BETHESDA, Md., March 15, 2021 (GLOBE NEWSWIRE) -- Castellum, Inc. (ONOV: OTC) today provides the following Corporate letter updating its shareholders:
Dear Fellow Shareholders,
As we approach spring and the winding down of the Covid-19 health crisis, we at Castellum are pleased to share with you this update. Much has been accomplished already this year and we have more to come.
We have finished our second full annual audit by RSM. Our 2020 revenue came in at $13.3 million, up over 20% versus comparable 2019 numbers. Our business development at our subsidiary Corvus has significantly ramped-up, as Jim Enicks and his team have built over a $300 million 5-year qualified pipeline of opportunities for future growth. While we will not close all of that business, we should get our fair share – and a reasonable share will lead to continued growth in Corvus’s business. We anticipate generating at least $15.3 million in revenue at Corvus this year, and over $20 million in 2022. While net income on a GAAP basis is still negative as we amortize certain intangible assets, operating profit excluding non-cash stock compensation was a solid $1.3 million in 2020. We expect that number to increase in 2021. Completing a second year of audits positions, Castellum could potential up-list our stock to the NYSE MKT or other suitable exchange once we exceed $25 million in revenue.
On February 2, 2021, Castellum welcomed Glen Ives, formerly the President and CEO of Sabre Systems, as the Chief Growth Officer and CEO of Castellum’s newly formed Navy and Marine Corp Division. Glen grew his previous company from $40 million to $80 million during his tenure and brings with him acquisition targets and key customer relationships in the Navy/Marine Corps as well as other non-DoD entities. Investing in human capital that can grow our business at all levels will remain a key element to our continued success.
Also, in February 2021, we restructured and extended our promissory note with Laurie Buckhout, the former owner of Corvus, pushing the maturity out to 2024 and starting to amortize the principal of that loan. Combined with our growing cash levels, our balance sheet continues to strengthen. Net working capital increased from $1.6 million at year-end 2019 to $2.9 million at year-end 2020.
On January 1, 2021, Castellum acquired MFSI Government Group in an all-stock transaction. MFSI through its CEO, George Tronsrue, brings to Castellum past performance in software engineering and strong customer and prime contractor relationships. The past performance has enabled our Corvus subsidiary to pursue multiple new opportunities with existing and new customers. MFSI adds approximately $2 million in profitable revenue to Castellum.
So, as you can see, we have already had some significant wins this year. Going forward, we have several additional goals for 2021. As mentioned, we expect to see strong 15%+ organic growth at Corvus this year. Glen Ives is expected to start construction of a Navy division. Also, MFSI will serve as a catalyst for additional growth, and we are working on our next acquisition. We have financing sources already in position, both senior lenders and mezzanine capital. There are over a dozen potential acquisitions under review with a couple that we especially like. We hope to sign an LOI for our next deal within the next 90 days. The roadmap, therefore, is to do our next acquisition and then look at up-listing.
Thank you to all of our employees, shareholders, and partners for a terrific 2020. 2021 and the future promise to be even brighter.
About Castellum, Inc. Castellum, Inc. (OTC: ONOV) is a technology services and solutions company executing strategic acquisitions in Cyber Security, Information Technology, Information Warfare, Electronic Warfare, Systems Engineering, Software Engineering and Software Development. The Company recently acquired MFSI after purchasing Corvus Consulting in 2019. The Company continues in discussions with multiple acquisition candidates and, also, has numerous efforts ongoing as a potential prime contractor for multiple customers.
Forward-Looking Statements:
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain, based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters disclosed at www.otcmarkets.com. These risks and uncertainties could cause the company's actual results to differ materially from those indicated in the forward-looking statements.
Mark Fuller, CEO
info@castellumus.com
301-961-4895
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9f0b3bcc-8994-4f23-8503-e20b61196308