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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.
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
Thoughts on the new monthly investor newsletter?
Didn't get it? Read the blog version and sign up at the link to receive this monthly as an email. It will include a note from myself and our CFO, Ryan along with upcoming events, industry news, and other info. We anticipate this sending out ever month around the end of each month.
https://sidechannel.com/investor-newsletter/sidechannel-sdch-march-2024-investor-newsletter/
So you hear it from me first ;) SideChannel CEO buys $3,675 in company stock
https://www.investing.com/news/stock-market-news/sidechannel-ceo-buys-3675-in-company-stock-93CH-3342756
Bold indeed.
Yes, today we welcome 3 new board members and re-elected Debbie as Chairwoman.
https://investors.sidechannel.com/board-of-directors
Our Bylaws call for the slate of Directors to be put forward for each year. As such, we reestablish each committee membership, committee chair, and Chair of the Board after the new Board is in place.
Thank you everyone who joined the earnings call today!
The share price on the date of the merger on July 1 was $0.10. Looks like there was a lot of early hype trading in July that peaked around $0.18.
Having access to the shareholder lists for the company and cross referencing when you got into the stock when it was NSCT/CLOK gives me some insight on your "losses". SDCH has been thinly traded since the merger and is indicative of being on the OTC with a formerly poorly performing company (CLOK) that had no revenue. There has not been much volume with most days in 2022 not going above 30k volume (or around $3000). These are day trading retail investors with small positions. Most "older share holders" are larger positions that came in back in 2018 and 2021 through Paulson. I'm not sure how we qualify $6.5m as small, but we ARE a micro cap stock, so it seems appropriate. We're trading at just above 1x to our revenue. I obviously see our value as higher. If you want big, invest in Microsoft.
Checking my notes, posts, and talks... I've never said I don't care about shareholders. There's a difference between caring and being realistic about what you've previously invested in.
My message has been clear since I met this board and took us public. We're SideChannel. We have a plan, a product, and services that will enable us to grow the company and provide shareholder value over the long term.
Obvious typo on the last line for the year. Should read:
SDCH 2023: $6,572,000
As I've said in each investor call, SideChannel is a new company, and we're looking at what's happened from July 2022 an onward. SideChannel saw value in Enclave and the public company structure. For that, SideChannel acquired/merged our revenue generating, debt free and profitable company with CipherLoc.
You're loses were from NSCT and CLOK, not SDCH. Both had zero revenue and no growth from what I saw. People need to accept their past decisions and losses in those previous companies. I'm not here to make up in any way for what NSCT or CLOK didn't do for you.
Revenue by year:
CLOC 2019: $0
CLOC 2020: $0
CLOC 2021: $0
CLOC 2022: $0
SDCH 2024: $6,572,000
I have to laugh at some of the stuff I read on this board.
Anyway... I'm looking forward to 2024 and beyond. Late development, looks like I'll be speaking at the upcoming Microcap Conference in Atlantic City next week. I recently did a podcast with Andrea Cataneo from MSK, and she's invited me to join her in a fireside chat at this conference to discuss the SEC cyber rules. There's also non-deal roadshow talks going on :)
Microcap Conference website: https://themicrocapconference.com/
Also, if anyone wants to learn about the new SEC cyber rules, I've got another webinar co-hosted with FKKS this week.
SEC Webinar Registration: https://sidechannel.zoom.us/webinar/register/WN_J8nPDUSAS0-US-aGDmOXrw#/registration
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
Video with OTC Markets. Also this video interview with Eric at OTC offices in NYC.
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/
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
Triangle InfoSeCon Keynote - ISSA Raleigh 2023 - Brian Haugli - What does good look like?
I've been waiting for the edits on this video and wanted to share. This is my keynote from ISSA's Triangle InfoSeCon back in October. Thought you'd all appreciate the talk.
YouTube LINK -
Should it? The idea may benefit SideChannel, but not for certain. Can SideChannel buy RealCISO is the better question. When you review the public filings, SideChannel is not currently at a place to make a reasonable cash offer or to make a stock offer that wouldn't be noticeably dilutive. Also to consider is that I'm not the sole owner of RealCISO, in fact, I don't own more than 50% of RC anyway. So anything would need to be meaningful to the others not just me.
As I've said before (to you specifically vCISO as well), published in filings and you acknowledge here - RealCISO (RC) is and has been a separate company & IP since mid 2020. Well before SideChannel or I was aware of what CipherLoc even was (merger was June 2022). There was no room in the merger deal to include RC or desire by the founders of it to do so. I've used this analogy before; just because I parked my car in the garage, doesn't mean it's for sale when I list my house. They are separate assets.
Having said that, SideChannel does resell RC to clients and SideChannel gets a significant margin in selling it. If it wasn't RC, it'd have to be another GRC type tool and it would be less margin. The benefit to us using it with clients is higher margin for SideChannel on the resale, direct input into RC's development roadmap, and product market alignment.
SideChannel could cut it's use of RC, but we'd have to shift clients to another platform for all risk management tracking, increase our price to clients (RC is considerable lower price than competitors), and decrease our profit margins (again, RC is giving SideChannel a considerably better amount margin room to resale).
This move wouldn't be in the best interest of clients, the company or shareholders.
As for the rest of the asks in this post... we're finishing our upcoming filing for the 10K so I cannot comment.
Yes, I'll be the keynote speaker for this conference on Friday in Raleigh, NC.
https://www.triangleinfosecon.com/
New features released today in Enclave. New Asset Inventory module transforms SideChannel Enclave into a network management infrastructure platform; expands functionality beyond microsegmentation.
https://www.accesswire.com/viewarticle.aspx?id=776397
These are part of a marketing initiative via social media. I can tell you that the wider the audience is aware of you, the more business you get. That first post alone has over 100k impressions on LinkedIn. For that platform, that's a lot. Goal is to create awareness, some funny, some serious (like most of our content out).
Thanks for the continued support!
Thanks! I did that interview a while ago when the law was proposed. Looks like it's making waves in Montana.
Thanks! I checked the site and the API link works, it opens in a new tab. I'll tell the dev team about the typo; good eye!
https://docs.enclave.sidechannel.com/
I'm really looking forward to this one! Very excited to be the keynote for this ISSA conference. I'll also be there to do a book signing of "Cybersecurity Risk Management: Mastering the Fundamentals Using the NIST Cybersecurity Framework"
https://www.wiley.com/en-us/Cybersecurity+Risk+Management:+Mastering+the+Fundamentals+Using+the+NIST+Cybersecurity+Framework-p-9781119816287
Enterprise CISOs do suffer from burn out. Our difference, and why you don't see turnover in the vCISO team at SideChannel, is our culture. We support our vCISOs on their delivery to clients and internally as employees. Our customers are also leaning in much more than F500 enterprises on making changes to better their security posture. This is professionally fulfilling to our vCISO (or anyone here!). The tech enablement we package with our vCISOs also reduces the impact because they have what they need to be successful.
I do believe that building programs based on standards and frameworks, coupled with the right leadership for governance and reporting is essential to reducing both the likelihood of a breach and the impact of one should it happen.
Thanks for the follow-up. I've stated in the investor day call and the calls each quarter; I can't speak to what Cipherloc did or was prior to July 1, 2022 when we merged and became SideChannel, Inc. I was not part of that legacy company or vision. Shareholders and the public need to view this as a new public company, with revenue, a business strategy, and a mission that's being executed by a professional team with a solid track record for success.
FIPS 140-2 certification is one, and a key requirement, that the US Federal government expects met for certain software usage and procurement. A FIPS 140-2 certification isn't an endorsement by NIST. It means that the software meets the requirements outlined in FIPS 140-2 (https://csrc.nist.gov/publications/detail/fips/140/2/final). NIST sets the standard and publishes it; they are a standards body. It's up to a company and a 3rd party auditor or assessor to review if a product or solution then meets the FIPS 140-2 standard as published by NIST.
We are in the process of finalizing our next 10Q, so I'm limited in my responses (as a reference, this will be standard going forward as we enter this time each quarter).
NIST did identify the standard for PQC, but they haven't finalized it yet. Enclave has the capability to include different encryption algorithms. This would allow customers to select the algorithm they want to use to secure their environment, network, and/or traffic as they microsegment. We will be advancing the availability of PQC in Enclave as part of our current R&D roadmap.
From the Abstract:
No, John no longer is working with the company after the merger last year. The team in place can be found here: https://sidechannel.com/about/team/
The Board can be found here: https://investors.sidechannel.com/corporate-governance
They are not intertwined or competitive. RealCISO is an assessment and analysis platform that's used by companies, consultants, and other to understand the cyber risk. SideChannel uses and resells RealCISO with it's clients.
We thought at the time that we could present it to investors and by separating RealCISO into a different company with it's own cap table, it'd be easier to run as a pure product company should we seek investment. To date it hasn't needed any as it's revenue generating and profitable, but remains it's own legal entity. This wouldn't change until it's sold to another firm or attracts investment to grow.
SideChannel and CipherLoc merged in July 2022. We weren't even aware of CLOK back in 2019.
I can say that everyone in both companies supports what SideChannel is doing. There is a compliment between the two, but RealCISO is a pure product company with one product, RealCISO. SideChannel is a product and services company with Enclave as its first product.
Great questions here. I'll elaborate below:
RealCISO is a separate company that spun out of SideChannel back in 2019/2020 timeframe. It's IP, assets, sales, expenses, and team are within that DE C-Corp, RealCISO, Inc. It is a SaaS based risk assessment and analysis platform used to qualify any organization's alignment to cybersecurity standards and compliance requirements, like HIPAA, NIST, or PCI. It has it's own sales and marketing team. RealCISO sells directly to companies it's SaaS licenses as well as via channel distribution to private equity firms, consulting firms, and resellers who then resell or use with their own client base.
SideChannel is one of those resellers and users of the platform. We resell RealCISO licenses to our clients with a profit margin just like RealCISO's other customers. We do this exactly the same way we resell other cybersecurity tools our customers need that we ourselves didn't develop; products like ProofPoint for email security and SentinelOne or Crowdstrike for end point detection and response. Reselling other products is a standard approach to servicing clients in this industry and allows us to grow our top line revenue and recognize profit.
We also have our own microsegmentation product, Enclave, that we sell direct to customers and via channel distribution. We obviously have a higher profit margin on our own product than reselling a third party product. SideChannel does not resell anything that is competitive to Enclave, why would we?
Cybersecurity conferences are an amazing time to meet prospects and gain exposure. The people at SecureWorld are mostly CISOs and their direct reports. I've been attending this SW in Boston since 2015 when I moved to the area. We had many conversations with people about Enclave and with those who were looking to better their risk assessment programs who could use RealCISO. SideChannel will resell RealCISO to those people and use that new client to introduce Enclave and our other services. Much of this industry is centered around gaining clients trust, prove value, and then provide more offerings to make them more secure.
SideChannel's mission and goal is to lead the cyber program for clients and take on as much of the delivery for them as possible. Clients let us run their programs and that allows us to introduce our other products and services.
Happy New Year!
While it's been fun to read these posts, the hypotheticals posed, and even the attacks on me, I still see this as a social board to connect with those interested in SideChannel.
We're on a mission to make cybersecurity simple and accessible. Our focus is on startups, mid-market companies, and small enterprises. These are traditionally underserved markets for cybersecurity, privacy, and risk management initiatives.
We know that cybersecurity isn't trivial. There's an ever expanding attack surface with remote employees, cloud adoption, and innovation. The enemies at the gate are relentless and the increase in oversight by the SEC, DoD, Boards aren't letting up. Even customers are driving more companies to mature (or even start) their cybersecurity programs in order to win their business.
What you'll see in 2023 and beyond is SideChannel's growth to address these topics to our target market.
I hope to see everyone vote and participate on the proxy along with any attendance at the shareholder meeting in February.
Please bookmark our investor site for the latest updates - https://investors.sidechannel.com/
Sales teams are built with a range of experience and skillset. Teams have less top level and more lower level resources in place. This allows for scale and distribution of efforts.
The sales development representative (SDR) is a well known and established role as entry level. See https://www.coursera.org/articles/sales-development-representative
Brandon, specifically, is an amazing addition to the team. He's bright, outgoing, and driven. Everything you'd want in that SDR role. While his experience is limited in the professional space, his service in the Air Force and now as a military veteran should NOT be discounted. For those who've served, there is a maturity, dedication, and discipline to a mission and your team that is instilled in everyone who's put on the uniform.
We're building a world class team, with a diverse set of people from all walks of life. I couldn't be prouder to have SideChannel higher Brandon into this role with his experiences.
I think your outline is misguided. Your statement makes it look as though I was part of CLOK. I NEVER WAS. I sold SideChannel, a profitable company with a verified record, to CLOK. The outcome is a positive for all shareholders.
As far as my role, were releasing PR and SEC filings on the latest developments.
The 10k is next out. We've increased sales and builiding a sale team. Along with going to meet with investors to generate interest in SideChannel. What else would you have us do?
*yawn*
Our CTO lives there happily too. Thanks for the heads up on this crime statistic. Insightful.
From the reports, the conference went very well along with the presentations.
This Cybersecurity Company Has Found Success Renting CISOs to Startups
The venture has been a success so far. This past year SideChannel grew its revenue by 114 percent.
https://www.builtinboston.com/2022/10/04/sidechannel-growth-cybersecurity-ciso-hiring
A link to that video -