SideChannel Inc (SDCH)

[22rover]

I think you're right—just noticed it was 12/4.

The last earnings release was on 8/7/24 so I just pushed it out 3 months

[candyldy]

I thought the earnings were not coming out until dec 4.  That is according to the schedule 

[vCISO]

Item 7.01. Regulation FD Disclosure.
 

On October 29, 2024, SideChannel, Inc. (“Company”) issued a press release announcing the deployment of its proprietary software product, Enclave, with a research and development organization within the Department of Defense Agency. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

 

[22rover]

Looking at volume/trade activity over the past 30 days. Someone is slowly, methodically building a position. Its not easy to gain size in this stock - it trades by appointment. But, whoever it is picked up another 200-300k shares today. Strong bid at 4cents - which I thought was the previous bottom and was surprised to see it fall below that level. Not a piece of advice, but I feel we won’t see this stock trade below $.03-$.04 - with a push to the 200 day MA.

Looking forward to the earnings report, which should come in the next 10 days or so. Sdch is currently trading at 1x revenue, with no debt, millions of dollars in Nola’s, strong rev growth, an improving bottom line and it seems there’s a strong pipeline, as evidenced by the recent DOD related contract.

good luck everyone and be sure to do your own DD.

[vCISO]

First, Sidechannel was not required to issue this press release. This also means SDCH was not required to include contract size.

****PRs ARE THE WAY FOR ANY COMPANY TO SHOW OR RELEASE NEWS OF REVENUE INCREASES ******
**** I JUST THOUGHT ADDING SOME NUMBERS WOULD MAYBE, JUST MAYBE, GET A MUCH NEEDED SHARE PRICE MOVE****



The PR is meaningful, however, because it helps to strengthen – – and for some restore – – confidence in the company. Further, the press release has the added benefit of providing increased credibility in the eyes of its current customers, as well as companies considering Sidechannel solutions.

****AGREED, IT SHOULD HELP COMPANIES SEE HOW STRONG OUR PRODUCTS ARE****

The fact they chose the word ‘major’ to characterize the contract is worth noting. While I won’t hazard a guess as to the approximate size of the contract, management might be willing to provide some color as part of its upcoming earnings report.

**** I THOUGHT THE EXACT SAME THING ABOUT USING THE WORD “MAJOR” *****

And speaking of major, since its inception, NASA SEWP has grown into the largest federal IT contract vehicle with nearly 35,000 customers. The GWAC is expected to generate nearly $12 billion in total procurements this year alone.

**** I SUGGEST FOR EVERYONE TO GOOGLE AND READ UP ON THIS. I PROVIDED A QUICK LINK IN THE PREVIOUS POST****

#ontheverge
#increasedrevenues
#thankyoubrian

[22rover]

First, Sidechannel was not required to issue this press release. This also means SDCH was not required to include contract size. The PR is meaningful, however, because it helps to strengthen – – and for some restore – – confidence in the company. Further, the press release has the added benefit of providing increased credibility in the eyes of its current customers, as well as companies considering Sidechannel solutions.

The fact they chose the word ‘major’ to characterize the contract is worth noting. While I won’t hazard a guess as to the approximate size of the contract, management might be willing to provide some color as part of its upcoming earnings report.

And speaking of major, since its inception, NASA SEWP has grown into the largest federal IT contract vehicle with nearly 35,000 customers. The GWAC is expected to generate nearly $12 billion in total procurements this year alone.

[vCISO]

https://www.sewp.nasa.gov/about_us.shtml

[vCISO]

Hopefully we learn more about this contract during the next CC. I believe we are do to report on 11-10-24 ????

[vCISO]

This is all spectacular news. Wondering why there is no mention of a dollar value in the PR?

[Stock_Barber]

SideChannel Wins Major Contract with Large DoD Agency to Implement Zero Trust Communications
Tue, October 29, 2024 at 7:55 AM CDT


BOSTON, MA / ACCESSWIRE / October 29, 2024 / SideChannel, the creator of the innovative zero-trust network microsegmentation solution Enclave, is proud to announce an initial contract win with a prominent defense research and development organization within the U.S. Department of Defense (DoD). The contract will see the implementation of SideChannel's Enclave solution to ensure secure communications, advanced segmentation, and enhanced network security.

The DoD agency had been relying on legacy systems that were increasingly costly, unreliable, and hard to maintain. In search of a modern, more dependable solution to connect various systems and sites securely, the agency selected SideChannel's Enclave for its ability to create secure, isolated environments for sensitive communications and data.

Enclave will enable the agency to transition to a zero-trust architecture, ensuring that only verified and authorized systems and users can communicate with one another across their network. Brian Haugli, CEO of SideChannel, commented on this important milestone:

"We're thrilled to partner with such a forward-thinking organization within the DoD. This contract reaffirms SideChannel's commitment to delivering cutting-edge, secure communications solutions that reduce risk and improve operational resilience. Enclave is built for organizations that prioritize security, and we look forward to helping this agency achieve their zero-trust objectives."

Additionally, SideChannel's Enclave solution is now available through the GSA and NASA SEWP contract vehicles, making it easier for government agencies to acquire and deploy the technology. These procurement options streamline the process, allowing federal entities to quickly implement secure, scalable solutions like Enclave to meet their evolving cybersecurity needs.

This contract further establishes SideChannel's Enclave as a leading solution for organizations within the defense sector seeking a secure and scalable approach to modernizing their network architecture.

https://finance.yahoo.com/news/sidechannel-wins-major-contract-large-125500077.html

[22rover]

https://finance.yahoo.com/news/sidechannel-wins-major-contract-large-125500077.html

[22rover]

Ok, you asked for it. How about this for “fast-forwarding” into the future?!

SideChannel Wins Major Contract with Large DoD Agency to Implement Zero Trust Communications

SideChannel has secured a contract with a major U.S. Department of Defense (DoD) research and development organization to implement its Enclave zero-trust network microsegmentation solution. The solution will replace the agency's legacy systems, providing secure communications and enhanced network security. Enclave is now available through GSA and NASA SEWP contract vehicles, facilitating easier procurement for government agencies. The platform will enable the DoD agency to transition to a zero-trust architecture, ensuring only verified and authorized systems and users can communicate across their network.

Positive
* Secured new contract with major DoD research agency
* Expanded access to government market through GSA and NASA SEWP contract vehicles
* Successfully replacing competitor's legacy systems in defense sector

[vCISO]

https://www.linkedin.com/posts/realciso-io_cybersecurity-realciso-milestone-activity-7256764366178471939-kW6g?utm_source=share&utm_medium=member_android

[vCISO]

Lots of talk about the past. I sure wish our future would hurry up and arrive so we could put the past behind us.

#ronmustbebored

[Stock_Barber]

de la Garza failed to file many SEC required filings (pertaining to MDLG's actions), and did things that show a consistent pattern of criminal behavior.

I warned about this for YEARS... but I was the bad guy!

🤣

[22rover]

Now it all makes sense.


TronCarter
Re: SleuthHound post# 21176
Friday, 01/24/2020 2:39:44 PM
There's a laundry list of items MDLG violated...

de la Garza failed to file many SEC required filings (pertaining to MDLG's actions), and did things that show a consistent pattern of criminal behavior.

Everything about de la Garza's CLOK ownership is under question.

Mattox and Koby were not associated or complicit with MDLG's behavior or actions. They were only employed and/or hired by MDLG. Like many other professionals who have worked for CLOK in the past, they have professional integrity. MDLG did not. Many others (Gangi, A. Carlson, Packes, Daly, Kale, other de la Garza's) operated with little to no professional integrity. They were part of the problem.

Message in reply to SleuthHound:

Did anyone see a Statement of Change in Benefitial Ownership?

No, then it couldn't have been MDLG.

But you're ok with giving shares and high salaries to people like Milton Mattox and Ron Koby, who were also associated with MDLG and have yet to deliver anything after over a year?


Tron Carter:
You seem obsessed with Milton and Ron since they have been there over a year and "produced nothing". However, at times you have defended Joe Gangi and his crew. They were engaged with CLOK for about a year and produced nothing. In addition, they took WAY more cash from CLOK than Milton and Ron combined.

[BrianHaugli]

I'm not sure where you read those numbers about my comp. What's in the 10k is accurate.

Side note, there's a former Paulson investor that got fired from there thats been holding a grudge against CLOK for sometime. This guy also every so often emails our CFO Ryan poking fun for no reason. His name is Ron Coby. He's in Oregon I believe and seems to just bag on anything associated with Paulson and CipherLoc. He posts on this forum too and seems to be misguided on things. He briefly held a sales role at CipherLoc end of 2020 thru early 2021 but was let go for inadequate performance.

What's worse is there were allegations against him as a broker that he settled for $32k and at least 1 bankruptcy under his belt around the same time he got divorced. Talk about a series of failures in life.

Know him?

[vCISO]

https://www.linkedin.com/posts/brianhaugli_my-value-and-the-value-of-sidechannel-with-activity-7254546892011782145-WEmn?utm_source=share&utm_medium=member_android

[vCISO]

Wondering when SideChannel will roll this thing out via a huge marketing campaign? Hire more people. Get this thing moving? Seems we are right at cash positive or close. It's time to make this thing move ?

[22rover]

He did not read that.

Mr. Haugli makes less than $400K per year. The merger took place in June of 2022.

Try to follow the high level math:

~$400,000 x 2.4 = $960K

Not millions.

[KnicksStockChamp]

Where do you read that Haugli was paid millions in compensation? All the filings since the merger don't show that at all.

[TronCarter]

Haugli vs. de la Garza aka “the criminal”

MDLG, commonly referred by vCISO in many posts, including the previous post as “the criminal”, and CLOK (now SDCH) is/are being sued by current and/or former shareholders, consultants and employees (including C-level executives). Court records show that SDCH and MDLG will likely continue to litigate one case well into 2025. The case, by the way, was filed on 4/17/2020.

It’s a fact that MDLG and Haugli have both been paid millions of dollars in bonuses and compensation, and millions more in shares from SDCH/CLOK. It’s also a fact that share price has suffered under both MDLG and Haugli.

But it seems like Haugli has been paid MORE $$ and shares than MDLG. And hey, I’m not saying that he (Haugli) acted alone. I believe it was Tom Wilkinson that teed it (reverse merger between SDCH and CLOK, and Haugli’s employment agreement) up so nicely for Haugli. I guess Tom took his money and shares and got away from SDCH.

What happens next? Seems like this business may be running out of money but has found one last way to a) get help from an external resource (RealCiso) and b) distribute even more dollars to Haugli (RealCiso). I’m sure it’s all on the up and up. You know, I may be starting to admire Haugli’s tenacity. 👍️

Here’s to Haugli and team finding a way out of their current cash dwindling situation, although I wouldn’t rule out another infusion of cash or a buyout.

Message in reply to vCISO:
I appreciate your opinion. I guess I question it because of what the criminal did to us. I will get back in my closet and stop with the pouting.

[vCISO]

I appreciate your opinion. I guess I question it because of what the criminal did to us. I will get back in my closet and stop with the pouting. 

[doubbleup]

No its not a ridiculous statement.

Why is it so hard to grasp the concept that RealCISCO was not part of the deal.
I have no idea why some people on this board feel cheated that Brian didn't throw in his other assets as an "extra" to make you happy.

His comparison was spot on.

[vCISO]

Yes, a ridiculous statement IMO……

“Like I've pointed out before, my other assets aren't up for grabs. I have a house and property in upstate NY that I've owned for 18+ years. It's increased in value since we bought it. Should I sell that to SideChannel too?”


Never lose sight of the fact that those here are indeed shareholders of the company that you are CEO of.

#couldhavebeenleftout

[vCISO]

Well as a major shareholder I still think that we got screwed to some extent. I was a huge supporter of Cipherloc and got screwed. I also am down approximately a smooth $500K. I have warrants sitting in the closet laughing at me every morning when I get dressed.

I am more than appreciative of the boys that saved us and for Brian for taking his company public via our disaster. However I can’t help to think where our share price would be with RealCISO as a piece of our company. Instead we have to see it listed on the website as a product offering from a separate company that Brian and Nick apparently spun off before reverse mergering into Cipherloc. To add more insult we are paying RealCISO.

I fight every day trying to not be upset about it. But nonetheless, we are still viable and hopefully will someday get out of the single digit stock prices.

I have bought and bought and bought so that I could average down to a number that I thought I’d be able to someday be happy about.

As a final thought, I do believe this company is a “WHEN” and not an “IF” and I just hope that the WHEN happens before I lose my ability to golf.

#justbeinghonest
#somedaysoon
#pebblebeachiscallingmyname
#onecanonlyhope

[BrianHaugli]

Thank you for the appreciation. I apologize if I come across unsympathetic, that's not my intent. It is a bit frustrating to keep being asked this and while I'm focusing on SideChannel's growth to keep hearing about what else I should have done or sold during the merger. But as shareholders, you're entitled to speak out on what you expect from the company, and you should.

To answer the other question, we separated the RealCISO IP and platform from SideChannel LLC in 2020 simply because (at that time) we may have pursued VC investment in RealCISO. We know that investors would have preferred a clean cap table in a pure software company, not one that's part of a LLC services company. After spinning it out and RealCISO becoming successful on it's own, we didn't pursue VC investment and stayed separate.

Let's focus on what we have today, what we're doing, and the plans we're executing on!

[BrianHaugli]

I have addressed this previously in public and private. Looks like KnicksStockChamp found my previous post.

The company was spun out in 2020, which was years before CipherLoc was known to me. There's no reason or value for Nick or I to consider selling it at this time or merging it with SideChannel. I'm not sure people understand what that would mean. It would be a massive dilutive event for current SDCH shareholders and significantly increase my and Nick's shares in SDCH based on RealCISOs value combined with the depressed share price of SDCH. It doesn't make sense from a financial, share, or corporate standpoint.

Like I've pointed out before, my other assets aren't up for grabs. I have a house and property in upstate NY that I've owned for 18+ years. It's increased in value since we bought it. Should I sell that to SideChannel too?

[vCISO]

My question was would it be better suited for all including Brian and Nick if it was a part of SideChannel? Obviously they both own primary shares of both. But only one of them is publicly traded. Would the extra revenue push SideChannel stock price making both of them richer? At least on paper? It's a legitimate question in my book. 

[KnicksStockChamp]

Looks like he posted about it before here:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=173236275

I don't see an issue with the setup and it being separated based on his explanation. Realciso predates, by years, anything with SideChannel going public.

I'm curious about the services growth and Enclave. That's where I'd focus and expect more results.

[nt2innovate]

Brian did already address this in the past. I believe he said RealCISO was separated from SideChannel before the merger, and one of the primary reasons was that some CISOs who helped develop and have an equity stake in RealCISO were not interested in being part of a public company.

The poster may have a point though. As SideChannel grows, new outside investors may not like this arrangement and see it as a form of self dealing. They might say, it seems like SidChannel outsourced part of its profitable business to an outside company that is financially independent that Brian and Nick also have a large equity stake in, and this was intentionally setup to cut SideChannel investors out of part of the future revenue. if new investors get suspicious about the company's structure and relationships, that might hurt the long term stock price. I don't think this was the case with SideChannel but perceptions can matter when dealing with larger, more sophisticated instutions who will need to start buying stock to get us to a higher price, market cap, and uplist.

The catch 22 is that the current stock price is so depressed, that it may not be worth it for SideChannel shareholders to do an all stock merger with RealCISO and SideChannel at the current depressed stock price unless the owners of RealCISO agree to do it at the 18c a share which was the merger price with SideChannel.

Brian, feel free to jump in here to epxand if you see fit.

[vCISO]

The tutorial was in fact great. But what blew me away was how smart Brian AND Nick are. Pretty amazing and I will say once again, it’s not IF we will see a larger share price it is WHEN??

This company will definitely sustain and will definitely grow. Just how long that will take is uncertain at this time.

[candyldy]

The tutorial on enclave was great.  Did not know it was so comprehensive.   Good to know that we are one of the few if not the only platform that includes identification of who has access to what parts of network.

[candyldy]

Realciso.io

[candyldy]

Brian already addressed this.  Real vision is not part of sidechannel.   It was not part of the merger. 

[vCISO]

Maybe Brian can address this question on 10-10 during the CC. 

[vCISO]

I still don’t understand why this is not part of Sidechannel. Wouldn’t it increase the value of the company and the share price? The owners of this company hold millions of shares of Sidechannel. Wouldn’t it make sense to increase the share price by merging the two companies? I’m lost here, someone clarify this for me please. I’ve asked Brian and his answer just didn’t make me happy. Anyone?

https://www.linkedin.com/posts/realciso-io_where-are-realciso-vciso-platform-users-activity-7249044858441469954-cSjj?utm_source=share&utm_medium=member_ios

[vCISO]

Investor Relations Newsletter
for Current and Prospective Shareholders of SDCH
Fiscal Year-End Update and Invitation to Enclave Demo on 10/10 at 4:30pm ET

As we close out another fiscal year on September 30th, I’m pleased to report that SideChannel (SDCH) has continued to perform well, driving growth and delivering on our commitment to provide innovative cybersecurity solutions.

Our flagship product, Enclave, has played a pivotal role in our success, offering cutting-edge zero-trust network security to businesses of all sizes. We are excited about the potential it holds for further market expansion and client engagement.
I would like to personally invite you to join an exclusive demo of Enclave, where we’ll showcase its powerful capabilities and the value it brings to organizations. It’s a great opportunity to see firsthand how SideChannel is setting the standard for cybersecurity.

Thank you for your continued support and partnership.

Mark your calendar and join us - 10/10/2024 at 4:30pm ET

Join Zoom Meeting
https://sidechannel.zoom.us/j/88408058404?pwd=3OeoblWX0rbyg8blNAeLcBVajdwNNy.1&from=addon

Meeting ID: 884 0805 8404
Passcode: 817934

---

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SideChannel, Inc., 146 Main St, Suite 406, Worcester, MA 01608, US, (OTCQB: SDCH)

[22rover]

And, of course, the corollary to that is someone was comfortable buying half a million shares of stock. The seller, tired of a stock diving to near all-time lows, finally threw in the towel. The buyer—keen to take a position in a healthy, rapidly growing company—took advantage of market inefficiencies. Lets check back on this action in six months and see who made the right decision. At this point the jury is still out.

[vCISO]

500,000 traded and price goes down. Not good.

[vCISO]

IMPRESSIVE!!!!!!!


https://www.linkedin.com/in/dutchschwartz?utm_source=share&utm_campaign=share_via&utm_content=profile&utm_medium=ios_app

[22rover]

Here are the three most recent hires: David Barton, Head of Product; David Menichello, Partnerships; Dutch “David” :) Schwartz, cloud business growth. What’s the significance? These three men will directly impact top-line growth. While I don’t know their compensation packages, I would guess a meaningful portion includes company stock. Why would an accomplished professional move from Amazon to a tiny outfit like sidechannel? There’s the appeal / professional challenge of contributing to the growth of a small company. Each no doubt likes and respects the management team. Remote work is an important consideration. Lastly, stock options. Who wouldn’t jump at the chance for 10x-plus?

The only thing that I find surprising is the lack of insider buying. There’s not a lot of stock available under .20 cents, so why not pull the trigger and soak up the inventory? It’s an easy, imo,quadrupling of your cash.

Exciting times, to be sure, in Worcester.


Do your DD.

[vCISO]

“This new practice is expected to generate significant incremental revenue in the next fiscal year , as SideChannel continues to grow its footprint in the cybersecurity market and deliver additional value to its clients by addressing critical gaps in cloud security.”

[vCISO]

ACCESSWIRE
Dutch Schwartz Joins SideChannel to Lead the Company’s New Cloud Security and Architecture Practice
SideChannel, Inc.
Mon, Sep 9, 2024 at 9:00 AM EDT3 min read

In This Article:
SDCH
-0.44%
WORCESTER, MA / ACCESSWIRE / September 9, 2024 / SideChannel, a leading provider of comprehensive cybersecurity solutions, is excited to announce the appointment of Dutch Schwartz as Vice President of Cloud Services, where he will spearhead the Cloud Security and Architecture practice. Schwartz brings a wealth of experience in cybersecurity, having most recently served as a Principal Security Specialist at AWS. He has an extensive background partnering with CISOs across complex global accounts to develop and execute cybersecurity strategies that deliver business value.

With an impressive track record, Schwartz has exceeded quotas greater than $100 million, led teams of over 100 members, created and delivered global training for 60,000 team members, and developed marketing strategies that have generated more than $300 million in revenue. His experience spans various industries, including global financial services, media and entertainment, energy, software, healthcare and life sciences, retail, and manufacturing.


"I'm thrilled to join SideChannel and lead the cloud security and architecture practice," said Schwartz. "With the rapid advancement of technology and the increasing threat landscape, it's crucial for businesses to have robust, scalable cloud security strategies. I'm excited to leverage my experience to help our clients navigate these challenges and build resilient, secure cloud environments."

Schwartz holds an MBA and cybersecurity certificates from MIT Sloan School of Management and Harvard University, as well as the AI Program from Oxford University. He is the author of "Securing Generative AI: Applying Relevant Security Controls," which explores the intersection of AI and cybersecurity.

Brian Haugli, CEO of SideChannel, expressed his enthusiasm for Schwartz's appointment: "We are thrilled to welcome Dutch Schwartz to our team. His extensive experience in cloud security and his ability to develop high-performance cultures will be invaluable as we continue to expand our cloud security and architecture practice. Dutch's strategic insights and deep understanding of cybersecurity will greatly benefit our clients and further strengthen our position as a leader in cybersecurity solutions."

In his role, Schwartz will focus on driving innovation within SideChannel's newly established cloud security and architecture practice , a key strategic initiative designed to enhance the company's service offerings. By expanding into cloud security, SideChannel aims to meet the growing demand for cloud-native solutions and infrastructure protection in today's rapidly evolving digital landscape. Schwartz will lead efforts to develop cutting-edge strategies that address emerging threats, improve security posture, and help clients build secure, scalable cloud infrastructures. This new practice is expected to generate significant incremental revenue in the next fiscal year , as SideChannel continues to grow its footprint in the cybersecurity market and deliver additional value to its clients by addressing critical gaps in cloud security.


By launching this practice, SideChannel positions itself as a comprehensive partner for organizations needing holistic cybersecurity solutions, further driving business growth and client success.

About SideChannel

SideChannel helps emerging and mid-market companies protect their assets. Founded in 2019, we deliver comprehensive cybersecurity plans through a series of actions branded SideChannel Complete.

SideChannel deploys a combination of skilled and experienced talent, and technological tools to offer layered defense strategies supported by battle-tested processes. SideChannel also offers Enclave, a network infrastructure platform that eases the journey from zero to zero-trust. Learn more at sidechannel.com.

Investors and shareholders are encouraged to receive to press releases and industry updates by subscribing to the investor email newsletter and following SideChannel on X and LinkedIn.

You may contact us at:

SideChannel
146 Main Street, Suite 405
Worcester, MA 01608
[e-mail]

Forward-Looking S

[candyldy]

Do now we are getting employees/ directors from AWS? Sidechannel must be the real deal!!!!!!

[vCISO]

https://www.linkedin.com/posts/brianhaugli_as-sidechannel-is-a-sponsor-for-next-weeks-activity-7236806792247148545-5e6o?utm_source=share&utm_medium=member_android

[vCISO]

https://www.linkedin.com/posts/brianhaugli_your-team-is-everything-what-weve-built-activity-7234547421073051649-1Exi?utm_source=share&utm_medium=member_android

[vCISO]

Trickle Research
3QF24 Earnings Update - SideChannel, Inc. (SDCH)
Dear Trickle Subscriber/Reader:

We have published an earnings update for SideChannel, Inc. The update is available through your login on our site: www.trickleresearch.com . If you have a problem with your login, please let me know and I will help you.

Here is an excerpt from the update:

In our view, management has done yeoman’s work driving down the expenses of the business to preserve cash and avoid added dilution. ... the fact that they have managed to continue to grow revenues and commercialize Enclave in the face of driving down expenses is impressive. ...we remain constructive on what we view as management’s considerable experience and knowledge of the cybersecurity space, as well as its ability to manage the business. As such we reiterate our allocation of 5 as well as our 12-24 month price target of $.23 as we think the next 12 months should provide improving positive visibility.

Thank you for your continued support of my platform. -dl

[vCISO]

Brian, I had a question at the CC but I also had a house full of Grandkids. Question, it seems we are only landing smaller contracts. Do we see a day when we will be securing larger companies and larger contracts with higher revenue? Government contracts possibly? Also are we going to expand the sales force now that we have someone solid in that area to train employees? We all know this company under your control is going to survive, that I believe in. But some of us are getting to an age where we would like to see a return on our investment before it’s to late…lol. Not complaining, just wishing for quicker growth and a higher share price some day sooner than later.

[vCISO]

?

Investor Relations Newsletter

for Current and Prospective Shareholders of SDCH

Continued Growth

SideChannel Inc. is showing signs of positive momentum and growth as highlighted during their Q3 2024 earnings call.

 

Key points from the call include:

 

1. Client Growth and Market Position: SideChannel has seen growth in both their existing and new client base, with clients continuing to view them as trusted advisors. The company is well-positioned in the market, particularly with their vCISO services, which are becoming increasingly popular among small and cloud-enabled companies.

 

2. Financial Performance: SideChannel has achieved positive cash flow for two consecutive quarters, a significant milestone for the company. The CFO, Ryan Polk, noted the success in reducing the gap between net loss and non-cash expenses, which was only $58,000 for the first nine months of FY 2024, down from $1.4 million a year ago.

 

3. Deferred Revenue: The company has experienced growth in deferred revenue, largely driven by an increase in selling third-party software and services with annual licenses. However, this has introduced some seasonality to their cash flow, which may result in lower cash balances in the next two quarters.

 

4. Strategic Focus on Enclave: The company is optimistic about the potential of its proprietary software, Enclave, which is positioned as a key component of zero-trust strategies. There is growing interest and proof-of-concept engagements with clients, indicating a promising future for this product.

 

5. Operational Efficiency: SideChannel has made significant operational improvements, cutting costs while still managing to grow revenue. These efforts have transformed the company into a positive cash flow entity, which is a major turnaround from its pre-July 2022 state.

 

6. Long-term Progress: The company has successfully navigated a challenging post-merger environment, evolving from a situation where it might have only survived a few more months without raising capital, to now being a sustainable and growing business.

 

Overall, SideChannel is progressing well, with strong client retention, strategic product positioning, and improved financial health, setting the stage for future growth. 

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