SideChannel, Inc. (OTCMKTS:SDCH) Announces Fiscal Year 2024 Financial Results

On December 5, 2024, SideChannel, Inc., a major provider of cybersecurity services and technology to emerging and middle market companies, released its financial outcomes for the fiscal year ending September 30, 2024. The company reported revenue of $7.4 million for the fiscal year, marking a 12.8% increase compared to the previous year’s revenue of $6.6 million.

While the gross margin for the year 2024 stood at 47.8%, which was 290 basis points lower than the 50.7% reported in 2023, operating expenses (excluding intangible asset impairment and business combination related costs) decreased by $1.2 million, or 22.0%, compared to the previous fiscal year. The net loss for 2024 amounted to $785 thousand, showing substantial improvement from the $7.0 million net loss reported in 2023. Revenue retention for the fiscal year 2024 was 69.2%, slightly lower than the 71.0% from the previous year.

Moreover, SideChannel saw its cash, cash equivalents, and short-term investments rise by $242 thousand from the previous year, reaching an ending balance of $1.3 million as of September 30, 2024.

Brian Haugli, President and Chief Executive Officer of SideChannel, expressed satisfaction with the financial results, highlighting the achievement of establishing sustainable cash provided by operations and outlining plans for future growth. Haugli stated, “We are deploying our cash provided by operations to build a sales team for the purpose of delivering multiple quarters of Enclave revenue growth.”

Additionally, the company reported an increasing number of new service client leads with a strong deal flow through the sales funnel. Haugli mentioned the expansion of the service delivery team’s capacity in the second half of fiscal year 2024, aimed at enhancing results for 2025.

SideChannel is set to host a financial results conference call on December 5, 2024, at 4:30 P.M. Eastern Time to discuss its performance in fiscal year 2024 and provide an update on ongoing initiatives. Interested participants can join the call using the provided dial-in numbers or access the webcast link available on the company’s website.

Investors and shareholders are encouraged to follow SideChannel for future updates. The company’s annual report for the year ended September 30, 2024, will be filed promptly on Form 10-K with the Securities and Exchange Commission once the audit is completed.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Cipherloc’s 8K filing here.

Cipherloc Company Profile

SideChannel, Inc engages in the provision of cybersecurity services and technology to middle market companies. Its services include Virtual Chief Information Security Officer, Virtual Chief Privacy Officer, Risk Assessments, Cybersecurity Compliance, Risk Management, Training and Awareness, and Team Building and Staffing.