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Somethin's definitely cookin'...
Being left in the dark is certainly annoying, but what I really care about is the substantial increase in trading volume and the favorable price breakout.
Cipherloc Provides Business Update Letter from CEO
Press Release | 03/09/2021
AUSTIN, TX / ACCESSWIRE / March 9, 2021 / Cipherloc Corporation (OTCQB:CLOK) ("CipherLoc"), a developer of advanced encryption technology, today provided a business update letter from Chief Executive Officer David Chasteen.
To my fellow shareholders,
The first quarter of 2021 is an important turning point for Cipherloc as we continue to move forward in our top priority - transitioning our commercial ready software into revenue.
We start 2021 an extremely lean, focused and mission-oriented organization. We look forward to excellent opportunities in the year ahead. Today I want to share a number of updates with you as we continue to move our business forward.
First, we have drastically reduced our operating expenses over the past year. The global COVID pandemic hit just as we were preparing to launch a proactive engineering, marketing and sales effort last spring. We moved quickly to halt those plans, then began a rapid cost reduction program to conserve capital and lean out the business. Those efforts have been very successful, enabling us to operate through the pandemic and continue advancing key development programs.
We also settled ongoing litigation issues over the past few months, ultimately returning more than 14.5 million shares to the company and wrapping up legal expenses. The shares returned represented approximately one-third of our total shares outstanding.
But our focus was not strictly on conserving capital or reclaiming shares. We have made consistent forward progress over the past year, with multiple partners and distributors now ready to integrate and sell our solutions.
Every stage of testing done over the past year, whether by customers or third parties, has shown that our software not only works, it works extremely well for both present and future encryption needs. Where we have seen opportunities for further performance improvement, we have done so as part of our relentless focus on giving customers the best performance possible using Cipherloc's products.
The market for quantum-resistant market solutions is growing quickly and, according to analysts, is expected to hit $9.5B by 2029. And quantum is no longer a concept - it is reality. Google arguably achieved "quantum supremacy" at the end of 2019, and quantum computers are becoming increasingly capable of breaking existing encryption.
And that threat is real.
The SolarWinds breach makes it clear that private companies need to worry about threats from foreign nation state actors, who are making significant investments in quantum and encryption.
We believe that post-quantum encryption will be one of the largest and most critical technology migrations since Y2K. And like Y2K, organizations that plan for transition early in the product lifecycle will have an easier, lower cost transition process. Organizations that wait until the last minute will spend a lot more money fighting for scarce resources.
As far as we know, today Cipherloc is the only company currently deploying the AES algorithm in a quantum-resistant way with a FIPS-certified product. We are particularly well-suited to solve the problem of quantum decryption with a solution that is agile and algorithm-independent.
We are also future proof, helping to de-risk customers who choose Cipherloc for their encryption needs. When the NIST PQE standard algorithm is selected in 2022, we will be ready to deploy it to our customers, making Cipherloc a true quantum-ready solution.
We look forward to an exciting and productive 2021 as we continue to advance our efforts with partners, distributors and customers ready to move into the post-quantum world.
David Chasteen
Chief Executive Officer
Comment was about whining, not poker :)
Like poker, this game's not for whiners.
When I last spoke with Matt, I understood him to say that partnerships previously disclosed are still active, and there are additional ones not yet disclosed. That apparently includes at least DataPath and Johnson Controls (a potentially massive market). Mantech wasn't mentioned, but he didn't refer to any past partnerships being terminated or inactive.
For what it's worth.
Personally, I think our burn rate is so low that our various partnerships should bear fruit before further dilution becomes necessary.
I think the only good game plan available to us is the one in play - going to market exclusively through our partnerships.
Once the first revenue arrives, I expect it to build quickly enough.
Simple cost/benefit calc. Litigation is expensive in several ways.
I had a pleasant conversation with Matt Kreps.
No new facts to report, but to me he sounded more comfortable and confident than in some previous calls. The main impression I got was that partnerships disclosed in the past are still actively developing, and that additional relationships exist that will be coming to light.
Like I said, there's still not much to talk about. But with our seemingly unique position regarding quantum-ready data security, and with the explosive growth of quantum computing that's just getting started, I fully expect our little company to finally get its well-deserved day in the sun.
No, it just means there's nothing much left to say until we have revenue.
Looks to me more like Market Making activity necessary to deal with multiple large buy orders. Which might make sense if the purpose of the new filings is to allow Besser to acquire as many additional personal shares as possible below his warrant exercise price. Pure speculation, of course.
I guess this isn't so personal for me, though it certainly has been painful. I was after the big payoff and I knew it came with big risk. Part of that risk was that MDLG might be a worse BS'er than I thought. Turned out to be much worse.
$400k is actually a cheap price for completely closing the door on the past. And I don't know that the cash he's getting will even pay his legal bills.
Anyway, I'm just not a believer in revenge.
So I'm feeling fortunate and thinking the future is bright.
Whether MDLG could be convicted of a crime, I don't really know. I do know he was a promoter first and a CEO second or third. On the one hand, I bought too much stock based on info from him that turned out to be untrue and I'm deep in the red. On the other hand, my investment looks to have a very bright future, and the people who are making that happen would never have heard of Cipherloc without MDLG. All in all, I think this story will finally reach a happy ending for most of us.
So, with that in mind, I actually wish MDLG well. And I certainly wish Dr Carlson well along with all the lesser players in this epic drama.
According to the settlement, MDLG retains about 1.3 million common shares.
Related:
LAKE SUCCESS, N.Y., July 24, 2020 /PRNewswire/ -- Arnouse Digital Devices Corp. (ADDC), a leader in small form-factor pluggable computing, announces that it has been awarded its first five-year, sole-source indefinite-delivery, indefinite-quantity (IDIQ) contract valued at $13.5 million, with an initial task order of $2.1 million, by the U.S. Army. This Firm Fixed Price (FFP) contract covers an array of products from ADDC's BioDigitalPC ecosystem.
"We have had a long-standing relationship with the U.S. Army and the Department of Defense (DOD)," said Michael Arnouse, Chairman and CEO of ADDC. "This contract award is a testament to the quality and utility of ADDC's product line that is proudly Made in the USA. We are excited about the expanded adoption of ADDC's compute platform by the DOD."
About Arnouse Digital Devices Corp.
Arnouse Digital Devices Corporation (ADDC) is the inventor and manufacturer of the X86 credit card-sized computer - part of a revolutionary and environmentally friendly compute platform. Its interchangeability gives users an unprecedented level of flexibility, compute power, small size, ultra-high security, and low power-usage. Currently, ADDC operates from three locations on the east and west coasts. ADDC has been granted 24 utility patents, with several pending in the areas of pluggable computing and the surrounding ecosystem. ADDC is fully committed to provide the world's best computing solutions for traditional and harsh environments that enable people, governments and businesses to excel in productivity with minimal harmful e-waste and a smaller carbon footprint. All ADDC products are proudly Made in the USA. More information can be found at www.addc.net.
IT'S ALIVE !!!
It's silly to assert that only news moves price. Price also moves with company awareness, market trend, sector trend, economic context, tech-specific interest, investor circumstances, etc., etc.
Price moves when buyers and sellers act. Period.
Ask yourself why CEO's of NASDAQ listed companies would want to be on our BOD. They are not putting their reputations on the line to get at our bank account!
Anticipated future value determines stock prices. In our case, just broader awareness of the makeup of our Board of Directors alone could drive up the price.
That is NOT how markets work. No publicly traded stock is ever valued primarily by the company's bank balance.
Illegitimate statement is not a "legitimate question".
Ridiculous! The whole stock market and especially tech stocks have rebounded big time lately, but when Cipherloc rebounds with them, you claim it can't be legit?
Cipherloc/QuantaNova is not a secret company. We want potential customers and potential investors to be aware of our existence and our technology. That does not involve improper disclosure of anything by executives or board members.
Awareness drives demand. Demand drives price. It's called a market.
In the real world, people become aware of potential investments in numerous legitimate ways - not just through SEC filings or PR's.
In what imaginary world is price change proof of "stock manipulation??
Implication that both companies do not benefit or that somehow this arrangement would be without the knowledge and blessing of either company is ABSURD.
Complete nonsense. Cipherloc employees have likely had to work remotely for months now; which would make leased office space useless overhead. Apparently Wilkinson has wisely arranged for Sonim to offer Cipherloc a business address and whatever minimal fixed office space we might currently require in order to reduce our burn rate as much as possible. Good job Tom.
I assumed it was the least-cost option.
You might look at the information in the last quarterly regarding current leases.
Have been aware for a while that the Virginia and Scottsdale locations are closed and the only active location is in Buda Texas. I don't recall where I read it, but it was probably in a recent filing.
The priorities have to be:
1. Survive, which means reduce burn rate.
2. Focus remaining resources. The essential market has always been large enterprises, especially governments. The certification has been determined to be key, which points to government customers, IMO.
Complete nonsense.
5G refers to cellular and is why enterprise data will grow exponentially for a while.
The tech in question is already developed and is being certification tested.
The target market has to be enterprise customers, especially government, and the larger the better. This is NOT about a new consumer brand launch. FIPS cert would be only marginally important for that.
If the reduced headcount doesn't make sense to you, re-read the PR. This virus panic has reset the timelines for everything.
PR's aren't free. I don't expect unnecessary ones.
Until we get this additional certification, we have no idea what this company's future looks like. We just have to wait for it.
We obviously don't yet have the certification we are working toward - the one described in the PR's.
Read the press releases:
"... we believe all traffic which is sent over a 5G radio network must be encrypted, and we want to empower all customers with this increased level of security..."
"By independently verifying that Cipherloc's FIPS 140-2 certified cryptologic module is certified for mobile platforms, we will have the opportunity to use Cipherloc's advanced polymorphic encryption technology to secure even more of the world we live in."
and, with the "lockdown":
“These changes will include a reduction in headcount to focus on engineering and development roles needed to guide our technology through the current phase of critical testing in order to be market ready..."
But the BOD says it is our "full time job"! At least for now. They spelled it out in the restructuring PR!
Most, if not all, of our market is ON HOLD for a while.
Our limited resources have to get us through this time.
What makes that certification the top priority? - more important than sales staff? - more important than having a CEO?
The only answer that makes sense to me is one or more major enterprise customers waiting for us to obtain that certification.