VERSES AI (NEOE:VERS) Beneish M-Score : -6.30 (As of May. 21, 2024)

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What is VERSES AI Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -6.3 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for VERSES AI's Beneish M-Score or its related term are showing as below:

NEOE:VERS' s Beneish M-Score Range Over the Past 10 Years
Min: -6.3 Med: -2.87 Max: -2.64
Current: -6.3

During the past 2 years, the highest Beneish M-Score of VERSES AI was -2.64. The lowest was -6.30. And the median was -2.87.

VERSES AI Beneish M-Score Historical Data

The historical data trend for VERSES AI's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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VERSES AI Beneish M-Score Chart

VERSES AI Annual Data

Trend

Mar22

Mar23

Beneish M-Score

VERSES AI Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial						-	-	-2.87	-2.64	-6.30

Competitive Comparison of VERSES AI's Beneish M-Score

For the Software - Infrastructure subindustry, VERSES AI's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

VERSES AI's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, VERSES AI's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where VERSES AI's Beneish M-Score falls into.

VERSES AI Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of VERSES AI for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.4158

0.528 * 1.073

0.404 * 0

0.892 * 1.1647

0.115 * 0.6473

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 2.0211

4.679 * -0.794887

0.327 * 1.141

-6.30

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was C$5.56 Mil.
Revenue was 0.731 + 0.756 + 0.367 + 0.536 = C$2.39 Mil.
Gross Profit was 0.199 + 0.114 + 0.008 + 0.187 = C$0.51 Mil.
Total Current Assets was C$14.88 Mil.
Total Assets was C$15.29 Mil.
Property, Plant and Equipment(Net PPE) was C$0.41 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.35 Mil.
Selling, General, & Admin. Expense(SGA) was C$30.98 Mil.
Total Current Liabilities was C$5.21 Mil.
Long-Term Debt & Capital Lease Obligation was C$0.19 Mil.
Net Income was -19.994 + -10.818 + -10.813 + -7.214 = C$-48.84 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = C$0.00 Mil.
Cash Flow from Operations was -10.092 + -12.771 + -8.502 + -5.317 = C$-36.68 Mil.

Total Receivables was C$3.37 Mil.
Revenue was 0.762 + 0.372 + 0.479 + 0.439 = C$2.05 Mil.
Gross Profit was 0.115 + 0.196 + 0.128 + 0.029 = C$0.47 Mil.
Total Current Assets was C$9.34 Mil.
Total Assets was C$10.88 Mil.
Property, Plant and Equipment(Net PPE) was C$0.57 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.24 Mil.
Selling, General, & Admin. Expense(SGA) was C$13.16 Mil.
Total Current Liabilities was C$3.16 Mil.
Long-Term Debt & Capital Lease Obligation was C$0.21 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(5.557 / 2.39)	/	(3.37 / 2.052)
	=	2.325105	/	1.6423
	=	1.4158

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(0.468 / 2.052)	/	(0.508 / 2.39)
	=	0.22807	/	0.212552
	=	1.073

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (14.881 + 0.413) / 15.294)	/	(1 - (9.336 + 0.565) / 10.882)
	=	0	/	0.090149
	=	0

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	2.39	/	2.052
	=	1.1647

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(0.236 / (0.236 + 0.565))	/	(0.345 / (0.345 + 0.413))
	=	0.294632	/	0.455145
	=	0.6473

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(30.977 / 2.39)	/	(13.159 / 2.052)
	=	12.961088	/	6.412768
	=	2.0211

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((0.191 + 5.213) / 15.294)	/	((0.209 + 3.161) / 10.882)
	=	0.353341	/	0.309686
	=	1.141

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(-48.839 - 0	-	-36.682)	/	15.294
	=	-0.794887

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

VERSES AI has a M-score of -6.30 suggests that the company is unlikely to be a manipulator.

VERSES AI Beneish M-Score Related Terms

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VERSES AI (NEOE:VERS) Business Description

Industry

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VRSSF:USA J9A:Germany

Address

205 - 810 Quayside Drive, New Westminster, BC, CAN, V3M 6B9

Website

https://www.verses.ai

VERSES AI Inc is a cognitive computing company specializing in next-generation AI and developer of KOSM, the world's first network operating system for enabling distributed intelligence. KOSM generates a shared world model of contextualized data, policies, simulations, and workflows.