, INC. CONSOLIDATED BALANCE SHEETS September 30, 2025 June 30, 2025(1) (Unaudited) ASSETS Current assets: Cash $ 2,986 $ 60,144 Prepaid expenses 5,625 7,500 Total current assets 8,611 67,644 Total assets $ 8,611 $ 67,644 LIABILITIES AND STOCKHOLDERS’ DEFICIT Current liabilities: Accounts payable and accrued expenses $ 1,482,932 $ 1,472,933 Accrued compensation 2,649,679 2,556,428 Accrued interest 328,244 418,044 Due to officer 277,359 277,859 Convertible notes payable 179,132 183,873 Derivative liabilities 5,210 7,805 Notes payable, net of discount of $ 26,154 and $ 27,126 , respectively 1,124,823 991,567 Total current liabilities 6,047,379 5,908,509 Commitments and contingencies (Note 11) - - Stockholders’ deficit: Preferred stock Series A Convertible Stock ($ 0.001 par value; 50,000,000 shares authorized, 13,992,340 shares issued and outstanding as of September 30, 2025 and June 30, 2025, respectively) 13,992 13,992 Series B Convertible Stock ($ 0.001 par value 30,000,000 shares authorized, 1,327,670 shares issued and outstanding as of as of September 30, 2025 and June 30, 2025, respectively) 1,328 1,328 Series C Convertible Stock ($ 0.001 par value 30,000 shares authorized, 0 shares issued and outstanding as September 30, 2025 and June 30, 2025, respectively) - - Series AA Convertible Stock ($ 0.001 par value; 1 share authorized, 1 share issued and outstanding as of September 30, 2025 and June 30, 2025, respectively) - - Common stock, $ 0.0001 par value, 3,000,000,000 shares authorized: 417,544,861 shares issued and outstanding at September 30, 2025, and 368,544,861 shares issued and outstanding at June 30, 2025, respectively (See Note 6) 41,756 36,856 Additional paid in capital 58,438,329 58,196,428 Accumulated deficit ( 64,534,173 ) ( 64,089,470 ) Total stockholders’ deficit ( 6,038,768 ) ( 5,840,865 ) Total liabilities and stockholders’ deficit $ 8,611 $ 67,644 (1) Derived from audited financial statements SEE NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS. 3 Table of Contents VISIUM TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended September 30, 2025 2024 Net revenues $ - $ - Operating expenses: Selling, general and administrative 369,623 370,466 Total Operating Expenses 369,623 370,466 Loss from Operations ( 369,623 ) ( 370,466 ) Other income (expenses): Gain (loss) on change in fair value of derivative liabilities 2,595 26,111 Gain on extinguishment of debt - 725,059 Interest expense ( 77,675 ) ( 54,088 ) Total other income (expenses) ( 75,080 ) 697,082 Income (loss) before income taxes $ ( 444,703 ) $ 326,616 Provision for income taxes - - Net income (loss) $ ( 444,703 ) $ 326,616 Income (loss) per common share basic $ ( 0.00 ) $ 0.00 Income (loss) per common share diluted $ ( 0.00 ) $ 0.00 Weighted average common shares outstanding – basic 397,104,657 229,028,045 Weighted average common shares outstanding – diluted 397,104,657 259,194,421 SEE NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS. 4 Table of Contents VISIUM TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025 (UNAUDITED) Preferred Stock - Series A $0.001 Par Value Preferred Stock - Series B $0.001 Par Value Preferred Stock - Series C $0.001 Par Value Preferred Stock - Series AA $0.001 Par Value Common Stock $0.0001 Par Value Additional Paid-in Accumulated Total Stockholders’ Shares Amount Shares Amount Shares Amount Shares Amount Shares Amount Capital Deficit Deficit Balance at June 30, 2025 13,992,340 $ 13,992 1,327,670 $ 1,328 0 $ - 1 $ 0 368,544,861 $ 36,856 $ 58,196,428 $ ( 64,089,470 ) $ ( 5,840,865 ) Shares issued as compensation to directors and officers 16,000,000 1,600 102,400 104,000 Shares issued for consulting services 250,000 25 1,700 1,725 Shares issued for conversion of notes payable 32,000,000 3,200 131,200 134,400 Commitment shares issued pursuant to convertible notes payable 750,000 75 6,600 6,675 Net income (loss) for the three months ended September 30, 2025 ( 444,703 ) ( 444,703 ) Balance at September 30, 2025 13,992,340 $ 13,992 1,327,670 $ 1,328 0 $ - 1 $ 0 417,544,861 $ 41,756 $ 58,438,329 $ ( 64,534,173 ) $ ( 6,038,768 ) 5 Table of Contents VISIUM TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024 (UNAUDITED) Preferred Stock - Series A $0.001 Par Value Preferred Stock - Series B $0.001 Par Value Preferred Stock - Series C $0.001 Par Value Preferred Stock - Series AA $0.001 Par Value Common Stock $0.0001 Par Value Additional Paid-in Accumulated Total Stockholders’ Shares Amount Shares Amount Shares Amount Shares Amount Shares Amount Capital Deficit Deficit Balance at June 30, 2024 13,992,340 $ 13,992 1,327,670 $ 1,328 0 $ - 1 $ 0 213,953,591 $ 21,397 $ 57,561,804 $ ( 62,747,490 ) $ ( 5,148,969 ) Shares issued as compensation to directors and officers 12,500,000 1,250 51,250 52,500 Shares issued for consulting services 5,350,000 535 22,735 23,270 Shares issued for conversion of notes payable 10,691,000 1,069 43,833 44,902 Net income (loss) for the three months ended September 30, 2024 326,616 326,616 Balance at September 30, 2024 13,992,340 $ 13,992 1,327,670 $ 1,328 0 $ - 1 $ 0 242,494,599 $ 24,251 $ 57,679,623 $ ( 62,420,874 ) $ ( 4,701,680 ) SEE NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS. 6 Table of Contents VISIUM TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three-months ended September 30, 2025 2024 Cash flows from operating activities: Net income (loss) $ ( 444,703 ) $ 326,616 Adjustments to reconcile net loss to net cash used in operating activities: Stock based compensation 112,400 75,770 (Gain) loss on change in derivative liabilities ( 2,595 ) ( 26,111 ) Gain on extinguishment of debt - ( 725,059 ) Amortization of debt discount 26,202 12,150 Changes in operating assets and liabilities: Accounts payable 10,000 42,143 Prepaid expenses 1,875 - Accrued interest 39,859 29,641 Accrued compensation 93,250 154,250 Net cash used in operating activities ( 163,712 ) ( 110,600 ) Cash flows from financing activities: Advances from officers ( 500 ) 56,526 Proceeds from promissory notes 142,105 75,000 Repayment of promissory notes payable ( 35,051 ) ( 21,281 ) Net cash provided by financing activities 106,554 110,245 Net increase (decrease) in cash ( 57,158 ) ( 355 ) Cash, beginning of period 60,144 8,456 Cash, end of period $ 2,986 $ 8,102 Supplemental disclosures of cash flow information: Cash paid for interest $ 6,693 $ 3,151 Cash paid for income taxes $ - $ - Non-cash investing and financing activities: Issuance of common stock for conversion of notes payable and accrued interest $ 134,400 $ 44,902 SEE NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS. 7 Table of Contents VISIUM TECHNOLOGIES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 NOTE 1: ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN Visium Technologies, Inc., or the Company, is a Florida corporation that was originally incorporated in Nevada in October 1987. It was formerly known as Jaguar Investments, Inc. between October 1987 and May 2003, Power2Ship, Inc. between May 2003 and November 2006, Fittipaldi Logistics, Inc. between November 2006 and December 2007, and as NuState Energy Holdings, Inc. between December 2007 and March 5, 2018 when it changed its name to Visium Technologies, Inc. Visium is a provider of cybersecurity and Artificial Intelligence solutions, along with IT infrastructure professional services that include network engineering, system engineering, converged infrastructure deployment, software development, and cybersecurity services. Visium’s proprietary cyber security visualization, big data analytics and automation platform operates in the traditional cyber security space, as well as in the Internet of Things and data analytics spaces. Visium’s propriety technology, TruContext TM , is a tool for cyber warfare analytics, visualization and knowledge management. TruContext TM is a highly scalable big data analytics tool for cyber security, using graph database technology. TruContext TM provides advanced analytics for cybersecurity situational awareness that is scalable, flexible and comprehensive. TruContext TM would typically be deployed by an enterprise and be used by the security analyst to intuitively understand the massive amount of data flowing through the network environment, giving the analyst actionable information in real-time to ensure that the network is protected from threats. The analyst will understand the relationships of the assets in the data center, the communication patterns, and cybersecurity exposures, in real-time. In April 2021 the Company created JAJ Advisory, LLC, a Viriginia limited liability company. The LLC was established to account for non-cybersecurity-related business activities that the Company may pursue. As of September 30, 2025 there has been no activity in this subsidiary. The Company has entered the digital transformation and data center design and construction market after it landed a contract in November 2023 valued at over $ 20 million from its partner, Cybastion Institute of Technology. The contract is to oversee the design and construction of data centers in the Republic of Côte d’Ivoire and the Republic of Benin. Visium is tasked with creating data centers that meet specific requirements and standards, ensuring optimal performance and reliability. The scope of work includes data center architecture and design, power civil engineering, controls and distribution systems, rack layouts, network topology, vendor high availability, and a comprehensive security stack solution which will include Visium’s proprietary TruContext TM cybersecurity platform. As of September 30, 2025 no activity has occurred pursuant to this contract. Going Concern The accompanying consolidated financial statements have been prepared on a going concern basis. For the three months ended September 30, 2025 we had a net loss of $ 444,703 , and had net cash used in operating activities of $ 163,712 and negative working capital of $ 6,038,768 . These matters raise substantial doubt about the Company’s ability to continue as a going concern for a period of one year from the date of this filing. The Company’s ability to continue as a going concern is dependent upon its ability to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due, to fund possible future acquisitions, and to generate profitable operations in the future. Management plans to provide for the Company’s capital requirements by continuing to issue additional equity and debt securities. The outcome of these matters cannot be predicted at this time and there are no assurances that, if achieved, the Company will have sufficient funds to execute its business plan or generate positive operating results. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Basis of Presentation The unaudited interim consolidated financial information furnished herein reflects all adjustments, consisting only of normal recurring items, which in the opinion of management are necessary to fairly state Visium Technologies, Inc.’s (the “Company” or “we”, “us” or “our”) financial position, results of operations and cash flows for the dates and periods presented and to make such information not misleading. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”), nevertheless, management of the Company believes that the disclosures herein are adequate to make the information presented not misleading. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited financial statements for the year ended June 30, 2025, contained in the Company’s Annual Report on Form 10-K filed with the SEC on October 7, 2025. The results of operations for the three months ended September 30, 2025, are not necessarily indicative of results to be expected for any other interim period or the fiscal year ending June 30, 2026. 8 Table of Contents VISIUM TECHNOLOGIES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Fiscal Year The fiscal year ends on June 30. References to fiscal year 2026, for example, refer to the fiscal year ending June 30, 2026. Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles and include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reporting amounts of revenues and expenses during the reported period. Actual results will differ from those estimates. Included in these estimates are assumptions used in Cox, Ross & Rubinstein Binomial Tree stock-based compensation valuation methods, such as expected volatility, risk-free interest rate, and expected dividend rate and in the valuation allowance of deferred tax assets and derivative liability. Cash and Cash Equivalents The Company considers all highly liquid, temporary, cash equivalents or investments with an original maturity of three months or less when purchased, to be cash equivalents. The Company had no cash equivalents during the three months ended September 30, 2025 and year ended June 30, 2025. Concentration of Credit Risks The Company is subject to a concentration of credit risk from cash. The Company’s cash account is held at a financial institution and is insured by the Federal Deposit Insurance Corporation, or FDIC, up to $ 250,000 . As of September 30, 2025 and June 30, 2025, the Company did not exceed these FDIC limits. Derivative Liabilities The Company assessed the classification of its derivative financial instruments as of September 30, 2025 and June 30, 2025 which consist of convertible instruments and rights to shares of the Company’s common stock and determined that such derivatives meet the criteria for liability classification under ASC 815. ASC 815 generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument subject to the requirements of ASC 815. ASC 815 also provides an exception to this rule when the host instrument is deemed to be conventional, as described. 9 Table of Contents VISIUM TECHNOLOGIES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued The Company uses judgment in determining the fair value of derivative liabilities at the date of issuance and at every balance sheet thereafter and in determining which valuation method is most appropriate for the instrument, the expected volatility, the implied risk-free interest rate, as well as the expected dividend rate, if any. The Company recorded a derivative liability as of September 30, 2025 of $ 5,210 . Fair Value of Financial Instruments The Company accounts for assets and liabilities measured at fair value on a recurring basis, in accordance with ASC Topic 820, Fair Value Measurements and Disclosures, or ASC 820. ASC 820 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements, establishes a framework for measuring fair value, and expands disclosure about such fair value measurements. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. The following is the Level 3 activity for the Company’s derivatives: Derivative liability at June 30, 2025 $ 7,805 Gain (loss) on change in fair value of derivative liability ( 2,595 ) Derivative liability at September 30, 2025 $ 5,210 Additional Disclosures Regarding Fair Value Measurements The carrying value of cash, accounts payable and accrued expenses, accrued compensation, notes payable and convertible promissory notes payable, approximate their fair value due to the short maturity of these items or the use of market interest rates. Convertible Instruments The Company accounts for convertible instruments (when it has determined that the embedded conversion options should not be bifurcated from their host instruments) in accordance with ASC 470-20, Debt with Conversion and Other Options. Accordingly, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their earliest date of redemption. ASC 815-40, Contracts in Entity’s own Equity, generally provides that, among other things, if an event is not within the entity’s control, such contract could require net cash settlement and shall be classified as an asset or a liability. The Company determines whether the instruments issued in the transactions are considered indexed to the Company’s own stock. During fiscal years 2014 through 2025 the Company’s issued convertible securities with variable conversion provisions that resulted in derivative liabilities. See discussion above under derivative liabilities that resulted in a change in derivative liability accounting. Revenue Recognition All revenues are recorded in accordance with ASC 606, which is recognized when: (i) a contract with a client has been identified, (ii) the performance obligation(s) in the contract have been identified, (iii) the transaction price has been determined, (iv) the transaction price has been allocated to each performance obligation in the contract, and (v) the Company has satisfied the applicable performance obligation over time. 10 Table of Contents VISIUM TECHNOLOGIES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued Income Taxes The Company accounts for income taxes pursuant to the provisions of ASC 740-10, “Accounting for Income Taxes,” which requires, among other things, an asset and liability approach to calculating deferred income taxes. The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to offset any net deferred tax assets for which management believes it is more likely than not that the net deferred asset will not be realized. The Company follows the provisions of ASC 740-10, “Accounting for Uncertain Income Tax Positions”. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has not recorded a liability for uncertain tax benefits. The Company has adopted ASC 740-10-25, “ Definition of Settlement” , which provides guidance on how an entity should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits and provides that a tax position can be effectively settled upon the completion of an examination by a taxing authority without being legally extinguished. For tax positions considered effectively settled, an entity would recognize the full amount of tax benefit, even if the tax position is not considered more likely than not to be sustained based solely on the basis of its technical merits and the statute of limitations remains open. As of September 30, 2025, the Company had not filed tax returns for the tax years ending June 30, 2008 through 2025 and such returns, when filed, potentially will be subject to audit by the taxing authorities for a minimum of three years beyond the filing date under the three-year statute of limitations. The Company has not accrued any potential tax penalties associated with not filing these tax returns. Due to recurring losses, management believes such potential tax penalties, if any, would not be material in amount. Share-Based Payments The Company accounts for stock-based compensation in accordance with ASU 2020-07, Compensation – Stock Compensation (Topic 718). This update is intended to reduce cost and complexity and to improve financial reporting for share-based payments issued to non-employees (for example, service providers, external legal counsel, suppliers, etc.). The ASU expands the scope of Topic 718, Compensation—Stock Compensation, which currently only includes share-based payments issued to employees, to also include share-based payments issued to non-employees for goods and services. Consequently, the accounting for share-based payments to non-employees and employees is substantially aligned. Under ASC Topic 718, “Compensation - Stock Compensation”. Under the fair value recognition provisions of this topic, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as an expense on a straight-line basis over the requisite service period, which is the vesting period. The Company has elected to use the Cox, Ross & Rubinstein Binomial Tree valuation model to estimate the fair value of its options, which incorporates various subjective assumptions including volatility, risk-free interest rate, expected life, and dividend yield to calculate the fair value of stock option awards. Compensation expense recognized in the statements of operations is based on awards ultimately expected to vest and reflects estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Segment Reporting The Company operates in a single business segment, with all technologies, products, and services focused on cybersecurity and data analytics. This includes advanced AI-driven cybersecurity solution development, related IT infrastructure professional services, and digital transformation initiatives, all managed as an integrated business. The proprietary TruContext platform, together with professional services for deployment and integration within complex enterprise environments, represents the core of operations. In accordance with ASC 280, Segment Reporting, the Company’s Chief Operating Decision Maker (CODM), the Chief Executive Officer, reviews financial performance and makes resource allocation decisions on a consolidated basis. All significant operational and strategic decisions are made considering the Company as a single operating unit. As a result, the Company does not have multiple operating segments with separate financial results, and segment reporting is not applicable. All revenues, operating results, and assets are attributable to this single cybersecurity segment, encompassing both product and service offerings, consistent with how the CEO evaluates performance and allocates resources. 11 Table of Contents VISIUM TECHNOLOGIES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued Recent Accounting Pronouncements All new accounting pronouncements issued but not yet effective are not expected to have a material impact on our results of operations, cash flows or financial position. There have been no new accounting pronouncements not yet effective that have significance to our consolidated financial statements. Basic and Diluted Earnings Per Share Basic earnings per share are calculated by dividing income available to stockholders by the weighted-average number of shares of Common Stock outstanding during each period. Diluted earnings per share are computed using the weighted average number of shares of Common Stock and the dilutive Common Stock share equivalents outstanding during the period. Dilutive Common Stock share equivalents consist of shares issuable upon the exercise of in-the-money stock options and warrants (calculated using the modified-treasury stock method) and conversion of other securities such as convertible debt or convertible preferred stock. Potential common shares that would be as follows: September 30, June 30, 2025 2025 Weighted average common shares outstanding 397,104,657 266,703,555 Effect of dilutive securities-when applicable: Convertible promissory notes 4,379,115 35,146,649 Preferred stock 14,793 14,793 Common stock options 2,222 2,222 Warrants 5,112,426 5,112,426 Fully diluted earnings per share—adjusted weighted-average shares and assumed conversions 406,613,213 306,979,645 NOTE 3: DERIVATIVE LIABILITY Derivative liability – convertible notes The Company has certain convertible notes with variable price conversion terms. Upon the issuance of these convertible notes and as a consequence of their conversion features, the convertible notes give rise to embedded derivative liabilities. The Company’s derivative liabilities related to its convertible notes payable have been measured at fair value at September 30, 2025 and June 30, 2025 using the Cox, Ross & Rubinstein Binomial Tree valuation model. The revaluation of the convertible debt at each reporting period, as well as the charges associated with issuing additional convertible notes with price protection features, resulted in the recognition of a gain of $ 26,111 and $ 2,595 for the three months September 30, 2025 and 2024, respectively in the Company’s consolidated statements of operations, under the caption “Gain (loss) in change of fair value of derivative liability”. The fair value of the derivative liability related to the convertible debt at September 30, 2025 and June 30, 2025 is $ 5,210 and $ 7,805 , respectively, which is reported on the consolidated balance sheet under the caption “Derivative liability”. The Company has determined its derivative liability to be a Level 3 fair value measurement. The significant assumptions used in the Cox, Ross & Rubinstein Binomial Tree valuation of the derivative are as follows: Three Months Ended September 30, 2025 2024 Effective exercise price $ 0.0041 $ 0.00138 Effective market price $ 0.0076 $ 0.0028 Expected volatility 226.25 % 276.19 % Risk-free interest 4.15 % 4.87 % Expected terms 60 days 60 days Expected dividend rate 0 % 0 % Changes in the derivative liabilities during the three months ended September 30, 2025 is follows: Derivative liability at June 30, 2025 $ 7,805 Gain on change in fair value of derivative liability $ ( 2,595 ) Derivative liability at September 30, 2025 $ 5,210 NOTE 4: ACCRUED INTEREST PAYABLE Changes in accrued interest payable during the three months ended September 30, 2025 is as follows: Accrued interest payable at June 30, 2025 $ 418,044 Conversion of accrued interest into common stock ( 129,659 ) Interest expense paid in cash ( 6,693 ) Interest expense accrued for the three months ended September 30, 2025 46,552 Write off of accrued interest payable - Accrued interest payable at September 30, 2025 $ 328,244 12 Table of Contents VISIUM TECHNOLOGIES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 NOTE 5: CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE Convertible Notes Payable At September 30, 2025 and June 30, 2025 convertible debentures consisted of the following: September 30, June 30, 2025 2025 Convertible notes payable $ 179,132 $ 183,873 Discount on convertible notes - - Convertible notes, net $ 179,132 $ 183,873 The Company had convertible promissory notes aggregating approximately $ 179,132 and $ 183,873 at September 30, 2025 and June 30, 2025, respectively. The related accrued interest amounted to approximately $ 122,805 and $ 247,563 at September 30, 2025 and June 30, 2025, respectively. The convertible notes payable bear interest at rates ranging from 0 % to 18 % per annum. The convertible notes are generally convertible, at the holders’ option, at rates ranging from $ 0.0042 to $ 121.50 per share, as a result of the two reverse stock splits. At September 30, 2025, approximately $ 179,132 of convertible promissory notes had matured, are in default and remain unpaid. Certain notes contains punitive default provisions that may significantly increase the amount due upon the occurrence of certain events of default. If the Company fails to pay principal or interest at maturity, the outstanding principal, accrued interest, and any unpaid amounts (the “Default Amount”) may become immediately due and payable. For certain other events of default—such as failure to deliver conversion shares, breaches of covenants, representations, bankruptcy, or failure to maintain reporting requirements—the note holder is entitled to additional penalties. Specifically, (i) in the case of a failure to deliver conversion shares, the holder may require payment of two times the Default Amount, (ii) for other specified default events, the note accelerates and becomes immediately due at one and one-half times (1.5x) the Default Amount, and (iii) in addition, the note provides for a liquidated damages fee of $2,000 per day for delays in the issuance of conversion shares, which may be added to principal and accrue interest . Upon default, the Company is also liable for all legal and collection costs incurred by the note holder. These provisions may result in substantial financial penalties and adversely impact the Company’s liquidity and capital resources in the event of default. The changes in the convertible notes payable balance is summarized below: Convertible payable at June 30, 2025 $ 183,873 Convertible notes issued during the three months ended September 30, 2025 - Convertible notes repaid in cash - Conversion of convertible notes payable into common stock ( 4,741 ) Convertible payable at September 30, 2025 $ 179,132 For the three months ended September 30, 2025, the following summarizes the conversion of debt for common shares: Amount of Amount of Conversion Shares Converted Converted Conversion Price Name Issued Principal Interest Expense Total Per Share FirstFire 32,000,000 $ 4,741 $ 129,659 $ - $ 134,400 $ 0.0042 Total 32,000,000 $ 4,741 $ 129,659 $ - $ 134,400 $ 0.0042 In July 2024 the Company obtained a legal opinion to extinguish aged debt totaling $ 725,059 as detailed in the following table. Each of the individual debt instruments were determined to be beyond the statute of limitations and it was determined that the Company has a complete defense to liability related to this debt under the applicable statute of limitations. For the three months ended September 30, 2024 the gain on extinguishment of debt was: Accrued interest expense $ 361,559 Convertible notes payable 208,500 Promissory notes payable 155,000 Gain on extinguishment of debt for the three months ended September 30, 2024 $ 725,059 In the three months ended September 30, 2025 the noteholders converted the principal and interest related to these notes at a conversion rate of $0.0042 per share. Notes Payable The Company had promissory notes aggregating $ 1,124,823 and $ 991,567 at September 30, 2025 and June 30, 2025, respectively. The related accrued interest amounted to approximately $ 205,439 and $ 170,481 at September 30, 2025 and June 30, 2025, respectively. The notes payable bear interest at rates ranging from 0 % to 16 % per annum and are payable monthly. Promissory notes totaling $ 615,000 have matured as of September 30, 2025, and are in default. 13 Table of Contents VISIUM TECHNOLOGIES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 NOTE 6: STOCKHOLDERS’ DEFICIT Common Stock At September 30, 2025, the Company had 3,000,000,000 authorized common shares. At September 30, 2025, the Company has 417,554,861 common shares issued outstanding. Issuances of Common Stock During the Three Months Ended September 30, 2025 Convertible Notes Payable During the three months ended September 30, 2025 the Company issued 32,000,000 shares of its common stock related to the conversion of $ 134,400 of principal and accrued interest for one of its convertible notes payable, at an average contract conversion price of $ 0.0042 per share. Stock Based Compensation During the three months ended September 30, 2025 the Company issued 16,000,000 shares of its $ 0.0001 par value common stock as compensation to its directors and officers. The shares were valued at $ 104,000 , or $ 0.0065 per share, based on the share price at the time of the transactions. During the three months ended September 30, 2025 the Company issued 250,000 shares of its $ 0.0001 par value common stock as compensation to a consultant. The shares were valued at $ 1,725 , or $ 0.0069 per share. Preferred Stock Series A and B issued and outstanding shares of the Company’s convertible preferred stock have a par value of $ 0.001 . All classes rank(ed) prior to any class or series of the Company’s common stock as to the distribution of assets upon liquidation, dissolution or winding up of the Company or as to the payment of dividends. All preferred stock shall have no voting rights except if the subject of such vote would reduce the amount payable to the holders of preferred stock upon liquidation or dissolution of the company and cancel and modify the conversion rights of the holders of preferred stock as defined in the certificate of designations of the respective series of preferred stock. Series A Convertible Preferred Stock The Series A Preferred Stock has a stated value of $ 750 .00 per share. Each one share of Series A Preferred Stock is convertible into one (1) share of Common Stock . In the event the Common Stock price per share is lower than $0.10 (ten cents) per share then the Conversion shall be set at $ 0.035 per share. The Common Stock shares are governed by Lock-Up/Leak-Out Agreements. Series B Convertible Preferred Stock Thirty million ( 30,000,000 ) shares of preferred stock were designated as a new Series B Preferred stock in April 2016. This new Series B Preferred Stock has a $ 0.001 par value, and each 300 shares is convertible into one share of the Company’s common stock , with a stated value of $ 375 per share. Series C Convertible Preferred Stock Thirty thousand ( 30,000 ) shares of preferred stock were designated as a new Series C Preferred stock in October 2024. This new Series C Preferred Stock has a $ 0.001 par value, and has a stated value of $ 100 per share. The Series C shares are convertible into shares of the Company’s common stock at the price of $ 0.075 per share, subject to customary adjustment, including in the event of certain issuances at a price lower than $0.075 per share, as set forth in the Certificate of Designations for the Series C Preferred. The shares of the Series C Preferred shall rank (i) senior to the Company’s Common Stock and any other class or series of capital stock of the Company hereafter created, the terms of which specifically provide that such class or series shall rank junior to the Series C Preferred (each of the securities in clause (i) collectively referred to as “Junior Stock”) and (ii) pari passu with the Company’s Series A Preferred Stock, Series B Preferred Stock, Series AA Preferred Stock and any class or series of capital stock of the Company hereafter created and specifically ranking, by its terms, on par with the Series C Preferred, in each case as to dividend distributions or distributions of assets upon liquidation, dissolution or winding up of the Company or a Deemed Liquidation Event, whether voluntary or involuntary. Holders of the Series C Preferred will vote together with the holders of the Company’s Common Stock on an as-converted basis on each matter submitted to a vote of holders of Common Stock (whether at a meeting of shareholders or by written consent). Series AA Convertible Preferred Stock In March 2018, the Company authorized and issued one share of Series AA convertible preferred stock which provides for the holder to vote on all matters as a class with the holders of Common Stock and each share of Series AA Convertible Preferred Stock shall be entitled to 51% of the common votes on any matters requiring a shareholder vote of the Company. Each one share of Series AA Convertible Preferred Stock is convertible into one (1) share of Common Stock . Mark Lucky, our CEO, is the holder of the one share of Series AA Convertible Preferred Stock. 14 Table of Contents VISIUM TECHNOLOGIES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 NOTE 6: STOCKHOLDERS’ DEFICIT, continued Common Stock Warrants In September 2022 we issued 138,667 warrants with a five year life, and a fixed exercise price of $ 1.35 per share, as part of a modification to three outstanding convertible notes payable. The Company evaluated these amendments under ASC 470-50, “ Debt - Modification and Extinguishment” , and concluded that the issuance of these warrants in exchange for deferring the interim interest payments that were due resulted in significant and consequential changes to the economic substance of the debt and thus resulted in accounting for these modifications as an extinguishment of the debt. The Company recorded a loss of extinguishment of debt of $ 504,925 . These warrants had price protection provisions that allow for the reduction in the current exercise price upon the occurrence of certain events, including the Company’s issuance of common stock or securities convertible into or exercisable for common stock, such as options and warrants, at a price per share less than the exercise price then in effect. For instance, if the Company issues shares of its common stock or options exercisable for or securities convertible into common stock at an effective price per share of common stock less than the exercise price then in effect, the exercise price will be reduced to the effective price of the new issuance. Simultaneously with any reduction to the exercise price, the number of shares of common stock that may be purchased upon exercise of each of these warrants shall be increased proportionately, so that after such adjustment the aggregate exercise price payable for the adjusted number of warrants shall be the same as the aggregate exercise price in effect immediately prior to such adjustment. Due to the price protection features of these warrants, the Company issued 5,048,426 warrant shares in September 2022 to these warrant holders. A summary of the status of the Company’s outstanding common stock warrants as of September 30, 2025 and changes during the fiscal year ending on that date is as follows: Number of Weighted Average Warrants Exercise Price Common Stock Warrants Balance at June 30, 2025 5,112,426 $ 0.0169 Granted - - Exercised - - Forfeited - - Balance at September 30, 2025 5,112,426 $ 0.00169 Warrants exercisable at September 30, 2025 5,112,426 $ 0.0169 Weighted average fair value of warrants granted due to repricing during the period - The following table summarizes information about common stock warrants outstanding at September 30, 2025: Warrants Outstanding Warrants Exercisable Range of Exercise Price Number Outstanding At September 30, 2025 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable At September 30, 2025 Weighted Average Exercise Price $ 0.0169 5,112,426 1.92 Years $ 0.0169 5,112,426 $ 0.0169 5,112,426 1.92 Years $ 0.023 5,112,426 $ 0.0169 15 Table of Contents VISIUM TECHNOLOGIES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 NOTE 7: Gain on Debt Write-Off In July 2024 the Company obtained a legal opinion to extinguish aged debt totaling $ 725,059 as detailed in the following table. Each of the individual debt instruments were determined to be beyond the statute of limitations and it was determined that the Company has a complete defense to liability related to this debt under the applicable statute of limitations. For the three months ended September 30, 2024 the gain on extinguishment of debt was: Accrued interest expense $ 361,559 Convertible notes payable 208,500 Promissory notes payable 155,000 Gain on extinguishment of debt for the three months ended September 30, 2024 $ 725,059 Note 8 - STOCK-BASED COMPENSATION The Company adopted an Incentive Stock Plan on April 18, 2021. This plan is intended to provide incentives which will attract and retain highly competent persons at all levels as employees of the Company, as well as independent contractors providing consulting or advisory services to the Company, by providing them opportunities to acquire the Company’s common stock or to receive monetary payments based on the value of such shares pursuant to Awards issued. While the plan terminates 10 years after the adoption date, issued options have their own schedule of termination. Options to acquire shares of common stock may be granted at no less than fair market value on the date of grant. Upon exercise, shares of new common stock are issued by the Company. Under the 2021 Stock Incentive Plan, the Company has issued options to purchase 16 million shares at an average price of $ 27.00 with a fair value of $ 0.00 . For the three months ended September 30, 2025 and 2024, the Company did not issue any options to purchase shares, respectively. Upon exercise, shares of new common stock are issued by the Company. For the three months ended September 30, 2025 and 2024, the Company recognized an expense of $ 0 and $ 0 , respectively, of non-cash compensation expense (included in General and Administrative expense in the accompanying Consolidated Statement of Operations) determined by application of a binomial option pricing model with the following inputs: exercise price, dividend yields, risk-free interest rate, and expected annual volatility. As of September 30, 2025, the Company had $ 0 of unrecognized pre-tax non-cash compensation expense. The Company used straight-line amortization of compensation expense over the one-year requisite service or vesting period of the grant. The Company recognizes forfeitures as they occur. There are options to purchase approximately 2,222 shares that have vested as of September 30, 2025. The Company uses a binomial option pricing model to estimate the fair value of its stock option awards and warrant issuances. The calculation of the fair value of the awards using the binomial option-pricing model is affected by the Company’s stock price on the date of grant as well as assumptions regarding the following: Year ended June 30, 2025 2024 Expected volatility - % - % Expected term - - Risk-free interest rate - % - % Forfeiture Rate - % - % Expected dividend yield - % - % The expected volatility was determined with reference to the historical volatility of the Company’s stock. The Company uses historical data to estimate option exercise and employee termination within the valuation model. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury rate in effect at the time of grant. A summary of the status of the Company’s outstanding stock options as of September 30, 2025 and June 30, 2025 and changes during the periods ending on that date is as follows: Weighted Average Weighted Exercise Grant Date Fair Aggregate Intrinsic Average Remaining Shares Price Value Value Term (Yrs) Options At June 30, 2025 2,222 $ 27.00 $ - $ - 0.58 Granted - - - - - Exercised - - - - - Forfeiture and cancelled - - - - - At September 30, 2025 2,222 $ 27.00 $ - $ - 0.598 16 Table of Contents VISIUM TECHNOLOGIES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 Note 8 - STOCK-BASED COMPENSATION, continued The following table summarizes information about employee stock options outstanding at September 30, 2025: Outstanding Options Vested Options Number Number Outstanding Weighted Weighted Exercisable Weighted Weighted at Averaged Averaged at Averaged Averaged September 30, Remaining Exercise September 30, Exercise Remaining Range of Exercise Price 2025 Life Price 2025 Price Life $27.00 2,222 0.58 $ 27.00 2,222 $ 27.00 0.58 Outstanding options 2,222 0.58 $ 27.00 2,222 $ 27.00 0.58 As of September 30, 2025, the Company had no unrecognized pre-tax non-cash compensation expense. Restricted Stock Awards Restricted stock awards are awards of common stock that are subject to restrictions on transfer and to a risk of forfeiture if the holder leaves the Company before the restrictions lapse. The holder of a restricted stock award is generally entitled at all times on and after the date of issuance of the restricted shares to exercise the rights of a shareholder of the Company, including the right to vote the shares. The value of stock awards that vest over time was established by the market price on the date of its grant. A summary of the Company’s restricted stock activity for the three months ended September 30, 2025 is presented in the following table: For the three months ended September 30, 2025 Weighted Average Grant Date Shares Fair Value Unvested at June 30, 2025 - $ - Granted 16,250,000 0.0065 Forfeited - Vested ( 16,250,000 ) 0.0065 Unvested at September 30, 2025 - $ - As of September 30, 2025, the Company had no unrecognized pre-tax non-cash compensation expense. NOTE 9: RELATED PARTY TRANSACTIONS Equity transactions with related parties are described in Note 6. From time to time we have borrowed operating funds from Mr. Mark Lucky, our Chief Executive Officer and from certain Directors, for working capital. The advances were payable upon demand and were interest free. At September 30, 2025 there was $ 277,359 outstanding of such advances made to the Company. 17 Table of Contents VISIUM TECHNOLOGIES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 NOTE 10 - ACCRUED PAYROLL Accrued payroll consist of the following at: September 30 June 30 2025 2025 Accrued Payroll - officers $ 1,412,632 $ 1,385,395 Accrued payroll - staff 1,237,047 1,171,033 $ 2,649,679 $ 2,556,428 NOTE 11: COMMITMENTS AND CONTINGENCIES Operating Leases The Company operates virtually, with no office space rented. The Company has no future minimum annual payments under non-cancelable operating leases at September 30, 2025. Contingencies The Company accounts for contingent liabilities in accordance with Accounting Standards Codification (“ASC”) Topic 450, Contingencies . This guidance requires management to assess potential contingent liabilities that may exist as of the date of the financial statements to determine the probability and amount of loss that may have occurred, which inherently involves an exercise of judgment. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. For loss contingencies considered remote, no accrual or disclosures are generally made. Management has assessed potential contingent liabilities as of September 30, 2025, and based on the assessment there are no probable loss contingencies requiring accrual or disclosures within its financial statements. License Contingent Consideration Our license agreements with The MITRE Corporation include provisions for a royalty payment on revenues collected of 6 %. As of September 30, 2025, we have not generated any revenue related to these license agreements. Legal Claims The Company is subject to litigation, claims, investigations, and audits arising from time to time in the ordinary course of business. Although legal proceedings are inherently unpredictable, the Company believes that it has valid defenses with respect to any matters currently pending against the Company and intends to defend itself vigorously. The outcome of these matters, individually and in the aggregate, is not expected to have a material impact on the Company’s cash flows, results of operations, or financial position. Note 12 – Fair Value Measurement Fair value measurements At September 30, 2025 and June 30, 2025, the fair value of derivative liabilities is estimated using the Cox, Ross & Rubinstein Binomial Tree valuation model using inputs that include the expected volatility, the implied risk-free interest rate, as well as the expected dividend rate. The derivative liabilities are the only Level 3 fair value measures. At September 30, 2025 the estimated fair values of the liabilities measured on a recurring basis are as follows: Fair Value Measurements at September 30, 2025: (Level 1) (Level 2) (Level 3) Derivative liability – Convertible notes $ - $ - $ 5,210 Total derivative liability $ - $ - $ 5,210 NOTE 13: SUBSEQUENT EVENTS On October 23, 2025, the Company entered into a Securities Purchase Agreement with 1800 Diagonal Lending LLC (the "Buyer"), pursuant to which the Company issued and sold a secured promissory note (the "Note") in the aggregate principal amount of $ 66,600 , including $ 9,600 of original issue discount, for a purchase price of $ 57,000 . The Note matures on July 30, 2026, and accrues a one-time interest charge of 15% ($ 9,990 ) applied on the issuance date. Repayment is structured in four monthly installments totaling $ 76,590 , commencing April 30, 2026, with a five-day grace period per payment and no prepayment penalty. Unpaid amounts bear default interest at 22 % per annum. The Note includes customary covenants restricting asset sales outside the ordinary course of business (subject to Buyer's consent) and events of default, such as non-payment (after five days' notice), covenant breaches (after 20 days' notice), material representation inaccuracies, bankruptcy, delisting of common stock, non-compliance with Exchange Act reporting, cessation of operations, financial restatements with material adverse effects, transfer agent replacement failures, and cross-defaults with other Company obligations to the Buyer or affiliates. Upon default, the outstanding balance accelerates at 150% of principal plus accrued interest and fees (the "Default Amount"), payable within five business days, failing which the Buyer may convert the Default Amount into shares of the Company's common stock at the applicable conversion price, subject to a 4.99 % beneficial ownership cap. The Note and related securities were issued in reliance on the exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506(b) of Regulation D, and have not been registered under the Securities Act or state securities laws. 18 Table of Contents