WORCESTER, Mass., Dec. 20, 2022 (GLOBE NEWSWIRE) -- SideChannel (OTCQB:SDCH), a provider of cybersecurity services and technology for emerging and middle market companies, today announced results for the fiscal year ended September 30, 2022. “Our 2022 performance demonstrates our continued strength and position in the market across both product and service delivery,” said Brian Haugli, Chief Executive Officer. “Our investments in sales and marketing, coupled with our expanding cybersecurity, privacy, and risk management capabilities, has proven to be effective at acquiring new clients and retaining existing relationships.”
2022 Fiscal Year and Key Metric Highlights:
- Revenue increases 71% over 2021 to $4.8 million
- vCISO revenue increased by 93% over 2021 to $3.1 million
- Recurring vCISO revenue increased by 562%
- Recurring software & services revenue increased by 367%
Ryan Polk, SideChannel’s Chief Financial Officer added, “To further substantiate the value that we are providing to our clients, our revenue retention was 76% and our gross margins improved from 45% to 48%. The Company ended the fiscal year with a cash balance of $3.0 million on September 30, 2022. We expect to continue to effectively use our cash to fund further growth and are excited about the future.”
SideChannel combined with Cipherloc in July, 2022 (“Business Combination”). The Company determined that SideChannel was the acquiring entity for accounting purposes. As a result, the historical financial statements of SideChannel are the historical financial statements of the combined company for Securities and Exchange Commission (SEC) financial reporting purposes. The Business Combination accounting resulted in one-time, non-cash charges of $11.9 million comprised of acquisition costs of $6.2 million and impairment of goodwill of $5.7 million.
Further information and analysis of the Company’s annual results, including Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's Annual Report on Form 10-K for 2022 fiscal year, can be accessed on the SEC's EDGAR system or in the Investors section of our website at sidechannel.com.
| SELECTED FINANCIAL DATA | |||||||
| (In thousands except per share data) | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA | |||||||
| For the Year Ended | |||||||
| September 30, | |||||||
| 2022 | 2021 | ||||||
| Revenues | $ | 4,789 | $ | 2,799 | |||
| Gross profit | 2,321 | 1,262 | |||||
| Recurring operating expenses | 2,027 | 752 | |||||
| Acquisition costs | 6,186 | — | |||||
| Goodwill impairment | 5,702 | — | |||||
| Operating income (loss) | (11,594 | ) | 510 | ||||
| Net income (loss) before income tax expense | (11,581 | ) | 513 | ||||
| Net income (loss) after income tax expense | (11,776 | ) | 513 | ||||
| Net income (loss) per common share | (0.14 | ) | 0.01 | ||||
| Weighted-average shares | 81,997,953 | 59,900,000 | |||||
| CONDENSED CONSOLIDATED BALANCE SHEET DATA | |||||||
| As of September 30, 2022 | As of September 30, 2021 | ||||||
| Cash | $ | 3,030 | $ | 348 | |||
| Accounts receivable, net | 612 | 178 | |||||
| Total current assets | 4,142 | 832 | |||||
| Goodwill | 1,356 | — | |||||
| Intangibles | 4,940 | — | |||||
| Total assets | 10,768 | 833 | |||||
| Accounts payable and accrued liabilities | 786 | 212 | |||||
| Total current liabilities | 1,161 | 406 | |||||
| Non-current liabilities | 211 | — | |||||
| Total Liabilities | 1,372 | 406 | |||||
| Total stockholders’ equity | 9,396 | 427 | |||||
About SideChannel
SideChannel is committed to creating top-tier cybersecurity programs for mid-market companies to help them protect their assets. SideChannel employs what it believes to be skilled and experienced talent to harden these companies' defenses against cybercrime, in its many forms. SideChannel's team of C-suite level information security officers possess a combined experience of over 400 years in the industry. To date, SideChannel has created more than 50 multi-layered cybersecurity programs for its clients. Learn more at sidechannel.com.
Interested investors and shareholders are encouraged to sign up for press releases and industry updates by registering for Email Alerts at https://investors.sidechannel.com/alerts and by following SideChannel on Twitter and LinkedIn.
SideChannel
146 Main Street
Suite 405
Worcester, MA 01608
Investor Contact
Scott McGowan
InvestorBrandNetwork (IBN)
Phone: 310.299.1717
ir@sidechannel.com
Media Contact
Jamie Szwiec
STiR-communications
954-647-0052
jamie@stir-communications.com
Forward-Looking Statements
This press release may contain forward-looking statements, including information about management's view of SideChannel's future expectations, plans and prospects, subject to the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "believes", "hopes", "expects", "intends", "plans", "anticipates", or "may", and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act and otherwise. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of SideChannel to be materially different than those expressed or implied in such statements. These risk factors include, but are not limited to, our ability to integrate the operations of the acquired company into our company; that we have incurred net losses since inception, our need for additional funding, the substantial doubt about our ability to continue as a going concern, and the terms of any future funding we raise; that COVID-19 has materially adversely affected our operations and may continue to have a material adverse impact on our operating results in the future; our dependence on current management and our ability to attract and retain qualified employees; competition for our products; our ability to develop new products, improve current products and innovate; unpredictability in our operating results; our ability to retain existing licensees and add new licensees; our ability to manage our growth; our ability to protect our intellectual property (IP), enforce our IP rights and defend against claims that we infringed on the IP of others; and other risk factors included from time to time in documents we file with the Securities and Exchange Commission, including, but not limited to, our Forms 10-K, 10-Q and 8-K. These reports are available at www.sec.gov. Other unknown or unpredictable factors also could have material adverse effects on SideChannel's future results. Further, factors that we do not presently deem material as of the date of this release may become material in the future. The forward-looking statements included in this press release are made only as of the date hereof. SideChannel cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, SideChannel undertakes no obligation to update these forward-looking statements after the date of this release, except as required by law, nor any obligation to update or correct information prepared by third parties.
Corporate Communications:
InvestorBrandNetwork (IBN)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com
