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OTC DISCLOSURE & NEWS SERVICE
SideChannel Strengthens Leadership Team with Key Promotions and New Hires
Press Release | 07/25/2024
WORCESTER, MA / ACCESSWIRE / July 25, 2024 / SideChannel, Inc. (OTCQB:SDCH) ("SideChannel"), a leading provider of cybersecurity services and technology to emerging and middle market companies, today announced the promotion of Matt Klein to Chief Operating Officer (COO) and the addition of David Barton as the new Vice President of Product. These strategic moves are aimed at bolstering the company's growth and success by further strengthening its leadership team.
Matt Klein Promoted to COO
In his new role as COO, Matt Klein will be responsible for growing SideChannel's delivery and services team, ensuring the company continues to meet the increasing demand for its comprehensive cybersecurity solutions. Reporting directly to SideChannel's CEO Brian Haugli, Matt's leadership will be crucial in driving operational excellence and enhancing client satisfaction.
David Barton Joins as VP of Product
SideChannel is also pleased to welcome David Barton as the new Vice President of Product, also reporting to Haugli. David will focus on driving sales of SideChannel's Enclave solution, a zero-trust network microsegmentation software product. His expertise in product management and sales will be pivotal in expanding the market presence of Enclave and advancing SideChannel's position as a leader in the cybersecurity industry.
Haugli expressed his enthusiasm for the new appointments, stating, "We are thrilled to promote Matt Klein to COO and welcome David Barton to our team. Matt has been an invaluable asset to SideChannel, and his promotion is a testament to his dedication and exceptional leadership. We are equally excited to have David onboard. His extensive experience and vision for product growth will be instrumental as we continue to innovate and deliver top-tier cybersecurity solutions to our clients."
About SideChannel
SideChannel helps emerging and mid-market companies protect their assets. Founded in 2019, the Company delivers 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
Hey Barber - good catch. I assumed it was for revenue per employee. The thing is, at least in side channels case, revenue per employee is roughly $390,000, based on $9 million of revenue per year. So both ratios are close.
I have heard of people tracking revenue per employee, or profit per employee, but never market cap per employee...
It seems pretty irrelevant. Am I missing something?
Thank you! RE: Partner program - we've just recently put more attention on it. Most vCISOs here are W2 employees and this partnership program is not geared towards indiviuals vCISO contractors to come on as 1099s. It's actually for more channel sales opportunities.
Many MSPs/MSSPs provide SOC and other managed services to their client base. Most also "say" they offer vCISO services, but really don't and definitely not at the caliber SideChannel does. With David Menichello onboard leading this channel growth, we want to grow as the bench/back-end to many MSP/MSSPs to provide vCISO services (and subsequently Enclave sales) to their clients.
Today's press release mentions our other new sales team hire, Davd Barton (we now have a lot of Dave's) to lead Enclave sales growth into MSP/MSSP space and enterprise.
That’s an impressive ratio. You oversee a streamlined and efficient company, your costs are under control, and SideChannel is more productive than many / most of its competitors. I would say that a half million dollars per employee is about double the high-end of the range. Incidentally, Apple employees generate $2.4 million in revenue. Of course they’re the best of the best. I’ll take ~ $500K per employee, believe me.
I recently noticed SDCH has a partner program, where vCiSOs can partner with you, using the sidechannel platform. Is this a new rollout or is this something that’s been available for a while? I guess I always assumed your vCISOs were sidechannel employees, and not independent contractor/partners. Anyhow, whether it’s a new initiative or something that’s established, partnering provides a great opportunity to develop scale. If each vCiso generates close to a half million dollars, it doesn’t take much to get up to $20 million in revenue. How is partnering going? Anything new? Have you bolstered your sales team?
True. But the share price is currently too low to do an acquistion. We will all get wiped out. It has to grow organically to a $1 I would say before dilution is reasonable.
Well I keep hoping that something huge happens here but who knows. Some kind of merger or acquisition? It's gonna be tough waiting for 2 more years for this share price to move. I'm getting old ....lol
What does everyone think of the potential Google deal to acquire Wiz for 23 bil. Founded in 2020 with most recent annual revs of 25 mil?
Seems like a huge buyout premium. Don't know enough to understand the product and whether they are doing it to protect their data centers or become a cyber security provider reseller? Would they want our PEC for 1 bil :)
Relm Partners with SideChannel to Enhance Cybersecurity for Clients
https://www.prnewswire.com/news-releases/relm-partners-with-sidechannel-to-enhance-cybersecurity-for-clients-302183507.html
Sounds like he might be going to work for another cyber company. No big deal
The James Hansen tenure is officially over. Talk about a quick exit!
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On June 18, 2024, James Hansen, a member of the Board of Directors (the “Board”) of SideChannel, Inc. (the “Company”) resigned from his position on the Board. The resignation was not a result of any disagreement on any matter relating to the Company’s operations, policies, or practices. Mr. Hansen’s resignation allows him to pursue and focus on expanding responsibilities at other companies.
Item 9.01 Financial Statements and Exhibits
Somebody obviously got tired of waiting. 1.2 million shares worth of tired.
Small potato's..... I cant wait until this actually gets moving.
#retirementplan
$7K moves $sdch stock 40% today.
#coiledspring
Note from Brian Haugli
CEO, SideChannel
SideChannel is thrilled to welcome David Menichello to the sales team as our VP of Partnerships. In this role, David will focus on expanding our growing channel and partner network, helping to bring SideChannel's vCISO services and Enclave to a larger market.
David joins us from Netrix, where he led the Security Advisory practice, including offensive security and vCISO programs. With 25 years of experience in Information Security and extensive global expertise in fintech, software, and services, David is poised to drive significant growth and innovation for SideChannel.
Note from Ryan Polk
CFO, SideChannel
We achieved our first quarter of positive cash flow from operations during our second quarter ended March 31, 2024. Our cash balance grew from $819,000 at December 31, 2023 to $851,000 at March 31, 2024.
Consistent revenue growth has been part of this story as have the significant reduction in operating expenses. Our revenue in the first six months of fiscal year 2024 was 16% higher than the first six months of fiscal year 2023. Our operating expenses were $835,000 lower through the first half of fiscal year 2024 compared to the same period in the prior year.
When we have had consecutive quarters with positive cash flow from operations, we will consider incremental investments in selling and marketing capabilities to grow our services business along with our Enclave install base.
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3rd Quarter Close - June 30, 2024
Financial Results Call - August 7, 2024 @ 4:30 PM ET
Agreed. Always interesting to read about developments.
After looking through the most recent Q and listening to the call, it dawned on me that SideCh is likely only a handful of new service side clients or a few software contracts away from reaching breakeven.
If I understand correctly, each service side client (vCiso) is good for ~ $200K (up to $300k) in revs (based on avg contract size).
I think the company lost $253K in the quarter. If that plays out over the next few quarters, they'll look to start putting cash in the bank. Add a govt software deal, which promises to be bigger than a service contract, and we’ll be in the black before long.
Brian/Ryan also expect gross margins to improve in the next couple of quarters. I think they need roughly $1.2M additional yearly revs to breakeven. IMO, that's both a modest increase in revenues, approximately 15% going forward, which is in line with the recent trend.
I'm positively thrilled with direction.
Seriously good stuff in the blog
Can you provide a link to this???
So, our CEO was one of the few invited to the white house to discuss cybersecurity for space exploration. Exciting development
There is Definitely no doubt that we have some serious investors here in SideChannel. When it starts to move, I expect it to make a pretty nice move. Everyone seems to be holding on tightly.
I know I am!!!!
#SideChannel
“We are poised for unprecedented growth and innovation, driven by our strengthened leadership team.”
A meaningful quote.
Mothers Day notes:
16% rev growth yoy
No debt
Approaching profitability
DoD putting a toe (w/Enclave) in SDCH waters
75% rev retention on the services side
I believe it was named something like Seneca Advisors. Can't be sure.
NT2 — that’s an interesting tidbit re the firm contacting you about potentially unloading your sidechannel stock. Maybe you could check your phone log and cross reference the number. We would be interested in which boutique outfit was making inquiries.
As we’ve discussed, there’s very little stock available below .18c imo.
Let’s say Sidechannel does $9 in yearly revs, remains debt free, becomes cash flow positive, expands margins, etc., then the stock will / should trade 3-5x revenues, putting it at .17-21 cents.
As an aside, can anyone share the NOLs situation with SDCH? It must be substantial (good thing).
The only call came from Richard Reiter, a shareholder who bought in during the second Paulson raise. According to an S-1 from April ‘21, Reiter owns about 350,000 shares, or about $20,000 worth of stock. Of course he may have bought (or sold) shares since 4/21.
Decided to go down the rabbit hole…
Other notables who took positions in the $10M April 2021 Paulson underwriting: Ken May 5.5M shares. While it’s a common name, how many *Ken Mays are there, taking down a cool $1M in a highly spec offering? His $1M investment is currently worth ~$300k
(*can’t absolutely confirm 100%, but a guy like May has many different accounts / brokers, so it wouldn’t be uncommon to use a boutique such as Paulson, who, like May, have a Memphis footprint. By the way, Ken, you might want to DCA here, provided you can locate 5.5M shares at these dirt cheap levels—it *may* take a while. Deep pockets. Might want to touch base with May, or overnight him a proposal.)
Cleto Escobedo III took down 300,000 shares in the 4/21 offering. For the uninitiated, that’s Cleto of Cleto & the Cleotones, Jimmy Kimmel’s band. Hopefully the famous saxophonist won’t be singing the blues for long.
Other well-heeled buyers include
Clayton A Struve
Oil Man, Lucius E Burch III / iv
Time to ✈️
22. I just checked the report that they send us. Thank you to everyone how joined. Always love hearing questions on the calls!
I think we (or the webcast provider) makes the transcript available at some point within the next few weeks.
Does anyone know how many people were on the earnings call yesterday?
Nice earning report Brian. Keep up the good work. My hunch is the company plans to grow organically and become cash flow postive first. This makes sense since funding an acquistion at such a low share price would be prohibitively dilutive. I am probably not a big fan of the dilute to grow at all costs that some companies take which probably would not be rewarded in the current high interest rate environment.
With regards to the PEC. My hunch is that technology that enables zero trust including microsegmentation and good employee governance including a vCISO maybe more valuable in protecting companies data that the best encryption tech. I am not aware of any company being hacked YET because the perpetrators broke their encryption. It may be possible that a large tech company like Apple who prides themselves in offering "premium products and customer security" might be interested in such a product over the "free" options endorsed by the federal government.
We have the patents and own the tech, we should showcase it on the website to capture any interest possible. As nt2innovate said, the Federal government made decisions already on encryption that Cipherloc was not part of with the PEC.
Great question and a few answers. There's no 800-53 certification. That standard is primarily for accreditations within the Federal, but mostly DoD, environments. That can apply to a whole network or a single system. As a company, we aren't looking at that control standard as something reasonable to follow.
FedRAMP is a version of 800-53 that applies to software that is cloud based, or SaaS, that the government wants to use. We could be looking at getting Enclave through FedRAMP if the timing and cost make sense (it's a long and costly process). There's plenty of ways to sell into the government without having to go through FedRAMP.
Figure I'd hand deliver our Q2 10Q to this group. See you on the conference call. You can still submit questions to us via ir@sidechannel.com until 4pm ET today.
https://investors.sidechannel.com/sec-filings
I wonder if we are NIST 800-53 certified?
Or if we are FedRAMP certified?
Saw that as well. Wonder if it is just being used to showcase the full company tech potential or if they now see interest from clients for the product. I discussed with Brian in the past and he mentioned that feds had already agreed on post quantum encryption standards a few years ago via competition which Cipherloc never bothered to enter. I suppose those standards could always evolve with all the cyber attacks that we see now days.
Interestingly, some family office financial company (forgot the name) called me a couple of weeks ago and left message asking if I want to sell my Paulson shares. Not sure if that has any relation to the recent activity. I am still accumulating as well.
Good luck tomorrow Brian.
May 2, 2024 8:00 AM
SideChannel, Inc. Announces Financial Results & Corporate Update Conference Call
Second Quarter Conference Call & webcast on May 7, 2024 at 4:30 pm ET
WORCESTER, MA / ACCESSWIRE / May 2, 2024 / SideChannel, Inc. (OTCQB:SDCH) ("SideChannel"), a leading provider of cybersecurity services and technology to emerging and middle market companies, announced a change in its schedule for releasing the fiscal year 2024 second quarter financial results from May 8, 2024 to May 7, 2024. The call will be held at 4:30 pm Eastern Time.
SideChannel's second quarter ended March 31, 2024.
SECOND QUARTER CALL INFORMATION
Date: Tuesday, May 7, 2024 at 4:30 P.M. Eastern Standard Time
Dial In: Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 789473
A webcast of the call will also be available: https://www.webcaster4.com/Webcast/Page/2071/49678
Participants may register in advance for the call using the webcast link.
The call will include management remarks and a live question and answer session. Questions may be submitted prior to the meeting using ir@sidechannel.com.
About SideChannel
SideChannel helps emerging and mid-market companies protect their assets. Founded in 2019, the Company delivers 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.
SideChannel
146 Main Street, Suite 405
Worcester, MA 01608
Investor Contact
Ryan Polk
ir@sidechannel.com
Interesting.....on the website under products.....
Enclave
RealCISO
AND...
Polymorphic Encryption Core (PEC)
Good for you, vCiso. I think you'll be rewarded handsomely.
Business Description: SideChannel, Inc. (the “Company” or “SideChannel”). Effective July 5, 2022, the Company changed its name to “SideChannel, Inc.” following its acquisition of SideChannel, Inc., a Massachusetts corporation, on July 1, 2022. SideChannel is committed to creating top-tier cybersecurity programs for mid-market companies to help them protect their assets.
Our mission is to make cybersecurity easy and accessible for mid-market companies, a market that we believe is currently underserved. We believe that our cybersecurity offerings will identify and develop cybersecurity, privacy and risk management solutions for our customers. We anticipate that our target customers will continue to need cost effective security solutions. We intend to provide more tech-enabled services to address the needs of our customers, including third-party risk management, due diligence, privacy, threat intelligence, and managed end-point security solutions. To supplement our legacy licensing program, we are building our own applications that we intend to sell directly to enterprises and managed security service providers. Enclave our first internally launched product, is designed to be an easy-to-use platform for organizations that are seeking to control communication between devices; and to fully encrypt traffic between those devices. Enclave is designed to provide a simple and cost-effective solution for multiple devices, as compared to current complex cost-prohibitive solutions, which we believe require technical personnel to operate. Enclave is designed to make microsegmentation available to everyone at a low cost, and with minimum technical administration.
IR Page: https://investors.sidechannel.com/
IR Email: ir@sidechannel.com
DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE
The CEO, directors, and officers of the Company will hold office until additional members or officers are duly elected. The background and principal occupations of the directors and officers of the Company are as follows:
Debbie MacConnel, Chairwoman of the Board, Independent Director, has been involved in the computer industry for 34 years, retiring recently from the IBM Corporation after 28 years. Prior to her retirement, Ms. MacConnel was instrumental in transforming information technology for IBM’s human resources function, which supported up to 450,000 employees. Ms. MacConnel’s team at IBM was also responsible for transforming the succession planning process for executive selection and promotion, along with enhancing the processes for mergers and acquisition management and talent acquisition. Ms. MacConnel qualifies as an independent member of the Company’s Board of Directors. LinkedIn bio: https://www.linkedin.com/in/debbie-macconnel/
Brian Haugli, Director, President & Chief Executive Officer, has been the CEO of SideChannel since September 2017. Since October 2020, Mr. Haugli has been the founder of RealCISO, a cybersecurity risk assessment SaaS platform, and has been the creator and host of #CISOlife YouTube and Podcast since August 2019. Mr. Haugli was an Adjunct Professor at Boston College from June 2020 through January 2022, an advisor to Zscaler from September 2019 to 2020, and worked for the Hanover Group from May 2015 to April 2019, most recently as VP, Chief Security Officer. LinkedIn bio: https://www.linkedin.com/in/brianhaugli/
Ryan Polk, Chief Financial Officer, brings more than 25 years of experience in executive and financial roles at companies ranging from emerging growth to the Fortune 500. Mr. Polk has been the principal of Perissos Partners, an executive consulting firm, since June 2017. While at Perissos, Mr. Polk served in CFO roles at Generation Next and Cellpoint Corporation. From July 2011 to May 2017, Mr. Polk served in executive roles in the portfolio companies owned by Lacy Diversified, a family office based in Indianapolis, IN which actively managed investments in distribution, light manufacturing, and supply chain management with combined revenue approaching $2 billion. He also led the mergers and acquisition team for Lacy. From August 2008 to June 2011, Mr. Polk served as the Vice President for Corporate Financial Planning and Analysis for Brightpoint, a publicly traded, Fortune 500 mobile device logistics company, based in Indianapolis, IN prior to its sale to Ingram Micro. He began his career at Ernst & Young in the firm’s tax consulting group. Mr. Polk earned a Bachelor of Science in Accounting and Industrial Management from Purdue University – Krannert School of Management in 1990. Mr. Polk is also a certified public accountant (inactive). LinkedIn bio: https://www.linkedin.com/in/ryan-polk/
Hugh Regan, Independent Director, recently retired from his role as Secretary, Treasurer and Chief Financial Officer of inTEST Corporation, a publicly traded manufacturer of capital equipment used in the semiconductor industry and other markets, and currently works as a private consultant to businesses, assisting them with various strategic issues. Mr. Regan served in his roles at inTEST for just over 25 years, from April 1996 until June 2021. From 1985 to April 1996, Mr. Regan served in various financial capacities for Value Property Trust, a publicly traded real estate investment trust, including Vice President of Finance from 1989 to September 1995 and Chief Financial Officer from September 1995 until April 1996. Mr. Regan qualifies as an independent member of the Company’s Board of Directors and will serve as the Chairperson of the Company’s Audit Committee. LinkedIn bio: https://www.linkedin.com/in/hugh-regan-50a1201/
Kevin Powers, Independent Director, is the founder and director of the Master of Science in Cybersecurity Policy and Governance Programs at Boston College and is an Assistant Professor of the Practice at Boston College Law School and in Boston College’s Carroll School of Management’s Business Law and Society Department. Mr. Powers is also a Cybersecurity Research Affiliate at the MIT Sloan School of Management, and he has taught courses at the U.S. Naval Academy, where he was also the Deputy General Counsel to the Superintendent. Mr. Powers qualifies as an independent member of the Company’s Board of Directors. LinkedIn bio: https://www.linkedin.com/in/kevin-powers-54893a8/
5/17/22 - 87,560,647
4/3/23 - 149,571,281
11/24/23 - 214,041,082
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