SideChannel Inc (SDCH)

[KnicksStockChamp]

The only opinion I had was the last sentence "I'd view a RS and uplist to a better board as a positive as it'd allow more investors to trade the stock and that would benefit everyone."

The rest were facts. Even my opinion here again is based in fact. A move to a better board would be beneficial as it allows for more access by investors. As I understand it not everyone can trade OTC stocks and low volume trading isn't good.

It would be good to hear your friends research. Otherwise it sounds like hot air. I can't find anything in the audits or filings that indicates anything like what your friend is concluding.

[22rover]

profits – it sounds like you’re suggesting something nefarious took place prior to this merger. Would you mind explaining what you mean by that? On the surface everything seems to be pretty standard, so I’m curious to know what you see from your perch.

[ProfitsSeeker]

You are entitled to your opinion, flawed as I believe it to be. First let me state I do believe SDCH is a legit company but the hard facts are many legit companies go bankrupt. When the acquisition of sidechannel was in the making I asked a friend (very experienced financial person)if he would research it and he did so. His research conclusions matched my own. Things are not always as they seem people do things for reasons they do not disclose. I am not suggestion anything illegal transpired. Some things happen in the financial world that are just above the paylevel of most.

I will not disclose my research conclusions mention above. In time some may reach the same conclusions as I did. Once again I do believe if the proper revenue is not achieved before the RS investors will again suffer a devastation of the stock price maybe even bankruptcy.

Again all the above are just my opinions.

[KnicksStockChamp]

A RS on a company that is failing and share price is falling AND needs to maintain it's share price to stay on a board is a bad sign. But based on how SideChannel is growing, revenue generating, no debt, and close to profitability, only on the OTC now, and not in financial hardship, a RS for them doesn't seem negative. Looking at the NASDAQ and NYSE requirements, a company needs minimum $4.00 share price to be listed along with float and a few other requirements.

Watching a few other cyber companies like $CISO and $HWNI, they're in similar yet different positions. CISO is on the NASDAQ and share price is falling due to lack of revenue and mounting debt. They need to do a RS to stay on the NASDAQ or move back to OTC. HWNI is on the OTC and looking to move up to a bigger board, although they have significant debt.

So both HWNI and SDCH are looking to uplist and probably won't have a share price increase organically to the $4 price in order to uplist. I'd view a RS and uplist to a better board as a positive as it'd allow more investors to trade the stock and that would benefit everyone.

[ProfitsSeeker]

In my opinion SDCH needs to have a market cap of 250 million or more before even considering a uplist or a RS. With their current balance sheet I will be totally shocked if a uplist is approved . Also at this time it does not appear to me that they have a product that can raise that type of revenue to reach that 250 million market cap. Again all the above are just my opinions.

[22rover]

You make good points. Most RSs are bad for shareholders.

In this case the company won't dilute below below .18. That's the level of the last raise took place. I suggest you read the filings in this regard.

If I were to guess, a RS happens alongside a move to a bigger board.

[ProfitsSeeker]

There can be a few exceptions but RS splits especially massive ones in my experience is a sign company executives believe the company is failing or might fail in the future. Massive stock dilution is more than likely to follow. I speak from considerable experience as past pension trustee on two pension funds that virtually no professional investment money will invest in a company with such a red flag present.
As an example when a bank has financial trouble do they do a reverse split to try and reverse their financial shortfalls ? No not if they care about the bank surviving because they know it further destroys their credibility with investors or depositors and will be avoided like people avoid a plague the same applies to all companies. RS splits are a telltale sign of a loser investment and that is certainly true of SDCH’s history of massive reverse splits. How many times does the cycle have to repeat its self before the lesson is learned.
That above is the hard truths I believe to revolve around RS splits. Again all the above are just my opinions.

[candyldy]

https://www.linkedin.com/posts/brianhaugli_cybersecurity-disclosure-for-issuers-activity-7153384753805631488-y-Io?utm_source=share&utm_medium=member_android

[vCISO]

https://www.linkedin.com/posts/brianhaugli_1-week-from-today-cyber-compliant-and-audit-ready-activity-7153487677428809728-wTv-?utm_source=share&utm_medium=member_android

[22rover]

Technically, $sdch is starting to look much better. Following the high-volune December blowout, where the stock traded below 2 cents, the stock has crossed the 50-day MA, and its now marching towards the 200-day. TA is far less reliable with the penny stocks, but it can still be useful. Keep in mind that most buyers are in North of .18 cents so I wouldn't expect to see significant sell volume until that level of potential resistance.

Positive developments:

The majority of warrant holders tendered their warrants.

The Board added two heavyweights
(I would imagine one of the two gentlemen will be selected as the new Chairman, following the annual mtg)
Nick Hnatiw will also join the Board - a sure sign of his commitment to this company.

Potential catalysts:

Major contracts for Enclave
Partnerships
DoD contracts
Cash infusion from big tech
M&A activity within cyber

[22rover]

Oh that's right. I forgot about the 24 month provision. Thanks for the info.

[ProfitsSeeker]

This company has a history of very massive stock splits. I stated when the last merger happened that without very substantial revenue increases the stock price would decline (I WAS CRITICIZED SEVERELY) BUT I WAS RIGHT and it has declined severely. Revenue Percentage increases are deceiving when starting from near zero revenue. Much more Revenue is needed not a STOCK SPLIT. I will state that without much more SUBSTANTIAL revenue this will become a sub penny stock. In addition the financial report was not good in my opinion and caused a further decline in the stock price. The cost of business with SDCH IS VERY HIGH. Since its inception the only people of this company who have financially benefited is the employees and officers and they have done very well. It is time the stock holder recognize the truth of where we are at. Once again all of the above are my opinions. I hope that I am proven wrong as massive losses have happened to my investment over the last ten years and that is not an opinion but a fact.

[vCISO]

I don't see a RS anytime soon. Shareprice needs to get to .25 - .50 before considering, imo. We need stability first. Obviously sales are stable but our share price is not.

But....I do understand the need to get to a higher more visible trading exchange.

[BrianHaugli]

The shareholders approved authority for the Board to do a R/S at the Feb 15, 2023 annual meeting. The vote granted the discretionary authority for two years (see below from the proxy statement).

To grant discretionary authority to our Board to (i) to combine outstanding shares of our common stock into a lesser number of outstanding shares, or a “reverse stock split,” at a specific ratio within a range of 1-for-2 to a maximum of a 1-for-100 split, with the exact ratio to be determined by our Board in its sole discretion; and (ii) effect the reverse stock split, if at all, within two years of the date the proposal is approved by stockholders;

https://www.sec.gov/Archives/edgar/data/1022505/000149315222036598/formpre14-a.htm

[22rover]

Brian - A few of us were wondering about a potential reverse split. I didn't see any verbiage around this in the most recent 10-K. Did I miss something, or is a RS off the table, at least for now?

[22rover]

Btw, debt-free SaaS companies don't trade at 1x revs.

With SaaS, it's not unusual to trade 7 to 10 X revenues —10 X revenues would put this at $70 million. This equates to a $.35 stock price. And that is based on the previous fy. This outfit is growing at ~ 35%

That's what the kids call a 10-bagger.

As soon as investors recognize the value here and buyers enter the mix, we will have ye old 🚀

Lots of patience here.

[22rover]

Consider this: side channel is being valued below yearly revenues. Conservatively, with a company whose revs are growing north of 30% year over year, a conservative 3X multiple puts this at $18 million.

such a cheap stock.

[vCISO]

Form 8-K - Current report

Source: Edgar (US Regulatory)

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

 

FORM 8-K

 

CURRENT REPORT

 

 

 

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): January 9, 2024

 

?

 

SideChannel, Inc.

 

(Exact name of registrant as specified in its charter)

 

Delaware 000-28745 86-0837077(State or other jurisdiction
of incorporation) (Commission
File Number) (IRS Employer
Identification No.)

 

146 Main Street, Suite 405, Worcester, MA 01608

(Address of principal executive offices) (Zip Code)

 

[phone]

(Registrant’s telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

?Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)  ?Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)  ?Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))  ?Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class Trading Symbol(s) Name of each exchange on which registeredCommon Stock, par value $0.001 per share SDCH OTC Markets Group (OTCQB)

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ?

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ?

 

 

 

 

 

 

Item 7.01. Regulation FD Disclosure.

 

On January 9, 2024, SideChannel, Inc. (the “Company”) issued a press release announcing the results of a product and industry research analysis, published October 10, 2023, performed by Trickle Research.

 

The information included in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. The information set forth under this Item 7.01 shall not be deemed an admission as to the materiality of any information in this Current Report on Form 8-K that is required to be disclosed solely to satisfy the requirements of Regulation FD.

 

Item 9.01 Financial Statements and Exhibits

 

(a) Exhibits.

 

Exhibit No. Description99.1 Press Release issued by the registrant on January 9, 2024.104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 SideChannel, Inc.  Date: January 9, 2024By:/s/ Brian Haugli Name:Brian Haugli Title:Chief Executive Officer

 

 

 

 

 

Exhibit 99.1

 

New Analyst Coverage Initiated on SideChannel

 

Cybersecurity Innovator SideChannel Gains Wall Street Attention

 

WORCESTER, MA / ACCESSWIRE / January 9, 2024 / SideChannel, Inc. (OTCQB:SDCH) (“SideChannel”), a leading provider of cybersecurity services and technology to emerging and middle market companies, today announced that Trickle Research has initiated research coverage of SideChannel with a 12-24 month price target of $0.18.

 

According to Trickle Research, “SideChannel is addressing the underserved mid-market segment of the cybersecurity industry, which we believe represents an opportunity for outsized growth. SideChannel’s unique ‘easy button’ approach to cybersecurity could gain significant traction among mid-market companies that often lack resources and expertise to combat today’s sophisticated cyber threats.”

 

SideChannel’s mission is to make enterprise-class cybersecurity accessible for mid-market and emerging companies. SideChannel offers a range of managed security services, security operations center solutions, and easy-to-deploy security technologies, such as Enclave, that provide customers with a simplified approach to cybersecurity.

 

Brian Haugli, CEO, said, “We are thrilled to gain the attention and support of Trickle Research. Their analysis validates our view that mid-market companies are underserved, and SideChannel is well positioned to capture this opportunity with our innovative, easy-to-use cybersecurity solutions and highly attentive customer service model.

 

According to Trickle Research, the global cybersecurity market is between $150 billion and $200 billion, with the fastest growth coming from managed security services and security operations centers. “SideChannel is targeting a niche within cybersecurity that should afford an opportunity for above average growth over the coming years. With a subscription-based business model and a focus on high-touch customer service, SideChannel also exhibits a highly scalable platform with a visible path to profitability, in our view,” the report said.

 

The full report published by Trickle Research can be accessed by clicking here.

 

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

[e-mail]

 

Forward-Looking Statements

 

This press release may contain forward-looking statements, including information about management’s view of SideChannel’s future expectations, plans and prospects, subject to the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 (the “Act”). In particular, when used in the preceding discussion, the words “believes”, “hopes”, “expects”, “intends”, “plans”, “anticipates”, “potential”, “could”, “should” or “may”, and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act and otherwise. Examples of forward-looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance.

 

Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause SDCH’s actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. These risk factors include, but are not limited to: that we have incurred net losses since inception, our need for additional funding, the substantial doubt about our ability to continue as a going concern, and the terms of any future funding we raise; our dependence on current management and our ability to attract and retain qualified employees; competition for our products; our ability to develop and successfully introduce new products, improve current products and innovate; unpredictability in our operating results; our ability to retain existing licensees and add new licensees; our ability to manage our growth; our ability to protect our intellectual property (IP), enforce our IP rights and defend against claims that we infringed on the IP of others; the risk associated with the concentration of our cash in one financial institution at levels above the amount protected by FDIC insurance; and other risk factors included from time to time in documents we file with the Securities and Exchange Commission, including, but not limited to, our Forms 10-K, 10-Q and 8-K. These reports are available at www.sec.gov.

 

Other unknown or unpredictable factors also could have material adverse effects that could cause actual results to differ materially from those projected or represented in the forward-looking statements. Further, factors that we do not presently deem material as of the date of this release may become material in the future. The forward-looking statements included in this press release are made only as of the date hereof. SideChannel cannot guarantee future results, levels of activity, performance, or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, SideChannel undertakes no obligation to update these forward-looking statements after the date of this release, except as required by law, nor any obligation to update or correct information prepared by third parties.

 

 

 

Cover

Jan. 09, 2024

Cover [Abstract] Document Type8-KAmendment FlagfalseDocument Period End DateJan. 09, 2024Entity File Number000-28745Entity Registrant NameSideChannel, Inc.Entity Central Index Key0001022505Entity Tax Identification Number86-0837077Entity Incorporation, State or Country CodeDEEntity Address, Address Line One146 Main StreetEntity Address, Address Line TwoSuite 405Entity Address, City or TownWorcesterEntity Address, State or ProvinceMAEntity Address, Postal Zip Code01608City Area Code(508)Local Phone Number925-0114Written CommunicationsfalseSoliciting MaterialfalsePre-commencement Tender OfferfalsePre-commencement Issuer Tender OfferfalseTitle of 12(b) SecurityCommon Stock, par value $0.001 per shareTrading SymbolSDCHEntity Emerging Growth Companyfalse

[vCISO]

January 9, 2024 7:00 AM
New Analyst Coverage Initiated on SideChannel
Cybersecurity Innovator SideChannel Gains Wall Street Attention

WORCESTER, MA / ACCESSWIRE / January 9, 2024 / SideChannel, Inc. (OTCQB:SDCH) ("SideChannel"), a leading provider of cybersecurity services and technology to emerging and middle market companies, today announced that Trickle Research has initiated research coverage of SideChannel with a 12-24 month price target of $0.18.

According to Trickle Research, "SideChannel is addressing the underserved mid-market segment of the cybersecurity industry, which we believe represents an opportunity for outsized growth. SideChannel's unique 'easy button' approach to cybersecurity could gain significant traction among mid-market companies that often lack resources and expertise to combat today's sophisticated cyber threats."

SideChannel's mission is to make enterprise-class cybersecurity accessible for mid-market and emerging companies. SideChannel offers a range of managed security services, security operations center solutions, and easy-to-deploy security technologies, such as Enclave, that provide customers with a simplified approach to cybersecurity.

Brian Haugli, CEO, said, "We are thrilled to gain the attention and support of Trickle Research. Their analysis validates our view that mid-market companies are underserved, and SideChannel is well positioned to capture this opportunity with our innovative, easy-to-use cybersecurity solutions and highly attentive customer service model."

According to Trickle Research, the global cybersecurity market is between $150 billion and $200 billion, with the fastest growth coming from managed security services and security operations centers. "SideChannel is targeting a niche within cybersecurity that should afford an opportunity for above average growth over the coming years. With a subscription-based business model and a focus on high-touch customer service, SideChannel also exhibits a highly scalable platform with a visible path to profitability, in our view," the report said.

The full report published by Trickle Research can be accessed by clicking here.

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
[e-mail]

Forward-Looking Statements

This press release may contain forward-looking statements, including information about management's view of SideChannel's future expectations, plans and prospects, subject to the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "believes", "hopes", "expects", "intends", "plans", "anticipates", "potential", "could", "should" or "may", and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act and otherwise. Examples of forward-looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance.

Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause SDCH's actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. These risk factors include, but are not limited to: that we have incurred net losses since inception, our need for additional funding, the substantial doubt about our ability to continue as a going concern, and the terms of any future funding we raise; our dependence on current management and our ability to attract and retain qualified employees; competition for our products; our ability to develop and successfully introduce new products, improve current products and innovate; unpredictability in our operating results; our ability to retain existing licensees and add new licensees; our ability to manage our growth; our ability to protect our intellectual property (IP), enforce our IP rights and defend against claims that we infringed on the IP of others; the risk associated with the concentration of our cash in one financial institution at levels above the amount protected by FDIC insurance; and other risk factors included from time to time in documents we file with the Securities and Exchange Commission, including, but not limited to, our Forms 10-K, 10-Q and 8-K. These reports are available at www.sec.gov.

Other unknown or unpredictable factors also could have material adverse effects that could cause actual results to differ materially from those projected or represented in the forward-looking statements. Further, factors that we do not presently deem material as of the date of this release may become material in the future. The forward-looking statements included in this press release are made only as of the date hereof. SideChannel cannot guarantee future results, levels of activity, performance, or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, SideChannel undertakes no obligation to update these forward-looking statements after the date of this release, except as required by law, nor any obligation to update or correct information prepared by third parties.

SOURCE: SideChannel



View the original press release on accesswire.com

[BrianHaugli]

Video with OTC Markets. Also this video interview with Eric at OTC offices in NYC.

[BrianHaugli]

OTC Markets article on SEC cyber rules. I contributed this article on navigating the new SEC cybersecurity rules for small and micro-cap publicly traded companies.

https://blog.otcmarkets.com/2024/01/08/navigating-the-new-sec-cybersecurity-landscape-a-guide-for-small-and-micro-cap-companies/

[vCISO]

Poised for a huge upward move here.

This is the year of the huge expansion of SideChannel.

#legitimate

[22rover]

Public float is minuscule 🧐

https://www.otcmarkets.com/financialReportViewer?symbol=SDCH&id=390309

[22rover]

General Brown on leadership:

https://podcasts.apple.com/us/podcast/the-military-leader/id1390954299?i=1000602860158

[KnicksStockChamp]

The need for zero trust segmentation in cybersecurity has never been more urgent. Traditional security models are no longer sufficient in defending against the evolving threat landscape. By adopting a modern cybersecurity mindset and embracing zero trust segmentation, organizations can significantly enhance their security posture, safeguard their digital assets, and stay one step ahead of cybercriminals.

New blog post
The Urgent Need for Zero Trust Segmentation in Cybersecurity

[22rover]

Gen Brown has 38 years of service. He attained the highest rank in the military, serving as a 4 Star General. Obviously he has extensive national security and leadership experience.

So, why will General Robert Brown – Director Nominee — prove instrumentall to SideChannel’s ascension?

Remember this initialism: CMMC.

The Cybersecurity Maturity Model Certification (CMMC) program is aligned to DoD’s information security requirements for DIB partners. It is designed to enforce protection of sensitive unclassified information that is shared by the Department with its contractors and subcontractors. The program provides the Department increased assurance that contractors and subcontractors are meeting the cybersecurity requirements that apply to acquisition programs and systems that process controlled unclassified information.

Happen to know a cybersecurity company that meets these requirements?

I do.

It’s always nice to have a 4 star general in your corner. #instantcredibility

source: https://dodcio.defense.gov/CMMC/About/

[vCISO]

I've never been so positive.

This is definitely a when and no longer an if.

[vCISO]

Once again I personally thank you Brian. This venture has been crazy to say the least and now we will have a 4 Star General on our board. One word comes to mind about what our company is now..... LEGIT.

Thank you for posting Brian, we all appreciate your transparency.

My votes will be yes across the board also.

[BrianHaugli]

New Directors to the $SDCH Board

I'm excited that the 14A is out. Obviously the biggest news is the nominations of Gen Brown and Jim Hansen. Both are incredible professionals and I'm very excited to work with both of them.

Gen Brown (and being former Army, I'll never call him Bob even while he keeps insisting ;) is a retired 4-star general in the US Army. His knowledge of the US government and Federal space is uncanny. We're looking forward to his role in helping us steer through to opportunities he sees SideChannel as a solid fit. His role as a leader at a national and global level will help us with company oversight and board matters immensely. Wiki - https://en.wikipedia.org/wiki/Robert_Brooks_Brown

Jim Hansen is a true veteran of the cybersecurity space, having started as a co-founder of Mandiant. You may have heard of them as they recently sold to Google for $5.4B. PR - https://www.mandiant.com/company/press-releases/google-completes-mandiant-acquisition. He's gone on to be a leader in a number of cybersecurity companies since. Jim's insights to cyber product and services is incredible. He's very excited about what we have with Enclave and sees the obvious potential and market fit.

I look forward to the nominees approval by shareholders, as I'm voting "Yes" across the proxy.

Happy New Year and here's to 2024!

Brian

[22rover]

14A filing

https://www.sec.gov/Archives/edgar/data/1022505/000149315224001162/formdef14a.htm

[22rover]

Robert Brown – Director Nominee

General (Retired) Brown has served as the Chief Executive Officer of the Association of the United States Army (AUSA) since October 2021. AUSA is the Army’s premier non-profit association that over the last 74 years has educated, informed and connected America with the Army. He graduated from the United States Military Academy, West Point in 1981 and served in critical leadership positions involved in disaster response operations, peacekeeping operations in Haiti, and Bosnia and combat operations in the middle east throughout his 38 years of service. He attained the highest rank in the military, serving as a 4 Star General with his final command position of the United States Army Pacific, with responsibility for 126,000 soldiers and half the earth’s surface in the Pacific theater. The Armed Services YMCA (ASYMCA) has benefited from General Brown’s participation on the National Board of Directors since April 2020 and he was recently selected to be the Chairman of the ASYMCA Board in January 2024. He earned a Master of Education from the University of Virginia and a Master of Science in National Security and Strategic Studies from the National War College where he was a Distinguished Graduate. We believe General Brown is qualified to serve as a Director because of his extensive national security and leadership expe

[22rover]

Really?— Welcome Redacted’s Jim Hansen to the SideChannel board?!

Cloud security company Redacted has appointed Jim Hansen, former chief operating officer and co-founder of Mandiant, to serve as CEO.

Hansen will replace Max Kelly, who will transition to the executive chairman role after serving as chief executive for the past seven years, Redacted said Monday.

“As a customer-obsessed leader with an extreme bias towards action, Jim is the perfect addition to our team to accelerate our global strategy of delivering nation-state cyber defense capabilities to organizations,” Kelly said of the newly appointed CEO.

Hansen started his career at the U.S. Air Force’s Office of Special Investigations where he carried out counterintelligence, counterespionage and undercover operations as well as investigated economic and felony-level criminal cases.

He also spent 10 years at Cofense as president and COO.

His appointment to the CEO position at Redacted comes five months after the company hired Tim Kosiba to lead its government subsidiary, Bracket f.

[22rover]

The Top 10 Zero Trust Security Solutions
Compare key features including user authentication, data segmentation, deployment, and pricing.

https://expertinsights.com/cdn-cgi/image/format=auto/https://expertinsights.com/insights/wp-content/uploads/2023/01/Picture10.png

Where does SideChannel fit / rank?

[22rover]

According to Microsoft’s Zero Trust Adoption Report 2021, 96% of the decision-makers in charge of cybersecurity currently believe that zero trust is critical for their company’s success. Also, 76% of them are in the process of implementing the model. More than a trend, zero trust is being viewed as a high priority and as one of the most interesting cybersecurity strategies around.

[22rover]

CAUSE: The increasing number of cyber-attacks are boosting the Zero-Trust Security Market growth.

EFFECT: Zero-Trust Security Market US $38 billion by 2025 - Global Insights on Trends, Regulatory Landscape, Value Chain Analysis, Key Stakeholders, Growth Drivers and Future Prospect: Adroit Market Research

[KnicksStockChamp]

Price target $0.18 with analyst coverage by Trickle Research. https://www.trickleresearch.com/side-channel-inc/

https://www.trickleresearch.com/wp-content/uploads/2023/10/SideChannel-Initiating-Coverage-10.09.23-NWM.pdf

[vCISO]

https://www.linkedin.com/posts/brianhaugli_sidechannel-begin-activity-7147256025073549312-SA-P?utm_source=share&utm_medium=member_ios

[vCISO]

https://sidechannel.com/sidechannel-complete/begin/

[22rover]

It’s been quite a week for data incidents. First it was Okta, now I get this from Xfinity:


Xfinity Data Security Incident

Notice of Data Security Incident

We are notifying you of a recent data security incident involving your personal information. This notice explains the incident, steps Xfinity has taken to address it, and guidance on what you can do to protect your personal information.


What Happened? On October 10, 2023, one of Xfinity’s software providers, Citrix, announced a vulnerability in one of its products used by Xfinity and thousands of other companies worldwide. At the time Citrix made this announcement, it released a patch to fix the vulnerability. Citrix issued additional mitigation guidance on October 23, 2023. We promptly patched and mitigated our systems.
However, we subsequently discovered that prior to mitigation, between October 16 and October 19, 2023, there was unauthorized access to some of our internal systems that we concluded was a result of this vulnerability. We notified federal law enforcement and conducted an investigation into the nature and scope of the incident. On November 16, 2023, it was determined that information was likely acquired.


What Information Was Involved? On December 6, 2023, we concluded that the information included usernames and hashed passwords; for some customers, other information was also included, such as names, contact information, last four digits of social security numbers, dates of birth and/or secret questions and answers. However, our data analysis is continuing, and we will provide additional notices as appropriate.


What We Are Doing. To protect your account, we have proactively asked you to reset your password. The next time you login to your Xfinity account, you will be prompted to change your password, if you haven’t been asked to do so already.


What You Can Do. We strongly encourage you to enroll in two-factor or multi-factor authentication. While we advise customers not to re-use passwords across multiple accounts, if you do use the same information elsewhere, we recommend that you change the information on those other accounts, as well. You can review the “Additional Information” section below for information on how you can further protect your personal information.


More Information. If you have additional questions, please contact IDX, Xfinity’s incident response provider managing customer notifications and call center support, at 888-799-2560 toll-free, 24 hours a day, 7 days a week. More information is available on the Xfinity website at www.xfinity.com/dataincident.
We know that you trust Xfinity to protect your information, and we can’t emphasize enough how seriously we are taking this matter. We remain committed to continue investing in technology, protocols and experts dedicated to helping to protect your data and keeping you, our customer, safe.


Sincerely,
Xfinity

[vCISO]

1.1 million shares traded before 11am.

Something tells me we are getting noticed. ;)

[vCISO]

Share price is crazy.

[vCISO]

https://www.linkedin.com/posts/brianhaugli_sdch-sidechannel-inc-10-k-2023-12-27-activity-7145904180610703360-zuyw?utm_source=share&utm_medium=member_ios


I might add that there are some interesting comments to this post by Brian.

[candyldy]

I was surprised it was 83 pages, promising read

[22rover]

I stand corrected...

$6.6M in revenues.

[22rover]

Realeased, as expected, on the day when the warrant tender offer was completed.

Looked over the 10K carefully. No red flags.

Positives were significant, starting with the NOLs.

For the uninitiated:

What Is Net Operating Loss (NOL)?
A net operating loss (NOL) occurs when a company’s allowable deductions exceed its taxable income within a tax period. The NOL can generally be used to offset a company’s tax payments in other tax periods through an Internal Revenue Service (IRS) tax provision called a loss carryforward.

It's a big deal when you consider SDcH has over $20M in NOLs, which can be used to offset future tax obligations. Now, because there has been a merger (it's complicated tax code), the actual figure might change. I have a phone call in with a soon-to-be retired CPA who will fill me on the amount of NOLs available to sidechannel.

Secondly, sidechannel has a ~$975 monthly lease in Massachusetts. As a shareholder, that is so reassuring. I admire and respect that level of frugality.

Nice quarter, Team side channel! Revs moving towards $7,000,000 and a growth rate close to 40%. Collectively, keep executing. Keep those cyber eyes on the prize.

[22rover]

$6.8M yearly revenues

$4M market cap

You read that correctly.

[vCISO]

10K is out.
https://app.quotemedia.com/data/downloadFiling?webmasterId=102691&ref=317950666&type=HTML&symbol=SDCH&cdn=037c48122e569f1ce71b0785e1e48847&companyName=SideChannel+Inc&formType=10-K&formDescription=Annual+report+pursuant+to+Section+13+or+15%28d%29&dateFiled=2023-12-27

[vCISO]

SideChannel Exchanges 2021 Warrants for Common Stock and New Warrants
WORCESTER, MA / ACCESSWIRE / December 27, 2023 / SideChannel, Inc. (OTCQB:SDCH) ("SideChannel"), a leading provider of cybersecurity services and technology to emerging and middle market companies, announced the successful completion of a tender offer with holders of certain 2021 warrants.

On November 7, 2023, SideChannel announced a tender offer to 101 investors who collectively possess 55.5 million warrants issued in 2021 with an exercise price of $0.36 and expiration dates between March 31, 2026 and April 16, 2026. The tender offer closed at 5:00 p.m., Eastern Time, on December 26, 2023, with 76 investors receiving, on a combined basis, approximately 7.3 million shares of common stock and 17.4 million new warrants in exchange for tendering 43.5 million 2021 warrants (78.4% of the total 2021 warrants).

"Our growth and industry leadership are positioning SideChannel for strategic opportunities. The 2021 warrants contain toxic terms that limit our options and impede our ability to take advantage of these opportunities. We have alternatives for working around the roadblocks presented by these warrants that don't involve the warrant holders, but we chose to work with these investors on a solution and we are appreciative of their support," said Brian Haugli, SideChannel's CEO. He added, "We are mindful of the patience investors have had with our company as we work through the merger and continue advancing Enclave. Our tender offer allows these investors to get immediate value from their 2021 warrants and increase their potential to benefit from our future successes."

The common stock issued through this tender offer represents approximately 3.3% of the total outstanding shares after the tender offer. The new warrants received by investors have an $0.18 exercise price, expire on December 31, 2028, have no restrictions on a cashless exercise, and feature an automatic conversion into common stock if the bid price exceeds $0.36 for 30 consecutive days.

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
[e-mail]

[22rover]

Didn't know where that was going, but I agree. The Q could surprise to the upside. $7.5M revenues for the FY? Looking for color around Enclave adoption…

Tender offer expires today after 4(!) months of “negotiations.”

Lastly, I doubt we see sub-.02 cents in 2024.

[vCISO]

All I want for Christmas is a blow out Q.

Please.