What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2024-09-24 compared with 2023-04-17 · 68 added, 136 removed, 256 unchanged (44% of the section changed)

24 unchanged sentences

becoming the Company’s

On March 16, 2020, in response to the COVID-19 pandemic, SCWorx established a wholly-owned subsidiary, Direct-Worx, LLC.

On March 16, 2020, in response to the COVID-19 pandemic, SCWorx established a wholly-owned subsidiary, Direct-Worx, LLC to

endeavor to source and provide critical, difficult-to-find items for the healthcare industry which it has since ceased.

On October 6, 2023, following

stockholder approval at the Company’s annual meeting, the Company amended its certificate of incorporation to implement a 1 for

15 reverse split of its common stock.

The effect of the reverse stock split was to combine every 15 shares of outstanding common stock

into one share of common stock.

The reverse stock split was effective at the opening of the trading day on October 11, 2023.

The effects of the reverse

stock split have been reflected in this Annual Report on Form 10-K for all periods presented.

Our principal executive offices

are located at 590 Madison Avenue, 21 st Floor, New York, New York, 10022.

are located at 100 S Ashley Dr, Suite 100 Tampa, FL 33602.

Our telephone number is (844) 472-9679.

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perform separate functions as follows:

● Virtualized

Item Master File repair, expansion and automation — The process begins with data normalization — data is put into a simplified

and normalized structure and location for use throughout the enterprise.

The SCWorx software normalizes, automates and builds interoperability

via advanced attribution, vendor and contract mapping, product categorization, repairing the unit of measure and establishing revenue

codes and flags.

SCWorx improves the healthcare providers’ business processes through the establishment of a clean and normalized

Item Master File that improves efficiencies, eliminates cumbersome and error-prone manual processes, and provides an integrated cloud-based

suite of services that enhances the productivity of operating room staff, supply chain margins and billing revenue through the seamless

sharing and accuracy of critical business data.

Medical Record Management — The Electronic Medical Record (EMR) module integrates the advanced data attributes created by SCWorx

in the Item Master into the EMR.

The EMR serves as the database that hospitals use to document all clinical procedures in terms of the

products used and the costs that should be charged.

What makes this module special is that prior to its creation there was no mechanism

that tied product purchases to actual utilization.

Hospitals, being mass consumption businesses, had no way to identify excess ordering

that always accompanies mass consumption organizations.

In addition, the automation and consistency of delivered attributes dramatically

reduces the administrative burden as today these additional attributes are being created by expensive clinical resources manually —

over and over again by each hospital.

The SCWorx EMR management system creates one vernacular for each hospital so they see the data

in a manner that suits them — and then creates a universal vernacular so they can see their performance against other like institutions.

Description Master Management — The Charge Description Master (CDM) Management module assists healthcare providers by integrating

the CDM data into the workflow of the hospitals purchasing systems so that the latest costs can be automatically updated against the

hospitals charging systems.

The CDM data provided by SCWorx is made more accurate, and the resulting data is integrated to the Item Master

for real-time delivery to the EMR — this data is the last remaining piece of information that is consumed by the EMR and passed

ultimately to the patient billing systems.

SCWorx provides real-time integration, automation and management of Item Master File, Clinical

Information Systems and the Charge Description Master.

Management — SCWorx’s Contract Management Module assists healthcare providers to establish an efficient contract management

system and to provide first class care to patients, while reducing operating costs, assuring adherence to compliance requirements, and

mitigating risk.

By linking the Item Master File to the healthcare providers contract management system and procedures, SCWorx simplifies

the way contracts are managed from start to finish by streamlining the processes of creating, routing, reviewing and approving contracts.

Virtualized Item Master File repair, expansion and automation — The process begins with data normalization — data is put into a simplified and normalized structure and location for use throughout the enterprise.

The SCWorx software normalizes, automates and builds interoperability via advanced attribution, vendor and contract mapping, product categorization, repairing the unit of measure and establishing revenue codes and flags.

SCWorx improves the healthcare providers’ business processes through the establishment of a clean and normalized Item Master File that improves efficiencies, eliminates cumbersome and error-prone manual processes, and provides an integrated cloud-based suite of services that enhances the productivity of operating room staff, supply chain margins and billing revenue through the seamless sharing and accuracy of critical business data.

Electronic Medical Record Management — The Electronic Medical Record (EMR) module integrates the advanced data attributes created by SCWorx in the Item Master into the EMR.

The EMR serves as the database that hospitals use to document all clinical procedures in terms of the products used and the costs that should be charged.

What makes this module special is that prior to its creation there was no mechanism that tied product purchases to actual utilization.

Hospitals, being mass consumption businesses, had no way to identify excess ordering that always accompanies mass consumption organizations.

In addition, the automation and consistency of delivered attributes dramatically reduces the administrative burden as today these additional attributes are being created by expensive clinical resources manually — over and over again by each hospital.

The SCWorx EMR management system creates one vernacular for each hospital so they see the data in a manner that suits them — and then creates a universal vernacular so they can see their performance against other like institutions.

Charge Description Master Management — The Charge Description Master (CDM) Management module assists healthcare providers by integrating the CDM data into the workflow of the hospitals purchasing systems so that the latest costs can be automatically updated against the hospitals charging systems.

The CDM data provided by SCWorx is made more accurate, and the resulting data is integrated to the Item Master for real-time delivery to the EMR — this data is the last remaining piece of information that is consumed by the EMR and passed ultimately to the patient billing systems.

SCWorx provides real-time integration, automation and management of Item Master File, Clinical Information Systems and the Charge Description Master.

Contract Management — SCWorx’s Contract Management Module assists healthcare providers to establish an efficient contract management system and to provide first class care to patients, while reducing operating costs, assuring adherence to compliance requirements, and mitigating risk.

By linking the Item Master File to the healthcare providers contract management system and procedures, SCWorx simplifies the way contracts are managed from start to finish by streamlining the processes of creating, routing, reviewing and approving contracts.

SCWorx delivers a data warehouse platform which integrates item master management, spend analysis, and contract management.

These solutions

enable financial staff across the healthcare provider to drill down quickly and deeply into actionable and real-time financial data and

key performance indicators to improve revenue realization and staff efficiency.

This suite of solutions includes the ability to automatically

push price changes to a contract, compliance for standard and non-standard products, contract compliance and optimization reporting,

reliable cost data for current and alternate products, cost performance metrics, matching purchase order price to contract and contract

for Proposal (“RFP”) Automation — With the reality of shrinking operating margins, increasing operating expenses and

decreasing insurance reimbursements, hospitals must evaluate all major expenditures.

In addition, requirements for provable quality of

service supported by trackable metrics now frequently necessitate the search for better options available in the marketplace.

Since hospital-based

provider subsidies are often a major expense item and since there are often perceived opportunities for quality improvement, it is a

reasonable practice for hospital leadership to carefully evaluate all of their current hospital-based services and associated financial

support before each contract renegotiation.

The proliferation of large regional and national providers, with their ability to derive

benefits from economies of scale, have made RFPs much more of a competitive process.

Hospital administrators, however, often rely on

poor or conflicting data when creating an RFP.

Through the integration and utilization of the SSOT SCWorx automates the RFP process and

makes it more accurate.

SCWorx automates the core sourcing processes with the intention to accelerate cycle times, surveys and confirms

business preferred processes, designs and builds a flow chart for the current and desired workflows, cross references bid analysis, implements

bid scoring, customizes software to support automation and customizes the report writer and output documents.

● Integration

of Acquired Businesses — The agnostic design of the SCWorx solution enables rapid deployment of a virtual Item Master File to quickly

and easily allow combining healthcare providers to share information and achieve cost synergies and interoperability without large and

cumbersome upgrades or implementations.

During the consolidation of healthcare providers, SCWorx cleans the data and makes the data available

to the disparate systems.

In addition, M&A activity requires in-depth reporting for comparison of Group Purchasing Organization (“GPO”)

contract overlap.

When healthcare providers that use different GPOs merge, or are acquired, there is a lack of information to compare

These solutions enable financial staff across the healthcare provider to drill down quickly and deeply into actionable and real-time financial data and key performance indicators to improve revenue realization and staff efficiency.

This suite of solutions includes the ability to automatically push price changes to a contract, compliance for standard and non-standard products, contract compliance and optimization reporting, reliable cost data for current and alternate products, cost performance metrics, matching purchase order price to contract and contract repository.

Request for Proposal (“RFP”) Automation — With the reality of shrinking operating margins, increasing operating expenses and decreasing insurance reimbursements, hospitals must evaluate all major expenditures.

In addition, requirements for provable quality of service supported by trackable metrics now frequently necessitate the search for better options available in the marketplace.

Since hospital-based provider subsidies are often a major expense item and since there are often perceived opportunities for quality improvement, it is a reasonable practice for hospital leadership to carefully evaluate all of their current hospital-based services and associated financial support before each contract renegotiation.

The proliferation of large regional and national providers, with their ability to derive benefits from economies of scale, have made RFPs much more of a competitive process.

Hospital administrators, however, often rely on poor or conflicting data when creating an RFP.

Through the integration and utilization of the SSOT SCWorx automates the RFP process and makes it more accurate.

SCWorx automates the core sourcing processes with the intention to accelerate cycle times, surveys and confirms business preferred processes, designs and builds a flow chart for the current and desired workflows, cross references bid analysis, implements bid scoring, customizes software to support automation and customizes the report writer and output documents.

Integration of Acquired Businesses — The agnostic design of the SCWorx solution enables rapid deployment of a virtual Item Master File to quickly and easily allow combining healthcare providers to share information and achieve cost synergies and interoperability without large and cumbersome upgrades or implementations.

During the consolidation of healthcare providers, SCWorx cleans the data and makes the data available to the disparate systems.

In addition, M&A activity requires in-depth reporting for comparison of Group Purchasing Organization (“GPO”) contract overlap.

When healthcare providers that use different GPOs merge, or are acquired, there is a lack of information to compare contracts.

SCWorx provides information for comparative purposes to solve these issues rapidly.

Management — Frequently, vendors use rebates and incentives as a key part of their pricing strategy and structure when selling

to hospitals.

Rebate Management — Frequently, vendors use rebates and incentives as a key part of their pricing strategy and structure when selling to hospitals.

This tactic makes pricing more attractive to healthcare providers.

When tracked through Accounts Payable, and issued correctly,

rebates can help healthcare organizations save money.

At any large healthcare provider, vendor rebates can be difficult to manage since

they require a multi-step process to track dollars earned, credits issued, and monies paid.

Rebates frequently cause tracking challenges

for Accounts Payable departments.

When tracked through Accounts Payable, and issued correctly, rebates can help healthcare organizations save money.

At any large healthcare provider, vendor rebates can be difficult to manage since they require a multi-step process to track dollars earned, credits issued, and monies paid.

Rebates frequently cause tracking challenges for Accounts Payable departments.

Inconsistent tracking is the primary problem for loss of savings with vendor rebate programs.

Rebate Management Module enables healthcare providers to correctly calculate and track rebates provided by healthcare provider vendors.

Purchasing or Contracting departments monitor rebates by creating and maintaining a Rebates Master List which is provided to the Accounts

Payable department.

To assist in this cumbersome process, SCWorx provides information from the SSOT, such as historical data, frequent

updates, advanced administrative fee reporting, purchase rebate tracking, early payment/discount management and Vendor Master Data alignment.

Data Analytics Model — SCWorx provides an in-depth, easy-to-use web portal for display, reporting and analysis of the information

contained within the SCWorx data warehouse.

SCWorx’s analytics solution enables healthcare providers to view benchmarking information,

quickly add new items to the SSOT and identify cost savings through this real-time and on-demand solution.

In addition to simplifying

the item add process, SCWorx provides peer comparison reporting against similar healthcare providers and a list of informative reports

for business measurement, such as spend trend analysis, contract gap analysis, market price comparison, etc.

The SCWorx product line

is a simplified user experience and visual display for the hospital employee which does not require access to the SCWorx application.

Integration and Warehousing — Healthcare providers maintain a significant amount of data.

In many cases the data is not useful

for analytics since the data is held within an individual “silo.” SCWorx establishes an expandable, data warehouse of items

that have been normalized, repaired and enriched as the SSOT for useful benchmarking, interoperability and analytics.

data warehouse allows healthcare providers to effectively use the data contained in their environment and efficiently establish the supply

chain as a leading driver of revenue cycle management.

SCWorx’s Rebate Management Module enables healthcare providers to correctly calculate and track rebates provided by healthcare provider vendors.

Purchasing or Contracting departments monitor rebates by creating and maintaining a Rebates Master List which is provided to the Accounts Payable department.

To assist in this cumbersome process, SCWorx provides information from the SSOT, such as historical data, frequent updates, advanced administrative fee reporting, purchase rebate tracking, early payment/discount management and Vendor Master Data alignment.

Big Data Analytics Model — SCWorx provides an in-depth, easy-to-use web portal for display, reporting and analysis of the information contained within the SCWorx data warehouse.

SCWorx’s analytics solution enables healthcare providers to view benchmarking information, quickly add new items to the SSOT and identify cost savings through this real-time and on-demand solution.

In addition to simplifying the item add process, SCWorx provides peer comparison reporting against similar healthcare providers and a list of informative reports for business measurement, such as spend trend analysis, contract gap analysis, market price comparison, etc.

The SCWorx product line is a simplified user experience and visual display for the hospital employee which does not require access to the SCWorx application.

Data Integration and Warehousing — Healthcare providers maintain a significant amount of data.

In many cases the data is not useful for analytics since the data is held within an individual “silo.” SCWorx establishes an expandable, data warehouse of items that have been normalized, repaired and enriched as the SSOT for useful benchmarking, interoperability and analytics.

SCWorx’s data warehouse allows healthcare providers to effectively use the data contained in their environment and efficiently establish the supply chain as a leading driver of revenue cycle management.

The data warehouse is updated as frequently as every five minutes without intervention.

— Our mobile perioperative closed loop scanning solution is driven by the SCWorx foundational data structure, and utilizes interoperable

data exchanges to push and secure the customer’s enriched item master, all built around the customer’s internal business

rules and chart of account requirements offering the following:

hosted mobile scanning solution, which automates the consumption of known and unknown implant device utilization during surgical procedures

via intuitive Scanning or smart searching features.

■ All scanned device utilization will capture all available attributes,

such as Global Trade Item Number, Lot, Serial numbers, expiration dates.

will establish the following connections with existing Enterprise Resource Planning (“ERP”) and Electronic Medical Record

(“EMR”) enterprise systems for the following:

— Daily scheduling feeds with case information

— Bill-Only electronic purchase orders

— Case closure with device utilization integration

has the ability to consume additional product utilization per case when provided by the EMR for surgical preference cards, central sterile

processing products, and anesthesia gas.

will identify and automate the Item-Add process for unknown items introduced during surgical procedures based on customer’s existing

business rules.

ScanWorx — Our mobile perioperative closed loop scanning solution is driven by the SCWorx foundational data structure, and utilizes interoperable data exchanges to push and secure the customer’s enriched item master, all built around the customer’s internal business rules and chart of account requirements offering the following:

Cloud hosted mobile scanning solution, which automates the consumption of known and unknown implant device utilization during surgical procedures via intuitive Scanning or smart searching features.

All scanned device utilization will capture all available attributes, such as Global Trade Item Number, Lot, Serial numbers, expiration dates.

ScanWorx will establish the following connections with existing Enterprise Resource Planning (“ERP”) and Electronic Medical Record (“EMR”) enterprise systems for the following:

EMR — Daily scheduling feeds with case information

ERP — Bill-Only electronic purchase orders

EMR — Case closure with device utilization integration

ScanWorx has the ability to consume additional product utilization per case when provided by the EMR for surgical preference cards, central sterile processing products, and anesthesia gas.

ScanWorx will identify and automate the Item-Add process for unknown items introduced during surgical procedures based on customer’s existing business rules.

SCWorx continues to provide

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business, the Company’s customers were focused on meeting the nation’s health care needs in response to the COVID-19 pandemic.

Thus, the Company believes that its customers were not able to focus resources on expanding the utilization of the Company’s

services, which has adversely impacted the Company’s growth prospects, at least until the adverse effects of the pandemic subside.

In addition, the financial impact of COVID-19 on the Company’s hospital customers could cause the hospitals to delay payments due

to the Company for services, which could negatively impact the Company’s cash flows.

The Company sought to mitigate

these impacts to revenue through the sale of personal protective equipment (“PPE”) and COVID-19 rapid test kits to the health

care industry, including many of the Company’s hospital customers.

On March 16, 2020, in response to the COVID-19 pandemic, SCWorx

established a wholly-owned subsidiary, Direct-Worx, LLC to endeavor to source and provide critical, difficult-to-find items for the healthcare

Items had become difficult to source due to unexpected disruptions within the supply chain due to the COVID-19 pandemic.

products the Company sought to source included:

Kits — the Company currently has no contracted supply of Rapid Test Kits.

— Personal Protective Equipment (PPE) includes items such as masks, gloves, gowns, shields, etc.

Currently the Company has no contracted

supply of PPE.

Regarding PPE and Test Kits,

the Company’s Board of Directors determined during the second quarter of 2020 to limit the Company’s role to acting as an

intermediary between buyers and sellers with commission-based compensation.

Thus, the Company believes that its customers were not able to focus resources on expanding the utilization of the Company’s services,

which has adversely impacted the Company’s growth prospects, at least until the adverse effects of the pandemic subside.

the financial impact of COVID-19 on the Company’s hospital customers could cause the hospitals to delay payments due to the Company

for services, which could negatively impact the Company’s cash flows.

Clients and Strategic Partners

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Our principal competitors include:

departments that have limited budgets and may be attempting to manually repair the item master file;

companies with a long list of products and services and small companies which may provide item master normalization and data cleanse

companies or service providers, as well as small, specialized vendors, that provide complementary or competitive solutions in benchmarking

or data analytics and data warehousing that may compete with our offerings.

purchasing departments that have limited budgets and may be attempting to manually repair the item master file;

large companies with a long list of products and services and small companies which may provide item master normalization and data cleanse services;

software companies or service providers, as well as small, specialized vendors, that provide complementary or competitive solutions in benchmarking or data analytics and data warehousing that may compete with our offerings.

Some of our actual and perceived

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business