SideChannel Inc (SDCH)

[BrianHaugli]

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.