SideChannel Inc (QB) (SDCH) Quote

https://www.linkedin.com/posts/brianhaugli_one-of-the-most-mission-critical-aspects-activity-7206748147019067395-EeBI?utm_source=share&utm_medium=member_android
June 26. Brian is speaking again

Tough couple days of sell offs

Somebody obviously got tired of waiting. 1.2 million shares worth of tired.

Small potato's..... I cant wait until this actually gets moving.


#retirementplan

$7K moves $sdch stock 40% today.

#coiledspring

Note from Brian Haugli
CEO, SideChannel
SideChannel is thrilled to welcome David Menichello to the sales team as our VP of Partnerships. In this role, David will focus on expanding our growing channel and partner network, helping to bring SideChannel's vCISO services and Enclave to a larger market.

David joins us from Netrix, where he led the Security Advisory practice, including offensive security and vCISO programs. With 25 years of experience in Information Security and extensive global expertise in fintech, software, and services, David is poised to drive significant growth and innovation for SideChannel.
Note from Ryan Polk
CFO, SideChannel
We achieved our first quarter of positive cash flow from operations during our second quarter ended March 31, 2024. Our cash balance grew from $819,000 at December 31, 2023 to $851,000 at March 31, 2024.

Consistent revenue growth has been part of this story as have the significant reduction in operating expenses. Our revenue in the first six months of fiscal year 2024 was 16% higher than the first six months of fiscal year 2023. Our operating expenses were $835,000 lower through the first half of fiscal year 2024 compared to the same period in the prior year.

When we have had consecutive quarters with positive cash flow from operations, we will consider incremental investments in selling and marketing capabilities to grow our services business along with our Enclave install base.
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3rd Quarter Close - June 30, 2024

Financial Results Call - August 7, 2024 @ 4:30 PM ET

Agreed. Always interesting to read about developments.

After looking through the most recent Q and listening to the call, it dawned on me that SideCh is likely only a handful of new service side clients or a few software contracts away from reaching breakeven.

If I understand correctly, each service side client (vCiso) is good for ~ $200K (up to $300k) in revs (based on avg contract size).
I think the company lost $253K in the quarter. If that plays out over the next few quarters, they'll look to start putting cash in the bank. Add a govt software deal, which promises to be bigger than a service contract, and we’ll be in the black before long.

Brian/Ryan also expect gross margins to improve in the next couple of quarters. I think they need roughly $1.2M additional yearly revs to breakeven. IMO, that's both a modest increase in revenues, approximately 15% going forward, which is in line with the recent trend.

I'm positively thrilled with direction.

Seriously good stuff in the blog

https://sidechannel.com/news/

https://www.linkedin.com/feed/update/urn:li:activity:7196202413492498432?updateEntityUrn=urn%3Ali%3Afs_feedUpdate%3A%28V2%2Curn%3Ali%3Aactivity%3A7196202413492498432%29

Can you provide a link to this???

So, our CEO was one of the few invited to the white house to discuss cybersecurity for space exploration. Exciting development

There is Definitely no doubt that we have some serious investors here in SideChannel. When it starts to move, I expect it to make a pretty nice move. Everyone seems to be holding on tightly.

I know I am!!!!

#SideChannel

“We are poised for unprecedented growth and innovation, driven by our strengthened leadership team.”

A meaningful quote.

Mothers Day notes:
16% rev growth yoy
No debt
Approaching profitability
DoD putting a toe (w/Enclave) in SDCH waters
75% rev retention on the services side

Thanks!

I believe it was named something like Seneca Advisors. Can't be sure.

NT2 — that’s an interesting tidbit re the firm contacting you about potentially unloading your sidechannel stock. Maybe you could check your phone log and cross reference the number. We would be interested in which boutique outfit was making inquiries.

As we’ve discussed, there’s very little stock available below .18c imo.

Let’s say Sidechannel does $9 in yearly revs, remains debt free, becomes cash flow positive, expands margins, etc., then the stock will / should trade 3-5x revenues, putting it at .17-21 cents.

As an aside, can anyone share the NOLs situation with SDCH? It must be substantial (good thing).

The only call came from Richard Reiter, a shareholder who bought in during the second Paulson raise. According to an S-1 from April ‘21, Reiter owns about 350,000 shares, or about $20,000 worth of stock. Of course he may have bought (or sold) shares since 4/21.

Decided to go down the rabbit hole…
Other notables who took positions in the $10M April 2021 Paulson underwriting: Ken May 5.5M shares. While it’s a common name, how many *Ken Mays are there, taking down a cool $1M in a highly spec offering? His $1M investment is currently worth ~$300k

(*can’t absolutely confirm 100%, but a guy like May has many different accounts / brokers, so it wouldn’t be uncommon to use a boutique such as Paulson, who, like May, have a Memphis footprint. By the way, Ken, you might want to DCA here, provided you can locate 5.5M shares at these dirt cheap levels—it *may* take a while. Deep pockets. Might want to touch base with May, or overnight him a proposal.)

Cleto Escobedo III took down 300,000 shares in the 4/21 offering. For the uninitiated, that’s Cleto of Cleto & the Cleotones, Jimmy Kimmel’s band. Hopefully the famous saxophonist won’t be singing the blues for long.

Other well-heeled buyers include

Clayton A Struve

Oil Man, Lucius E Burch III / iv

Time to ✈️

https://www.linkedin.com/posts/realciso-io_were-excited-to-announce-that-weve-just-activity-7189747175101222912-GWHy?utm_source=share&utm_medium=member_ios

22. I just checked the report that they send us. Thank you to everyone how joined. Always love hearing questions on the calls!

I think we (or the webcast provider) makes the transcript available at some point within the next few weeks.

Does anyone know how many people were on the earnings call yesterday?

Nice earning report Brian. Keep up the good work. My hunch is the company plans to grow organically and become cash flow postive first. This makes sense since funding an acquistion at such a low share price would be prohibitively dilutive. I am probably not a big fan of the dilute to grow at all costs that some companies take which probably would not be rewarded in the current high interest rate environment.

With regards to the PEC. My hunch is that technology that enables zero trust including microsegmentation and good employee governance including a vCISO maybe more valuable in protecting companies data that the best encryption tech. I am not aware of any company being hacked YET because the perpetrators broke their encryption. It may be possible that a large tech company like Apple who prides themselves in offering "premium products and customer security" might be interested in such a product over the "free" options endorsed by the federal government.

We have the patents and own the tech, we should showcase it on the website to capture any interest possible. As nt2innovate said, the Federal government made decisions already on encryption that Cipherloc was not part of with the PEC.

Great question and a few answers. There's no 800-53 certification. That standard is primarily for accreditations within the Federal, but mostly DoD, environments. That can apply to a whole network or a single system. As a company, we aren't looking at that control standard as something reasonable to follow.

FedRAMP is a version of 800-53 that applies to software that is cloud based, or SaaS, that the government wants to use. We could be looking at getting Enclave through FedRAMP if the timing and cost make sense (it's a long and costly process). There's plenty of ways to sell into the government without having to go through FedRAMP.

Figure I'd hand deliver our Q2 10Q to this group. See you on the conference call. You can still submit questions to us via ir@sidechannel.com until 4pm ET today.

https://investors.sidechannel.com/sec-filings

I wonder if we are NIST 800-53 certified?
Or if we are FedRAMP certified?

Saw that as well. Wonder if it is just being used to showcase the full company tech potential or if they now see interest from clients for the product. I discussed with Brian in the past and he mentioned that feds had already agreed on post quantum encryption standards a few years ago via competition which Cipherloc never bothered to enter. I suppose those standards could always evolve with all the cyber attacks that we see now days.

Interestingly, some family office financial company (forgot the name) called me a couple of weeks ago and left message asking if I want to sell my Paulson shares. Not sure if that has any relation to the recent activity. I am still accumulating as well.

Good luck tomorrow Brian.

May 2, 2024 8:00 AM
SideChannel, Inc. Announces Financial Results & Corporate Update Conference Call
Second Quarter Conference Call & webcast on May 7, 2024 at 4:30 pm ET

WORCESTER, MA / ACCESSWIRE / May 2, 2024 / SideChannel, Inc. (OTCQB:SDCH) ("SideChannel"), a leading provider of cybersecurity services and technology to emerging and middle market companies, announced a change in its schedule for releasing the fiscal year 2024 second quarter financial results from May 8, 2024 to May 7, 2024. The call will be held at 4:30 pm Eastern Time.

SideChannel's second quarter ended March 31, 2024.

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 call will include management remarks and a live question and answer session. Questions may be submitted prior to the meeting using ir@sidechannel.com.

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.

SideChannel

146 Main Street, Suite 405
Worcester, MA 01608

Investor Contact

Ryan Polk
ir@sidechannel.com

Interesting.....on the website under products.....
Enclave
RealCISO
AND...
Polymorphic Encryption Core (PEC)

Talking about tictok and kapersky

And it's back. Not worried about any short term trends.

Good for you, vCiso. I think you'll be rewarded handsomely.

Not only would I not sell, I have been an active buyer.

I have been investing since 2000, finally seeing light at the end of the tunnel. There is no way I would sell now

Conference call/earnings call on Tuesday may 7. Changed from may 8. 430 est. Should be good

Some of these sellers have been in this name for a long time and with a cost basis over a buck, they just want out. They don't care that the stock trades 1x revenues. They don't care about increasing margins or new products / services. Fewer and fewer of these type of sellers remain.

22over....I totally agree. On the same note, I just can't comprehend why anyone would sell at this point.

Don't fret.

200,000 shares traded below .04cents.

$8K.

Chumpechange.

100,000 shares traded around .05cents.

You can move this stock 25% with about $10k

Yes, it's ridiculous.

Earning report imminent.

The Board and C-Suite are far too experienced to be satisfied with a $8M market cap company.

Things will change.

Wtf

New youtube is out. Cisolife!!

https://www.sec.gov/ix?doc=/Archives/edgar/data/1022505/000149315224014645/form8-k.htm

To some, this might seem like an insignificant filing—no big deal, right? But…

Under what circumstances might stock be preferred to cash?

Any guesses?

Well, it appears the Board considers company stock to be more valuable than cash, at least in the long run.

Thee Board understands.

Earnings / CC in about a month. Should be interesting.

8-K released ‘tis afternoon (4/15)

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On April 9, 2024, by unanimous vote of the Board of Directors (the “Board”) of SideChannel, Inc. (the “Company”) passed the following resolutions:

1. The Board has determined to eliminate two of the Committees of the Board of Directors including:

The Compensation Committee comprised of the following directors: Robert Brown, Deborah MacConnel, and Kevin Powers

The Nomination and Corporate Governance Committee comprised of the following directors: James Hansen, Brian Haugli, Deborah MacConnel, Kevin Powers, and Hugh Regan, Jr.

2. The Board has determined to eliminate all cash compensation paid to its directors.

3. The Board has determined to eliminate all stock compensation paid to its directors. No agreements have been entered for this arrangement but are forthcoming.

4. The Board has determined to implement an equity incentive plan for its directors.

5. The Board has determined to compensate Director Hugh Regan, Jr. at a rate of $7,500 per quarter for services provided as chair of the Audit Committee. No agreements have been entered for this arrangement, but are forthcoming.

As always Brian, we appreciate your transparency on this board.

Thoughts on the new monthly investor newsletter?

Didn't get it? Read the blog version and sign up at the link to receive this monthly as an email. It will include a note from myself and our CFO, Ryan along with upcoming events, industry news, and other info. We anticipate this sending out ever month around the end of each month.

https://sidechannel.com/investor-newsletter/sidechannel-sdch-march-2024-investor-newsletter/

Always good to see…

$SDCH new insider buying: 52500 shares. http://insiderbuyingselling.com/?t=SDCH

Stock recently moved ahead of the 200-day moving average. Locating stock — at these levels — is not easy.

https://www.cnn.com/2024/03/19/politics/cyberattacks-water-systems-us/index.html?soc_src=aolapp


Brian, are we bidding on these government contracts??

Nice to know our CEO is buying stock. But holy ship he owns a ton of stock.

I just bought 100000 shares last week.

Im a believer.

#SideChannel

So you hear it from me first ;) SideChannel CEO buys $3,675 in company stock

https://www.investing.com/news/stock-market-news/sidechannel-ceo-buys-3675-in-company-stock-93CH-3342756