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SideChannel Reports Annual Results for 2022
NEWS PROVIDED BY
GlobeNewswire
December 21, 2022, 00:01 GMT
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Revenue Increase of 71% over 2021
/EIN News/ -- WORCESTER, Mass., Dec. 20, 2022 (GLOBE NEWSWIRE) -- SideChannel (OTCQB:SDCH), a provider of cybersecurity services and technology for emerging and middle market companies, today announced results for the fiscal year ended September 30, 2022. “Our 2022 performance demonstrates our continued strength and position in the market across both product and service delivery,” said Brian Haugli, Chief Executive Officer. “Our investments in sales and marketing, coupled with our expanding cybersecurity, privacy, and risk management capabilities, has proven to be effective at acquiring new clients and retaining existing relationships.”
2022 Fiscal Year and Key Metric Highlights:
Revenue increases 71% over 2021 to $4.8 million
vCISO revenue increased by 93% over 2021 to $3.1 million
Recurring vCISO revenue increased by 562%
Recurring software & services revenue increased by 367%
Ryan Polk, SideChannel’s Chief Financial Officer added, “To further substantiate the value that we are providing to our clients, our revenue retention was 76% and our gross margins improved from 45% to 48%. The Company ended the fiscal year with a cash balance of $3.0 million on September 30, 2022. We expect to continue to effectively use our cash to fund further growth and are excited about the future.”
SideChannel combined with Cipherloc in July, 2022 (“Business Combination”). The Company determined that SideChannel was the acquiring entity for accounting purposes. As a result, the historical financial statements of SideChannel are the historical financial statements of the combined company for Securities and Exchange Commission (SEC) financial reporting purposes. The Business Combination accounting resulted in one-time, non-cash charges of $11.9 million comprised of acquisition costs of $6.2 million and impairment of goodwill of $5.7 million.
Further information and analysis of the Company’s annual results, including Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's Annual Report on Form 10-K for 2022 fiscal year, can be accessed on the SEC's EDGAR system or in the Investors section of our website at sidechannel.com.
SELECTED FINANCIAL DATA
(In thousands except per share data)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA
For the Year Ended
September 30,
2022 2021
Revenues $ 4,789 $ 2,799
Gross profit 2,321 1,262
Recurring operating expenses 2,027 752
Acquisition costs 6,186 —
Goodwill impairment 5,702 —
Operating income (loss) (11,594 ) 510
Net income (loss) before income tax expense (11,581 ) 513
Net income (loss) after income tax expense (11,776 ) 513
Net income (loss) per common share (0.14 ) 0.01
Weighted-average shares 81,997,953 59,900,000
CONDENSED CONSOLIDATED BALANCE SHEET DATA
As of September 30, 2022 As of September 30, 2021
Cash $ 3,030 $ 348
Accounts receivable, net 612 178
Total current assets 4,142 832
Goodwill 1,356 —
Intangibles 4,940 —
Total assets 10,768 833
Accounts payable and accrued liabilities 786 212
Total current liabilities 1,161 406
Non-current liabilities 211 —
Total Liabilities 1,372 406
Total stockholders’ equity 9,396 427
About SideChannel
SideChannel is committed to creating top-tier cybersecurity programs for mid-market companies to help them protect their assets. SideChannel employs what it believes to be skilled and experienced talent to harden these companies' defenses against cybercrime, in its many forms. SideChannel's team of C-suite level information security officers possess a combined experience of over 400 years in the industry. To date, SideChannel has created more than 50 multi-layered cybersecurity programs for its clients. Learn more at sidechannel.com.
Interested investors and shareholders are encouraged to sign up for press releases and industry updates by registering for Email Alerts at https://investors.sidechannel.com/alerts and by following SideChannel on Twitter and LinkedIn.
SideChannel
146 Main Street
Suite 405
Worcester, MA 01608
Investor Contact
Scott McGowan
InvestorBrandNetwork (IBN)
Phone: 310.299.1717
ir@sidechannel.com
Media Contact
Jamie Szwiec
STiR-communications
954-647-0052
jamie@stir-communications.com
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", 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. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of SideChannel to be materially different than those expressed or implied in such statements. These risk factors include, but are not limited to, our ability to integrate the operations of the acquired company into our company; 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; that COVID-19 has materially adversely affected our operations and may continue to have a material adverse impact on our operating results in the future; our dependence on current management and our ability to attract and retain qualified employees; competition for our products; our ability to develop 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; 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 on SideChannel's future results. 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.
Corporate Communications:
InvestorBrandNetwork (IBN)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com
Let’s be clear. Sidechannel still needs to produce great numbers for the share price to rise. But having more eyes on the pie is a great way to get more investors interested in our company. I’ve never been a huge fan of promotional companies, believing instead that revenues will produce share price gains. In our case though we don’t have very many investors and bringing more interest should help with that. I’m interested to see what effect, if any, this partnership will produce. I believe strongly in Brian and look forward to watching him build this company for you and me.
InvestorNewsBreaks – SideChannel Inc. (SDCH) CEO Talks TikTok as National Security Threat on Fox Business’ “Mornings with Maria”
December 13, 2022
SideChannel Inc. (OTCQB: SDCH) CEO Brian Haugli was a guest on “Mornings with Maria,” a Fox Business program that features industry titans and economic experts discussing the major news and themes driving the business day and the market moves. Haugli discussed rising concerns that TikTok, an application owned by China-based DanceByte, presents a national security issue. Those concerns have been fueled by GOP leaders calling for the application to be banned and the FBI issuing a statement about the possibility that the Chinese government could use the app to control data collection on millions of users, control the recommendation algorithm or control software on millions of devices. “[TikTok] is an application that runs on your phone, widely popular, but this application has access to things on your phone that you might hold dear,” said SideChannel CEO Brian Haugli during the interview. “Your contacts, your locations, your buying intent, your shopping history, your browser history — everything that you probably want to keep private. That application has access to your phone in a way that could give them access to all of that information. Why it would be considered a national security threat, in my opinion, is that you’re now able to build a profile on every individual who is using that application. You’re able to take that information in aggregate, and in the hands of a foreign national, a foreign party, what could be done, right? . . . We have the opportunity to put pressure on Google and Apple to remove this application from the store. We have the opportunity to build better regulations within the United States and can actually set up infrastructure that could block access to this data or this data leaving our environment. It’s not something that the U.S. has set up today, and it’s something that I think we very much need.”
A provider of cybersecurity services and technology for emerging and middle-market companies, SideChannel also announced that it is partnering with InvestorBrandNetwork (“IBN”) for its corporate communications. IBN is a multifaceted financial news and publishing company for private and public entities. The agreement calls for IBN to leverage its investor-based distribution network of more than 5,000 syndication outlets along with multiple newsletters, social media channels, wire services and blogs to generate greater awareness for SideChannel.
To view the full interview, visit https://ibn.fm/wno68
To view the full press release, visit https://ibn.fm/i8dH4
About SideChannel Inc.
SideChannel is committed to creating top-tier cybersecurity programs for mid-market companies to help them protect their assets. SideChannel employs what it believes to be skilled and experienced talent to harden these companies’ defenses against cybercrime, in its many forms. SideChannel’s team of C-suite level information security officers possess a combined experience of more than 400 years in the industry. To date, SideChannel has created more than 50 multilayered cybersecurity programs for its clients. For more information about the company, please visit www.SideChannel.com.
NOTE TO INVESTORS: The latest news and updates relating to SDCH are available in the company’s newsroom at https://ibn.fm/SDCH
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I feel like Brian is trying to bring awareness to the company before they release strong news and revenues. I still believe that the objective is to uplist. Maybe once the price is steady about .20 they will reverse to $2 and uplist then? I'm open to thoughts on this. Hopefully others have opinions about this.
This is great news
I agree 1 million percent. SideChannel is in a great space. SideChannel has a great leader. SideChannel has great potential. SideChannel is putting together a fantastic team. SideChannel has my attention.
Great Listen. Brian chatting with Proactive.
https://www.proactiveinvestors.com/companies/news/1000549/sidechannel-moving-upstream-in-cybersecurity-1000549.html
Just couldn't help myself. Loaded up on more shares this morning.
Ok , Sean comes from a Bigtime position to join SideChannel….. https://www.herjavecgroup.com/about-us/executive-team/
There is no doubt this company has a future. People don’t just leave major companies like this to join a company that’s not going to make it big.
It’s not just that he is CEO of SideChannel but it’s about his qualifications for this interview.
He is introduced as Department of Defense Security Leader.
Let that sink in.
Brian is definitely a major player in the cyber security world.
Brian also did a fantastic job on Fox.
Check out our CEO on Fox Business News
https://video.foxbusiness.com/v/6315674219112/
Obviously Brian is far more connected in the cyber world than I thought.
SideChannel is definitely in the right hands.
I count 27 on the “Team” page.
SideChannel is expanding sales force. Let’s build this into a major company.
https://www.linkedin.com/posts/trent-bowling-459b85119_super-excited-to-be-expanding-our-team-again-activity-6996671849166233601-uJcn?utm_source=share&utm_medium=member_desktop
More good news…..
https://www.linkedin.com/posts/brianhaugli_sidechannel-to-present-at-investor-summit-activity-6994788484439777280-DMmJ?utm_source=share&utm_medium=member_desktop
SideChannel to Present at Investor Summit Group's Q4 Conference
Worcester, Massachusetts--(Newsfile Corp. - November 3, 2022) - SideChannel (OTCQB: SDCH), today announced that Brian Haugli, CEO, and Ryan Polk, CFO will be attending the Q4 Investor Summit live in New York City at the Sheraton Times Square. Management will be available for one-on-one investor meetings.
Event: Q4 Investor Summit
Date: November 14th, 2022
Presentation: November 14th at 2:00 P.M. ET
Location: Sheraton New York Times Square Hotel, 811 7th Avenue, W 53rd St, New York, NY 10019
Webcast: https://us06web.zoom.us/webinar/register/WN_HlM6VpcPQICKD4sGpNNmbQ
1x1s will be available for qualified investors
The conference is completely complementary to qualified investors. Please register at
Complimentary Investor Registration
About SideChannel
SideChannel (OTCQB: SDCH) is committed to creating top-tier cybersecurity programs for mid-market companies to help them protect their assets. SideChannel employs what it believes to be skilled and experienced talent to harden these companies' defenses against cybercrime, in its many forms. SideChannel's team of C-suite level information security officers possess a combined experience of over 400 years in the industry. To date, SideChannel has created more than 50 multi-layered cybersecurity programs for its clients. Learn more at sidechannel.com.
Investor Relations:
Matt Kreps
Darrow Associates Investor Relations
214-597-8200
mkreps@darrowir.com
About Investor Summit Group
The Investor Summit (formerly MicroCap Conference) is an exclusive, independent conference dedicated to connecting smallcap and microcap companies with qualified investors. The Q4 Investor Summit will take place in-person and virtually, featuring 50+ companies and over 300 investors comprised of institutional investors, family offices, and high net worth investors. Sectors Participating: Biotech, Communication Services, Consumer, Energy, Energy/Tech, Financial, Healthcare, Industrials, Materials, Real Estate, Technology, and Tech/Crypt. Contact: info@investorsummitgroup.com
These people aren’t coming to work for SideChannel for the help of it. SideChannel is a real company that obviously is growing each and every day. The share price will follow with the growing revenue.
#nodoubtaboutit
Another new hire
https://www.linkedin.com/posts/sidechannelsecurity_were-excited-to-share-matt-klein-is-joining-activity-6994366855586926593-mCHg?utm_source=share&utm_medium=member_desktop
AboutAbout
I have over 25 years’ experience as an IT and Information Security professional and leader covering operations and architecture for areas including end-user support, data center, and security within the healthcare and telecommunications industries. I hold the industry standard CISSP, CISA, CDPSE and CCSK certifications and am highly proficient at creating high-performing organizations by focusing on three elements of success: people, process, and technology.
I bring a collaborative and customer focused leadership approach to managing organizations, programs, and partnerships. I have successfully built and transformed large teams and programs by focusing on purpose, goals, relationships, and an unwavering commitment to execution. I enjoy establishing rapport with staff, customers, and leadership and can communicate up through the senior most levels of an organization.
https://m.facebook.com/story.php?story_fbid=565940468865939&id=100063499723696
https://mytechdecisions.com/category/it-infrastructure/
IT INFRASTRUCTURE, MANAGED SERVICE, NETWORK SECURITY
SideChannel Launches Enclave Microsegmentation Platform for SMBs
SideChannel's Enclave microsegmentation platform offers SMBs a solution to simplify and maintain a segmented network with minimal IT administration and maintenance.
September 23, 2022 TD Staff Leave a Comment
SideChannel Enclave Dashboard screen on laptop
SideChannel, the Worcester, Mass.-based provider of cybersecurity services and technology for emerging and middle market companies, announced the launch of Enclave, a microsegmentation software platform. The new platform is designed to offer small and midsize businesses (SMBs) a solution to simplify and maintain a segmented network with minimal IT administration and maintenance.
According to SideChannel, Enclave enables IT personnel to easily segment their company’s network, quickly organize individuals and machines to each individual’s workload level, then implement security controls across all segments. The platform sets the foundation for a Zero Trust network security model while shrinking the attack surface area exposed to intruders. The company says Enclave empowers IT to contain breaches faster, decrease outages, reduce latency, and strengthen the organizations’ overall security defense.
Related: Organizations Struggle to Implement Zero Trust
The Enclave platform was developed internally by SideChannel and its team of former chief security information officers (CISO). SideChannel says the Enclave platform was strategically designed and purposefully built to serve the growing security needs of SMBs, a traditionally underserved market that is more prone to cyberattacks but limited by smaller budgets, inadequate IT security staffing and lack of cybersecurity awareness among top executives,
“Small and mid-market companies are incredibly challenged by a lack of cost-effective means to comfortably and securely handle network management,” said one of the lead developers behind Enclave, SideChannel’s executive vice president David Chasteen, former CISO of GoFundMe and the San Francisco Police Department. “These companies want to focus on their business and their customers; not worry about who is accessing what server, or if the encryption installed is sufficient. We built Enclave to provide these companies an affordable and effective segmentation solution that significantly reduces the amount of effort required, through a simple and intuitive interface.”
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Unlike enterprises and large-scale businesses, SMBs often lack the IT security staff and resources needed to effectively implement a Zero Trust security framework and microsegmentation to protect the organization’s data and assets. Meanwhile, reports show cyberattacks on SMBs have increased in recent years as organizations’ network attack surface has grown exponentially with remote and in-office workers increasingly relying on cloud environments, mobile devices, software applications, and third-party suppliers to conduct business.
Related: Only 28% of SMBs Require MFA
Enclave’s introduction to the market represents SideChannel’s first product release, expanding upon its cybersecurity services in providing middle market companies with highly experienced virtual CISOs at a potentially lower cost than hiring a full-time CISO or building an in-house information security team.
Launched in 2017, SideChannel has continued to expand its service offering, workforce, and customer base. To date, the company has attracted over 20 vCISOs to serve more than 50 clients across industries, including fintech, biotech, healthcare, manufacturing, legal, defense and technology services.
“We are thrilled to add the Enclave product and its powerful capabilities to SideChannel’s diverse vCISO delivery platform as we continue to expand our capabilities in the middle market,” said SideChannel Chief Executive Officer and Founder Brian Haugli, in a statement “We believe every company, regardless of size, deserves the highest level of cybersecurity services and best-in-class technology solutions with terms and options designed specifically to meet their needs in a manner that works for their budgets.”
Yesterday
Event: LD Micro Main Event XV
Date: Wednesday, October 26, 2022
Presentation: 9:30 a.m. Pacific Time
Live stream: https://me22.mysequire.com/
Location: Luxe Sunset Boulevard Hotel, Los Angeles
For me, rather than me bashing on our new CEO for taking shares that are mostly restricted, I prefer to be thankful that we are finally a real company with real revenue and a real future. The fact that Tom Wilkinson chose to purchase shares just a few days after he was legally able speaks volumes to me. For that reason and a few others I remain a buyer of this company. Longer term, I believe in the technology/algorithm that we have and believe it will be a very valuable product in the not to distant future. Quantum computers are right around the corner and our technology will be very valuable when they are in use. Brian is a very smart guy. Not to mention all of the other people working for SideChannel. It’s not a one man show. This isn’t a bullship company any longer. Real revenue, Real profits, Real company, Real board of directors ,Real future
#aintmdlgsanymore