Exhibit
99.1
SideChannel
Reports Positive Quarterly Cash Flow from Operations
Trailing
twelve month revenue exceeds $7 million; Revenue up 15.8% year-to-date
WORCESTER,
MA / ACCESSWIRE / May 7, 2024 / SideChannel, Inc. (OTCQB:SDCH) (“SideChannel”), a leading provider of cybersecurity
services and technology to emerging and middle market companies, today announced its financial results for the three and six months ended
March 31, 2024.
Second
Quarter Fiscal Year 2024 Highlights
| |
● |
Second
quarter revenue of $1.9 million; 19.2% greater than the second quarter of Fiscal Year (“FY”) 2023 and11.0% greater than
the first quarter of FY 2024. |
| |
● |
Year-to-date
revenue of $3.7 million; 15.8% greater than the $3.2 million reported for first six months of FY 2023. |
| |
● |
Second
quarter gross margin of 45.0%; gross margin was 45.6% for the second quarter of FY 2023. |
| |
● |
Second
quarter operating expenses decreased $467,000 or 29.3% compared to the second quarter of FY 2023. |
| |
● |
Second
quarter net loss of $253,000 or $0.00 per share. |
| |
● |
Trailing
twelve month revenue reaches $7.1 million for the period ended March 31, 2024. |
| |
● |
Revenue
retention of 74.6% for the trailing twelve months ended March 31, 2024. |
| |
● |
Cash
increased to $851,000 compared to $819,000 as of December 31, 2023; cash provided by operations during the second quarter was $32,000. |
Management
Comments
Brian
Haugli, President and Chief Executive Officer of SideChannel stated “I am proud of our team for delivering an increase in cash
this quarter. We continue to make progress on achieving quarterly profitability and remain committed to achieving that goal. Our sales
channels are expanding with new referral partners and complimentary third-party service providers. We are growing our Enclave pipeline
while we process the feedback and insights received from our beta customers. Our novel approach to microsegmentation is proving to be
a significantly cost-effective alternative to the legacy IT methods of using hardware.”
SideChannel
will host a conference call on May 7, 2024, at 4:30 P.M. Eastern Time to discuss its first quarter results and provide an update on the
Company’s initiatives.
SECOND
QUARTER CALL INFORMATION
| Date:
|
|
Tuesday,
May 7, 2024 at 4:30 P.M. Eastern Standard Time. |
| |
|
|
| Dial
In: |
|
Toll
Free: 888-506-0062 |
| |
|
International:
973-528-0011 |
| |
|
Participant
Access Code: 789473 |
A
webcast of the call will also be available: https://www.webcaster4.com/Webcast/Page/2071/49678
Participants
may register in advance for the call using the webcast link.
The
conference call will include management remarks and a live question and answer session. The conference call host will provide participants
with instructions for joining the queue to asks questions at the conclusion of management remarks. Questions may also be submitted prior
to the meeting using ir@sidechannel.com.
Second
Quarter 2024 Review
The
second quarter Form 10-Q is accessible in its entirety at https://investors.sidechannel.com/sec-filings.
In
thousands, except shares and per share data | |
Three
Months Ended | |
| | |
| | |
Change | | |
| | |
Change | |
| | |
| 3/31/2024 | | |
| 3/31/2023 | | |
| $ | | |
| % | | |
| 12/31/2023 | | |
| $ | | |
| % | |
| Revenue | |
$ | 1,927 | | |
$ | 1.617 | | |
$ | 310 | | |
| 19.2 | % | |
$ | 1,736 | | |
$ | 191 | | |
| 11.0 | % |
| Gross
profit | |
| 868 | | |
| 737 | | |
| 131 | | |
| 17.8 | % | |
| 845 | | |
| 23 | | |
| 2.7 | % |
| Gross
margin | |
| 45.0 | % | |
| 45.6 | % | |
| | | |
| | | |
| 48.7 | % | |
| | | |
| | |
| Operating
expenses | |
| 1,128 | | |
| 1,595 | | |
| (467 | ) | |
| -29.3 | % | |
| 1,104 | | |
| 24 | | |
| 2.2 | % |
| Operating
loss | |
| (260 | ) | |
| (858 | ) | |
| 598 | | |
| | | |
| (259 | ) | |
| (1 | ) | |
| | |
| Net
loss | |
| (253 | ) | |
| (856 | ) | |
| 603 | | |
| | | |
| (246 | ) | |
| (7 | ) | |
| | |
| Net
loss per common share | |
$ | (0.00 | ) | |
$ | (0.01 | ) | |
$ | 0.01 | | |
| | | |
$ | (0.00 | ) | |
$ | 0.00 | | |
| | |
| Weighted
average common shares outstanding – basic and diluted | |
| 222,773,052 | | |
| 148,928,663 | | |
| | | |
| | | |
| 214,578,923 | | |
| | | |
| | |
| |
|
As
of
March
31,
2024
|
|
|
As
of
September
30, 2023 |
|
| Cash |
|
$ |
851 |
|
|
$ |
1,053 |
|
| Current
Assets |
|
|
2,387 |
|
|
|
2,448 |
|
| Current
Liabilities |
|
|
1,062 |
|
|
|
954 |
|
About
SideChannel
SideChannel
helps emerging and mid-market companies protect their assets. Founded in 2019, the Company delivers comprehensive cybersecurity plans
through a series of actions branded SideChannel Complete.
SideChannel
deploys a combination of skilled and experienced talent, and technological tools to offer layered defense strategies supported by battle-tested
processes. SideChannel also offers Enclave; a network infrastructure platform that eases the journey from zero to zero-trust. Learn more
at sidechannel.com.
Investors
and shareholders are encouraged to receive to press releases and industry updates by subscribing to the investor email newsletter
and following SideChannel on X and LinkedIn.
You
may contact us at:
SideChannel
146
Main Street, Suite 405
Worcester,
MA 01608
Investor
Contact
Ryan
Polk
ir@sidechannel.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”, “potential”, “could”, “should”
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. Examples of forward-looking statements include, among others,
statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance.
Because
forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause SDCH’s
actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. These
risk factors include, but are not limited to: 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; our dependence on current
management and our ability to attract and retain qualified employees; competition for our products; our ability to develop and successfully
introduce 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; the risk associated with the concentration of our cash in
one financial institution at levels above the amount protected by FDIC insurance; 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 that could cause actual results to differ materially from those
projected or represented in the forward-looking statements. 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.
