SCWorx Corp. (WORX): Business Model Canvas [Dec-2025 Updated]

You're digging into the nuts and bolts of SCWorx Corp. (WORX), a company focused on cleaning up the messy data for US hospitals using a Software-as-a-Service (SaaS) platform. Honestly, the model shows promise: they secure long-term, 3-to-5-year contracts, pulling in $2.78 million in Trailing Twelve Month revenue as of September 2025, with Q1 2025 hitting $720,299. But here's the critical part you need to watch, because it defintely impacts valuation: they are still wrestling with operational costs, reporting $1.46 million in significant non-cash interest and debt amortization in just the first half of 2025. See below how their proprietary data warehouse and key partnerships are positioned against these near-term financial realities.

SCWorx Corp. (WORX) - Canvas Business Model: Key Partnerships

You're looking at the core relationships SCWorx Corp. relies on to deliver its SaaS data solutions, and honestly, these partnerships are where the near-term revenue stability is being built, especially given the recent financing activities. Let's break down the numbers we have for late 2025.

The relationships with large healthcare entities, often structured through purchasing groups, are critical for scaling adoption. For instance, a recent renewal with an aggregate purchasing group highlights this dependency. This customer, an eight-year partner, extended its commitment for another three-year term in October 2025.

Here's the quick math on that specific deal:

This renewal, which includes the partner doubling the data processed, validates the platform's scalability. Still, you need to keep an eye on revenue concentration; as of the second quarter of 2025, a single Customer C represented approximately 20% of revenue.

Beyond direct customers, SCWorx Corp. engages with consulting partners to expand reach. In August 2025, an agreement was signed with an unnamed healthcare supply chain consulting partner operating across all 50 states. This partner focuses on helping hospitals optimize direct and indirect procurement. The financial terms for this specific collaboration weren't disclosed, but it's important context when the company's trailing twelve-month revenue was reported at $2.84 million.

For capital structure, institutional investors are a key partnership type, providing necessary working capital. You saw a specific financing round close in November 2024:

• Gross proceeds raised from institutional investors: $200,000.
• Securities sold: An aggregate of 232,558 shares of common stock and warrants to purchase the same number of shares.
• Warrant exercise price: $0.86 per share.

Also, between July 15, 2024, and January 17, 2025, the company issued an aggregate of $2,655,000 in senior secured convertible notes. The potential proceeds from the exercise of some warrants held by selling stockholders could reach approximately $17,000,000, which SCWorx Corp. intends to use for working capital and general corporate purposes.

Regarding potential acquisition targets, the public filings don't specify an environmental services company target as of late 2025. However, SCWorx Corp. does note that M&A activity requires in-depth reporting for comparing Group Purchasing Organization (GPO) contract overlap when healthcare providers merge or are acquired.

Finance: draft 13-week cash view by Friday.

SCWorx Corp. (WORX) - Canvas Business Model: Key Activities

Developing and maintaining the SaaS data management platform

• The Foundation product platform is utilized for data management assistance, including for Workday ERP implementations.
• The company reported $219,250 in deferred revenue as of June 30, 2025.
• The company appointed a new Chief Technology Officer in September 2025 to accelerate innovation in healthcare data solutions.

Data cleansing, normalization, and enrichment services

• The core service involves the repair, normalization, and interoperability of information for healthcare providers.
• Product offerings include virtualized Item Master File repair and CDM management.
• The company also offers big data analytics modeling and data integration and warehousing.

Sales and renewal of multi-year customer contracts

• A contract renewal with an existing healthcare partner was announced in October 2025, featuring a 113% Increase in Contract Value over three years.
• A new contract was signed in August 2025 with a health system managing over 1,400 beds for SaaS services and Workday data management.
• The customer base is highly concentrated, with one or a few customers representing a substantial portion of revenues and gross profits historically.

Optimizing operational efficiencies to mitigate losses

The focus on efficiency is evident in the year-over-year comparison of operating results for the six months ended June 30, 2025, versus the prior year period.

For the fiscal year ended December 31, 2024 (as reported in the March 31, 2025 10-K context), the company reported specific operational outcomes:

• Loss from Operations: $(1.26) million.
• Net Loss: $(1.14) million.
• Gross Profit: $0.75 million.
• Reduction in operating expenses compared to the previous year: $0.71 million.
• Total Employees as of December 31, 2024: 7.

The company raised approximately $2.655 million in aggregate convertible notes to support operations.

The total number of Common Stock shares outstanding as of November 12, 2025, was 15,826,834.

SCWorx Corp. (WORX) - Canvas Business Model: Key Resources

You're looking at the core assets SCWorx Corp. (WORX) relies on to run its software-as-a-service business in the healthcare data space. These aren't just line items; they are the foundation of their current operations, so let's look at what they actually have on the books and on the ground.

The most intangible, yet critical, resource is the Proprietary attributed virtualized item data warehouse. This is the engine for their data content and services, aimed at the repair, normalization, and interoperability of information for U.S. healthcare providers. Think of it as their specialized, hard-to-replicate data infrastructure.

Here's a quick look at the hard numbers defining their current resource base as of late 2025, based on the latest filings:

When you look at the human capital, the team is lean. As of December 31, 2024, SCWorx Corp. (WORX) operated with a small core team of 7 employees. That number didn't change from the prior year-end, which is definitely something to note when assessing operational scalability.

On the regulatory and market access front, maintaining their public status is a key resource, even if it comes with pressure. SCWorx Corp. (WORX) has secured a critical lifeline:

• Nasdaq listing symbol: WORX on The Nasdaq Capital Market.
• Compliance extension granted until April 6, 2026.
• The requirement is to close at or above $\text{\$1.00}$ per share for ten consecutive business days.

If onboarding takes 14+ days, churn risk rises, and similarly, if they can't manage that bid price, the resource of the Nasdaq listing itself is at risk.

SCWorx Corp. (WORX) - Canvas Business Model: Value Propositions

You're looking at the core promises SCWorx Corp. makes to its healthcare provider clients. These aren't abstract ideas; they tie directly to the bottom line and operational reality inside a hospital system.

Repair and normalize healthcare item master file data

The foundation of the value is fixing the Item Master File (IMF), which is the database of all products used and billed for in a healthcare setting. SCWorx Corp. uses a translation engine built to equate, cross-reference, and repair supply terminology. This engine utilizes more than 50,000 business rules to ensure data accuracy. This foundational repair supports the goal of establishing the IMF as the Single Source of Truth (SSOT) for all supply-related transactions.

Drive cost savings through contract and rebate management

The platform includes specific modules for contract management and automated rebate management, which directly impact the financial health of the client. This focus on measurable return on investment is key, as demonstrated by recent client activity. Consider the renewal announced in October 2025:

This specific partnership, which has been in place for eight years, shows a clear willingness to increase commitment when the value is proven. The TTM revenue for SCWorx Corp. as of Q3 2025 was $2.78 million, so this single contract renewal represents a significant portion of the overall business base.

Provide a single source for data governance and analytics

SCWorx Corp. positions itself as creating a single source for information to meet a provider's data governance and analytics needs. This unified view is essential when you look at the company's own financial efficiency. For the trailing twelve months ending Q3 2025, the Gross Margin stood at 26.13%, but the Operating Margin was negative at -41.18%, reflecting the investment required to build and maintain this comprehensive platform. The data analytics module is designed to turn this unified data into actionable insights, moving beyond simple reporting.

Improve data interoperability with Electronic Medical Records (EMR)

A core technical value proposition is the data interoperability module, which specifically targets EMR systems, alongside MMIS (Materials Management Information System) and finance systems. The platform acts as middleware, moving data seamlessly between core healthcare systems. This semantic interoperability allows disparate systems to exchange and effectively use data elements. The recent partner expansion mentioned above involved doubling the amount of data processed, which directly validates the scalability of this interoperability for handling increased data volume across systems like EMRs.

The solution modules available to support this interoperability and governance include:

• Virtual Item Master
• Data cleanse and normalization
• Contract management
• Automated rebate management module
• Data interoperability (EMR, MMIS, finance) module
• Virtual General Ledger

Finance: draft 13-week cash view by Friday.

SCWorx Corp. (WORX) - Canvas Business Model: Customer Relationships

You're looking at how SCWorx Corp. manages its connections with healthcare providers, which is critical given the company's focus on complex, long-term data solutions. The relationship strategy leans heavily on retention and expansion within existing accounts, which makes sense when you see the contract structures they use.

The standard engagement period for SCWorx Corp.'s software solutions is a fixed-term contract, typically running for a three-to-five-year contracted term. This structure, delivered via a Software as a Service (SaaS) model hosted in data centers like Amazon Web Service's "AWS" or RackSpace, locks in revenue visibility for the medium term. This is confirmed by a recent major renewal that locked in revenue for a three-year term.

The relationship strategy clearly favors a high-touch approach, especially with established clients. The company sells its solutions and services in the United States to hospitals and health systems primarily through its direct sales force, supplemented by distribution and reseller partnerships. This direct sales model is necessary for complex solutions that require deep integration and data normalization.

The success of this relationship focus is evident in the metrics from long-term partners. For instance, an aggregate purchasing group, which has been a customer for eight years, renewed its agreement on October 6, 2025. This renewal wasn't just a continuation; it reflected an expanded commitment, which is the goal of dedicated account management.

Here's the quick math on that specific contract expansion, which you should keep in mind when evaluating their customer retention efforts:

This kind of expansion suggests that dedicated account management is effectively mapping SCWorx Corp.'s enhanced services to the customer's growing needs, validating the scalability of their platform. The CEO noted that such an increase speaks directly to the measurable value delivered in driving efficiency, cost savings, and data integrity.

The reliance on deep, long-term relationships is also visible in revenue concentration, which is a risk factor but also a testament to successful relationship management. As of the six months ended September 30, 2025, one key customer, Customer C, accounted for about 20% of revenue and 34% of net accounts receivable. This concentration means the health of that relationship directly impacts the top line; for the nine months ended September 30, 2025, total sales were $2.11 million.

The direct sales and relationship focus is summarized by the following operational characteristics:

• Sales are executed through a direct sales force targeting hospitals and health systems.
• Solutions are delivered via a SaaS delivery method.
• The company utilizes relationships with strategic partners for broader reach.
• The focus is on assisting providers with data interoperability issues.

If onboarding takes 14+ days, churn risk rises, which is why a high-touch, direct model is necessary for these multi-year commitments.

SCWorx Corp. (WORX) - Canvas Business Model: Channels

You're looking at how SCWorx Corp. gets its data management and analytics solutions into the hands of healthcare providers as of late 2025. The channels are a mix of direct effort and leveraging established industry players.

Direct sales efforts target hospital executives, though the company noted in its March 31, 2025, 10-K filing that failure to adequately expand its direct sales force will impede growth, with plans contingent on sufficient capital. SCWorx Corp. currently sells its solutions and services in the United States to hospitals and health systems through its direct sales force and its distribution and reseller partnerships.

Strategic partnerships are a critical component of the growth strategy. In August 2025, SCWorx Corp. announced a new strategic collaboration with a major healthcare supply chain consulting partner. This partner specializes in healthcare supply chain consulting and has a nationwide presence across all 50 states. This partnership leverages the Foundation product for data cleanse, normalization, and enrichment services.

The success of the partnership channel is evidenced by contract value metrics. SCWorx Corp. renewed an agreement with an existing healthcare partner, an aggregate purchasing group, for a new three-year term. This renewed contract is valued at approximately $1,692,000 over the three years. This represents a 113% increase compared to the previous contract, which was estimated at $794,366. This customer has been partnered with SCWorx Corp. for eight years.

The secure, hosted Software-as-a-Service (SaaS) platform delivery involves software modules delivered to clients on a fixed-term basis, typically ranging from three to five years. The platform is hosted in SCWorx data centers. The expanded partnership agreement includes doubling the amount of data processed through SCWorx's platform. The company's trailing twelve-month revenue as of late August 2025 was reported at $2.84 million, while the revenue for the fiscal year ended December 31, 2024, was $2.99 million.

Investor relations and public announcements serve as a channel to communicate operational milestones and financial standing to the market. Following the August 26, 2025, announcement of the new collaboration, the stock closed at $0.63. As of March 31, 2025, the number of shares of common stock outstanding was 2,105,755. The last reported sale price on April 15, 2025, was $0.70 per share.

Here is a summary of key channel-related financial and operational data:

The primary customer base reached through these channels includes hospitals and health systems. The company's solutions are designed to help these organizations optimize procurement spend and unlock cost savings.

• Nationwide presence achieved through a consulting partner across all 50 states.
• The renewed contract involves doubling the amount of data processed through the platform.
• The company plans to expand its account management/sales force upon securing sufficient capital.
• The SaaS modules are delivered on a fixed-term basis.
• The company focuses on assisting healthcare providers with data interoperability issues.

Finance: review the capital required to execute the planned sales force expansion by October 31, 2025.

SCWorx Corp. (WORX) - Canvas Business Model: Customer Segments

You're looking at the core clientele for SCWorx Corp. (WORX) as of late 2025. The business model is laser-focused on the US healthcare sector, which is evident in their revenue figures.

US Healthcare Providers (hospitals and health systems)

This group forms the foundation of SCWorx Corp. (WORX) service delivery. The company offers its advanced software solutions to assist these providers with foundational business applications, aiming to reduce costs and improve clinical outcomes. The entire operating segment is geographically focused within the United States. For the quarter ending September 30, 2025, total revenue was reported at $705.80K. The revenue in the last twelve months leading up to that point was $2.78M.

The nature of the contracts with these providers is typically fixed-term, often spanning three to five years, delivered via a SaaS model. One recent operational highlight involved a renewal with an existing healthcare partner that included a 113% increase in contract value.

Aggregate Purchasing Organizations (Group Purchasing Organizations)

While the search results confirm competition from purchasing departments with limited budgets, specific revenue attribution to Aggregate Purchasing Organizations (GPOs) isn't explicitly broken out in the latest filings. However, the competitive landscape suggests GPOs are an indirect or direct customer type that SCWorx Corp. (WORX) must address, either as a direct client or as a channel influencing hospital procurement decisions. The company's solutions, like contract management and RFP automation, are directly relevant to GPO functions.

Large healthcare organizations with complex data needs

SCWorx Corp. (WORX) serves what they describe as some of the most prestigious healthcare organizations in the United States. These large entities inherently possess the complex data needs-spanning supply chain, financial, and clinical systems-that SCWorx Corp. (WORX) software is designed to support. The company's focus on big data analytics modeling and data integration points directly to this segment.

Customers with high revenue concentration (one customer is ~20% of revenue)

Concentration risk is a clear factor here. As of the filing around August 2025, a single customer, identified as Customer C, represented approximately ~20% of revenue. This same customer accounted for a significant 34% of total accounts receivables. The loss of such a customer or a reduction in their demand could adversely affect the company's financial condition. The company's six-month net loss leading up to that period was $2.38M.

Here's a quick look at the top-line financials grounding this customer base:

The customer profile is further defined by the services they require:

• Virtual Item Master File repair.
• CDM (Charge Description Master) management.
• Rebate management automation.
• Data integration and warehousing.

The reliance on a few key clients is a defintely material operational risk to monitor.

Finance: draft 13-week cash view by Friday.

SCWorx Corp. (WORX) - Canvas Business Model: Cost Structure

You're looking at the hard costs SCWorx Corp. is facing as of mid-2025, based on their latest filings. Honestly, the financing structure is a major cost driver right now, which you see reflected in the non-cash charges.

Here's a breakdown of the key cost elements for the six months ended June 30, 2025, derived from their reported operations.

The total Selling, General, and Administrative (SG&A) expenses, based on the sum of the reported operating expense components for the six-month period, were substantial.

• Total SG&A components (G&A + Legal/Professional + Salaries/Wages) for H1 2025: $931,217.
• Legal and professional fees, which cover compliance and filings, totaled $324,409 for the first half of 2025.

The Costs of Revenue, which would include data center hosting and support if those fall under Cost of Goods Sold, are implied by the difference between the reported Revenue of $1,402,931 and the Gross Profit of $246,326 for the six months ended June 30, 2025, resulting in an implied cost of $1,156,605.

The most significant non-cash item impacting the bottom line during this period was the amortization of debt discounts, which hit $1,458,243 for the six months ended June 30, 2025, directly tied to recent convertible financings.

For a quick view of the major expense categories for the six months ended June 30, 2025:

• Non-cash debt discount amortization: $1,458,243
• Implied Cost of Revenue: $1,156,605
• Total SG&A components: $931,217
• Legal and professional fees: $324,409

Finance: draft 13-week cash view by Friday.

SCWorx Corp. (WORX) - Canvas Business Model: Revenue Streams

The revenue streams for SCWorx Corp. (WORX) are primarily anchored in recurring service fees derived from its software-as-a-service (SaaS) data management platform for the healthcare sector.

Fixed-term SaaS subscription fees (3-5 year contracts) form the backbone of predictable revenue. This structure is evidenced by the recent contract activity.

The Trailing Twelve Month (TTM) revenue, as of the period ending September 30, 2025, stood at $2.78 million.

A significant recent event bolstering this stream was the renewal of a key relationship. SCWorx Corp. renewed an agreement with an existing healthcare partner for a new three-year term, effective October 2025. This renewed contract is expected to generate approximately $1,692,000 in total revenue over the three years. Critically, this new commitment represents a 113% increase in value compared to the prior term.

To give you a clearer picture of recent performance against these streams, here is a look at reported quarterly figures:

The revenue composition relies on securing and expanding these long-term software commitments. You can see the recent quarterly revenue data points below:

• Q1 2025 revenue was reported as $720,299.
• Revenue for the quarter ending September 30, 2025, was $705.80K.
• The TTM revenue ending September 30, 2025, was $2.78 million.

The renewal highlights a key aspect of the business model: the ability to expand usage within existing relationships, as the partner doubled the data volume processed. This suggests that revenue growth within the subscription model is driven by both contract duration and increased service utilization.