A RS on a company that is failing and share price is falling AND needs to maintain it's share price to stay on a board is a bad sign. But based on how SideChannel is growing, revenue generating, no debt, and close to profitability, only on the OTC now, and not in financial hardship, a RS for them doesn't seem negative. Looking at the NASDAQ and NYSE requirements, a company needs minimum $4.00 share price to be listed along with float and a few other requirements.
Watching a few other cyber companies like $CISO and $HWNI, they're in similar yet different positions. CISO is on the NASDAQ and share price is falling due to lack of revenue and mounting debt. They need to do a RS to stay on the NASDAQ or move back to OTC. HWNI is on the OTC and looking to move up to a bigger board, although they have significant debt.
So both HWNI and SDCH are looking to uplist and probably won't have a share price increase organically to the $4 price in order to uplist. I'd view a RS and uplist to a better board as a positive as it'd allow more investors to trade the stock and that would benefit everyone.
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