SideChannel Inc (SDCH)

[BrianHaugli]

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.

This Federal Information Processing Standard (140-2) specifies the security requirements that will be satisfied by a cryptographic module, providing four increasing, qualitative levels intended to cover a wide range of potential applications and environments. The areas covered, related to the secure design and implementation of a cryptographic module, include specification; ports and interfaces; roles, services, and authentication; finite state model; physical security; operational environment; cryptographic key management; electromagnetic interference/electromagnetic compatibility (EMI/EMC); self-tests; design assurance; and mitigation of other attacks.

Enclave is FIPS 140-2 certified and it's part of our company strategy to bring to market as the solution for microsegmentation and a pathway to zero trust. We have no intention of selling it off. The PEC is an algorithm for encryption. That, like the NIST selected algorithms, can be made available in a software product like Enclave.