OTC: WORX

We are a Delaware corporation.
Our principal executive offices are located at 35 Village Road, Suite 100, Middleton, MA 01949. Our phone number is (844) 472-9679 and
our website can be found at www.scworx.com.

In this Annual Report, the
terms “SCWorx”, “Alliance,” “Alliance MMA,” the “Company,” “we,” “us”
and “our” refer to SCWorx, Corp. (f/k/a Alliance MMA, Inc.). Unless specified otherwise, the historical financial results
in this Annual Report are those of SCWorx and its subsidiaries on a consolidated basis.

Our Business

SCWorx is a provider of data
content and services related to the repair, normalization and interoperability of information for healthcare providers, as well as big
data analytics for the healthcare industry.

SCWorx has developed and markets
health information technology solutions and associated services that improve healthcare processes and information flow within hospitals.
SCWorx’s software platform enables healthcare providers to simplify, repair, and organize its data (“data normalization”),
allows the data to be utilized across multiple internal software applications (“interoperability”) and provides the basis
for sophisticated data analytics (“big data”). SCWorx’s solutions are designed to improve the flow of information quickly
and accurately between the existing supply chain, electronic medical records, clinical systems, and patient billing functions. The software
is designed to achieve multiple operational benefits such as supply chain cost reductions, decreased accounts receivables aging, accelerated
and more accurate billing, contract optimization, increased supply chain management and cost visibility, synchronous Charge Description
Master (“CDM”) and control of vendor rebates and contract administration fees.

Currently, the business systems
of hospitals are frequently deficient and often unconnected from each other. These deficiencies in part result from the vast amount of
unstructured, manually created and managed data that proliferates within the hospital’s supply chain, clinical and billing systems.
SCWorx’s solutions are designed to improve the flow of information quickly and accurately between the buy-side (supply chain purchasing
systems), the consumption-side (clinical documentation systems like the electronic medical records (“EMR”)) and billing and
collection systems (patient billing systems). The currently poor state of interoperability limits the potential value of each independent
system and requires significant expense and extensive human resource commitments from senior personnel to stay ahead of problems and complete
basic administrative tasks. SCWorx provides an information service that ultimately leads to safer, more cost effective and financially
efficient patient care.

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SCWorx has demonstrated that
in order for the core hospital systems to function properly there must be a Single Source of Truth (“SSOT”) for all products
utilized and ultimately billed for. The Item Master File (“IMF”), which is a database of all known products used in hospital
and health care settings, must be accurate at all times and expanded upon to hold both clinical and financial attributes. An accurate
and expanded Item Master File supports interoperability between the supply chain, clinical and financial systems by delivering, on demand,
reports detailing the purchasing, utilization and revenue associated with each and every item used, allowing hospitals to better manage
their business. The Single Source of Truth establishes a common vernacular and syntax, while assigning a consistent meaning across the
healthcare provider’s core systems and accurately migrating data from one application to another and removing disconnects between
critical business systems.

SCWorx’s Software Solutions/Services

SCWorx empowers healthcare
providers to maintain comprehensive access and visibility to an advanced business intelligence that enables better decision-making and
reductions in product costs and utilization, ultimately leading to accelerated and accurate patient billing. SCWorx’s software modules
perform separate functions as follows:

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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.

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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.

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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 repository.

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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.

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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.

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

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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.

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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.

SCWorx continues to provide
transformational data-driven solutions to some of the finest, most well-respected healthcare providers in the United States. Clients are
geographically dispersed throughout the country. The Company’s focus is to assist healthcare providers with issues they have pertaining
to data interoperability. SCWorx provides these solutions through a combination of direct sales and relationships with strategic partners.

SCWorx’s software solutions
are delivered to clients within a fixed term period, typically a three-to-five-year contracted term, where such software is hosted in
SCWorx data centers (Amazon Web Service’s “AWS” or RackSpace) and accessed by the client through a secure connection
in a software as a service (“SaaS”) delivery method.

SCWorx 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.

Clients and Strategic Partners

SCWorx continues to provide
transformational data-driven solutions to some of the finest, most well-respected healthcare providers in the United States. Clients are
geographically dispersed throughout the country and the continued focus is to assist healthcare providers with issues they have pertaining
to data interoperability. SCWorx provides these solutions through a combination of direct sales and relationships with strategic partners.

Competition

SCWorx competes against a
variety of vendors and smaller companies which provide solutions in the specific markets we address. Our principal competitors include:

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

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

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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
competitors have advantages over us, such as longer operating histories, greater financial, technical, marketing or other resources, stronger
brand and business user recognition, larger intellectual property portfolios, broader distribution and presence, and competitive pricing.
In addition, our industry is evolving rapidly and is becoming increasingly competitive.

Barriers to entry to the data
management market include technological and application sophistication, the ability to offer a proven product, creating and utilizing
a well-established client base and distribution channels, brand recognition, the ability to provide agnostic interoperability and to operate
on a variety of MMIS, EMR and financial platforms, the ability to integrate with pre-existing systems and capital for sustained development
and marketing activities.

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SCWorx believes that these
obstacles taken together represent a moderate to high-level barrier to entry on the data management side of our business. The principal
competitive factors in our markets are product features, functionality and support, product depth and breadth (number of items in the
central data warehouse), flexibility, ease of deployment and use, total cost of ownership and time to value. We believe that we generally
compete favorably on the basis of these factors. For example, besides our agnostic interoperability, additional key strengths include
the SCWorx data warehouse, which exceeds 12 million items, SCWorx Big Data analytics and benchmarking.

Contracts, License and Service Fees

SCWorx enters into agreements
with its clients that specify the scope of the solution to be installed and/or services to be provided by SCWorx, as well as the agreed-upon
aggregate price, applicable duration and the timetable for the associated licenses and services.

For clients purchasing software
to be installed locally or provided on a SaaS model, these are multi-element arrangements that include a term license granting the right
to access the applicable software functionality (whether installed locally at the client site or the right to use our company’s
solutions as a part of SaaS services), terms regarding maintenance and support services, terms for any third-party components such as
infrastructure and software, and professional services for implementation, integration, process engineering, optimization and training,
as well as fees and payment terms for each of the foregoing. If the client purchases solutions on a long-term license model, the client
may be billed the license fee up front or on a monthly or quarterly basis. Maintenance and support are provided on a term basis for separate
fees, with an initial term of typically three to five years. The license, maintenance and support fees are charged annually in advance,
commencing either upon contract execution or deployment of the solution in live production. If the client purchases solutions on a term-based
model, the client is billed periodically a combined access fee for a specified term, typically three to five years in length.

SCWorx also generally provides
software and SaaS client’s professional services for implementation, integration, process engineering, and optimization and training.
These services and the associated fees are separate from the license, maintenance and access fees. Professional services are provided
on either a fixed-fee or hourly arrangements billable to clients based on agreed-to payment milestones (fixed fee) or monthly payment
structure on hours incurred (hourly). These services can either be included at the time the related SaaS solution is licensed as part
of the initial purchase agreement or added on afterward as an addendum to the existing agreement for services required after the initial
implementation.

For one-time data normalization
services clients, these normalization services are provided either through a stand-alone services agreement or services addendum to an
existing master agreement with the client. These normalization services are available as either a one-time service or recurring monthly,
quarterly or annual review structure. These services are typically provided on a per item basis. Payment typically occurs upon completion
of the applicable normalization project. The commencement of revenue recognition varies depending on the size and complexity of the system
and/or services involved, the implementation or performance schedule requested by the client and usage by clients of SaaS for software-based
components. SCWorx’s agreements are generally non-cancellable but provide that the client may terminate its agreement upon a material
breach by SCWorx and/or may delay certain aspects of the installation or associated payments in such events. SCWorx does allow for termination
for convenience in certain situations. SCWorx also includes trial or evaluation periods for certain clients, especially for new or modified
solutions. Therefore, it is difficult for SCWorx to accurately predict the revenue it expects to achieve in any particular period, and
a termination or installation delay of one or more phases of an agreement, or the failure of SCWorx to procure additional agreements,
could have a material adverse effect on SCWorx’s business, financial condition, and results of operations. Historically, SCWorx
has not experienced a material amount of contract cancellations; however, SCWorx sometimes experiences delays during contract implementation,
and SCWorx accounts for them accordingly.

Third Party License Fees

SCWorx incorporates software
licensed from various third-party vendors into its proprietary software. Stand-alone third-party software is also required to operate
certain of SCWorx’s proprietary software and/or SaaS services. SCWorx licenses these software products and pays the required license
fees when such software is delivered to clients.

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Government Regulation

Management believes that governmental
regulation is not material to our current core data management business.

Intellectual Property

We protect our intellectual
property rights by relying on federal, state and common law rights, as well as contractual restrictions. We control access to our proprietary
technology by entering into confidentiality agreements, invention assignment agreements and work for hire agreements with our employees
and contractors, and confidentiality agreements with third parties. We further control the use of our proprietary technology and intellectual
property through provisions in our websites’ terms of use. Agreements between the Company and end-users includes a license agreement
in which a non-transferable non-sublicensable, non-exclusive, limited use license to use the licensed products for the duration of the
service order. Customers may not modify, copy, translate, decompile, disassemble, reverse engineer, loan, rent, lease, sublicense, or
create derivative works of the licensed products, in whole or in part. Customer agrees to maintain software and data as Confidential Information.

The Company currently hosts
our solution, serves our customers, and supports our operations in the United States through an agreement with a third-party hosting and
infrastructure provider, Rackspace. The Company incorporates standard IT security measures, including but not limited to; firewalls, disaster
recovery, backup, etc.

Circumstances outside our
control could pose a threat to our intellectual property rights. For example, effective intellectual property protection may not be available
in the United States or other countries in which we seek protection of our marks or our copyrighted works. Also, the efforts we have taken
to protect our proprietary rights may not be sufficient or effective. Any significant impairment of our intellectual property rights may
harm our business or our ability to compete.

Seasonality

We do not believe that SCWorx’s
revenues are impacted by seasonality.

Employees

As of December 31, 2025, we
had 9 employees, of which 3 were management and finance and the rest in operations. We primarily utilize independent contractors and third-party
vendors for software, maintenance of our database and customer software installation.

Available Information

Our website address is www.SCWorx.com.
Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed pursuant
to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (Exchange Act), are filed with the U.S. Securities and
Exchange Commission (SEC). We are subject to the informational requirements of the Exchange Act and file or furnish reports, proxy statements,
and other information with the SEC. Such reports and other information filed by us with the SEC are available free of charge on our website
at www.SCWorx.com when such reports become available on the SEC’s website. The public may read and copy any materials filed by SCWorx
Corp. with the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Room 1580, Washington, DC 20549 on official business
days during the hours of 10 a.m. to 3 p.m. The public may obtain information on the operation of the Public Reference Room by calling
the SEC at 1-800-SEC-0330. The SEC maintains an Internet site that contains reports, proxy and information statements, and other information
regarding issuers that file electronically with the SEC at www.sec.gov. The contents of the websites referred to above are not incorporated
into this filing. Further, our references to the URLs for these websites are intended to be inactive textual references only.

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