WORCESTER, MA / ACCESSWIRE / August 15, 2022 / SideChannel, Inc. (OTCQB:SDCH) ('SideChannel'), a provider of cybersecurity services and technology to middle market companies, today announced its financial results for the quarter ended June 30, 2022 and filed its Form 10-Q. The Company will host a conference call and webcast at 5:00 pm Eastern Daylight Time.
Monday, August 15, 2022 at 5:00 pm EDT
Conference ID: SCF222
Webcast: https://sidechannel.com/ then 'About', 'Investors', 'Events & Presentations'
SideChannel also announced today that since the acquisition, it has signed 8 contracts with clients with an estimated combined total annual revenue value of $850,000.00.
'We appreciate the trust our clients place in us to help them secure their assets,' said Brian Haugli, Chief Executive Officer. 'We are also thrilled to add the Enclave product and its powerful capabilities to SideChannel's diverse vCISO delivery platform as we continue to expand our capabilities in the middle market. We continue investing in our delivery team and tools to drive continued growth.'
SideChannel's financial report filed today for the three- and nine-month periods ending June 30, 2022 contains only the legacy Cipherloc Corporation results. The financial flings do not include the income statement and balance sheet of the privately held SideChannel, Inc., which was acquired by Cipherloc on July 1, 2022. Following the acquisition, the combined entity adopted the name of SideChannel, Inc. and changed its stock ticker symbol to SDCH. The Company reported a cash balance of $3.6 million as of June 30, 2022 and a net loss of $2.8 million for the nine months ended June 30, 2022 compared to a net loss of $2.3 million for the nine months ending June 30, 2021. The fiscal year 2022 operating expenses include $479,000 of acquisition related costs. Cash used in operations through June of fiscal year 2022 decreased to $2.2 million from $2.6 million for the same nine month period in fiscal year 2021. The Company also noted that it anticipates the SideChannel acquisition will mitigate operating losses going forward.
The Company's fiscal fourth quarter ending September 30, 2022 will be the first reporting period to include the results from the acquisition of SideChannel announced on July 5, 2022. Previously, SideChannel announced annual revenue of $2.6 million for the fiscal year ended September 30, 2021, a 114% increase from $1.2 million in revenue the prior fiscal year. The Company expects to disclose pro forma consolidated results through a Form 8K-A by September 15, 2022. The pro forma period will include the full fiscal year ending September 30, 2021 and the nine months ended June 30, 2022.
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 the field's most 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.
This press release may contain forward-looking statements, including information about management's view of SideChannel's future expectations, plans and prospects, including within 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, its divisions and concepts to be materially different than those expressed or implied in such statements. These risk factors include, but are not limited to, our ability to satisfy the closing conditions of the acquisition, our ability to integrate the operations of SideChannel 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 SideChannel files with the Securities and Exchange Commission, including, but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. These reports are available at www.sec.gov. Other unknown or unpredictable factors also could have material adverse effects on SideChannel's future results. 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 statements after the date of this release, except as required by law, and takes no obligation to update or correct information prepared by third parties that are not paid for by SideChannel. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
Darrow Associates Investor Relations
SOURCE: SideChannel, Inc.
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